The role of institutions in the context of innovation in international entrepreneurship: transforming uncertainty from being a threat to becoming an asset

A strong Small and Medium-sized Enterprise (SME) sector yields innovation, economic growth, and improves social mobility. Many SMEs need to be internationally involved to achieve innovations bringing competitive advantages also in their home market. But, innovation and internationalisation are often characterised by high levels of uncertainty, making it problematic for institutions to assess risk and related growth potentials. Thus, SMEs face substantial difficulties in obtaining supports from public and private institutions, which are crucial for their success given the limited resources at their disposal. Therefore, new specific instruments are needed to help institutions evaluate projects that are embedded in truly uncertain environments. We propose a way forward that will systematically address current deficiencies in both policy knowledge and scientific understanding on how to increase the rate of successful SME innovative projects supported by public entities that will enable the same SMEs to achieve prominent roles beyond the national borders.