Technological Innovations and Sectoral Change

1. Technological Innovations and Sectoral Change Ulrich Dolata University of Bremen and Max Planck Institute for the Study of Societies, Cologne

2. Announcement I

3. Announcement II Ulrich Dolata Technik und sektoraler Wandel Technologische Eingriffstiefe, sektorale Adaptionsfähigkeit und soziotechnische Transformationsmuster MPIfG discussion paper 07/3, February 2007

4. Starting Point Three interrelated concepts: • Transformative Capacity of new Technologies (sektorale Eingriffstiefe neuer Technologien) • Sectoral Adaptability (sektorale Adaptionsfähigkeit) • Gradual Transformations (graduelle Transformationen)

5. Sectoral Systems 3 Elements • Technological Profile • Socio-economic Structures & Institutions • Typical Constellations of Actors and Patterns of Interaction 2 major types of sectoral systems • Sectors characterized by a high degree of innovative activities (= sectoral innovation systems) • Sectors characterized by the use of technologies

6. Sectoral Systems Elements technological socio-economic actors and patterns profile structures of interaction and institutions frame & guide constitute reproduce, (re-)inter- pret & transform sectoral patterns of regulation

7. Transformative Capacity of New Technologies • New technologies as relevant influencing factors on sectoral change • Technology-driven pressure to transform and adjust existing architectures of a sectoral system Transformative Capacity of new Technologies: • Direct and far-reaching pressure to change e.g. Biotechnology – Pharmaceutical Industry; Internet – Music-/Media Industries = high transformative capacity • Supplemental and sustaining impacts e.g. Internet – Automobile Industry = low transformative capacity

8. Transformative Capacity – qualitative Criteria Repercussions of new technological opportunities on • Technological profile & knowledge base • Patterns of research, production and distribution • Constellations and strategies of actors involved • Patterns of cooperation and competition • Institutional frameworks

9. Sectoral Adaptability • Degree of opennes of the established structures and institutions for path-deviant developments • Capability of the actors involved at anticipating, adopting and integrating new technologies Sectoral Adaptability: • Low adaptability = Persistence / path-dependent lock-ins e.g. Biotechnology – German Pharmaceutical Industry; Internet – Musik Industry • high adaptability = institutionalized mechanisms of adaptation facilitating path-deviant transformations e.g. Internet – Automobile Industry; Biotechnology – U.S. Pharmaceutical Industry

10. Institutionalized mechanisms of adaptation • High intensity of competition • Co-existence of different types of firms • Strong patterns of collaboration between firms / between industry and academia • Institutionalized niches for new cutting-edge actors • Technology and innovation policy

11. Gradual Transformations Characteristic of technology-driven sectoral change: Not: • abrupt breaks and radical shifts • decline, breakdown or radical exchange of existing organizations, structures and institutions But: • longer periods of discontinuity and mismatch • cumulation of a multiplicity of gradual adjustments that add-up to substantial change

12. Technology-driven sectoral change characterized by transformative capacity sectoral adaptability of new technologies of structures, institutions and actors unfolds constitutes pressure to change meets patterns of adaptation and absorption of technology-driven pressure Interplay leads to distinct Modes of sectoral transformation poles reactive and crisis-ridden anticipative and proactive Gradual Transformations gradual organizational, structural and institutional Change

14. Socio-economic structures • Types of firms • Patterns of research, production and distribution • Patterns of competition and cooperation • Degree of concentration

15. Institutions • regulative • normative • cultural-cognitive Rules of the game (Douglass C. North)