In areas such as basic science, private investment may be limited or absent because of the time before results are obtained or because of the lack of direct applicability for products and services. This chapter examines various dimensions of investment in innovation: public research, investment in knowledge infrastructure and general purpose technologies, knowledge networks and markets, and the role of the public sector in fostering innovation. These institutions include world-class research universities, small regional universities, colleges of technology, public hospitals and clinics, government research laboratories and government establishments engaged in activities such as administration, health, defence and cultural services as well as technology centres and science parks.