This is the first issue of a new occasional series, the CASE Knowledge Insights. The series aims to provide a brief discussion of the rationale for and aims of CASE intervention in important thematic areas, consistent with our mission “to provide objective economic analysis and to foster the quality of policy-making to improve the lives of Europeans and their neighbours.” We have chosen “Innovation and Creativity” as an area recognized as critical for the future of Europe, and where CASE has been able to provide substantive contribution, which will hopefully have an impact on the way policy choices are made and resources allocated. We thank Itzhak Goldberg and Iraj Hashi, two among the several CASE Fellows and associates who have an interest in this area, for their contribution.