According to Assoc. Dr. Tran Ngoc Ca (Academy of Science, Technology and Innovation), innovation policy has an influence on technological change and other aspects of innovation. Policy covers aspects of research and development (R&D), technology policy, infrastructure policy, regional development policy, and education and training policy.

This shows that innovation policy is broader than science and technology policy because science and technology policy in general focuses on promoting scientific research to create public goods. An innovation policy is a set of policy actions aimed at increasing the quality and effectiveness of innovation activities, activities related to the creation and adaptation of new products, processes and improved services (European Commission, Enterprise Directorate General, 2000).

Innovation policies aim to promote innovation activities in all industries. Innovation activities can be generated in enterprises, universities or research institutes, which may or may not be R&D-based. The basic feature of the innovation policy is to promote the cooperation relationship between different subjects.

Innovation policy has long shown the existence of division of labor in the innovation process. Most innovation policies believe that innovation is a process closely associated with the division of labor among participants. For example, universities train and provide necessary human resources for innovation, enterprises use resources to implement innovation, the government develops regulations and policies to support innovation. These subjects are all linked together through the innovation system, in which the components interact with each other in creating innovation.

In general, innovation policies are government actions affecting innovation processes, such as the development and dissemination of innovation product and process. The goals of innovation policies often have economic meanings, such as growth, productivity improvement, employment growth and competitiveness. However, it can also have cultural, social, environmental or security goals.