Innovation is crucial for competitive advantage and long-term success. Based on both theory and practice, this book develops a code of practice that enables companies to understand their innovation system and encourage creativity at a strategic level. The process of innovation strategy formulation presented by Sauber and Tschirky is a major step toward turning an often chaotic innovation system into an innovation machine where creativity, efficiency and effectiveness are not contradictory requirements. For the first time, companies are offered concrete, structured and practitioner-orientated methods for formulating an innovation strategy.