A little cheeky but here is a link to a blog on the New Scientist highlighting a new report (and associated papers) about ideas on successful innovation and how to support it. Thought provoking stuff. Suggests growth through R+D contracts among other things.
http://www.newscientist.com/blogs/thesword/2010/03/politicians-have...
http://www.ukirc.ac.uk/newsandevents/news/article/?objid=3340
http://www.ukirc.ac.uk/object/report/3341/doc/full_report.pdf
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