In Canada's National System of Innovation Jorge Niosi discusses the theoretical underpinnings of the concept of innovation, examining the works of Bengt-Ake Lundvall, Christopher Freeman, Richard Nelson, Charles Edquist and others around the world. He argues that the concept is particularly useful in analysing science and technology policy and related institutions.

Niosi looks at the history of Canada's National System of Innovation (NSI), particularly during the post-war period, illuminating the fact that during and after World War II over 30 research universities, 150 government laboratories, and dozens of government policies aimed at nurturing innovation in private firms, academia, and government organizations were developed. He uses data obtained through questionnaire responses from all the large research and development organizations in Canada to analyse Canada's domestic system of innovation, finding increasing collaboration between universities, government laboratories, and private firms.

He concludes that Canada has been quite successful in creating a national system of innovation and that the federal government, through its initiatives and innovative techniques, has been the main factor in the creation of this system.