In several parts of the world, countries are undergoing economic, social, and political transitions, enhanced and accelerated by the forces of globalization. These transition economies can serve as laboratories for understanding the innovation process. This volume features original theoretical and empirical research. It offers the first comprehensive view of innovation system development in the context of small catching-up economies. Smallness, path dependency, and latecomer status of such economies create some inherent limitations for their innovation systems, but these special characteristics can offer advantages as well. For example, smallness is often related with increased flexibility and shorter reaction times, while latecomers can benefit from earlier experiences of their more advanced neighbors. Path-dependency highlights the fact that the innovation system development processes are considerably influenced by the past experience of a particular country or region. By incorporating these features into an integrated analysis, the authors address such questions as: ·         What special features characterize the innovation system development in small catching-up economies? ·         What are the causes for innovation success or failure? ·         How do organizational capabilities and internationalization tendencies relate to company level innovations? ·         What is the role of human capital and social factors in the innovation process? ·         How can various policies support innovation in an integrated manner?