GRA 3154 International Perspectives in Innovation
Technological paradigms and technological trajectories
A suggested interpretation of the determinants and directions of technical change -Giovanni Dosi
Swagat R. Pyakurel Student number: 08926841 MSc, Innovation and Entrepreneurship
Similarities between science and technology (in procedures and nature) paradigms Inadequacy of one-dimensional market centric explanation of emergence of new technological paradigm.
Relationship between economic growth and change, and technical progress.
Demand-pull and Technology-push theories and their weaknesses.
Technological paradigm and technical trajectory.
2. Critical review of the theories of technical change
Demand pull: recognition of needs by producers followed by attempts to satisfy those through technological efforts.
Needs expression of preferences - increased demand (of goods with preferred characteristics) - producer entry proper innovative process product
Criticism (Demand pull) - Technological changes as being passive and reactive to market conditions.
Inability to explain selection and timing of a certain technological development instead of others Neglect of change in inventive capability over time
3. Technological paradigm and technological trajectories
Broad definition of technology Technological paradigm and analogy with scientific paradigm Technological trajectory
A normal problem solving activity within a technological paradigm
Exclusion effect Economic forces, and institutional and social factors operate as a selective device in establishment of a certain technology Economic criteria direct the actual path Trajectories might be more or less powerful and complementary. Superiority of one technological path over another (determination)
Institutional effect on selection of technology and their importance - Weakness of market mechanisms in selection of technological directions Selection criteria: Excluding possible developments (negative criteria) marketability, cost saving capability (positive criteria) Final selection is through market as the selecting device.
Supply side define the paradigm and markets define the trajectories.
4. Technical change and industrial structure
First phase: emergence of new technologies characterized by emergence of new firms Second phase: Oligopolistic maturity
Incremental versus radical innovations: normal technical progress versus emerging technological paradigms Procedures of technical change Cumulativeness of technical advances
Importance of institutions
David J. Teece, Dosi's technological paradigms and trajectories: insights for economics and management , ICC (2008) 17 (3): 507-512. Arianna Martinelli , Technological trajectories and Industry evolution: The case of the Telecom Switching Industry. , DRUID-DIME Academy Winter 2008 PhD Conference, (Accessed 28th Aug, 2010, http://www2.druid.dk/conferences/viewpaper.php?id=1947&cf=28)