Investigates the learning process in innovation and, in particular, the collective learning which underlines different types of innovation within the context of small‐ to medium‐sized enterprises (SMEs). Argues that innovation is often the result of interaction of various subjects, technologies, people and organisations, and that it is the learning that is derived from such interaction which underpins innovative activity. SMEs are better able to innovate when they are part of clusters because it is through the networking process and the management of externalities (key elements in clustering) that they develop new products, processes and services.
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