What is the relationship between technological innovation and economic growth? In Technological Systems and Industrial Dynamics, this question is answered through an analysis of four 'technological systems - factory automation, electronics and computers, pharmaceuticals and biotechnology, and powder technology - and their impact on Sweden's economic performance. The volume begins with an overview of how the technological systems studied here relate to Sweden's overall technological profile. It then provides an in-depth explanation of each of the four chosen technological systems. The analysis continues with a survey of the literature on technological spillovers, a presentation of the results of simulations of the macroeconomic effects of spillovers, and a summary of the framework for studying technological systems derived from the four cases. The book concludes with a discussion of key lessons and issues for policy-makers, both public and private. Technological Systems and Industrial Dynamics will serve as a unique reference for scholars and practitioners of innovation and technological change, economics, industrial organization and public policy. It is the second in a series of three research publications sponsored by the Swedish National Board for Industrial and Technical Development.