ABSTRACT
Following Schumpeter’s (1939) exposition of the importance of understanding the co-evolution of technology, firm and industry structure, evolutionary economists have taken on this dynamics to view economic growth as a differentiating, non-linear and complex process (Nelson, 2008). Taken together, any attempt to understand firms’ successful transformation from technological followers to leaders requires a profound unravelling of the sectoral innovation system associated with technological leaps. Economic growth, thus, is not an aggregate phenomenon; rather, it is determined by the country’s different sectors, each characterized by its own dynamics (Nelson and Winter 1982; Nelson 2008).
