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

A typology of policy tools for the promotion of innovation in European smal l and medium enterprises (SMEs) is proposed. The different categories of sc hemes reflect the main weaknesses of SMEs in the fields of finance, informa tion, advice and human resources. Most policy tools can be labelled as 'rel atively conventional', i.e. they do not take into account the existence of interactive mechanisms that can foster learning processes, additionality an d networking. While the literature emphasizes the necessity to strengthen e xternal economies to foster innovation and competitiveness, through the con struction of a local and regional system of innovation, it seems that relat ively few regional policy makers have taken on board these theoretical refl ections. The article argues for a systemic approach to introduce strategic innovation planning at the local level.