In 2011, the Mexico-State Council of Science and Technology in alliance with the Inter-American Development Bank and the National Council of Science and Technology implemented a program to promote collaborative networks among firms for improving competitiveness trough innovations. Target firms belong to priority manufacturing and services sectors This paper deals with the analysis of the program, State of Mexico’s innovation capacities are described, the institutional framework and the main actors are also analyzed. The results show that SMEs had lack of experience in innovation but they increased their investment in innovation projects. Based on that analysis we conclude that success of innovation policies is highly dependent on previous experience and learning abilities of firms. Finally, we draw some recommendations for building capacities at the firm level as well as for strengthening innovation policies aimed at involving and technically upgrading SMEs