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Survival of the Unfit

Path Dependence and the Estonian Oil Shale Industry

Rurik Holmberg

Estonia is the only country totally dependent on oil shale in its energy system. This fossil fuel exists in enormous quantities around the world, but nowhere else has it become a dominant energy source. The main purpose with this book is to explain why the Estonian oil shale industry, afflicted with seemingly insurmountable problems, has not only managed to survive but done so in an extremely volatile institutional environment. Was this survival a result of domestic, conscious choices or was it a path that, once embarked upon, could not be deviated from due to various constraints of institutional and cognitive character? In brief, were the seeds of a technological trajectory sown in the very beginning, which could then be altered only at huge costs?

By using the concept of path dependence, it can be explained how a certain development path is embarked upon as a result of small, almost random steps, while change becomes increasingly difficult. In the academic debate on path dependence it is asked why and how inferior technologies can not only survive but even thrive. Others claim that such phenomena are basically illusions. This book argues that what appears to be an inferior path might, when seen from another angle, actually be perceived as an adequate solution, at least temporarily.

Rurik Holmberg is a researcher at the Department of Technology and Social Change at Linköping University. This book is his doctoral thesis.

Rurik Holmber

g

Survi

val of the Unfit

2008

Linköping Studies in Arts and Science No. 427 Department of Technology and Social Change

Linköping University, SE-581 83 Linköping Linköping 2008

(2)

Survival of the Unfit

Path Dependence and the Estonian Oil Shale Industry

Rurik Holmberg

Estonia is the only country totally dependent on oil shale in its energy system. This fossil fuel exists in enormous quantities around the world, but nowhere else has it become a dominant energy source. The main purpose with this book is to explain why the Estonian oil shale industry, afflicted with seemingly insurmountable problems, has not only managed to survive but done so in an extremely volatile institutional environment. Was this survival a result of domestic, conscious choices or was it a path that, once embarked upon, could not be deviated from due to various constraints of institutional and cognitive character? In brief, were the seeds of a technological trajectory sown in the very beginning, which could then be altered only at huge costs?

By using the concept of path dependence, it can be explained how a certain development path is embarked upon as a result of small, almost random steps, while change becomes increasingly difficult. In the academic debate on path dependence it is asked why and how inferior technologies can not only survive but even thrive. Others claim that such phenomena are basically illusions. This book argues that what appears to be an inferior path might, when seen from another angle, actually be perceived as an adequate solution, at least temporarily.

Rurik Holmberg is a researcher at the Department of Technology and Social Change at Linköping University. This book is his doctoral thesis.

Rurik Holmber

g

Survi

val of the Unfit

2008

Linköping Studies in Arts and Science No. 427 Department of Technology and Social Change

Linköping University, SE-581 83 Linköping Linköping 2008

References

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