In today's knowledge-driven world, innovation and innovation systems have become key policy issues. However, the extent of knowledge that is available on these concepts in less developed countries is still relatively low. Much of what we know about innovation theory and systems has come from the...

pt. I. Conceptual and theoretical contributions -- pt. II. Innovation systems case studies -- pt. III. Innovation, technological learning and capabilities -- pt. IV. Learning and interactions within systems.

This paper extends the existing literature on strategic R&D alliances by presenting a model of innovation networks with endogenous absorptive capacity. The networks emerge as a result of bilateral cooperation over time between firms occupying different locations in the knowledge space. Social...