European institutions are becoming and ever more important actor in research and innovation policy. This study reviews the role of the European Commission as well as other European actors and programmes for stimulating R&D and innovation activities with a special focus on Germany. The review includes both an appraisal of qualitative impacts and an examination of the quantitative significance of European policies. In particular, the study analysis the role of the EU Framework Programme (FP), Eureka, the European Investment Bank, the Competitiveness and Innovation Programme (CIP) and other European initiatives (e.g. CERN, ESA, European Science Foundation). The role of the Structural Funds of the European Commission will be touched only briefly.The study investigates the quantitative significance of FP funding for small and large enterprises in Germany as well as for universities and public research organisations and compares FP funding with R&D budgets of the national government. Thematic priorities of European and national research and innovation policies are evaluated as well. In addition, the quantitative significance of Eureka projects is examined.