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The interest for collaboration among small and mediumsized enterprises and innovation has been highlighted, in recent times, due to the acceleration of technological changes and to increasing international competitiveness. Many small firms, with rigid structures and weak entrepreneurial dynamics, experienced difficulties in becoming innovators. Some of these firms can adopt collaborative agreements because these relationships enable them to get the necessary innovative activities, know-how, and exploit opportunities, which they cannot achieve alone. This study examines the motives for the formation of collaborative agreements in industrial Portuguese SMEs and presents some empirical evidence concerning collaboration as an important vehicle for the innovativeness of these small firms. The findings were based on a sample of 92 firms/collaborative agreements.