Regional Development and Innovative SMEs

The article argues that the analysis of the factors and the institutional context is an appropriate field for the contribution of sociology to the study of development. Specifically, it is emphasized that nowadays, three key factors related to their institutional dimensions are identified for development. Firstly, there is the industrial structure and local business and, especially, the changing relationship between local SME and large international companies. Secondly, the creation, distribution and application of knowledge, with priority attention to the development and application of technological knowledge in business and production, within the innovation systems approach at both national and sub national (regional and local). Thirdly, the role of public institutions in creating conditions for public goods for the competitiveness. The arguments are illustrated with examples of competitive local public goods in three Spanish industrial regions where there is a strong presence of SME.