The ‘Innovation Capacity of SMEs’ is a key topic for Europe’s competitiveness and growth. The contribution of enterprises to innovation is crucial, and a dynamic business sector is a key source and channel of technological and non-technological innovation. Smaller companies frequently exploit technological or commercial opportunities that have been neglected by more established companies and bring them to market, contributing to growth and employment. As such, the Innovation Capacity of SMEs is naturally at the top of European, national and regional innovation policy priorities. It is therefore a natural focus of the INTERREG IVC programme, and is addressed by several of its projects. The present study concludes that INTERREG IVC projects on the Innovation Capacity of SMEs theme directly address the most relevant and pressing issues faced by European SMEs today. In the form of policy options, they contribute to identifying solutions to the barriers faced and, through interregional cooperation between regional actors they contribute, and can contribute further, to improving policy learning and sharing in the theme. The highlights of these conclusions are presented next.