System innovation is not just about creating new solutions. It is just as much about getting the solutions to spread, integrate and become part of the new system. A pilot can be fantastic, but without scaling it does not affect the whole system. By the time a solution reaches the system level, it has become so normal that people hardly notice that it was once something new. People take the new for granted.
Here we describe some scaling mechanisms for system innovation. We also develop how system innovation leaders can work with them in practice to take a solution from experiment to a new normal, i.e. how solutions go from pilot to new normal through replication, institutionalization and market shaping.
Why scaling is crucial in system innovation
In complex systems, it is common for solutions to be tested on a small scale. This is done to reduce risks, build understanding, create legitimacy and, above all, to understand and learn what works. The problem is that many initiatives then remain as pilots. They are praised as good examples but are not implemented widely, because the system lacks mechanisms to absorb and carry forward the new.
What is often missing are strategies for how the solution will scale through the different levels of the system. Scaling is not about making something bigger, but about making something more robust, more shared, more integrated and more attractive for other actors to use.
In systems innovation, scaling is the most critical phase. This is when actors need to change behaviors, institutions and incentives. Without effective scaling, change stops at single symbolic projects and the system continues as before.
Three mechanisms for scaling systems innovation
There are three basic ways to scale a solution so that it has a systemic impact. They can be used separately but work best in conjunction.
Replication
Replication means that a solution is spread to more places, contexts or target groups. The focus is on copying the model and adapting it to local conditions. Replication is suitable for solutions that are clear, user-friendly and relatively simple in terms of organization.
An example is the spread of recycling malls where a successful model in one municipality can be replicated to other municipalities. The solution does not have to be identical, but the core principles are preserved.
The key is to document lessons learned, create simple manuals and support structures, and make the model attractive and easy to adopt for others.
Replication leads to breadth but not necessarily to changed system rules.
Institutionalization
Institutionalization means that the solution is integrated into rules, standards, routines or mandates. The solution then becomes part of the system’s structure and continues to function even if the project group is dissolved.
Examples are when municipalities make circular requirements standard in procurements or when industries adopt common data standards that make reuse between companies possible.
Institutionalization requires political will, long-term management and often a deeper change in norms. When institutionalization is successful, the solution becomes mandatory or so obviously integrated that it is no longer perceived as new.
Market shaping
Market shaping means creating new incentives, business models, capital flows or roles that make the solution self-sustaining and attractive.
Examples include the emergence of sharing platforms where the market shifted through new digital value chains and socio-economic drivers. Another example is markets for recycled materials where policy instruments, standards and demand together shape a whole new economic space.
Market shaping changes the conditions for how actors act. It is often the most powerful scaling mechanism but also the one that requires the greatest coalitions.
From pilot to new normal
Going from pilot to system impact requires a combination of the mechanisms above. A typical process might look like this.
- First, a solution is tested on a small scale to show that it works and to create legitimacy.
- Then it is replicated to more places and contexts. This builds knowledge, visibility and acceptance.
- In parallel, policies and regulations are influenced so that institutionalization can occur.
This gives the solution stability and long-term direction. - At the same time, new markets begin to take shape. Investments, revenue models and incentives are adjusted. When market shaping occurs, the solution begins to grow on its own.
Eventually, the solution has become part of the new norm. No one remembers that it was once a pilot anymore.
Example: Circular construction material bank
Suppose a pilot project creates a digital material bank where construction companies are matched with recycled materials from demolition projects.
- Replication occurs when more municipalities and construction companies start using the model.
- Institutionalization occurs when procurement requirements require recycling, when material classification is standardized, and when land allocations reward recycling.
- Market shaping occurs when actors start making money from recycling, when the insurance system is adapted and when certification systems create value around circular buildings.
Finally, reuse has become an integral part of the logic of the construction market.
How system innovation leaders can work with scaling
The system innovation leader needs to work strategically and in parallel with all three scaling mechanisms. The role is to create a path from experimentation to established practice and to navigate between short-term lessons and long-term structural changes.
- The first task is to understand which part of the solution is stable enough to scale and what needs to be further developed.
- The second task is to identify which actors need to be engaged in the scaling phase. Often these are different actors than those needed in the pilot phase.
- The third task is to create impressive stories, data and visualizations that make the solution easy to explain and easy to adopt.
Then you can start building coalitions in the right order. Often, one starts with replication to prove scalability, moves on to institutionalization to create stability, and continues with market shaping to create momentum.
Then, one needs to monitor the system’s reactions. Scaling is an adaptive process, and the system innovation leader needs to interpret counterforces, adapt strategies, and create small steps that lead forward.
Have a plan for scaling system solutions
Scaling system innovation solutions is one of the most crucial parts of system change. Replication builds breadth, institutionalization builds long-term sustainability, and market shaping builds power and attractiveness. When all three mechanisms are used in conjunction, solutions can take the step from pilot to new normal.
The role of the system innovation leader is to orchestrate the journey. By understanding how different levels in the system absorb change, the leader can create a scaling strategy that allows good solutions to have a real impact on society.
An example of guidance for system innovation leaders
Below is a short guide to scaling in the circular economy as a system innovation.
Identify what is a pilot and what is a scale mechanism
In the circular economy, pilots are easy to produce but difficult to scale. Start by clearly defining What is the solution itself? What problem does it solve in the material flow? Which actors are affected?
Analyze what barriers exist to replication
Examples: skills, costs, ownership structure, logistics, business logic.
Identify what needs to be done for more people to be able to use the same solution.
Assess institutional needs
Ask yourself what rules and norms need to be changed for the solution to work on a large scale?
Typical examples in the circular economy are product passports, standards for quality in recycled materials, procurement requirements or changed VAT.
Evaluate the market logic
What economic incentives must exist for actors to want to act circularly?
Ask yourself what needs to be cheaper and what needs to be more expensive?
Make a map to invite to dialogue
Make a map of the upscaling that includes the three scaling mechanisms.
Involve actors from companies, municipalities, civil society, recycling companies and authorities.
Let them place their initiatives on your map and discuss what is needed to take the next step.
End with a system shift
When several mechanisms point in the same direction, a new normal emerges.
That is the goal and serves as vision and direction in practice.
