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Similar points have been made by (Mazzucato 2013) who underlines that governments play a key role
also in creating and shaping markets as part of processes of economic development.
Entrepreneurship, demonstration, and experimentation
The use and application of knowledge via processes of entrepreneurship, experimentation and
demonstration are also important processes in industry formation (Carlsson & Stankiewicz 1991). In
order for an emerging technological field to develop it is important that numerous experiments and
demonstrations take place in order to secure variety, given that we seldom know in advance which
technologies and business models that will succeed and prevail (Hillman et al. 2008). This relates on
the one hand to new firms and business models, but also to technological demonstration that can
display the viability of new designs. Experimentation and demonstration is highly uncertain and comes
with large risks both in technological and economic terms given that it involves the introduction of new
technologies and business models (Bergek et al. 2010).
Expectations and direction of search
In order for firms to become engaged in processes of new industry building, incentives or pressures
can be important mechanisms that direct firms towards the new industry or technology. Expectations
of (international) growth markets can be one such important driver that directs firms towards an
emerging technology. Public sector involvement can influence this process through regulation and
provision of incentives for investment (Hillman et al. 2008). The use of feed-in tariffs can for instance
be seen as an important incentive mechanism driving investments in renewable energy.
This process influences entry into an emerging field, but also the manoeuvring of differing design
options
within
a technological field. In emerging fields variety is typically large and the sharing of
expectations with regards to the direction of development can be important for the alignment of
actors. This alignment can be important both for learning processes but also in terms of critical mass
in attempts to affect firms’ environment.
Markets and users
The development of markets is a process intimately linked to formation of new industries because it
enables links between users and suppliers, which in turn can trigger important knowledge
development (Hillman et al. 2008). Processes of market formation are critical as important
improvements in technologies usually arise in the aftermath of their initial introduction. Important
improvements in technology can arise from the disparity between what technologies initially supply