Innovation policies for SMEs in Europe: Towards an interactive model?

A typology of policy tools for the promotion of innovation in European small and medium enterprises (SMEs) is proposed. The different categories of schemes reflect the main weaknesses of SMEs in the fields of finance, information, advice and human resources. Most policy tools can be labelled as 'relatively conventional', i.e. they do not take into account the existence of interactive mechanisms that can foster learning processes, additionality and networking. While the literature emphasizes the necessity to strengthen external economies to foster innovation and competitiveness, through the construction of a local and regional system of innovation, it seems that relatively few regional policy makers have taken on board these theoretical reflections. The article argues for a systemic approach to introduce strategic innovation planning at the local level.