Several developing countries have formulated and implemented Science, Technology and Innovation (STI) policies. However, little remains known about the Science, Technology and Innovation space and the role STI policiesplay in enhancing innovation activitiesin developing countries. This chapter analyses the Science, Technology and Innovation policy space, and presents anunderstanding of their current status and impactsin Ghana and Tanzania. Based on two waves of survey data collected in 2013 and 2015 on formal firms and informal firms in Ghana and Tanzania, our findings suggest that while firms affirm the importance of STI policies, these policies are often poorly planned and implemented poorly. The existence of market and system failures are also found to constraint interactions and the performance of actors in each country's innovation system. The chapter therefore calls for government intervention to enhance the working of the national innovation systems.