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Based on a longitudinal literature review with three time series, this study has tried to deduct patterns of innovation among business sectors, during pre-concurrent-post periods of popularization of the term \u2018open innovation\u2019, emphasizing their implications on entrepreneurship development. However, efforts have been given to emphasize on prominent taxonomies that exists among small and medium enterprises (SMEs). Thereafter, it has tried to develop a framework on taxonomies of innovation focusing the emerging knowledge economy and the prevailing global economic crisis. 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