This book provides a comprehensive assessment of the innovation system of the Netherlands, focusing on the role of government and including concrete recommendations on how to improve policies that affect innovation and R&D performance.The Netherlands has one of the most advanced economies in the world. But it is also facing some challenges. It is still overcoming a protracted recession. Ongoing demographic change requires that economic growth increasingly depends on productivity gains. Dutch exporters have benefited less than some other EU countries from the expansion into emerging markets. Innovation is a key to future growth and competitiveness, and is also needed to address societal and environmental challenges, including energy supply and climate change.