Self-reinforcing Mechanisms in a Multi-technology Industry: Understanding Sustained Technological Variety in a Context of Path Dependency

Abstract

This paper studies self-reinforcing mechanisms in multi-technology industries, i.e. industries in which technological lock-in does not occur and several technologies continue to co-exist.The purpose of this paper is to investigate what kind of self-reinforcing mechanisms can be present in such industries and explain how multiple paths can co-exist and interact in a context of self-reinforcement and, ultimately, path dependency. Building on the empirical example of the lighting industry, the paper shows that all previously recognized types of selfreinforcing mechanisms can be present in a multi-technology industry. However, in addition to the path-internal positive feedbacks and cross-path negative externalities identified in single-path settings, multi-technology industries also experience positive cross-path externalities that create a symbiotic relationship between alternatives and allow for the reproduction of the same development pattern across technologies. Due to the existence of such non-negative technology interactions, multi-technology industries can be path dependent while still retaining technological variety.

Technological innovation systems: a review of recent findings and suggestions for future research

“…The main weaknesses with regard to these functions are that the knowledge bases of the TISs are often not described in any detail and that knowledge diffusion mechanisms are understudied; that the importance of human and physical resources is downplayed; and that mechanisms guiding the direction of search within a TIS are not very well understood. The two latter would, presumably, be especially relevant for mature TISs, where existing resources and path dependency have been shown to be able to both drive and block endogenous innovation (Onufrey and Bergek 2015;Onufrey 2017). 'Legitimation' has been rather well covered, but there is some confusion with regard to what is legitimated (technology or industry) and by what stakeholders (the general public or political decisionmakers).…”

Technological innovation systems in contexts: Conceptualizing contextual structures and interaction dynamics

“…in the paper and pulp and lighting industries (cf. Karltorp and Sandén, 2012;Onufrey and Bergek, 2015)). …”

System dynamics modelling and simulation for sociotechnical transitions research

“…The MLP discusses how social-institutional and evolutionary changes reinforce each other through feedback mechanisms (Geels and Schot, 2007), that generate coordination effects, complementarity effects, learning effects, and adaptive expectation effects (Sydow et al, 2009). Such mechanisms can operate at the market, regional and organizational levels (Dobusch and Schußler, 2012) and can be specific to a technology or have cross technology effects (Onufrey and Bergek, 2015). SD can be used to map such feedback processes through causal loop diagrams (Sterman, 2000) and simulate their effects.…”