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This work provides an extensive evaluation of the numerous policy instruments used by regional governments in Europe to promote innovation activity in Small and Medium sized Enterprises (SMEs). The instruments are compared and benchmarked in order to identify good practice, in an effort to bridge the gap between the theory of regional innovation and real-world policy implementation. interactive style of policy intervention. Since the majority of SMEs have a limited resource base with regard to innovation, they need external orientation to understand and adapt to their environment. Thus, the...