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In the last decade ‘sectoral systems of innovation’ have emerged as a new approach in innovation studies. This article makes four contributions to the approach by addressing some open issues. The first contribution is to explicitly incorporate the user side in the analysis. Hence, the unit of analysis is widened from sectoral systems of innovation to socio-technical systems. The second contribution is to suggest an analytical distinction between systems, actors involved in them, and the institutions which guide actor’s perceptions and activities. Thirdly, the article opens up the black box of institutions, making them an integral part of the analysis. Institutions should not just be used to explain inertia and stability. They can also be used to conceptualise the dynamic interplay between actors and structures. The fourth contribution is to address issues of change from one system to another. The article provides a coherent …