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The purpose of this paper is to define and analyze the innovation system of China's software industry in order to build its innovation capability.

From a complex adaptive systems (CAS) perspective, the authors researched the constitution and operating mechanism of China's software industry innovation system. By using methods and theories of CAS theory, the innovation problems of the software industry in China were analyzed and valuable suggestions put forth for its future development.

Innovation system is one kind of complex systems and it has the characteristics of CAS.

Quantitative analysis of the software industry innovation system should be emphasized in the next stage of research.

The paper provides a new perspective and useful advice for technology policymakers.

The paper applies CAS theory to the area of social management and provides a new approach to study industrial innovation systems.

The purpose of this paper is to focus on the evaluation model of the enterprises' technological innovation system, based on the theory of complex adaptive system.

Combined with the status quo and recent studies of Chinese enterprises' technological innovation, the paper discusses the complex‐system features of the technological innovation. The stimulus‐response model is used to establish the two‐level framework for enterprises' technological innovation system. By means of the adaptive fitness function, the economic and social utility of enterprises' technological innovation is measured from two dimensions. Finally, the fuzzy catastrophe model is introduced to evaluate the enterprises' technological innovation.

The enterprises' technological innovation system has attributions of the subject aggregation, the systematic openness, nonlinearity and diversity. Thus, the macro‐micro based technological innovation system from the perspective of complex adaptive system is proposed. The system utility is considered based on the system subjects and system structure, and the calculation framework of the adaptive fitness for the whole system is obtained by considering the emergent property describing the system scale effect and structure effect. In fact, the fuzzy theory can well reflect the influential situation that the interactions between different factors may cause the mutation of the higher level and the interactions between enterprises can lead to the shifts of the system.

The paper proposes the complex adaptive system for the enterprises' technological innovation based on the special macro environment in China. A new framework for the research of technological innovation is provided by analyzing the system inner model. Fuzzy catastrophe model can reduce the evaluation irrationality due to the subjective index weights.

Thixomolding® refers to a new technology to mold a magnesium alloy in elaborate forms. The actors that introduced this technology in the Netherlands first operated on a regional level. With the support of the Cyclic Innovation Model (CIM), the innovation system was able to evolve by developing new innovations, although initially Class 1 and 2 type of innovations. In the future, the Thixomolding® innovation system will compete on a European scale, and it is expected that products will be developed for many different industries.

The aim of the applied systems analysis of scientific‐technological innovation is to identify the most effective innovation fields and to develop innovation strategies. This cannot be achieved without the development of theoretical foundations, practical methods and principles, a heuristic algorithm and a computer‐aided decision system. Such a system is described in this article, and represents, it is claimed, the first steps towards a computer‐aided decision system for innovation strategies.

Sisaye and Birnberg (2010a, 2010b) have described the extent and scope of the innovations dimensions as the degree to which learning has affected the organizational structures and processes of the organization. Within this framework, extent has been defined as the degree to which the innovation affects the organization's management accounting administrative structures, systems, and behaviors of members or units within the organization. Extent is synonymous with the two types of learning identified by Argyris and Schon (1978) discussed earlier. Thus, the learning in the extent dimension varies from a technical change within an existing system (single loop) to the adoption of an entirely new administrative system (double loop). While this continuum extends from technical changes that affect a single process or task to administrative changes that affect organization-wide systems and structures, we will treat them as though they are dichotomous. As indicated earlier (Chapter 2), extent is associated with two types of learning: single loop (technical change within an existing system, i.e., gradual-incremental) and double loop (the adoption of an entirely new system, i.e., radical-transformational) (Argyris & Schon, 1978, 1996).

Because the discontinuous and uncertain characteristics of knowledge-based innovation cannot be reasonably interpreted by conventional management approaches, quantum mechanics which begins with uncertainty and concerns with a dynamic process of the complex system, has been exploratorily used in the management field. Although the theoretical new insights are provided by pioneering studies, quantitative research is in short supply. This paper aims to propose a quantum mechanics-based framework for quantitative research, thus extending the application of quantum mechanics in the knowledge management area from a dynamic system evolutionary standpoint.

Based on the similarity comparison between knowledge-based system evolution and atomic motion, the authors construct the atom-like structure of the knowledge-based system and elaborate the evolutionary mechanism of the knowledge-based system, thereby establishing the quantitative model. Apple and Zhongxing Telecom Equipment were selected for an empirical study to demonstrate the usefulness of the models for research on knowledge-based innovation and explore the unique knowledge-based innovation characteristics of the two firms.

First, the transition force of dynamic knowledge shows an inverted U shape; accumulating dynamic knowledge to a moderate degree not only facilitates transforming dynamic knowledge into static knowledge but also balances the relationship between the influence of knowledge force range and dynamic knowledge transformation. Second, existing knowledge is gradually substituted by new knowledge and knowledge density at a high knowledge energy level distinctly increases with a narrower bandwidth. Third, the investment loss is associated with resource configuration, resource utilization and the amount of accumulative dynamic knowledge before investment. Knowledge loss is negatively correlated with the knowledge compatibility coefficient.

The authors use the advanced method in quantum mechanics to legitimately unveil the emergence mechanism of knowledge-based innovation. Meanwhile, the authors capture the non-linear transformation relationship of heterogeneous knowledge and expose the change in ways of both investment loss and knowledge loss that cannot be quantified by conventional models. In doing so, the authors not only reveal the principle of qualitative knowledge change but also offer practical implications for developing flexible and targeted innovation strategies.

First, by proposing a complete quantum mechanics-based framework, the authors not only supplement the quantitative research contents to knowledge-based innovation literature which proposed calls to conduct research in way of quantum mechanics but also overcome the difficulties of knowledge-based system conceptualization and measurement. Second, the authors reveal the uncertain change of knowledge transformation and measure the loss of investment and knowledge, which contribute to identifying defects of firms in knowledge-based innovation. Third, the authors explore the internal mechanism that led to knowledge-based innovation exhibits non-linear characteristics and capture unique dynamic relationships between different variables which affect the emergence of knowledge-based innovation.

Accounting for quality and improved organizational performance has recently received attention in management control research. However, the extent to which process innovation changes have been integrated into management control research is limited. This paper contributes to that integration by drawing from institutional adaptive theory of organizational change and process innovation strategies. The paper utilizes a 2 by 2 contingency table that uses two factors: environmental conditions and organizational change/learning strategies, to build a process innovation framework. A combination of these two factors yields four process innovation strategies: mechanistic, organic, organizational development (OD) and organizational transformation (OT).

The four process innovation typologies are applied to characterize innovations in accounting such as activity based costing (ABC). ABC has been discussed as a multi-phased innovation process that provides an environment where both the initiation and the implementation of accounting change can occur. Technical innovation can be successfully initiated as organic innovation that unfolds in a decentralized organization and requires radical change and double loop learning. Implementation occurs best as a mechanistic innovation in a hierarchical organization and involving incremental change and single loop learning. The paper concludes that if ABC is integrated into an OD or OT intervention strategy, the technical and administrative innovation aspects of ABC can be utilized to manage the organization’s operating activities.

Purpose – The purpose of this study is to gain insights into strategies used by entrepreneurs developing radical innovations to influence the system surrounding them. Specific attention is given to determine the differences between environmental-technology entrepreneurs (ETEs) and non-eco radical innovation entrepreneurs.

Methodology/approach – Ten entrepreneurs (five ETEs) in the Dutch greenhouse horticulture sector are selected for this case study. Their motivations and strategic actions are determined through interviews. The results are analysed using an innovation system function approach.

Findings – Radical innovations in the sector encounter barriers due to the lack of relevant knowledge and subsidies that support the old system. To overcome this, the studied entrepreneurs focus their strategies on building new innovation systems. Interestingly, ETEs receive more governmental support and try to improve the sector as a whole. However, sustainability alone is not enough to create added value.

Social implications – Policy makers can provide better support for radical innovations by increasing the availability of relevant knowledge and creating a level playing field. Alternatively, they can present these pioneering entrepreneurs as examples for others to follow. Sustainability has been important in the sector for some time, but until now has not changed the nature of business.

Originality/value of paper – In innovation systems research, the micro-level actions of entrepreneurs have not received much attention. Furthermore, the insights regarding motivations and strategies of radical innovation entrepreneurs in the context of a mature system are novel. Finally, the results regarding barriers for ETEs are an original addition to the theory of barriers for eco-innovations.

The purpose of this paper is to present and evaluate the performance of innovation systems by considering two indicators of efficiency and effectiveness. The scope of the evaluation is globally and due to the situation of each country, the suggested strategies are proposed to maintain the status quo or move toward the desired situation for countries.

The approach is to compare and benchmark the countries in terms of the efficiency and effectiveness of their innovation system. The Global Innovation Index report’s input-to-output ratio and the global competitiveness report are used for the assessment.

The findings indicate that countries such as China, Switzerland and the USA have an efficient and effective innovation system. However, the innovation systems in countries such as Brazil and Zimbabwe are not only inefficient but also ineffective. The findings also indicate that the innovation systems of countries such as Iran, Armenia and Egypt are efficient but ineffective. Finally, the authors can name Australia, Qatar and Russia as countries with effective but inefficient innovation systems.

Assessment of national innovation system using efficiency and effectiveness performances is done for the first time at the global stage.

This chapter considers the role of technology transfer intermediaries (TTIs) in the processes of innovation in networks involving universities, research and development centres, and business firms from an international perspective. A diversity of types of TTIs is recognised in terms of their particular interests in the operation of innovation processes and the conditions they impose in transactions involving intellectual property. It will identify the various objectives of sponsoring stakeholders as differentiating the missions and accountabilities and, in turn, determining the focus and roles of different types of TTIs and the interactions and networking between them, both formal and informal.

In discussion, the chapter will propose that the significance of systemic influence on the processes of technology transfer and innovation should be researched at two levels. At the micro-level of personal interactions, examining how systemic influences shape tacit knowledge transfer between and learning by individuals engaged in research and innovation processes. Second, at the level of national cultures, examining the ways in which the cultural context institutionalises patterns of innovation and technology transfer networking.