Innovation is a systemic phenomenon in which institutions, such as firms, government entities and public policy incentives, interact in complex ways. Targeting specific sectors of an economy in order to improve the competitiveness and capabilities of domestic firms, interventionist innovation policies can result in the structural transformation of host economies. Numerous examples exist of such policies working successfully in emerging economies and they can be applied to any economic sector, although they are commonly associated with highly innovative industries such ICT, biotechnology and nanotechnology. Innovation Systems, Policy and Management describes how institutions and markets can best be structured in order to promote innovation in key economic sectors. Bringing together some of the leading figures in industrial policy and the economics of innovation and entrepreneurship, this book encourages the reader to think in terms of systems and business dynamics when analysing innovation behaviour, providing an approach useful to policy makers, business leaders and scholars of evolutionary economics.

‘This book brings together contributions from world leading evolutionary economists who take stock of current research on innovation and innovation policy. It gives useful insights for decision makers at the regional, sectoral and national level in developed as well as developing economies. It introduces general principles for how to organize innovation policy in a context of complex innovation systems at different levels of development. But it also illustrates that context and localized institutions matter. One important contribution is the distinction between policies that promote innovation along existing technological trajectories and policies that create new trajectories and transform innovation systems. This is especially important in a global context where there is little hope for balanced, equitable and sustainable world development from just speeding up innovation along well-known paths.'

Bengt-Åke Lundvall - Aalborg University, Denmark

‘This is a very interesting collection of essays on technological change, its impact on the economy, and issues of public policy and private management.'

Richard Nelson - Columbia University, New York