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When large Transnational Corporations (TNCs) enter a host country, consequent development of local Small and Medium Enterprises (SMEs) is expected. The public sector may play an important role by fostering Business Linkages (BL), by which TNCs establish purchasing relationships with local SMEs. This article was motivated by growing attention in literature to the interaction between economic development and the ability of companies to absorb and disseminate competences. Its purpose is to...