Competing in the Single Market - SMEs and ... - Erhvervsstyrelsen

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THE IMPACT OF EU MEMBERSHIP ON SMEs IN THE BALTIC COUNTRIESAND POLAND – DESIGNING POLICIES FOR INNOVATION AND ENTER-PRISE DEVELOPMENTBackgroundTen new countries are set to become members of the European Union in 2004. One of the centralquestions raised in this context is what will be the impact of joining the EU’s internal market onsmall and medium-sized enterprises (SMEs) in the new member states. As a consequence of theirintegration with the European Union, considerable new opportunities can be anticipated for theSME-sector in these countries. On the other hand, competition in their home markets will intensify,bringing pressures and transition costs. A dynamic and competitive SME sector is pivotal for futureeconomic growth and employment in these countries. What special measures are warranted by policymakers to improve prospects for SMEs to capture the new opportunities while handling the costs ofthe EU-accession.IKED, in close cooperation with the Danish National Agency for Enterprise and Housing (ErhvervsogBoligstyrelsen), the Centre for Economic and Business Research (FORA) in Copenhagen,Denmark, and the governments of the three Baltic countries and Poland, is currently carrying outa multi-country programme that will focus on the impact of integration on Baltic and Polish SMEsinto the European Union’s Single Market. Building on the work on SME development carried outso far, the Baltic Programme addresses the specific policy challenges of ensuring the developmentof dynamic, innovative and internationally competitive SMEs once these countries have becomemembers of the EU.IKED is currently putting together a working group, consisting of high-level policymakers andexperts from the Baltic States and Poland, as well as from the Nordic countries, including therepresentatives from countries who have undergone a comparable transition process in connectionwith their accession to the EU. In addition, qualified representatives from the European Commissionwill also be invited to participate.The purpose of the working group is twofold: In the first instance, it will give experts and policymakersfrom the Baltic countries and Poland the opportunity to exchange views and experiences with theircounterparts in countries, which faced similar opportunities and challenges when they becamemembers of the EU. In the second instance, it will bring together experts, policymakers and businessrepresentatives from the countries in question to discuss, and agree on, specific policy proposals forimproving SME competitiveness.Based on the conclusions reached at the meeting of the working group in June 2002, policyrecommendations for SME development in the Baltic States and Poland will be presented at the BalticDevelopment Forum Summit in Riga in October 2003.110
APPENDIX II:Participants in the IKED Working Group Meeting on June 16-17, 2003 in RigaLatvia: G.Freimanis, Deputy State Secretary, Ministry of Finance R.Aleksejenko, Director of Industry Department, Ministry of Economics A.Buhrins, Director of Entrepreneurship Department, Ministry of Economics U.Osis, Member of the National Economy Council J.Stabulnieks, Director, Latvian Technology Centre V.Avotiš, Head of Engineering Cluster, Latvian Development Agency J.Dklavs, Chairman of SME Commission, Latvian Chamber of Commerce and Industry (I.Šteinbuka, Public Utilities Commission, Chair) Anda Adamsone, Latvian Academy of SciencesEstonia: Pirko Konsa, Head of Division, Enterprise Division, Ministry of Economic Affairs andCommunications Enn Metsar, Technology and Innovation Division, Ministry of Economic Affairs andCommunications Alar Kolk, Member of Management Board, Enterprise Estonia Foundation, Ülari Alamets, Director of Regional Development Agency, Enterprise Estonia FoundationPoland: Aleksander Zolnierski, Specialist in the Analysis and Programming Section, Polish Agency forEnterprise Development (PAED) Dr. Elzbieta Raciniewska, Chief Expert, Ministry of Economy, Przemyslaw Kulawczuk, Expert, SME sector development support, Polish Chamber ofCommerceLithuania: Dr. Kastytis Gecas, Lithuanian Innovation Centre Loreta Križinauskien, Managing Director, Allianace "Window to the Future"Finland: Matti Pietarinen, Deputy Director-General, Head of Division, Industrial Policy Division,Ministry of Trade and IndustrySweden: Suzanne Håkansson, Deputy Director, Ministry of Industry, Employment and Communications Thomas Aronsson, VINNOVA Martin Hedman, IUC Coordinator, University of LinköpingDenmark: Kristian Birk, Head of Division, Danish National Agency for Enterprise and Housing (NAEH)111
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Sylvia Schwaag SergerEmily HanssonC
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About the International Organisatio
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PREFACEAccession to the Single Mark
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enterprise development. There are n
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BOXESBox 1: The ‘Knowledge-Based
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INTRODUCTIONAfter more than 10 year
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CHAPTER 1: FROM STABILISATION TO IN
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increased competitive pressure as B
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Box 2: On Innovation and Innovation
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Table 5: GDP Growth 1995-2003 in Se
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Table 7: Relative Strengths and Wea
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Box 3: The Indicator ProblemExistin
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CHAPTER 2:BALTIC SMEs - AGENTS OF F
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Table 9: Average Annual Growth of S
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Box 4: Overview of Selected Multina
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The Role of SMEs in Transitional Ec
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e to the potential advantage of the
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A common measurement of business ac
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Figure 8: Labour Productivity per P
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Figure 10: Employment in Med/Hi-tec
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Summing up, there are fewer economi
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Overall, SMEs tend to lack the fina
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Figure 12: Enterprises with Innovat
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Figure 14: Proportion of Enterprise
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Table 14: Barriers to Innovation fo
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Some interesting examples of cluste
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CHAPTER 3:POLICIES PROMOTING SMEs A
Page 61 and 62: National governments themselves wil
Page 63 and 64: Institutional StructureIn all of th
Page 65 and 66: EU countries (innovation relay cent
Page 67 and 68: LITHUANIAAgency/OrganisationLithuan
Page 69 and 70: From the private sector, the chambe
Page 71 and 72: On the whole, the B4 have relativel
Page 73 and 74: LITHUANIAProgramme/Policy DocumentI
Page 75 and 76: Table 19: B4 National Rankings of A
Page 77 and 78: Box 11: Structural Funds to the Can
Page 79 and 80: Box 12: On SMEs and FinancingIt doe
Page 81 and 82: examples of evaluations of national
Page 83 and 84: CHAPTER 4:CHALLENGES AND RECOMMENDA
Page 85 and 86: General challengesBased on our own
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Page 89 and 90: the EU average and particularly wit
Page 91 and 92: RecommendationsBased on the challen
Page 93 and 94: CHAPTER 5:A VISION OF A NORDIC-BALT
Page 95 and 96: addition, they are the most advance
Page 97 and 98: countries. One such sign is the rap
Page 99 and 100: CONCLUSIONSEU accession will not re
Page 101 and 102: REFERENCESAlfonso, Antonio, Ludger
Page 103 and 104: European Commission (2003f), Compre
Page 105 and 106: Eurostat (2004a), SMEs in the Candi
Page 107 and 108: Statistical Office of Estonia (2004
Page 109 and 110: APPENDIX I:Agenda for Working Group
Page 111: DAY 2:POLICY SOLUTIONS9:30-10:30 In
Page 115 and 116: APPENDIX III:Conclusions from the I
Page 117 and 118: APPENDIX IV:Summary of the Panel se
Page 119 and 120: Regarding the role of policymaking,
Page 121 and 122: APPENDIX V:Description of Field Stu
Page 123 and 124: Mr. Miroslaw MarekMr. Talis Millers
Page 126: IKED - International Organisation f
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