The paper summarizes recent developments and implementation of the national science and technology policies. National as well as international environment play an important role, especially regarding threats and opportunities. Small size of the country is advantageous in terms of, for instance, possibility of establishing an uncomplicated research and innovation system, but, on the other side the country's own resources, both financial and human, are far from being sufficient for the creation of knowledge needed for the development of a knowledge-based society. Consequently, strong embedment in international S&T networks as well as an efficient knowledge transfer system is needed.