As the economies of western countries move from primarily resource-based to knowledge-based, and trade liberalization limits what governments can do through direct action, the landscape of innovation is changing and policymakers must react accordingly. This exciting new book examines the challenges that policy makers face in responding to a new environment. The book addresses how governments are now seeking to drive innovation through new forms of R&D policies, through public procurement, skills development, entrepreneurship and innovation culture to name but a few of the approaches.