Davids versus Goliaths: Epigenetic dynamics and structural change in the Swedish innovation system

Abstract

Entrepreneurship induces novelty in the innovation system, generates selection processes, and shapes market structure over time. Entrepreneurial firms participate in the creation and diffusion of new technologies, the creation, and early development of new markets and industries, and the renewal of existing firms and industries. But does entrepreneurship also facilitate the transformation and adaptability of innovation systems? In this paper, we analyze whether the Swedish innovation system's industrial structure underwent a transformation as a result of the emergence, growth, and development of new entrepreneurial firms during the last financial crisis. In particular, we focus on the dynamics of two relevant sectors of the Swedish economy which, however, show however different structural characteristics: manufacture of machinery and industrial equipment, and computer programming. Our analysis reveals that large companies use firm acquisitions to respond to the threats posed by new emerging entrepreneurial firms. In the current context of disruptive change, acquisitions are thus used as a defensive mechanism for firms' survival and adaptation rather than as a means to transfer/gain new knowledge/technology. We discuss how entrepreneurial ecosystems and innovation support policies can take two forms depending on the stage of development of an innovation system.

Taking the systems approaches out of their comfort zones: Perspectives from under explored contexts

“…The authors push ecosystems theory out of its comfort zone by exploring the temporal dynamics of EEs, responding to calls for further theorization of the evolutionary dynamics therein (Mack & Mayer, 2016; Spigel et al., 2020). The evolutionary perspective is also presented by Romano and Zabala‐Iturriagagoitia (2020), who bring perspectives on both entrepreneurship and innovation together—a la Schumpeter—to examine structural change in the Swedish innovation system. Taking the context of the last decade's financial crisis, they examine the emergence, growth, and development of new entrepreneurial firms.…”

Coordinated Development of Innovation System in China’s Yangtze River Economic Belt, a Demand and Supply Perspective

“…Research about innovation systems is mainly focusing on five topics, which consists of the review of the development of innovation systems and its future [36][37][38], the research approaches of innovation systems [39][40][41], the evaluation of innovation systems in different countries, regions, and sectors [42][43][44], the role of different actors and their interactions in the innovation systems [45,46], and the effect of innovation systems on innovation and economic efficiency [47][48][49]. Moreover, the research scale is mostly country, region, and sector.…”