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This paper seeks to provide a link between the role of SMEs on the one hand and economic performance, in terms of innovation and growth, on the other hand. It illuminates in which ways the view of the dynamic contributions of SMEs have changed since Schumpeter formulated his entrepreneurship-driven framework. In doing so, the paper proposes a theoretical framework for linking SMEs to innovation and growth. Implications for public policy are outlined.
David B. Audretsch (Wed,) studied this question.
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