Influencing the direction of innovation processes: The shadow of authorities in demand articulation

This article aims to contribute to the development of demand-based innovation policies by examining the role of regulatory authorities in the process of formulating demands and requirements for novel technologies in three specific cases of emerging sensor technologies. We make two contributions. First, we conceptualize the different ways in which authorities may be involved in demand articulation processes during the innovation journey. We suggest four potential roles for regulatory actors: 'following authority', 'forceful authority', 'co-creating authority' and 'shadow authority'. Second, we show how regulatory authorities in their role of 'shadow authority' influence demand articulation processes even if they are not immediately engaged. In early phases of the innovation journey, regulatory agencies may not be directly involved, but suppliers and potential users of technologies anticipate authorities' positions and actions. In conclusion, we discuss the situations in which the involvement of regulatory authorities can support the process and guide the direction of demand articulation.