by Loet Leydesdorff
Innovation can be considered as an interactive recombination among, for example, knowledge-based options and market potentials. This operation is both interactive and recursive. The carrying agencies provide the substantive variation by interacting and changing their environments reflexively. From this perspective, the institutional layer can also be considered as a retention mechanism. The model of National Systems of Innovations will be compared to the case of European RTD networks.
The differentiation no longer needs to be resolved (by integration), since the network configurations can be changed and reproduced by means of "translations" among historically changing codes.