A technological innovation system framework to formulate niche introduction strategies for companies prior to large-scale diffusion

Abstract

Pioneering companies of radically new technological innovations often suffer from a slow uptake of their innovations and struggle to find the right introduction strategy. This paper aims to conceptualize a Technological Innovation System framework that can be applied to formulate and study niche introduction strategies from a company perspective. It combines insights from two literatures: the socio-technical systems literature and the innovation & strategic management literature. This results in a framework consisting of seven Technological Innovation System building blocks and seven influencing conditions that can influence the building blocks. The Technological Innovation System building blocks in the framework are: product performance and quality; product price; production system; complementary products and services; network formation and coordination; customers; and innovation-specific institutions. The influencing conditions in the framework are: knowledge and awareness of technology; knowledge and awareness of application and market; natural, human and financial resources; competition; macro-economic and strategic aspects; socio-cultural aspects; and accidents and events. The framework can help explore the context around an innovation during the early stages of Technological Innovation System formation and specify the scope, timing and type of niche introduction strategies that fit this context. This is illustrated with two cases: dual-clutch transmission technology and photovoltaic cells.