Abstract Vinnova has funded a pilot project for SP Technical Research Institute of Sweden (SP), internally called “Vinnova-piloten”. The aim of the project is to enable SP to try new and develop existing methods by complementing technological development with a number of organizational tools for strengthening the innovative capacity and competitiveness of SME:s. The purpose of this sub-study of the project is to analyze and evaluate how SP has strengthened the innovative capacity and competitiveness of firms taking part in the project “Vinnova-piloten”. Based on a literature review an analytical framework has been developed for analyzing how SME:s’ different needs and abilities limit their growth, and the value SP has delivered to the companies in relation to their needs and abilities. The study illustrates that SP is well positioned for developing services that to a higher degree strengthens SME:s’ innovative capacity and competitiveness. Further efforts designed to strengthen SME:s should focus on strengthening the firms’ management skills, absorptive capacity and network capacity instead of “merely” solving individual problems for the companies. SP as an institute would benefit from explicitly and intentionally linking “ordinary” technology development projects with business and organizational development when attempts are made to strengthen the innovative capacity of SME:s. In the report, it is highlighted that it could be useful if SP as an institute could get involved earlier in the SME:s’ technology development and play a more explicit role as knowledge brokers between universities/colleges and the firms. SP could thereby build capacities and open up the innovation process for companies that are not used to working with universities and government funding. SP as an institute could also take a more active role in supporting SME:s’ export activities; together with universities and public authorities they could also analyze and assess the legal framework, incentive structures etc. that currently limit the growth of the firms. Key words: institut, SP, SMF, innovation, roller, tillväxt, konkurrenskraft, förmågor.