ABSTRACTUniversity: The University of ManchesterName and Degree: Robert Kin Shing LAI for the degree of Doctor of PhilosophyThesis Title: Systems of Innovation: Case Study on Traditional Chinese Medicine (TCM) Organisations' Knowledge & Capability Developments through CollaborationsDate: November 2013Chinese medicine is one of China's key national assets, an indigenous medical knowledge and practices that serves Chinese for thousands of years. As very little research has been focused on Traditional Chinese Medicine (TCM) from systems of innovation perspective, the topic of study was chosen. This qualitative case study research introduces, defines and explores how TCM organisations collaborate to innovate from an evolutionary, interactive system perspective. In particular, the focus is on the development of knowledge and capabilities related to TCM drug research and production. Thirty one TCM organisation cases were analysed and presented in this study, interpreting their behaviour in terms of ideas drawn mainly from the literatures on systems of innovation, collaboration between organisations and resource (knowledge) based theory of the firm. Actors such as government play various roles in facilitating organisational and sectoral innovation processes. 'Various policy instruments', in particular research funding and institutions (e.g., standards and regulations) were used to enhance innovation and production. Various forms of collaborative networks were found among key actors: enterprises, universities, research organisations and end users. They contribute to the active innovation processes of 'Identification, Selection, Integration and Creation' of tangible and intangible outcomes and changes.Based on the research, new insights were derived as to how indigenous resources (defined as original and/or traditional knowledge and capabilities) may lead to indigenous innovation. This thesis contributes to the academic understanding of systems of innovation operating in the context of indigenous product and related process developments with reference to various actors interplaying in complex networks (systems) of collaborations. New understandings made on the processes of indigenous innovation (using TCM as a case) through investigating the actors' roles, inter-relations and their restless attempts to identify opportunities and problems, select and integrate different indigenous, scientific, technological and managerial knowledge, capabilities, resources and institutions, to create value that may 'fit' in evolutionary terms, the demand of the key actors in the sector.