Sectoral Systems of Innovation is a pioneering contribution to innovation studies that offers a new perspective on how innovation emerges, evolves and differs across industries. Edited by Franco Malerba and written by leading scholars in the field, the book argues that innovation cannot be fully understood through firm-level or national perspectives alone. Instead, each sector has its own innovation system, shaped by specific knowledge bases, technologies, actors, institutions and patterns of interaction.
The book develops the concept of the Sectoral System of Innovation (SSI), a framework that explains why industries follow distinct technological trajectories and display different innovation dynamics. It highlights three fundamental building blocks of sectoral systems: knowledge and technologies; actors and networks; and institutions. Together, these elements influence how innovation is created, diffused and transformed over time, while also shaping industrial competitiveness and economic performance.
To illustrate the framework, the volume examines six major sectors: pharmaceuticals and biotechnology, telecommunications equipment and services, chemicals, software, machine tools, and selected service industries. These case studies demonstrate that innovation is embedded in sector-specific contexts, where firms interact with universities, government agencies, financial institutions, users and other organisations through both market and non-market relationships. The comparative analysis reveals that technological change, learning processes and institutional arrangements vary significantly from one sector to another, leading to different patterns of industrial evolution and competitiveness.
Beyond conceptual development, the book explores the relationship between sectoral and national innovation systems, the international performance of industries and the implications for public policy. It argues that effective innovation policies should recognise sectoral diversity rather than relying on uniform approaches. Understanding the characteristics of individual sectors enables policymakers to design more targeted strategies that strengthen innovation capabilities, support structural transformation and foster sustainable economic development.
Since its publication, Sectoral Systems of Innovation has become a foundational reference in innovation studies, industrial economics and science, technology and innovation (STI) policy. Its conceptual framework has influenced a wide range of research on technological change, industrial dynamics and development, and continues to provide valuable insights for scholars, policymakers and practitioners seeking to understand how innovation systems operate across different economic sectors.
