SMEs account for nearly 99 per cent of all business entities in the EU, generating around 60 per cent of the EU’s GDP. Further, they are a key link in regional development. This chapter is about the importance of SMEs in Poland. It points out that it is becoming more popular for SMEs to participate in clusters of new technologies or consortia whose cooperation is not only confined to similar levels of research or technology, but relies on better recognition of the specific nature of a given local market, including its cultural aspect. In Poland it is the region that increasingly becomes a place of interactions necessary for emergence of modernization processes while the characteristics and specific potential of each region make it easier to reduce the risk inherent in innovation. Furthermore, innovative activities of companies in the twenty-first century will take into account profit maximization and human needs, in which the following technologies will play important roles: green, medical, information, biotech and nanotech. Moreover, the idea of the knowledge triangle of research & technology, education & innovation, and links with business, including SMEs is brought out, plus financial and tax policy issues for SMEs.