Wilfred Dolfsma

Path dependence, initial conditions, and routines in organizations: The Toyota production system re-examined

The notion of path dependence was first explicitly used to explain prevailing technical standards (David 1985; Arthur 1989). It has also been discussed in recent decades as a useful way of analysing the development of a range of other subjects, including national innovation systems (Iammarino 2005), industrial districts (Kenney and von Burg 1999) and politics (Pierson 2004). For a long time, at the micro-level of individual organizations a much less elaborate use of the concept has been made (with the notable exception of David 1994) and it is only recently that interest in this field of application has expanded further (for example, Sydow et al. 2005). I argue that using path dependence for the historical analysis of organizational change can be very fruitful. To do so, however, the key elements of path dependence — sensitivity to initial conditions and lock-in mechanisms — need to be conceptualized more precisely and linked to one another.

Structure, Agency and the Role of Values in Processes of Institutional Change

Research on institutional change has flourished ever since the debate on agency and structure moved away from the previously uncompromising positions which emphasized either agency or structure. A conceptual compromise is sought here in a focus on the processes of institutionalization, which enables us to move beyond the idea that institutions are mere mental constructs or the point of view that behaviour is the mere reproduction of institutional patterns. Contributing to an understanding of the processes of institutional change, this chapter analyses institutional change as instigated by tensions triggered by discrepancies perceived by agents between concrete institutional settings and the socio-economic values they are expected to represent. The Social Value Nexus that is presented below introduces an emphasis on the perceived legitimacy of institutions. Describing (types of) tensions between socio-cultural values and institutional settings, the chapter explores the ways in which structure, agency and values interact in processes of institutional change.

Rich Ties and Innovative Knowledge Transfer within a Firm

We show that contacts in formal, informal and especially multiplex networks explain transfer of innovative knowledge in an organization. The contribution of informal contacts has been much acknowledged, while that of formal contacts did not receive much attention in the literature in recent decades. No study thus far has included both these different kinds of contacts in a firm, let alone considered their combined effect. The exact overlap between formal as well as informal contacts between individuals, forming multiplex or what we call rich ties because of their contribution, especially drives the transfer of new, innovative knowledge in a firm. Studying two cases in very different settings suggests these rich ties have a particularly strong effect on knowledge transfer in an organization, even when controlling for the strength of ties. Some of the effects on knowledge transfer in an organization previously ascribed to either the formal network or the informal network may actually be due to their combined effect in a rich tie.

Innovation systems as patent networks: The Netherlands, India and nanotech

Abstract Research in the domain of ‘Innovation Studies’ has been claimed to allow for the study of how technology will develop in the future. Some suggest that the National and Sectoral Innovation Systems literature has become bogged down, however, into case studies of how specific institutions affect innovation in a specific country. A useful notion for policy makers in particular, Balzat and Hanusch (2004 Recent trends in the research on national innovation systems Journal of Evolutionary Economics 14(2): 197–210) argued that there is a need for NIS studies to develop complementary and also quantitative methods in order to generate new insights that are comparable across national borders. We use data for patents granted by the World Intellectual Property Organization (WIPO) to map innovation systems. Groupings of patents into primary and secondary classes (co-classification) can be used as relational indicators. Knowledge from one class may be more easily used in another class when a co-classifi cation relation exists. Using social network analysis, we map the co-classification of patents among classes and thus indicate what characterizes an innovation system. A main contribution of this paper is methodological, adding to the repertoire of methods NIS studies use and using information from patents in a different way. Policy makers may also find benefits in the social network analysis of the complete set of patents granted by the WIPO to firms and individuals in a country. Social network analysis indicates what innovation activity occurs in a countries and which fields of technology are likely to give rise to innovative products in the near future. We offer such analysis for the Dutch and Indian Innovation Systems. This social network analysis could also be done for a sector innovation system, and we do so for nanotech to determine empirically the knowledge field relevant for this emerging scientific domain.

Market and society: How do they relate and how do they contribute to welfare?

As we observed in the introductory chapter, the relationship between market and society is a hotly debated issue in the social sciences. The ideological overtones of the debate concern the contribution of the market to welfare—usually conceptualized in material terms—and to well-being. I surmise that both market and society can contribute to welfare and to well-being.

Journals as constituents of scientific discourse: Economic heterodoxy

Purpose – This paper aims to provide a view and analysis of the immediate field of journals that surround a number of key heterodox economics journals.Design/methodology/approach – Using citation data from the Science and Social Science Citation Index, the individual and collective networks of a number of journals in this field are analyzed.Findings – The size and shape of the citation networks of journals can differ substantially, even if in a broadly similar category. Heterodox economics cannot (yet) be considered as an integrated specialty: authors in several journals in heterodox economics cite more from mainstream economics than from other heterodox journals. There are also strong links with other disciplinary fields such as geography, development studies, women studies, etc.Research limitations/implications – The analysis is limited by its reliance on citation data in the Science and Social Science Citation Indexes provided by Thomson‐Reuters.Practical implications – The analysis shows not only when...

Revisiting Institutionalist Law and Economics - The Inadequacy of the Chicago School: The Case of Personal Bankruptcy Law

From an evolutionary perspective, bankruptcies may be seen as an important selection mechanism. Bankruptcy, however, has not received much attention in the economics literature. AI> the quotation from Smith, above, intimates, bankruptcy is an unpleasant process for individuals, their families and for wider society. Bankruptcy laws differ widely across countries and even within a federalized country such as the United States. Filing practices within a country also differ substantially across regions as well as among social groups (Fay, Hurst, and White 2002). Thus, bankruptcy is not the uncomplicated selection mechanism in the economic realm it sometimes is believed to be. This paper discusses how one may evaluate bankruptcy regimes from an economic perspective. It contrasts the instrumental rationality approach of the Chicago {law and economics) school with the instrumental valuation principle (IVP) from original Institutional Economics (OlE) in the context of personal bankruptcy.

IPRs, Technological Development, and Economic Development

In the year 2000 some

Globalization, Social Capital and Inequality

142 billion in royalties were paid internationally by users of a specific piece of knowledge that were protected under Intellectual Property Right law (IPR) to those parties that owned these rights. Under current circumstances where knowledge & innovation play an increasingly significant role in the economy (Foray & Lundvall 1996, Cowan, David and Foray 2000, Cooke 2002, Dolfsma & Soete 2006, Dolfsma 2005). IPRs have become increasingly prominent in debates and are almost unanimously deemed to favor economic development by policymakers, and certainly by policymakers in developed countries. While it has been acknowledged that some parties may benefit more from a system of IPRs than others, in relative terms a Pareto improvement is the expected outcome (Langford 1997). This has not always been the case. In addition, the academic (economic) community is almost unanimous about the system of IPR overshooting its goals. This has been the motivation to include IPRs in the WTO negotiations. The TRIPS agreement (Trade-Related Aspects of Intellectual Property Rights) has resulted in 1994 from these negotiations. Especially during the 1990s the number of patents granted has grown tremendously despite the fact that many a scholar still supports Machlup’s (1958, p.28) conclusion that:“it would be irresponsible, on the basis of our present knowledge of its consequences, to recommend instituting one. But since we have had a patent system for a long time, it would be irresponsible, on the basis of our present knowledge, to recommend abolishing it.”From other corners, where specific effects of IPRs are considered, a different and less circumspect sound may be heard. Examples of this are attempts to make available HIV/AIDS drugs at a reduced price compared to what the pharmaceutical companies that have the patents on these drugs demand. I will focus on patents.Empirical and theoretical findings bearing on the question of IPRs’ effect on technological development, and thus prospect for economic development, are reviewed. Static and dynamic effects are distinguished. Areas where static effects may be expected include transfer of knowledge, balance of payment effects, effects for large as opposed to small firms, and effect on the ‘extent of the market’. Areas for dynamic effects include technological development and technological preemption. The list may not be exhaustive, and effects are interlocking: they may be mutually reinforcing or they may conflict. I will mostly focus on ‘dynamic’ effects.

Innovation networks: Managing the networked organization

This volume investigates the relationship between globalization, inequality and social capital, and reveals that although strongly related, these ideas are also highly contested. The authors elucidate the interactions between these concepts, looking in detail at the conflicts and competitiveness which can arise at both the national and organizational level.