MED islands' main economic activities are Agriculture and Tourismism and the related Agro food and Building industries, all of which present a high seasonality. Other existing handicrafts activities and industries are declining. As a result seasonality tends to increase. To compensate that trend economic diversification through the development of new industrial activities, high-tech, knowledge-based, ecology friendly and compatible with the existing economic activities is a viable solution. A shift to such knowledge-driven industrial activities can upgrade the quality of job opportunities in MED islands. But small insular industries are handicapped for that shift, since they are located at the edge of the European periphery.