This chapter describes the concept of National Innovation Systems (NIS) using capabilities approach and provides an empirical analysis to measure the concept. The discussion on the concept shows how the understanding of governments’ innovation policy shifted away from a narrow stand point of direct involvement to the innovation to a broader concept that includes a complex system of institutions, infrastructure, human resources and the policy. Using this concept, the determinants of the national innovation system of the countries are discussed and different capabilities related to the system are identified. Finally, an explanatory factor analysis (EFA) is applied to identify main capabilities related to the National Innovation Systems.