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

PREFACEAccession to the Single Market brings both new opportunities and challenges for companies,individuals and institutions in the new EU Member Countries. This is happening at a time whenstructural changes are reshaping the world economic order. The pressures arising both with EUaccession and the knowledge-based economy are likely to be felt particularly acutely by smallandmedium-sized enterprises (SMEs), which, on average and in contrast to large multinationalenterprises, tend to lack the internal and external resources and structures necessary for adjusting tothe above-described changes.Against this background, in March 2003, the International Organisation for Knowledge Economyand Enterprise Development (IKED) initiated a programme, with the support of the Danish NationalAgency for Enterprise and Housing (NAEH), entitled “Competing in the Single Market – the Impactof EU Membership on SMEs in the Baltic Countries and Poland (Baltic Programme)”. Building onthe work on SME development carried out so far, the Baltic Programme addresses the specific policychallenges connected with the development of dynamic, innovative and internationally competitiveSMEs.This study, entitled “Competing in the Single Market – SMEs and Innovation in the Baltic countriesand Poland”, differs from many existing studies on SME and innovation issues in these countries insome important aspects. Firstly, the study has adopted a comparative perspective. There are numerousnational studies on challenges to SMEs and innovation, but very few comparative analyses. This studycompares the countries of Estonia, Latvia, Lithuania and Poland both with each other, with Nordiccountries (who are recognised as leaders in innovation), and with the broader European region. Fromthis comparative analysis, conclusions and recommendations which are more broadly applicable canbe drawn.Secondly, the approach to this work has been based on a combination of analysis and policy process.That is to say, the project has been anchored with policymakers and other appropriate stakeholdergroups (private sector and academia) throughout the process in order to ensure relevant and actionorientedrecommendations. The project initiated contact with a number of policymakers in a workinggroup meeting held in June (see Appendices I-III). Conclusions from this working group meetingformed the basis of a vision for Nordic-Baltic cooperation, initially presented in an interim reportand a high-level panel discussion held in connection with the Baltic Development Forum Summit inOctober 2003 (see Appendix IV). Finally, meetings/interviews (see Appendix V) and consultationswere held with approximately 80 people, representing government, industry and academia, in orderto discuss hypotheses and preliminary recommendations and their relevance to the practical situationsand priorities in these countries. The ongoing dialogue with these contacts has led to a concreteanchoring of the recommendations, and a desire to continue the momentum established.The authors would like to thank the following organisations and individuals for their support andcooperation: the NAEH, the Latvian Investment and Development Agency for its assistance inorganising the working group meeting in Riga, the Baltic Development Forum, working groupparticipants, and the many public and private sector representatives who took the time to beinterviewed and share their valuable inputs on this topic.5