Book excerpt: The private sector is playing an increasingly important role in the funding of scientific research. As public sector research declines in the countries of the north and the south, research and development carried out by the private sector becomes more important for innovations that have economic potential. In some cases networks between local firms and multinationals can support learning which leads to economic growth. What are the policies which support such partnerships and what are the institutional arrangements that foster research? Seven case studies from Argentina, China, Costa Rica, El Salvador, Tanzania, Peru, the Philippines and Vietnam examine how policies have been developed and implemented to encourage innovation.