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.




In 2003 Mexico started operating AVANCE, a programme aimed at identifying and exploiting business opportunities based on scientific and/or technological developments. This initiative supports the stages of the innovation process of firms and assists in the commercialisation of innovations, mainly from SMEs. The programme has three main delivery modes: the Nuevos Negocios (previously known as Ultima milla, or Last Mile), which provides resources to support the late stages of the innovation process; the Entrepreneurs Fund, which is managed in conjunction with NAFIN (Mexico’s state development bank), and offers complementary resources in the form of risk capital; and the Guarantee Fund, which endorses firms so they can obtain commercial bank loans.


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