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This book investigates the effects of organizational contexts on the process of technological innovation. It analyses the internal organization of the firm as well as external influences, and examines how these factors affect a firm's innovative potential. The organization of the firm, it is argued, is intrinsic to the innovation process itself.

The authors consider new concepts of the theory of the firm, look at evolutionary economics and concepts of innovation within this school of thought, and analyse national and sectoral systems of innovation. They discuss firm-specific knowledge and organization, and its effects on innovative opportunities. In addition, they pay special attention to a firm's ability to innovate in relation to incentives, and the sources of technology available to them. From this they conclude that organizational factors are primary features of the process of technical change.

Included in the discussion are examinations of:

• networks of collaborating firms in R&D activity
• 'technology foresight' and the direction of future innovative activity in industrial sectors
• the relationship between business units and corporate parents
• government and regulatory agencies
• the role of capital, and short termism in financial markets
• the relationship between suppliers and customers

Technological Change and Organization will be of welcomed by those interested in technological change and innovation, institutional and evolutionary economics, as well as to microeconomists interested in the theory of the firm and industrial organization.