Abstract

In chapter 2 of this book we have defined “technological system” as “a network of agents interacting in a specific economic/industrial area under a particular institutional infrastructure or set of infrastructures and involved in the generation, diffusion, and utilization of technology.” Such systems are “defined in terms of knowledge/competence flows rather than flows of ordinary goods and services.” Their structure and dynamics vary considerably among industrial sectors. The differences manifest themselves in the R&D intensities of industries, the role of public science and technology (S&T) infrastructure, the modes by which technologies are appropriated and accumulated, the propensity of the actors to enter into collaborative arrangements, and so forth (Pavitt 1984 and Nelson 1990). They are explained by many factors including national institutional and political traditions. However, a large part of the observed variations can be accounted for by the positioning of industries (as well as firms and entire countries) in what might be called “technology chains.”

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