"In recent years, much attention has been devoted to the link between open innovation and globalization. As firms are driven to change due to intensifying innovation-based competition and increasing complexity of knowledge and products, innovation policy needs to evolve in order to reflect the new industrial landscape. The aim of this paper is to suggest a framework for examining the way national policy mixes are responding to the challenges and opportunities of globally distributed knowledge networks, cross-sectoral technology flows and consequently open innovation processes occurring on an international scale. We argue that the purpose of public research and innovation policy remains one of developing and sustaining territorial knowledge bases capable of growing and supporting internationally competitive industries. But the rules of the game have changed. Public policy now needs to carefully balance between a) promoting the formation of international linkages for knowledge sourcing and information exposure; b) providing incentives for domestic industry intramural R&D for the purpose of building absorptive capacity and knowledge accumulation; c) sustaining domestic networking to allow accumulated knowledge to diffuse and recombine..."