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This chapter presents the innovation policy context and discusses why governments need to develop a strategic approach to fostering innovation. It shows that innovation, broadly defined, is a key driver of growth performance and of economic growth. It indicates
that it is essential for all governments to develop policies to strengthen innovation performance and outcomes. Because innovation takes various forms, they can adopt different policies and instruments. The mix of appropriate policies to foster innovation depends on many
factors; it is important to recognise that "one size does not fit all".