240 Int. J. Technology, Policy and Management, Vol. 5, No. 3, 2005 Copyright © 2005 Inderscience Enterprises Ltd. Institutional design for complex technological systems Joop Koppenjan* and John Groenewegen Faculty of Technology, Policy and Management Delft, University of Technology, Jaffalaan 5 2628 BX Delft, The Netherlands E-mail: j.f.m.koppenjan@tbm.tudelft.nl E-mail: j.p.m.groenewegen@tbm.tudelft.nl *Corresponding author Abstract: Complex technological systems like telecom, energy and transport infrastructures are subject to institutional (re)design. Institutions concern different levels of analysis like laws and regulations as well as contracts and organisations which regulate and coordinate the behaviour of actors in complex networks. In relation to technological and process design, we discuss how efficient and effective institutions can be designed according to structure behaviour in such a way that socially desired objectives are realised. After analysing the stabilising and instrumental role of institutions, we introduce a four-layer model, which offers the building blocks for identifying the steps to be considered in processes of institutional design. After having discussed the constraints in designing institutions, we present a generic model meant to be helpful in structuring the process of designing institutions in complex technological systems. Keywords: institutional design; institutions; multiactor systems; strategic uncertainty; collective action problem; transaction costs; institutional arrangements. Reference to this paper should be made as follows: Koppenjan, J. and Groenewegen, J. (2005) ‘Institutional design for complex technological systems’, Int. J. Technology, Policy and Management, Vol. 5, No. 3, pp.240–257. Biographical notes: Joop Koppenjan is Associate Professor of Public Management. He publishes on interorganisational networks, institutional design and public-private partnerships, especially in the fields of ICT, transportation, energy, environment, water and safety. John Groenewegen is Professor of Economics of Infrastructures. He publishes on transaction costs economics, corporate governance, economic systems and the evolution of institutions in infrastructures.