1. Innovation Policies
Innovation is important for maintaining the competitiveness of an economy. A precondition for innovation is investment in research and development (R&D) activities. There are various types of incentives for R&D activities, which usually consist of some form of tax incentive. Another important element of innovation policies is cluster policies. Clusters can be defined as geographic concentrations of inter-connected firms and related players. The general purpose of cluster policies is to strengthen a particular regional economy.