section a outlines the prerequisites fa effective innovation systems in terms of capabilities connections and the enabling environment and addresses key policy issues in the areas of innovation financing and intellectual property protection sectbn b places sti policy in the wider context of overall development strategies highlighting the importance of policy coherence and coordination and section c discusses the reorientation of sti towards the goals of sustainable and inclusive development in the context of the agenda the latter is now the main theoretical foundation of innovation policies in developed and developing countries alike such systems develop over time coevolving with their economic political social and environmental contexts they are less developed and more prone to systemic failures and structural deficiencies in developing than in developed countries chaminade and padilla perez