We have seen from the preceding finely-textured case material from key European industrial sectors that there are two main kinds of innovation-linked knowledge flows typically in operation. The first and more traditional of these is broadly intra-sectoral, which we here term cumulative, while the second is newer and accordingly more interesting, which we here term combinatory. Cumulative knowledge acquisition and application occurs within either lead-firms or their sectoral system. The term system denotes repeated historic interactive relations with, for example, preferred suppliers. Thus even though it is well-known that a complex sector such as automotives habitually procures from other sectors such as rubber or glass, such suppliers are likely to exist in a systemic relationship over time with their prime customer (s). Hence, knowledge flows are cumulative and systemic; we are obviously alluding to something akin to that described by Breschi & Malerba (1997) as a sectoral innovation system. The more recently observed combinatory knowledge flows that are engaged in with respect to innovative interactions are extra-sectoral, non-systemic and often involve combinations of distinctive, possibly unexpected interactions. These may, for reasons to be discussed have elements of a more regional innovation system character.

For introductory purposes it is helpful to reflect upon the strong and necessary new knowledge flow networks occasioned in the automotive and agricultural industries by the rise of the twin forces of heightened oil-prices on the one hand, and widespread inter-governmental concerns about the contribution emissions from hydrocarbon-fuelled energy make to greenhouse gas (GHG) production. This is widely-seen as a proximate cause of global warming and its correlate, climate change. As is well-known, there are numerous candidate solutions to anthropogenic climate change, some of which would enable the continued utilisation of hydrocarbon energy inputs provided this resulted in zero GHG emissions. For the moment, it is easier to envisage this for large scale energy produced in power stations than small scale energy produced in petrol or diesel driven road vehicles. Thus ‘clean coal’could be burnt in power stations and carbon emissions, notably CO2, captured and stored (CCS). Currently, there are few non-experimental technologies being deployed to achieve full CCS. One that is involves the Norwegian oil firm Statoil that utilises CCS at its operations in the North Sea. The process is extremely expensive and whether or not there might be leakage problems as CO2 percolates through undersea rock strata is a serious concern warranting constant monitoring. The reason Statoil leads in this technology is regulatory, in that the Norwegian government threatened GHG emitters in the oil industry with a punitive Climate Change taxation regime. Statoil was thus incentivised to innovate their CCS application. That it might prove to be a profitable technology to market or license in future was a minor consideration.