Role of Small and Medium-Size Enterprises in Regional Economic Development: TheEuropean Experience and U.S. Comparative Analysis

摘要

Small and medium-size enterprises (SMEs) have advantages and disadvantagescompared to large firms. Evidence from Western Europe shows that sustained economic development is more a local or regional than a national phenomenon. It results from settings with information richness, entrepreneurial vitality, a dynamic, innovative SME sector, and the use of flexible production and interfirm networking by SMEs. U.S. case studies show that SMEs play a vital role in successful local and regional development, especially in high-technolgoy manufacturing and producer services. Educational institutions have played a large role in creating and sustaining strong technical cultures. Government policies should not be biased in favor of SMEs, but they should create environments that promote innovation and entrepreneurship.