From Firm Network to a Sector-System of Production and Innovation: A Case Study of Innovation Policy Initiative

Abstract

This paper examines innovation policy making during the transition of innovative ideas into mature industries within building/construction and mineral extraction/mining industries. The main focus is how interaction occurs between major stakeholders and intermediating actors and how industrial change processes are orchestrated. A case study approach examines the rather complex processes occurring within industrial sector development. Two main success criteria were observed: (1) continuity in initial vision and leadership and (2) a clear intention to achieve strategic interplay and knowledge fusion between heterogonous industrial sectors. Currently, this has been achieved in a classic way using R&D and technology development approaches combined with explorative market development to co-ordinate and allow knowledge fusion between the sectors. The transition process is illustrated in four phases: (1) idea and start-up, (2) formation of a technical R&D programme and networking, (3) consolidation of actor networks and formation of an embryological innovation system, and (4) development of a more sector-based production and innovation system.