New technological path creation and the role of institutions in different geo-political spaces

Abstract

This paper analyses the roles of institutions in facilitating or impeding the creation of new technological pathways in different countries. It is argued that the successful invention, innovation and diffusion of new technologies require the co-evolution of relevant institutions. It is argued that informal institutions, through their impact on people’s beliefs, perceptions and consequential behaviour, crucially influence whether formal institutions co-evolve with technological development and changing circumstances. At the same time, the rigidity of the pre-existing formal institutional arrangements impacts on whether agents can stimulate their co-evolution with the introduction of new technologies. These arguments are explored by comparing the creation of new wind power technologies in Britain and Germany since the 1970s.