It addresses issues such as the decline in corporate profits and corporate investment, the impact of high unemployment on the skills market and on households’ demand for technology and innovation, and the loss of firms’ productivity. It also addresses issues such as fiscal consolidation and its impact on public R&D budgets and public support for innovation. It sketches a “new deal" for STI policy makers that calls for new partnerships, a more strategic use 0/ public procurement, strengthened policy evaluation and a streamlining 0/STI policy action.