Innovation is a key factor in industrial competitiveness and has a central role to play in the Department of Trade and Industries’ Improved Oil Recovery strategy. Innovation can be achieved through an incremental improvement or a new approach to a known process or product. The main strategy of the DTI’s IOR programme is to promote and stimulate innovation and to encourage the spread of best practice for such techniques. The dissemination and transfer of knowledge for science, engineering and technology in IOR is paramount. Encouraging E&P companies to sponsor club funded applied research will add value to UKCS reservoirs. Building on the UK research expertise and minimising duplication of effort can only add to the UKCS competitiveness. To improve communications, a tripartite partnership between Government, industry and the research community has been proposed in the recent Science and Technology White Paper. Reducing time scales has large economic importance, particularly when using discounted cash flow analysis. Flexibility is required to ensure rapid sharing of ideas within the IOR business area. Knowledge and technology take-up, and an ability to understand recent achievements of the research community and industry have a large role to play in the DTI’s IOR strategy.