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Since the early 2010s there has been an ambitious shift in research and innovation policy towards more transformational approaches. It is a response to both major societal challenges that need addressing and growing concerns over the uncertain, complex, and potentially disruptive consequences of emerging technological developments. This shift brings with it a broader understanding of the nature of innovation activities, a stronger focus on the directionality of innovation and change, and new forms of governing research, innovation, and transformation in society. The paper revisits the reasons underpinning the emergence of different variants of transformational innovation policies, but it also discusses and assesses the main criticisms that have been raised against them: non-conformity with market-based principles, too wide a range of rationales for policy intervention, risk of government failure, overload of policies with diverse goals, and excessively high coordination costs. It concludes by recognising the validity of some of these criticisms, but also by rejecting others and by pointing to a more differentiated framework for contextualising transformational innovation policies in national, regional, and sectoral governance settings.JEL Codes: B52, D73, D81, D83; L38, L50, L52, O30, O31, O33, O34, O38, Q55, Q58