The innovation climates in emerging and developing countries are shadowed by their low levels of educational attainment, the poor business environment and the fragmented information infrastructure. In fact, these weaknesses also explain why the overall development in emerging and developing countries is fettered. The problematic innovation climate consequently leads to poorly structured innovation systems. First, the private sector in emerging and developing countries is weak, where numerous micro-enterprises operate in an informal economy and foreign-based firms tend to be disconnected from the rest of the economy. Second, on the knowledge side, research communities often operate in an ivory tower, cutting off from practical purposes. Third, government agencies’ supports are enormous, covering enterprise development, R&D, manufacture, export, and foreign investment. Given this over crowded support system, it becomes difficult to establish a coordinated and efficient organization for innovation.