Stimulating innovation is key for achieving sustainable economic growth. Recently, however, prevailing practices and institutions of innovation governance have come under pressure. This publication examines the sources of these pressures, and provides lessons on how governments can adapt their governance practices to achieve better coherence and co-ordination of policies to promote innovation. The changes under way point to the emergence of a "third generation" of innovation policy: a broadly based, strategic policy area, crossing traditional ministerial boundaries.