GRA 3154 International Perspectives in Innovation

Technological paradigms
and technological
A suggested trajectories
interpretation of the determinants
and directions of technical change

-Giovanni Dosi

Swagat R. Pyakurel
Student number: 08926841
MSc, Innovation and Entrepreneurship

Background

Similarities between science and technology (in procedures

and nature) paradigms

Inadequacy of one-dimensional market centric

explanation of emergence of new technological paradigm.

1. Introduction

Relationship between economic growth and change, and

technical progress.

Demand-pull and Technology-push theories and their

weaknesses.

Technological paradigm and technical trajectory.

2. Critical review of the theories of

technical change

Demand pull: recognition of needs by producers followed by

attempts to satisfy those through technological efforts.

Needs expression of preferences - increased demand (of goods with preferred

characteristics) - producer entry proper innovative process product

Market signalling

Criticism (Demand pull)

Technological changes as being passive and reactive to
market conditions.

Inability to explain selection and timing of a certain

technological development instead of others

Neglect of change in inventive capability over time

3. Technological paradigm and technological

trajectories
Broad definition of technology
Technological paradigm and analogy with scientific paradigm
Technological trajectory
-

A normal problem solving activity within a technological paradigm

Exclusion effect
Economic forces, and institutional and social factors operate as a
selective device in establishment of a certain technology
Economic criteria direct the actual path
Trajectories might be more or less powerful and complementary.
Superiority of one technological path over another (determination)

Institutional effect on selection of technology and their

importance
- Weakness of market mechanisms in selection of technological
directions
Selection criteria:
Excluding possible developments (negative criteria)
marketability, cost saving capability (positive criteria)

Final selection is through market as the selecting device.

Supply side define the paradigm and

markets define the trajectories.

4. Technical change and industrial structure

First phase: emergence of new technologies characterized

by emergence of new firms

Second phase: Oligopolistic maturity

Conclusions
Incremental versus radical innovations:
normal technical progress versus emerging technological
paradigms

Procedures of technical change

Cumulativeness of technical advances

Importance of institutions

References

David J. Teece, Dosi's technological paradigms and trajectories: insights for

economics and management, ICC(2008)17(3):507-512.

Arianna Martinelli , Technological trajectories and Industry evolution: The case of the
Telecom Switching Industry., DRUID-DIME Academy Winter 2008 PhD Conference,
(Accessed 28th Aug, 2010,
http://www2.druid.dk/conferences/viewpaper.php?id=1947&cf=28)

Discussions