Innovation is the key to survival in a dynamic environment. The concept of innovation finds application at all levels, micro – firm level, macro – national level and regional level. Efforts towards promoting innovation at national and regional level will impact directly on the other lower levels. This theoretical paper attempts to indicate the role of innovation hubs, place of small enterprises and the policy agenda that development planners need to focus on. It is argued that while a lot of empirical work has been carried out on innovation hubs and small enterprises, the literature is based on the western context which does not reflect the realities of the African business systems.
Key words: innovation, innovation hubs, small enterprises, African business systems, sme policy.