Industrial Dynamics

The division of Industrial Dynamics is a research group within the department of Industrial Economics and Management at the Royal Institute of Technology (KTH). Industrial Dynamics represents that part of this discipline that focuses on industrial and technical change.

Within our field of knowledge we teach and research within our field of knowledge but also within other areas within the discipline of Industrial Economics and Management. You can reach each one of us on this page – but before that we wish to deepen your familiarity with Industrial Dynamics.

A multidisciplinary knowledge field

For some time now the discussion on “the new production of knowledge” has prevailed among academics. The essence of this discussion is that in the advanced industrial society – some call it post-industrial as the classical industry production today only accounts for about 20% of the value produced – knowledge formation processes become increasingly multi- and cross-disciplinary. This is valid for the business world – where the advanced companies often are faced with knowledge- and competence problems that exceed the capabilities and educational background of the individual employees – as well as for academia where knowledge work often challenges the traditional disciplinary boundaries.

Industrial dynamics is a “modern” knowledge field in the sense that it has evolved from a number of academic disciplines. The researchers and lecturers within the field find their inspiration in fundamental economic disciplines (economic theory, business administration, industrial economy, technology) but also in sociology, history (economic as well a technological), and economic geography amongst others. The knowledge profile varies between different researchers and between different universities. At the KTH, the discipline is characterised by a strong technology focus: in the research and teaching of industrial phenomena, of entrepreneurship and management problems, the technological changes are central.

What is it all about?

We study industrial and technological transformation processes and the mechanisms behind these. These processes can be studied on a macro level (society-, global, national) as well as a micro level (e.g. corporate level) but also – a predominantly – at systems levels in between, so called “meso levels”.

Innovation theory is central for the knowledge field. In short, the modern innovation theory has its roots in the research tradition that has evolved from the economist Joseph Schumpeter’s research around the two world wars of the 20th century. It was Schumpeter who introduced the concepts of “innovation” and “entrepreneur” and he was the first to call attention to the need for venture capital. At the onset of this research it was the entrepreneurial problem that was in focus; in the end he studied whether an economy dominated by large firms could preserve its creativity and innovative ability.

The modern innovation research – with its roots in the 1970s and 1980s – has to a large extent inherited these old research problems. Essential to this research has been the development of evolutionary and institutional economic theory. After the Second World War, a significant body of research emerges which – in brief – can be said to advance innovation theory towards a management focus (management of innovation). This perspective is also a part of Industrial Dynamics at the KTH.

The original innovation concept comprised all creative combinations that were introduced on the market or in the industrial/economical system. The innovation could thus be organisational as well as technical. IKEA’s combination of logistics, design and a production process involving the final customer is innovative in the spirit of Schumpeter as is Ryanair’s development of a radically new business model within the airline industry.

The new theory of the firm, which focuses on how firms can transform its resources into dynamic capabilities, is a central starting-point in the more firm-based analysis of industrial change. The differences in firms’ capabilities create a variety in terms of competitive advantage: also seemingly low-tech companies can create capabilities that are competitive on a global scale. This is a question of entrepreneurship but also, importantly, about the management of innovation and technology.

This brings us to the context, or setting, of industrial dynamics. Part of the research here is concerned with clusters, development blocs and innovation systems – national, regional, sectoral etc. Also in these contexts, our research focuses on the technological systems. Not least in today’s globalised economy, and the industrial growth of countries such as India and China, the question of the role and importance of the local in a global world becomes topical: are there “sticky places in a slippery world”? How will companies in e.g. Sweden meet the new global competition? Some of the research questions we address on these questions are for instance how companies can establish and maintain innovative activities and production on a global level? Here we also have some obvious policy problems: how can we assure that important parts of the globally organised industrial and technical activists remain in the own region? This is another research issue that we address.

Industrial and technical transformation processes can also be studied from a sustainability perspective. Hopefully, the industrial transformation will decrease the use of non-renewable resources and that more resource-efficient methods will be introduced. Also, the claims on the renewable resources have increased drastically in recent years, leading to an increase focus on and interest in natural resource based industries (NRBIs) and related technologies. Since the autumns of 2007, we have a large research program on the natural resource based companies – and the related technologies – new role in a globalised knowledge economy characterised by rapid growth by “catching up” countries and an increasing climate problem as a consequence of global warming. This program is run in cooperation with the Centre for Technology, Innovation and Culture (TIK) at Oslo University.

IDA - our working seminars

Within the division we also arrange a regular working seminar. At the seminar, work in progress (articles, book chapters, research applications etc) are presented and critically reviewed by colleagues – a classical manner of improving the quality of academic research. Please contact Michael Novotny if you wish to participate in the seminars, which are open for colleagues and doctoral students from adjacent research areas.