SMEs and start-ups engaged in international activities tend to perform their domestic-only counterparts in terms of productivity, growth, job creation and innovation. Access to foreign markets fuels this growth, but integration into Global Value Chains (GVCs) and networks of multinational enterprises (MNEs), are also important determinants, , leading to knowledge and innovation spillovers. Furthermore, internationalisation can act as a source of resilience. Despite their vulnerability to recent global trade disruptions, SMEs in GVCs have shown a faster recovery.
SME trade, GVCs and competition
Access to global markets is an important driver of growth and productivity for SMEs and their integration into global value chains a significant source of innovation and knowledge. Well-functioning global markets and a global level playing field are key to SME participation. Policies can help SMEs develop capacity to tap into international markets and supply chains, and strengthen linkages with international business and knowledge networks.
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