It also examines the shifting geography of innovation, the emergence of new global players and the global competition for talent. However, the notion of what innovation involves and what role policies to encourage innovation can play has changed considerably over the past decade. It is increasingly recognised that, in addition to R&D, innovation encompasses a wide range of activities, including organisational change, training, testing, marketing and design (Box 1.2). These activities can strengthen capabilities for developing innovations or the ability to adopt innovations developed by other firms or institutions successfully.