Development blocks in innovation networks: The Swedish manufacturing industry, 1970-2007.

The notion of development blocks (Dahmén, 1950, 1991) suggests the co-evolution of technologies and industries through complementarities and the overcoming of imbalances. This study proposes and applies a methodology to analyse development blocks empirically. To assess the extent and character of innovational interdependencies between industries the study combines analysis of innovation biographies and statistical network analysis. This is made possible by using data from a newly constructed innovation output database for Sweden. The study finds ten communities of closely related industries in which innovation activity has been prompted by the emergence of technological imbalances or by the exploitation of new technological opportunities. The communities found in the Swedish network of innovation are shown to be stable over time and often characterized by strong user-supplier interdependencies. These findings serve to stress how historical imbalances and opportunities are key to understanding the dynamics of the long-run development of industries and new technologies.