This paper focuses on innovation in small food‐ and drink‐manufacturing enterprises in two Belgian regions. The aim of the research was to identify patterns of innovative activities. Based on both literature and empirical analyses, a framework was developed to help in understanding some aspects of the determinants of innovation in small food firms. Two conclusions can be drawn from the research. On the one hand, it is clear that innovation was regarded as essential by most small food firms. Such firms tended to continuously introduce new products, develop new processes, make changes in the organisational structure and explore new markets. On the other hand, the research demonstrated that some aspects of innovation depend on the age of the company, company size and regional economic performance.

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This paper explores the role of regional networks in processes of innovation within an international business context. It is hypothesized that firms participating in regional networks demonstrate a stronger innovation competence. Data are drawn from a survey among food firms in the region of Meetjesland, Belgium, and reflect the relation between the firm and a number of regional characteristics. After restructuring the data through factor analysis and cluster analysis, the important role of regional networking is revealed using discriminant analysis. The analysis marks out two factors having the strongest power to discriminate between the clusters: firms are classified as having a stronger innovation competence when networking within the region, and when orienting towards the international market. Results demonstrate that internationally operating firms benefit from regional networking. Further, it is argued that regional networking is not contradictory to an international market orientation, and that firms gain innovation competence by searching for external knowledge on differrent geographical scales. As these networks have the potential to enhance the innovation competence of firms, support to regional networking is promoted as a policy tool

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