In this book we have studied the formation and development of knowledge-intensive firms in two moderately innovative countries: Portugal and Italy. We focused on two sectors – software and biotechnology – that emerged in the second half of the twentieth century and have rapidly become an important locus of scientific and technological change, as well as a priority target for extensive public and private investment. Given their economic importance and growth potential, they have become major innovation drivers in most developed countries and have been identified by several moderately innovative countries as essential to completing their transition to the knowledge-based economy (Soete 2002).