Even the powerful Boeing Corporation probably cannot design and build a new aircraft by itself anymore. In the case of its 777 jet, it relied on others to design the engines, the fuselage was built in Japan, and the rudder in Australia where the greater expertise resided. When firms are dealing with such risk and complexity, it makes sense to have a series of support systems with others. In the private sector this entails close collaboration between producers and their suppliers, and co-operation with all sorts of industrial or research associations. These kinds of networks are growing to be so important that I believe they are features of a new generation of innovation process.
Firms are only one part of larger support systems that are called national innovations.
Other parts include educational institutions, which make important contributions through research and teaching. The legal system protects intellectual property through patents and copyright. Financial institutions provide investment and venture capital. International research shows that it s the strength of the relationships amongst the constituent parts that provides the greatest support to innovative firms in national innovation systems. Technology itself is also more closely integrated in the new innovation process.