Innovation systems for technology diffusion: An analytical framework and two case studies

Abstract

Existing theories on the diffusion of innovations fail to sufficiently account for contextual factors such as institutions, infrastructure, and supply-side dynamics. This paper presents a novel framework to analyse technology diffusion from a sociotechnical systems perspective, intended as an analytical tool to identify and assess drivers and barriers to diffusion that could be addressed through policy or business strategy. This framework, referred to as the diffusion innovation system (DIS) approach, is positioned within the innovation systems literature. The framework is applied to two empirical cases of renewable energy technology diffusion in Sweden: solar photovoltaics (PV) and wind power. The cases illustrate how key factors related to institutions, infrastructure, adopters, and supply co-develop over time as the technologies diffuse, hence demonstrating the merits of the framework. As these changes are both a reaction to and a cause of diffusion, the sociotechnical diffusion system develops through positive feedback loops. Although the systems' development is largely conducive of diffusion, some remaining and potential barriers are identified.