Endogenous sources of path generation in a path dependent industry

ABSTRACT

This paper investigates and conceptualises industry endogenous sources of innovation in a context of path dependency. With an embedded case study of the mature multi-technology lighting industry, it considers two cases of technology generation (fluorescent lamps and light-emitting diodes) that have occurred under the dominance of established incandescent technology. The results demonstrate the existence of common driving forces (variety of performance criteria and variety of lighting applications) behind the development of the existing path and the generation of two new paths. Such common driving forces indicate the existence of a reactive sequence or a logical causal relationship between the existing and the new paths, which serve as an enabling mechanism in endogenous path generation.

KEYWORDS:

• Path dependency
• path generation
• industry endogenous innovation
• reactive sequences
• lighting industry

Acknowledgements

Comments from two anonymous reviewers are gratefully acknowledged.

Disclosure statement

No potential conflict of interest was reported by the authors.

Notes on contributor

Ksenia Onufrey is a PhD Candidate at Linköping University, Sweden. Her research is focused on technology dynamics and preconditions for innovation in mature industries. In 2014, she defended her Licentiate thesis on technology dynamics in multi-technology industries.

Notes

1. The term ‘path generation’ was introduced by Meyer and Schubert (2007) to describe the process of appearance and early development of a new path.

2. Throughout the 1980s and 1990s, not only CFL, but also halogen and xenon lamps were considered as drivers for the technological revolution in the lighting industry. This indicates that while change was expected, industry leaders were not over-focused on one particular technology.

3. A time frame of 30 years is chosen as over that period annual reports of at least one of the companies are available.