linking technologies and ions the iunnovation community framework

8/4/2019 Linking Technologies and ions the Iunnovation Community Framework

1/16

ELSEVIER Research Policy~_5 (1996) 91-106

Linking tech no logy and institutions:the innovat ion community frameworkL e o n a r d H . L y n n * , N . M o h a n R e d d y , J o h n D . A r a m

Weatherhead School of M anagement, C ase Western Reserve University, Cleveland, Ohio 44106, USAFnal version received December 1994

AbstractThe technological innovation and diffusion literatures consistently suggest the importance of the institutionalenvironment, including non-market as well as market organizations and relationships, in the commercialization ofinnovation. There is, however, no general framework for studying the relevant organizations and relationsh/~ as astructured system. This paper draw; on organizational ecology to develop such a framework, 'the innovationcommunity'. The paper then suggests how the new framework could be employed in guiding research and indeveloping a general institutional theory of technology commercialization.Two major streams of research, primarily de-veloped by economists, have enriched our under-standing of the processes of technology commer-cialization. One stream has sought to identify theindustry structures and firm characteristics mostconducive to the commercial introduction of newtechnology by individual fit~as. This approachsuggests, for example, that innovation has aninverted U-shaped relationship with firm size andindustry concentration (see Cohen and Levin,1988; Kamien and Schwarz, 1981, comprehensivereviews). The other stream has focused on thediffusion of new technology, emphasizing the pro-cesses by which use of specific 'innovations'spreads through an industry. This research hashelped us understand some of the factors influ-encing the speed wRh which a technology comesinto widespread use.

* Corresponding author. Tel: (216) 368-6048.

While b3th streams of research have con-tributed to our understanding, both have beenwidely criticized. Dosi and Orsenigo (1988), forexample, criticize the industry structure approachfor using too narrow a characterization of indus-try structure. They point to the importance ofsuch additional variables as accumulated techno-logical capabilities, production technologies,firms' R&D strategies and organizational struc-tures. Diffusion research has been criticized forneglecting the fact that innovations are typicallyimproved as they are used and processes of im-provenlent interact with the process of diffusion(Gold, 1981; Rosenberg, 1979); for assuming astatic environment (Gold, 1981; Zuscovitch, 1986);for inadequately appreciating the ' systems' natureof most technological innovations (Freeman, 1988;Rosenberg, 1979); for ignoring inter-industry re-lationships (Mowery and Rosenberg, 1979, 198~Rosenberg, 1979); and for viewing technologicalinnovation as a simple reaction to 'demand"(Dosi, 1982; Mowery and Rosenberg, 1979).0048-7333/96/$15.00 1996 Elsevier Science B.V. A!i rights reservedS S D I 0048-7333(94)00817-5


2/16

T h u s , b o t h a p p r o a c h e s a r e f a u l t e d f o r t a k i n gt o o l i m i t e d a v i e w o f t h e i n s t it u t i on a l e n v i r o n -m e r i t i n w h ~ h i n n o va t i o n o c c u r s a n d f o r f ai l in g t oi n c o r po r a t e d y n a m i c a n d i n t e r a c t i ve p r o c e s s e s .S e ve r a l t h e o r i s t s h a ve c a l l e d f o r a r i c h e r , m o r ei n t e r a c t i ve pa r a d i gm ( e . g . D o s i , 1982 ; M o w e r ya n d Ro s e n be r g , 1979 ; N e l s o n a n d W i n t e r , 1982 ;Savio t t i and Metca l fe , 1991) . These theor i s t s a rem o r e e xp l ic i tl y c o n c e r n e d w i t h t h e e vo l u t i o n o ftechno logy , spec i f i ca l ly wi th how th e ins t i tu t iona le n v i r o n m e n t m a y s h a p e t h e p r o c e s s o f t ec h n o lo g -i c a l e vo l u t i o n a n d h o w t h e r e s u l t i n g p r o c e s s e s o ft e c h n o l o g i c al c h a n ge m a y r e s h a pe t h e i n s t i tu -t i o n a l e n v i r o n m e n t . T h e y h a v e d e v e l o p e J c o n -c e p t s va r i o us l y l a be l e d a s t e c h n o l o g i c a l pa r a d i gm s(Dos i , 1982) t echno logica l gu idepos t s (Saha l ,1985 ), n e w t e c h n i c a l s y s t e m s a n d t e c h n o - e c o -n o m i c pa r a d i gm s ( F r e e m a n , 1988 ), a n d d e ve l o p -m e n t b l o c ks (C a r l s s o n a n d S t a n k ie w i c z , 1991 ;D a h m e n , 1989 ) .

T h e s e c o n c e p t s c o n s t r ue t e c h n o l o g i c a l b r e a k -t h r o u g h s a s a b r o a d s e t o f p r o c e d u r e s a n d s o lu -t io u s a i m e d a t a n a r r a y o f re l a t e d p r o b l e m s . T h en o t i o n o f i n v e n t i o n - i n n o v a t i o n - d i f fu s i o n a s as t e pw i s e p r o c e s s i s re j e c t e d . T e c h n i c a l a d v a n c e i ss e e n a s o f t e n r e s u l t i n g f r o m t h e c um ul a t i ve i m -p a c t o f s m a ll i m p r o v e m e n t s w h e r e i n n o v a t io n a n dd i ~ us i o n a r e i n t e r a c ti ve s t a ge s in t h e h i s t o ry o f at e c h n o l o gy ( N e l s o n a n d Ro s e n be r g , 1993 ; Ro s e n -be r g , 1976 , 1979 ) . I n a ' b r e a k t h r o ugh s a n d ba r r i -e r s ' m o d e l , A y r e s ( 1988 ) n o t e s t h a t c um ul a t i vei m p r o ve m e n t s in a t e c h n o l o gy l e a d t o a c l u s t e ri n go r bun c h i n g o f i n n o va t i o n s . S i m i l a r n o t i o n s o fi n t e r d e p e n d e n t o r s y s te m s i n no v a ti o ns h a v e b e e na d va n c e d by R o ge r s ( 1983) , Re s e n b e r g ( 1976 ),M e n s c h ( 1979), a n d T e e c c ( 1984 ), a m o n g o t h e r s .T h e s y s t e m s n a t u r e o f t e c h n o lo g i c a l i n n o va t io ni m p l i e s t h a t t h e s uc c e s s f u l c o m m e r c i a l i z a t i o n o fa n i n n o v a t io n m a y r e q u i r e t h e d e v e l o p m e n t o fo n e o r m o r e o t h e r i n n o va t i o n s . T h i s n o t i o n l e dRo s e n be r g ( 1979 ) t o a r gue t h a t i n t e r l o c k i n g , m u-t ua l l y r e i n f o r c i n g t e c h n o l o g i e s d e pe n d upo n i n -t e r - i n d us t r y r e l a t i o n s h i p s . B r o a d e n i n g t h e s c o peo f i n t e r e s t i n d i f f u s i o n t o t h e va r i o us a c t o r s t h a to f f e r t h e a r r a y o f c o m p o n e n t s a n d s e rv i c es n e e d e di n c r e a t in g a n e w t e c h n o l o gy r e p r e s e n t s m o v e -m e n t t o w a r d t h e m o r e c o m p r e h e n s iv e i de a o f a n' i n n o v a t io n c o m m u n i t y '.

L H . Lynn e t a l . /Res earc h Pol icy 25 (1996) 91-106E v o l u t i o n a r y m o d e l s h a v e b r o u g h t a b o u t a ni n t e g r a t i o n o f t h e i n n o va t i o n - d i f f u s i o n c o n t i n -

u u m a n d e x p a n d e d o n t h e d i c h o t o m o u s vi ew s o fi n n o va t i o n t h a t h a ve d o m i n a t e d t h e f i e l d , e . g .c o m p e t e n c e e n h a n c i n g v e r s u s c o m p e t e n c e d e -s t r oy i n g ( A b e r n a t h y a n d C l a r k , 1985 ; T u s h m a na n d A n d e r s o n , 1986 ); a r c h it e c t u r a l ve r s us c o m po -n e n t ( H e n d e r s o n , 1993 ; H e n d e r s o n a n d C l a r k .1990) ; bas ic ve rsus im pro vem ent (Men sch , 1979) ;a n d p r o d u c t v e r s u s p r o c e s s ( A b e r n a t b y a n d U t -t e r ba c k , 1978 ) . T h e y h a ve a l s o g r a d ua l l y e x -pa n d e d t h e a w a r e n e s s o f th e i n s t i tu t i o n a l d o m a i nt h a t i n f l ue n c e s t h e d e ve l o pm e n t a n d p r o pa ga t i o no f t e c h n o l o gy ( D o s i , 19 82 ; N e l s o n a n d W i n t e r ,1977, 1982 ; Te ece , 1986; Zuscovi tch , 1986) .

T h e a u t h o r s o f t h i s pa pe r be l i e ve , h o w e ve r ,t h a t a n a pp r o a c h i s n e e d e d t h a t i s s t i l l m o r ec o m pr e h e n s i ve a n d e xp l i c i t l y i n s t i t u t i o n a l t h a ne i t h e r t h e t e c h n o lo g i c a l s y s t e m s o r t e c h n o l o gye vo l u t i o n f r a m e w o r ks . T h e n e x t t w o s e c t i o n s r e -v i e w a bo d y o f l i t e r a t u r e by e c o n o m i s t s , h i s t o r ia n sof t echno logy , soc io logis ts and o th e r , :~c ia l s c ien -t is t s th a t p o i n t s t o t h e i m po r t a n c e o f p r o c e s s e sa n d s t r uc t u r e s n o t y e t a c c o un t e d f o r i n t h e o r y n o rs ub j e c t e d t o s y s t e m a t i c r e s e a r c h i n un d e r s t a n d i n gt h e c o u r s e o f t e c h n o l o g ic a l in n o va t io n . T h e p a p e rt h e n be g i n s t ! , e d e ve l o pm e n t o f a n e w i n s t i t u -t i o n a l a pp r o a c h m a k i n g u s e o f ~ h e ' i n n o va t i o nc o m m un i t y ' f r a m e w o r k . V a r i a b l e s c r uc i a l t o t h i sa pp r o a c h a r e o u t l i n e d .

T h e p r o p o s e d n e w f r a m e w o r k is i n t e n d e d t oh e l p r e s e a r c h e r s i d e n ti f y d i m e n s i o n s o f t h e i n s t i-t u t i o n a l e n v i r o n m e n t t h a t s h o u l d be s pe c i a l t a r -ge t s o f r e s e a r c h . I t s ugge s t s a n a pp r o a c h t o e x -~ l e r i n g t h e l i n ka ge s be t w e e n t h e s e o r ga n i z a t i o n sa n d i t po i n t s t o h y po t h e s e s o f i n t e r e s t t o bo t ht h e o r i st s a n d po l i c y m a ke r s . T h e p r o p o s e d f r a m e -w o r k i s o f f e r e d i n t h e s p i r i t o f B a c o n ' s t h o ugh tt h a t " T r u t h e m e r g e s m o r e r e ad i ly fr o m e r r o rthan confus ion" (c i t ed in Kuhn , 1970 p . 18) .

1 . Market and Non-market re la t ionsh ipsT h e n e o c l a s s i c a l e c o n o m i c f r a m e w o r k f o r t h ea n a ly s is o f i n n o va t io n h a s b e e n f a u l t e d by i n s t i tu -t i o n a l e c o n o m i s t s f o r be i n g s o e xc l u si ve ly ba s e do n a t h e o r y o f m a r ke t s t h a t i t h a s l i t t l e t o s a y


3/16

I . .H. Lynn et a l . /Re sear ch Pol icy 25 (1996) 91-10 6 93about the ins t i tu t iona l s t ruc tures tha t in f luencei n n ova t ive pe r f o r m a n ce ( M o w e r y a n d R o s e n be r g ,1989) . Ins t i tu t iona l economis t s have sough t toovercome th i s l imi ta t ion by incorpora t ing non-marke t r e l a t ionsh ips wi th in the i r f r ameworks .Wil l iamson (1975, 1981, 1985) , for e~ample,d e m o n s t r a t e s h o w t r a n s a c t i o n co s t e co n o m i z i n gleads to the o rgan iza t ion o f econo mic ac tivi twes byh i e r a r ch y w h e n t r a ns a c t i o n s a r e f r e que n t , i n f o r -mat ion i s a symmet r i ca l , and as se t speci f i c i ty g ivesr i s e t o o ppo r t un i s m . Te e ce ( 1986) a pp l i e s t h et r a n s a c ti o n co s t f r a m e w o r k t o t e ch n o l o gy d i f fu -s ion wi th in producer and d i s t r ibuto r indus t r i e s .Th e d i f f i cu l t i e s o f a pp r o p r i a t i n g t h e be n e f i t s o finnova t ion mak e opp or tun i s t i c s e l f -dea l ing a spe -c i a l p r o b l e m . Te e ce d o cum e n t s i n s t a n ce s w h e r ei n n o va to r s f a i le d t o r e ce i ve th e e co n o m i c be n e f i tso f a n i n n o va t i o n be ca us e t h e y co u l d n o t ga i nco n t r o l o f ve r t i ca l co m pl e m e n t a r y a s s et s ( V CA s ) ,such as manufactur ing f ac i l i t i e s , d i s t r ibut ionchanne l s , and se rv ice capabi l i ti e s .A cco r d i n g t o Te e ce , a n i n n o va t o r ca n pu r -ch a s e V CA s , co n t r a c t f o r t h e m t h r o ugh a co n -t r a c t i n g a r r a n ge m e n t s uch a s l i ce n s i n g , o r d e -ve l o p t h e m i n - h o us e . I f t h e i n n o va t o r ' s t e ch n o l -ogy i s t i gh t ly appropr iable ( i . e . i t i s pro tec ted byi ron-c lad pa ten t s , s ecure in -house know-how, o rt rade secre t s ) , l i cens ing o r pa r tne r ing reducesca p i ~ I r e qu i r e m e n t s a n d r i s k s w h i l e p r o t e c t i n gthe ~ '~movator 's income s t ream. Innov a to rs w i thw e a k l y p r o t e c t e d t e ch n o l o g i e s w o u l d i d e al ly s e e kt o m a n a ge i n t e g r a t i o n i n o r d e r t o p r o t e c t t h e m -s e lve s fr o m i m i t a to r s a n d t o a vo i d be i n g ' h e l d u p 'by o w n e r s o f s pe c i a l ize d V CA s . Th e f e as i b il it y o ft h is s t r a te gy , h o w e ve r, m a y d e pe n d o n t h e i n ves t -m e n t r e qu i r e d t o i n t e g r a t e f o r w a r d , t h e t i m e r e -qu i r e d t o ga i n m a r ke t po s i t i o n r e l a t i ve t o co m -pe t i to r s , a n d t h e c r i t ica l it y o f t h e V C A t o t h es ucce s s o f t h e i n n ova t io n . Fo r e xa m p l e , fo r w a r din tegra t ion i s l ike ly on ly whe re appro pr iabi l i ty i sweakly pro tec ted , specia l i zed VCAs a re cr i t i ca l ,the f i rm ' s cash pos i t ion i s s t rong, and the f i rm i spo s i t i o n e d f a vo r ab l y w i t h r e s pe c t t o co m p e t i to r sand imi ta to r s . Otherwise , the innov a to r wi ll con-t rac t out fo r access to VCAs , a t t imes wi th l i t t l ebarga in ing power .W i l l i a m s o n ( ! 991 ) a l ~ a d d r e s s e s w e a k a pp r o -pr i abi l ity o r ' l ea kag e ' in re l a t ion to hy br id gover -

nance s t ruc tures , such as f ranch i s ing , long- te rmco n t r a c ti n g , o r r e c i p ro ca l t ra d i n g . So m e j o i m ve n -t u r e a r r a n ge m e n t s m i gh t be d e ~ ' r i be d a s h y b r i ds t ruc tures . Wi l l i amson pred ic t s tha t hybr id s t ruc-t u r e s w ill be p r e s e n t w h e r e a m o d e r a t e d e g r e e o fasset speci f ici ty exis ts. Hy brid s t ru ctu res wi l l l iei n a n i n t e r m e d i a t e po s i ti o n be t w e e n m a r ke t s a n db i e r a r ch i e s i n t e r m s o f t h e s t r e n g t h o f pe r f o r -mance inven t ives , admin i s t ra t ive sys tems , l ega lregimes , and adapta t ion processes . I t i st o c l as s if y a l a r ge n u m b e r o f d i f f e re n t w a d o fo r ga n i z in g t ra n s a c t i o n s be t w e e n t h e e x t r e m e s o fpu r e m a r k e t a n d pu r e h i e r a r ch y ba s e d o n d i f f e r -ing cond i t ions o f paym ent , dura t ion , de l ive ry , am tequi ty s t akes (Macne i l , 1981) . Wi th respect tot e ch n o l o gy , W i l l i a m s o n s t a t e s t h a t w e a k a pp r o -pr i abi l ity increases the a t t r ac t iveness o f h ie ra rchyo ve r m a r ke t a n d h y br i d s t r uc tu r e s .Wi l l i amson (1991) a l so no tes tha t r eputa t ione f f e c t s m a y i n f l ue n ce t h e s t r uc t u r e s t h a t o r g a n i zeeconomic t r ansact ions . Hybr id o rgan iza t ions a rem o r e vu l n e r a b l e t o o ppo r t un i s m t h a n a r e t h eh i e ra r ch i ca l un d e r co n d i t io n s o f i n t e r m e d i a t e a s -se t speci f i c ity , becau se hy br id o rgan iza t ions havew e a ke r co n t r o l m e ch a n is m s t h a n h i e ra r ch ie s . Bu tw h e r e r e pu t a t i o n s a r e qu i ck ly a n d a ccu r a t e l yco m m un i ca t e d w i t h in a g r o up o f t r a d e r s , t h e r i s ko f o ppo r t un i s m i s r e d uce d . A s a r e s u l t , im pr o ve -m e n t i n i n t e r - fi r m r e pu t a t i o n e f f e c t s w ill r e d u cethe cos t o f hybr id con t rac t ing . Thus , s e t t ings inw h i ch t r u s t i s p r e s e n t ( d ue t o s t r o n g r e pu t a t i o nef fec t s ) increase the a t t r ac t iveness o f hybr id o rga-n iza t ions . Wi l l i amson (1991, p . 291) concludes :" H y br i d co n t r a c t i n g w i l l t h e r e f o r e i n c r e a s e , i nre la t ion to h ie ra rchy , in regimes where in te r f i rmr e pu t a t i o n e f f e c t s a r e m o r e h i ghl y pe r f e c t e d , ce -t e r is pa r i bus . " T h i s po i n t i s co n s i s t e n t w i t h m a n yof the d i scuss ions o f the e f f ec t iveness o f indus -t r ia l g r o ups i n Ja pa n , G e r m a n y , Sw e d e n a n d e l s e-where ( e .g . Bo l ton e t a l . , 1989, Ger lach , 1992;Imai , 1992a, 1992b; Kester , 1992; Sahel , 1987) .Th e i n co r po r a t io n o f n o r i - m a r ke t r el a ti o n s h i psth rough t ransact ion cos t ana lys i s by ins t i tu t iona le co n o m i s t s r e p r e s e n t s a co n s i d e r a b l e a d va n ceover neoclas s i ca l economics . S tud ies o f the comomercia f i za t ion o f t echno logy , however , r a i se i s -s ue s t h a t go be y o n d t r a n s a c ti o n e co n o m i z i n g . A sGranove t t e r (1985) obse rves , economic re l a t ion-


4/16

94 L .H . Lyn n et a l . /Res earc h Pol icy 25 (1996) 91-106ships are embedded in social and cultural valuesthat affect the functioning of markets. Embed-dedness implies more than an efficient market forreputations. Dote (1986), Kester (1992), and oth-era, for example, have examined the values un-derlying the Japanese socioeconomic system inemployment practices and multifaceted inter-organizationa! relationships that can be influen-tial in technology development and diff,Js~on.In his study of the Italian ceramic tile industry,R,,~_~.. (!9~) argues that a geographical area oran "industrial d/stric t' is the proper unit of analy-sis for understanding technical change and insti-tutional structure. The industrial district is cen-tered on a set o f closely related firms from differ-ent industries which function as a unit and whichhave greater stability than individual firms orindustries. While some firms within these groupsare linked by hybrid structures, the concepts of'industrial district' and 'group' transcend the fo-cus on bilateral economic transactions. An insti-tutional analysis of technological change requiresattention to a number of organizations outsidevertical channel relationships. Non-market orga-nizations such as trade unions and regional tri-bunals have important impacts. And even amongstthe business organizations in the group, techno-logical change in the production of ceramic tileswas brought about through a complex of activitiesby large manufacturers of presses, specializedtechnical and design centers, engineering artisansand small engineering firms that built machinesor machine parts, and factories that producedglazes. Flows of information about the experi-ments and activities of various actors appeared tobe critical to the coordination of these diverseactivities.The focus on channel relationships and onhybrid organ/zations by institutional economistsseems to best explain specific governance struc-tures where innovat;on plays only a minor role. Inthis framework, inno, ~tion is treated as a randomoccurrence external to the firm which simply callsfor organizational response or adaptation. Littleattention is paid to structures and institutionalarrangements that lead to a higher or lower rateof innovation, to the paths of innovation diffu-sion, or to the different types of innovation and

their organizational consequences. Other than le-gal doctrines that support property rights andtechnological appropriability, institutional eco-nomics still overlooks the influence of institutionson innovation in areas that transcend the imme-diate economic transaction. Further, it does noteffectively incorporate non-economic organiza-tions.2. Coordinating organizations

One important function in the commercializa-tion o f innovation is the coordination of activities,functions, roles, and contributions. This functionis often performed through organizations or rela-tionships that seem to have more of the charac-teristics o f a complex field of many actors ratherthan the bilateral relationship depicted in trans-action cost analysis. Many of the actors are notengaged in economic exchange at all. Walton's(1987) study of the implementation of work inno-vations in the maritime shipping industries ofeight countries, for example, shows how govern-ment, industry, and union organizations actedvariously to facilitate or to hinder the implemen-tation of productivity-enhancing workplacechanges in different countries. High innovationcountries (Norway, Holland, Japan) and moder-ate innovation countries (the U.K., Sweden, WestGermany) used tripartite forums, third party fa-cilitators, and a spirit o f mutuality in planningand implementing changes. Low innovation coun-tries (Denmark, the U.S.) did not use these mech-anisms. Walton coins the term 'metacompetence'to suggest the ability of the relevant decision-makers to restructure the forces, motives, andassumptions affecting behavior across institutionsto facilitate innovation.

At one level coordination simply implies anefficient flow of information. Carlsson and hiscolleagues attribute Sweden's success in attaininga very high level of automation to the effective-ness of 'bridging' institutions that facilitate suchflows (Carlsson, 1993; Carlsson and Stankiewicz,1991).The case of the Bessemer steelmaking processgives a dramatic example of the importance ofsuch bridging (Morison, 1966). William Kelly, an


5/16

L.H. Lynn et aL /Res earch Policy 25 (1996) 91-1 06 5A m e r i c a n i r o n - k e t t l e m a k e r , d i s c o v e r e d t h epn e u m a t i c s t e e l m a k i n g c o n c e p t i n 1847 a n dqu i c k ly be ga n w o r k t o d e ve l o p a n e w s t e e l m a k l n gp r o c e s s ba s e d o n i t . H e n r y B e s s e m e r , i n E n g l a n d ,m a d e a pa r a l l e l d i s c o ve r y s o m e e i gh t y e a r s l a te r ,a t w h i c h t i m e h e a l s o be ga n d e ve l o pm e n t a l w o r k .B o t h K e l ly a n d B e s s e m e r bu il t e xpe r i m e n t a lpn e u m a t i c c o n ve r t e r s . K e l ly , h ow e ve r , w a s un a b l et o ge t s u f f i c ie n t h e l p f r o m s k i ll e d e xpe r t s t o c o m -m e r c i a l i z e t h e t e c h n o l o gy . H e s pe n t s e ve n o re i gh t f ~ u it le s s y e a r s i n t h e a t t e m p t . B e s s e m e r w a sm o r e f o r t un a t e . I n 1856 , o n l y a y e a r a f t e r h e h a dbe gu n h i s e xpe r i m e n t s , h e s h o w e d a p i e c e o f s t e e lm a d e ~ t h h i s e xpe r i m e n t a l c o n ve r t e r t o t h ec h a i r m a n o f t h e m e c h a n i c a l s e c t i o n o f t h e B r i t is hA s s o c i a t i o n f o r t h e A d v a n c e m e n t o f S c i e n c e( B A A S ) . T h i s l e d , i n A ugus t o f t h a t y e a r , t o ap r e s e n t a t i o n o n t h e n e w s t e e l m a k i n g p r o c e s s t ot h e B A A S . B r i t i sh t r a d e a n d p r o f e s s i o n a l j o u r -n a ls g a v e c o m p r e h e n s i v e a n d a c c u r a t e r e p o r t s o nt h e pa pe r a s d i d pub l i c a t i o n s o n t h e c o n t i n e n t .E xp e r t s i n va r i o us f i e l ds qu i ck l y be ga n w o r k i n g t oo ve r c o m e t e c h n i c a l ba r r i e r s t o t h e c o m m e r c i a l -i z a ti o n o f t h e B e s s e m e r c o n ve r t e r , a n d by th e e n do f t h e y e a r c o n v e r t e rs w e r e b u i l t i n E n g l a n d a n dF r a n c e . B y e n c o m pa s s i n g w e l l - d e ve l o pe d p r o f e s -s iona l soc ie t i e s , the Br i t i sh ins t i tu t iona l envi ron-m e n t a p p a r e n t l y p r o v i d e d m o r e e f fe c ti v e p a t h -w a y s f o r t h e f l o w o f i n f o r m a t i o n , a l l o w i n g t h eB r i t is h t o o ve r c o m e a n e i gh t - y e a r A m e r i c a n l e a di n c o m m e r c i a l i z i n g t h e B e s s e m e r p r o c e s s .D e s p i t e i t s s l o w n e s s t o c o m m e r c i a l i z e t h eB e s s e m e r c o n ve r t e r , t h e U .S . qu i c k l y m a d ewid esp read use o f the t echno logy . Ar~nual U .S .p r o d uc t i o n o f B e s s e m e r s t e e l r o s e f r o m a bo u t ~3,000 tons in 1867 to ov er a mi l l ion tons in 1880.By the l a te 1870s , produc t iv i ty in the U .S . p lan t sw a s t h e h i gh e s t i n t h e w o r l d . A U .S . c o n ve r t e r i n1876 c o u l d p r o d uc e t h r e e t o f i ve t i m e s a s m uc hs t e e l a s a E u r o p e a n c o n v e r t e r . T h e r e w e r e s e v -e r a l f a c t o r s un d e r l y i n g t h e r a p i d g r o w t h i n bo t hs i ze a n d p r o c e s s e f f i c ie n c y by u s e r s o f t h e B e s s e -m e r p r o c e s s i n t h e U .S . , bu t a n i n s t i t u t i o n a l f a c -t o r o f c o n s i d e r a b l e i m po r t a n c e w a s t h e e s t a b l i s h -m e n t o f a t r a d e a s s o ci a ti o n , th e B e s s e m e r A s s o c i -a t i o n . T h e A s s o c i a t i o n , w h i c h c o n t r o l l e d t h epa t e n t s h e l d by it s m e m be r s , w a s i n s tr um e n t a l i nthe d i f fus ion o f advances in process t echno logy .

Pro fes s iona l soc ie t i e s , t r ade as soc ia t ions , andva r i o us f o r m s o f i n d us t r y c o n s o r t i a a n d ua i ve r -s i ty - indus t ry re la t ionsh ips , can fac i l i t a te the d i f -f u s i o n o f t e c h n i ca l i n f o r m a t i o n , h e l p ~ bo t -t l e n e c ks , c o o r d i n a t e i n ve s t m e n t , a n d h e l p p r o v i d ei n f ra s t ru c t u r a l s u p p o r t . T h e y c a n h e l p b y p r o m u l -ga t i n g n e w s t a n d a r d s , a s d i d t h e S o c i e t y o f A u t o *m o t i ve E n g i n e e r s i n t h e e a r l y 19 (J 0s ( T h o m p s o n ,1954) . Add i t iona l ly , one migh t specula te , theseo r ga n i z a t i o n s c a n p r o v i d e a ve n ue f o r t h e e x -c h a n g e o f c o m p l e m e n t a r y k n o w l e d g e l e a d i n g t ot h e d e ve l o p m e n t o f i n t e rd i s c ip l i n a r y te c h n o l o g i e s(Reddy e t a l . , 1991) . C lea r ly , no t a l la n d s o c i e ti e s a r e e qua l l y e f fe c t i ve in c a r r y i n g o u tt h e s e r o l e s . I n bo t h t h e U .S . a n d J a pa n , p r o f e s -s i o n a l a n d t r a d e a s s o c ia t i o n s h e l pe d s p r e a d i n f o r -m a t i o n a bo u t t h e b a s i c o xy ge n s t e e im a k i n g 13 :o -c e s s, bu t t h e J a p a n e s e a s s o c i a ti o n s w o r k e d m o r ec l o s el y w i t h go v e r n m e n t , s t e e lm a ke r a , a n d o t h e ri n 'm s t o d o t h i s e f f ec t ive l y . T h e J a pa n I r o n a n dS t e e l F e d e r a t i o n a n d t h e I r o n a n d S t e e l I n s t i t u t eo f J a p a n a r e c lo s el y l in k e d t o g o v e r n m e n t t h r o u g ha d v i s o r y c o un c i l s a n d t h e e m p l o y m e n t o f r e t i r e dbu r e a uc r a t s . T h e y h a ve l a r ge r s t a f f s t h a n t h e i rU .S . c o un t e r pa r t s a n d a m o r e e xp l i c it m a n d a t e t oco l lec t t echn ica l in fo rmat ion (Lynn , 1982, 1984;L y n n a n d M ~ K e o w n , 1988 ).

T h e e x a m p l e s g iv e n so f a r m a y s e e m t o m g g e s ttha t pro fes s iona l and t rade as soc ia t ions f~c i l i t a tet h e c o m m e r c i a l i z a t i o n a n d d i f f u s i o n o f t e c h n o l -o g y. T h i s i s n o t a ~ a y s t r u e . A s w e h a v e s e e n ,t h a n k s t o t h e po w e r f u l B e s s e m e r A s s o c ia t i o n , t h eU S . s t e e l i n d us t ry w a s e x t r e m e l y ef f e c ti ve w h e ni t c a m e t o u s i n g t h e B e s s e m e r t e c h n o lo gy t o c u ti t s p r o d uc t i o n c o s t s . T h e U .S . i n d us t r y l a gge d ,h o w e ve r , w h e n i t c a m e t o p r o d uc t i n n o va t i o n ,qua l i t y , a n d p r i c e t o c o n s um e r s . T h i s t o o m a yh ~ v e b e e n a n o u t c o m e o f t h e s t r e n g th o f th eB e s s e m e r A s s o c i a t i o n . T h e A s s o c i a t i o n ,~ e m s t ohav e kep t new f i rms out o f the indu~; try andc o n t r o l l e d c o m pe t i t i o n . I t w a s d o m i n a t e d by th es tee l ra i l p roducers , and had t i t t l e in te res t int c c h n o l o gy n o t d i r e c t ly r e l a t e d t o r a i l p r o d uc t i o n(Mor i son , 1966) .P r o f e s s i o n a l o r t r a d e a L ~ i a t i o n s a l s o a p p e a : "t o h a ve po s e d ba r r i e r s t o t h e u s e o f n e w t e c h -n o l o g i e s i n o t h e r c a s es . T h i s m a y be t h e c a s e w i t hl a s e r a n g l o p l a s t y , f o r e xa m F i e , w h e r e s o m e o b -


6/16

96 L . H . L y n n e t a l. /R e s e a r c h . Po li cy 25 (1 996 ) 91 -1 0 6s e r v e rs p o i n t o u t t h a t w i d e s p r e a d u s e o f t h e n e wt e c h n i que w o r l d s h i f t s u r ge o n i n c o m e t o c a r d i o l -o g i s ts a n d w o n d e r i f t h is i s w h y t h e s u r ge o n s 'p r o f e s s i o n a l s o c i e t y o pp o s e s i t ( G r ue n t z i g , 1982 ).S e h w a r t z - C o w a n ( 1987 ) a r gue s t h a t e l e c t r i c r e -f r i g e ra t o r s c a m e t o p r e d o m i n a t e o v e r g a s re f ri g -e r a t o r s , w h i c h th e a u t h o r a s s e r t s w e r e m o r e e f f i -c i e n t a n d qu i e t e r , d u e t o t h e e f f e c t i ve l o bby i n g o ft h e e ! e e t r /c a l m a n uf a c t u r e r s a s s o c ia t io n . H i r s c h( 1975 ) n o t e s h o w t r a d e a s s o c i at i o n s i n fl ue n c e l e g -i s la t io n a n d go ve r n m e n t a l po l i ci e s t o c r e a t e ba r r i -e r s t o n e w p r o d uc t s i n t h e ph a r m a c e u t i c a l i n d us -t ry .

T r a d e a s s o c i a t i o n s a n d p r o f e s s i o n a l s o c i e t i e s ,o f c o u r s e , a r e n o t t h e o n l y f o r m s o f c o o r d i n a t i n gorgan iza t ion~, invo lved ha commerc ia l i z ing tec l i -n o l o gy . G o ve r n m e n t a l s o c a n p l a y a r o l e . T h eJ a p a n e s e g o v e r n m e n t k e p t o t h e r w i s e c o m p e t i n gJ a p a n e s e s t e e l m a k e r s f r o m b i d d i n g a g a i n s t e a c ho t h e r f o r r i gh t s t o t h e ba s i c o xy ge n s t e e l m a k i n gt e c h n o l o gy , a n d t h us m i n i m i z e d l i c e n s e a n d r o y -a l t y f e e s pa i d t o t h e t e c h n o l o g y ' s A u s t r i a n d e ve l -o p e r s . G o v e r n m e n t t h e n a l l b u t f o r c e d t h eJ a p a n e s e f i r m s t o s h a r e t h e t e c hn o l o g y w i t h e a c ho t h e r a n d t o c o o pe r a t e i n a d a p t i n g i t . P r o f i t - m a k-i n g o r g a n i za t i on s s u c h a s t h e J a p a n e s e a n d K o -r e a n t r a d i n g c o m pa n i e s , pub l i c a t i o n s , a n d c o n -s u i t i n g c o m pa n i e s s h o u l d a l s o be m e n t i o n e d , a sshould un ive rs i t i e s and labor un ions (Lynn , 1982) .J u s t m a n a n d T e u b a l ( f o r t h c o m i n g ) s u g g e s t s o m eo f t h e w a y s i n w h i c h go ve r n m e n t c a n i n f l ue n c e ac o un t r y ' s t e c h n o l o g i c al i n f r a s t r uc t u r e , " a s e t o fco l lec t ive ly - suppl ied , spec i f i c , indus t ry - re levan tc a pa b i l i t i e s , i n t e n d e d f o r s e ve r a l a pp l i c a t i o n s i nt w o o r m o r e f i r m s o r u s e r o r ga n i z a t i o n s " , s uc h a sh um a n c a p i t a l , ph y s i c a l c a p i t a l a n d kn o w l e d ge .

I t o f t e n s e e m s t o m a t t e r w h a t t y p e s o f o r g a ni -z a t i o n s s e r ve t o c o o r d i n a t e t e c h n o l o g i c a l a d -va n c e . I n d e s c r i b i n g t h e o r ga n i z a t i o n s i n w l ve d i nt e c h n o l o g i c a l c h a n ge i n t h e t e x t i le m a c h i n e r y a n do t h e r i n d u s tr i es o f M a s s a c h u s e t ts a n d B a d e n -W u r R e m b e r g ( G e r m a n y ) , S a b e l e t a l. (1 9 87 ) s u g-ge s t t h a t t r a d e a s s o c i a t i o n s p l a y e d t h e c o o r d i n a t -i n g r o l e i n B a d e n - W ur t t e m be r g , f a c i l i t a t i n g t e c h -n o l o g i c a l a d va n c e . I n M a s s a c h us e t t s t h e m e c h a -n i s m o f c o o r d i n a t i o n u s e d w a s h o r iz o n t a l i n t e g r a -t io n b y m e r g e r , a m e c h a n i s m t h a t s e e m s t o h a v el e d t o t e c h n o l o g i c a l s t a gn a t i o n . C ur r e n t l y , M a s -

sachuse t t s i s re ly ing on un ive rs i t i e s to p lay thec o o r d i n a t in g r o l e . W h i le n o t i n g t h e a p pa r e n t c u r -r e n t s uc c e s s o f M a s s a c h us e t t s h i gh t e c h n o l o gy ,Sabe l e t a l . (1987) sugges t tha t th i s success i s ind a n ge r o f t u r n i n g t o f a i l u r e . I n t h e i r v i e w t r a d eassoc ia t ions a re super io r to un ive rs i t i e s in coord i -na t ing indus t ry ac t ion .

T w o po i n t s c o m e o u t o f t h i s d i s c us s i o n . F i r s t ,c o o r d i n a t i n g o r ga n i z a t i o n s w a r r a n t f a r m o r e a t -t e n t i o n t h a n t h e s e o r ga n i z a t i o n s h a ve r e c e i ve d .E l s e w h e r e w e o f f e r p r o po s i t i o n s o n t h e r o l e s o fU .S . t rade as soc ia t ions , pro fes s iona l soc ie t i e s , in -d e p e n d e n t R & D c o o rd i n a ti n g o r g a n iz a ti o n s,pub l i c s e r v i c e o r ga n i z a t i o n s , a n d go ve r n m e n tagenc ies (Reddy e t a l , 1991) . Second , d i f fe ren tn o n - m a r k e t o r g a n i z a ti o n s c a n c a r r y o u t c o m p a r a -b l e f un c t i o n s i n t h e c o m m e r c i a l i z a t i o n o f a t e c h -no logy ( such as coord in a t ion ) . S imi la r in s t i tu t ionsi n d i f f e r e n t c o un t r ie s m a y pe r f o r m d i f f e r e n t f un c -t i on s , a n d d i f f e r e n t i n s t it u t i on s m a y be f un c t i o n a le qu i va l e n ts . W e n e e d a f r a m e w o r k t h a t e n c o u r -a g e s m o r e s y s t e m a t i c t h o u g h t a b o u t w h a t t h en e c e s s a r y f un c t i o n s a r e i n t h e c o m m e r c i a l i z a t i o no f t e c h n o lo gy . W e a l s o n e e d s y s t e m a t i c f i el d w o r kw h i c h g i ve s a be t t e r s e n s e o f w h a t t h e a l t e r n a ti vei n s t i t u t i o n a l a r r a n ge m e n t s m a y be f o r c a r r y i n gthem out . Na t iona l va r ia t ions , inc lud ing thoseba s e d o n c u l t u r a l d i f f e r e n c e s , m a y p r o ve t o behighly s ignif icant .

3 . T h e i n n o v a t i o n c o m m u n i t yO r ga n i z a t i o n t h e o r y o f f e r s a w e a l t h o f c o n -c e p t s r e l e va n t t o t h e i n s t it u t io n a l e n v i r o m n e n t f o rt h e c o m m e r c i a l i z a t i o n o f t e c h n o l o gy : " o r ga n i z a -

t ion -se t s " (Evan , 1966) , "ac t ion -se t s " (Bo is seva in ,1974) , "ne tworks" ( Jay , 1964) , " in te ro rgan iza -t iona i co l lec t iv i t i e s " (Van de Ven e t a l , 1974) ,"complex , and more o r l e s s o r~ ,an ized , sys tems"( C r o z i e r a n d T h o e n i g , 1976 ), " l o o s e l y c o up l e dn e t w o r ks o f c l u s t e r s o f o r ga n i z a t i o n s " ( P f e f f e ra n d S a l a n c i k , 1978 ) , a n d " a d h o c n e t w o r ks "(Schon , 1971) . W einga r t (1984) v iews techno log yd e ve l o pm e n t a s a f un c t i o n o f i n t e r a c t i o n a m o n gi n s ti t u ti o n a l iz e d " o r i e n t a t i o n c o m pl e xe s " - i n -dus t r ia l , po l i ti ca l , academ ic , and mi l i t a ry o rgan i -za t ions wi th d i f fe r ing codes o f behavio r , convic -


7/16

L.H. Lynn et al. /Research Policy 25 (1996) 91-106 97t io n s , a n d s ubs t a n t i ve i d ea s . D i M a gg i o a n d P o w -e l l ( 1983 ) s ugge s t t h e c o n c e p t o f " o r ga n i z a t i o n a lf i e l d " t o e n c o m p a s s o r ga n iz a t i o n s t h a t , i n t h ea gg r e ga t e , c o n s t i tu t e a r e c o gn i z e d a r e a o f i n s t it u -t iona l l i fe : fo r examp le key suppl ie r s , r e sou rcea n d p r o d uc t c o n s um e r s , r e gu l a t o r y a ge n c i e s , a n do t h e r o r ga n i z a t i o n s t h a t p r o d uc e s i m i l a r s e r v i c e so r p r o d uc t s .

W hi le th i s i i t e ra ture sugges t s ways in whichg r o up s o f o r ga n i z a t i o n s m a y be d e f i n e d , h o w t h e yin te rac t , and how ac t ion i s coord ina ted , i t g ivest h e r e s e a r c h e r l i t t l e gu i d a n c e a s t o w h e r e t obo u n d o r ga n i z a t i o n s e t s o r n e t w o r ks ( A l d r i c h a n dW h e t t e n , 1981 ), o r h o w t o d e f i n e l i n ka ge s be -t w e e n o r ga n i z a t i o n s . N o r d o e s t h i s l i t e r a t u r e h e l pt h e r e s e a r c h e r c a p t u r e t h e e vo l u t i o n a r y n a t u r e o fbo t h t e c h n o l o gy a n d t h e o r ga n i z a t i o n s i n vo lve d indeve loping i t .

O r ga n i z a t i o n a l e c o l o gy s h o w s a w a y t o a d d r e s sthese problems . Based on "~Pn i t t aker ' s (1975)w o r k , A s t l e y a n d F o m br un ( 1987 ) u s e t h e t e r m" o r g a n i z a t i o n a l c o m m u n i t y " t o d e n o t e a s e t o ff un c t io n a l ly i n t e g r a t e d a n d i n t e r d e pe n d e n t o r ga -n i z a ti o n s . B r i t t a in a n d W h o l e y ( 1988 ) a l so u s e t h ec o n c e p t o f o r ga n i z a t i o n a l c o m m un i t y i n t h e i rs t ud y o f t h e e l e c t r o n i c s c o m po n e n t s i n d us t r y .T h e s e a u t h o ~ m c ! ud e d ,.'r ec t a n d i n d i re c t c o m -pe t i t o r s i n t h e i r d e f i n i t io n o f c o m m un i t y . I n as t ud y o f t h e e a r l y t e l e ph o n e i n d us t ry B a r n e t t a n dC a r r o l l (1987 ) b r o a d e n t h e c o m m un i t y n o ti o n f u r -t h e r by i n c o r po r a t i n g d i r e c t a n d d i f f u s e m u t ua l -i s m be t w e e n o r ga n i z a t i o n s i n a d d i t i o n t o c o m pe t -i t ive o rgan iza t iona l re la t ions .A s t l e y a n d F o m br u n ' s (1987 ) n o t i o n o f c o m -m un i t y i n c l ud e s a l l t h e r e l a t i o n s h i p s n o t e d byB a r n e t t a n d C a r r o l l ( 1987 ) a n d f u r t h e r i d e n t i f i e st h e c o o r d i n a t i n g a c t i v i t i e s o f s t a t e , t r a d e , a n dp r o f e s s i o n a l g r o ups a s pa r t o f a n o r ga n i z a t i o n a lc o m m u n i t y . F r e e m a n a n d B a r l e y ( 19 8 9) f u r t h e rd e v e l o p t h e c o n c e p t o f a n o r g a n i za t io n a l c o m m u -n i t y f r o m t h e po pu l a t i o n e c o l o gy l i t e r a tu r e a n df r o m s o c i a l n e t w o r k t h e o r y t o e xp l a i n t h e o r ga n i -z a t i o n a l s t r a t e g i e s o f t w o b i o t e c l m o i o gy f i r m s .C o m m u n i t y m e m b e r s i n t h i s f r a m e w o r k i n c l u d en e w b i o t e c h n o l o gy fi r m s , un i ve r si t y d e pa r t m e n t s ,r e s e a r c h i n s ti t u te s , e s t a b l i s h e d c o r po r a t i o n s , ve n -ture capi ta l f i rms , regula to ry bod ies , indus t r ia la s soc ia t ions , s c ien t i f i c bod ies , and suppl ie r s . As t -

ley and Fombrun (1987) and Fon~brun (1986,1988) d i s t inguish be tween the economic "sub-s t r uc t u r e ' o f a c o m m un i t y a n d i t s c o o r d i n a t i n g' s u p e r s t r u c t u r e ' .W e p r o po s e t h e t e r m ' i n n o va t i o n c o n n n un i t y "t o r e f e r t o t h e o r ga n i z a t i o n s d i r e c t l y a n d i n d i -r e c t ly i n vo l ved i n t h e c o m m e r c i a l iz a t i o n o f a n e wt e c h n o l o gy . A l t h o ugh s c h o l a r s s o f a r h a ve u s e dt h e o r ga n i z a t i o n c o m m un i t y f r a m e w o r k s o l e l y t ou n d e r st a n d t he s tr u c tu r e o f i n t e r - r e l a ~a m o n g o r ga n i z a t i o n s , c o m pa r a t i ve s t ud i e s o f i n -n o va t i o n c o m m un i t i e s a r e pa r t i c u l a rl y p ro m i s i n g .S uc h s t , d i e s m a y w e l l f ol lo w pa s t r e s e a r c h o nt e c h n o lo g i c a l i n n o va ti o n i n t a k i n g a s t h e i r d e pe wd e n t va r i a b l e s t h e s pe e d o f c o m m e r c i a l i z a t i o n( e x p l a i n i n g w h y o n e o f t w o o r m o r e c o m p e t i n gs y s t e m s w a s f i r s t t o b r i n g o u t a n e w t e c h n o lo gy ) ,r a t e o f d i f fu s i o n ( exp l a i n in g t h e s pe e d w i t h w h i c ha n e w t e c h n o l o gy c a m e t o be u s e d i n a po pu l a t i o no f po t e n t i a l u s e r s , o r e xp l a i n i n g w h y o n e o f a s e to f c o m p e t i n g s y st e m s m a d e m o r e e x t en s iv e o ri n t en s i ve u s e o f a n e w t e c h n o l o gy w i t h in a c e r t a i npe r i o d o f t i m e ) . T h e y c o u l d a d d i t i o n a ll y f o c us o na r e a s s uc h a s w h i c h s o c i a l o r i n t e r e s t g r o upsga i n e d o r l o s t t h r o ugh c o m m e r c i a l i z a t i o n . T h ei n n o v a t i o n c o m m u n i t y f r a m e w o r k h o w e v e r , s u g -ge s t s t h a t a t t e n t i o n a l s o be pa i d t o t h e r e l a t i o n -s h ip s b e t w e e n c o m p o n e n t s o f t h e c o m m u n i t y a n dt o t h e i n t e r a c t i ve d e ve l o pm e n t o f t e c h n o l o g i e sa n d c o m m u n i t i es . T h e m a j o r c o n t n 'b u t i o n o f t h ef r a m e w o r k i s t o s ugge s t ~ m po r t a n t va r i a b l e s t h a th a ve n o t y e t r e c e i ve d s u f f i c ie n t a t t e n t i o n .

T h e f o l lo w i n g a r e i m po r t a n t f e a t u r e s o f t h ei n n o va t i o n c o m m un i t y f r a m e w o r k .3 . 1. T e c h n o l o g y a s t h e c e n t e r o f t h e in n o v a t i o nc o m , ~ t y

A pr o b l e m f o r r e s e a r c h e r s a n a l y z i n g s e t s o fo r ga n i z a t i o n s i s t h a t ' e ve r y t h i n g is c o n n e c t e d ' ; i ti s d i ff i cu l t t o kn o w w h e r e t o s t o p i n c lud i n g o r ga -n i z a t io n s a s m e m be r s o f t h e s e t . T h e i n n o va t i o nc o m m u n i t y pe r s pe c t i ve s ugge s t s t h a t r a t h e r t h a ns ta r t w i th an a pr io r i l i s t o f re levan t o rgan iza -t i o n s , a r e s e a r c h e r s h o u l d r e ga r d t h e i d e n t i f i c a -t i o n o f t h e s e o r ga n i z a t i o n s a s a n e m p i r i c a l que s -t i o n ( D i M a gg i o a n d P o w e l l , 1983 ) . T h us t h em e m be r s o f a n i n n o va t io n c om n luni t3 " a r e d e f i n e d


8/16


9/16

L.H. Lynn et a l . / Research Policy 25 (1996) 91-10 6 99inan t des ign fo r a t echn o logy by link ing d ive rsebo d i e s o f kn o w l e d ge , c o m pe t e n c i e s , a n d t e c h -n iques , thus fac i l i t a t ing a convergence o f in te rde -p e n d e n t a n d c o m p l e m e n t a r y t ec h n ol o g ie s . U n -d e r l y i n g e ve r y t h i n g , t a ke n - f o r - g r a n t e d un d e r -s t a n d i n gs s e r ve a s gu i d e l i n e s f o r a c t i o n a n d c a np r o v i d e a ba s i s f o r r e s t r uc t u r i n g w h e n t h e i n n o va -t i o n c o m m un i t y i s d i s r up t e d . T h e s t a t e , p r o f e s -s ions , and t rade as soc ia t ions a re the ins t i tu t iona ls o u r c es f o r m a n y o f t h e s e t a k e n - f o r -g r a n t e d u n -d e r s t a n d i n gs ( Re d d y a n d Ra o , 1990 ) .P a r t i t io n i n g t h e r e l e va n t e n v i r o n m e n t i n t o s ub -s t r uc t u r e a n d s upe r s t r uc t u r e h e l p s u s t o i n c o r po -r a t e n o n - m a r k e t o r g a n i z a t i o n s i n t o o u r f r a m e -w o r k a n d d i r e c t s o u r a t t e n t i o n t o m e c h a n i s m s byw h i c h t h e f l o w s o f ke y i n pu t s a r e r e gu l a t e d .

4 . I n n o v a t i o n c o m m u n i t y v a r i a b le sU s e o f t h e i n n o v a ti o n c o m m u n i t y f r a m e w o r kpo i n t s t o t h e po s s i b le i m po r t a n c e o f va r ia b l e st h a t h a ve s o f a r be e n g i ve n l i tt l e a t t e n t i o n i n t h e

l i t e r a t u r e o n t e c h n o l o g i c a l i n n o va t i o n . T a b l e 1l i s t s some o f these va r iab les .4 .1 . C o m m u n i t y l e v e l v a r i ab l e s

A t t h e c o m m un i t y l e ve l , va r i a b l e s o f i n t e r e s twould inc lude the s ize , d ive rs i ty , s t ab i l i ty , andbo u n d a r y pe r m e a b i l i t y o f t h e c o m m un i t y . A s i z-a b l e l i t e r a t u r e s ugge s t s w h y t h e s e c h a r a c t e r is t i c so f a c o m m un i t y m i gh t r e l a t e t o i t s w i l l i n gn e s s /a b i li t y t o i n t r o d uc e va r i o us t y pe s o f n e w t e c h n o l -o gy . T h i s l i t e r a t u r e a l s o s ugge s t s h o w va r i o usf o r m s o f t e c h n o lo g i c a l c h a n ge m a y l e a d t o c h a n gei n c o m m u n i t y c h a r a c t er i s ti c s .As eco logica l theor i s t s have shown, a newt e c h n o l o gy m a y d is r up t t h e n i c h e c o m f o r t a b l yo c c up i e d by a po pu l a t i o n , d e s t r o y i n g e x i s t i n gc o m pe t e n c i e s a n d l i n ka ge s , a n d r e p l a c i n g t h e mw i t h n e w o n e s ( A be r n a t by a n d C l a r k , 1985 ; A s t -ley , 1985) . For ana ly t ica l purposes one migh t ca t -egur ize inno va t ions as pos ing th r ee l eve l s o f in s t i-t u t i o n a l c h a l l e n ge : n o c h a l l e n ge , be c a us e t h e i n -n o v a t io n d r a w s o n o r e n h a n c e s t h e c o m p e t e n c i e so f t h e d o m i n a n t m e m b e r s o f t h e e x i st in g c o m m u -n i ty ; subs tan t ia l cha l lenge , because the requi red

c o m p e t c n c i c s c o m e f r o m v a r i o u s c o m m u n i t i e s ,bu t s o m e s upe r s t r uc t u r a l e l e m e n t s e x i s t t o c o o r -d i n a t e t h e c h a n g e ; a n d r e vo l u t i o n a ry c h a l l e n ge ,b e c a u s e t h e c o m p e t e n c y n e e d s o v e r w h e l m e x is t-i n g s upe r s t r uc t u r a l e l e m e n t s a n d l e a d t o t h ee m e r ge n c e o f a n e w po pu l a t i o n ( in d us tr y ).P a r t o f t h i s n o t i o n o f c h a l l e n ge i s c a p t u r e d i nT us h m a n a n d A n d e r s o n ' s ( 1986 ) c h a r a c t e r i z a t i o no f s o m e i n n o v a t i o n s a s c o m p e t e n c e d e ~ r o ~ n g .w h i l e o t h e r s a r e c o m pe t e n c e e n h a n c i n g . _T h e s ea u t h o r s h y po t h e s i z e t h a t t h e f o r m e r a r e i n i ti a t e dby n e w e n t r a n t s a n d t h e l a t t e r a r e i n i t i at e d bye x i st in g f i rm s . S upo o r t f o r t h i s h y p o t h e s i s is f o un di n a n a l y s e s o f t h e d e ve l o pm e n t o f t h e U .S . c e -m e n t , a i r l i n e , a n d m i n i c o m pu t e r i n d us t r i e s .H e n d e r s o n a n d C l a r k ( 1 9 9 0 ) a n d H e n d e r s o n( 1993 ) d e ve l o p t h i s n o t i o n f u r t h e r , s ugge s t i n g th a ti n c u m b e n t f i r m s a r e l e s s c o m p e t e n t t h a n n e we n t r a n t s w h e n i t c o m e s t o i n t r o d uc i n g " a rc h it e ct u r a l i n n o v a t i o n s ' ( i. e. t h o s e t h a t c h a n ge t h e w a y si n w h i ch t h e c o m p o n e n t s o f a p r o d u c t a r e i n t e-g r a t e d i n t o a s y s t e m ) . T h e r e a s o n i s t h a t t h ea r c h i t e c t u r a l kn o w l e d ge d e ve l o pe d by i n c um be n tf i r m s i s a c c o m pa n i e d by i n f o r m a t i o n f i l t e r s a n di n f o r m a t i o n c h a n n e l s t h a t f a c i li t a te t h e i n c r e m e n -t a l d e v e l o p m e n t o f p r o d u c t c o m p o n e n t s , b u t m a k ei t h a r d e r t o d e v e l o p o r i n t r o d u c e n e w w a y s o fu s i ng t h e c o m p o n e n t s . I n d e e d , H e n d e r s o n ( 1 9 9 3)f in d s t h a t i n t h e c a se o f th e p h o t o f i t ~a l i g n m e n t e q u i p m e n t i n d u s t r y , i n c u m b e n t f i m ~w e r e l es s c o m p e t e n t t h a n n e w e n t r a n t s w h e n i tc a m e t o e xp l o i t i n g r a d ic a l i n n o va t i o n .

W e w o u l d s ugge s t t h a t a n i n n o va t i o n c a n bec o m pe t e n c e e n h a n c i n g o r d e s t r o y i n g n o t o n l y i nt h e c o n t e x t o f a s pe c i f i c o r ga n i z a t i o n bu t a l s o i nt h e c o n t e x t o f a c o m m un i t y . N e w t e c h n o l o g i e st h a t a r e n o t pa r t i c u l a r l y r a d i c a l f r o m t h e t e c l m i -c a l s t a n d po i n t m a y po s e c h a l l e n ge s t o i n s t i tu -t i o n a l a r r a n ge m e n t s be c a us e c o m m e r c i a l i z a t i o nm a y d e p e n d o n t e c h n o l o g i c a l c o m p l e m e n t a r i t i e sa n d r e qu i r e t h e i n t e g r a t i o n o f d ive r~ e e l e m e n t s o fin fo rm at ion , knowledg e , and sk i ll (Con s tan t , 1984,Pavi t t , 1984; Ros enb erg , 1979, 1982). New cord ig-u r a t i o n s o f t h e s e e l e m e n t s a r e n e e d e d t h r o u g ht h e i n t e g r a t i o n o f f o r m e r l y un a s s o c i a t e d pe r um s ,p i e c e s o f e qu i pm e n t , a n d f i n a n c i a l a g r e e m e n t s .S uc c e s sf u l c o m m e r c i a l iz a t i o n o f a n i n n o va t io n o f -t e n m e a n s f i n d i n g w a y s t o c o o r d i n a t e c o n f i gu r a -


10/16

lO0 L H . L y n n e t a L / R e s e a rc h P o li cy 25 (1 996 ) 91 -1 0 6t i o n s o f t h e s e n e w f a c t or s o r t o c o m b i n e t h e mw i t h i n n e w o r g a n i z a ti o n s . C o m m u n i t y s u p e r s t ru c -t a r e s v a r y i n t h e i r a b i f i t y t o c a r r y o u t t h e s e a c t i v i-t i e s . T h u s S a b e l e t a l . ( 1 95 7 ) s e e m t o i m p l y t h a ta d v a n c e s i n t e x t il e p r o d u c t i o n t e c h n o l o g y w e r ec o m p e t e n c e d e s t r o y i n g f o r t h e U . S . i n d us t ry , b u tc o m p e t e n c e e n h a n c i n g f o r t h e G e r m ~ -~ in d u s tr y .T h i s s e e m e d n o t s o m u c h b e c a u s e o f d i ff e r e n c e sb e t w e e n U . S . a n d G e r m a n f i r m s , b u t r a t h e r b e -c a u s e o f d i f f e r e n c e s in t h e i n n o v a t i o n c o m m u n i -t i e s t h a t w e r e e n g e n d e r e d i n t h e t w o c o u n t r ie s .

I n n o v a t i o n c o m m u n i t i e s s o m e t i m e s t a k e i n n e wm e m b e r s a n d c a s t o u t o l d o n e s . T h e d e g r e e t ow h i c h t h e y d o t h i s - t h e i r s t a bi l it y a n d b o u n d a r yp e r m e a b i l i t y - h a s c o n s e q u e n c e s f o r h o w q u i c k lyt h e y c a n m a k e r a d i c a l o r e v o l u t i o n a r y c h a n g e s i nt h e i r i n n o v a t io n . T h e a b i l it y o f m e m b e r s o f t h eB e s s e m e r A s s o c i a t i o n i n th e U . S . t o k e e p o u tn e w m e m b e r s f a d f i t a t e d c e r t a i n t y p e s o f in n o v a -t i o n ( p a r t i c u l a r l y c o s t- c u R i n g ) , w h i l e i n h i b i t i n go t h e r s . I m p e r m e a b i l i t y c a n s o m e t i m e s d e s t r o y a ne n t i r e c o m m u n i t y , t h u s a l l o w i n g t h e b i r t h o f an e w o n e .

P r o p o s i t i o n s ( s e e T a b l e 2 ) b a s e d o n t h is d i s -c u s s i o n w o u l d i n c l u de : ' O t h e r t h i n g s b e in g e q u a l ,s m ~ , h o m o g e n e o u s a n d s t a b l e c o m m u n i t i es w il lb e f a s t e r t o i n t r o d u c e i n c r e m e n t a l i m p r o v e m e n t si n a t e c h n o l o g y ' , a n d , ' O t h e r t h i n g s b e i n g e q u a l ,s m a l l , h o m o g e n e o u s a n d s t a b l e c o m m u n i t i e s w i l lb e s l o w e r t o i n t r o d u c e r a d i c a l ly n e w t e c h n o l o g i es ' .

A n o t h e r i m p o r t a n t c o m m u n i t y l e v e l v a r i a b l e ist h e r e l a t i v e p o w e r o f s u p e r s t r u c t u r e a n d ~ u b-

s t r u c tu r e o r g a n i z a ti o n s . M e c h a n i s m s f o r d e a l i n gw i t h o p p o r t u n i s m , u n c e r t a i n t y a n d b o u n d e d r a -t i o n a l i t y a r e r e s i d e n t i n t h e s u p e r s t r u c t u r e i n t h ef o r m o f c h a n n e l s o f c o m m u n i c a t i o n s , s h a r e d u n -d e r s t a n d i n g s , a n d l a w s . T h i s i n t e g r a t i o n o f th es u p e r s t r u c t u r a l a n d s u b s t r u c t u r a l l e v e l s o f f e r s r ic ho p p o r t u n i t i e s t o i n c o r p o r a t e c o n c e p t s f r o m o r g a -n i z a t io n a l t h e o ry , s u ch a s p o w e r a n d d e p e n d e n c y ,i n t o a f ra m e w o r k t h a t a l s o d r a w s o n c o n c e p t sd e v e l o p e d b y t h e n e w i n s t it u t io n a l e c n ~ o m i s t sa n d o t h e r s . R e l a t i v e p o w e r m i g h t b e m e a s u r e d b y( 1 ) t h e d e g r e e t o w h i c h m e m b e r s o f th e s u b s t ru c -t u r e a l l o w s u p e r s t r u c t u r e o r g a n i z a t i o n s t o i n f lu -e n c e t h e i r a c t i o n s , a n d ( 2 ) t h e d e g r e e t o w h i c hm e m b e r s o f a g iv e n s u p e r s t ru c t u r e a l lo w m e m -b e r s o f o t h e r s u p e r s t z u c t u re s t o i n f l u en c e t h e i ra c t i o n s .

T h e a l l o c a ti o n o f r o l e s b e t w e e n s u p e r s t r u c t u r ea n d s u b s t r u c t u r e w i l l f r e q u e n t l y v a r y b e t w e e n i n -n o v a t io n c o m m u n i t ie s . S o m e o f t h e c o l l e c t io n o fi n f o r m a t i o n o n t h e b a s i c o x y g e n f u r n a c e s t e e l -m a k i n g p r o c e s s , p e r f o r m e d b y s u p e r s tr u c t u r a l o r -g a n i z a t i o n s s u c h a s g o v e r n m e n t a n d t r a d i n g c o m -p a n i e s i n J a p a n , w a s c a r r i e d o u t b y s u b s t r u c t u r a lo r g a n i z a t i o n s i n t h e U n i t e d S t a t e s ( t h e s t e e l m a k -e r s t h e m s e l v e s , o r t h e i r v e n d o r s ) . T h e c o n s e -q u e n c e s o f s u c h d i f f e r e n c e s s h o u l d b e c a r e f u l l ye x p l o r e d . D i f f e r e n t o r g a n i z a t i o n s c l e a r l y h a v e d i f -f e r e n t l e v e l s o f r e s o u r c e s . S o m e t y p e s o f o r g a n i -z a t i o n s ( b e c a u s e o f a p p r o p r i a b i l i ty c o n c e r n s ) m a yb e m o r e w i l li n g t o i n v e s t r e s o u r c e s i n i n f o r m a t i o nc o l l e ct i o n t h a n o t h e rs . F u r t h e r , o r g a n i z a t i o n s

Table 2PropositionsPI. Oth er things being equal, small, homogeneous and stable communitieswill more quickly ntroduce incremental improvementsin a technology.P2. Other things being equal, small, homogeneous and stable comm unitieswill be slower o introdu ce radically new technologies.P 3 0 m e r things being equal, communities n which superstructurai orga~iizations ssum e the information-collecting o!e willmore rap idly com merda lize and diffuse a new technology.P4. Other things being equal, communitieswith supe rstructure~ spec':alized y industry will more rapidly comm ercializenarrowly-based ncremental innovations han comm unitieswith more encompassing uperstructures.PS. Other things being equal, larger more encompassing uperswJctures will be m ore effectiveat commercializing ystemictechnolo~es.P6. Other things being equal, innovation com mun itieswith m ore heterogeneous substructures will produce m ore radicalinnovations.


11/16

L.H. Lynn et aL / Research Policy 25 (1996) 91-10 6 101h a ve t h e i r s y s t e m a t i c b i a s e s. A p r o po s i t i o n ba s e do n t h i s l o g ic w o u l d b e : ' o t h e r t h i n gs be i n g e qua l ,c o m m un i t i e s i n w h i c h s upe r s t r uc t u r a l o r ga n i z a -t ions as sume the in fo rmat ion-co l lec t ing ro le wi l lm o r e r a p i d l y c o m m e r c i a l i z e a n d d i f f u s e a n e wt e c h n o l o gy . 'T h e c o m m un i t y pe r s pe c t i ve e xp l i c i t l y r e c o g -n i z e s t h e e x t r e m e va r ia b i l it y o f m o d e s o f l i n ka gebe t w e e n c o n s t i t ue n t o r ga n i z a t i o n s . F i r m s m a y bef o r m a l l y c o n n e c t e d t o o t h e r f i r m s i n th e s a m e o ra d i f fe ren t indus t ry th rough con t rac tua l t i e s , in -t e r l o c k i n g bo a r d s o f d i r e c t o r s , qua s i - ve r ti c a l i n t e -g r a t i o n , j o i n t v e n t u r e s , o r t h e m o v e m e n t o f e m -ployees . A s imi la r range o f va r iab i l i ty a l so ex i s t sa t t h e s upe r s t r uc t u r a l l e ve l a n d i n t h e l i n ka ge s, :onnec t ing the sub- and supers t ruc tura l l eve l s .N e t w o r k t h e o r y s ugge s t s w a y s o f t h i n k i n g a bo u tt h e s e t i e s in a c o m pa r a t i ve c o m m un i t y c o n t e x t .T w o o r g a n i za t io n s m i g h t b e r e g a r d e d a s o c c u p y -i n g s t r uc t u r a l l y e qu i va l e n t po s i t i o n s i n t h e c o m -m un i t y , f o r e xa m pl e , i f th e y h a ve i d e n t ic a l t i e s t oi d e n t ic a l o r ga n i z a t i o n s ( D i M a gg i o , 1988; W h i t e e ta l , 1976 ). C o n n e c t e d n e s s w i t h in a c o m m u n i t y isa n o t h e r d i m e n s io n t h a t m i g h t h e e x p e c t e d t o v a r ybe t w e e n c o m m un i t i e s a n d t o i n f l ue n c e t h e i r r e l a -t ive capac i t i e s fo r t echno logica l innova t ion .

t a l i n n o va t i o n s ' , a n d , 'O t h e r t h i n gs be i n g e qua l ,l a r ge r m o r e e n c o m pa s s i n g s upe r s t r uc t u r e s v~ J lm o r e r a p i d l y c o m m e r c i a l i z e s y s t e m i c t e c h n o l o -g ies ' .T h e s u p e r s t r u c tu r e o f a n i n no v a ti o n c o m m u -n i t y m i gh t a l s o be c h a r a c t e r i z e d i n t e r m s o f i t so r i e n t a t i o n t o w a r d s c o o pe r a t i ve p r o b l e m - s o l v i n g .S o m e a n a l y s t s a r gue t h a t l e ga l i s t i c n m - n ~ i n t h eU .S . h a ve i n h i b i t e d c e r t a i n t y pe s o f i n n o va t i o nr e l a ti ve t o J a p a n a n d o t h e r c o un t r i e s ( A r a m , 1992 ;Aram e t a l . , 1992; Dore , 1986; Wal ton , 1987) .P r e s um a b l y i n d us tr i e s a n d c o m m un i t i e s w i t h i n as i ng l e n a t i o n w o u l d a l s o va r y c o n s i d e r a b~ i n t h i sr e g a r d . S o m e t i m e s t h e n o r m s o f c o o p e r a t i o n w il lh a ve a n i n s t i t u t i o n a l e m bo d i m e n t . T h e J a pa n e s e ,a s w a s n o t e d a b o v e , h av e e l a b o r a t e m e c h a n i sm s ,s uc h a s l o n g - s t a n d i n g i n d us t xy - go ve r n m e n t a d v i -so ry counc i ls , fo r coord in a t ing the ac t iv i t ie s o fo r ga n i z a t i o n s i d e n t i f i e d h e r e a s be i n g pa r t o f t h es u p e r s t r u c t u r e . T h e s e m a y h a v e g i v e n t h eJ a pa n e s e a d va n t a ge s i n c o m m e r c i a l i z i n g n e w s y s -tem ic techno logies (Ar am e t a l . , 1992; Im ai , 1992a ;L y n n a n d M c K e o w n , 1988 ) .

4 . 3 . S u b s t r u c t u r e v a r i a b l e s

4 . 2 . S u p e r s t r u c t u r e v a r i a b l e s

O n e w a y s u p e r s tr u c t u r e s v a ry is in t h e n u m b e ro f p o w e r c e n t e r s . T h e d e v e l o p m e n t o f t e c h n i c a ls t a n d a r d s a n d t h e e m e r g e n c e o f n e w i n d u s tr i esm a y e n g e n d e r po l i t i ca l a c t iv i ty by m a r k e t pa r t i c i -pa n t s ( B e c k e r , 1970) . S t a t e a ge n c i e s m a y h e c a r e -f u l l y gua r d i n g t h e i r j u r i s d i c t i o n s a ga i n s t o t h e ra ge n c i e s . P r o f e s s i o n s m a y p r o v i d e c h e c ks a n dba l a n c e s a ga i n s t e a c h o t h e r , a n d p r o f e s s i o n s m a ys t a n d a s c o un t e r w e i gh t s t o s t a t e a ge n c i e s a n di n d us t r i e s . A s a c o n s e que n c e , s upe r s t r uc t u r e ss pe c i a l i z e d by i n d us t r y m a y be m o r e e f f e c t i ve a td e ve l o p i n g i n c r e m e n t a l i n n o va t i o n s w h i l e m o r ee n c o m pa s s i n g s upe r s t r uc t u r e s ( e . g . t h o s e t h a ts p a n m o r e t h a n o n e i n d us t ry ) m a y b e m o r e e f f ec -t i ve w h e n i t c o m e s t o s y s t e m i c in n o va t io n . H e n c et w o p r o po s i t i o n s : 'O t h e r t h i n gs be i n g e qua l , s u -pe r s t r uc t u r e s s pe c i a l i z e d by i n d us t r y w i l l m o r er a p i d l y c o m m e r c i a l i z e n a r r o w l y - ba s e d i n c r e m e n -

M a n y o f t h e va r i a b l e s t h a t w o u l d b e a s s o c i a t e dw i t h c o m m u n i t y s u p e r s t r u c t u r e s h a v e t h e i r a n a -l o gue s a t t h e s ubs t r uc t u r e l e ve l . T h e s e w o u l dinc lude s ize , d ive rs i ty , and inc lus iveness , fo r ex-a m p l e . S o m e o f t h e s e v a r i a b l e s h a v e b e e n a d -d r e s s e d i n t h e e c o n o m i c s l i t e r a t u r e s um m a r i z e di n t h e i n t r o d uc t o r y ~ c t i o n o f t h i s pa pe r : , e . g .r e s e a r c h o n t h e i m pa c t s o f i n d us t r y c o n c e n t r a -t i o n , ve r t i c a l a n d h o r i z o n t a l i n t e g r a t i o n o n i n n o -va t i o n . I~ s h o u l d h e n o t e d , a s i s d e m o n s t r a t e d i nm a n y o f t h e c a s e s c i t e d a bo ve , h o w e ve r , t h a ts ubs t r uc t u r e va r i a b l e s a r e s t r o n g l y m e d i a t e d byt h e c o m m u n i t y s upe r s t r uc t u r e ( s e e a l so B ur r ,1988; Lauman e t a l . , 1978) .E x a m p l e s o f h o w m o r e e n c o m p a s s i n g i n n o v a -t i o n c o m m un i t y s ubs t r uc t u r e s m a y f a c i l i t a t e t h ed e v e lo p m e n t o f n e w s ys te m ic t e c ~ s a r ep r o v i d e d by K o d a m a ( 1986 , 1991 ) . K o d a m a a n a -l yz e d J a p a n e s e R & D s p e n d i ng o n 3 1 d i f fe r e n tp r o d uc t g r o ups f r o m 1970 t o 1982 . H i s d a t a s ug -ge s t t h a t t h e r e w a s a w i d e s p r e a d ' f u s i o n ' o f r e -


12/16

102 L .H. Lyn n et a /Res earc h Policy 23 (1996) 91-106s e a r c h be t w e e n i n d us t r i e s i n J a pa n o ve r t h i s pe -r iod . Beginn ing in 1971, fo r example , new e lec -t r o m e c h a n i c a l t e c h n o l o g i e s w e r e d e ve l o pe d i nJ a p a n t h r o u g h i n t e r- c o m p a n y r e la t io n s h ip s a n di n w a - c o m pa n y r e s e a r c h t h a t s pa n n e d t r a d i t io n a li n d u s t ri a l b o u n d a r i e s . S i m i l ar d e v e l o p m e n t sl i n ke d t h e p r e c / s i o n i n s t r um e n t s a n d c o m m un i c a -t / o n / e l e c t r o n i c e qu i pm e n t i n d us t r i e s , a n d t h efood , d rug , and indns~: r ia l chemica l indus t r ie s inthe 1970s . The ea r ly 1980s wi tnessed the fus ion o fc e r a m i c ~ w i t h m e c h a n i c a l m a c h i n e r y , e l e c t ri c a lm a c h i n e r y , a n d i n d us t r i a l c h e m i c a l s . K o d a m a ' sf i n d in gs s ugge s t a n a d d i t i o n a l p r o po s i t i o n : 'O t h e rt h i n gs be i n g e qua l , i n n o va t i o n c o m m un i t i e s w i t hm o r e h e t e r o g e n e o u s s u b s t r u c t u r e s w i l l p r o d u c em o r e r a d / c a l i n n o va t i o n s ' .4 . 4 . T e c h n o l o g y v a r i a b l e s

M uc h o f o u r d i s c uss i o n h a s i l lu s t r a t e d h o wc o n f i gu r a t i o n s o f s upe r s t r u c t u r e a n d s ubs t r uc t u r eo r ga n i z a t i o n s i n f l ue n c e t h e m a n n e r i n w h i c h n e wt e c h n o l o gy is d e ve l o pe d a n d c o m m e r c i a l i z e d . T h i si s pa r t i c u l a r l y t r ue o f t h e a s pe c t s o f t e c h n o l o gyc a p t u r e d i n t h e f i rs t t w o t e c l m o l o gy va r i a b l e s i nT a b l e 2 , s p e e d o f c o m m e r c i al i z at i on a n d s p e e d o fd i f fus ion .

A s w e h a ve n o t e d , h o w e ve r , t e c h n o l o g i c a l i n -n o va t i o n s o f t e n i n f l ue n c e t h e n a t u r e a n d c o n f i gu -r a t i o n o f t h e i n n o va t i o n c o m m u n i t y . Rus s o ( 1985 ),f o r e xa m pl e , s h o w s h o w t e c h n i c a l c h a n ge s i n t h eI t a l i a n c e r a m i c t i l e i n d us t r y ga ve r i s e t o ve r t i c a ld i s in t e g ra t io n o f p r o d u c e r f i rm s a n d t h e f o r m a -t i o n o f m u l t i - f a c t o r y m u l t i - f i r m g r o ups ba s e d o ng e o g r a p h i c a l p r o a ~ a i t y . T u s h m a n a n d A n d e r s o n( 1986 ) a r gu e t h a t c o m pe t e n c e - d e s t r o y i n g i n n o va -t i o n s a l te r e d t h e m a r k e t p o s i t io n s o f n e w e n t r a n t sa n d e x i s t i n g f i r m s i n t h e c e m e n t , a i r l i n e , a n dm i n i c o m pu t e r i n d us t r / e s . S i m i l a r l y , H e n d e r s o n( 1993 ) s h o w s t h e i n f l ue n c e o f ' a r c h i t e c t u r a l i n n o -va t io n " o n t h e s t r uc t u r e o f th e p h o t o l i t h o g r a ph i ca l i g n m e n t e q u i p m e n t i n du s tr y . I n t e r m s o f n o n -m a r ke t o r ga n i z a t i o n s , W a l t o n ( 1987 ) s h o w s d i f -f e r e n t c o un t r i e s " i n st i tu t i o n a l a d a p t a t i o n s t o s i m i -l a r w o r k i n n o va t i o n s i n t h e m a r i t i m e s h i pp i n gindus t ry .T h e t h i rd a n d f o u r t h o f o u r t e c h n o l og y v a r i-a b l e s , t h e t e c h n i c a l c o n t i n u i t y o f a n i n n o va t i o n

a n d t h e n um be r o f i n d us t r i e s s upp l y i n g t e c h n i c a li n pu t s , a r e i n t e n d e d t o c a p t u r e a s pe c t s o f t e c h -n o l o gy t h a t a c t o n c o m m u n i t y st r uc t u re .

5 . Conc lus ionsT h e i n n ov a ti o n c o m m u n i t y f r a m e w o r k s u g g e s ts

tha t the ac to rs invo lved in the con~nerc ia l i za t iono f a n e w t e c h n o l o gy be v i e w e d a s f o r m i n g ab o u n d e d s t r u c tu r e e n c o m p a s s i n g a s u p e r s t r u c t u r eo f c o o r d i n a t in g o r ga n i z a t i o n s , a s ubs t r uc t u r e o fo r g a n i z a t i o n s p r o d u c i n g k e y c o m p o n e n t s o f t h ec o m m e r c i a l i z e d te c h n o l ogy , a n d l i n ka ge s be t w e e nt h e s u b s t r u c t u r e a n d s u p e r s t r u c t u r e a n d a m o n gt h e va r i o us a c to r s . T h i s bo un d e d s t r uc t u r e i s s e e na s c o - e vo lv i n g w i t h t h e c o m m e r c i a l i z e d t e c h n o l -ogy .T h i s f r a m e w o r k c a l l s t h e a t t e n t i o n o f r e -s e a r c h e r s t o i m p o r t a n t va r i a b l e s t h a t h a ve n o t y e tbe e n a d e qua t e l y s t ud i e d a n d s h o w s h o w t h e s eva r i a b l e s m i gh t be t h o ugh t o f i n a s y s t e m a t i cfash ion . I t sugges t s r i ch poss ib i l i t i e s fo r re sea rche xp l o r i n g t h e s e va r i a b l e s a n d t h e l i n ka ge s be -tween them. I t a l lows , a s we l l , a v iew o f in te rac -t ive evo lu t ion invo lv ing o rgan iza t iona l re la t ion -s h i p s a n d t e c h no l o gy . I n e xp l a i n in g s o m e o f t h ei s s ue s o f c o n c e r n t o i n n o va t i o n r e s e a r c h e r s , t h ei n n o v a t i o n c o m m u n i t y f r a m e w o r k s u g g e s t s t h a ta t t e n t i o n b e pa i d t o : c o m m un i t y s i ze , c o m m u n i t ym e m b e r s t a b i l i t y , c o m m u n i t y b o u n d a r y p e r m e -a b i li ty , s t r e n g t h o f m e m be r s ' s e n s e o f c o m m un i t y ,s t r u c tu r e o f t h e s u b - a n d s u p e r s t r u c t u r e c o m p o -n e n t s , s t r e n g t h o f t h e s upe r s t r uc t u r e , d i v i s i o n o ff un c t i o n s be t w e e n t h e s ub - a n d s upe r s t r uc t u r e ,m o d e s o f l i n ka ge , s t r e n g t h o f l i n ka ge s , r e l a t i vepo s i t i o n w i th i n t h e c o m m un i t y o f s pe c i fi c a ct o r s ,s e g m e n t a t i o n o f t h e c o m m u n i t y , c o n g r u e n c e b e -t w e e n c o m m u n i t y s t r uc t u r e a n d t h e t e c h n o l o gy .R e s e a r c h b a s e d o n t h is f r a m e w o r k w o u l d i d e -a l ly fo l low a se r ie s o f innova t ions th r oug h th e l i fec y c le s o f t h e i n n o va t io n s , m e a s u r i n g t h e n a t u r ea n d d e g r e e o f i n f lu e n c e b y m e m b e r s o f t h e i n n o -va t i o n c o m m un i t y o n t h e d i f f u s i o n p r o c e s s . B o t hqua l i t a t i ve a n d qua n t i t a t i ve m e t h o d o l o g i e s w o u l dbe n e e d e d . A n i n i t i a l a pp r o a c h t h a t s e e m s f e a s i -b l e m i gh t s t a r t a t t h e po i n t w h e r e a n e w t e c h n o l -o g y h a s b e e n c o m m e r c ia l iz e d , a n d t h e n w o r k


13/16

LH . Lynn et at/Research Policy 25 (1996) 91-106 ]03ba c kw a r d s , t r a c k i n g ke y i n pu t s . T h e s e w o u l d i n -c l ud e : f l ow s o f i n f o r m a t i o n , pe o p l e , a n d f i n a n c e( J us t m a n a n d T e uba l , 1986 ) . T h e r e s e a r c h e rw o u l d b e c o n c e r n e d w i t h t h e o r i g i n o f t h e s er e s o u r c e s a n d w i t h h o w t h e y f l o w t o t h e po i n t sw h e r e t h e y a r e n e e d e d . I t w o u l d be n e c e s s a r y t oi d e n ti f y t h e m a j o r s upe r s t r n c t u r a l a c t o r s , t o d e -t e r m i n e h o w t h e y f u n c t i o n a n d t h e d e g r e e t ow h i c h t h e i r i n t e r e s t s a r e i n a c c o r d . T h e r e s e a r c hs h o u l d be c o m pa r a t i ve , t o f a c i l i t a t e un d e r s t a n d -i n g o f t h e ke y va r ia b l e s . I t c o u l d c o m pa r e d i f f e r-e n t t e c h n o l o g i e s w i t h i n a s i n g l e in d us t ry , c o m pa -rable t echno logies in d i f fe ren t indus t r ie s , o r d i f -f e r e n t i n n o va t i o n c o m m un i t i e s a n d t e c h n o l o g i e s .P a r t i c u l ar l y r ic h f i n d in gs m i gh t c o m e f r o m a s t ud yc o m p a r i n g t h e d e v e l o p m e n t o f a t e c hn o l o g y i nd i f f e r e n t c o un t r i e s.I n i t i a l l y , r e s e a r c h m i gh t p r i m a r i l y be c o n -c e r n e d w i t h d e ve l o p i n g m e t h o d s o f d i m e n s i o n a l -i z i n g i n n o va t i o n c o m m un i t i e s , t e c h n o l o g i e s , a n dpa t h s o f t e c h n o l o g i c a l e vo l u t i o n . L a t e r i t w o u l dt e s t r e l a t i o n s h i p s . T h e d i s c us s i o n a bo ve s ugge s t ss e ve r a l p r o po s it i o n s , s o w e o f w h i c h h a ve be e nl i st e d i n T a b l e 2 . T h e o b j e c t i ve o f t h i s p r o g r a m o fr e s e a r c h w o u l d be t o d e ve l o p a s y s t e m a t i c a ~ l , !ge n e r a l i n s t i t u t i o n a l t h e o r y o f t e c h n o l o gy c o m -merc ia l i za t ion .

T h i s ge n e r a l t h e o r y s h o u l d h a ve s e ve r a l a t -t r i bu t e s. I t s h o u l d i n c o r po r a t e bo t h s t r uc t u r a l a n dfunc t iona l ana lys i s , i . e . i t should c rea te an under -s t a nd i n g o f t h e s t r u c tu r e ( n u m b e r o f m e m b e r s ,r a t e o f c h a n ge , n a t u r e o f l i n ka ge s ) o f i n n o va t i o nc o m m un i t i e s a n d h o w pa r t i c u l a r s t r uc t u r e s f u l f i l ld i f f e r e n t f un c t i o n s , r e qu i r e m e n t s , a n d p r o c e s s e so f i n n o va t i o n c o m m e r c i a l i z a t i o n . F o r e xa m pl e ,o n e m a y f in d t h a t t h e n u m b e r o f m e m b e r s o f a ni n n o va t i o n c o m m un i t y i s a s t r a i gh t f o r w a r d f un c -t i o n o f t h e n u m b e r o f t e c h n o l o g i c a l i n t e r d e p e n -d e n c i e s r e qu i r e d f o r t h e c o m m e r c i a l i z a t i o n o f a ni n no v a ti o n. A s t h e n m n b e r o f m e m b e r s i n c r ea s es ,s uc c e s s f u l c o m m e r c i a l i z a t i o n m a y d e pe n d o n t h ea b i li t y o f s up e r s t r uc t u r e o r ga n i z a t i o n s t o e s t a b l i s hi n f o r m a t i o n f l o w s l i nk i n g t h e n e w a n d o l d m e m -be r s .T h e n e w t h e o r y s h o u l d a l s o s pe c i fy t h e w a y s inw h i c h o r ga n i z a t i o n s a n d i n t e r - o r ga n i z a ti o n a l r e l a -t ionsh ips can sa t i s fy the func t ions , requi rem en ts ,a n d p r o c e s s e s o f t e c h n o l o gy c o m m e r c i a l i z a t i o n .

N o n - r o u t i n e i n f o r m a t i o n f l ow s be t w e e n t r a d e a s -s o c i at i on s , f o r i n s t a n ce , m a y o c c u r t h r o n gh v o h m -t a r y r e c o gn i t i o n a n d a c t i o n by s e pa r a t e a s s o c i a -t i o n l e a d e r s , t h r o ugh o ve r t e xpe c t a t i o n s a n d f a c i bRa t i o n by go ve r n m e n t a ge n c i e s , o r t h r o ugh r e l a -t i o n s a m o n g a s s o c i a t i o n s w i t h i n a b r o a d e r " e n -c o m p a s s i n g ' o r ' p e a k ' o r g a n iz a ti o n . T h e o r y s h t m l dh e l p u s u n d e r s t a n d t h e r a n g e o f o rg a n i z at i on a lr e l a t i o n s h i p s c a pa b l e o f f u l f i l l i n g p r o c e s s e s o rf un c t i o n s a n d t o s pe c i f y c o n d i t io n s f o r t h e s uc c e s so f e a c h .A sa t i s fac to ry ins t i tu t iona l theory o f t echno l -o gy c o m m e r c i a l i z a t io n s h o u l d i d e n t if y pa t t e r n s o fe vo l u t i o n o f i n n o va t i o n c o m m un i t i e s . Re s e a r c hm i gh t e xa m i n e , f o r e xa m p l e , w h e t h e r p r o f e s s i o n a ls o c i e ti e s i n va ri a b l y f un c t i o n e a r l i e r a n d t r a d e a s -s o c i a ti o n s f un c t i o n l a t e r i n th e c o m m e r d a l i z a t i o up r o c e s s . I t m i gh t i d e n t i f y t h e f a c t o r s n a r r o w i n gt h e n u m b e r o f r e l e v a n t o r g a n i z a t i o n s o v e r t i m ea n d t h o s e w o r k i n g t o e xpa n d t h e s i z e o f t h ec o m m u n i t y .

F i n a ll y , t h e o r y s h o u l d a c c o un t f o r h o w t e c h n o -l o g i c a l i n n o va t i o n i n f l ue n c e s t h e s t r uc t u r e a n df un c t i o n i n g o f c o m m un i t i e s a s w e l l a s h o w c o m -m un i t i e s i n f l ue n c e t h e p r o c e s s o f t e c h n o l o g i c a lc o m m e r c i a l i z a t i o n . S o m e i n n o va t i o n s d r a w upo nt h e c o m pe t e n c i e s o f e x is t in g c o m m u n i t y o r ga n i z a -t i o n s w h i l e o t h e r s r e qu i r e t h e i n t e g r a t i o n o f n e wc o m pe t e n c i e s a n d r e qu i r e n e w o r ga n i z a t i o n a l r e -la t ionsh ips . S t i l l o the r innova t ions represen t revo-l u t i o n a r y c h a l le n ge s t o e x i s t in g c o m p e t e n c i e s a n dl e a d t o t h e c r e a t i o n o f e n t i r e l y n e w po pu l a t i o n so f o r ga n i z a ti o n s . O r ga n i z a t i o n s t h a t s t a n d t o l o s ef r o m a n i n n o v a t i o n m a y s e e k t o b l o c k i t o r r e -s h a pe i t . T h e o r y n e e d s t o d i f f e r e n t i a t e t h e s t r uc -t u r a l a n d f un c t i o n a l c o n s e que n c e s o f va r y i n g d e -grees o f t echno logica l d i scon t inui ty .

~ n g e sAhem athy, W J. and K.B . Clark, 1985, Innovation: M app ~gthe winds of creative destruction, Re sea ~h Po~cy 14,3-22.Abernathy, W J. and J.M . Uttcrback, 1978, Patterns of indus-trial innovation, TechnologyReview80, 40--47.Aldrich, H. and 13. W hetten , 1981, Organization sets, ac~.innsets and networks: Making the mo st of simplicity, in: P .ND trom and W .H. Starbuck Editors), Handbookof Orga-


14/16

1 0 4 L . H . L y n n e t a /R e s e a r c h P o li cy 25 (1 996 ) 91 -1 0 6n/za t /ona l Des ign (Oxfor d Unive r s i ty Pr es s , New Yor k )385-408 .

Ar am, L D , 1992 , P r es umed S uper io r: Ind iv idua l is m andAm er ican Bus iness (prent ic e-Ha l l , Englewood-C~ffs_, NJ)Ar am, J . D , L . H. Lynn , and N. M. Redd y , 1992 , Ins t itu t iona lre la t ionships and technology commercial izat ion: Limita-f ious of mark et-based p ol /cy, Rese arch Pol icy 21, 409-421.As t l ey , G . 1985 , T he two eco log ies : Popu la t ion and commu-ni ty perspect ives on organizat ional evolut ion, Adm inis t ra-five._ S~ e-".~ . Q ,.,_a.~-.,..,~,~ , 2 2 4 - 2 4 i .

As cdey , G . and C . Fom br nn , 1987 , Or gan iza t iona l communi -t ies : An ecological perspect ive , in: S. Bacharach and N.DiT om as o (E di to r s) , Res ea r ch in the Soc iology of O r gan i -zat ions (JAI, New York) 163-185.Ayr es , R . , 1988 , Bar r i e rs and b r eak thr oughs : An expandingf r on ti e r s" mode l o f t echnology- indu s t r y li f e cyc le , T echno-w f i o n 7 , 8 7 - 1 1 5 .

Bar ne t t , W. and G . Car r o l l i 987 , Compe t i t ion and mutua l i smamon g ea r ly t e l ephone companies , Admin i s t r at ive Sc ienceQuar ter ly 32, 400-421.Beck et , M. , 1970 , Sociom etr ic locat ion and innovat iveness :Refor mula t ion and ex tens ion o f the d i f fus ion mode l ,Am er ican Sociological Review 35, 267-282.

Bo/sseva/n, J . , 1974, Fr iends o f Fr ien ds (Bas i l Blackweil , Ox-ford) .Bul tou, M. , R. Malm rose, and W .G. Ouch i , 1989, Ins t i tu t ionalaspects of indus try s t ruc ture: A comparat ive analys is ofin te r - indus av f inkages in the Uni t ed S ta te s and Japan ,Pa per p resen ted a t th e -Associat ion of Japaney' . B us inessS t' .- 'J :~s C o ~ fe r e ~ , San Fr anc i s co , Ca li fo rn ia .Br / t ta in , J ., and D. W holo ' , 1988 , Compe t i t ion and coex is -t ence in o r gan iza t iona l communi t i e s : Popu la t ion dynamicsin e l ec t r on ic s com ponen t s manufac tu r ing , in : G . Car r o ll(Editor), Ecolog/cal Models of Orgat~izations (13allinger,Cambr idge, Mass . ) 175-194.

Ber t , R . S , 1988 , T he s t ab il i ty o f Am er ican mar ke t s , Amer icanJourna l o f Sociology 94, 356-395.Car lsson, 13, 1993 , Technolog ical sys tems and econo mic

gr owth : Com par ing F in land , Sweden , J apan and the U ni t edStates , Workin g Pap er (Case W estern Reserv e Univers ,2 tj",Cleveland).Cads s on , 13. and IL S tank iewicz , 1991, On the na tu r e , func -t /on an d com pos i t ion o f t echnolog ica l s ys tems , Jou r na l o fE volu t ionar y E conom ics 1 , 93 -118 .Cohen , W. M. and ILC . Le in , 1988 , E mpi r i ca l s tud ie s o finnova t ion and m ar ke t s t r uc tu r e , in : R . Schmalens ee and

IL W i l lig (E d ito r s ) , Handboo k of Indus t ri a l Or gan iza t ion(Nor th -Hol land , New Y or k ) .Cons tan t , E . W . , 1984 , Comm uni t i e s and h ie r a rch ies : S t r uc -ture in the prac t ice of sc ience and technology' , in: R.Laudan (E di to r ) , T he Na tu r e o f T echnolog ica l Knowl -edge : . Are Mo de l s o f Sc ien ti f ic Change Re levan t? (K iuwerAcadem/c , Nor we l l , Mas s .) 27 -46 .

Cr oz ie r, M. an d J . C . T hoen ig , 1976 , T he r egu la t ion o f com-p lex o r gan ized s ys tem s , Admin i s t ra t ive Sc ience Q uar te r ly21, 547-570 .Dahmcn, E . , 1989, Development blocLs in indus tr ia l eco-

nomics , in: B. Car lsson (Edi tor ) , Indus tr ia l Dynamics :Technological , Organizat ional , and Structural Changes inIndus t r i e s and F i r ms (K luwer Academic , Bos ton , Mas s . )109-121.DiMagg io, P., 1988, Interes t a nd agency in ins t i tu t ional the-ory, in: L. Zucker (Edi tor ) , Ins t i tu t ional Pat terns andOrganizat ion s (Bal l inger , Cambr idge, M ass . ) 3-22 .

DiM aggio, P. and W . Powell , 1983, The i ron cage revis i ted:Ins t i tu t ional isomorphism and col lec t ive ra t ional i ty in or -ganiza tional fields, Am erica n Sociological P~eview48, 147-160.Dore, R.P. , 1986 , Flexible Rigidi t ies (Stanfo rd Univers i tyPress, Stanford, Calif.).Dos i , G. , 19 82, Technolog ical paradigm s and techn ologicaltrajectories, Research Policy 11, 147-162.Dos i , C. a nd L Orsen igo, 1988, Indus tr ia l s t ruc ture andtechnical change, in: A. Hee r t je (Edi tor ) , Innovat ion Tech-nology and Finan ce (Bas il BiackwelL New Y ork) 14-37.E van , W. , 1966 , T he o r gan iza tion-s e t: T owar d a theor y o finter -organizat ional re la t ions , in: J .D. Thompson (Edi tor ) ,App r oaches to Or gan iza t iona l D cs ign (Unive rs i ty o f P i t t s-burgh Press , Pi t tsburgh) 177.-191.

Fombr un , C J . , 1986 , S t r uc tu r a l dynamics w i th in and be tweenorganizat ions , Adminis t ra t ive Science Quar ter ly 31, 403-421.Fom brun, C .J ., 1 988, Craft ing an ins t i tu tional ly inform edecology of organizat ions , in: G. Car rol l (Edi tor ) , Ecologi-cal Mod els of Organizat ions (Bal l inger, Cambr idge , Mass . )223-240.

Free man , C. , 1988, Diffus ion: The spread ,~" new techn ologyto f i rms , sec tors and nat ions , in: A. ~[eer t je (Edi tor ) ,Innovat ion, Technolog y and Fina nce (Bas i l BlackwelL NewYor k) 38 -70 .Freem an, J . an d S.R. Bar ley, 1989, The s i=ategic analys is ofinterorganizat ional re la t ions in biotechuology, in: R.Lover idge and M. P i t t (E d i to r s ) , S t r at eg ic Managem ent o fTechnological Innovat ions , (John Wiley, Ne w York) .Ger lach , L. and G. Palm er , 1981, Ad aptat io n throu gh evolv-ing in te r dependence , in : P . Nys t r om and W. S ta r buck(E di to r s ) , Handbook of Or gan iza t iona l Des ign , Vol . 1(Oxfor d Unive r s i ty Pr es s , New Yor k ) 328-381 .Ger lach, M . , 1992, All iance Capi ta l ism: The Social Organiza -t ion o f J apan es e Bus ines s (Unive r si ty o f Ca l i fo r nia P r es s,Berkeley).

Gold, B. , 1981, Technolog ical di ffus ion in indus try: Rese archneeds and s hor t comings , Jou r na l o f Indus t r i al E cono m ics29, 247-269.Granovet ter , M. , 1985, Economic ac t ion and social s t ruc ture:T he p r ob lem of embedd ednes s , Amer ican Jour na l o f Soc i -ology 91, 481-510.

Grnentz ig , A. , 1982, Resul ts from coronary angioplas ty andimpl ica t ions fo r the fu tu r e , Amer ican H ear t Jou r na l 103 ,779-783.Hender s on , R . , 1993 , Und er inves tment and incom pe tence a sr e s pons es to r ad ica l innova t ion : E v idence f r om the pho-to l i thogr aph ic a lignment equ ipmen t indus t r y , Rand Jour -nal of Econ omics 24, 248-270.


15/16

L . H . L y n n e t a t / R e s e a r c h P o li cy 25 (1 996 ) 91 -1 0 6 1 0 5Henderson, R. and K.B. Clark, 1990, Architu~tural innova-tion: The reconfiguration of existing product technologiesand the failure o f established firms, Admir,[~trative Sci-ence Quarterly 35, 9-30.Hirsch, P., 1975, Organizational effectiveness and the institu-tional environment, Administrative Science Quarterly 20,327-344.Imai, K., 1992a, The Japm~ese pattern of innovation and itsevolution, in: N. Rosenberg, R. Landau and D. Mowc,-3,(Editors), Technology and the Wealth of Nations (Stan-ford University Press, Stanford, Calif) 225-246.lmai, K., 1992b Japan's corporate networks, in: S. Kumon andH. Rosovsky (Editors), The Political Economy of Japan,Voi 3, Cultural and Social Dynamics (Stanford UniversityPress, Stanford, Calif.) 198-230.Jay, E., 1964 The concept of 'field' and 'network ' in anthropo-logical research, Man 64, 137-139.Justman, M. and M. Teubal, 1986, Innovation policy in anopen economy: A normative framework for strategic and

tactical issues, Research Policy 15,121-138.Justman, M. and M. Teubal, Technological infrastructurepo

linking technologies and ions the iunnovation community framework

Documents