Incentives and Support Systems to Foster Private Sector Innovation
Governments in many countries are devoting increased attention to bolstering business innovation capabilities. This interest reflects growing recognition of the importance of innovation in driving economic growth. This paper provides a brief overview of policy instruments to support business innovation, identifying the tradeoffs inherent in policy design and the development of coherent policy mixes. While the paper draws primarily from the experience of OECD economies, it aims to identify lessons that can be applied to a more diverse set of economies.