Faced with the challenges faced by small and medium-sized enterprises nationwide, the state needs to be clear about the mechanisms through which it can foster them. In this context, this paper discusses the relevance of public policies for small and medium-sized enterprises (SMEs). It presents the main initiatives of this nature carried out since the 1960s, when it was possible to observe important changes in the scope of this policy in Brazil. With this in mind, the aim was to assess, in general terms, the extent to which public investments related to SMEs have advanced or are still incipient. In addition, the thesis is that these investments are essential for local and regional development. They are capable of boosting innovative capacity and allowing firms' competitive differentials to be fostered.