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

SummaryThere is no doubt that, since the collapse of the socialist regimes in 1989, the B4 countries have madean impressive transition to fairly well-functioning market economies characterized by a high degree ofmacroeconomic stability. In this chapter, we have made the point that, in light of their EU accessionand the structural changes currently reshaping the world economic order, the B4 countries cannotafford to sit back and rely on macroeconomic stability and conducive legal framework conditions toensure the development of a dynamic, and internationally competitive business sector.In particular, the rapidly growing importance of knowledge for economic welfare and competitivenessputs increasing focus on firms’ and countries’ ability to innovate. Institutional and organizationalconditions, access to knowledge, capital and labour markets, managerial capabilities and other humancapital issues, incentive structures and attitudes are some examples of factors that will strongly affectthe extent and pace of enterprise development in general, and of SME development in particular.Some indicators show a dramatic improvement in the B4 countries’ innovative capacity, particularlyin the field of ICT access and usage, revealing that these countries are ‘catching up’ to their moreadvanced European partners. However, significant challenges remain to ensure the development ofstrong national innovation systems, in which companies, and particularly SMEs, are able and willingto innovate, to be internationally competitive and to grow.The next chapter takes a closer look at the role and structure of SMEs in the B4 countries. It also looksat SMEs in the context of innovation and how well they are integrated into the national innovationsystems of the respective countries.27