No CrossRef data available.
Article contents
Innovation as Adaptation: The Digital Challenge in the Norwegian Fishing Industry, 1970–1985
Published online by Cambridge University Press: 14 April 2011
Abstract
The introduction of a sonar system for fisheries by the Norwegian firm Simrad had lasting effects on the industry, as the system was based on digital mastery that could be utilized for other products. Norwegian engineers with sonar experience were the driving force behind this breakthrough, demonstrating the relevance of theories of national agglomerations of competence. In one important though unintended outcome, internal failures forced the company to hire new people who adopted creative strategies to meet the competitive situation presented by Japan.
- Type
- Articles
- Information
- Business History Review , Volume 83 , Issue 2: A Special Issue on Food and Innovation , Summer 2009 , pp. 349 - 367
- Copyright
- Copyright © Harvard Business School 2009
References
1 Chandler, Alfred D. Jr., Inventing the Electronic Century: The Epic Story of the Consumer Electronics and Computer Industries (New York, 2001).Google Scholar
2 Langlois, Richard N., “Organizing the Electronic Century,” University of Connecticut working paper 2007–07, Mar. 2007.Google Scholar
3 Gregory, Gene, Japanese Electronics Technology (Chichester, 1986).Google Scholar
4 Fagerberg, Jan, “Innovation: A Guide to the Literature,” in The Oxford Handbook of Innovation, ed. Fagerberg, Jan, Mowery, David C., and Nelson, Richard (Oxford, 2005).Google Scholar
5 For example, see Latour, Bruno, Science in Action: How to Follow Scientists and Engineers through Society (Cambridge, Mass., 1987)Google Scholar; Burke, Peter, History and Social Theory (Ithaca, N.Y., 1993), 118–125.Google Scholar
6 Edquist, Charles, ed., Systems of Innovation: Technologies, Institutions and Organizations (London, 1997)Google Scholar; Porter, Michael, The Competitive Advantage of Nations (London, 1990).CrossRefGoogle Scholar
7 Edquist, Charles, “Systems of Innovation: Perspectives and Challenges,” in The Oxford Handbook of Innovation, ed. Fagerberg, Jan, Mowery, David C., and Nelson, Richard (Oxford, 2005).Google Scholar
8 Yates, JoAnne, “How Business Enterprises Use Technology: Extending the Demand-Side Turn,” Enterprise & Society 7, no. 3 (2006).CrossRefGoogle Scholar
9 Based on Sogner, Knut, God på bunnen: Simrad-virksomheten, 1947–1997 (Oslo, 1997). The relation with NDRE was a frequent topic in numerous interviews.Google Scholar
10 Conversation with Dahl, Terje, 28 Nov. 1996.Google Scholar
11 Influential Norwegian business historians like Even Lange and Francis Sejersted, who were strongly influenced by Schumpeter, saw situations of crises as inspiring new (entrepreneurial) actions and thus innovation. See Lange, Even and Nordvik, Helge W., “Economic History,” in Making a Historical Culture: Historiography in Norway, ed. Hubbard, William H., Myhre, Jan E., Nordby, Trond, and Sogner, Solvi (Oslo, 1995).Google Scholar
12 Carlsen (Minister of Fisheries) to Forsvarsdepartementet (Ministry of Defence), 11 Dec.1946, 231/3, state archives in Bergen, Norway, Havforskningsinstituttet, hereafter SAB, HI; Carlsen (Minister of Fisheries) to Brofoss (Minister of Trade), 11 Feb. 1949, 360–1.F9-G5A, National Archives, Oslo, Ministry of Fisheries, hereafter RA, FiD.
13 Gerhardsen, Torvald, “Sildeleting ved hjelp av asdic og ekkolodd,” Teknisk Ukeblad 44 (1946)Google Scholar; Møller, Fredrik: “Forsvarets Forskningsinstitutt,” Teknisk Ukeblad 1 (1946).Google Scholar
14 Conversations with Willy Simonsen, 27 and 31 Aug. 1990, 30 Oct. 1990, and 25 Apr.1996; and Bonde, Aslak, “Terne-rakettens venner,” unpublished master's thesis in history, University of Oslo, 1988.Google Scholar
15 See note 14 for the conversations with Willy Simonsen. In addition, see conversations with Simrad's sales manager, Ragnar Hallre, 16 Aug. 1996 and 4 June 1997, and with ocean researcher Gunnar Saetersdal, 27 Mar. 1996. See Sogner, , God på bunnen (1997), for other references, such as the extensive archive of the IMR located at the state's archives in Bergen, Norway.Google Scholar
16 Through a collaboration between defense researcher Gerhardsen and ocean researcher Devoid. See Devoid to Gerhardsen, 28 Apr. 1952, 238/3, SAB, HI.
17 Conversations with Simonsen (see note 14). See also Sogner, , God pa bunnen (1997).Google Scholar
18 “Rapport til Fiskeridir … ekkoloddet som bygges av Simonsen Radio,” 22 Sept. 1949, 235/1, SAB, HI.
19 Ibid.
20 For example: Devoid to Gerhardsen, 28 Apr. 1952, 238/3, and Devoid to Gerhardsen, 9 Sept. 1954, 239.1/1, SAB, HI; Simonsen to Sunnanå, 24 Oct. 1955, 239.5/15, Simonsen and Mustads, “Referat.… Asdic 10/3–11/3–60,” 239.5/10, SAB, HI; Simrad to Sunnana, 8 Nov. 1955; “… asdicanlegg til havforskningsfartoy,” HI 09.56; “Asdic-anlegg … havforskningsfartay,” 19 Dec. 1956, HI.
21 This is a very small market, and Simrad had the first-mover advantage. But its work for the market was important for developing particular skills and learning from the researchers.
22 This is covered in detail in Sogner, , God på bunnen (1997).Google Scholar
23 Ibid.
24 Simrad's historical archive, papers for the board meeting, “Viderutv: Av sonar for fiskeleting,” Larsen, H. Skjold and Jahr, D., 24 June 1976, 76–1, 25.676 (my translation).Google Scholar
25 This hit a number of exporting electronics firms in Norway at the period. See Sogner, Knut, “The Rise and Fall of State Information Technology Planning—Or How Norwegian Planners Became Captains of Industry, 1960–1990,” in Information Technology Policy: An International History, ed.Coopey, Richard (Oxford, 2004).Google Scholar
26 Annual report, 1981; minutes from the extraordinary meeting of “Bedriftsutvalget,” 28 Apr. 1980, Simrad's historical archive, Bedriftsutvalget, 1977–83; hereafter SHA, BU.
27 Simrad had been in Horten since the late 1950s. It was Gerhardsen's home town and close to his former employer, NDRE.
28 Chandler, Alfred D. Jr., The Visible Hand: The Managerial Revolution in American Business (Cambridge, Mass., 1977).Google Scholar
29 In conversations during the 1990s, Simonsen expressed concern about his own image, but he also did something about such matters as early as t he 1950s. See conversations with Simonsen.
30 Notes from board meeting 10 Aug. 1965 and Simonsen to NTH, 14 Jan 1954 (copy from Simonsen), SHA, Torvald Gerhardsen's papers (hereafter TGP).
31 Notes from board meeting 10 Aug. 1965, SHA, TGP.
32 This is covered in Sogner, , God på bunnen (1997).Google Scholar
33 “Notat vedr. finansiering av Simrad selskapene,” Torvald Gerhardsen, 1 Mar. 1973, Beretninger og bedriftsforsamling, 1973–83, SHA.
34 Ibid.
35 Perkin, Harold, The Rise ofProfessional Society: England since 1880 (London, 1989).CrossRefGoogle Scholar
36 Conversations with Mustad, Erik, 23 Apr. and 19 Nov.1996Google Scholar
37 See, for example, Arbeiderblad, Vestfold, 22 May 1979.Google Scholar
38 Conversation with Harald Ellefsen, 5 Dec. 1996.I have also looked closely at the financial systems and legitimization introduced by Ellefsen, as reflected in t he minutes of board meetings and in the accounts.
39 Meeting on 10 Dec. 1979, Budsjett 1980, sp 1979–81, SHA.
40 Kili, Terje, “Aksjemarkedet i Norge, 1880–1990,” Det nye pengesamfunnet, rapport nr. 88, Research Council of Norway (NFR), Oslo, 1996.Google Scholar
41 Korsnes, Ottar, “Styrt nedlegging av Simrad Marine i Horten,” Arbeidsledelse og teknikk 2, (1983).Google Scholar
42 Conversations with Dahl, Terje, 28 Nov.1996Google Scholar; Kristensen, Finn Hogne, 12 Mar.1997Google Scholar; and Ole Bernt Gammelsaeter, 31 Jan. 1997.
43 “Sonar for ny undervannsbåt” and “Sonar til nye undervannsbåter,” unsigned notes, 1973, NDRE's archives, downgraded material. Also see conversations with Ole Bernt Gammelsaeter, most notably on 31 Jan. 1997.Google Scholar
44 Fiskeri-div. Utviklingsprogram 1981, SHA, Ole Bernt Gammelsaeter's papers (hereafter OBG).
45 Conversations with Terje Dahl, 28 Nov. 1996 a nd Ole Bernt Gammelsaeter, 31 Jan.1997; also Fase-II rapport; Simrad SX200 sonar, 15 May 1981, SHA; OBG.
46 Gregory, Gene, Japanese Electronics Technology (Chichester, 1986), ch. 10.Google Scholar
47 Tandberg, the Norwegian maker of quality consumer electronics, declined to become rationalized on Japanese terms, because it valued the sound and picture quality of its televisions. This clearly contributed to its downfall, as its products proved too costly. See Sogner, Knut, “Veksten mot idealfabrikken,” rapport nr. 5, Teknologihistorieprosjektet, NAVFNTNF,Oslo, 1990.Google Scholar
48 See note 14.
49 Fase-II rapport. Simrad SX200 sonar, 15 May 1981, SHA, OBG. Also conversations with Ole Bernt Gammelsaeter, most notably on 31 Jan. 1997.Google Scholar
50 VLSI = very large-scale integration.
51 Papers for the board meeting, 27 Oct. 1975, U-program 1976, SHA, fiskeri.
52 This is explicitly stated by Dahl and Gammelsaeter (see note 42), but it was also reflected in the placement of this project within the company.
53 Utviklingsprogram 1982, SHA, OBG.Google Scholar
54 Ibid.
55 Utviklingsprogram 1983, SHA, OBG.Google Scholar
56 “Teeming Agreement,” 4 May 1984, kontrakter, Thomson-Sintra, SHA, Sverre Amundsen's papers (hereafter SSA).
57 “Innkalling til styremøte og saksdokumenter,” 7 Nov. 1983 m/vedlegg; ref. 13 Nov. 1983, Simrad, sp 1981–83, papers borrowed from Erik Mustad.
58 Conversations with Simonsen (see note 16). This opinion, which is shared by several people I have talked to, probably underestimates the relations in transducer research. But, in broad terms, it seems a fair statement.
59 David, Paul, “Heros, Herds, and Hysteresis in Technological History: Thomas Edison and ‘The Battle of the Systems’ Reconsidered,” Industrial and Corporate Change 1 (1992).CrossRefGoogle Scholar
60 Mintzberg, Henry, The Rise and Fall of Strategic Planning (London, 1995).Google Scholar
61 See, for example, the coverage of Japan in Lazonick, William, Business Organization and the Myth of the Market Economy (Cambridge, 1991).Google Scholar