This short review provides a summary on the current state of innovation and technology policy (ITP) in OECD countries and offers some starting points for integrating ITP instruments into economic policy consulting and private sector development as part of the GTZs technical co-operation (TC) activities.The review starts with an historical sketch of the ITP in order to understand the variety of objectives, strategies and measures to be found today in the ITP of OECD countries. Nine stages of ITP are distinguished, which do not represent a chronological succession but rather a cumulative development: the classical mission-orientation, the promotion of company research, the diffusion-oriented technology policy, interaction approaches, the creation of an innovation-friendly environment, the support of new high-technologies, national innovation system approaches, the new mission-orientation and demand-side technology policy.

The review attempts to present the objectives, strategies and measures of todays ITP in a concise way, focussing on those actions that are most relevant for targeting firms and their innovation activities. Emphasis is laid on measures to support research in enterprises, state-financing of innovation through loan-based instruments and venture capital, tax incentives, consulting and further education measures, the promotion of industry-science links, technical infrastructure supply, cluster approaches and specific incentives for foreign companies.