Read the summary and the most important questions on Societal Challenges and Innovation Theories

• 1 Tutorial #1 - Lock-ins & societal challenges – Flor Avelino

• 1.1 G.C. Unruh, 2000. Understanding carbon lock in, Energy Policy

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• What does the paper of Unruh argue? Carbo lock-in

  Industrial economies have been locked into fossil fuel-based energy systems, through a process of technological and the institutional co-evolution, driven by path- dependency

• What is a 'technological-Institutional complex (TIC)'

  A TIC arises because of a large technical system like electricity generation is used and diffused. TIC develops through path-dependency, a co-evolution process involving positive feedback, among infrastructures and organizations. 
  
  The Techno-Institutional Complex (TIC) is a self-reinforcing system composed of large technological systems and the institutions that govern their diffusion and use. 
  
  
  Once in place it difficult to replace when new technologies arises.

• Barriers to diffusion of carbon-saving technologies

  • The economy is a top-down structured
    
  • It's assumed the economy functions efficiently.

  
  Example 
  focus on microeconomic decision making not effective. Macro-level forces can create barries to adoption. 

• Four major classes of increasing return

  • Scale economies involve declining unit production costs as fixed costs are spread over increasing production volume. 
    

  
  

  • Learning economies improve performance and reduce costs as specialized skills and knowledge accumulate through production and market experience. 
    

  
  

  • Adaptive expectations arise as increasing adoption reduces uncertainty and both users and producers become increasingly confident about quality, performance, and permanence. 
    

  
  

  • Network economies emerge from the interrelations among technological systems and users. An example of the lock-in of a dominant design is the establishment of the gas-powered internal combustion engine as the source of automobile propulsion. 
    

• Lock-in of interdependent technological systems

  These Network externalities arise from the interdependence of technologies, infrastructures, industries, and users, and can be multiplied among subsystems. 

• Co-evolution of technological with Prvate institutions

  The social co-evolution with technology can have a lasting impact on individual preferences, as expectations and preferences adapt to the dominant technological system in a path-dependent manner.

• Lock-in Publc institutions,

  Once established the governamental instirtutions tend to tpersist an this can lead to lock in conditions. The interaction between government and social networks can intensify lock-in.

• 1.2 Negro, S. O., Alkemade, F., & Hekkert, M. P. (2012). Why does renewable energy diffuse so slowly? A review of innovation system problems. Renewable and sustainable energy reviews

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• Two different paradigm shifts can explain the reason for this slow diffusion.

  1. The neoclassical economic paradigm, which focuses on market failure
     
  2. to the inertia in large technical systems like the energy systems and the interrelations between energy systems and the economy.

• 1.3 Wanzenböck, I., Wesseling, J. H., Frenken, K., Hekkert, M. P., & Weber, K. M. (2020). A framework for mission-oriented innovation policy: Alternative pathways through the problem–solution space. Science and Public Policy

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• Mission Oriented Policy

  Mission-oriented innovation policy (MIP) is gaining renewed interest in addressing these challenges, ranging from climate change to aging and security. 

• Re-newed MIP focusses on societal challenges and have different designs (wicked ness op the problem)

  These designs are on the degree of wickedness; this refers to the complexity and the different dimensions. Characterized by:
  
  - Contestation refers to the degree of normativity related to a policy issue and the resulting conflicts of interest from social pluralism and stakeholder divergence.
  - Complexity refers to the multi-scalar and multi-dimensional nature of societal problems to be addressed by policy.
  - uncertainty refers to the lack of knowledge or limited availability of evidence to determine policies.