Demand-oriented innovation policies are thus part of an evolution from a linear model of policy, usually focused on R&D, to a more broad-based approach that considers the full innovation cycle.1 The focus on demand-side policies also reflects a generalised perception that traditional supply-side policies - despite many refinements in their design over past decades - have not been sufficient to bring about the desired level of improvements in innovation performance and productivity. With pressing societal needs in such areas as health, security, population ageing and the environment, consideration is being given as to how government spending might foster innovations that could lower the costs of meeting these needs. Japan for instance, has recently re-oriented its innovation strategy towards a series of demand-oriented national goals such as the transition into a low-carbon economy and tackling the challenges of an aging society.