Functioning Of Innovation Systems Research Articles

The impact of funding on the 5G innovation ecosystem

This paper aims to extend the literature on the impact of research funding. Using 5G as a case study, this paper analyses how funding impacts the 5G innovation ecosystem. Using the functions of innovation systems as a framework, we analyse how several of these functions are influenced by research funding. The results a portion of the ecosystem only participates with funding. In addition the structure of the ecosystem is significantly altered. Research topics are also influenced by funding: some being mostly treated through funding. Funding has little to no impact on the publications that lead to patents.

Social innovation enablers to unlock a low energy demand future

We initiate the process of developing a comprehensive low energy demand (LED) innovation narrative by applying the framework ‘Functions of Innovation Systems’ (FIS) and identifying the key conditions under which technology interventions can be improved and scaled up over the next three decades to contribute to climate change mitigation. Several studies have argued that the potential for LED-focused mitigation is much larger than previously portrayed and have shown that adopting a wide variety of energy-reducing activities would achieve emissions reductions compatible with a 1.5 C temperature target. Yet, how realistic achieving such a scenario might be or what processes would need to be in place to create a pathway to a LED outcome in mid-century, remain overlooked. This study contributes to understanding LED’s mitigation potential by outlining narratives of LED innovation in three end-use sectors: industry, transport, and buildings. Our analysis relies on the FIS approach to assess three innovations in these sectors. A key insight is that the distinct characteristics of LED technology make enabling social innovations crucial for their widespread adoption. Finally, we identify a set of eight social enablers required for unlocking LED pathways.

English

Functions of innovation systems framework have established their value as tools for exploring socio-technological transitions and economic development. Although the “seven functions” model has demonstrated its academic value across a vast literature, there have been few attempts to explore the role of the model in climate smart farming. Therefore, the aim of this study is to determine relative importance of functions of innovation system on cassava climate smart farming in Kenya. The study focused on the following seven functions of innovations; entrepreneurial activities, knowledge development and diffusion, search for guidance, market development and stabilization, resource mobilization and legitimacy development. Data were collected from 150 cassva farmers in Nyando Sub-County, Kenya. Data analysis deployed the Best-Worst scaling (BWS) choice method and expanded to include the multinomial logistic regression modelling. Results revealed that knowledge development, diffusion and resource mobilization were the functions of innovation systems ranked highest in terms of shared importance among the seven innovation functions. In fostering cassava innovations, their relative importance was knowledge development (19.17%), knowledge diffusion (18.86%) and resource mobilization (14.88%). Evidence from the multinomial logistic regression revealed that farmers chose knowledge development as most important innovation function to foster cassava innovations in the Nyando CSV. Key words: Entrepreneurial activity, knowledge development, market formation, resource mobilization.

Development of a novel framework for the analysis of Technological Innovation Systems by Causal Layered Analysis (CLA) in energy systems

ABSTRACT Greenhouse gas emissions from the burning of fossil fuels, as one of the main sources of anthropogenic climate change accounts for two-third of the global emissions. In this issue, Iran has adopted a set of policies and goals to consider related technology development. One of these technologies around which several national programmes have launched is the Cogeneration of Heat and Power (CHP). Nevertheless, the national goals have not been fulfilled as expected. The aim of this paper is therefore to provide a framework in order to identify the bottlenecks hindering CHP development in Iran. This framework is based on the Technological Innovation System (TIS) along with the Causal Layered Analysis (CLA) to decipher the profound and latent factors causing these problems. The results reveal a significant role of the discourses and visions both directly on the failure of the CHP innovation system functions and indirectly through affecting structural problems. A notable policy suggestion is to change the discourse of centralised power generation and to make more effort to legitimate the energy efficiency in the society. The developed framework can also be beneficial to policy-makers to formulate and analyse the future visions for the CHP plants.

Carrots, sticks and sermons: Policies to unlock community energy finance in the United Kingdom

Community energy (CE) represents a potentially critical means of accelerating a sustainable and equitable energy transition. However, in many countries, it is experiencing a period of stagnation, typically following the dilution or removal of supportive government policies. In the absence of substantive capital grant funding, attracting capital finance has become increasingly important for the CE sector but remains highly challenging to secure at scale. Policy solutions are therefore needed to unlock finance and catalyse CE sector growth.To develop policy solutions to accelerate CE business model innovation that can unlock finance, this paper develops a newly synthesized policy instrument, innovation system and business model analytical framework. This is applied to the case of United Kingdom (UK), employing a mixed-methods approach that included a survey of 145 projects, 33 interviews and documentary evidence. To drive business model innovation and unlock CE finance ten policy recommendations are presented that offer an essential balance across three types of policy instrument: 1) financial incentives ('carrots'); 2) regulations and guidance (‘sticks’); and 3) initiatives to support the dissemination of information (‘sermons’). This recommended policy mix highlights the importance of striking a balance between financial and non-financial policies, and ensuring coverage across all innovation system functions.

Transition pathways, transition failure, and sustainable transition in developing countries: Insights from wind turbines in Iran

This study aims to investigate transition pathways, identify transition failures and propose policy solutions based on functions of technological innovation system (TIS) to overcome transition failures in the wind turbine industry in Iran. To this end, this paper employs a qualitative approach and case study research strategy. In this regard, the historical evolution of the wind turbines in Iran from 1988 to 2020 is investigated through the lens of sustainable transitions pathways, the integrated theoretical framework (combination of technological innovation system and multi-level perspective) with identifying a kind of pathway in each. Then, the reasons for the transition failure in each stage are extracted by employing a transition failure theoretical framework. Finally, to address the transition failures, appropriate policy solutions are proposed based on each function of the technological innovation system (TIS) theory. This paper contributes to the literature of sustainability transition by shedding light on the evolution of a renewable energy sector in a developing country with huge underground oil and gas reserves.

The ‘need for speed’: Towards circular disruption—What it is, how to make it happen and how to know it's happening

AbstractThe environmental, social and economic limits and shortcomings of the current linear model of production and consumption highlight the necessity of a rapid transition towards a sustainable paradigm. The concept of a circular economy has recently gained traction among scholars, policy‐makers and businesses as a promising alternative. Yet our understanding of how to speed up the systemic transition from a linear economy paradigm towards a circular economy paradigm is lacking. In this paper, we address this research gap by introducing the concept of ‘circular disruption’ and by describing how such a disruption may unfold. To do so, we build on S‐curve thinking and the concept of panarchy. Based on the resulting synthesis, we propose three phases that constitute the core of the disruption process: (1) the release phase, (2) the reorganisation phase and (3) the eruption phase. We then operationalise these three phases for different enabling innovation system functions and illustrate our observations with examples for the textile and fashion sector. We discuss how each of the three disruption phases can be accelerated to quickly create an opening for the new circular paradigm. The proposed circular disruption framework offers novel insights on socio‐technical transitions and changes and contributes to strengthening a systemic and theoretically grounded approach to circular economy research. Scholars and practitioners alike may take advantage of this work to focus circular economy efforts on speed and scale—an urgently needed focus to start tackling the sustainability challenges humankind is currently facing.

Planning for clean technology diffusion: Identifying innovation system functions in country technology action plans

Researchers and policymakers have been emphasizing on the importance of accelerating clean energy technology diffusion across developing world facing low technology penetration rates and other innovation system barriers. Over the years, development cooperation has pivoted towards recipient country capacity building under broadly defined climate-related aid. In the energy sector of aid recipient countries, aid projects are influential in financing deployment of low-carbon technologies as well as policy advice and reforms, mobilizing private investments, network strengthening, and rural electrification support. Future projects and programs in this sector need to be cognizant of recipient country expectations. This study explores the outlook for future projects managing energy transition through targeted interventions. Employing content analysis of Technology Action Plan documents for twenty-five countries, activities under prioritized technologies were matched with indicators corresponding to seven functions of a technological innovation system. Resource mobilization and creation of legitimacy were the functions prioritized by the countries, while the function of entrepreneurial activity received less priority. The innovation system indicators identified in the literature and used in the study are useful measures that can complement design of donor interventions aimed at accelerating adoption & diffusion of energy technologies. These findings could be used to support further development of Nationally Determined Contributions and accelerated deployment of climate mitigation technologies in national strategies and programs for sustainable development.

TransformLegal fundamentals of infrastructure support of innovation processation of the principles of the legal regulation of the wage in modern conditions

Problem setting. Effective innovation activity and commercialization of its results is possible only with proper organizational and information-intermediary infrastructure support of the innovation process. The problem of creating a system of information and analytical support of scientific, technical and innovative activities in Ukraine in the formation of an innovative model of economy, which provides for a sustainable flow of effective innovation and transition of the entire domestic economy to knowledge-intensive technologies, is urgent and requires fundamentally new approaches to its development communication through the use of advanced information technology Target of research. The purpose of this study is to analyze the legal basis of infrastructure support of the innovation process. Analysis of recent researches and publications. The research of many scientists is devoted to the organization of the innovation process, development of innovation infrastructure, intensification of innovation activities and commercialization of its results. Thus, S.V. Hlibko considered modern requirements for the development of the national innovation system, organizational and legal forms and functions of certain subjects of innovation. Problematic issues regarding organizational forms of technology transfer in the innovation process were analyzed in the studies of O.V. Rozghon. Iu. V. Georgiievskyi studied the features of public administration of the national innovation system of Ukraine from the standpoint of structural and functional approach. In addition, A. N. Liubchych assessed the activities of technology parks and determined their role in the national innovation system. However, insufficient attention is paid to the problems of infrastructural support of the innovation process, which actualizes these issues. Article’s main body. Today, the organizational support of innovation and the intermediary component of information support are left out of consideration. It should be noted that information support of innovation can be considered as a set of legal, timely, effective, purposeful and secure processes of collection, perception, storage, processing, transmission, provision, receipt and use of relevant information to solve problems of legal regulation of innovation .It should be agreed that today there are ample opportunities for the emergence of new types of intermediaries that provide infrastructure for modern business models, while further efforts should be focused on researching intermediaries in the market of information and information products, so information requires significant efforts its collection, processing and storage, which creates ample opportunities for intermediary enterprises, but also requires consideration of the characteristics of the information product. Conclusions and prospects for the development. Issues of legal support of the innovation process are extremely relevant and require scientific disclosure. Thus, given the importance of building a national innovation ecosystem and infrastructure support of the innovation process, it is appropriate at the present stage of development to improve the regulatory framework for organizational and information-mediation infrastructure support of innovation, legislative regulation of innovation market intermediaries, monitoring of information resources and information resources, communication networks among research institutions in order to promote effective innovation and commercialization of its results.

Innovation in the pineapple value chain in Mexico: Explaining the global adoption process of the MD-2 hybrid

CONTEXTScaling up innovations has emerged as an important requirement to address the challenges faced by the agricultural sector. However, current interpretations of scaling up are often too simplistic, and there is a need to integrate perspectives that capture the complexity involved in scaling up an innovation. In this context, we believe that the structural-functional approach of the innovation system can contribute to the understanding of the underlying factors that enable the successful introduction and scaling up of an innovation. OBJECTIVEOur objective is to improve the understanding of how system functions and their interactions influence the introduction and scaling up of an innovation. We provide a case study that illustrates the development and scaling up of MD-2 pineapple in the world and in Mexico. METHODSFor the integration and analysis of the information, the event history technique, applied in various studies on innovation systems, was used. This technique consists of the identification, classification, and analysis of events according to the system functions. RESULTS AND CONCLUSIONSThe success of the expansion of MD-2 pineapple in the international market can be explained, to a large extent, by the fulfilment of all the system functions, which interacted positively and reinforced each other, resulting in great dynamism in the demand for this fruit. This functional pattern created entry points for other countries, once the MD-2 genotype was in the public domain and the market had appreciated its commercial potential. With these conditions in place, Mexico was also incorporated into this varietal innovation. Thus, market formation was the initial push for Mexican pineapple farmers to begin producing the MD-2 pineapple. Its exploitation involved the development of various technical changes and market-oriented activities. These changes were made possible by the fulfilment and interaction of system functions. SIGNIFICANCEThe findings of this study contribute greatly to our understanding of how an innovation develops in the context of a developing country. With the mapping of the system functions, it was possible to: (i) reconstructing innovation processes from their origin to their scaling up; (ii) understanding innovation as a process, path-dependent and influenced by multiple dimensions. Understanding each of the functions of innovation system provides information on those processes occurring within the system that require special attention. This information can be used by the scientific community together with decision and policy makers to develop more appropriate intervention strategies based on the functions that have a ripple effect on innovation.

СТРУКТУРНОЕ РАЗВИТИЕ ИННОВАЦИЙ: СОСТАВ И ВЗАИМОСВЯЗИ ГОСУДАРСТВЕННОЙ СИСТЕМЫ УПРАВЛЕНИЯ И МОНИТОРИНГА ИННОВАЦИЙ В ЭКОНОМИКЕ

The tasks of information and economic interaction of economic entities participating in the innovation process on any territory are formulated and implemented within the boundaries of the regional innovation system (RIS), which is a relatively independent element of a single national (federal) innovation system. Hence, a regional innovation system should be considered as a subsystem of a common – national system, integrated into a single innovation space. In turn, the regional innovation system also consists of three elements (micro-systems) – state, municipal and market. Each of these subsystems at the local level of management includes state and municipal, as well as private (market) commercial and non-commercial economic entities. Each of these subsystems at the local level of management includes state and municipal, as well as private (market) commercial and noncommercial economic entities. The development of relevant innovation policies in each region requires an analysis of the state of the innovative environment also on the basis of the general theoretical principles of systemality, complexity, normality, continuity, program-oriented orientation, adaptability and quantitative measurability. The article reveals the features of the functioning of regional innovation systems, describes the indicators and features that determine the specifics of each regional innovation system, considers the main methodological approaches and the corresponding general, special and private theoretical principles of the formation and functioning of regional innovation systems, reveals the essence and possibility of applying general theoretical principles and indicators of state statistical reporting to analyze the innovative position of regions.

RATING ASSESSMENT OF SECURITY PARAMETERS OF INNOVATION ECOSYSTEM OF UKRAINE FUNCTIONING

Objective. Based on the world experience of determining the parameters of the functioning of innovation systems and rating assessment of security parameters, the objective of the research is to investigate the current state of the innovation ecosystem of Ukraine; services of basic security parameters that can be used for practical assessment of innovation ecosystems and conduct a practical assessment of various sectors of the economy of Ukraine on the level of effectiveness of their participation in the formation of innovation ecosystem. Methods. The theoretical and methodological basis of the study are the scientific works of foreign and domestic scientists. To achieve this goal the following research methods are used: analysis (to study the dynamics of innovation processes in the economy of Ukraine), comparison and synthesis (to study the security parameters proposed by other authors to form a list of security assessment parameters of innovation ecosystems), rationing of economic data; ratings and graphs (to build innovative security ratings of comparative industries in Ukraine). Results. Three main groups of indicators for assessing the security parameters of the innovation ecosystem of Ukraine are proposed. They in turn consist of 12 indicators for assessing the security of this type of economic activity to include it in the innovation ecosystem and to invest in innovation in this area. The advantage of the proposed list of indicators is that, on the one hand, it is based on security parameters proposed by other authors to assess investment processes, and, on the other hand, takes into account existing in Ukraine statistical reporting on innovation processes, which allows using existing data statistical reporting of the State Statistics Committee. A rating assessment of 60 types of economic activity of Ukraine is built according to the proposed approach (both for each group of indicators and integrated rating), three areas of economic activity with the highest value of security parameters (research; computer production; pharmaceutical production). ecosystems of Ukraine and promising areas of formation of the main directions of further development of the innovative ecosystem of Ukraine are identified.

Mapping Innovation Diplomacy in Denmark and Sweden

Summary The aim of this article is to identify and map innovation diplomacy actions in Denmark and Sweden using the ‘functions of innovation systems’ approach. Based on Hekkert et al.’s seven key system functions (Marko P. Hekkert, Roald A. A. Suurs, Simona O. Negro, Stefan Kuhlmann and Ruud E. H. M. Smits, ‘Functions of Innovation Systems: A New Approach for Analysing Technological Change’, Technological Forecasting & Social Change 74 (4) (2007), 413-432), the article assess the role of the Ministry of Foreign Affairs (MFA) in meeting governments’ innovation targets. The empirical analysis, including twelve semi-structured interviews with seventeen career diplomats, reveals the key initiatives that countries are taking in furthering their homeland’s innovation aims or ambitions. The study also asks whether the ‘diplomacy for innovation’ approach of both Scandinavian MFAs are consistent with the ‘whole-of-government’ and ‘whole-of-society’ approaches.

A functional analysis of the role of input suppliers in an agricultural innovation system: The case of small-scale irrigation in Kenya

CONTEXTAs a direct link between farmers and manufacturers of technologies, the characteristics and activities of input suppliers can be expected to play an important role in the generation and diffusion of innovations in agricultural systems. While the agricultural innovation systems (AIS) literature recognises the importance of input suppliers, there are few studies from the Global South assessing the nature and implications of their activities. OBJECTIVEThe aim of this paper is to improve the understanding of how input suppliers can influence the functioning and development of AIS in the Global South. METHODSWe first adapt the ‘functions of innovation systems’ framework to examine the role of these private-sector actors in an AIS, identifying three activity categories, through which input suppliers can influence the AIS: market creation for technological innovations, the creation and dissemination of knowledge, and influence on technology priorities. We then apply the framework to a case study of the small-scale irrigation sector in Kenya. RESULTS AND CONCLUSIONThe case study documents the emergence of a new cohort of irrigation-equipment suppliers during the period of strong growth in the market for small-scale irrigation technologies since 2000, and examines how they affect the small-scale irrigation agricultural innovation system (SIAIS). We find that Kenyan irrigation-input suppliers perform important activities and roles in the SIAIS aside input supply, notably provision of advisory services, improvement of the supply chain for irrigation technologies, introduction and adaptations of new types of irrigation equipment, and facilitation of access to farm credit. Irrigation-input suppliers in Kenya thus play an important role in the functionality of the SIAIS, particularly regarding knowledge creation and dissemination. SIGNIFICANCEThe novelty of the paper lies in its empirical assessment of input suppliers in the small-scale irrigation sector and its application of the functions framework. The paper shows that input suppliers can become effective agents of knowledge diffusion once the market has reached a sufficient size and documents how they contributed to knowledge development as they develop, adapt and test specific irrigation equipment. The paper also emphasises that input suppliers can form a key link between national AIS and foreign companies, as they bring in foreign expertise (know-how) to the market along with agricultural technologies. We therefore suggest that policy interventions in support of smallholder irrigation should seek leverage from the growth and capacities of input suppliers as a complement to public research and extension.

CLUSTERING OF THE ECONOMY AS A MEANS OF DEVELOPING AN INNOVATION INFRASTRUCTURE

The experience of the functioning of national innovation systems in the developed countries indicates that the development of an innovative model of the national economy is impossible without the formation of an active innovation infrastructure. The article deals with the problems of formation and development of the innovation infrastructure of the country in difficult social and economic conditions based on clustering of the economy. The purpose of the research is to analyze the role and impact of clusters on self-organization and self-development of the country’s innovation infrastructure in the conditions of limited financial resources. The research investigates the tendencies of the spread of regional clustering and its influence on the creation of a network of infrastructure companies, which, on a commercial basis, offer and distribute services. Clustering of regions is accompanied by the spread of the impact of a growing number of clusters (innovation structures of the network type) on the national economy and its innovation infrastructure. A certain infrastructural environment develops around the hub and the core of the cluster. It includes a number of companies specializing in innovative services, which can offer their services on a commercial basis not only to companies in this cluster, but also to all nearby innovative enterprises. The spread of clustering in all regions can serve as a basis for further self-organization and self-development of subsidiary companies under the influence of market mechanisms of management and growth of the innovation infrastructure of clusters into a basic platform of the innovation infrastructure of the country. Activation of entrepreneurship in clusters is carried out through the concentration of business activity and inter-sectoral cooperation. Vertical cluster associations are formed based on the synergy of enterprises, institutions, organizations, and individuals that are heterogeneous in the field of activity and form of ownership. The state, creating a favorable innovation environment, regulates the boundary conditions for innovation infrastructure subjects and clusters, which independently self-organize themselves under the influence of market mechanisms and expand their services to all regions, forming a holistic innovation infrastructure of the country.

Open innovation model in the knowledge intensive business services in the Slovak Republic

Innovation and its management has been a current challenge for companies in the knowledge economy. Open innovation is a system that creates and uses synergies from sharing and collaboration. The digital economy and society support the emergence and functioning of open innovation systems. In the Slovak Republic´s environment, the management of innovations through an open mechanism is a perspective for the development of knowledge intensive business services (KIBS). These services are an important link in the value chain of the Slovak economy focused primarily on the automotive industry. The article deals with the creation of a model of open innovation in the environment of KIBS production in the Slovak Republic. Its elements and their classification are based on the results of the primary survey carried out by the Delphi method. The importance of individual elements thus reflects the priorities of innovation management of KIBS companies in the Slovak Republic. In the current theory, we do not find a model with these specifications. The presented model thus represents an original result supported by the primary research in a specific environment. The construction of the model identifies three building components of the open innovation mechanism: preparation and planning, implementation, evaluation of outputs and a value creation. They are complemented by factors, risks and effects. The model provides the possibility of measurement at the level of inputs and outputs.

Cross-border approach to regions’ smart specialization: experience of the EU member states

In the recent decade, the EU Member States have been actively implementing the regional development policy based on innovative strategies of smart specialization. However, lately, European researchers have been paying increasing attention to the issues of regions’ capacity to overcome the boundaries of administrative units inside the country and abroad and to the need to consider regions in the context of their functioning among others, especially from the viewpoint of the growing role of their innovative networks in global value chains. That is why currently the EU is addressing the development of cross-border smart specialization strategies.
 The paper aims to study the European experience on the functioning of cross-border innovation systems and joint strategic planning of cross-border regions’ development based on smart specialization and to outline the opportunities to implement the EU experience of cross-border approach to smart specialization in cross-border regions of Ukraine with EU Member States.
 The paper analyzes the views of foreign researchers on the links between innovation systems in cross-border space that constitute the theoretical basis of the study of cross-border smart specialization strategies, namely regarding the dimensions and level of their development. The research of European scientists on cross-border innovation systems in specific cross-border regions is examined, in particular on Spanish-French and German-French borders.
 Directions of implementation of smart specialization projects in cross-border context under the EU programs and other EU instruments that support regions in cooperation for the elaboration of joint view of development with neighbouring economically, socially, culturally, and historically close regions are outlined.
 The experience and methodology of the first cross-border smart specialization strategy for Spanish and Portuguese regions are studied in detail.
 The opportunities to use the EU experience by several Western Ukrainian regions based on the joint smart specialization priorities with the neighboring EU states are outlined. For this purpose, 1) the RIS3 strategies of the regions of Poland and Romania adjoining Ukraine and Regional Development Strategies of respective Ukrainian regions were analyzed to detect similar smart specialization priorities; 2) the clusters in the mentioned regions were analyzed as main drivers of achievement of smart specialization goals to detect similar or complementary functioning areas.

FEDERAL AND REGIONAL REGULATION OF INNOVATION ACTIVITIES IN RUSSIA

In the modern world of integration and globalization of world markets, the importance of innovation in the economy and development in the general system of government at the federal and regional levels has increased significantly. The complexity of the tasks being solved requires the development of a modern theoretical and methodological basis for regional management, the formation of adapted organizational and economic, financial and budgetary and other forms and tools for managing innovation and investment attractiveness. The main goal of the study is to reveal the peculiarities of the functioning of regional innovation systems, describe the indicators and features that determine the specifics of each regional innovation system, consider the main methodological approaches to the formation and functioning of regional innovation systems, disclose the essence and possibility of applying general theoretical principles and indicators of state statistical reporting to analyze the innovative position of regions.

The Social (de)Construction of Technology and the (dys)Functions of Innovation Systems

The functions of innovation systems model provides a useful tool with which to analyze the dynamics of an innovation system, a system which has often only been studied in its static state. The framework presented in this paper combines the functions of innovation systems approach with the social construction of technology (SCOT) literature to emphasize the social dimension of the technology substitution process. The framework outlines the process by which changes in the social construction of both the incumbent and/or the challenger can lead to functions or “dysfunctions” of their respective technological systems. Equal emphasis is placed on the incumbent technology and the challenger technology, providing a framework that focuses on both sides of the substitution equation. The framework highlights that the social construction of technology is an ongoing process that is occurring throughout the innovation process, even though path dependencies may develop due to feedback cycles between the functions of innovation systems

The innovation system for diffusion of small wind in Kenya: Strong, weak or absent? A technological innovation system analysis

Kenya is currently seeking to promote rural electrification through a decentralized approach for deploying renewable energy. This article asks whether an innovation system is in place to support the diffusion of small wind which could complement rural electrification using solar photovoltaics. In order to do this, the technological innovation systems framework is drawn upon using a qualitative approach to assess the performance of the small wind turbine sector in Kenya, along the seven innovation system functions. The study is the first to apply this framework to the diffusion of small wind turbine technology. The findings indicate the existence of a nascent and very weak technological innovation system, despite the relatively long history of small wind turbines in Kenya. Weaknesses established in the functions of mobilization of financial resources, guidance of the search for appropriate models and solutions and creation of legitimacy of the technology are all inhibiting the progress of diffusing small wind turbine technology in Kenya. The functions of knowledge development, entrepreneurial activities, networks and market formation were established to be supporting diffusion, although not very strongly. The analysis and conclusions point to the need for enhanced policy attention to target setting, skills enhancement and overall innovation system building.