On January 17-18, 2014, the Growth Dialogue co-sponsored (along with the World Bank and Khazanah) a High-Level Policy Seminar on Innovation and Inclusive Growth in Kuala Lumpur, Malaysia. Participants discussed the importance of services in global value chains; of service/manufacturing clusters; and of the role of SMEs as the new creative growth drivers in service and manufacturing. Participants also considered policy and technical innovations from the private sector, successful adaptation for needs of lower income consumers, and how the efforts of the private sector can be better harnessed to support inclusive growth.