It is a networked process, and the priorities of government policies, with limited exceptions, need to be directed away from the support of individual firms towards the creation and maintenance of networks of firms and their links with research organisations. It needs a national innovation systems approach, thinking about filling gaps and how the constituent elements could fit together better. You can t have an innovative, knowledge economy without knowledgeable, creative people. Universities are the wellsprings of knowledge. Along with government they need to take a broad national systems approach, identifying various roles to be filled, some focusing on basic research, some on industrially-relevant research and training.
Universities also have to support research and teaching in innovation.
Entrepreneurship and technology management need to be taught on all science and engineering undergraduate courses, and at a postgraduate level. Business Schools need to make innovation management core elements of MBAs. Students need to be made aware of the social and economic importance of innovation and entrepreneurship. Fourth, the government has itself to be innovative. Its policies, regulations and laws need continually to be examined from the perspective of whether they support or constrain innovation.