Home > Daegu Initiative   Innovation and SMEs Innovation is a key driver for economic development. SMEs play a pivotal role in innovation. Innovation is of paramount importance for SMEs to adequately respond to rapidly changing market conditions. Appropriate economic and policy environments should be created to facilitate the innovative activities of SMEs. The Daegu Initiative on SME Innovation Action Plan is an opportunity for each economy to establish appropriate economic and policy environments, so that innovative SMEs can realize their potential, and increase the innovative capacity of the individual and regional economy. Innovation and the role of APEC The APEC plays a crucial role in helping various member economies identify issues to be addressed in SME innovation and explore cooperative solutions and approaches to them.