It identifies strengths and weaknesses of the innovation system and key tasks of innovation policy, and develops specific policy recommendations for improving framework conditions for innovation, strengthening the intellectual property system, intensifying diversification, fostering business innovation, strengthening the role of the Internet and ICTs, strengthening human resources, fostering critical mass and excellence in public research, increasing and diversifying the sources of knowledge for enterprises, and improving the governance of innovation and the knowledge base in support of policy. Following the recession at the turn of the millennium, the country’s economy expanded between 2003 and 2011 at rates that were, with a brief interruption in 2008-09, much higher than those of the previous two decades. Per capita income also rose much faster.