Socio-technical regimes and heterogeneous capabilities: the Swedish pulp and paper industry's response to energy policies

Abstract

Based on a study of policy-induced changes in the Swedish pulp and paper industry, this paper follows a process of socio-technical regime destabilisation. Results from the study show that in industries where established firms have significant power, processes of endogenous renewal are more likely to destabilise established regimes than processes based on niche solutions. Further, the study shows how policy measures aimed to destabilise the current regime may result in different responses, owing to the different capabilities of individual firms. The analysis suggests that heterogeneous capabilities within established industries provide possibilities for policy makers to initiate change.

Keywords:

• pulp and paper industry
• energy
• socio-technical regime
• transition
• capabilities

Notes

This insightful note was raised by an anonymous reviewer.