The social shaping of innovation: networks and expectations as connecting dynamics in regional innovation systems

ABSTRACT The study of innovation dynamics has expanded widely in recent decades. However, it has failed to include research focusing on the social process and demonstrating the mechanisms of a given system's innovative capacity, thus resulting in the fragmentation of theoretical approaches rather than the construction of a cohesive framework. Based on the assumption that innovation depends not only on the structural conditions of the context in which a system is inserted but also on the relationships established between the key actors in a given system, this article analyses the innovation system in Pernambuco (Brazil) as a strategic research material which highlights agency and the structural aspects of innovation dynamics. It presents a mixed-method approach to understanding the innovation structure, based on social network analysis and the expectations of innovation actors regarding systemic failures and desired change. The results show the interconnections between the two methods and emphasise the need to overcome conceptual and methodological agency-structure dilemmas to ensure that public policy is better informed.