The Lisbon Agenda of increasing competitiveness of European countries by the «knowledge» has focussed attention on RTD and education policies.The evaluation of such policies is in the state of the art very difficult;if there exist quantifications of RTD increase on economic performance at a firm or sectoral level,the assessment of such performance on a whole community or a group of countries is less frequent;the link between RTD and economic performance has,during the last decades,changed a lot,rising a doubt on the former estimations:for instance the knowledge spillovers between countries linked to RTD has increased,the services activities linked to RTD as increased also much and then the measurement of RTD did change in significance.The importance of other forms of intangible capital (Human, ICT,Organisational capital…) has modified the link between RTD and innovation.The overall objective of this proposition is to build a system of tools based on applied modelling that can be used for the ex ante evaluation of research and innovation policies at sectoral and European level.The method of the project will be a wide scope one. It will be based on micro,meso and macro economics,in order to give deep insight on the RTD incentives and the RTD performance;it will be grounded on Scientific and Technique and Innovation (STI) indicators and new databases that take into account all the activities related to RTD (and not only RTD expenses),the knowledge spillovers between activities and countries and also other forms of intangible capital.These insights will be used to modify the production block and demand of the two large scale detailed economic coverage models that have a good track record:the econometric model NEMESIS and the general equilibrium one GEM-E3 that will produce macro and detailed indicators in order to assess RTD and innovation policies in terms of STI indicators,competitiveness,growth,employment,budget deficits,welfare,environment, sustainable development