However, the innovation system is a broader concept, also encompassing research and education systems, government, civil society and consumers. The key aspects of innovation systems are the capabilities of these various actors, the connections among them, and the enabling environment for innovation that they create. This includes a range of capabilities, from absorptive capacity (to assimilate existing knowledge and technology) to the ability to engage in advanced R&D and technological innovation. Firms’ capacities to introduce innovations in local, national and international markets are a prerequisite for technological upgrading and improving a oountry's productive capacity.