Title: Institutional design for complex technological systems

Authors: Joop Koppenjan, John Groenewegen

Addresses: Faculty of Technology, Policy and Management, Delft, University of Technology, Jaffalaan 5, 2628 BX Delft, The Netherlands. ' Faculty of Technology, Policy and Management, Delft, University of Technology, Jaffalaan 5, 2628 BX Delft, The Netherlands

Abstract: Complex technological systems like telecom, energy and transport infrastructures are subject to institutional (re)design. Institutions concern different levels of analysis like laws and regulations as well as contracts and organisations which regulate and coordinate the behaviour of actors in complex networks. In relation to technological and process design, we discuss how efficient and effective institutions can be designed according to structure behaviour in such a way that socially desired objectives are realised. After analysing the stabilising and instrumental role of institutions, we introduce a four-layer model, which offers the building blocks for identifying the steps to be considered in processes of institutional design. After having discussed the constraints in designing institutions, we present a generic model meant to be helpful in structuring the process of designing institutions in complex technological systems.

Keywords: institutional design; institutions; multiactor systems; strategic uncertainty; collective action problem; transaction costs; institutional arrangements; complex technological systems; technological design; process design; policy science; institutional economics; institutional structure; technology.

DOI: 10.1504/IJTPM.2005.008406

International Journal of Technology, Policy and Management, 2005 Vol.5 No.3, pp.240 - 257

Published online: 19 Dec 2005 *

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