In my previous work, I have argued that while technology is a key enabler of innovation, it is not the only driver of innovation. Indeed, a technology led approach to innovation in the content stage of the digital media value chain is far from sufficient for success. The core argument of this paper is that policies for the digital content industries must begin to value non-technical forms of innovation and its social context if these sectors are to fully realise their potential in the contemporary knowledge economy. This paper will analyse policies for the digital media industries in Ireland and explore how these policies impact upon one specific sector, the digital games industry. It concludes that current policies for these sectors need to rethink what they define as ‘innovation’ and ‘research and development’ if these sectors are to succeed in the global economy.