Systems of innovation, the urban order and sustainable development.

Innovative cities are essential for the economic growth and development of countries. At the same time, however, social and environmental problems related to city growth can be serious threats to the full realisation of the socio-economic contribution that cities can make. City environments thus often provide both new problems and the creative and diverse environments, which make it possible to solve them. The question of whether or not sustainable development is possible largely will be answered in cities. This is also the case for problems related to waste management. Landfills may be located in the countryside, but if a country is to reduce environmental costs, the results will rest on the innovation power of cities. In this paper it is argued that the notion of a 'system of innovation' is helpful in understanding the factors that shape the processes of innovation and that determine the extent to which environmental problems may be solved. In this context, institutional innovation and political innovation as compared to technical innovation are of special importance.