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This book focuses on the sources and impacts of research and development (R&D) and innovation in Norway. The Norwegian case is rather special. One the one hand, the level of R&D and innovation is low in Norway compared to other industrialized countries. On the other hand, the Norwegian economy has proven to be very robust when it comes to economic growth. This is combined with an alleged "low tech" industrial structure. The words "puzzle" and "paradox" figures predominantly in the discussions about Norway's innovative and economic performance. It is in this context that this book explores and analyzes the main sources and effects of R&D and innovation. This book is organized in three different parts that examine the sources of innovation and their links to performance at different levels of analysis. In the first part the book explores the existence of sectoral specialization patterns linked to technology and entry & exit dynamics in the Norwegian economy. The second part is devoted to analyzing the main sources of R&D and innovation among firms.In the third part we explore how innovation policies interact with the firm level.