Countries usually resort to a pool of support programmes that seek to foster innovation in SMEs. In the European Union alone there are around 400 programmes that try to drive innovation especially in manufacturing industries. Innovation fostering support programmes on the one side seek to address the gap in the innovation eco-system by creating the often missing linkages between academic, industry and the government but also aim at the establishment of a range of innovation capacity of SMEs. However, In India innovation promotion measures often focus only on technology upgradation and transfer and fail to contribute to the establishment of an innovation eco-system, whereas cooperation and networking between different actors lead to innovation. Innovation Vouchers (IV) aim to encourage entrepreneurs to come forward with their own ideas-where they want to innovate and with whom they want to succeed. Innovation vouchers, widely used in different economies such as Australia, UK, Ireland, Austria, Germany, are a government support that are usually issued in the name of the company to access facilities, services, advice or expertise. Main objective of the voucher system is to create relationships between SMEs and academia (public and private research) in order to motivate knowledge transfer and/or tackle an issue that the business is facing (OECD, 2010). Projects that are typically being supported include