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

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Figure 16: Shares of R&D by Funding Sources (2000 or nearest)100%80%60%40%AbroadGovernmentIndustry20%0%Cyprus Estonia Bulgaria Latvia Lithuania Poland Hungary Turkey Romania Czech Slovenia SlovakRepublicRepublicSource: European Commission (2003c)EU15In addition to the low level of private sector R&D investment, the fact that there is a low amountof collaboration between public and private sector R&D activities is a concern. SMEs are rarelyable to make considerable investments in R&D as individual companies. And the research sector israrely able to commercialize its scientific knowledge without a closer understanding of the market.With a large proportion of SMEs in the B4, and a considerable wealth of knowledge in the academicand research sectors, there appears to be an untapped potential for collaboration between these twogroups. Without closer collaboration on R&D and a greater focus on commercial innovation, theR&D investments that are currently being made are less likely to deliver returns. In general, there isa low amount of collaboration between government, academia and the private sector; however, thetrend towards more and closer collaboration can already be seen in certain instances (see Box 10).Box 10: SPINNO Scheme on Entrepreneurial Research Activities in EstoniaIn 2001, the Estonian Technology and Innovation Unit (within the Ministry of EconomicAffairs and Communication) developed a series of schemes and initiatives based oninternational policy learning and benchmarking analysis. One of the schemes was theSPINNO scheme, targeted at developing the innovation support system as opposed to directfunding support to enterprises of R&D institutes. SPINNO aims, instead, at developing theentrepreneurial activity-oriented supportive role of universities and R&D institutions bysupporting related activities, namely: development of legal framework within universities andR&D institutes which influence application of research results; creation of spin-off enterprises;patenting and licensing policy development; activities related to financing and access to capitalmarkets; enhancing of contract research and R&D related cooperation; improving exchange ofinformation and cooperation between local and international partners.Approximately 1,6 million has been allocated to this programme during 2002 and 2003.There are currently two SPINNO projects running: one at Tallinn Technical University andanother in Tartu, bringing together Tartu University and other regional actors. An evaluationof the programme was scheduled at the end of 2003 to determine results achieved and possiblecontinuation.68
On the whole, the B4 have relatively active lobbying and support networks for SMEs, both publiclyandprivately-led. The primary issue is not the lack of adequate governance mechanisms for SMEs andinnovation policies, but rather the lack of coordination between the different actor groups.Programmes, Policies and ProgressAs with the institutional structure, programmes and policy mechanisms focused on SMEs havedeveloped rapidly over the past several years. EU accession (and PHARE funds) has served as aguiding and catalysing force in this area. In each of the B4 countries, there are several key policydocuments establishing priorities for action to support SMEs. In most of the B4 countries, SMEsare specifically mentioned in the context of their national innovation programmes. An overview ofprogrammes supporting SME development, although not exhaustive, is provided in Table 18 below.Table 18: Overview of Selected Programme/Policy Documents Affecting SMEs in the B4ESTONIAProgramme/Policy DocumentEnterprising Estonia – National Policy forthe Development of Small and Medium-Sized Enterprises in Estonia in 2001-2006Estonian Research and DevelopmentStrategy 2002-2006 “Knowledge-basedEstonia”Competence Centres ProgrammeInnoAwareness ProgrammeAreas of Focus/Policy Instruments- development of human resources through support for retrainingand continued education- improved access to finance through non-repayable startupaid, and SME credit and leasing guarantees- development of business support infrastructure throughadvisory services and business training- improved access to business information- reduction of administrative barriers- establishment of incubation centres and industrial parks- approved in 2001 with the aim of turning Estonia froman investment-based economy into an innovation-driveneconomy by updating the pool of knowledge (one targetis to increase R&D expenditure to 1.5% of GDP by 2006)and by increasing the competitiveness of enterprises- launched in January 2003 to develop cooperationbetween R&D institutions and enterprises- enhancing R&D cooperation and technologydevelopment, and aligning it to the needs of industry- increase competitiveness of enterprises through moreintensive and strategic RD&I cooperation between theresearch and business sector- foster clustering through bringing together peopledealing with the same technology area from bothbusiness and research sectors to develop newcompetitive products and services- launched during 2003/2004 for innovation capacitybuilding in SMEs- provides resources and knowledge on innovationmanagement69
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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
Page 19: increased competitive pressure as B
Page 22 and 23: Box 2: On Innovation and Innovation
Page 24 and 25: Table 5: GDP Growth 1995-2003 in Se
Page 26 and 27: Table 7: Relative Strengths and Wea
Page 28 and 29: Box 3: The Indicator ProblemExistin
Page 31 and 32: CHAPTER 2:BALTIC SMEs - AGENTS OF F
Page 33 and 34: Table 9: Average Annual Growth of S
Page 35 and 36: Box 4: Overview of Selected Multina
Page 37 and 38: The Role of SMEs in Transitional Ec
Page 39 and 40: e to the potential advantage of the
Page 41 and 42: A common measurement of business ac
Page 43 and 44: Figure 8: Labour Productivity per P
Page 45 and 46: Figure 10: Employment in Med/Hi-tec
Page 47 and 48: Summing up, there are fewer economi
Page 49 and 50: Overall, SMEs tend to lack the fina
Page 51 and 52: Figure 12: Enterprises with Innovat
Page 53 and 54: Figure 14: Proportion of Enterprise
Page 55 and 56: Table 14: Barriers to Innovation fo
Page 57 and 58: Some interesting examples of cluste
Page 59 and 60: 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: From the private sector, the chambe
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
Page 87 and 88: the above-mentioned channels. 27 On
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 and 112: DAY 2:POLICY SOLUTIONS9:30-10:30 In
Page 113 and 114: APPENDIX II:Participants in the IKE
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,
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APPENDIX V:Description of Field Stu
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Mr. Miroslaw MarekMr. Talis Millers
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IKED - International Organisation f
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