The key strategic task ahead for the Norwegian government is to maintain high, sustainable growth even after the depletion of oil and gas reserves. Any foreseeable restructuring of the Norwegian economy compatible with this goal will entail a shift towards knowledge-based activities for which innovation is the key determinant of competitiveness. This report assesses the current status of Norway’s innovation system and policies, and identifies where and how the government should focus its efforts to improve the country's innovation capabilities.