Mirages and miracles of European small and medium enterprise development

A small‐scale industry ‘renaissance’ has characterized recent academic literature on industrialization and development policies. This comes as a reaction to the manifest difficulties facing mass production economies and to the sometimes spectacular performance of small‐ and medium‐sized enterprises (SMEs), particularly in Europe. The causes of the above success, together with the accompanying theorizations — such as the flexible specialization approach — are manifold and contradictory. Furthermore, theories on the present and future of SMEs vary as regards both optimism and policy implications — supra‐national, national or regional. Recent EU policies towards SMEs present an amalgam of instruments which, albeit often economically effective, constitute chiefly a political gesture.