The OSTP Strategy for Innovation is one approach: grand plans; deadlines; quotas; let no trough go unfilled; government micromanagement.
In a fascinating article in City Journal, George Gilder describes a different route: how Israel's tech industry was in a decade transformed from a stagnant socialist backwater into a leader in invention:
How? Read the article, or the longer version in Gilder's new book The Israel Test. Government policies were important, but not in the sense that the transition was micromanaged. It could occur only because policies that were blocking the creative genius of the society were reversed, largely through the efforts of Netanyahu abetted by U.S. Treasury Secretary John Snow.
It is a great story, and it has profound political implications. Who knew that:
The article concludes: