Based on <strong>the</strong> <strong>in</strong>sights ga<strong>in</strong>ed dur<strong>in</strong>g <strong>the</strong> workshop, <strong>the</strong> Work<strong>in</strong>g Group identified <strong>the</strong>follow<strong>in</strong>g topics as possible <strong>the</strong>mes for future workshops:1) Venture capital: markets, policies, experiences2) EU Structural Funds: How to use EU Structural Funds to streng<strong>the</strong>n <strong>in</strong>novation,competitiveness <strong>and</strong> convergence?3) Possibilities for Baltic cooperation on issues relat<strong>in</strong>g to <strong>in</strong>novation, knowledge economy <strong>and</strong>enterprise development4) Cluster policies: models, best practices, directions for future policy design5) Human capital issues (tra<strong>in</strong><strong>in</strong>g, education, lifelong learn<strong>in</strong>g)6) Innovation policy: awareness issues7) Entrepreneurship8) (Innovation <strong>in</strong> ‘non-market’ sectors?)114
APPENDIX IV:Summary of <strong>the</strong> Panel session at <strong>the</strong> Baltic Development Forum Summit, Riga, Oct.6, 2003:<strong>Compet<strong>in</strong>g</strong> <strong>in</strong> <strong>the</strong> S<strong>in</strong>gle <strong>Market</strong> – <strong>the</strong> impact of EU Membership on <strong>SMEs</strong>One of <strong>the</strong> important concerns of <strong>the</strong> new member states <strong>in</strong> <strong>the</strong> Baltic Sea Region with regard to<strong>the</strong>ir accession to <strong>the</strong> European Union is that <strong>the</strong>ir <strong>SMEs</strong> will not be able to capture <strong>the</strong>opportunities nor cope with <strong>the</strong> challenges that arise from jo<strong>in</strong><strong>in</strong>g <strong>the</strong> S<strong>in</strong>gle <strong>Market</strong>.Aga<strong>in</strong>st this background, <strong>the</strong> Baltic Development Forum (BDF) <strong>and</strong> <strong>the</strong> International Organisationfor Knowledge Economy <strong>and</strong> Enterprise Development (IKED) ga<strong>the</strong>red representatives frompolitics, academia <strong>and</strong> <strong>the</strong> private sector to discuss how to enable a successful transition for <strong>SMEs</strong><strong>in</strong> <strong>the</strong> New Member States to <strong>the</strong> S<strong>in</strong>gle <strong>Market</strong>. In particular, <strong>the</strong> panel discussed <strong>the</strong> barriers toSME development <strong>and</strong> how <strong>the</strong>se barriers can be overcome.The panel consisted of an excellent comb<strong>in</strong>ation of top-level politicians <strong>and</strong> policymakers,academics, <strong>and</strong> bus<strong>in</strong>ess people:Meelis Atonen, M<strong>in</strong>ister of Economic Affairs <strong>and</strong> Communications, EstoniaAndris Den<strong>in</strong>s, Director, BDO InvestPer Eriksson, Director-General, VINNOVAMarian Geldner, Professor, Warsaw School of EconomicsJuris Lujans, M<strong>in</strong>ister for Economics, LatviaJorma Routti, Executive Chairman, Creative Industries Mgt.Thorhild Widvey, Secretary of States, M<strong>in</strong>istry of Foreign Affairs of NorwayThe session was moderated by Thomas Andersson, President of IKED.The panel agreed on <strong>the</strong> follow<strong>in</strong>g overall assessment of <strong>the</strong> situation for <strong>SMEs</strong> <strong>in</strong> <strong>the</strong>Baltic Sea Region:<strong>SMEs</strong> are <strong>the</strong> future agents of economic change, growth <strong>and</strong> employment <strong>and</strong> thusof prosperity (one <strong>in</strong>dication of this is <strong>the</strong> fact that, on average, <strong>SMEs</strong> account for morethan 50% of total employment <strong>and</strong> GDP <strong>and</strong> make up more than 90% of total enterprises<strong>in</strong> <strong>the</strong> Baltic Sea Region).Accession to <strong>the</strong> S<strong>in</strong>gle <strong>Market</strong> offers great opportunities for susta<strong>in</strong>able economicgrowth <strong>and</strong> particularly for <strong>SMEs</strong> <strong>in</strong> Lithuania, Latvia, Estonia <strong>and</strong> Pol<strong>and</strong>A lot is currently be<strong>in</strong>g done <strong>in</strong> <strong>the</strong>se countries to ensure a favourable bus<strong>in</strong>essclimate <strong>and</strong> environment <strong>and</strong> to promote <strong>in</strong>novation <strong>and</strong> enterprise development(This can be seen <strong>in</strong> <strong>the</strong> far-reach<strong>in</strong>g economic reforms <strong>and</strong> policy <strong>in</strong>itiatives but also <strong>in</strong> <strong>the</strong>high growth rates <strong>and</strong> <strong>the</strong> rapid catch<strong>in</strong>g up of <strong>the</strong> Baltic countries <strong>and</strong> Pol<strong>and</strong> when itcomes to <strong>in</strong>dicators for <strong>in</strong>novation <strong>and</strong> ICT use).BUT: Significant challenges rema<strong>in</strong> when it comes to enabl<strong>in</strong>g <strong>the</strong> development ofa critical mass of <strong>in</strong>novative <strong>and</strong> <strong>in</strong>ternationally competitive <strong>SMEs</strong> <strong>in</strong> <strong>the</strong> Baltic SeaRegion (One clear <strong>in</strong>dication of this is <strong>the</strong> relatively low number of economically activeenterprises per 1000 <strong>in</strong>habitants (<strong>in</strong> relation to population) <strong>and</strong> <strong>the</strong> high rate of uncerta<strong>in</strong>tyamong <strong>SMEs</strong> regard<strong>in</strong>g <strong>the</strong> consequences, opportunities, <strong>and</strong> effects for <strong>the</strong>m of jo<strong>in</strong><strong>in</strong>g<strong>the</strong> S<strong>in</strong>gle <strong>Market</strong>; ano<strong>the</strong>r <strong>in</strong>dication is <strong>the</strong> relatively low number of economically activeenterprises <strong>in</strong> some of <strong>the</strong>se countries).115
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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
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National governments themselves wil
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Institutional StructureIn all of th
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