Innovation and technology absorption are now firmly recognised as one of the main sources of economic growth for emerging and advanced economies alike. That is why innovation is seen as a possible catalyst for revitalising post-transition economies hit hard by the recent financial and economic crisis. Is government intervention needed to foster innovation in post-transition economies? This is the central question to which this book responds. The answer is yes, but a qualified yes. Innovation activities are rife with market failures that tend to hold back private investment. And badly designed...