Governments of developed nations use a variety of policy instruments to enhance university research and knowledge transfer capabilities. These include advocacy, persuasion and information; consultation and committees of enquiry; creation of major research centres and commercialisation agencies, and investment in research infrastructure; grants, subsidies and other financial incentives; and legislation and regulation. Comparatively little is known, however, about which instruments work best and in what situations, and why some instruments are chosen over others. Little also is known about who the main beneficiaries are of different programs and to what extent program proliferation, often with numerous different agencies involved, leads to duplication and inefficiencies, and works against national R&D priority-setting efforts.