Much has been written about innovative companies and what sets them apart. Less obvious is the role that government can and does play to create the conditions for success. A recent report by BCG, in conjunction with the National Association of Manufacturers, highlights the interdependence of government and business and the mutual need for innovation leadership.

A critical driver of growth, competitiveness, and shareholder value, innovation is cited by senior executives around the world as integral to their company’s success. But innovation benefits countries, too. Those with thriving industries have higher incomes, a better quality of life, and a higher standard of living than their less-robust peers.