This paper sketches a co-evolutionary model of the change dynamics characterizing industries submitted to the radical transformation of their technological, institutional, and economic structures. These structural changes take place within a (rather long-term) dynamic of innovation whose trajectory and inflection points are guided, temporally and spatially, by the interdependency, embeddedness, and co-evolution of technological, industrial, and environmental factors specific to this industry. We first show how the environmental dimensions (particularly the spatial and institutional ones) of the industry are closely and dynamically inter-related. Then, drawing from the cases of pharmaceutical and biotechnology firms, we show how these dimensions co-evolve with the technological and industrial dynamics of the industry. JEL O3, B52, L65.