This book increases our knowledge of innovation policy by combining quantitative and qualitative assessments of innovation systems, and by adopting a progressive outlook on the conditions for an innovative Europe of tomorrow. Based on the latest developments in innovation research, the authors aim to draw practical and workable conclusions for policymakers. The first part of the book discusses the use of indicators to inform policy- making, progressively shifting emphasis from traditional to less traditional measures and from the national to the regional dimension. The second part investigates the internal dynamics of policy-making and explores the conditions to improve the effectiveness of innovation policies in Europe. New developments and challenges for the future are identified throughout, including the crucial problem of how to align existing institutions with potential challenges. In this way the book clearly demonstrates how the quality of policy governance will become an increasingly important driver for innovation performance of knowledge societies in Europe. The book will have considerable appeal to innovation policymakers, and will also be of interest to academics and researchers working on innovation and knowledge systems.