Innovation

Innovation Full Paper Session (3)

Fostering Innovation in Micro and Small Enterprises: A Study in the Brazilian Context

Keilla Silva-Oliveira Federal University of Mato Grosso do Sul

Aline Avelar CUNEF University

JF

João Cesar Ferreira Universidade Federal dos Vales do Jequitinhonha e Mucuri

Abstract

Innovation is essential for economic growth and competitiveness, especially for micro and small enterprises (MSEs) in emerging economies, where resource limitations and systemic barriers restrict innovation capacity. Innovation agencies, such as SEBRAE’s Local Innovation Agents (LIA) programme in Brazil, address these challenges through tailored, non-financial support to enhance absorptive capacity and dynamic capabilities. This study evaluates the impact of the LIA programme on the innovation performance of Brazilian MSEs through a quasi-experimental research design. Data from 503 firms across various sectors were collected before and after programme participation, encompassing key business dimensions including digital transformation, sustainable practices, marketing, innovation practices, operations management, and managerial controls. Paired statistical tests and principal component analysis demonstrate significant improvements across all dimensions, notably in innovation and marketing practices. These findings underscore the effectiveness of innovation agencies in capability development and overcoming systemic barriers, offering valuable insights for innovation policy and practice in emerging economies.

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Full Paper

Primary Track

Innovation

Published in BAM2026 Conference

Publisher X-CD Journal

Date of Conference September 7–11, 2026