Changing network structure in the organization of knowledge: the innovation platform in the evidence of the automobile system in Turin

Abstract

This paper borrows from complexity theory insights into the transformation of network structure in order to explain the changes in how economic actors and their organizations acquire and coordinate innovative and productive capabilities. Through the illustrative evidence of organizational change that had occurred in the automobile industry in the area of Turin over the last 40 years, this paper describes how transformations in the structure of interactions between firms are steered by the modification in the pattern of specialization and differentiation in the capabilities and technological skills of economic actors. The automobile system in Turin is characterized by the emergence of a distributed innovation platform, which is seen as a major innovation in the organization of innovation and technological knowledge in the system.

Keywords:

• complex systems
• networks
• organizational change
• platforms
• technological knowledge

JEL Classification :

• O31
• O32
• O33

Acknowledgements

I acknowledge the useful comments and suggestions of Cristiano Antonelli, Davide Consoli, Koen Frenken and David Lane. The financial support of the Collegio Carlo Aberto through the BRICK, the University of Torino with the local research grants in the years 2007 and 2008 and the European Union Directorate for Research, within the context of the Integrated Project EURODITE (Regional Trajectories to the Knowledge Economy: A Dynamic Model) is also acknowledged.

Notes

Becker and Zirpoli (2007) articulate an in-depth analysis of the corporate strategy implemented by FIAT in the last phase described by this paper. In particular, Becker and Zirpoli focus on and develop the implications for the strategic management of product innovation. Their emphasis is on the changes introduced in the product architecture as a consequence of organizational transformation at the supply chain level, while this paper is focusing on the transformation of the structure, or architecture, of the innovation network in which FIAT is embedded.