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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.
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149. Nicolas, F., Noronha, M. T. (2001) “State of Art: instruments for local development in SMEs and VSEs” - Public Report D1, Contract nº HPSE-CT-1999-00024, European Commission. Bruxelas, Bélgica.