The nature of long-run technological change: innovation, evolution and technological systems

Abstract

The aim of this paper is to define the concept of technological system as a useful tool for analysing the technological performance of an economy. In order to deal with system openness and related concepts, the main methodological issues are presented, paying particular attention to the evolutionary methodological foundations of the process of technological change. Then, the main building blocks of a technological system and its dynamics are analyzed in order to highlight the relevant features of this approach. An empirical comparison between German and Italian technological systems is then performed.