'Innovation Systems' is part of the World Bank Working Paper series. These papers are published to communicate the results of the Bank's ongoing research and to stimulate public discussion.The World Bank has gained significant experience and has an important role to play in supporting innovation systems projects. This paper reviews the innovation systems support projects financed by the Bank during 1990-2003, together with a few successful earlier examples, covering some 51 projects involving over US$4.2 billion in Bank support.The Bank's role typically has been to facilitate and augment reform efforts around the world and to play the role of an honest broker between the productive and S and T sectors, facilitating the reform process by bringing together relevant partners. This enhances the effectiveness of the design and delivery of services and the sustainability of these activities. The Bank's involvement also encourages difficult measures to be taken, including the raising of institutional accountability.Prudent market texts are applied to the various available interventions and fiscal discipline is imposed on institutions that are in the process of restructuring. Drawing on its experience, the Bank can provide the long-term support, advice, and leverage needed during the restructuring phase for institutions that seek to attain greater fiscal independence and to enhance the quality of their services and their contribution to the national economy.
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