The proposal aims at strengthening research partnerships through staff exchanges and networking activities between 2 European research organisations from Germany and Spain, and 2 research organisations from Argentina and Brazil. The scientific objective is to create a co-evolvement process towards a successful management model for SMEs that combines the European innovation and organizational learning model with Latin American survival strategies in turbulent economies (exemplified by Argentina and Brazil) based on learning networks and clusters.Both, in Europe and Latin America, SMEs are the most important sources of job creation and development in increasingly knowledge based economies. The economic environment in which SMEs operate, however, have differed significantly until recently. As the turbulence of the global economy is increasing European SMEs will have to learn to remain competitive in this new kind of economic environment. The answer lies in the development of “dynamic capabilities” of innovating, learning and knowledge management by SME networks.Following established theories and practices of organisational and social learning knowledge research activities are conceived as a joint learning and co-evolvement cycle in four phases Creating a joint vision,Learning from European approaches, Co-evolve SME model and practice in Argentina and Brazil,IHarvest and sustain.To achieve this objective a joint learning and co-evolvement process will be developed by four international research teams focusing on 1)Developing dynamic capabilities via SME networks and 2) via SME clusters , 3)Media + tools for developing dynamic capabilities, 4) monitoring dynamic capability developmentThe proposed project will create 4 major impacts:1. A new understanding of sustainable SME management in turbulent economies. 2.Improved innovation and learning capabilities of SMEs. 3.A lasting community of scholars. 4. Wide dissemination and leverage to key actors