Path dependence:: restricting or facilitating technical development?

The existence and importance of path dependence has been observed in a number of technological studies. The main effect of path dependence has been described in terms of restrictions or as something that is hindering the development of new innovations and new products. In this paper, based on a case where IKEA is demanding a new "green" catalogue paper from its suppliers, a complementary effect is observed and discussed. Path dependence can also facilitate innovations. The reason is that a certain resource item always is part of different resource collections, following different paths, When new crossroads of such paths are created, there are possibilities to find new combinations. In this case, the new demanded product is distinctly different as compared to the traditional catalogue paper - it is an innovation. The development of the new catalogue paper could take advantage of earlier investments in certain production facilities and earlier experiences in specific supplying units. These resources were parts of other resource collections, following other paths as compared to the paper product, Although the combinations of new crossroads of path dependence seemed to facilitate the development of a new product, it was not a smooth process, working more or less automatically. The moving of a certain resource in relation to other resources meant struggling with a lot of adaptations, including considering how these affected other resources. An important theoretical conclusion of the paper is the importance of friction in the business world. (C) 2002 Elsevier Science Inc. All rights reserved.