This authoritative and enlightening book focuses on fundamental questions such as what is innovation, who is it relevant for, what are the effects, and what is the role of (innovation) policy in supporting innovation-diffusion? The first two sections present a comprehensive overview of our current knowledge on the phenomenon and analyse how this knowledge (and the scholarly community underpinning it) has evolved towards its present stance. The third part explores the role of innovation for growth and development, while section four is concerned with the national innovation system and the role of (innovation) policy in influencing its dynamics and responding to the important challenges facing contemporary societies.This comprehensive book is ideal for researchers and advanced students studying innovation theory, innovation policy and development issues. It encompasses the important advances of innovation research over the last two decades, providing a thorough insight into the evolution of the topic. Policymakers at the national or international level dealing with innovation would also greatly benefit from reading this book.