A striking feature of the neoclassical economic theory which has been dominant in Western universities in recent years is that it has had so little to say about innovation and innovation policy which is useful for policy-makers.
In contrast, policy-makers have seen it as a key issue on which they need to focus. They have recognised that innovation is a major factor driving economic growth and that losing the race for innovation advantage in the global economy can result in a relatively lower standard of living as nations lose higher-value-added sectors.
If we look around the world, we see that in recent years some three dozen countries have created formal national innovation strategies and at least two dozen have established national innovation agencies. Countries as diverse as Finland and China have made innovation a national priority.