Canada and Australia both aspire to have a vibrant biomedical sector, but their
performance is very different. The paper uses innovation systems theory to search for
reasons for these differences. It develops, within a knowledge framework, a set of
indicators to measure the dynamic performance of the two sectors. The results suggest
that the dynamics of the Canadian biomedical innovation system have been positively
reinforcing, while the Australian under performance has been the product of its failure
to effectively use the knowledge generated and diffused within the innovation system.
The results support the use of the innovation systems approach