Innovation is often touted as a keycomponent in unleashing private sector growth and thedynamism necessary for solving the Middle East and NorthAfrica (MENA) region's employment challenges. Theregion's innovation strategy identifies the majordevelopment challenges including youth unemployment, lowdiversification of exports, low share of medium and hightech exports, and the need to move from privilege tocompetition. The MENA region does not perform well oninnovation and education indicators, and scores below theworld average on the knowledge index (2011). Innovationpolicies should first focus on improving the businessenvironment, innovation finance, and skills. Whiledeveloping the innovation policy framework, it will beimportant to leverage international linkages and to focus onpromoting inclusive innovation. MENA's innovationpolicy agenda will be country specific and difficult to operationalize.