Innovation policy is aimed at promoting innovations through numerous instruments such as funding programs, transfer, or basic research. In innovation policy, both as an independent policy field and as a cross-cutting issue, several policy levels are intertwined. This, and the involvement of various actors, such as scientific organizations, universities, transfer offices, companies, and project sponsors, result in a high need for a coordinated innovation policy. Recently, two factors in particular have been shaping innovation: digitalization and the founding of startups. German innovation policy is essentially based on various research funding institutions, each of which supports different areas: The German Research Foundation, the Helmholtz Association of German Research Centers, the Max Planck Society, the Fraunhofer Society (FhG), and the Leibniz Association. All these institutions operate several research centers, some of which are highly specialized, and large-scale research facilities in almost all areas of science. They are all networked with universities and research institutions all over the world. The FhG in particular is also increasingly working with industrial partners. Criticism of German innovation policy focuses on the lack of funding from private venture capital and the selection of areas of innovation.