Technological change and the evolution of the links across sectoral systems: The case of mobile communications

This study examines the role of technological change in affecting the evolution of the links across sectoral systems. Although the extant literature has investigated various aspects of the links among actors and institutions within sectoral systems, how a rather isolated sectoral system can evolve into a sectoral system vertically related with other ones still remains an unexplored terrain. This study shows how radical changes in knowledge and technology may open new links and connect previously unconnected sectoral systems. During this process, a previously isolated sector may drastically change and expand its links with the upstream and downstream sectors. Consequently, sectoral systems may evolve in becoming highly interconnected in terms of firms, non-firm actors, and institutions. We illustrate this process with a case study of the evolution of the mobile communications sector, which has witnessed increasing vertical linkages with two key related sectors: upstream (e.g., semiconductors) and downstream (e.g., automobiles). The focus on changing links across sectoral systems calls for a multi-sectoral analytical framework for policymakers and industry practitioners in an era of technological convergence, interdependence, and interdisciplinarity.