Business enterprises operate as components of what is commonly referre
d to as a system of innovation. The system of innovation is the contex
t for a process of innovation that can be described in terms of the kn
owledge sources and flows that lead to commercial advances, In this pa
per, we develop a model of the innovation process and of the system of
innovation in which it takes place. The model, which describes the sy
stem from the perspective of the firm or enterprise, has the following
properties: (a) it is flexible in its application but symmetrical in
structure, making it easier to generalize or specialize; (b) it is sim
ple, which helps makers and implementers of policy to visualize their
role in the system; and (c) it is quantifiable, which aids comparisons
among firms and among different systems of innovation. We make some a
pplications of the new model, and show how other frameworks can be map
ped onto it, Tn particular, we show the relationship with the European
Community's model Innovation Survey and based on that, make some comm
ents on future directions for survey instruments. (C) 1998 Elsevier Sc
ience B.V.