The central idea of this paper is that innovation systems are a very important determinant of technological change. We describe that the emergence of a new innovation system and changes in existing innovation systems co-evolve with the process of technological change. Therefore, it is necessary to create more insight in the dynamics of innovation systems. Traditional methods of innovation system analysis that mainly focus on the structure of innovation systems have proven to be insufficient. Therefore, we propose a framework that focuses on a number of processes that are highly important for well performing innovation systems. These processes are labeled as “functions of innovation systems”. After explaining this framework and embedding it in existing literature, we propose a method for systematically mapping those processes taking place in innovation systems and resulting in technological change. This method can be characterized as a process analysis or history event analysis. Clarifying examples are taken from the empirical field of Sustainable Technology Development

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Despite its worldwide success, the innovation systems approach is often criticised for being theoretically underdeveloped. This paper aims to contribute to the conceptual and methodological basis of the (technological) innovation systems approach. We propose an alteration that improves the analysis of dynamics, especially with respect to emerging innovation systems. We do this by expanding on the technological innovation systems and system functions literature, and by employing the method of 'event history analysis'. By mapping events, the interactions between system functions and their development over time can be analysed. Based on this it becomes possible to identify forms of positive feedback, i.e. cumulative causation. As an illustration of the approach, we assess the biofuels innovation system in The Netherlands as it evolved from 1990 to 2007.

In this paper, the concept of System Functions of Innovation Systems is applied to provide an explanation of the success or failure of an emerging technology, i.e. biomass gasification, with empirical data on the evolution of this technology in the Netherlands during 1980-2004. A new list of System Functions has been developed lately and is used to identify the most relevant events in the evolution of the Biomass Gasification Innovation System. We show that a structural misalignment occurred between the institutional framework within which the technology could have been developed and the technical requirements of the technology. Finally, the absence of System Functions such as the guidance of the search, resource allocation and advocacy coalition explains the failure of this technology over time.

This study contributes to insights into mechanisms that influence the successes and failures of emerging energy technologies. It is assumed that for an emerging technology to fruitfully develop, it should be fostered by a Technological Innovation System (TIS), which is the network of actors, institutions and technologies in which it is embedded. For an emerging technology a TIS has yet to be built up. This research focuses on the dynamics of this build-up process by mapping the development of seven key activities: so-called system functions. The main contribution revolves around the notion of cumulative causation, or the phenomenon that the build-up of a TIS accelerates due to system functions reinforcing each other over time. As an empirical basis, an analysis is provided of the historical development of the TIS around automotive natural gas technology in the Netherlands (1970-2007). The results show that this TIS undergoes a gradual build-up in the 1970s, followed by a breakdown in the 1980s and, again, a build-up from 2000 to 2007. It is shown that underlying these trends are different forms of cumulative causation, here called motors of innovation. The study provides strategic insights for practitioners that aspire to support such motors of innovation.