This chapter describes recent developments and the outlook for science, technology and innovation (STI) and STI policies. As economic growth gains momentum, STI activities should increase. However, the recovery remains uneven. The crisis caused lasting damage to public finances, creating a new deal for STI policies, which must consider the risks and opportunities raised by the continuing globalisation of STI activities: global value chains and the international circulation of people and knowledge. Innovation should help address global, environmental and societal challenges and raise new policy challenges.This chapter is based on OECD work in science, technology, industry, education, innovation, migration, trade, environment, finance, tax systems, public governance and statistics. It draws on country responses to the OECD STI Outlook questionnaire 2014, a unique source of country-specific information on national innovation policies. While high-quality macroeconomic, competition, regulation, tax and labour market framework conditions matter for innovation, this chapter focuses on STI and entrepreneurship policies.