It is only recently that the “innovation systems approach” has become a framework for micro‐economic research in new institutional economics in tourism‐related businesses and activities. There is still much to be explored. Cultural tourism phenomena constitute noteworthy objects for illustrative case studies, embedded as they are in business as well as maintaining relations with public governance structures and voluntary organizations. Since 1971, Roskilde Festival (Denmark) has developed its role as a leading element in an emerging cultural innovation system. Festival organizers maintain long‐term, dense and multi‐faceted relations. Funds from the (non‐profit) festival are efficiently channelled into cultural and sports facilities, enhancing the attractiveness of the region. To keep ahead in the festival market, innovators in the field of managerial systems, technologies and services are deliberately invited to use the grounds as test benches for new ideas. The concept of innovation systems allows for a better understanding of the complex driving forces and mechanisms that mediate the conditions, the extent and the outcomes of innovative behaviour. Roskilde is a not static event. Since 2001 especially, wider ranging organizational structures have been constructed and politically enforced with the aim of nurturing spin‐offs, and including strong representation within the educational and research sectors.
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