AbstractThe research and development policies of six countries are briefly reviewed. Japan has an overall policy regarding reindustrialization, whereas some other countries provide economic incentives but allow industry to decide how to develop technologically.Britian has lagged behind other industrialized countries, having tended to support the ailing finns and industries.Innovation policy should ensure that basic research is adapted to the needs of industry .. that industry is more adaptable to technological innovations; and that the size and nature of demand is considered.It should be coherent, consistent, flexible, complementary and realistic.