Technology Choices For Sustainable Industrial Production: Transitions In Metal Making

Many firms have been taking up the environmental challenge, primarily by implementing incremental technological changes in their production systems. We believe that incremental innovations are no longer enough. Instead, radical innovations in industrial production are necessary for achieving high-level sustainability goals. Accordingly, the aim of this paper is to assess how industrial production can be managed towards sustainability goals, by focusing on technological innovations of large-scale, process-oriented firms. We focus on technology choice processes at the micro level that lead to innovations in the metals production industry. Insights into these choice processes could inform policy for promoting more sustainable industrial production.We first conceptualise "incremental" and "radical" innovations according to a technological criterion. Next, a systems-network conceptual framework is presented and applied to the analysis of technology choice processes within two steel producing firms. We argue that the awareness of a crisis, due to increased external pressures upon the production system, is a necessary (but not sufficient) condition for radical innovations to be developed and implemented. Furthermore, the availability of a mature firm-internal technology network is a necessary (but not always sufficient) condition for the development of radical innovations. Heterogeneous, informal interactions with firm-external actors are also important. A high degree of technical or organisational embeddedness of the industrial production system seems to complicate the implementation of radical innovations. These options are often implemented when firms are growing.The empirical studies and conceptual framework generate conclusions about policy interventions aimed at transition to radical innovations. These interventions should be focused on the sensitivity of large firms to external pressure. In addition, more outsiders should be enrolled in the technology networks within firms. Further, the firm management should reinforce existing, firm-internal technology networks by including a high density of heterogeneous specialists. Finally, governments should tune their technology policy on business expanding programs.