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Technological innovation and productivity are important for a number of reasons and especially for their influence on inflation and on the competitiveness of a nation's goods in world markets. Technological innovation is a complex process dependent on a large number of essential elements. Public policies aimed at improving technological innovation and productivity should include consideration of these elements individually and in combinations. The elements of technological innovation are developed; and a process for developing public policies to improve technological innovation and productivity is described as well as its implementation and the results.