Multi-level perspective in sustainability transitions

Sustainability Transitions are large-scale, sector-wide transformations

Example: Discovery of coal, invention of the steam engine, oil and gas subsequent innovation in mobility and transport

Both firms and policy makers must understand dynamics of transitions:

• Policy makers might want to guide transition in a sustainable direction

• Firm might want to profit from the opportunities given by a transition

The multi-level perspective explains the transformation of sectors and industries at three different levels, capturing both sources of stability and change. A transitions unfolds as a result of the interaction of processes at these three levels

According to the MLP, transitions result from interactions between different levels

The stability of the regime is challenged by changes in the niches and landscape

From the visualization below, we can identify three stages of a transition:

• Pre-development

• Acceleration

• New, stable regime

Pre-Development Stage

• Stable regime structure (i.e. soild lines in graph)

• Many niche innovations unable to break through (small arrows)

• Weak interactions between levels, no major changes within a regime

Acceleration Stage

• Landscape developments disrupt regime

• One or more niche innovations have matured to compete with regime technologies

• Regimes structures break down

• Chance for innovations to replace existing technologies

New Regime stage

• Innovations have successfully replaced former technologies

• New stable regime structures develop

The multi-level perspective is a heuristic framework that points to key processes that often play a role in transitions

Large-scale sectoral change processes are very complex and we may see many developments that deviate from this ideal type

Causes of deviations are:

• Resistance from established firms and other stakeholders may slow down transitions

  • e.g. energy transition in Germany is decelerating, rather than accelarating

• Various transitions happening at the same time

  • e.g. car industry currently in transition towards electriy vehicles for a cleaner mobility. At the same time, there is a transition towards larger car moels, such as SUVs, that require more energy counteracts improvements from electrification

From a firm perspective, a transition can also be viewed as a battle between incumbent players and newcomers (e.g. Ford vs Tesla)

Incumbent actors are typically associated with the regime level

Newcomers usually operate in niches

However, incumbent firms may also drive innovation

Often, the struggles between the old and new ways are fought even within firms (e.g. between different business units)

In other words, regime structures also exist inside organizations