Globalisation increasingly affects how companies in OECD countries operate, compete and innovate, both at home and abroad. Global competition drastically shortens product life cycles, while the growing integration of different technologies makes innovation riskier and more costly. Companies more and more internationalise knowledge-intensive corporate functions, including R&D, and simultaneously open up their innovation process to collaborate with external partners (suppliers, customers, universities, etc.). This clearly has important implications for policy making, given the contribution of (business) innovation to economic growth.