It’s great to have an idea, or if technical – to have a prototype of an idea, but this protype and the idea, may always remain so, if there are other factors that prevent the idea from becomming established in the market. That is, where the MLP plays an important factor.
Multi-Level-Perspective distinguishes three perspectives: landscape, regime and niche. The landscape represents the broader picture of socioeconomic system, the regime consists of the established technological paradigm, also known as the socio-technical regime. A socio-technical system is a system of technology, regulation, user practices, markets, cultural meaning, infrastructure and supply networks that fulfils societal functions. Socio-technical systems are multi-actor processes, actively created by actors with differing interests e.g. firms, universities and public bodies.
Niches, consists of new innovations that should be adopted in the regime. A radical alternative has to grow in a niche, before it is able to compete with the established paradigm. That can be difficult if the infrastructure or user practices are layed out for previous innovations or innovations that are strongly embedded. Such an example is the use of batteries for electric vehicles that only became adopted over time and in some regions may fail to be established because the infrastructure or social practices do not allow for the latter.
Whats the use for business?
Using MLP as a theorteical framework can help to identify market strenghts and weaknesses. It can be applied in the moment, but also over time by using scenario forecasting techniques and asking a variety of questions:
- What user preferences exist?
- What political changes can be followed?
- What changes my help my innovation become adopted?