The framework used to assess the level of development of policies to harness SMEs as agents of productive transformation in the LA7 region covers the strategic level, examining policy frameworks to enhance productivity and whether these frameworks harness the role of SMEs, as well as the programmatic level, examining specific programmes that encourage SMEs to associate via productive agglomerations, such as clusters, and integrate into regional and global value chains. The LA7 countries as a whole are relatively well advanced in the areas covered by this dimension, with all obtaining results above a level 3. However, the pilot or relatively new nature of many of the current LA7 programmes in this area underscores the importance of M&E systems; while the results demonstrate a solid level of policy implementation, the actual impact of these programmatic efforts remains to be seen. In addition, establishing priority sectors for productive transformation at a strategic level along with corresponding action plans, even while maintaining flexibility for future adjustments, could help policymakers to more clearly separate between general SME development measures relevant for the entire SME population and more specific interventions in priority sectors related to the process of productive transformation.