The country has made progress in learning how to elaborate pluri-annual plans and monitor the implementation of innovation policy. Nevertheless, major challenges remain: especially in guaranteeing pluri-annual budgeting for innovation, in improving the co-ordination of the promotion of science, technology and innovation with the national development strategy, and in scaling up initiatives in key priority areas. This chapter focuses on: i) the institutional setting and governance for innovation policy, ii) the national innovation strategy and policy mix as outlined in Panama's National Strategic Plan for Science, Technology and Innovation (PENCYT) 2010-2014, and iii) the main implementation challenges. The use of such data by the OECD is without prejudice to the status of the Golan Heights, East Jerusalem and Israeli settlements in the West Bank under the terms of international law.