Sectoral systems of innovation: a framework for linking innovation to the knowledge base, structure and dynamics of sectors

This paper proposes a framework for examining factors that affect innovation in sectors: sectoral systems. Sectoral systems are based on three building blocks: knowledge and technologies, actors and networks, and institutions. In the first part of this paper, the concept and the definition of a sectoral systems of innovation are presented. In the second part of the paper, the role of knowledge, actors and networks, and institutions in five major sectoral systems is examined. Then the main focus moves to the analysis of the dynamics and transformation of sectoral systems. Finally, some general conclusions and directions for future research end the paper.