This chapter examines in detail the main factors and policies that influence green innovation. This includes the broader framework for innovation, which was explored in the detail in the OECD Innovation Strategy, as well as factors and policies that can shift the direction of innovation towards greener products, services and processes. Such policies include measures on the supply-side such as investment in research and development, government support for the development and introduction of green technologies, as well as policies to foster information and communications technology, biotechnology and nanotechnology. Demand-side policies, such as policies to diffuse innovations more widely, strengthen the markets for green innovation, e.g. through public procurement, as well as consumer policies are also explored in the chapter. A final section discusses how governments can foster a whole-of-government approach to green innovation.