Technological Innovation System Framework Research Articles

The geography of technological innovation systems - The case of forest-based biofuels in a Swedish region

Geographical proximity exerts a substantial influence on structural evolution, developmental trajectory, and pace of sociotechnical system growth. This study explores this aspect within the context of the development of forest biomass-based biofuel technology, employing a Technological Innovation System (TIS) framework with the lens of geographical proximity utilization of system components. The research employed a combination of document analysis and interviews with key system stakeholders as data collection methods. The analysis reveals that the close geographical proximity of the system components and technologies, encompassing both technical aspects and sectors, did not result in synergetic effects, in contrast to prior TIS research findings. Rather than fostering collaboration, it has engendered a competitive dynamic, partially driven by actors vying for knowledge leads and funding from both regional and national agencies. Consequently, the potential benefits of geographical proximity of system components remain largely untapped. In light of these results, this study offers practical recommendations for exploiting untapped opportunities, advocating for more strategic use of geographical proximity to foster system technology development and enhance its role in national TIS development. This case study enriches sustainability transition literature by providing valuable insights into the role of geographical proximity in innovation processes.

Does the Rubber Meet the Road? Assessing the Potential of Devulcanization Technologies for the Innovation of Tire Rubber Recycling

Innovation is crucial to meet the circular economy goals for tire recycling. Devulcanization, an innovative recycling method of reprocessing tire rubber, offers a pathway towards achieving circular economy objectives. While previous research on devulcanization has primarily focused on technical aspects, this study shifts the focus towards identifying opportunities and barriers for innovation through devulcanization. This research utilizes the Technological Innovation System framework as a basis to analyze the dynamics of innovation within value chains and innovation networks. Across Europe, 36 organizations were identified that develop and utilize devulcanization to transform rubber from end-of-life tires into a valuable resource for new rubber products. In this study, a semi-structured in-depth interview approach was applied to interview 12 organizations that have developed or utilize technologies for the devulcanization of tire rubber. It was found that the development of various devulcanization approaches for diverse types of products has created opportunities for upscaling. To capitalize on these opportunities, organizations need to collaborate throughout the entire value chain of tire production and recycling. Achieving this collaboration requires interventions across the industry.

How user innovation communities contribute to sustainability transitions. An exploration of three online communities

Online user communities have given rise to a new form of peer network collaboration. This paper examines three user innovation communities to assess their contribution to sustainability transitions, particularly in terms of exploring sustainable technical solutions and their integration into society. We study three user innovation communities by analysing internet forum interactions and conducting member interviews. To assess the impact of these communities, we use the technological innovation systems framework as an analytical perspective. Our analysis shows that user communities encompass a wide range of innovation activities and show great variation in their profiles: from strongly technology-oriented, rather anonymous networks to very broad-based communities that actively influence policy discourse, public acceptance and the social embeddedness of technologies. We conclude that innovation policy makers should recognise the transformative potential of this type of innovation and harness its potential to open up and explore alternative and more sustainable pathways.

Parallel universes, one circular goal: An empirical study comparing Austrian wood- and plastic-based industries

The transition to a circular economy (CE) is vital for sustainable development, and this has prompted a need for studies on its nuanced implementation across sectors. This research investigates the divergent perceptions and implementations of CE in bio-based and non-bio-based industries by examining the Austrian wood- and plastic-based innovation systems (WCEIS and PCEIS) employing the technological innovation systems framework, with primary data from semi- structured interviews (N = 34). The findings reveal significant differences: WCEIS, aligning with prior literature, adopts a more opportunistic and positive strategy, while PCEIS exhibits intensified barriers, emphasizing mitigation of prevalent negative conditions. The insights reveal WCEIS embracing business model innovation and corporate image improvements as key drivers, leveraging potential economic value creation and resource efficiency, whereas PCEIS is molded by internal motivations, societal responsibilities, and a quest to alleviate its prevailing negative image by focusing on mitigating challenges in recyclates availability and sorting processes. However, both sectors perceive CE as a pivotal market opportunity. Specifically, a “pull” effect stemming from entrepreneurial motivations and positive market potentials guides WCEIS, while a “push” effect arising from urgent external constraints and remediation needs directs PCEIS. This denotes the essential divergence and convergence in their pathways toward CE. The study accentuates the imperative of strategic, sector-specific interventions and a recalibration in Austrian policy to bolster infrastructural developments, normalize secondary raw materials, and enrich public engagement. Recommendations propose targeted subsidies and training for WCEIS and community-driven initiatives and education for PCEIS, highlighting the importance of addressing unique challenges and capitalizing on the inherent drivers in each system to realize ecological aspirations.

Technological innovation systems (TIS) as a tool for sustainable development of EdTech startups in developing countries: A case of the Republic of Kazakhstan

The Technological Innovation Systems (TIS) framework has become popular for analyzing innovation dynamics and as a systematic approach to understanding the development of new technologies. This paper aims to identify the main drivers and issues faced by EdTech startups and the entrepreneurs’ innovation role within Kazakhstan’s entrepreneurial ecosystem using the TIS framework, but from the role of the entrepreneur as the main actor, as opposed to systems. This study offers relevant information for new entrepreneurs in the EdTech field aiming for similar goals and potentially facing similar challenges faced by current entrepreneurs in that country. Data were collected from an online survey and semi-structured interviews using a quasi-quantitative and qualitative approach. The main research findings include identifying critical categories of risks and success indicators for Kazakhstan’s EdTech startup entrepreneurs, including the ability to attract foreign and local investments, risk management, monetization strategies, developing trends, and government support. A total of 30 companies were analyzed, with findings suggesting that the quality of the entrepreneurial ecosystem reflects the level of economic development.

The rise of China's new energy vehicle lithium-ion battery industry: The coevolution of battery technological innovation systems and policies

In recent decades, the technological innovation systems (TIS) framework has been applied to the study of technology development and diffusion. While policy is considered a key element of TIS analysis, less attention has been paid to the influence of TIS dynamics on policymaking. To better understand the coevolution between TIS and policies, this paper develop an analytical framework to highlight the coevolution between TIS dynamics and policymaking. The framework underlines not only the influence of policies on TIS functionality, but also that changes in TIS functionality may in turn feed back into policymaking: policymakers may observe changes in TIS functionality and adjust policies to account for this, but changes in TIS functionality may also have implications for the ability of TIS actors to influence policymaking. Empirically, we study the new energy vehicle battery (NEVB) industry in China since the early 2000s. In the case of China's NEVB industry, an increasingly strong and complicated coevolutionary relationship between the focal TIS and relevant policies at different levels of abstraction can be observed. Overall, we argue that more research is needed to better understand the agency side of how TIS development leads to changes in policymaking.

Forever niche: Why do organically bred vegetable varieties not diffuse?

While organic food increased its market share in conventional food retail, virtually all organic vegetables are still conventionally bred. For decades, organically bred vegetable varieties remained a market niche, despite their socio-ecological benefits. This paper conceptualizes actors and activities around organic breeding as a Technological Innovation System (TIS) and analyzes what prevents these varieties from widely diffusing into conventional supermarkets. Investigated systemic barriers relate to knowledge, market formation, investments, and legitimacy. The study is based on interviews with food retailers and (commons-based) breeding initiatives across Germany. Theoretically, the paper adds an innovation system perspective on the diffusion of organically bred varieties, a blind spot in the emerging seed commons debate. Furthermore, it contributes to sustainability transitions literature by introducing a novel empirical topic and reframing the TIS framework to analyze agri-food innovations. Identifying barriers and vicious cycles might support practitioners and policymakers seeking to diffuse this agri-food niche.

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

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.

Quality improvement: understanding the adoption and diffusion of digital technologies related to surgical performance

PurposeQuantifying the performance level of surgeons with digital virtual reality (VR) simulators can help ensure that quality requirements in healthcare are met. In order to better understand integration amongst quality principles, practices and technologies in the adoption and diffusion of VR simulators, the authors applied a technological innovation system (TIS) framework. The purpose of this study is to understand how the adoption and diffusion of VR surgical simulators in a Swedish healthcare context is influenced by various system factors.Design/methodology/approachIn this study, single-case holistic design based on innovation system theory was used to analyse the adoption of digital quality technologies related to surgical performance in Swedish hospitals. The case employs a mixed methods approach triangulating data longitudinally from published documents and expert interviews.FindingsAdoption of digital technologies regarding surgical performance is restricted by system factors relating to inconsistent normative and regulatory requirements for quantified performance criteria to judge surgical expertise. Addressing these systems' weaknesses with evidence-based training programmes can have a significant impact on the further development of the innovation system and can ultimately affect healthcare reliability and quality.Originality/valueThis paper explores quality management (QM) challenges in the context of digital transformation in healthcare. The paper attempts to fill the gap for TIS studies in a healthcare context and highlight the role of innovation function strength along the value chain and in relation to technology cycles to increase the understanding of adoption of digital technologies relating to surgical performance.

Accelerating the transition towards sustainable agriculture: The case of organic dairy farming in the Netherlands

CONTEXTRegardless 30 years of similar regulations and a common internal market, the diffusion of organic farming strongly differs amongst European member states. While the share of organic farmland in 2018 in Denmark and Austria was respectively 9.8% and 24.7%, in the Netherlands it was only 2.3%. OBJECTIVEThe aim of this paper was to analyze what factors may determine the very different diffusion of organic dairy farming in the Netherlands, compared to Denmark and Austria. METHODSWe applied the Technological Innovation System (TIS) framework to the case of organic dairy farming in the Netherlands, for which a literature review and interviews with key actors within the dairy value chain were carried out. To identify potential leverage points for upscaling also interviews with key actors from Denmark and Austria were held. RESULTS AND CONCLUSIONSVarious barriers in the fulfilment of the seven TIS functions of Dutch organic dairy farming could be identified. With regard to the system function market formation a diversification in certified dairy products are signaled as important factors for upscaling. The function entrepreneurial activities will benefit from an reinforcement of governmental subsidies, since farmers who convert to organic run financial risks. Regarding the function guidance of the search, more consistent and systemic governmental support is needed, since the conversion to organic encompass a regime shift rather that supporting newcomers entering the sector. SIGNIFICANCEBy studying the blocking mechanisms that hinder diffusion of organic dairy, the paper provides several leverage points that may also be applicable to the arrested diffusion of organic farming in other countries as well as the larger sustainability transition in European agriculture.

Overcoming the harmony fallacy: How values shape the course of innovation systems

The technological innovation systems (TIS) framework is one of the dominant perspectives in transitions studies to analyze success conditions and system failures of newly emerging technologies and industries. So far, TIS studies mostly adopted a rather harmonious view on the values of actors and by this were unable to address competition, conflicts and, in particular, battles over diverging directionalities within the system. To empirically assess this potential “harmony fallacy”, we identify values as part of underlying institutional logics of major organizations in the field of modular water technologies in Switzerland by means of 26 expert interviews. We show how logics may condition collaboration patterns and technological preferences. This analysis inspires key conceptual tasks of innovation system analysis, like the identification of system failures, the setting of appropriate system boundaries and the formulation of better policy recommendations.

What about the regional level? Regional configurations of Technological Innovation Systems

Regional innovation policy must not only strive for economic competitiveness, but also push novel and more sustainable technological solutions. The complex and multi-scalar process of developing and diffusing new technologies is captured by the Technological Innovation Systems (TIS) framework. However, the approach neglects regional heterogeneity and lacks a nuanced and systematic understanding of how technological change plays out differently across places. We thus complement TIS with insights from the literature on Regional Innovation Systems (RIS), which offers manifold comparisons and typologies of institutional contexts for regional innovation. We argue that three ideal-typical configurations – localist-grassroots, interactive-networked, and globalist-dirigiste – exist at the intersection between a technological and specific regional innovation system. We discuss how these regional configurations contribute differently to knowledge creation and market formation within the overall TIS and point to the innovation-related challenges they are confronted with. We illustrate our conceptual arguments with a brief comparative case study on three regions in the TIS for onshore wind energy. Overall, this paper contributes to the literature on the geographies of innovation and sustainability transitions, introduces a framework for analyzing regional heterogeneity in TIS, and enables more fine-grained technology- and place-specific policy interventions at the regional level.

Modelling and simulating a multi-modal and multi-dimensional technology interaction framework: The case of vehicle powertrain technologies in the US market

A multi-modal and multi-dimensional technology interaction framework is constructed to systematically and dynamically model and simulate the dimension, extent, and modes of multi-technology interactions. Using the Technological Innovation System (TIS), it is argued that a TIS’ internal dynamics couple with the internal dynamics of neighbouring TISs vis-à-vis what is referred to as ‘co-dynamics’ which trade a mix of positive and negative externalities in the form of biological relationship modes. Based on the Lotka-Volterra equations, the framework is quantified and simulated via a computerised System Dynamics model, for the case of internal combustion engine, hybrid, and battery electric vehicles over 1985–2050 in the US market. The pure competition view in the strategic management literature is extended by the nuanced multi-modal interactions in ecology such as parasitic, commensal and amensalism modes. Additionally, the single-path view in the path dependency literature is extended by the nuanced multi-dimensional interactions such as knowledge cross-path interaction and market cross-path interaction. Furthermore, the TIS framework is made more outward orientated by proposing the notion of ‘co-dynamics’ and motors of ‘creative destruction’ and ‘creative accumulation’. It is concluded that innovation policy mixes can possess a triple nature of ‘creation’, ‘destruction’ and ‘accumulation’ for interacting TISs through positive and negative internalities and externalities.

Impact of home market on business development and internationalization of demand response firms

The transition toward more renewable-based energy systems increases the need for new flexible resources, such as demand response (DR). Previous literature has found various barriers for DR utilization, but much of this research has focused on the initiation of DR operations or barriers in national markets and not on factors that hinder market upscaling and firm internationalization. We address this gap by analyzing interviews with 22 DR companies active in Finland, one of the early mover countries for automated DR. While most of previous research has focused on electricity DR, our interviewees also include district heating DR companies. By using the Technological Innovation System (TIS) framework, we study how the advanced regulatory and market framework and the technology rollout in Finland have affected the DR service development and the internationalization of Finnish companies. Based on our results, the DR market formation in Finland has largely relied on the Finnish transmission system operator's early decision to allow independent aggregation and the early large-scale rollout of smart meters. The advanced home market has enabled firms to develop new solutions and prove their concept. Yet, the highly structured nature of energy markets complicates the access to both advanced and less advanced foreign markets.

Technology diffusion and firm agency from a technological innovation systems perspective: A case study of fatigue monitoring in the mining industry

The diffusion of new technological innovations occurs within an ecosystem of stakeholders, institutions and networks. Dynamic interactions and processes need to unfold in order for an innovation to be diffused successfully. This study borrows from the perspectives of the technological innovation systems (TIS) framework and agency to investigate how a firm can be agentic in overcoming barriers to the diffusion of its technology; by removing blockages to the fulfilment of innovation functions outlined by TIS. As such, we analyse firm- and system-level structures and processes relevant to a new fatigue monitoring device primarily developed for application in the mining sector. Our results highlight impediments and drivers for the diffusion of the new device at different levels and at different stages throughout the diffusion process. The study also suggests that new entrants into an innovation system need to critically analyse its structure and functions and devise strategies to overcome blocking mechanisms.

Artificial intelligence (AI) healthcare technology innovations: the current state and challenges from a life science industry perspective

ABSTRACT The purpose of this study is to assess innovation system performance and identify the system-blocking mechanisms for AI healthcare technology innovations related to the life science industry. The socio-technical analytical framework Technological innovation systems (TIS) was used to assess the structural and functional dynamics of AI healthcare technology innovations related to the life science industry in West Sweden. The case study employs a mixed-method research approach, triangulating qualitative and quantitative data from secondary published sources and interviews with 21 experts and 25 life science business executives. The results reveal that innovation system performance is primarily restricted by the system weaknesses of limited resources and insufficient communication from leading healthcare professionals regarding their needs for improving healthcare using AI technology innovations. This study shows that to improve innovation system performance, policy interventions intended to increase available resources and to formulate vision and mission statements to improve healthcare with AI technology innovations may be encouraged. This study contributes to the understanding of the mechanisms and interdependencies between system functions using the socio-technical TIS framework in a healthcare context.

Mobilising mainstream finance for a future clean energy transition: The case of Finland

Financing the clean energy transition is a growing field of research, yet most research on investments in clean energy has focused on the early stage, and hence on the role of public policy and private equity such as venture capital. We examine how the clean energy sector enters the stage of mainstream financing, using Finland as an empirical case. We combine data from expert interviews and secondary sources, which are analysed using the Technological Innovation Systems framework to identify the enablers and barriers of the TIS functions of the market motor. The findings show the interdependency of the various TISs of the clean energy sector especially in creating a stable market for the developing technologies. Especially the growth of investments in renewable power production is dependent on the growth of investments in electrification and the management of intermittency of power production.

Evidence-based narratives in European research programming

The article introduces and exemplifies the approach of evidence-based narratives (EBN). The methodology is a product of co-design between policy-making and science, generating robust intelligence for evidence-based policy-making in the Directorate General for Research and Innovation of the European Commission (DG RTD) under the condition of high uncertainty and fragmented evidence. The EBN transdisciplinary approach tackles practical problems of future-oriented policy-making, in this case in the area of programming for research and innovation addressing the Grand Societal Challenge related to climate change and natural resources. Between 2013 and 2018, the EU-funded RECREATE project developed 20 EBNs in a co-development process between scientists and policy-makers. All EBNs are supported with evidence about the underlying innovation system applying the technological innovation systems (TIS) framework. Each TIS analysis features the innovation, its current state of market diffusion and a description of the innovation investment case. Indicators include potential future market sizes, effects on employment and environmental and social benefits. Based on the innovation and TIS function analyses, the EBNs offer policy recommendations. The article ends with a critical discussion of the EBN approach.

Blending new and old in sustainability transitions: Technological alignment between fossil fuels and biofuels in Norwegian coastal shipping

Facing increasing pressure to decarbonize, innovation within the shipping sector has turned to low-and zero carbon solutions. In this paper we investigate how the development and implementation of biodiesel and liquefied biogas (LBG) in Norwegian coastal shipping has been influenced by the technological alignment with fossil fuels. We understand this influence to emanate from the (mis)match of biofuels with the structure of coastal shipping (e.g. infrastructure, knowledge, institutions, actors) which has been shaped by fossil fuels. This way we contribute to the development of Technological Innovation Systems (TIS) framework by discussing the effect of sectoral cross-technology externalities on the functionality of a TIS. Our core data consists of semi-structured interviews, supported by a firm survey with Norwegian shipowners.Our results show that the technological alignment provides the biodiesel and LBG TISs with several benefits, such as access to established markets and infrastructure, which suggests that Norway to some extent has good conditions for maritime biofuel markets to form. However, two major barriers for implementation of biofuels are fuel availability and cost. Considering the competition with battery-electric and hydrogen solutions, the positive externalities of the interchangeability between fossil and biofuels are insufficient to make biodiesel and LBG competitive contenders for coastal shipping. In order to upscale implementation of biofuels in the Norwegian coastal shipping sector, which is needed to reach national and international emission targets, there is a need for strengthened policy interventions. To establish market formation, subsidies for biofuels and feed-in targets would be crucial policy instruments.

On the coexistence of positive and negative externalities in the inter-powertrain relationships

The green knowledge-based economy has complicated the dynamical knowledge interactions in the multi-technology sector of transportation that involves a constellation of interrelated powertrain technologies, including the internal combustion engine, hybrid and battery electric vehicles (ICEV, BEV, and HEV). Based on the biological ecology perspective and the technological innovation system (TIS) framework, we explore the dynamical inter-powertrain relationships in terms of knowledge diffusion over 1985–2016. We measure their knowledge diffusion by extracting patents and publications forward citations from the Scopus and Derwent databases, respectively. Quantifying by the Lotka-Volterra (L-V) equations, our results show that powertrains support and inhibit their knowledge diffusion growth by projecting positive and negative externalities, which are carried through the TIS co-dynamics. Our results reveal these externalities are manifested in a mix of biological relationship modes, such as symbiosis, parasitism, commensalism, and amensalism. We, therefore, challenge the assumed pure competition between ICEV and BEV or their predator-prey relationships with HEV by elaborating on the notions of ‘creative destruction’ and ‘creative accumulation’. Our research contributes to the innovation systems literature by accommodating ‘knowledge diffusion co-dynamics’ as an extension to the TIS framework, making it more outward oriented. Moreover, the co-existence of positive and negative externalities builds up a multi cross-path interactions view that extends the conventional single-path view in the path dependency literature. Our research drives insightful knowledge for strategising and policy making in regard with investing in new disruptive technologies, sustaining the incumbent technology, or hybridising them as a transitionary (or stationary) solution towards sustainable mobility transition.