After reviewing the main theories on the importance of innovation for development( Neoclassical Economics and the problem of innovation, The Austrian School and the Schumpeterian Dynamic Equilibrium, A step forward: the evolutionist school and The latest developments and the Triple Helix Paradigm) the books looks at the implementation of Theory (The Lisbon Strategy and the problem of innovation at the European level). Managing Innovation is then analysed, from the firms' side, the Governments' side and the Research Institutes. Then, thanks to three case studies the theory is put into practice and reccomandations are given to policy makers (Cases analysed: The Case of the Free State of Thuringen, the Case of VBN Via Baltica Nordica and the Case of Shannon Development, Ireland).