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Technological Innovation and Industrial Evolution a Dissertation for the Doctor's Degree in Philosophy

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Technological Innovation and Industrial Evolution a Dissertation for the Doctor's Degree in Philosophy Technological Innovation and Industrial Evo lution - The Emergence ofIndustrial Networks Anders Lundgren AKADEMISK AVHANDLING som for avHiggande av ekonomie doktorsexamen vid Handelshogskolan i Stockholm framHigges till offentlig granskning fredagen den 13 december, 1991 kl 10.15 i sal KAW Ahogskolan, Sveavagen 65 STOCKHOLM 1991 Technological Innovation and Industrial Evolution A Dissertation for the Doctor's Degree in Philosophy. Stockholm School of Economics 1991 © EFI and the author ISBN 91 - 7258 - 332 - 0 Key Words Technological Innovation Industrial Evolution Networks Sociotechnical Systems Path-Dependence Scientific Research Public Policy Digital Image Technology Graphic Systems AS, Stockholm 1991 Distributed by: EPI, Stockholm School of Economics, Box 6501, 113 83 Stockholm, Sweden. Stockholm 1991 ~o Josefin ana.9Lmefie FOREWORD Two and a half years have passed and it is time to put down the pen or rather to save and quit. In the course of this inquiry into the nature of technological and social change, I have been through three technologies of writing: an ordinary ballpoint pen, an electric type-writer and finally I entered the micro-electronic age and shifted to a personal computer. If these technological shifts have had any significant, positive or negative, effect upon the quality of the work I cannot tell. They have certainly increased the cost of writing and the willingness to make changes. To a large extent I have changed my way of organizing the work. I have slowly adapted to the methods of word-processing and I have moved towards more and more sophisticated technology, yet when the writing gets difficult I sometimes go back to using the ballpoint pen. The outcome of the study would probably have been slightly different had I stayed with the original technology. I did however choose to wander in the garden of writing technologies and whatever route I would have taken, would have led me to a different end and there would be no path leading back. The result of my endeavour to unravel the secrets of technological and social change has not only been affected by the technology used. A dissertation is a product ofone doctoral student's struggle, which in its tum is a result of the social settings he or she is associated with. Or to use the words of Thomas Merton, "My successes are not my own. The way to them was prepared by others. The fruit of my labours is not my own: for I am preparing the way for the achievements of another. Nor are my failures my own. They may spring from the failures of another, but they are also compensated for by another's achievement." A dissertation is not produced in a vacuum. And during the seven years of seemingly endless struggles a lot of help has been needed, which has been, generously, offered by friends and colleagues. My first thanks must naturally go to my family: my wife Gunilla without whom I would not have started the project in the first place, and my daughters Josefin and Amelie making all these years at least twice as dynamic. I am also deeply grateful to Lena Bjorklund and Staffan Hulten with whom I spent my first critical years as a doctoral student. Innumerous walks through Stockholm with Staffan have enabled ix FOREWORD me to clarify the main points of my work and our continuous discussions have made it impossible to separate my own ideas from his. My four advisors have enthusiastically guided n1e through the process, always encouraging me to proceed further. Professor Lars-Gunnar Mattsson, Stockholm School of Economics, prepared the road for me, provided good working conditions and has continuously been urging me to complete the work. Continuous discussions, debates and disputes with Docent Hakan Hakansson, Uppsala University, have taken me to a point well beyond what I thought possible. Professor Svante Lindqvist, Royal Institute for Technology, introduced me into the gardens of history of technology and he taught me the difference between being a doctoral student and writing the doctoral dissertation. Professor Bengt Stymne, Stockholm School of Economics, helped me clarify my thoughts by persistently raising the impertinent question: What, more specifically is your research question? The Department of Marketing, Distribution and Industry Dynamics and the Economic Research Institute at the Stockholm School of Economics have provided an excellent environment for research and for writing a dissertation. Numerous research seminars and continuous private discussions have left me greatly indebted to several friends and fellow doctoral students: Per Andersson, Ann-Charlotte Edgren, Torbjorn Flink, Claes-Fredrik Helgesson, Susanne Hertz, Staffan Hulten, Dimitrios Ioannidis, Bengt Molleryd, Anna Nyberg, Magnus Soderlund, Lena Wikstrom, Mats Vilgon, Susanne Ostlund and other past and present colleagues at the department. The critique provided by Docent Bo Sellstedt is greatly appreciated. His comments has been most helpful in the completion of the thesis. I have also had the pleasure of working intimately with the 1M-group affiliated to Uppsala University and various discussions with past and present associates of the group, have provided many invaluable insights. I am especially grateful to Jens Laage-Hellman and Alexandra Waluszewski with whom I have had the opportunity to work more closely, in the field of technological change in industrial networks. My dear friend Jan Ottosson at the Department of Economic History at Uppsala University introduced me to social network analysis. The comments on my work provided by him and some of his fellow economic historians at senunar in Uppsala are greatly appreciated. Parts of my work have been conducted at the Center for Economic Policy Research at Stanford University and I am deeply indebted to professor Nathan Rosenberg and professor Paul A. David for conveying the economic historian's view on technological x FOREWORD change. The stay at Stanford University was made possible thanks to generous financial support from the Swedish National Board for Technical Development, L. Frrenkels Stipendiefond and E. Hellstroms Stipendiefond. This thesis would not have been possible had it not been for all the scientists, researchers, public policy makers, and managers in Swedish image processing network generously supplying me with a wealth of information. Financial support from the Swedish National Board for Technical Development and the Swedish Council for Research in the Humanities and Social Sciences, have kept me alive and my study going for all these years. Finally, I am greatly indebted to Rune Castenas, the Director of the Economic Research Institute at Stockholm School of Economics for his incredible ability to identify and solve all kinds of problems and to Lennart Elg, the Swedish National Board for Technical Development, for always believing in me. Bill Harris of Professional Communications Skills at the Stockholm School of Economics helped me with my English. A very special last word of appreciation goes to Lena Wikstrom and Claes-Fredrik Helgesson for proof­ reading the final manuscript and helping me with some of the figures and tables. The technology used and the social context in which I have worked have led me down a specific path and in writing this thesis, this has made all the difference. Anders Lundgren Stockholm in Novernber 1991 xi CONTENTS Part I Setting the Stage Chapter 1 Introduction 3 Three Paths of Inquiry 4 Stating the Issue 8 Structure of the Book 10 Chapter 2 Setting the Stage for Image Processing in Sweden 13 Introduction 13 Digital Image Technology 14 Examining some of Preconditions for the Development Digital Image Technology in Sweden 17 Computer Technology - An International Perspective 22 Some Notes on Data 24 Part II The Act of Insight 27 Chapter 3 Perspectives on Technology and Industry 29 Technology and Economics. 29 The Nature of Technological Change. 35 Technology and Industrial Evolution. 40 The Nature of Knowledge. 44 Summary 50 Chapter 4 A Contextual and Historical Perspective 52 In Context 53 History Matters 63 Some Notes on Method 72 Technological System and Industrial Network in their Particular Context of Time and Place 79 Chapter 5 Technological Systems and Industrial Networks 81 Industrial Networks Some Antecedents 81 Technological Change in Industrial Networks - Three Propositions 94 Industrial Networks Defined 98 A Framework for an Understanding of the Emergence of a New Industrial Network 103 Summary 105 xiii CONTENTS partIn Novelty in Thought and Action 109 Chapter 6 Genesis 111 Five Centres of Origin 112 A Second Wave of New Ventures 122 Recapitulating the Genesis of The Swedish Image Processing Network 123 Chapter 7 Coalescence 129 Establishing the Technological System of Digital Image Processing 129 The Coalescence of the Swedish Image Processing Network 134 Bridging the Gap Between Scientific Research and Industrial Innovation 141 Recapitulating the Coalescence of the Swedish Image Processing Network 143 Chapter 8 Dissemination 148 Integrating the New Technological System with Pre-Existing Technologies 148 The Dissemination of the Image Processing Network 156 Recapitulating the Dissemination of the Swedish Image Processing network 185 The Emergence of the Swedish Image Processing Network- An Epilogue 189 Part IV Critical Revision of the Emerging Pattern 191 Chapter 9 In Conclusion 193 Recapitulating the Basic Ideas 193 The Emergence of Industrial Networks 194 Chapter 10 Taking it one Step Further 198 Network Technologies 198 System-Building without System-Builders 200 Public Policy and Strategic Action Matters 201 References 209 Appendix A Personal Interviews Appendix B Network Analysis of the Image Processing Network in 1975 Appendix C Network Analysis of the Image Processing Network in 1983 Apppendix 0 Network Analysis of the Image Processing Network in 1989 xiv Part I SETTING THE STAGE In this part the stage will be set for the study of the emergence of an image processing network in Sweden. We begin with stating the issues and continue with a brief introduction to digital image technology and the context in which it has been developed.
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