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FP5

Project: Innovation in Small and Very Small Enterprises and Local Development Dynamics, State of Art in Instruments for Local Development, SMEs and VSEs, Public Report D1

Project ID: HPSE-CT-1999-00024
Funded under: FP5-HUMAN POTENTIAL

Abstract

Innovation in small firms and local development, with special attention to peripheral regions, is the topic of the bibliographic review presented in this report.
Theorists of development issues use a few theoretical approaches incorporating a base of spatial socio-economic constraints, from which a set of conditions for local endogenous development could be suggested. This is a recent question in Growth Theory or Industrial Economics that will become progressively more important, as global economies will call for similar social environments. The cohesion policy of European Union has contributed to an expansion of this debate.
Since the 1980�s economists, historians and sociologists are concerned about generating structures able to permanently reproduce conditions for more advanced forms of development. In this review it can be observed that important advances were achieved in the description of processes for regional dynamism. Many of these descriptions refer to small enterprises as determinant actors in such processes, but only when the economic spaces generate an environmental context, inputs from agents have a multiplication effect.
Notwithstanding the theoretical framework created on the bases of these major steps, the E.U. still contains a significant number of peripheral spaces that are not able to sustain growth in economic activity. Generally related to the rural activities and dominated by small production systems, such spaces have not been integrated into wider industrial production systems and have therefore been excluded from social sources of power and domination (SYRETT, 1995).

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Record Number: 8401 / Last updated on: 2007-02-15
Category: ANREP
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