Abstract

This paper augments the technological innovation systems (TIS) framework to provide policy guidance on how to manage interactions between a core technology and its larger sectoral context. A TIS development cycle is presented that combines the TIS framework’s ability to clearly illuminate policy gaps with Erik Dahmén’s idea that technological diffusion creates structural tensions that introduce transformation pressure. This pressure can result in stagnation and unrealized development potential or spur sectoral complementarities and the evolution of a TIS into a larger “development block” of interlinked technological systems. Integrating structural tensions into TIS analysis highlights how the evolution of a focal technology induces technological complementarities and creates a need to continuously re-design policies. This underscores the continued benefit of a technology system perspective, even as a technology matures.The revised TIS framework is applied to a case study of the Canadian province of Nova Scotia that explores how variable renewable electricity diffusion introduces structural tensions with existing electricity grids, requiring the use of complementary technologies that add storage and flexibility. Nova Scotia aggressively developed wind energy and built a high-voltage direct-current transmission line to import hydroelectricity that could back-up variable renewable energy sources like wind.

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