Small states’ peculiar features are often considered as challenges and usually perceived as limiting characteristics compared to their larger counterparts. In this paper, we show instead that small states can transform the former into valuable opportunities that make them: (1) turn from small into big by expanding their dimensional spaces and creating new, alternative spaces; and (2) turn small out into being better than big by shifting to an alternative perspective, one where ‘small is better’. Examples of municipalities, small and microstates, will reinforce these arguments by showing how they are unveiled in practice; and how technological as well as digital innovation can leverage small states’ features and competitive advantages.