The authors of this notable book examine long-run technological change and the complex set of interrelated phenomena which can be grouped under the heading of #innovative processes#. They refer to a broad notion of the technological system and propose an original methodology to ensure consistent empirical analysis. The authors explain, rather than merely identify, the effects of technological change. They do so by promoting the analysis of intersectoral innovation flows as a way to investigate the nature of technological change. At both the macro and sectoral level, institutional and structural elements are considered along with more standard technological and industrial variables. International comparisons are carried out on a systematic basis for a set of OECD countries, plus a focus on two important industrial sectors (motor vehicles and chemicals). The authors find that institutional arrangements (such as models of capitalism) turn out to play an important role in shaping both the internal and external relationships of macro technological systems. Moreover, the structure and performance of an industry is shaped by the broader techno-economic elements of the relevant sectoral technological system. The authors successfully integrate the theoretical and empirical analysis of technological systems with a specific investigation of intersectoral innovation flows. The book will be welcomed by students, scholars and researchers in the fields of innovation, evolutionary economics, industrial organization and business studies.