Digitalisation as a driver of industrial renewal – perception and qualitative evidence from the USA

Abstract

Firms that are capable, undertake strategic renewal to ensure and reinforce a sustainable competitive advantage. Digitalisation is a major technological change; a strategic renewal that can deliver such an advantage. In this article, we adopt the theories of path dependence and strategic renewal to analyse the implementation and utilisation of digitalisation in the USA manufacturing industry based on qualitative interview data collected among policymakers, researchers and manufacturers. The analysis identified and described five US strengths (i.e. technology leaders, innovative tolerant culture, technology agnostic, market driven, speed) contributing industrial renewal through digitalisation, and five US weaknesses (i.e. technology driven, disorganised convergence, not part of the cultural identity, competitive not collaborative, short term perspective) inhibiting it. The strengths and weaknesses were further considered as they pertain to individuals, businesses and national policy. The study highlighted the systemic nature of the identified strengths and weaknesses, and suggested that in addition to policymakers, also research community and businesses should further strengthen what is already strong in the innovation system to indirectly mitigate the weaknesses.