A new type of strategic (challenge-driven) PPPs should be established based on new models of governance and operation. This includes embedding them into innovation ecosystems, improving access to business services that facilitate the development of management skills necessary for the internationalisation of SMEs and better integrating them into global value chains (GVCs). All three elements need to be combined to make both new and existing industries more dynamic. Finally, efforts should be geared towards providing better growth opportunities for firms through value creation networks and internationalisation.