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The conception of innovation has evolved quite drastically over the last 60 years. This evolution has generated two results: first, innovation is no longer considered as a discrete occurrence only engaging the development of technical solutions, but as a process also engaging interactions between all parts of society; second, in the social network theories, innovation results from the combinations of tangible forms of capital in conjuction with intangible forms of capital described by disorderly and sustained interactions occurring between economic actors. This study introduces selected concepts from the analysis of social networks and integrates them into National Innovation System (NIS) conceptual framework. The application of social networks into NIS provides a deeper understanding of mechanisms driving industrial development.