The international community has created processes for monitoring progress at the regional and global levels, and for countries to exchange policy experiences, to learn from each other, and to coordiante their policies where appropriate. The present chapter contributes to this effort by analyzing how the current innovation policies of Kyrgyzstan contribute to the country’s national sustainable development priorities, comparing current policies to international good practice, and recommending policy reforms that could further encourage innovations contributing to sustainable development. The present chapter focuses on the other two pillars of sustainable development, i.e. environmental sustainability and social inclusiveness. However, it should be noted that failures to address unsustainable practices has a very real economic cost. While no estimates of this cost are available for Kyrgyzstan at present, the World Bank has for instance estimated that for neighboring Tajikistan the direct and indirect economic damage caused by environmental degradation may be as high as 8 percent of GDP.90 Thus the key to sustainable development is to achieve all three dimensions together, rather than achieving one at the expense of the others.