Development paths for emerging innovation systems: implications for environmental innovations

The functions of innovations systems approach states that in order for an innovation system to function well several key process or functions have to be addressed. Earlier contributions on this topic provide empirical descriptions of innovation systems over time and present analyses of how the key activities fluctuate over time .This body of literature shows that there are considerable differences between function fulfillments in different innovation systems making it difficult to directly compare innovation systems. In this paper we present a first step towards such a more theoretically based approach by describing how innovation system ideally functions over time and then use this approach to analyze 17 case studies of technological innovation systems regarding environmental innovations in the Netherlands. More specifically, we describe desirable patterns of function fulfillment over the lifecycle of a technological innovation system, thereby focusing on the transition from the exploratory phase to the growth phase. We then compare these theoretical patterns to assess 17 technological innovation systems concerning environmental technologies. Outcomes show that environmental innovations in general follow similar patterns to mostly market-driven innovations but that some key processes remain unaddressed. This leads to important insights for policymakers.