In this study is analysed how the ERDF (European Regional Development Funding) in East-Netherlands approaches innovation and how this approach is shaped and complemented byEuropean, national and regional policy. This is done by analysing how the targeted interventionapproach and the institutional approach are used in the ERDF and adjacent policies. The twoapproaches are both based on a different argument on how innovation policy makes an impact.By doing this the study contributes to the analysis of European policy and it empirically appliesconcepts used in theory on innovation and regional economic development. This gives policy makersinput for the development of innovation policy and especially for the development of Europeanpolicy post 2020. For academia this study shows theoretical gaps in the concepts applied andprovides suggestions for further research on these concepts. The study concludes that ERDF fundingin East-Netherlands is strongly based on the targeted intervention approach. The use of thisapproach results from the governance structure under which ERDF is implemented. The EU 2020strategy has been influential in the final shape of the policy, while the national level has a lessimportant role. Innovation policy at the regional level complements the ERDF policy because it is alsobased on concepts from the targeted intervention approach. The institutional policy implemented atthe European and national level has weaker links with the ERDF programme.