AbstractThis paper analyses the Eureka initiative both in general terms and in relation to the Italian participation in the programme. The historical background of Eureka is presented and the formal aspects of the programme are discussed. The Eureka projects are described taking into account their technological diversification. The Italian participation in Eureka is analysed and some empirical evidence is presented which was provided by a survey carried out over 25 research institutes and enterprises which are involved in the pan-European co-operation programme. Finally, the role of government is discussed and a tentative ex ante evaluation of Eureka is suggested.