Published:
![](/sites/default/files/styles/max_2600x2600/public/datastore/migrated_files/publications/_migrated/pics/icp2.jpg?itok=0Bg5emeM)
Innovation in its many forms has been recognized as a critical dimension in improving economic performance in knowledge-driven economies. The innovation activity of firms is a key driver of competitiveness and economic growth. Although the process occurs at a company level through skillful management, a firm’s innovation performance can be enhanced by appropriate policy measures conducted in a business-friendly environment. This document identifies policy options and instruments available to enhance the innovative capabilities of firms. It is illustrated with examples of practical know-how, hands-on experiences and case studies with a view to developing practical guidelines.