In today's knowledge-driven world, innovation and innovation systems have become key policy issues. However, the extent of knowledge that is available on these concepts in less developed countries is still relatively low. Much of what we know about innovation theory and systems has come from the developed countries and reflects their world view. This apparent knowledge deficit has major implications for less developed countries. Innovation Systems and Capabilities in Developing Regions adds to the growing body of knowledge on developing countries. The theoretical and empirical case studies presented here advance the notion that, while developing countries may not engage in frontier research, a critical knowledge base upon which these countries compete for global markets is emerging. There is evidence that state and non-state actors are increasingly emphasising policies that sit within the framework of national innovation systems. This book illuminates this shift in policy competence at national levels. The contributions in this volume highlight the need for thorough understanding of the role of diffusion-based innovation linked to technology transfer and acquisition. They also provide empirical evidence on the drivers, dynamics and impact of such innovation in developing economies and the constraints that apply. Contributors also document the application of the innovation system approach in developing countries as well as the build-up and diffusion of technological capabilities within innovation systems. Academics, higher level students, policy makers and practitioners involved with innovation and the economics of technical change, particularly in developing countries, will find this a valuable book.