ABSTRACT
During the latest few decades, economists have given increasing attention to the role of 'institutions' in the functioning and change of economic systems. 'Institutions' have also become increasingly important in innovation theory. From occupying a background position, they have been brought more and more into the analysis and have come to be viewed as a main character in the innovation process. The role of institutions is also emphasized in all versions of the system of innovation approach, as was shown in section 3.7. of the Introduction to this book. In addition, the role institutions play in the innovation process has become more qualified: from being looked upon as rigidities and obstacles to innovations to being seen as factors that can both retard and support innovation - depending, for example, on the degree of mismatch between technologies and institutions.
