Maria Altunay, Innovation and R&D Management

The diffusion of renewable energy technologies is vital for achieving climate targets. While advanced technological solutions are already available, the diffusion depends on market and government actors, and prevailing beliefs and norms in society. To facilitate transformative change, it is therefore essential to understand the relation between actors and established institutional structures. Such understanding can support strategic action rather than reliance on external shocks to create windows of opportunity. This thesis explores how regulatory, cultural-cognitive, and normative institutions influence actor activities in sociotechnical change, and how actors, in turn, shape institutionalization. More specifically, this thesis aims to explain how institutional change unfolds across market and state sectors in sociotechnical systems.

To this end, the thesis employs a case study of solar photovoltaics (PV) development in Sweden and integrates theoretical lenses of business models and business collaboration with-in the market sector, policymaking and implementation in the state sector, and policy feed-back to investigate co-evolution between the two sectors. The empirical basis comprises extensive qualitative data on Swedish solar PV development, traced retrospectively over the period of 1996 – 2025. The findings demonstrate that a combination of regulatory, cultural-cognitive, and normative institutions shape the activities of both market and state actors, resulting in heterogeneous responses based on organizational ownership, identity, and logics. The thesis further emphasizes the importance of comprehensive institutional support for sociotechnical change by comparison of two cases: the slowed diffusion of energy communities, characterized by limited institutional support and weak interaction between market and state sectors; and the successful case of solar PV, where actors created favourable institutional conditions, supported by extensive cross-sectoral interaction.

The thesis contributes to transitions research by offering a more balanced understanding of actor heterogeneity, not only within the market sector, but also in the state sector, and by demonstrating how co-evolution between the two shapes institutional change. Furthermore, it presents a rich empirical account of institutional dynamics, enabling the identification of action points for the transformation of sociotechnical systems. A key policy implication is the need to balance stable and transparent long term policy direction with ongoing coordination and adjustment as system dynamics evolve.