Innovation is a key concept in the analysis of industries. Numerous studies analysed the link between industry and innovation. Cross-sectional and longitudinal studies analyse the benefits of innovation within and between industries. Previous works largely emphasized the fundamental role of innovation as a determinant success factor on firm and industry level. According to the Economist, innovation has become the industrial religion of the late 20th century. This special issue aims at providing both theoretical insight and empirical evidence towards a better understanding of such industries as they offer new or alternative explanations of industry evolution, which can alter the diffusion and adoption of innovation.