Technological Innovation Systems Perspective Research Articles

A system lock-in blocks the uptake of mixed sustainable Eucalyptus plantations in Brazil

Forest plantation areas across the globe are increasing in size and in 2019 Eucalyptus monocultures in Brazil covered 6.97 million hectares (0.8%). These monocultures hardly provide ecosystem services and do not support wildlife habitats. A transition towards more sustainable Eucalyptus plantations is urgently needed to support the provisioning of ecosystem services and conserve biodiversity. This transition requires the development of sustainable business models. We studied the upscaling of sustainable Eucalyptus plantation alternatives in Brazil, by analysing the potential barriers that need to be overcome using the Technological Innovation Systems perspective and semi-structured interviews of relevant stakeholders across the Eucalyptus value chain. Although the provisioning of ecosystem services is improved by alternative plantation management, we identified four blocking mechanisms that inhibit the functioning of the innovation system and as such hamper upscaling; 1) the productivist approach by incumbent actors on plantation management that is focussing only on short-term profit maximisation and results in a strong resistance to change current practices, 2) the weak societal and governmental vision that does not put sufficient pressure to change practices, 3) additional certification to support alternatives is in its infacy to develop niche markets which also hampers the development of financial support, and 4) failed demonstration projects in the past that have led to a lack of proof of concept for further experimentation and knowledge development. These barriers combined lead to a system lock-in, resistant to change and not capable for a diffusion of sustainable alternatives. We conclude that the directionality of a sustainability transformation should be enhanced by formulating long-term goals and strong commitment of public and private actors. We discuss how a mission oriented approach could foster such directionality for the urgently needed regime transformation in Eucalyptus paper and pulp production.

An actor-oriented perspective on innovation systems: Functional analysis of drivers and barriers to innovation and technology adoption in the mining sector

Technology developers are key actors in an innovation system. Applying the technological innovation systems perspective as an analytical framework, our study unpacks drivers and barriers to technology development, adoption and diffusion in an innovation system and relates these to firm-level innovation processes. We approach this by situating our enquiry at the intersection of system- and firm-level perspectives. Based on case study data, our research highlights drivers and barriers prevailing in the mining innovation system affecting technology developers and establishes links to key innovation processes relevant to these firms. We complement these findings with insights into strategies firms employ to mitigate or overcome barriers identified, with the potential to positively affect innovation processes at the firm level. We argue that enablers and barriers to innovation encountered by firms have their effect by affording or impeding opportunities for firms to undertake the innovation processes required to attain technological innovation outcomes.

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.

Toward the Dynamic Modeling of Transition Problems: The Case of Electric Mobility

Transportation systems are transitioning to e-mobility, but scholars and policymakers are struggling to understand how to accomplish this transition effectively. In response, we draw on the technological innovation systems perspective and the unified theory of acceptance and use of technology to develop a theory-guided and entity-based simulation model to better understand, among others, electric vehicle (EV) adoption processes as a specific yet core element driving business innovation. By doing so, our model is among the first to capture and combine the macro-and micro-level interactions associated with the EV transition process. Our simulation results shed light on the impact of alternative innovation policies, notably by explaining relations between EV market dynamics and changes in e-mobility policies, such as EV-related subsidies and resource mobilization. As such, the simulation modeling approach adopted in this paper enables a more in-depth study of transition problems related to e-mobility. Notably, the resulting modular model can be adjusted to other e-mobility transition problems by changing the specified entities.

Coordination and legitimacy in the Australian biofuels innovation system 1979 - 2017

Like many countries, since the 1980s, Australia has introduced a range of government policies to support the development of a biofuels industry. Despite growth in the use of biofuels over this period industry development has not progressed to the extent seen in many of these other countries. This paper uses the technological innovation systems perspective to guide an historical event analysis of the biofuels innovation system within Australia over a period of almost 40 years. Results suggest two main system dynamics have been present: a series of science and technology cycles that aimed to progress biofuel technologies toward commercial competitiveness with incumbent petroleum industries; and several short lived industry development cycles that were weakened by limited market formation mechanisms and insufficient socio-political legitimation. It is concluded that the introduction of biofuel quotas in the absence of sufficient industrialisation of biofuels, while promoting some growth, undermined their effectiveness. The results are discussed in terms of the need for policy layering to support effective system development.

Of actors, functions, and fuels: Exploring a second generation ethanol transition from a technological innovation systems perspective in Brazil

This article analyzes the transition towards second-generation (2G) biofuels during the 2005–2018 period in Brazil, which is a world leader of first-generation (1G) biofuels. In the case of Brazil 2G technologies are associated with sugarcane and the technologies of this transition considered in this article are enzymatic hydrolysis and energy cane. The analytical background used is the technological innovation systems (TIS) framework. The functioning of the innovation system is studied using scientific papers, patents, reports, newspaper information, and other data from Brazilian funding agencies. The paper examines how the functions of the Brazilian bioethanol TIS related to 2G biofuels operated and were interconnected in this period. We found that the knowledge development and resource mobilization functions operated positively but others did not, especially guidance of the search, market formation and creation of legitimacy, revealing an unbalanced system transformation. During this period there were two important phases, one dominated by academic actors and the other by the federal development bank. However, we found that the functions were not enough to explain the TIS evolution, and that the external context of the global TIS and the Brazilian macroeconomic dynamic were also very important to explain this evolution. We conclude that the transition was not completed and that in the future policies should consider system dynamics and context evolution.

Destined for decline? Examining nuclear energy from a technological innovation systems perspective

Technology decline is a central element of sustainability transitions. However, transition scholars have only just begun to analyze decline. This paper uses the technological innovation systems (TIS) perspective to study decline. Our case is nuclear energy, which is at a crossroads. Some view nuclear as a key technology to address climate change, while others see an industry in decline. We examine a broad range of empirical indicators at the global scale to assess whether or not nuclear energy is in decline. We find that an eroding actor base, shrinking opportunities in liberalized electricity markets, the break-up of existing networks, loss of legitimacy, increasing cost and time overruns, and abandoned projects are clear indications of decline. Also, increasingly fierce competition from natural gas, solar PV, wind, and energy-storage technologies speaks against nuclear in the electricity sector. We conclude that, while there might be a future for nuclear in state-controlled ‘niches’ such as Russia or China, new nuclear power plants do not seem likely to become a core element in the struggle against climate change. Our conceptual contribution is twofold. First, we show how the TIS framework can be mobilized to study technology decline. Second, we explore a range of indicators to cover the multiple dimensions of decline, including actors, institutions, technology, and context.

Finland's wood-frame multi-storey construction innovation system: Analysing motors of creative destruction

Wood-frame multi-storey construction (WMC) is enjoying a period of increasing popularity in the public domain, with ‘timber towers’ and ‘wooden skyscrapers’ being labelled as potential game changers. Yet, whilst WMC is growing in some European cities, it still remains a curiosity. The emergence of WMC is the result of decades of science, technology and innovation policy and entrepreneurial experimentation. The aim of this paper is to analyse the emergence and evolution of the Finnish WMC from a technological innovation system perspective; paying attention to niche creation and regime destabilisation functions and motors of creative destruction. We analyse two distinct periods of activity in WMC innovation. Both were stimulated by government interventions looking to encourage value-added activity for the forestry sector in light of external pressures. Our analysis of WMC innovation systems functions highlights the importance of creative destruction in the science and technology push motor of innovation, especially where niche WMC technologies are competing against the incumbent concrete frame construction system.

Clean energy storage technology in the making: An innovation systems perspective on flywheel energy storage

The emergence and diffusion of green and sustainable technologies is full of obstacles and has therefore become an important area of research. We are interested in further understanding the dynamics between entrepreneurial experimentation, market formation, and institutional contexts, together playing a decisive role for successful diffusion of such technologies. Accordingly, we study these processes by adopting a technological innovation system perspective focusing on actors, networks, and institutions as well as the functions provided by them. Using a qualitative case study research design, we focus on the high-speed flywheel energy storage technology. As flywheels are based on a rotating mass allowing short-term storage of energy in kinetic form, they represent an environmentally-friendly alternative to electrochemical batteries and therefore can play an important role in sustainable energy transitions. Our contribution is threefold: First, regarding the flywheel energy storage technology, our findings reveal two subsystems and related markets in which development took different courses. In the automotive sector, flywheels are developing well as a braking energy recovery technology under the influence of two motors of innovation. In the electricity sector, they are stagnating at the stage of demonstration projects because of two important system weaknesses that counteract demand for storage. Second, we contribute to the theory of technological innovation systems by better understanding the internal dynamics between different functions of an innovation system as well as between the innovation system and its (external) contextual structures. Our third contribution is methodological. According to our best knowledge, we are the first to use system dynamics to (qualitatively) analyze and visualize dynamics between the diverse functions of innovation systems with the aim of enabling a better understanding of complex and iterative system processes. The paper also derives important implications for energy scholars, flywheel practitioners, and policymakers.

Technical efficiency in a technological innovation system perspective: The case of bioenergy technologies R&D resources mobilisation in a sample from EU-28

Building upon mainstream literature on concept and measures of innovation efficiency, this paper introduces a new method for the evaluation of R&D resources mobilisation in a Tech-nological Innovation System framework. The method is based on a quantitative set up that aims to improving both the representation and assessment of system dynamics. An application to the case of the EU28 bioenergy technological system shows that almost 20% of the R&D potential was under-utilised in 2011. Main determinants of this systemic failure were specific economic and policy factors, which conditioned allocation decisions. In particular, the preference bias induced by the general investment capacity of the system, competitive pressure on entities undertaking innovation activities and the intensity of policy production. Conversely, a relatively higher share of educated population and the evidence of an effective progress towards the achievement of specific policy targets positively impacted on the efficient utilisation of R&D resources.

Unpacking resource mobilisation by incumbents for biorefineries: the role of micro-level factors for technological innovation system weaknesses

ABSTRACTThis paper unpacks resource mobilisation for biorefineries by studying investment decisions of incumbent pulp and paper firms in Sweden and Finland. The analysis highlights that the limited adoption of biorefinery technologies can be attributed to both insufficient abilities (lack of needed competencies and partnerships) and interests (preference for improving existing technologies) by pulp and paper incumbents. Drawing on the technological innovation system perspective complemented with insights from the management literature on the role of incumbents in technological change, four issues are empirically identified as important for improving resource mobilisation for biorefinery technologies: establishing loosely coupled divisions in pulp and paper firms; creating internal markets for new bioproducts aimed at further technological development; entering purchasing agreements with downstream actors; and investing in new managerial competencies.

Comparing the innovation effects of support schemes for renewable electricity technologies: A function of innovation approach

The aim of this paper is to provide a comparative assessment of the innovation effects of instruments which support the diffusion of renewable electricity technologies with a functions-oriented technological innovation system perspective. The paper provides a link between two major streams of the literature: the functions of innovation systems and the literature on renewable electricity support schemes. We show that, when a functional perspective is adopted, feed-in tariffs are likely to be superior to other policy instruments (quotas with tradable green certificates and tendering), although they still need to be complemented with other instruments, most importantly, direct R&D support. Furthermore, those innovation effects are affected by the specific design elements of the instruments chosen.

Networks of practice for co-construction of agricultural decision support systems: Case studies of precision dairy farms in Australia

The on-farm use of commercial decision support systems (DSSs) presents learning and adaptation challenges for farmers and their social learning networks. A study of six Australian dairy farms installing new precision dairy farming technology was undertaken to develop an in-depth picture of the issues occurring at the interface where precision farming data and decision-making meet. A qualitative exploratory case study method was used, with farmers each interviewed up to five times from pre-installation until 2years of use. A three-phase learning trajectory was observed amongst farmers involving early learning, consolidation, and advanced use. Farmers exhibited experiential learning but also learned via interaction with a network of on- and off-farm contacts forming a network of practice around the new users. This precision dairy farming network of practice formed a vital method of exchanging knowledge on how to best use technology and data in farming systems, with DSSs acting as a boundary object for learning. Externalisation of tacit knowledge into an explicit form suitable for DSSs was a major focus of this social learning. Co-construction of DSS knowledge in the emerging network was impeded by the absence of potentially important agents, in addition to the incomplete links between existing agents such as technology retailers and farmers. A technological innovation systems perspective is used to propose an improved framework to make greater use of translators and intermediaries. It is aimed at improving links amongst the community to more effectively aid farmers in creating new knowledge in agricultural DSS use.

Competition between first and second generation technologies: Lessons from the formation of a biofuels innovation system in the Netherlands

The support of sustainable energy innovations has become a dominant topic on the political agenda of many countries. Providing this support remains difficult, since the processes constituting such innovation trajectories are poorly understood. To increase insight in such processes, this paper takes the historical development of biofuels in the Netherlands as the topic of study. Special attention is paid to the simultaneous development of two technology generations within the field: a first generation (1G) and a second generation (2G) of biofuels. A critical question asked is whether deployment programmes for a 1G technology may have positive effects on the development of later generations. Two archetypical support strategies are identified: one is to keep investing in R&D concerning 2G technology, where the expected outcome is a fast move from one technology generation to the other. The other strategy is to focus on learning-by-doing in the 1G technology. In that way progress can be made in 1G technologies but the effects on 2G technologies are uncertain. We apply a Technological Innovation System perspective to analyse the strategies followed and their effects. From the results we draw lessons of relevance for practitioners who aspire to understand and influence emerging energy technologies.