IDEAS home Printed from https://ideas.repec.org/a/eee/respol/v49y2020i8s0048733320300895.html
   My bibliography  Save this article

Evolution and structure of technological systems - An innovation output network

Author

Listed:
  • Taalbi, Josef

Abstract

The mechanisms responsible for the structure and evolution of technological systems are not fully understood. This study examines the network of supply and use of significant innovations across industries in Sweden, 1970-2013. The results suggest that at least 30% of innovation patterns can be statistically predicted by network stimulus from both backward and forward linkages in the Swedish economy. The network is hierarchical, characterized by hubs that connect diverse industries in closely knitted communities. To account for the structure and evolution of innovation networks, the study proposes a preferential weight assignment process, allowing historical technological linkages and proximities to influence future outcomes. The empirical results show that the properties of the Swedish innovation network are strongly predicted by this process, while skill, knowledge and economic interdependencies have significant but more complex effects on link formation. The results are consistent with the idea that innovations emerge in synergistic communities, but suggest that the transformation of technological systems is shaped by technological requirements, imbalances, and opportunities that are not straightforwardly related to other economic or knowledge proximities.

Suggested Citation

  • Taalbi, Josef, 2020. "Evolution and structure of technological systems - An innovation output network," Research Policy, Elsevier, vol. 49(8).
  • Handle: RePEc:eee:respol:v:49:y:2020:i:8:s0048733320300895
    DOI: 10.1016/j.respol.2020.104010
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0048733320300895
    Download Restriction: Full text for ScienceDirect subscribers only

    File URL: https://libkey.io/10.1016/j.respol.2020.104010?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to look for a different version below or search for a different version of it.

    Other versions of this item:

    References listed on IDEAS

    as
    1. Romer, Paul M, 1986. "Increasing Returns and Long-run Growth," Journal of Political Economy, University of Chicago Press, vol. 94(5), pages 1002-1037, October.
    2. Marcel P. Timmer & Erik Dietzenbacher & Bart Los & Robert Stehrer & Gaaitzen J. Vries, 2015. "An Illustrated User Guide to the World Input–Output Database: the Case of Global Automotive Production," Review of International Economics, Wiley Blackwell, vol. 23(3), pages 575-605, August.
    3. Jeff Alstott & Giorgio Triulzi & Bowen Yan & Jianxi Luo, 2017. "Mapping technology space by normalizing patent networks," Scientometrics, Springer;Akadémiai Kiadó, vol. 110(1), pages 443-479, January.
    4. David, Paul A, 1990. "The Dynamo and the Computer: An Historical Perspective on the Modern Productivity Paradox," American Economic Review, American Economic Association, vol. 80(2), pages 355-361, May.
    5. Richard Arena & Pier Luigi Porta, 2012. "Structural change and economic dynamics," Post-Print halshs-00727175, HAL.
    6. Frank Neffke & Martin Henning & Ron Boschma, 2011. "How Do Regions Diversify over Time? Industry Relatedness and the Development of New Growth Paths in Regions," Economic Geography, Taylor & Francis Journals, vol. 87(3), pages 237-265, July.
    7. James G. March, 1991. "Exploration and Exploitation in Organizational Learning," Organization Science, INFORMS, vol. 2(1), pages 71-87, February.
    8. Ron Boschma & Koen Frenken, 2010. "The Spatial Evolution of Innovation Networks: A Proximity Perspective," Chapters, in: Ron Boschma & Ron Martin (ed.), The Handbook of Evolutionary Economic Geography, chapter 5, Edward Elgar Publishing.
    9. Carolina Castaldi & Koen Frenken & Bart Los, 2015. "Related Variety, Unrelated Variety and Technological Breakthroughs: An analysis of US State-Level Patenting," Regional Studies, Taylor & Francis Journals, vol. 49(5), pages 767-781, May.
    10. Josef Taalbi, 2019. "Origins and pathways of innovation in the third industrial revolution1," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 28(5), pages 1125-1148.
    11. Ron Boschma & Koen Frenken, 2015. "Evolutionary Economic Geography," Papers in Evolutionary Economic Geography (PEEG) 1518, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised May 2015.
    12. David Liben‐Nowell & Jon Kleinberg, 2007. "The link‐prediction problem for social networks," Journal of the American Society for Information Science and Technology, Association for Information Science & Technology, vol. 58(7), pages 1019-1031, May.
    13. Martin Fransman, 2001. "Analysing The Evolution Of Industry: The Relevance Of The Telecommunications Industry," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 10(2-3), pages 109-140.
    14. Arena,Richard & Porta,Pier Luigi (ed.), 2012. "Structural Dynamics and Economic Growth," Cambridge Books, Cambridge University Press, number 9781107015968, October.
    15. Carlsson, B & Stankiewicz, R, 1991. "On the Nature, Function and Composition of Technological Systems," Journal of Evolutionary Economics, Springer, vol. 1(2), pages 93-118, April.
    16. Nooteboom, Bart & Van Haverbeke, Wim & Duysters, Geert & Gilsing, Victor & van den Oord, Ad, 2007. "Optimal cognitive distance and absorptive capacity," Research Policy, Elsevier, vol. 36(7), pages 1016-1034, September.
    17. onder Nomaler & Bart Verspagen, 2008. "Knowledge Flows, Patent Citations and the Impact of Science on Technology," Economic Systems Research, Taylor & Francis Journals, vol. 20(4), pages 339-366.
    18. Scherer, F M, 1982. "Inter-Industry Technology Flows and Productivity Growth," The Review of Economics and Statistics, MIT Press, vol. 64(4), pages 627-634, November.
    19. Sandro Montresor & Giuseppe Vittucci Marzetti, 2008. "Innovation Clusters in Technological Systems: A Network Analysis of 15 OECD Countries for the Mid-1990s," Industry and Innovation, Taylor & Francis Journals, vol. 15(3), pages 321-346.
    20. Taalbi, Josef, 2017. "What drives innovation? Evidence from economic history," Research Policy, Elsevier, vol. 46(8), pages 1437-1453.
    21. Leoncini, R. & Maggioni, M. A. & Montresor, S., 1996. "Intersectoral innovation flows and national technological systems: network analysis for comparing Italy and Germany," Research Policy, Elsevier, vol. 25(3), pages 415-430, May.
    22. Pavitt, Keith, 1984. "Sectoral patterns of technical change: Towards a taxonomy and a theory," Research Policy, Elsevier, vol. 13(6), pages 343-373, December.
    23. Arthur, W. Brian, 2007. "The structure of invention," Research Policy, Elsevier, vol. 36(2), pages 274-287, March.
    24. Lipsey, Richard G. & Carlaw, Kenneth I. & Bekar, Clifford T., 2005. "Economic Transformations: General Purpose Technologies and Long-Term Economic Growth," OUP Catalogue, Oxford University Press, number 9780199290895.
    25. Sjöö, Karolin & Taalbi, Josef & Kander, Astrid & Ljungberg, Jonas, 2014. "SWINNO: A Database of Swedish Innovations, 1970-2007," Lund Papers in Economic History 133, Lund University, Department of Economic History.
    26. C. Jara-Figueroa & Bogang Jun & Edward Glaeser & Cesar Hidalgo, 2018. "The role of industry, occupation, and location specific knowledge in the survival of new firms," Papers 1808.01237, arXiv.org.
    27. de Bresson, Chris, 1991. "Technological Innovation and Long Wave Theory: Two Pieces of the Puzzle," Journal of Evolutionary Economics, Springer, vol. 1(4), pages 241-272, November.
    28. Hans van Meijl, 1997. "Measuring Intersectoral Spillovers: French Evidence," Economic Systems Research, Taylor & Francis Journals, vol. 9(1), pages 25-46.
    29. Bresnahan, Timothy, 2010. "General Purpose Technologies," Handbook of the Economics of Innovation, in: Bronwyn H. Hall & Nathan Rosenberg (ed.), Handbook of the Economics of Innovation, edition 1, volume 2, chapter 0, pages 761-791, Elsevier.
    30. Bart Verspagen, 1997. "Measuring Intersectoral Technology Spillovers: Estimates from the European and US Patent Office Databases," Economic Systems Research, Taylor & Francis Journals, vol. 9(1), pages 47-65.
    31. James P. Bagrow & Jie Sun & Daniel ben-Avraham, 2007. "Phase transition in the rich-get-richer mechanism due to finite-size effects," Papers 0712.2220, arXiv.org, revised May 2008.
    32. Geels, Frank W., 2002. "Technological transitions as evolutionary reconfiguration processes: a multi-level perspective and a case-study," Research Policy, Elsevier, vol. 31(8-9), pages 1257-1274, December.
    33. David, Paul A, 1985. "Clio and the Economics of QWERTY," American Economic Review, American Economic Association, vol. 75(2), pages 332-337, May.
    34. Brian Arthur, W. & Ermoliev, Yu. M. & Kaniovski, Yu. M., 1987. "Path-dependent processes and the emergence of macro-structure," European Journal of Operational Research, Elsevier, vol. 30(3), pages 294-303, June.
    35. Ron Boschma, 2005. "Proximity and Innovation: A Critical Assessment," Regional Studies, Taylor & Francis Journals, vol. 39(1), pages 61-74.
    36. Leo Katz, 1953. "A new status index derived from sociometric analysis," Psychometrika, Springer;The Psychometric Society, vol. 18(1), pages 39-43, March.
    37. Jeff Alstott & Ed Bullmore & Dietmar Plenz, 2014. "powerlaw: A Python Package for Analysis of Heavy-Tailed Distributions," PLOS ONE, Public Library of Science, vol. 9(1), pages 1-11, January.
    38. Tom Broekel, 2015. "The Co-evolution of Proximities - A Network Level Study," Regional Studies, Taylor & Francis Journals, vol. 49(6), pages 921-935, June.
    39. de Bresson, Christian & Townsend, Joe, 1978. "Notes on the inter-industrial flow of technology in post-war Britain," Research Policy, Elsevier, vol. 7(1), pages 49-60, January.
    40. Robson, M. & Townsend, J. & Pavitt, K., 1988. "Sectoral patterns of production and use of innovations in the UK: 1945-1983," Research Policy, Elsevier, vol. 17(1), pages 1-14, February.
    41. Sandro Montresor & Giuseppe Vittucci Marzetti, 2009. "APPLYING SOCIAL NETWORK ANALYSIS TO INPUT-OUTPUT BASED INNOVATION MATRICES: AN ILLUSTRATIVE APPLICATION TO SIX OECD TECHNOLOGICAL SYSTEMS FOR THE MIDDLE 1990s," Economic Systems Research, Taylor & Francis Journals, vol. 21(2), pages 129-149.
    42. Hauknes, Johan & Knell, Mark, 2009. "Embodied knowledge and sectoral linkages: An input-output approach to the interaction of high- and low-tech industries," Research Policy, Elsevier, vol. 38(3), pages 459-469, April.
    43. Rosenberg, Nathan, 1969. "The Direction of Technological Change: Inducement Mechanisms and Focusing Devices," Economic Development and Cultural Change, University of Chicago Press, vol. 18(1), pages 1-24, Part I Oc.
    44. repec:nas:journl:v:115:y:2018:p:12646-12653 is not listed on IDEAS
    45. Riccardo Leoncini & Sandro Montresor, 2003. "Technological Systems and Intersectoral Innovation Flows," Books, Edward Elgar Publishing, number 2402.
    46. Josef Taalbi, 2017. "Development blocks in innovation networks," Journal of Evolutionary Economics, Springer, vol. 27(3), pages 461-501, July.
    47. Christian DeBresson, 1996. "Economic Interdependence and Innovative Activity," Books, Edward Elgar Publishing, number 870.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Campiglio, Emanuele & Dietz, Simon & Venmans, Frank, 2022. "Optimal climate policy as if the transition matters," LSE Research Online Documents on Economics 117610, London School of Economics and Political Science, LSE Library.
    2. Nicolo Barbieri & Alberto Marzucchi & Ugo Rizzo, 2021. "Green technologies, complementarities, and policy," SPRU Working Paper Series 2021-08, SPRU - Science Policy Research Unit, University of Sussex Business School.
    3. De Luca, Gabriele, 2021. "The development of machine intelligence in a computational universe," Technology in Society, Elsevier, vol. 65(C).
    4. Anton Pichler & Franc{c}ois Lafond & J. Doyne Farmer, 2020. "Technological interdependencies predict innovation dynamics," Papers 2003.00580, arXiv.org.
    5. Cresti, Lorenzo & Dosi, Giovanni & Fagiolo, Giorgio, 2023. "Technological interdependencies and employment changes in European industries," Structural Change and Economic Dynamics, Elsevier, vol. 64(C), pages 41-57.
    6. Barbieri, Nicolò & Marzucchi, Alberto & Rizzo, Ugo, 2023. "Green technologies, interdependencies, and policy," Journal of Environmental Economics and Management, Elsevier, vol. 118(C).
    7. Hötte, Kerstin, 2023. "Demand-pull, technology-push, and the direction of technological change," Research Policy, Elsevier, vol. 52(5).
    8. A. Fronzetti Colladon & B. Guardabascio & F. Venturini, 2023. "A new mapping of technological interdependence," Papers 2308.00014, arXiv.org, revised Sep 2024.
    9. Mendonça, Sandro & Damásio, Bruno & Charlita de Freitas, Luciano & Oliveira, Luís & Cichy, Marcin & Nicita, António, 2022. "The rise of 5G technologies and systems: A quantitative analysis of knowledge production," Telecommunications Policy, Elsevier, vol. 46(4).
    10. Thorsten Lammers & Dilek Cetindamar & Maren Borkert, 2021. "A Digital Tale of Two Cities—Observing the Dynamics of the Artificial Intelligence Ecosystems in Berlin and Sydney," Sustainability, MDPI, vol. 13(19), pages 1-19, September.
    11. Fabrizio Fusillo & Sandro Montresor & Giuseppe Vittucci Marzetti, 2021. "The global network of embodied R&D flows," Discussion Paper series in Regional Science & Economic Geography 2021-05, Gran Sasso Science Institute, Social Sciences, revised Apr 2021.
    12. Lorenzo Cresti & Maria Enrica Virgillito, 2023. "Weak sectors and weak ties? Labour dependence and asymmetric positioning in GVCs," LEM Papers Series 2023/10, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Josef Taalbi, 2017. "Development blocks in innovation networks," Journal of Evolutionary Economics, Springer, vol. 27(3), pages 461-501, July.
    2. Taalbi, Josef, 2015. "Development Blocks in Innovation Networks. The Swedish Manufacturing Industry, 1970-2007," MPRA Paper 64549, University Library of Munich, Germany, revised 23 May 2015.
    3. Josef Taalbi, 2019. "Origins and pathways of innovation in the third industrial revolution1," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 28(5), pages 1125-1148.
    4. Taalbi, Josef, 2017. "What drives innovation? Evidence from economic history," Research Policy, Elsevier, vol. 46(8), pages 1437-1453.
    5. Cresti, Lorenzo & Dosi, Giovanni & Fagiolo, Giorgio, 2023. "Technological interdependencies and employment changes in European industries," Structural Change and Economic Dynamics, Elsevier, vol. 64(C), pages 41-57.
    6. Taalbi, Josef, 2017. "Origins and Pathways of Innovation in the Third Industrial Revolution: Sweden, 1950-2013," Lund Papers in Economic History 159, Lund University, Department of Economic History.
    7. Taalbi, Josef, 2019. "Innovation waves and technological transitions: Sweden, 1909-2016," Lund Papers in Economic History 196, Lund University, Department of Economic History.
    8. Corradini, Carlo & De Propris, Lisa, 2017. "Beyond local search: Bridging platforms and inter-sectoral technological integration," Research Policy, Elsevier, vol. 46(1), pages 196-206.
    9. Fabrizio Fusillo & Sandro Montresor & Giuseppe Vittucci Marzetti, 2021. "The global network of embodied R&D flows," Discussion Paper series in Regional Science & Economic Geography 2021-05, Gran Sasso Science Institute, Social Sciences, revised Apr 2021.
    10. Lars Coenen & Bjørn Asheim & Markus M Bugge & Sverre J Herstad, 2017. "Advancing regional innovation systems: What does evolutionary economic geography bring to the policy table?," Environment and Planning C, , vol. 35(4), pages 600-620, June.
    11. Dosi, Giovanni & Nelson, Richard R., 2010. "Technical Change and Industrial Dynamics as Evolutionary Processes," Handbook of the Economics of Innovation, in: Bronwyn H. Hall & Nathan Rosenberg (ed.), Handbook of the Economics of Innovation, edition 1, volume 1, chapter 0, pages 51-127, Elsevier.
    12. Daria Ciriaci & Sandro Montresor & Daniela Palma, 2013. "Do KIBS make manufacturing more innovative? An empirical investigation for four European countries," JRC Working Papers on Corporate R&D and Innovation 2013-04, Joint Research Centre.
    13. Matthias Firgo & Peter Mayerhofer, 2015. "Wissens-Spillovers und regionale Entwicklung - welche strukturpolitische Ausrichtung optimiert des Wachstum?," Working Paper Reihe der AK Wien - Materialien zu Wirtschaft und Gesellschaft 144, Kammer für Arbeiter und Angestellte für Wien, Abteilung Wirtschaftswissenschaft und Statistik.
    14. Stefano Basilico & Holger Graf, 2023. "Bridging technologies in the regional knowledge space: measurement and evolution," Journal of Evolutionary Economics, Springer, vol. 33(4), pages 1085-1124, September.
    15. Matthias Firgo & Peter Mayerhofer, 2015. "Wissensintensive Unternehmensdienste, Wissens-Spillovers und regionales Wachstum. Teilprojekt 1: Wissens-Spillovers und regionale Entwicklung – Welche strukturpolitische Ausrichtung optimiert das Wach," WIFO Studies, WIFO, number 58342, April.
    16. Apa, Roberta & De Noni, Ivan & Orsi, Luigi & Sedita, Silvia Rita, 2018. "Knowledge space oddity: How to increase the intensity and relevance of the technological progress of European regions," Research Policy, Elsevier, vol. 47(9), pages 1700-1712.
    17. Rakas, Marija & Hain, Daniel S., 2019. "The state of innovation system research: What happens beneath the surface?," Research Policy, Elsevier, vol. 48(9), pages 1-1.
    18. Mikhail Martynovich & Josef Taalbi, 2020. "Related variety, recombinant knowledge and regional innovation. Evidence for Sweden, 1991-2010," Papers in Evolutionary Economic Geography (PEEG) 2015, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Mar 2020.
    19. Lopolito, Antonio & Falcone, Pasquale Marcello & Sica, Edgardo, 2022. "The role of proximity in sustainability transitions: A technological niche evolution analysis," Research Policy, Elsevier, vol. 51(3).
    20. William Arant & Dirk Fornahl & Nils Grashof & Kolja Hesse & Cathrin Söllner, 2019. "University-industry collaborations—The key to radical innovations? [Universität-Industrie-Kooperationen – Der Schlüssel zu radikalen Innovationen?]," Review of Regional Research: Jahrbuch für Regionalwissenschaft, Springer;Gesellschaft für Regionalforschung (GfR), vol. 39(2), pages 119-141, October.

    More about this item

    Keywords

    Innovation; Network evolution; Technological systems; Preferential attachment; Relatedness;
    All these keywords.

    JEL classification:

    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • D85 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Network Formation
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:respol:v:49:y:2020:i:8:s0048733320300895. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/respol .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.