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

Priorities for PolicyOverall, one conclusion to be reached when examining policies in the B4 countries, is that muchhas been achieved when it comes to improving the administrative and regulatory framework andexpanding the network of support services to SMEs. Furthermore, there is increasing focus onchanging attitudes and building entrepreneurial/management skills, as well as on capitalizing onthe vast knowledge base in these countries. At the same time, however there are still many hurdlesto jump. SMEs have a tougher time accessing foreign investment (as most is geared towards largemultinationals), and do not often have the option of seeking venture capital (as there is virtuallyno seed capital in these countries; see Box 12). Instead, SMEs must seek partnerships with othercompanies and research institutions in order to innovate. Yet the policy mechanisms supporting theselinkages and cooperation forms (e.g. technoparks and innovation relay centers) are still young and arenot yet achieving the goals they set out to achieve.Thus, according to one expert interviewed, technoparks are “filled with companies seeking tax breaks,and that are not catalyzing the formation of clusters and research partnerships as envisaged”. Innovationrelay centers are accessing thousands of possible international partners for technology developmentand innovation, yet spend much of their time confirming credibility and establishing trust betweenpossible partners. Although ICT has eased communication between international partners, the abilityto truly form a long-lasting partnership still has everything to do with relationships.76