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This article aims to explain the role of regional innovation policies in regional industrial transformation (RIT) from a coevolutionary perspective. The empirical basis is the case study of Małopolska, a Polish region undergoing an industrial transformation in parallel with the launch and development of its innovation policies after the EU accession in 2004. To accomplish its purpose, our research extends the common coevolutionary theoretical framework with interaction mechanisms (IMs), that is, the outcome-oriented processes underlying policy-industry mutual influences, and thus explaining their coevolution. IMs allow us to better understand the reciprocal roles of policy and industry, and the major paths in industrial development and policy approach. The role of innovation policy in the Małopolska RIT can be described as predominantly accommodating and complementing industrial change with some level of proactive promotion of new industrial opportunities. Moreover, we observe reciprocal relationships with regional industry, rather than the unidirectional influence of this policy. This dynamic interaction enabled the evolution of policy to balance the exploitative and explorative approaches to industrial development. [ABSTRACT FROM AUTHOR]