On and off the beaten path: The evolution of four technological systems in Sweden

Abstract

This paper examines four Swedish case studies of technological systems from the perspective of path dependence: what are the similarities and differences in this regard between factory automation, electronics and computers, biotechnology, and powder technology? What are the distinctive features in each system which set it apart from similar systems elsewhere, and what role does path dependence play in explaining these features? The essential function of technological systems is to capture, diffuse, and magnify spillovers of technical and organizational knowledge: therefore, the nature of knowledge (i.e., the characteristics of knowledge and how it can be transmitted) in each system determines what types of spillovers are likely to occur, as well as the mechanisms through which they occur. Other important influences are the initial conditions and the institutions (including both organizations and rules of the game).