Editing Innovation system (section)

==Development and diffusion of the concept==
Systems of Innovation are frameworks for understanding innovation which have become popular particularly among policy makers and innovation researchers first in Europe, but now anywhere in the world as in the 1990s the World Bank and other UN-affiliated institutions accepted. The concept of a 'system of innovation' was introduced by [[B.-Å. Lundvall]] in 1985;<ref>[[B.-Å. Lundvall]]  (1985) ‘Product innovation and user-producer interaction, industrial development’, Research Series 31, Aalborg: Aalborg University Press.</ref> "however, as he and his colleagues would be the first to agree (and as Lundvall himself points out), the idea actually goes back at least to [[Friedrich List]]'s conception of "The National System of Political Economy" (1841), which might just as well have been called "The National System of Innovation".<ref name=":1" /><!-- unclear what part/how much of this is a quote --> [[Christopher Freeman]] coined the expression ''National Innovation System'' in his 1988 study of the success of the Japanese economy.<ref>{{Cite book |last=Freeman |first=C. |title=Technology and economy theory |publisher=Pinter |year=1988 |editor-last=Dosi |editor-first=G. |location=London |chapter=Japan: A new national innovation system? |editor-last2=Freeman |editor-first2=C. |editor-last3=Nelson |editor-first3=R. R. |editor-last4=Silverberg |editor-first4=G. |editor-last5=Soete |editor-first5=L.}}</ref><ref name=":1">{{Cite journal |last=Freeman |first=C. |date=February 1995 |title=The "National System of Innovation" in Historical Perspective |journal=[[Cambridge Journal of Economics]] |volume=19 |issue=1 |oclc=1192689088}}</ref>
The concept, similarly used as "National System of Innovation" or "National Innovation System" was later applied to regions and sectors. According to innovation system theory, [[innovation]] and technology development are results of a complex set of relationships among actors in the system, which includes enterprises, universities and research institutes.

Innovation systems have been categorised into [[national innovation system]]s, [[regional innovation system]]s, [[local innovation system]]s, [[technological innovation system]]s and sectoral innovation systems.

There is no consensus on the exact definition of an innovation system, and the concept is still emerging. However, some define an innovation system as "a set of components and the causal relations influencing the generation and utilization of innovations and the innovative performance".<ref name=":0">{{Cite journal|date=2020-02-01|title=Innovation ecosystems: A conceptual review and a new definition|journal=Technovation|language=en|volume=90-91|pages=102098|doi=10.1016/j.technovation.2019.102098|issn=0166-4972|doi-access=free|last1=Granstrand|first1=Ove|last2=Holgersson|first2=Marcus}}</ref> Innovation is often the result of the interaction among an ecology of actors, and the term ''innovation ecosystem'' is occasionally used to emphasise this. For some, the expression ''innovation ecosystem'' is a subset or synonym of ''innovation system''. Others separate between the expressions, using the expression ''innovation system'' for labelling a planned innovation environment, and ''innovation ecosystem'' for an ecological innovation environment.<ref>{{Cite book |last=[[Organisation for Economic Co-operation and Development]] |url=https://www.oecd.org/science/inno/2101733.pdf |title=National Innovation Systems |year=1997}}</ref> Due to growing interest of the "innovation ecosystem" concept, many argue that it has developed into a distinctive concept that is different from the innovation system concept. A contemporary conceptual review by Granstrand and Holgersson (2020) led to the definition of innovation ecosystems as "the evolving set of actors, activities, and artifacts, and the institutions and relations, including complementary and substitute relations, that are important for the innovative performance of an actor or a population of actors".<ref name=":0" />  

Recently, the debate also started to study the problems that affect green innovation since in addition to the issues typical of innovation generally (such as [[market failure]]s related to limited appropriability of economic benefits of knowledge), [[green growth]] innovation is also hindered by market failures related to the environment (pollution externalities). It is possible (and not uncommon) for an innovation system to successfully support innovation in many technology areas, but not in ones related to green growth. For this reason, it is necessary to focus on addressing both kinds of failures in order to drive innovation towards a green growth trajectory.<ref>{{Cite book |last1=Botta |first1=Enrico |url=https://gggi.org/report/gggi-develops-analysis-framework-to-strengthen-green-growth-innovation/ |title=A Guide to Innovation System Analysis for Green Growth |last2=McCormick |first2=Colin |last3=Eis |first3=Jason |date=May 2015 |publisher=Global Green Growth Institute}}</ref>