Book excerpt: This book supports companies in the transport sector, political decision-makers, transport engineers, planners and scientists doing fundamental research who are confronted by growing challenges in transport. These challenges arise from a number of powerful socio-technical trends, including: digitalisation, globalisation, urbanisation, and the requirements of individual users and the increased need to reduce environmental impact of transport. Providing the innovations required to cope with these challenges is not a simple matter. Towards Innovative Transport Systems structures and compiles theoretical foundations from evolutionary economics, the sociology of technology and innovation research in a way that provides a broad understanding of innovation processes without demanding prior knowledge. Using the Concept of Transport System Evolution (CTSE), it explains in depth the economics of innovation in the transport sector, thus contextualising processes, drivers and obstacles at work in current practice; among such processes are the changeover to electric mobility, the realization of autonomous cars, the revival of railway by innovations and dealing with disruptive innovations in transport. The CTSE is an approach to making concrete the multi-level perspective for the transport sector introduced by Frank Geels. On the basis of the CTSE, the author proposes principles for a novel innovation policy in transport that can serve the reader as a guide when making strategic decisions.