Innovating SMEs and Regions: The Need for Policy Intelligence and Interactive Policies

Abstract

Based on the empirical ndings achieved through comparative research involving 40 innovation policy instruments from 11 European regions, this paper proposes a shift in rationale and in the broad orientations of innovation policy to focus on addressing SMEs in their regional context. T he main role for innovation policy, which aims to increase the capacity of a region and the capabilities of its SMEs to innovate, is to foster interactive learning within the rms and within the region. T his calls for an interactive mode of policy intervention. The paper deals also with the question of how to build a coherent portfolio of policy instruments, taking into account both regional situations and speci c SMEs needs in terms of innovation. The key message is that there is no 'one-size-ts-all' policy portfolio. Regional dierences in innovation capabilities call for a tailored mix of policy instruments. One salient element of the conclusion is the need for more 'policy intelligence' in this complex eld.