Entrepreneurship and firm creation have long been recognised as a vital force driving innovation. With globalisation and the shift towards a knowledge-based economy, the link between entrepreneurship policy and innovation has received renewed attention. By underpinning firm creation and firm expansion, entrepreneurship policies strengthen innovation, increasing productivity in the enterprise sector. In return, policies fostering innovation will tend to spur firm creation as the results of R&D are commercialised.

Many countries have taken initiatives since 2000 to test the potential of entrepreneurship and SME policies, articulating these with an innovation-oriented policy approach. This paper consists of a synthesis report based on four country case studies on the role of entrepreneurship policies in supporting innovation in Korea, Mexico, Norway and Turkey. These country case studies are appended to the synthesis report.

The first part of the paper highlights main features of the four countries’ business sector and identifies principal impediments to entrepreneurial activity. The second part presents different policy approaches seeking to stimulate entrepreneurial and innovative activities. The third and final part evaluates entrepreneurship and SME policies in the light of national adjustment requirements and international best-practice experience.