Technical, Economic, and Social Coordination Requirements of Internet-Based Innovation
30 Pages Posted: 23 Jul 2019
Date Written: July 21, 2019
The paper explores the role of coordination mechanisms with an emphasis on next generation digital innovations, many of them related to the Internet of Things (IoT) and 5G wireless services. Much of the discussion on the conditions that support Internet-based innovation focused on modular innovations. These were indeed a major driver of innovation in during much of the development of the Internet. While many of the new services can be configured as modular projects, others, for example cyber-physical systems supporting smart cities or autonomous vehicles, require coordination efforts that go beyond the relevant market players and involved public sector actors and the development of social norms that support these innovations. We are particularly interested in the role of policy in facilitating the provision of appropriate coordination mechanisms. The discussion shows that some situations may require new forms of proactive public policy at the local, state, and national level, including coordinated rollout of complementary infrastructures, support for public interest innovation, and a redesign of regulation and legislation.
Keywords: digital innovation, coordination mechanisms, evolutionary search, modularity, complementarity, architecture, system of systems, innovation policy
JEL Classification: L51, L86, L96, O33, O35
Suggested Citation: Suggested Citation