This paper proposes a new approach to analyzing technological change by focusing on the dynamics of innovation systems. The authors argue that innovation systems are crucial determinants of technological change, and that the emergence and evolution of these systems co-occur with technological advancements. Traditional methods of innovation system analysis, which primarily focus on structural aspects, are deemed insufficient for understanding the complex dynamics of innovation. Therefore, the authors introduce a framework that emphasizes seven key processes, labeled as "functions of innovation systems," which are essential for effective innovation systems. These functions include entrepreneurial activities, knowledge development, knowledge diffusion through networks, guidance of the search, market formation, resources mobilization, and creation of legitimacy/counteraction of resistance to change. The paper also discusses the interactions between these functions and their impact on the overall performance of the system, highlighting the potential for virtuous and vicious cycles. To analyze these processes, the authors propose a method called process analysis or history event analysis, which focuses on the sequence and order of events rather than statistical approaches. This method aims to provide deeper insights into how innovation systems influence technological change and can be applied to empirical studies in fields such as Sustainable Technology Development.This paper proposes a new approach to analyzing technological change by focusing on the dynamics of innovation systems. The authors argue that innovation systems are crucial determinants of technological change, and that the emergence and evolution of these systems co-occur with technological advancements. Traditional methods of innovation system analysis, which primarily focus on structural aspects, are deemed insufficient for understanding the complex dynamics of innovation. Therefore, the authors introduce a framework that emphasizes seven key processes, labeled as "functions of innovation systems," which are essential for effective innovation systems. These functions include entrepreneurial activities, knowledge development, knowledge diffusion through networks, guidance of the search, market formation, resources mobilization, and creation of legitimacy/counteraction of resistance to change. The paper also discusses the interactions between these functions and their impact on the overall performance of the system, highlighting the potential for virtuous and vicious cycles. To analyze these processes, the authors propose a method called process analysis or history event analysis, which focuses on the sequence and order of events rather than statistical approaches. This method aims to provide deeper insights into how innovation systems influence technological change and can be applied to empirical studies in fields such as Sustainable Technology Development.