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Complementarity formation mechanisms in technology value chains

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  • Mäkitie, Tuukka
  • Hanson, Jens
  • Steen, Markus
  • Hansen, Teis
  • Andersen, Allan Dahl

Abstract

Recent literature has begun to discuss complementarities between sectors and technologies in the context of sustainability transitions. This paper contributes to this literature by theorizing complementarity formation mechanisms underlying such positive interactions within and across technology value chains. It pursues empirically founded theory building based on a case study of innovation in battery-electric, hydrogen and liquefied biogas technologies in Norwegian coastal shipping. Three complementarity formation mechanisms in technology value chains are identified: synchronization, amplification, and integration. Synchronization points to the need for co-development between the input and user sectors of a technology value chain. Amplification refers to the necessary expansion of input sectors to match the growing demand in user sectors. Finally, integration highlights the potential of convergence between different technology value chains in one or more user sectors. The paper concludes with a discussion of how policy may leverage such complementarity formation mechanisms to foster innovation in zero‑carbon technologies.

Suggested Citation

  • Mäkitie, Tuukka & Hanson, Jens & Steen, Markus & Hansen, Teis & Andersen, Allan Dahl, 2022. "Complementarity formation mechanisms in technology value chains," Research Policy, Elsevier, vol. 51(7).
    • Handle: RePEc:eee:respol:v:51:y:2022:i:7:s004873332200083x
    DOI: 10.1016/j.respol.2022.104559
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    2. Huiwen Gong & Allan Dahl Andersen, 2022. "The role of natural resources in accelerating net-zero transitions: Insights from EV lithium-ion battery Technological Innovation System in China," Working Papers on Innovation Studies 20221001, Centre for Technology, Innovation and Culture, University of Oslo.
    3. Wilde, Kerstin & Hermans, Frans, 2024. "Transition towards a bioeconomy: Comparison of conditions and institutional work in selected industries," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 50, pages 1-1.

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