Problem Discussion: The world population is increasing at a rate that the current food production capacity would not be able to sustain. In Sweden, only a small portion of the land area is used for cultivation and there is a high percentage of imports of food. Halland region is located in the southern part of Sweden has its arable land decreased between 2010 to 2020. This adds to the uncertainty of food production in the future in the region and in Sweden in general. Hydroponics combines food production and technology by using minimal space and resources. It is a technique of growing plants in water with nutrients. Despite being utilized in many countries around the world, hydroponics technology has not been widely adopted in the Halland region of Sweden.

Purpose: This thesis aims to analyze the functional weaknesses of the hydroponics industry in the region Halland by utilizing the technological innovation systems (TIS) framework. By analyzing the functional dynamics of actors, networks, and institutions, this thesis aims to explore the weaknesses within the functions, which can be a basis for innovation policies for the necessary stakeholders for the further diffusion of the industry in the Halland region.

Methodology: An in-depth qualitative case study was utilized in this study with a deductive approach. Authors have used the framework from Beregk (2008) to analyse the functional weakness of the TIS. And tested whether the theory stands true for a regional setting with little to no actor-network dynamics. A semi-structured interview using mostly video conferencing was done to collect data from respondents representing different actors within the technological innovations systems (TIS) framework.

Analysis: The data collected from the semi-structured interviews were analyzed using coding software and exported into an Excel sheet for ease of synthesizing the information. The primary data along with secondary sources was used to analyse the functional weaknesses. The data collected were assigned to each function to identify the patterns and come up with findings and conclusions.

Findings and Conclusions: An examination of the data reveals that, despite limited actor-network dynamics in the context, notable weaknesses have emerged within the Technology and Innovation System (TIS). These findings can serve as valuable insights for policymakers seeking to facilitate the wider adoption of this technology. This includes an insufficient development of knowledge within the region. Additionally, entrepreneurs face challenges in securing funding beyond the initial stages, which often leads them to employ trial-and-error approaches. This approach, while valuable for learning, 2 consumes significant time and capital resources, compounding uncertainty. Fortunately, being part of the European Union (EU) provides a distinct advantage for the region, as it enables a smooth flow of information and resources from EU counterparts. While the existing theory holds true within this context, there remains scope for further research. Further research for a distinct diffusion system analysis and greater clarity on defining the development of external positivity for an infant industry.