Creating System Innovation: How Large Scale Transitions Emerge

'System innovation' is a radical change of institutions, structures and values concerning an entire sector or even more sectors.This study leads to conclusions about the possible role of governments when 'system innovation' is predominantly emergent. The popular idea of proactive governments in realizing system innovations is questioned by these conclusions.The recommendations emerging are, that highly process-oriented governments should focus on creating favourable conditions for system innovations instead of concentrating on content areas where these innovations might take place.Three examples of realized 'system innovations' are examined:· The privatisation of British Rail,· The explosive development of a biotech- industry around Boston (USA), and· The realization of the Comprehensive Everglades Restoration Program (South Florida, USA).Recurring topics in these case studies are the emergence of the system innovations, the role of knowledge, the way initiators deal with social resistance and the role of public- private interaction. The authors show that even seemingly well designed 'system innovations' contain many emergent elements and often lead to unforeseeable and unmanageable dynamics.This is a publication of the Consultative Committee of Sectorcouncils for Research and Development (COS), The Netherlands. www.minocw.nl/cos