1. Introduction The objective of an economic policy is to ensure development that is generally expressed in a higher living standard of the population. Throughout history, the development of the sectors of economy that have higher value added has contributed to a higher living standard. Until now, industrial sectors have been such sectors of the economy, because it is namely industry where almost monopolistic competitive advantages can be achieved and thus remarkable profits earned. (1) Furthermore, it is a historical fact that a technological development in industry will bring about higher wages, while a development in the service sector and agriculture will occasion a decline in market prices. That phenomenon can essentially be explained by the circumstance that a technological development constitutes an input in the service sector and agriculture (in the form of new instruments), which provides a competitive edge for a certain period only, as the same input is freely available to the competitors in the market as well. Then again, in industry the very same new technological solution can be protected in various ways. For example, patents constitute a typical protection mechanism. Therefore, severe price competition is inherent in the service and agricultural sectors, which, in turn, occasions remarkable aids to the agriculture in developed countries. Contrarily, in industry the competition is more dynamic and competitive advantages are essentially much deeper, because industry usually requires intensive development activities, an extensive educational base, close relations with sub-contractors, etc. Hence, an improvement in the living standard stems from technologies (i.e. skills) that, while spreading from one economic sector to another in the form of innovations, also enable other sectors to increase the added value created by them. (2) However, it is important that such development activities and innovations occur in the private sector to a great extent, because competition in the open market prevents monopolistic markets from rising to the fore, thus enabling consumers to keep down expenses. On the other hand, it is the market competition that leads to the increasing spread of technologies and innovations (because the competitors seek to achieve the same competitive edge), which in turn causes a decrease of value added and hence the need to look for new technological solutions to achieve a greater value added (that is why the pharmaceutical industry is now investing in biotechnology, and the IT industry is investing in material technologies). Hence, entrepreneurs are those who search and find new technological and innovative solutions, thus creating greater value added (Schumpeter 2002). Historically, the role of public policy has been to encourage entrepreneurs (through tax incentives, investments in education and infrastructure, creation of a safe legal environment and many other means) to move into sectors with higher value added. As was mentioned, the public sector is interested in that process mainly because the sectors characterised by higher value added and intensive application of technologies also enable employees to earn notably higher wages--while technological development is contingent upon people and their skills, companies are motivated to pay higher wages to employees as revenues grow. In turn, the government is thus able to increase state revenues both through direct and indirect taxes and thereafter place investments in social security spheres, education, infrastructure, etc. (3) Therefore, an innovation policy aims at creating the conditions necessary for ensuring that the private sector's resources are transferred to technology-intensive sectors that are also characterised by high value added. Historical development and geographical conditions inevitably create both different advantages and different needs for each country. Politically speaking, an innovation policy should be targeted at establishing priorities and creating means for implementing these priorities. …