This book provides an account of work in the Schumpeterian and evolutionary tradition of industrial dynamics and the evolution of industries. It is shown that over time industries evolve and change their structure. In this dynamic process change is affected and sometimes constraint by many factors: knowledge and technologies, the capabilities and incentives of actors, new products and processes, and institutions. All these elements and their relations drive innovative activities and affect economic performance in an industry. Investigations into these complex phenomena show a deep interdependence between empirical work delivering a rich account of regularities and stylized facts in the structure of industries and their change, and theoretical analyses ranging from appreciate theorizing to formal modeling.