ABSTRACT
It is almost universally accepted that technological change and other kinds of innovations are the most important sources of productivity growth and increased material welfare — and that this has been so for centuries. They are also a major cause of the destruction of old jobs as well as the creation of new employment. 2 ‘Systems of innovation’ is a new approach for the study of innovations in the economy that has emerged during the last decade. In this introduction I will discuss reasons why this approach is fruitful for studying innovation and technical change, and highlight some insights the approach provides into economic development. I will also review the historical development of the approach, outline its characteristics, and address the major arguments presented in this volume.
