Since the late 1980s, economic power has become progressively concentrated within a number of industries at an international level, with mergers and acquisitions undertaken by large multinational firms establishing even larger conglomerates. Where, then, does this trend leave the small and medium-sized firms (SMEs)?

This volume examines the changing role of SMEs in this globalising world economy. This role is most often explained by a model of local growth which emphasizes learning, networking and "embeddedness". "Illustrated by a wide range of case studies from the developed world, the international and interdisciplinary team of contributors elaborate, extend and critique this key theoretical perspective."

They address significant issues including: the impact of regulation; power relationships and supply chain management; competitive advantage; technological change and obsolescence; "learning", knowledge transfers and resource bases; and managerial issues. In doing so, the volume provides a more balanced and comprehensive understanding of how best SMEs might be developed.

Contents: Small firms, networked firms and innovation systems: an introduction, Eirik Vatne and Michael Taylor. Small Firms Versus Large Firms: Efficiency, Flexibility and Industrial Policy: Small and medium enterprises in space: the plural economy, Sergio Conti; Industrial network formation and regulation: the case of Japan's SME policy, Yuko Aoyama. The Role of Smaller Firms in Complex Production Systems: Challenges and pathways for small firm sub-contractors in an era of global supply chain restructuring, Poul Rind Christensen; Industrial change and local competitive advantage: industrial production systems in Turin, Paolo Giaccaria; Sub-contractors, supplier parks and supply chain management: the case of Volvo's arendal supplier park, Claus G. Alvstam and Anders Larsson; The unresolved question of new versus old: technological change and organizational response in the German chemical industry, Harald Bathelt. Localized Resources and Localized Learning: A Competitive Advantage?: Localized knowledge, interactive learning and innovation: between regional networks and global corporations, Bjorn T. Asheim and Arne Isaksen; Enterprise, power and embeddedness: an empirical exploration, Michael Taylor; Explaining the internationalization of SMEs: the importance of internal and local resources, Heikki Eskelinen and Eirik Vatne; Decline and renewal in industrial districts: the exit strategies of SMEs in consumer goods industrial districts of Germany, Eike W. Schamp; Modernizing the industrial district: rejuvenation or managerial colonization?, Bengt Johanisson; Notes; References; Index.

Edited by Eirik Vatne, Norwegian School of Economics and Business, Norway, and Michael Taylor, University of Portsmouth, UK