The National Innovation Systems Approach and the Innovation Matrix

Abstract

Innovation is a complex process that involves not only the innovative firm but also a system of interactions and interdependencies between that firm and other organisations and institutions. The innovation matrix is inspired in the traditional input-output tables, but instead of measuring flows of intermediate goods and services the cells of the matrix express flows of innovation outputs (flows of knowledge) between industries. After presenting the evolution of the innovation models, we show that the innovation matrix is a methodology that fits with the commonly accepted innovation concept. Despite of some problems, the innovation matrix is an appropriate tool for identifying the locus of innovative activity in economic space and for studying possible relations between innovative activities and other economic activities. Two examples of innovation matrices are also presented: the Italian and the Danish. The paper ends with our research agenda for constructing the Portuguese innovation matrix.