After considering the various dimensions of innovation policy, this paper reviews the experiences of the Czech Republic (CR) in implementing such policies in the post‐1990 transition period. Particular attention is paid to the contribution of small and medium‐sized enterprises (SMEs) in innovation activities and to the various direct and indirect measures used by the CR in their support. The paper also focuses on the education and training issues and policy prescriptions deemed most appropriate to medium‐term goal setting in the CR. It is noted that in order for such education and training policies to be effective, they must be informed by a number of well‐established patterns and trends within globalised, knowledge‐based economies as well as by the particular circumstances faced by the CR or other transition economies.

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