European Union (EU) is fostering the quintuple helix approach as it recognizes sustainable development and innovation as important development priorities. The quintuple helix represents a new framework which includes new knowledge, more stakeholders with sustainable development at its center. The EU has put in place different policy measures, regulations and funds to support designing and implementation of innovation strategies and sustainable development in all Member States. The objective of this paper is twofold as it includes identifying key features of helix innovation model and its evolution over time, and exploring EU efforts to transform to the quintuple helix system. The purpose of this paper is to explain the new context of development where innovation and sustainability should be considered as key elements. Using the example of the European Union, this paper studies policies and measures that the EU has put in place in order to support innovations as well as inclusive, smart and sustainable development, which are significant parts of the quintuple helix approach.