As innovation and investment mostly take place within the private sector, most interesting from a policy perspective are incentives – namely, the role that government can play in encouraging these other factors. Take investment as an example.
Outlook for economic activity  With regard to the outlook for economic activity, as domestic demand is likely to maintain firmness, exports are expected to head for a moderate increase, and a virtuous cycle from income to spending is likely to be maintained in both the household and corporate sectors. I will elaborate on the background to this outlook.