Abstract
This chapter provides an overview of the main characteristics of micro, small and medium firms in the Brazilian national system of innovation as a basis to examine the Brazilian experience in the formulation and implementation of policies for these enterprises. Family businesses comprise a substantial part of Brazilian companies and have a significant role to play in the strength and dynamism of the economy. During the 20th century, industrialisation was strongly based on state support for the development of the productive structure of large firms, both national and foreign. The Local Productive Systems approach is particularly useful for understanding local processes of learning and capability accumulation. One of the most promising tendencies of new policies for Small and Medium Enterprises in Brazil from 2000 onwards is the collective treatment of small and medium firms in Local Productive Systems.
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