Besides these national digital economy strategies, many countries have also developed national science, technology and iiviovation strategies in which digital innovation is highlighted as a key pillar. For example the Swedish Innovation Strategy complements Sweden’s national digital strategy and the National Strategy for Regional Growth and Attractiveness. Given the emergence of a new' digital divide caused by a possible breakdown of the “diffusion machine”, and given the strong interest of governments in furthering ICT adoption and use in particular by SMEs and disfavoured social groups, emphasis is put on policies stimulating ICT diffusion across society, i.e. ICT demand side policies. However, it is acknowledged that ICT demand side policies need to be complementary to (existing) ICT supply side policies such as ICT-related R&D programmes and national broadband strategies, which are not discussed in the report. There is no widely agreed definition of digital innovation however. For Henfndsson et al. (