SMEs, Entrepreneurship and Innovation

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Small firms are playing an ever-increasing role in innovation, driven by changes in technologies and markets. Some spin-offs and high growth firms are having remarkable success. However, the broad bulk of small firms are not capitalising on their advantages. This book explores how government policy can boost innovation by improving the environment for entrepreneurship and small firm development and increasing the innovative capacities of enterprises. Policy findings and recommendations are presented in three key areas: embedding firms in knowledge flows; developing entrepreneurship skills; and social entrepreneurship.  In addition, country notes present statistics and policy data on SMEs, entrepreneurship and innovation for 40 economies, including OECD countries, Brazil, China, Estonia, Indonesia, Israel, the Russian Federation, Slovenia and South Africa.

SMEs, Entrepreneurship and Innovation is part of the OECD Innovation Strategy, a comprehensive policy strategy to harness innovation for stronger and more sustainable growth and development, and to address the key global challenges of the 21st century.




The Icelandic Technological Institute (IceTec), operating under the Ministries of Industry and Commerce, is charged with the role of transferring technologies and expertise to business and industry. IceTec possesses a budget of ISK 242 million (USD 2.6 million), of which the majority comes from the government via institutional and competitive funding channels. IceTec has a role in assisting companies in innovation, productivity and R&D as well as providing information and advice to entrepreneurs and SMEs. IceTec operates a series of business incubators that can house up to nine companies, usually chosen from the biotech sector. Within an incubator, these companies are exposed to innovative business ideas and concepts.


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