Innovation Dynamics of Large, Complex, Technological Products in a Monopsony: The Case of ESA Science Missions

Abstract

The roles of actors in a particular class of complex technological system - the ESA science mission - are mapped onto a competitive functional framework in order to identify key differences imposed by the market structure. Three general results are observed: there is no clear separation between "buyers" and "sellers," the governing driver is an explicitly defined need-based "pull" and a high level of technological maturity is required before a new capability can be incorporated into the product development process. They are explained in terms of the incremental impacts of the complexity of the system, in a monopsony market structure with the government as monopsonist. A preliminary model is proposed and policy implications discussed.