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This paper examines the university-industry-government relationship as a mechanism for enhancing the efficiency and competitiveness of small and medium-sized enterprises (SMEs). The case of a community enterprise producing dried banana products in the north of Thailand is used to demonstrate the significance of the Triple Helix model for business and technology development in SMEs. Government initiatives designed to promote innovation leading to price and quality competitiveness of the products of SMEs and community enterprises are explored and their effectiveness is discussed. In developing countries, where there are weak links and limited interactions between the institutional sectors of government, academia and industry, intermediaries play a crucial role in building networks to facilitate the transfer and exchange of knowledge. Effective network links would enable SMEs to have access to various sources of financial, knowledge, technology and market support. In Thailand, the Industrial Technology Assistance Programme (ITAP) plays an important intermediary role in identifying the needs of SMEs, accessing relevant knowledge and technology from universities and other sources of knowledge, and matching the demand of SMEs for knowledge/technology with the supply available from universities and research and development laboratories. The experience of the dried banana community enterprise discussed in this paper gives credence to the view that SMEs in developing countries such as Thailand would benefit significantly from technology policy based on the Triple Helix model and the proactive role of intermediary agencies such as ITAP.

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