ABSTRACT

Innovation is increasingly supported by public authority action focused on regions and small and medium enterprises (SMEs). In this line, the region of Madrid launched a programme to create Technology Diffusion Centres (TDCs) in order to promote innovation culture among the SMEs of the region. This article analyses the nature of innovation activities in these firms, and the achievements of the TDCs through their work with them. Different types of TDCs are compared according to the approach they applied and the agent to which they were linked. Ten indicators were used to examine the degree of embeddedness and performance of the different TDCs among the SMEs. Results show that a sectoral approach in conjunction with links to business association is the best option for the TDCs in urban and industrial areas. However, in the peripheral or less favourable areas, such as rural ones, a territorial approach in conjunction with links to local entities is the most effective alternative.