Synopsis: Education:

Another exemple is e-education that represents an alternative to the traditional learning method, making the applicant independant from time

Broadband communications can contribute to an increase in Romanian school's value by implementing new teaching learning methods (elearning),

and students all over the world or to increase the degree of specialization of employees at companies'level by developing programs of E training

and e-Coaching. 8 At the same time new opportunities arise for the knowledge level of universities by the possibility to develop

and intensify university research programs by joining the efforts of researchers in different centers in Romania and intensification of cooperation at different projects internationally (e-working),

but also an insufficient level of digital literacy and understanding of benefits; The high percentage of the population residing in the rural areas

Providing relevant content-Percentage of the population using on-line services-Number of users of elearning services-%of companies with their own web site-%of companies using E-business type applications-Number of e-Administration

INE-Eurostat The regional administration and higher education sectors are spending relatively more on R&d than the companies.

Administration 0, 11 0, 14 0, 18 0, 14 Higher education 0, 17 0, 18 0, 18 0, 17 TOTAL 0

INE-Eurostat The evolution of the number of researchers in all sectors (business, government and higher education) has increased until 2010.

Holding a diploma in physics, he started in 1976 to work as journalist and policy consultant for energy issues in Switzerland.

and priorities and all are involved in a complex learning process concerning their options, their interests, their vision for a future system and their role in it.

The transition towards a much more smart system can be considered as a vast learning, discovery and negotiation process in

new technologies need large markets for bringing the costs down a joint learning process helps to keep up with the challenges of an accelerating transformation

and diversity also helps in a creative joint learning process. Due to their short history and given their wide range of motives and origins

the discussion is to a disturbing degree at the same time an open learning process concerning a new range of issues,

(Schleicher--Tappeser, 2000),(OECD, 2010),(OECD, 2011) The EU Smart Grids Debate 32 The difficult solution for this dilemma lies in speeding up the learning process by increasing

ISTEI University of Milan-Bicocca ISSN: 1593-0319 del Castillo Jaime, Paton Jonatan, Barroeta Belen (2015) Smart Specialisation for Economic Change:

*Full professor of Applied Economics, University of Basque Country (infyde@infyde. eu)**Phd Researcher, INFYDE (jonatanpaton@infyde. eu)**CEO, INFYDE (belenbarroeta@infyde. eu

ISTEI University of Milan-Bicocca ISSN: 1593-0319 31 do chosen the priorities in the RIS3 strategies represent the real territorial specialisation patterns?

ISTEI University of Milan-Bicocca ISSN: 1593-0319 32 appropriate measures to support them (Del Castillo et al. 2013a) as well as to monitor them (Del Castillo et al. 2015b.

ISTEI University of Milan-Bicocca ISSN: 1593-0319 33 how to reach consensus and commitments about actions and instruments to support these initiatives among all agents involved and,

ISTEI University of Milan-Bicocca ISSN: 1593-0319 34 Second, the latter statement is even more obvious

ISTEI University of Milan-Bicocca ISSN: 1593-0319 35 3. 1. The Priority Setting in RIS3:

ISTEI University of Milan-Bicocca ISSN: 1593-0319 36 Experience activities 99,4 98,0 119,5 114,2 115,0 94,8 81,2 94,7 93,5 96,9 108,0 96,8 101,4 117,5 85,1

ISTEI University of Milan-Bicocca ISSN: 1593-0319 37 Figure 1: Regions in Spain by type of technological priority included in the RIS3 2014-2020 Source:

ISTEI University of Milan-Bicocca ISSN: 1593-0319 38 Figure 2: Number of regions in Spain by type of policy area included in the RIS3 2014-2020 Source:

ISTEI University of Milan-Bicocca ISSN: 1593-0319 39 Source: INFYDE 2015 Finally, considering the number of instruments (financial, nonfinancial and legal frameworks) by region, some remarkable differences can be observed:

ISTEI University of Milan-Bicocca ISSN: 1593-0319 40 Source: INFYDE 2015 Main conclusions obtained from the analysis pointed out that Spanish RIS3 include a relative high number of indicators that may present difficulties in terms of gathering information during the monitoring process,

ISTEI University of Milan-Bicocca ISSN: 1593-0319 41 Even though entrepreneurial discoveries are in the core of the strategies (they are the way to achieve the mentioned specialised diversification) there was no real integration (or at least an operative one) of them.

and initiate a learning process between regions in issues related to RIS3 (e g. entrepreneurial discoveries, indicators and monitoring, interregional collaboration and synergies, etc.)

ISTEI University of Milan-Bicocca ISSN: 1593-0319 42 Del Castillo, J. Paton, J. & Barroeta, B. 2013a) Territorial Governance in a smart specialisation context In Territorial Cohesion in Europe Transdanubian

Economic geography Working Paper 2011, Faculty of Spatial Sciences, University of Groningen. OECD (2011) Regions and Innovation Policy OECD Reviews of Regional Innovation, OECD Publishing.

ISTEI University of Milan-Bicocca ISSN: 1593-0319 43 Technopolis (2006) Strategic Evaluation on Innovation and the knowledge based economy in relation to the Structural and Cohesion Funds, for the programming period 2007-2013.

research and innovation The University of Zaragoza plays a major role in Aragon with its 35000 students (including many Erasmus students)

and nearly 4000 professors and researchers. http://www. unizar. es The interface between the University and research is mainly in the hands of strong University Research Institutes.

The University has also set up since 1988 Oficinas de transferencia de resultado de investigacion (OTRI) http://www. unizar. es/otri/index. jsp aiming at fostering the cooperation between researchers and companies.

These centres are limited not to the University, 18 OTRI are registered presently in Aragon. A private University:

San Jorge was created in 2005. http://www. usj. es Main research centres and fields Research is organized in Spain both at a national and regional level.

It also plays an important role in the field of training thanks in particular to a Master in innovation which was launched five years ago. www. ita. es The Centro de Investigación de Recursos y Consumos Energéticos

It was created in 1993 with the support of the University. http://fcirce. es/The Aitiip Centro Tecnológico also acts as technological center specialized in plastics and composite materials.

The coordinator of this network belongs to the University. This network is particularly active in Brussels,

research centers international Scientific & Technological facilities Innovation & Tecnological centers Aragonese University System Support & promotion structures Parks

Strategic geographical location in Spain, a few strong sectors, good research infrastructures, industrial tradition, high level of education, innovative Zaragoza But also strong territorial unbalances, lack

and led by a governing council participated by representative members of the Public Administration, the University and the civil society.

EIBT certification by ANCES (National Association of CEEI's) or by information provided by the University,

The University has identified consistent contracts with 374 companies as partners of the University. Those companies must be considered as agents in the strategic process.

How does it support a process of policy learning and adaptation? How is it to be communicated?

The actual governance structure should be improved in the future to be able to support a process of continous policy learning and adaptation.

or agents from sources like the University or other agents. h) Action plans and/or realistic roadmaps in line with the objectives must be defined. i) Strategic actions fostering cross-clustering capacity,

entrepreneurship and the innovation capabilities of SMES should be defined. j) The University has identified consistent contracts with 374 companies as partners of the University,

achievable goals or output and result indicators and a realistic timeline for these goals. p) The actual governance structure should be improved in the future to be able to support a process of continous policy learning and adaptation q) The communication

University of Cantabria with high research activity. Significant increase in the number of researchers. Important RD centers in Cantabria.

Government of Cantabria Business Associations University Tecnology Centers Trade unions What have done we already? We Have identified 18 debate groups

We have got a european RIS3 specialist consultant (Adrian Healy from Cardiff's University) to supervise the process.

Científica Soft Management of Internet and Learning Materiales Magnéticos (GMM) Aceite de Oliva y grasas (GAO-UCLM) Simplificación, Automatización y Miniaturización de

and the regional and national administration. 8 Universities: 4 of them are public (Burgos, León,

Salamanca and Valladolid) and the other 4 are private (Catholic University of Ávila, Pontifical University of Salamanca,

IE University in Segovia and European University Miguel de Cervantes). 5 Institutes from CSIC (Spanish Research Council) and 10 Associated Units, some of them operating in collaboration with Universities.

T-CUE Network of university interface structures, COCI (Council of the Chambers of Commerce and Industry), etc.

Science Parks in the Public Universities (Burgos, León, Salamanca and Valladolid; Business Innovation Centres (BIC) of Burgos, León and Valladolid;

the Science and Technology Coordination Commission, the Commissioner for Science and Technology, the Business Innovation and Financing Agency ADE (Regional Development Agency of Castilla y León), the Universities Foundation

of Castilla y León, the Directorate General of Universities and Research, the Directorate General of Planning and Innovation (Management of Health Services),

which the contribution the higher education sector was the most significant contribution. 2001 2011 Enterprises 53,3%Government 6, 8%Higher education Private Non 39,5%Profit 0, 4%Enterprises

54,4%Government 9, 9%Higher education 35,6%Private Non Profit 0, 1%Figure 4. R&d expenditure by sectors.

citizens, universities, research centers and Government. Future vision that makes use of strenghts, competitive advantages and potential for excellence, all with an outward perspective.

including interviews and work groups with participation of representatives from government, businesses, business associations, universities, research centers, technology transfer instruments and society in general through the Castilla y León Regional Government

Heritage Administration Business researchers Technology Centres Knowledge Transfer Entities Universities and research centres Knowledge Transfer Offices Advanced Materials Biotechnology Advanced manufacturing

%)Among the positive aspects of the regional context analysis, it can be mentioned that Castilla y León's employed population (39.2%)has attained slightly higher levels of education than the national average (38.6%).

universities, research centers, and knowledge transfer centers have generated gradual convergence with the national average in terms of performance indicators. 2 CONTEXT ANALYSIS 5 Net taxes on products are considered an additional component in the regional GDP,

With regard to the level of ICT penetration in education, 100%of the region's primary and secondary education public schools had Internet access, with very high broadband connection percentages, a much higher figure than the national average.

Concerning the ratio of students per computer, this figure has been decreasing in Castilla y León as well as at the national level, in both primary and secondary education.

Regarding the level of ICT penetration in health care the integration of the clinical history in primary services has been carried out with specialized attention in six out of the eleven health-care areas in Castilla y León,

the weakness in the University-Company relationship persists and positions of the regional universities have fallen behind national university rankings.

The entrepreneurial fabric's technological level and capacity for absorption of knowledge is limited. Reduced scale of companies with management training requirements.

Insufficient preparation of university graduates in the skills and abilities that companies require. Decapitalization of human resources in research entities and talent and brain drain.

Decreased globalization of innovation and minimal participation in international funding sources. THREATS Prolonged effects of the financial crisis and difficulty in entering financial markets.

Wide offering of qualified professional profiles trained in ICT coming out of the region's university and vocational training systems.

Lack of adaptation of regulated training (University, Vocational training) for the ICT market. Difficulty in globalization of the regional ICT sector.

Hesitation in using ICT in the classroom by a certain percent of teachers and difficulty in extending digital public services in the field of health care due to region-wide dispersion.

To this end, it addresses entrepreneurial cooperation, commitment to interdisciplinary collaboration and/or between different research entities, sharing and increasing value of knowledge and connection between higher education and innovation as the base of human capital in a smart

and contribute to knowledge transfer. 4. 4 Increase the convergence between higher education and innovation. PROGRAMME 5. INNOVATIVE SOCIETY Programme 5 takes into consideration the importance of extending the innovative and creative spirit throughout society.

5. 1 Form attitudes and values for creativity and innovation and develop entrepreneurial skills in students

and learning about some new S3 aspects, such as: New planning issues: Further policy integration: Digital Knowledge Society, Education Deainition of Plans, more speciaic than the Strategy.

RUNNING INITIATIVES 2001 Commission for Coordination on Science and Technology. 2002 Law of Promotion and General Coordination of R&d&i. 2003 Universities Law modified in 2010). 2007-2013 Regional

R&d&i Strategy 2007-2013.2007 Commissioner for Science and Technology. 2008-2013 University-Business Strategy 2008-2013.2010-2013 II Framework Agreement for Industrial Competitiveness

Progressive integration of policies The University--Business Strategy, TCUE program, the support to business start-ups Consensus building with regional actors.

Universities and research centres Technology centres Companies, business associations and clusters Roles of the actors:

Focus Group Public administration Companies Researchers Technology centres Knowledge Transfer entities Universities Knowledge transfer entities Companies SWOT R&d&i SWOT Digital

still insufaicient university--business relationship. University graduates not adapted to companies'needs. Universities are low in national (and international) rankings.

Small size of companies, and low technology level and absorption capacity. Brain drain. Reduced internationalization. Building the evidence base for RIS3

(I) SWOT Analysis R&d&i 12 Opportunities Exploitation of trends of future in some areas, such as agro food, health and quality of life and energy and environment.

and supply of graduates from University and vocational training. ICT sector specialized in mobility and security.

and Innovation vis--à--vis other regions Participation in mutual learning activities Interreg IV C Know--Hub project Spanish ERDF--funded policies Network

All types of actors involved (companies, business associations, universities, research & technology centres, public administration, trade unions) More difaicult now (disappointment.

& technology transfer Higher education--Innovation Competitive economic model New innovative companies Training for innovation Access to Ainance Business innovation services Innovation & creativity social

The discovery process means building external organisations of connections with universities, laboratories, suppliers, users, in order to integrate and structure this divided and dispersed knowledge.

and consolidate multiple‘entrepreneurial'knowledge sets currently dispersed through a range of actors, such as firms, higher education institutions, independent inventors and innovators (Foray et al, 2012;

which privileges the industry-public sector-university nexus in the innovation process. The RIS literature has had only a limited amount to say about the role of citizens and users in the innovation process,

There is some evidence that universities and research funders are now seeking to construct such spaces,

through national labs and universities, but also to mobilize resources that allow knowledge and innovations to diffuse broadly across sectors of the economy.

university nexus) will need to Smart Specialisation for Regional Innovation: WP2 Embracing Social Innovation Page 18 brought into collaboration with other actors including the social enterprises, civil society and end users.

and the absence of a capacity for organizational learning (Clark, et al, 2008). Smart Specialisation for Regional Innovation:

uncoordinated experiments involving various stakeholders in different learning spaces in and beyond Europe (OECD, 2011: 11).

‘firm-centred',university-centred, public-sector-centred and user-centred models (see Figure 4. 1). Ideally these separate models would be coordinated through local-regional public authorities.

WP2 Embracing Social Innovation Page 30 universities, public organizations and users. This is a huge cultural change be it in the public or private regime.

promote mutual learning and carry out research on the implementation of the active inclusion strategies at the local level. http://www. eurocities. eu/eurocities/activities/projects/Cities-for-Active-Inclusion 34 SROI is becoming increasingly popular;

The creation of new networks and communities of practice is a social learning process involving the construction of shared meanings, norms, values and understandings (Wenger, 1998;

Bruno et al, 2008: 6). Social learning can be stymied by risk averse organisational cultures, weak feedback mechanisms and conventions that extol process over outcomes,

The concept of the mundane economy embraces sectors that loom large in meeting core human needs-such as health education, food, water, housing, energy, social care and the like

and delivery of public social services like health education and social care for example. With respect to the developmental role we found some merit in the entrepreneurial state thesis propounded by Mazzucato (2013)

P. W. 2009)‘ Who matters to universities? A stakeholder perspective'High Education (2010) 59: 567 588.

Collective Action, Socail Learning and Transdisciplinary Research. Cheltenham: Edward Elgar Castells, M. 2001) The Internet Galaxy.

Etzkowitz, H. and Leydesdorff, L. 2005) Universities and the Global Knowledge Economy: A triple-helix of university-industry-government relations.

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Scoping Document for Agorada 2011+.+EURADA-NEWS Nr 339 8. 12.11. European Association of Development Agencies Association Européenne des Agences de Dévelopement.

A Feminist Critique of Political economy, Minneaplois, University of Minnesota Press Gibson-Graham, J. K. 2008) Diverse Economies:

Collective Action, Socail Learning and Transdisciplinary Research. Cheltenham: Edward Elgar. Hämäläinen, T. and and Heiskala, R. eds)( 2007) Social Innovations, institutional change and economic performance, Cheltenham:

Collective Action, Socail Learning and Transdisciplinary Research. Cheltenham: Edward Elgar Jenkins, H. 2007) Convergence Culture, New york:

New york University Press Johnson, M (2013) Mondragon co-op reels after loss of oldest member, Financial times, 10 december Smart Specialisation for Regional Innovation:

Collective Action, Socail Learning and Transdisciplinary Research. Cheltenham: Edward Elgar Kunnen, N.,Maccallum, D. and Young, S. 2013)‘ Research strategies for assets and strengths based community development',in Moulaert, F.,Maccallum, D

Collective Action, Socail Learning and Transdisciplinary Research. Cheltenham: Edward Elgar Leadbeater, C. 2009) We Think.

Collective Action, Socail Learning and Transdisciplinary Research. Cheltenham: Edward Elgar. Lister, R. 2003b) Investing in the citizen-workers of the future:

The Rise of Regional Experimentalism in Europe, in M. Gertler and D. Wolfe (eds) Innovation and Social Learning, Basingstoke, Macmillan.

Collective Action, Socail Learning and Transdisciplinary Research. Cheltenham: Edward Elgar. Moulaert, F, Mccallum, D. and J. Hillier (2013b)‘ Social innovation:

Collective Action, Socail Learning and Transdisciplinary Research. Cheltenham: Edward Elgar. Mulgan, G. 2013) The Locust and the Bee:

Collective Action, Socail Learning and Transdisciplinary Research. Cheltenham: Edward Elgar. OECD (2007) Participative Web and User Created Content:

Collective Action, Socail Learning and Transdisciplinary Research. Cheltenham: Edward Elgar. Prahalad, C. K and Ramaswamy, V. 2004)‘ Co-creation experiences:

Policy Commission on the Distribution of Wealth, Birmingham University www. birmingham. ac. uk/..Key-Facts-Background-Paper-BPCIV. pdf Rubalcaba L.,Windrum P

Collective Action, Social Learning and Transdisciplinary Research. Cheltenham: Edward Elgar. Von Hippel, E. 2005) Democratizing Innovation.

websites and teaching materials, provided that suitable acknowledgment of OECD as source and copyright owner is given.

and Riccardo Pietrabissa, Politecnico di Milano, Italy (sub-section of Chapter 3 on university-industry knowledge transfers).

universities, research organisations and others. Their networks help them overcome some of the obstacles to innovation linked to their small size.

Universities are increasingly providing entrepreneurship training, and this book establishes core principles in this area. The efforts of vocational training institutions and schools are also central to meeting the challenge.

But entrepreneurship education is confined not to the classroom or formal structures for learning. Employees also acquire entrepreneurship skills through interactions with their co-workers, suppliers,

Professor Franco Malerba, Director of KITES (Centre on Knowledge, Internationalisation and Technology Studies), University of Bocconi, Italy Professor Jay Mitra, Director of the Centre for Entrepreneurship Research

, Essex Business school, University of Essex, United kingdom and Scientific Advisor on Entrepreneurship to the OECD Centre for Entrepreneurship, SMES and Local Development Professor Juan Roure, Professor of Entrepreneurship,

and Juan Luis Segurado, Senior Researcher on entrepreneurship and SME financing, at IESE Business school, University of Navarra, Barcelona, Spain Professor Luc Soete, Director of UNU-MERIT (the United nations

University Maastrict Economic and social Research and training centre on Innovation and Technology), Netherlands Karen Wilson, Senior Fellow at Kauffman Foundation and Director GV Partners, France Assistance in developing the Country Notes was provided by the following experts:

Petr Adamek, Bergman Group, Czech republic Rudy Aernoudt, Ghent University and Brussels University, Belgium Erma Aminullah, Indonesian Institute of Science, Indonesia Spyros Arvantis

Patries Boekholt, Technopolis, Netherlands Nadine Brown, Ministry of Economic Development, New zealand Maja Bucar, University of Ljubljana, Slovenia Giorgio Calcagnini, University of Urbino, Italy

Aruna Deo, University of Western Sydney, Australia Jo Doyle, Ministry of Economic Development New zealand Michael Eilan, Israel Business Information Services Consulting, Israel Sirin Elci, Technopolis, Turkey Ilario Favaretto, University of Urbino, Italy ACKNOWLEDGEMENTS SMES

, E 8 NTREPRENEURSHIP AND INNOVATION OECD 2010 Yacov Fisher, Israel Business Information Services Consulting, Israel Claudia Gonzalez Brambila, Mexican Autonomous Institute of technology

, Mexico Ebbe Graversen, University of Aarhus, Denmark Heike Grimm, University of Erfurt, Germany Berglind Hallgrímsdóttir, Innovation Centre Iceland, Iceland Jain Alain Heraud

, University of Strasbourg, France Can Huang, UNU-MERIT, Maastricht University, Netherlands Ron Immink, Bookbuzz and Driveforgrowth, Ireland Jurgen Janger, Austria National bank, Austria Jari

Kuusisto, Lappeenranta University of Technology Finland Leonardo Latelier, University of Chile, Chile Asa Lindholm Dahlstrand, University of Chalmers, Sweden Katrin Mannik, Technopolis, Estonia Jaan Masso, Tartu University

, Estonia Jay Mitra, University of Essex, United kingdom Alexey Prazdnichnykh, Bauman Innovation, Russia Alisdair Reid, Technopolis, Belgium Stephen Roper, University of Warwick, United kingdom

Juan carlos Scapini, Central University of Chile, Chile Vitor Simões, Technical University of Lisbon Portugal Karen Siune, University of Aarhus, Denmark Olav Spilling, NIFUSTEP Research

Institute for Innovation, Research and Education, Norway David Storey, University of Warwick, United kingdom Joonghae Suh, Korean Development Institute, Korea Annamária Szukics, Ministry for National

Development and the Economy Hungary Lena Tsipouri, University of Athens, Greece Arnold Verbeek, Ideaconsult, Belgium Charles Wessner, National Academy of Science, Technology, Entrepreneurship and Innovation, USA David

Wolfe, University of Toronto, Canada Lee Woolgar, National Graduate Institute for Policy Studies, Japan Martin Wörter, Swiss Economic Institute Federal Institute of technology (KOF-ETHZ.

Useful comments and contributions were received from Emma Clarence, Chiara Criscuolo, Andrea Hofer, Kiira Karkkainen, and Stephan Vincent-Lancrin of the OECD Secretariat.

Enzo Rullani, Venice International University, Italy; Prof. Andrea Piccaluga, Scuola Superiore Sant'Anna, Pisa, Italy and Prof.

Allan Gibb, University of Durham, United kingdom; Geoff Mulgan and Julie Caulier-Grice, The Young Foundation, United kingdom;

Bjorn Asheim, University of Lund, Sweden, and Prof. Helen Lawton-Smith, Birkbeck, University of London, United kingdom. The analysis and recommendations presented in this publication have been reviewed

and accepted by the delegates to the OECD's Working Party on SMES and Entrepreneurship and the Directing Committee of the Local Economic and Employment Development Programme.

otherwise remain un-commercialised in large firms, universities and research organisations. Small firms on average do not appear to be more innovative after allowing for their size,

For example, the Austrian programme Aplusb (Academia plus Business) financially supports centres at universities to foster academic spin-offs.

angel investment) promoting more and better technologybased start-ups (technostarters) in and around universities. These programmes can provide inspiration for policy development in other countries.

and with universities and research organisations. Collaboration is an important element in the strategies of innovative SMES to overcome some of the barriers they face,

i e. those where R&d intensity, basic university research and highly-skilled workers are most important. This is associated with important local knowledge spillovers in these sectors.

Higher education institutions are increasingly providing entrepreneurship education. This works best when entrepreneurship support is embedded within teaching,

Entrepreneurship is provided also increasingly in vocational education and training and schools. For example, apprenticeship programmes are good vehicles for developing entrepreneurship skills,

Shifts are also occurring in school curriculums aimed at fostering in students the ability and desire to act entrepreneurially.

Despite the general importance of vocational education and training (VET) to skills development in firms, enterprises with less than 50 employees provide significantly less employee training than larger firms.

and industry-specific networks that bring together public and private training providers (colleges, universities, etc.),employers, industry representatives, unions, labour market and training intermediaries (temporary work agencies and group training companies), local and regional government agencies,

Programmes should also be developed to promote corporate and university spinoffs with initiatives for proof-of-concept (i e. testing the technical and commercial viability of early-stage innovative ideas), pre-competitive research and seed funding.

Promote partnerships within innovation systems that involve large and small firms, universities and research institutes,

collaborative research opportunities, services for knowledge transfer (e g. innovation brokers, labour mobility schemes, programmes for the commercialisation of university research),

Involve SMES in interactive learning networks, for example through cluster programmes and programmes to encourage informal interpersonal interactions among entrepreneurs alongside more formal networks, for instance through shared space and facilities.

Encourage local universities and research institutes to be involved actively in a third mission of helping develop the locality in

Promote local labour mobility such as through university-industry staff exchange programmes. Use the concept of related variety to guide policy.

Options include support for attraction of students and researchers into higher education institutions; promoting cooperation between industry

and universities in training and hosting researchers; and making diaspora populations aware of local job vacancies.

Learning processes are at the core of entrepreneurship and SME innovation. Yet many emerging and potential business creators are lacking entrepreneurship skills such as in risk assessment,

Build up entrepreneurship education in universities and higher education institutions by smartly scaling-up, shifting the emphasis from business management to growth-oriented entrepreneurship,

introducing interactive teaching methods that incorporate practical experience and linking into wider networks including alumni networks and external economic development organisations.

Strengthen VET programmes for business founders, SME managers and SME workforces by changing the nature of vocational education

and training to better fit the needs and motivations of entrepreneurs, offering short duration Innovation Bootcamps for SME owner-managers such as weekend seminars and short online courses,

and increasing the flexibility of vocational education and training for SME workforces. Embed teaching of an entrepreneurship mindset in school curricula

and accompany this with relevant teacher training and teaching materials designed for entrepreneurship Reinforce training in SMES by launching in-company projects and increasing SME apprenticeships and developing the training function of small business support programmes,

such as for business succession, management and training and business counselling. Increase the use of informal learning sources,

by facilitating collaborations with firms and consultants providing knowledge-intensive service activities (KISA), for example using innovation vouchers for SMES.

Strengthen local skills ecosystems. Promote greater participation of SMES in local training programmes through the engagement of employers, unions and individuals.

Create integrated training strategies combining training located in higher education, vocational education and training and formal and informal training in SMES.

and include social entrepreneurship in school and university curricula. Introduce social clauses in public procurement procedures to encourage involvement of social enterprises in provision of social goods and services.

support learning across a community of innovators and establish clear pathways for scaling up the most promising models.

and interactive learning. Ensuring they reach their full potential requires a new innovation policy approach that facilitates entrepreneurship and SME innovation.

and incremental innovations, participating in interactive learning processes and working in different modes of innovation. The major policy implications are pulled then out.

Rather, innovation today tends to be carried out in collaborations among universities, research organisations customer, supplier and competitor firms and consumers, with costs and roles shared,

pervasive and generates an aggregate learning curve effect that increases the productivity of new knowledge investments.

Some of the ideas driving economic growth may be the result of scientific breakthroughs in large firms and universities,

and SMES that participate in knowledge transfer networks with universities, large firms and other players.

External ideas for innovation can come from many places from collaborations with universities and other firms or business angels, from labour mobility among firms and organisations and from informal social capital contacts.

universities and research organisations, requiring both innovation competencies and international connections. One of the ways of achieving this is through participating in globalised value chains and networks of innovation.

and inputs to ideas generation that are exploited by large firms, universities/research organisations and other small firms.

universities and research organisations. This type of knowledge spillover process is at the heart of the logic of endogenous growth theory, the lens through

Knowledge built up in universities, large firms and research organisations does not spill over automatically, however.

This largely occurs as individuals leave universities research organisations and large corporations to start enterprises based on knowledge they developed there in the form of spin-off companies,

alongside the more traditional patent and licensing routes and the publishing and teaching activities of universities.

In the USA, for example, the Bayh-Dole Act of 1980 increased incentives to universities to invest in the commercial exploitation of their knowledge by giving them control of the intellectual property arising from the federal government funded research they undertake.

the University of British columbia has a venture fund, the University of Guelph has raised money for commercialisation by listing its intellectual property portfolio on the stock market,

and a range of entrepreneurship boot camps, mentoring programmes, entrepreneurship resource centres and entrepreneurship courses for researchers have been introduced (Mcnaughton, 2008).

which seems to have one of the highest rates of university spin-offs, only two spin-offs were created per research institution per year.

Neither are university spin 1. INTRODUCTION SMES, ENTREPRENEURSHIP AND INNOVATION OECD 2010 35 offs high-growth firms on average,

While forefront research establishments like Oxford university in the UK, the University of Wisconsin, Madison, in the USA,

and the University of Waterloo in Canada are key drivers of entrepreneurship in their areas through spin-offs (84 spin-offs in Madison;

and an additional one-sixth are spin-offs from universities. They also appear to be increasing in frequency over time

The relationship may involve not just the role of new start-ups in exploiting knowledge themselves but also the role of new enterprises and SMES as participants in knowledge exchange networks within innovation systems, stimulating knowledge transfers from universities and other

Interactive learning One of the major developments in innovation in recent years is the increasing importance of networks.

This is interactive learning. SMES and start-ups are important participants in interactive learning networks both exploiting knowledge developed elsewhere

and contributing to knowledge development. Their role is documented by a substantial literature on SMES and inter-firm and universityindustry linkages (e g.

This framework examines the interactions among sets of organisations including firms, universities, venture capitalists and public agencies mediated by institutions that set the rules of the game,

such as intellectual property regulations and rules and norms influencing the relations between universities and firms.

which universities and research organisations are the central players, and the knowledge exploitation subsystem, in which new and small firms are key players along with larger firms.

The use of the innovation systems approach permits the identification of a range of potential policy problems or system failures affecting interactive learning (Potter, 2005.

For example, they may include lack of infrastructure for knowledge generation and transfer (e g. universities and science parks;

and lack of complementarity between the knowledge exploration and exploitation sub-systems (e g. lack of fit between university research

It is essentially a science-push approach in which R&d in universities and large firms is critical

and exploitation through knowledge-based spin-offs and high-technology collaborations between firms and universities and research institutes has an important role to play.

The DUI mode, on the other hand, is driven a user approach that relies on experiencedbased know-how and informal processes of adaptive learning.

Whereas the managed economy implied an innovation policy that could be focused on encouraging basic research in universities

Large-scale research subsidies to national champions, other large firms and basic-research silos in national universities and research organisations are not the most effective way to generate innovation in an environment where knowledge

For example, education systems, the media and business support organisations can help foster entrepreneurial motivations (Potter et al.

often exploiting new science developed in universities and research laboratories. They make up an important component of the high-employment-growth firm sector.

It suggests the need for DUI-mode policy support focused on a wider set of institutions affecting learning and innovation,

Examples of relevant policy approaches include creation of science parks and business incubators, encouraging mobility of staff between universities and industry,

and facilitating knowledge exploitation through licenses, patents and university and corporate spin-offs, and shared foresight and strategy development activities (OECD, 2004;

They may be imparted through school education, universities and vocational training colleges. Training in SMES is also very dependent on relationships with the public sector

Archibugi, D. and S. Iammarino (1997), The Policy Implications of the Globalisation of Innovation, University of Cambridge ESRC Centre for Business Research, Working Paper 75, ESRC Centre

University-Industry Linkages in Japan and the United states, MIT Press, Cambridge, MA. Callan, B. 2001), Generating Spin-offs:

and Profiting from Technology, Harvard Business school Press, Boston, Massachusetts. Chiarvesio, M.,E. Di Maria and S. Micelli (2010), Global Value Chains and Open Networks:

Factor Productivity and the Role of Entrepreneurship, Jena Economic Research Papers 2008-19, Friedrich Schiller University and the Max Planck Institute of Economics, Jena.

from National Systems and Mode 2 to a Triple Helix of University-Industry-Government Relation, Research Policy, Vol. 29, pp. 109 123.

Knight, F. 1921), Risk, Uncertainty and Profit, Chicago University Press, Chicago. Jensen, M.,B. Johnson, E. Lorenz and B. Lundvall (2007), Forms of Knowledge and Modes of Innovation, Research Policy, Vol. 36, No. 5, pp. 680-693.

Lindholm Dahlstrand, A. 2008), University Knowledge Transfer and the Role of Academic Spin-offs in J. Potter (ed.),Entrepreneurship and Higher education, Ch. 10, pp. 235-254, OECD, Paris. Lundvall, B. and S. Borràs (1997), The Globalising Learning Economy:

Implications for Innovation Policy, Report to the European commission, Directorate General Science, Research and development, Brussels. Malecki, E. 2008), Higher education, Knowledge Transfer Mechanisms and the Promotion of SME Innovation

, in J. Potter (ed.),Entrepreneurship and Higher education, OECD, Paris Ch. 9, pp. 213-234. Mansfield, E. 1995), Academic Research Underlying Industrial Innovations:

Sources, Characteristics, and Financing, The Review of Economics and Statistics, Vol. 77, No. 1, pp. 55-65.

Mcnaughton, R. 2008), Technology Commercialisation and Universities in Canada, in J. Potter (ed.),Entrepreneurship and Higher education, Ch. 11, pp. 255-234-269, OECD, Paris

Potter, J. ed.)(2008), Entrepreneurship and Higher education, OECD, Paris. Potter, J. and G. Miranda (eds.

Shane, S. 2004), Academic entrepreneurship. University Spinoffs and Wealth Creation, Edward Elgar: Cheltenham, UK. Stangler, D. and R. Litan (2009), Where Will the Jobs Come From?

Kauffman Foundation Research Series: Firm Formation and Economic growth Paper No. 1, Ewing Marion Kauffman Foundation, WASHINGTON DC.

Centres may also help organise placement of university researchers within SMES under the Researchers in Business initiative.

Aplusb The Aplusb programme (Academiaplusbusiness) financially supports institutionalised centres at universities to foster academic spin-offs.

awareness building for firm creation among university students and scientists; start-up coaching for 1. 5 years;

Centres are limited liability companies that must be owned partly by the corresponding university; other companies and venture capital funds can be co-owners.

Evaluators confirm good performance, even in international comparisons with university incubators. The programme is administered by the agency FFG (Austrian Research Promotion Agency.

30 40 50%Universities or HEI Suppliers Clients or customers Competitors Firms within the group Small Medium Large Small Medium Large Consultants,

Share of turnover due to new-tomarket product innovation 0 10 20 30 40 50 60%Universities or HEI Suppliers Clients or customers Competitors

and is delivered by a network of over 250 industrial technology advisors located in universities, community colleges and other technology transfer organisations across the country.

60%50 Universities or HEI Suppliers Clients or customers Competitors Firms within the group Small Medium Large Small Medium Large Consultants,

40 50%Universities or HEI Suppliers Clients or customers Competitors Firms within the group Small Medium Large Small Medium Large Consultants,

innovation Firms collaborating in innovation activities Firms with new-tomarket product innovations Share of turnover due to new to-market product innovations Universities or HEI Suppliers Clients

recruitment of researchers and Phd students and counselling in intellectual property. In the nineties ANVAR opened regional delegations,

which reports to the Ministry of Finance and the Ministry of Higher education and Research, has the responsibility of providing assistance and financial support to SMES in crucial stages of their development:

60 80%SMES Large Universities or HEI Suppliers Clients or customers Competitors Firms within the group Small Medium Large Small Medium Large Consultants,

It is designed specifically to improve the entrepreneurial environment at universities and research institutes and to increase the number of technology and knowledge-based company formations.

The first, Culture of Entrepreneurship, aims at promoting entrepreneurship among university employees and students. Projects at universities and non-university research institutes can apply for financial support in the form of a non-repayable grant over a three-year period.

In all three application rounds, 120 applications were submitted, of which 48 projects at 64 higher education institutions were approved.

The total amount of grants in the year 2008 was over EUR 39.8 million. The second pillar, Business Start-up Grants, supports the preparation of innovative business start-up projects at universities and research establishments.

It helps scientists university graduates and students to develop their business ideas into business plans and to advance their ideas for products and services.

The entrepreneurs receive a subsistence grant from EUR 800 to EUR 2 500 per month for a maximum period of 12 months;

30%Universities or HEI Suppliers Clients or customers Competitors Firms within the group Small Medium Large Small Medium Large Consultants,

), TECHNOCELLS (research-based technology parks and business incubators), Poles of Innovation (industry-university cooperative research), PRAXE (research spin-offs) and the Zone of Innovation framework programme.

As a whole, these programmes have provided incentives to both university and the private sector to work together,

which also include universities. SMES have to identify a problem that requires know-how or expertise supplied by the innovation agent.

40 50 60%Universities or HEI Suppliers Clients or customers Competitors Firms within the group Small Medium Large Small Medium Large Consultants,

and R&d activities implemented in close co-operation by enterprises, universities and research institutes. It also promotes the establishment of up-to-date research infrastructure and patent right procedures in certain high-priority areas.

50 60%Universities or HEI Suppliers Clients or customers Competitors Firms within the group Small Medium Large Medium Large Small Consultants,

SMES Large Share of turnover due to new-tomarket product innovations 0 10 20 30 40 50%Universities or HEI Suppliers Clients or customers

and the development of a fourth level in the higher education sector into an integrated framework,

next-generation localisation and sensor webs. ii) Technology Transfer Offices (TTOS) A fund of EUR 30 million has been made available to improve the knowledge flow between higher education and the enterprise sector.

services and food. iv) Innovation Vouchers The voucher initiative offers businesses with limited experience of R&d the chance to collaborate with any of the 22 higher education institutes,

It also stimulates the development of relationships between SMES and the higher education institutes, and ultimately the development of new products and services.

40 50%Universities or HEI Suppliers Clients or customers Competitors Firms within the group Small Medium Large Small Medium Large Consultants,

The projects will favour partnerships and synergies among universities, research centres, private companies, private investment equity, and local governments.

The intended participants of the calls for tender are companies, universities, public and private research units,

Firms collaborating in innovation activities Share of turnover due to new-tomarket product innovations3 0 10 20 30%Universities or HEI Suppliers Clients or customers Competitors

Most network initiatives focus on interaction between universities and industry or between different firms with similar competences;

a programme that aims to encourage spin-offs from universities and research institutes. In 2007, this programme was able to create 269 incubation centres throughout Korea,

30 40%Universities or HEI Suppliers Clients or customers Competitors Firms within the group Small Medium Large Small Medium Large Consultants,

Technology Packages, to support higher education institutions and public research centres in the integration of technology packages that are feasible to license or commercialise;

Offices of Technology Transfer, to boost the creation of such offices in higher education institutions and public research centres;

Business schools, to advance the entrepreneurship culture of the country through formal education; Strategic Alliances and Innovation Networks for Competitiveness, to support the collaboration of industry and academia for innovative projects;

through the creation of a better climate for entrepreneurs inside and outside universities. It is a generic and flexible programme,

The projects that receive funding are based regionally public-private partnerships consisting of (applied science) universities, incubators, innovation intermediaries, banks, companies and other actors.

which starters operate, particularly in the universities. 2. THE NETHERLANDS SMES, ENTREPRENEURSHIP AND INNOVATION OECD 2010 85 The netherlands A. Structural indicators on enterprise population, 2007 Number of enterprises Total employment

40 50 60%Universities or HEI Suppliers Clients or customers Competitors Firms within the group Small Medium Large Small Medium Large Consultants,

and hosting master's degree and Phd students. A portion of the fund is administered by a network of regional partners.

and for research scholarships enabling researchers to focus on commercialisation projects. In addition, FORNY has offered bonuses for successful completion of commercialisation projects.

The main target group of the programme is researchers working in universities, university colleges, research institutes and university hospitals.

However, rather than addressing the researchers directly, the main approach of the programme is to work through the local technology transfer offices.

%Universities or HEI Suppliers Clients or customers Competitors Firms within the group Small Medium Large Small Medium Large Consultants,

40 50 60%Universities or HEI Suppliers Clients or customers Competitors Firms within the group Small Medium Large Small Medium Large Consultants,

The demand side includes universities, incubators, development agencies and other regional partners, while the supply side comprises venture capital companies.

higher education and vocational training institutions) who are involved in the development of the sector and region. Collective Efficiency Strategies'formal recognition allows the submission of investment projects and respective action programmes,

30 40%Universities or HEI Suppliers Clients or customers Competitors Firms within the group Small Medium Large Small Medium Large Consultants,

50 60%Universities or HEI Suppliers Clients or customers Competitors Firms within the group Small Medium Large Small Medium Large Consultants,

Firms with new-tomarket product innovations Firms collaborating in innovation activities Share of turnover due to new-tomarket product innovations3 0 10 20 30%Universities

or HEI Suppliers Clients or customers Competitors Firms within the group Small Medium Large Small Medium Large Consultants,

most often in collaboration with other actors such as higher education institutions. For research projects the SME is supposed to contribute an equal sum itself.

89%of the firms have established new research collaboration (67%of these have established collaboration with higher education institutes

79%are employees with at least a master's degree in engineering); over 90%are planning the market introduction of a new product developed in the project;

Firms collaborating in innovation activities Share of turnover due to new-tomarket product innovations2, 3 0 10 20 30 40 50 60%Universities or HEI

and to inspire students for entrepreneurship. Services for students include semester courses to orient the students for entrepreneurship

and workshops where important tools for prospective entrepreneurs are taught. For existing start-ups Venturelab gives five-day intensive courses and advisory services.

During the past five years more than 10 200 students and start-up firms attended Venturelab courses (2 600 in 2008.

stimulate start-up of new technology-based firms among university students and graduates, and create new jobs.

It has been run together with universities since 1998. During a 66-hour course, students are assisted with developing their business ideas and business plans.

Financial support is provided to programme participants under the New Entrepreneur Support once they complete their business plans successfully

TEKMERS are established in co-operation with the technical universities and industrial chambers. As of 2009, there are 20 TEKMERS and 14 DTIS throughout the country.

The programme has been the major tool for start-up technology-based enterprises in Turkey and for improving university-industry co-operation.

For example, 70%of the tenants of METU-KOSGEB TEKMER the first TEKMER created by KOSGEB together with the Middle east Technical University (METU) in Ankara are new companies

and 69%of these companies are university spin-offs. This TEKMER hosted 161 enterprises between 1992 and 2009,

Between 2006 and 2009,206 eligible projects were funded among 519 project proposals from 65 universities. 2. TURKEY SMES

Share of turnover due to new-tomarket product innovations2 0 10 20 30%Universities or HEI Suppliers Clients or customers Competitors Firms within the group Small

which for the first time brought responsibility for UK universities and economic development into the same department. At a more operational level both enterprise and innovation policy are now increasingly being regionalised

including innovation voucher schemes and a range of measures to support increased commercialisation of university research.

which places recent graduates with a business for two years as part of a university-industry collaborative R&d programme.

activities 0 10 20 30 40%Universities or HEI Firms within the group Suppliers Clients or customers Competitors Small Medium Large SME Large Consultants,

and Technology (NIST) was established in 2007 to assist U s. businesses and institutions of higher education or other organisations,

Under the Technology Innovation Programme, universities now can lead a joint venture when teamed up with at least one small or medium-sized for-profit company,

Universities may also participate as a contractor within any TIP award. Funding is available for single company projects of up to USD 3 million over a maximum of three years,

strategic partnership between universities or technological institutes and enterprises; technology-based entrepreneurship; incubators and technological parks;

This supports universities and research centres in developing pro-innovation research at an early stage.

university science parks, incubators and software parks across China. At the national level alone, by 2008 53 high-technology development zones, 62 university science parks, about 200 business incubators and 35 software parks had been developed through governmental support.

In the period 1992-2005, the revenue, industrial value added and profit of the enterprises operating in the 53 development zones grew at an average annual rate of 47.0%,30.5%and 38.2%,respectively.

The Torch Programme played an indispensable role in promoting entrepreneurship and start-up companies through its administrative arm and the university science parks and incubators.

-tomarket product innovations Share of turnover due to new-tomarket product innovations 0 10 20 30 40 50%Universities or HEI Suppliers Clients

i e. universities and research institutions, IPR centres, and businesses. These intermediary institutions provide integrated services in the areas of technology, human resource capacity building, business network development,

the private sector has invested over USD 2. 5 billion in incubator graduates. Potential entrepreneurs first have to be accepted by the incubator

to conduct R&d necessary for using licences obtained from Russian universities and research institutions; or to carry out innovative projects realised with the support of Russian universities.

The Foundation has invited about 4 000 Russian scientists in various spheres to work as experts.

http://www. oecd. org/dataoecd/59/53/46211243. pdf 2. SLOVENIA SMES, E 124 NTREPRENEURSHIP AND INNOVATION OECD 2010 Slovenia The Ministry of Higher education

and out by TIA, the Ministry of Higher education, Science and Technology, Ministry of Economy and Ministry of Defence are participating by contributing through their own resources.

-tomarket product innovations Share of turnover due to new-tomarket product innovations 0 10 20 30 40 50 60 70 80%Universities

or HEI Suppliers Clients or customers Competitors Firms within the group Small Medium Large Small Medium Large Consultants,

Firms and the Technology and Human resources for Industry Programme invest jointly in research projects where project leaders are on the academic staff of South african higher education institutions.

and to foster collaboration among industry, HEIS and science, engineering and technology institutions. Graduates from the programme often end up employed in the industry they worked with,

as a result of the working relationships developed during the programme. The first allocations of programme funds were made in 1994.

the majority of these transfers of expertise and student placements occurred with MSMES partners in 2007/08.

funding is released to HEIS and science, engineering and technology institutions. During 2007/08, 265 MSMES participated in projects as industry partners (66.8%of all participating firms)

and market success. Postentry learning about one's own efficiency also matters (Jovanovic, 1989), but there is a knowledge barrier in every industry

Company and university spin-offs are prominent examples of the role of knowledge in the entrepreneurial process.

On the other hand, university spin-offs are synonymous with knowledge-based organisations, although they may lack the market knowledge to understand the commercialisation potential of an invention

post-entry performance is affected primarily by individual smartness and the family's level of education. With regard to innovation potential, Cantner, Goethner and Meder (2007) find that pre-entry technical knowledge 3. KNOWLEDGE FLOWS SMES,

but rather in collaboration with other organisations, including enterprises (e g. suppliers and customers), universities, research organisations, etc.

Another instance consists in learning failures, which take place when local firms have not developed enough absorptive 3. KNOWLEDGE FLOWS SMES,

and other mechanisms, including interactive learning among different organisations involved in the innovation process (e g. customersupplier relations, industry-university collaborative research,

technology networks linking university faculty to exploitation partners, etc.).) 6. Creation and change of institutions that influence innovation actors and processes by providing incentives or obstacles to innovation (e g.

9. Provision of technology-oriented consultancy services (e g. technology transfer, university-based technology centres assessing commercialisation opportunities, etc..

and that the level of patenting is correlated strongly with GDP per capita, with students in higher education and with employment in high-tech industries.

or the share of university R&d funded by local private sources. That goes beyond the scope of this chapter

but other studies show that the efficiency of local innovation systems is related, inter alia, to indicators of knowledge flows such as the level of external funding for university research, the presence of intermediary technology organisations,

The success of these clusters in entrepreneurship and innovation has in large part stemmed from strong local knowledge generation, diffusion and absorption capacities in the form of leading universities and research organisations, strong concentrations

basic university research and highly-skilled workers are most important. For example, in the United states, knowledge-driven industries such as semiconductors, process

University-industry knowledge transfers In knowledge-and technology-intensive sectors, relationships with universities and other public research organisations take on growing importance for innovation in SMES.

This has led to the emergence and growth of university-based knowledge transfer offices (KTOS), which take responsibility for the whole process of identification, protection, valorisation and transfer to industry of university innovations.

Despite the increasing importance of university-industry knowledge transfers and of public schemes that try to bolster such transfers, it is difficult to produce reliable and comparable data on this phenomenon.

Patents and numbers of spin-off companies are relatively easy to count but the way research agreements, invention disclosures or licensing income are accounted differ widely across countries.

The survey is biased towards universities and public research organisations that are part of the network but also attempts to cover nonmembers.

In the United states, the Association of University Technology Managers (AUTM) has undertaken similar surveys since the early 1990s.

With regard to output indicators, innovation disclosures are much higher in US universities (102.7 per university) than in Europe (20.2)

Another, more questionable argument is that European universities are more reluctant to apply for patents for which they do not perceive a concrete licensing opportunity.

Finally, data on university spin-offs in the two different contexts diverge much more slightly, with nearly 2 spin-offs per KTO a year in Europe and nearly 3 in the United states. University-industry knowledge transfers are also of increasing importance in Asia;

Box 3. 2 provides a snapshot of recent trends in China, Japan, and Korea. Knowledge transfers concern not only industry and universities but also government organisations, financial bodies and intermediary institutions that play a supporting function.

Table 3. 6 gives an overview of the role and responsibilities of the different actors within an innovation system in the process of knowledge transfer.

The following graphs cast light on international knowledge flows by presenting information Box 3. 2. University-industry knowledge transfer in Asia In China,

university-industry knowledge transfer is a recent topic, but it has captured increasing attention. In 2002, a law along the lines of the US Bayh-Dole Act was enacted that enables universities to manage their own IPR,

have equity investments in new firms, and commercialise R&d results. The establishment of KTOS has also been encouraged,

with universities being given considerable freedom in the way they can run these centres. Data, however, show that knowledge transfer is still incipient in China.

Universities have a great number of patents (126 per KTO), but only 1. 6 of them are international.

a large proportion of university inventions are passed directly to companies through joint research agreements. This poses a challenge to the fairness of a system in which large companies disproportionally benefit from publicly funded research and in which start-up opportunities are diminished accordingly (Kneller, 2007.

which universities may choose to own IPRS and are asked to set up KTOS, while researchers have to be compensated up to 50%of the licensing revenues from their successful commercialised inventions.

Finance Fund industry and university research; support university entrepreneurship. Participate in transfer activities; identify criteria for risk sharing;

support investments in R&d. New financial services for R&d; investments in technology-based start-ups; appropriate evaluation of research intangibles.

levels of R&d, enrolments in graduate programmes and the potential creation of growth-oriented businesses by immigrants.

So, academics and researchers will look particularly at the quality of universities and research laboratories, as well as at the overall research support system,

and university spin-offs, rely on market and technological knowledge acquired in their source organisations for their success. The innovation system concept is helpful in understanding how policy can promote innovative entrepreneurship

and in particular with the lack of connection that often characterises the relationship between the knowledge exploration (universities, research organisations, etc.)

With this objective, policy may seek to increase the motivations of universities and research organisations to transfer knowledge to other national

and technology brokers and binding parts of the funding of universities and research organisations to the undertaking of local knowledge transfer functions.

and competences of the knowledge explorers and the knowledge exploiters in the system by better aligning the specialisms of universities and research organisations with the specialisms of firms.

and shared competences since interactive learning across related sectors is more likely to lead to important or breakthrough innovations, in the sense of combining existing knowledge in new ways.

Promote corporate and university spin-offs as high-potential knowledge-intensive businesses. Spin-offs, both corporate and university-based, are an important target for promotion efforts

because the internal technology and market competencies they carry from their sources in universities and other firms make them more likely to grow faster than the average start-up.

Programmes for corporate spin-offs should aim to diversify the customer base of these firms which often run the risk of being trapped in a oneway relationship with the parent company.

As to university spin-offs, the gap between technological invention and commercial innovation should be bridged through proof-of-concept support for testing the technical and commercial viability of early-stage innovative ideas,

which supports university centres with the mission of launching academic spin-offs. The programme raises awareness about business creation among students and faculty;

provides coaching about business planning to those interested in the start-up process; and gives office space

Interactive learning networks boost SME innovation and need to be stimulated. Interactive learning networks will encourage innovation,

especially for small-sized firms that lack assets and resources to invest in R&d. Cluster programmes continue to receive much attention from national and local policy makers in light of the importance of agglomeration economies and of helping firms to link up with each other and with research organisations at the local level.

China's Torch programme represents one of the most comprehensive collective learning policies implemented by a national government.

In 20 years of operation, this programme has supported 53 high-tech development zones, 62 university science parks,

Universities need to be involved actively in the innovation system. Local universities and research institutes need to be involved actively in knowledge flows

and so be given the opportunity to unfold their third mission to contribute to the development of their region (OECD, 2007c;

Universities and 3. KNOWLEDGE FLOWS SMES, E 154 NTREPRENEURSHIP AND INNOVATION OECD 2010 other research institutes can foster entrepreneurship by generating and diffusing innovations and supplying highly skilled

and higher education institutions can play an important supporting function through the transfer of knowledge. Collaborative research programmes that focus on pre-competitive research

and put together university and company researchers are an option. Technology-bridging institutions can also be useful

and facilitate technology transfer by strengthening the industry-university link. In Australia, for instance, Enterprise Connect is a programme that runs six manufacturing network centres and five innovation centres.

since lack of motivation and capacities on the part of SMES often proves to be the most important barrier to industry-university collaboration.

University-industry staff exchange programmes should also be considered, although rigid university employment practices and the very university incentive structure (e g. the pressure to publish on peer review journals) can render this specific type of labour mobility difficult.

Promote cross-fertilising technologies with multiple industrial applications. Considering that every technology implies several possible entrepreneurial opportunities

though they require a strong knowledge base at the university level. Related variety should also be taken into consideration in attempting to diversify into new growth areas based on new combinations of existing sectoral and technological strengths.

A New Perspective on Learning and Innovation, Administrative Science Quarterly, Vol. 35, No. 1, pp. 128-152.

Kneller, R. 2007), Japan's New Technology Transfer System and the Preemption of University Discoveries by Sponsored Research and Co-inventorship, Industry and Higher education, Vol. 21, No. 3. Florida

Towards a Theory of Innovation and Interactive Learning, Pinter, London. 3. KNOWLEDGE FLOWS SMES, ENTREPRENEURSHIP AND INNOVATION OECD 2010 157 Malerba, F. 2002), Sectoral Systems

OECD, Paris. OECD (2007c), Higher education and Regions: Globally Competitive, Locally Engaged, OECD, Paris. OECD (2008a), Enhancing the Role of SMES in Global Value Chains, OECD,

A Microeconomic Perspective, OECD, Paris. OECD (2009b), Entrepreneurship and the Innovative System of the Agder Region, Norway, OECD, Paris. OECD (2009c), Universities, Entrepreneurship and Innovation, internal

What Governments Can Do to Make a Difference, OECD, Paris. Potter, J. ed.)(2008), Entrepreneurship and Higher education, OECD, Paris. Potter,

2009), Clusters, Innovation and Entrepreneurship, OECD, Paris. Piccaluga, A. and R. Pietrabissa (2009), International Dynamics of University-Industry Knowledge Transfer paper presented at the OECD Conference SMES, Entrepreneurship

or a rich and efficient infrastructure endowment, that is to say, driven by sharing rather than learning agglomeration economies.

E 164 NTREPRENEURSHIP AND INNOVATION OECD 2010 The importance of entrepreneurship skills for SMES and start-ups Learning processes are at the core of entrepreneurship and SME development.

It is built on cumulative learning and preparedness (Gibb Dyer, 1993; Gibb 2002,2009), and this comes from entrepreneurship skills.

How is the necessary learning and preparedness acquired? How can entrepreneurship skills be fostered through government intervention?

Training for this skill is, first of all, not usually part of a formal education curriculum. Second, such skill is brought not usually out in the industry training 4. ENTREPRENEURSHIP SKILLS SMES, ENTREPRENEURSHIP AND INNOVATION OECD 2010 165 system.

BASIC SKILLS Generic General IT user skills, oral communication, written communication, numeracy and literacy, office administration skills.

Entrepreneurship skills are understood best in relation to lifelong learning, where the individual acquires skills through their life history.

In formal education, entrepreneurship training can be provided at different levels, from primary and secondary schools, to vocational colleges and tertiary and university education.

The aim is to foster more positive attitudes to this career road that students may carry with them into their later careers,

Entrepreneurship teaching in higher education also seeks to do this but may in addition seek to impart more technical-related skills such as in management and business planning.

However, it is argued often that the working environment rather than formal education is where entrepreneurs learn the most.

This section therefore explores entrepreneurship skills provision both in the formal education system (focusing on higher education,

vocational education and schools) and in work environments (focusing on informal entrepreneurship learning at work through the involvement of workers in knowledge-intensive service activities

Universities and higher education institutions Entrepreneurship teaching OECD work shows that third-level (higher education) entrepreneurship teaching activities are increasing (Potter, 2008.

Now, however, it is a rapidly evolving field with emerging new approaches that meet increased demand from students and the need for tailored teaching.

More universities, faculties and students are becoming involved and the variety of content and pedagogies is increasing.

with North american universities leading the way in introducing and refining approaches. Survey work reported in Solomon (2008) examined the types of entrepreneurship teaching offered in the United states. This showed that the most common courses in the broad field of entrepreneurship were in entrepreneurship

In order, the most common methods of teaching methods were business plans, discussions, guest speakers, case studies and lectures by business owners.

with approximately one-third of colleges and universities having an entrepreneurship centre, and one-third having an entrepreneurship professor or chair.

Management of entrepreneurship courses tended to be housed in existing academic departments (41%)or business schools (31%;%although entrepreneurship centres or departments of small business and entrepreneurship were managing 23%of entrepreneurship courses.

Research comparing entrepreneurship education across universities from the United states, Canada and Denmark suggests that entrepreneurship education provision in US universities is advanced relatively (Hoffman et al.

2008). ) Entrepreneurship education was compared among selected universities in the three countries, on five important dimensions of teaching activities:

educational scope (the breadth of programmes offered, how courses are spread across undergraduate and postgraduate levels, etc.);

educational setup (the extent to which guest lecturers, practical experiences, private businesses, and experimental teaching activities are involved, etc.);

institutional characteristics (interaction between faculties, prioritisation of entrepreneurship, allocation of funding, incentives to students and teachers, etc.;

outreach (scope of university networks co-operation with incubators, alumni networks, access to experienced practitioners, access to venture capital) and evaluation (degree of monitoring and assessment of entrepreneurship activities.

the US universities were strongest on these five dimensions, although Canada performed equally well in terms of educational scope and outreach.

The Danish universities were weaker on all dimensions. For example, at Stanford university and Cornell University in the United states, student participation in entrepreneurship programmes was 15%and 20%respectively.

In comparison, the participation rate at the Canadian universities was between 5%and 7, %while none of the Danish universities reported participation rates above 2. 5%.Despite the rapid growth in entrepreneurship teaching in higher education, there are a number of issues that need to be addressed in adapting universities to the needs of a more entrepreneurial economy (Potter,

2008). ) Two major issues are scaling up provision in order to offer courses to a larger number of students,

and shifting towards more interactive and experiential teaching methods in the entrepreneurship domain. In terms of provision, while many universities now offer entrepreneurship teaching, the numbers of students participating remains a small share.

This is associated with two barriers. Firstly, entrepreneurship teaching is confined often to certain departments and centres, in particular business and engineering schools and new university centres of entrepreneurship,

whereas potential entrepreneurs come from a wide variety of disciplines. Secondly, entrepreneurship teaching is often not well rewarded

either for students or for staff. Courses are offered often to students as optional complementary modules with no credits for their degrees.

Teachers are pressed hard to deliver on their core programmes the basis for recruitment and promotion and those not working on core activities can find it difficult to justify strong investments in what may be seen by their hierarchies and peers as side projects, whatever the expressed interest of the students.

Teaching approaches must also evolve to accommodate how entrepreneurship skills are learned best rather than be tethered to traditional classroom forms.

Many interactive reality-based and experiential approaches have been developed, including virtual and real business creations, business plan competitions, strategy games and discussions with entrepreneurs.

These methods are placed better than classroom lectures to develop 4. ENTREPRENEURSHIP SKILLS SMES, ENTREPRENEURSHIP AND INNOVATION OECD 2010 169 entrepreneurial behaviours.

The use of these methods can be promoted by greater networking among universities and faculties. Inappropriate constraints to the participation of entrepreneurs in entrepreneurship teaching programmes are another challenge.

Entrepreneurship support frameworks A recent OECD study in eastern Germany revealed that higher education institutions in the six eastern German regions (länder) are engaged actively in supporting entrepreneurship not just through entrepreneurship teaching but also through support for enterprise

start-ups by students and staff. Indeed entrepreneurship teaching can have a greater positive impact on the rate of new firm creation

if closely linked to start-up support. The eastern German universities either use government schemes, private sector funding

or a combination of both to sustain and expand this aspect of their third mission.

Half of them have or are about to establish an entrepreneurship chair or a professorship.

the majority of the universities provide direct support to start-up: mentoring, grants, incubation facilities. A clear strength to build on is the presence of people teachers, researchers,

and university staff with a clear interest in entrepreneurship support. All of these developments demonstrate the importance given to the creation of new growth potential ventures out of universities.

The study identified the important role of public policy in initiating and enhancing entrepreneurship support in universities across the following six areas.

Strategy: There is clear role for public policy in opening up universities towards their third mission,

which ideally should be part of their key missions research and teaching. Clear incentives and rewards are needed for professors,

researchers and students to engage. Public policy can facilitate their introduction by adding entrepreneurship support to the list of performance criteria on

which universities are assessed. Resources: Public kickoff funding for entrepreneurship support infrastructure is common to many OECD countries.

Yet, it is the balance between a minimum long-term financing for staff costs and overheads and the openness to private sector involvement in the financing of entrepreneurship chairs and incubation facilities

Universities will need to find their place in existing start-up and entrepreneurship support systems. Networking and incentives for clear referral systems can be useful to increase the effectiveness

The exchange of good practice in creative teaching methods allows for improvement and innovation. Universities need to have a genuine interest in such exchange,

but public policy can facilitate the creation of platforms, publications, teaching material, etc. Another important area for public policy intervention is curricula development and the integration of entrepreneurship courses, such as creativity classes.

A key success factor for university entrepreneurship support lies in private sector collaboration. Universities can create a protected environment for nascent entrepreneurship.

This can be an important stimulus for students and researchers to make a first step towards the creation of a venture.

Yet, in order to avoid over protection, early exposure to market conditions is advisable. 4. ENTREPRENEURSHIP SKILLS SMES, E 170 NTREPRENEURSHIP AND INNOVATION OECD 2010 Evaluation:

Public policy organisations and universities will need to work hand in hand in developing a monitoring and evaluation system

which demonstrates the socioeconomic impact of university entrepreneurship support and reveals needs for changes. The work has developed also a criteria list of good practice across the six dimensions from an assessment of existing literature and case studies of university entrepreneurship support.

Policy makers and university management can use these criteria to self-assess and reorient their current approaches (Box 4. 2). Box 4. 2. Entrepreneurship support in universities:

Criteria for good practice Strategy 1. A broad understanding of entrepreneurship is a strategic objective of the university,

and there is top-down support for it. 2. Objectives of entrepreneurship education and start-up support include generating entrepreneurial attitudes, behaviour and skills,

as well as enhancing growth entrepreneurship (both high-tech and low-tech). 3. There are clear incentives and rewards for entrepreneurship educators, professors and researchers,

who actively support graduate entrepreneurship (mentoring, sharing of research results, etc.).4. Recruitment and career development of academic staff take into account entrepreneurial attitudes,

Resources 1. A minimum long-term financing of staff costs and overheads for graduate entrepreneurship is agreed as part of the university's budget. 2. Self-sufficiency of university internal entrepreneurship support is a goal. 3

Support infrastructure 1. An entrepreneurship-dedicated structure within the university (chair, department, support centre) is in place,

and ensures viable cross-faculty collaboration. 2. Facilities for business incubation either exist on the campus

and referral between university-internal and external business start-up and entrepreneurship support organisations; roles are defined clearly.

and the use of entrepreneurial pedagogies is advocated across faculties. 2. The entrepreneurship education offer is communicated widely,

which uses creative teaching methods and is tailored to the needs of undergraduate, graduate and postgraduate students. 4. ENTREPRENEURSHIP SKILLS SMES,

ENTREPRENEURSHIP AND INNOVATION OECD 2010 171 Vocational education and training Vocational education and training (VET) is a type of task-oriented technical education widely used to prepare future self-employed entrepreneurs and SME employees.

Vocational training colleges have had traditionally a craft focus. Many of the craft occupations are pursued in practice by the self-employed

and people working in micro businesses, for example plumbers, painters, electricians and information technology specialists. Other people go on to work in larger SMES

and may benefit from training provided before employment or in lifelong learning activities whilst in employment.

In addition to courses entirely taught in vocational education institutions, an important element of the system is apprenticeships,

Apprenticeships combine classroom teaching, often in vocational training institutions with on-the-job training. In France, for example, since 1925 firms have been obliged to pay an apprenticeship tax (0. 5%of the payroll), up to 40

As a third example, Box 4. 2. Entrepreneurship support in universities: Criteria for good practice (cont.

Start-up support 1. Entrepreneurship education activities and start-up support are integrated closely. 2. Team building is facilitated actively by university staff. 3. Access to private financing is facilitated through networking

and dedicated events. 4. Mentoring by professors and entrepreneurs is offered. 5. Entrepreneurship support in universities is integrated closely into external business support partnerships and networks,

and includes immediate (postcourse), mid-term (graduation), and long-term (alumni and post-start-up) monitoring of the impact. 4. ENTREPRENEURSHIP SKILLS SMES,

However, improving entrepreneurship skills in SMES through vocational education and training is challenging due to obstacles to SMES in accessing formal training.

Gibb (2009) argues that a distinction must be made between manager development as traditionally exercised by vocational training colleges a teaching de-contextualised from developing the individual and management development,

Meeting the challenge of providing more relevant entrepreneurship teaching in vocational education therefore requires changes in programmes

venture capital finance, product life cycles and so on. 4. ENTREPRENEURSHIP SKILLS SMES, ENTREPRENEURSHIP AND INNOVATION OECD 2010 173 And more experiential learning methods should be developed for example drawing on the entrepreneurship skills created in drama,

The literature also offers some suggestions about how vocational education and training needs to be adapted to better meet the needs of SME workforces.

In addition, there should be transparency and clarity of objectives and information to both employers and employees and provision of standardised accreditation.

It is also based on the view that students who receive entrepreneurship education as part of their schooling show improved school attendance

) Hence the goal is not to get all students to start their own businesses, but to give young people the ability to think positively,

Ensure that the importance of entrepreneurship is reflected in teacher training. Step up co-operation with the business community for entrepreneurship education at all levels.

developing teaching methods appropriate to the subject (such as virtual business creation games) and drawing on entrepreneurs in the business community as resources for teaching.

and implemented policies to ensure that school students receive it (Cooney, 2009). In Finland for example, entrepreneurship education is a thematic entity, not a subject.

In 2004 the Finnish Ministry of Education produced an Action Plan for Entrepreneurship Education that covered all levels of the education system,

and Industry appointed a working group entitled From Higher education Institutes to Entrepreneur. The Ministry of Education also appointed an Entrepreneurship Steering Group to ensure that the agreed programme of action was implemented properly.

and competences in students related to entrepreneurial activities, strengthen young people's belief in and capabilities of their own creative forces,

details the actions that needed to be taken by the Scottish government to embed entrepreneurship into the national schooling system.

working in partnership with key players including the business community, HM Inspectorate of Education, Learning and Teaching Scotland, Careers Scotland and the Scottish Qualifications Authority.

which keep parents informed of how they can support their child's learning. A report by HM Inspectorate of Education (2007) highlighted the four capacities that are being developed through the strategy

1) Successful learners are skilled in generic processes and activities such as core skills; appreciate the relevance of what they are learning;

can use experiences in enterprise to reflect on other learning and make connections; are self-motivating

and accept setbacks as learning experiences; 4. ENTREPRENEURSHIP SKILLS SMES, ENTREPRENEURSHIP AND INNOVATION OECD 2010 175 Box 4. 3. Scotland's Determined to Succeed entrepreneurship education strategy (cont.

can generate and act upon original ideas; understand transitions throughout life and the importance of making connections between past, present and future experiences.

In examining the different entrepreneurship education policies currently being pursued by different governments, it can be argued that the Scottish strategy is among the clearest in terms of

which entrepreneurship has been included as a key competence in national curricula for secondary education in various European countries in line with the Oslo Agenda for Entrepreneurship Education in Europe (European commission, 2007).

or potential team leaders and project management and foreign language language training (Markowitsch and Hefler, 2007).

The result is that employees of small and micro firms can miss out on any type of training beyond day-to-day informal learning on the job.

Such an emphasis on employee-driven learning and trial-and-error behaviour can obviously be detrimental to both the firm and the employee. 4. ENTREPRENEURSHIP SKILLS SMES

KISAS and learning at work Learning at work or learning by doing in SMES can also be stimulated by activities with a high knowledge component,

for example to improve work processes (such as quality control, marketing and product development) with SME employees learning from or together with their co-workers.

Indeed, KISA activities could also be understood as informal learning resulting from activities related to work that are organised not in terms of learning objectives,

learning time or learning support (CEDEFOP, 2008b). Can KISAS be associated with formal or informal training on the job?

Formal learning is intentional from the learner's point of view; it typically leads to validation and certification.

or structured in terms of objectives, time or learning support. Informal learning is in most cases unintentional from the learner's perspective (CEDEFOP, 2008b.

KISAS can be placed within the informal training category although it includes a greater component of knowledge intensity and interactive skills. 4. ENTREPRENEURSHIP SKILLS SMES,

there is no accreditation or contrasted evaluation, and little is known of their effects and impact on skills upgrading and employability of the labour force.

and the investment activity of local governments in private sector development, for instance through smart infrastructure such as HEI networked business incubators,

A recent study by Itkonen (2009) of a Finnish entrepreneur training programme to facilitate business succession found that a combination of theoretical knowledge acquired formally in the classroom via VET providers

SME management training According to a European commission document on management capacity-building policies for SMES, a common issue throughout Europe is that an overwhelming majority of SMES do not have structured training schemes for managers.

There is also evidence linking lack of management skills to SME failure (Dawe and Nguyen, 2007) and of a relationship between management training and better overall performance of the firm (OECD, 2002.

For these reasons a series of programmes and initiatives are directed to management training in SMES, which is defined as group-taught formal learning,

external to the firm, provided for owners and managers of independent enterprises with 250 employees or fewer,

Effective management training initiatives for small firms usually involve critical self evaluation; sharing of experiences that provide an opportunity to achieve business insights by learning from others in similar positions;

and solving business challenges using experienced mentors. Business counselling Counselling is a one-to-one service tailored to the specific requirements of the individual firm.

Local skills ecosystems The competitiveness of firms also depends on the learning infrastructure available in the community where the firm is embedded

This learning infrastructure includes training institutions and organisations in the local community. Small firms must rely on training skills available locally, on the way the ecosystem upgrades these skills,

and industry-specific networks that bring together public and private training providers (including colleges and universities),

Policy recommendations Build up entrepreneurship education in universities and higher education institutions. Scale up, smartly. Increase the number of entrepreneurship courses

and participating students where there is evidence of success. Make sure that the entrepreneurship teaching fulfils high quality standards

Introduce interactive teaching methods that incorporate practical experience. Encourage learning by doing in contrast to more traditional forms of academic learning.

Introduce cross-functional problem-solving approaches that replicate the bundle of activities and functions that need to be applied in entrepreneurship situations, rather than breaking up teaching into separate business functions as in traditional management courses.

Expose students to entrepreneur role models, for example by using entrepreneurs as mentors, speakers and interview subjects.

Provide students with opportunities to work in existing SMES and to add value to these firms through Box 4. 4. Formaper Formaper,

Adult learning and links with the labour market. Regional development, including capacity building for Business Support Providers (BSPS) and SME development agency staff.

Develop case studies tailored to the environment that students will face. Link into wider networks. Tap into the resources of alumni networks to help fund and support entrepreneurship programmes

Change the nature of vocational education and training to better fit the needs and motivations of entrepreneurs:

develop more experiential learning methods. Offer short duration innovation bootcamps for SME owner-managers such as weekend seminars and short online courses.

Increase the flexibility of vocational education and training for SME workforces. Target both workers and enterprises;

limit administrative burdens; increase transparency and clarity of objectives and information to employers and employees;

give standardised accreditation. Embed an entrepreneurship mindset through the school education system. Develop the training function of small business support programmes including programmes for business succession,

SME management training and business counselling. Include entrepreneurship activities in school curricula; develop interactive materials and activities and involve entrepreneurs and businesses;

provide training, incentives and support to teachers involved in entrepreneurship activities. Reinforce training in SMES Use these

offer foreign language training; broaden the focus of entrepreneurship skills development projects to encompass all occupations and not just management;

Increase the use of informal learning sources. Tap into knowledge-intensive service activities (KISA) processes to increase the entrepreneurship skills acquisition of SME workforces.

such as in programme design and management. 4. ENTREPRENEURSHIP SKILLS SMES, ENTREPRENEURSHIP AND INNOVATION OECD 2010 183 Create integrated training strategies combining training located in higher education, vocational education and training,

2005), Policy Instruments to Foster Training of the Employed, Final Report, Lifelong Learning Volume 1, Main Report EIM-SEOR, Rotterdam.

A Systematic Review of Research, National Centre for Vocational education Research (NCVR), May 2007, Adelaide. European commission (2006), Management Capacity Building, Enterprise and Industry Directorate-General, Brussels. European commission (2007), Assessment of Compliance with the Entrepreneurship Education Objective in the Context of the 2006 Spring

Council Conclusions, Directorate General for Enterprise and Industry, Brussels. Gibb, A. 2002), In Pursuit of a New‘Enterprise'and‘Entrepreneurship'Paradigm for Learning:

Gibb, A. 2009), The Small Business and Entrepreneurship Challenge to Vocational education: Revolution or Evolution? Paper presented at the OECD Conference on SMES, Entrepreneurship and Innovation, Udine, Italy, 22-23 october 2009, OECD LEED Programme, Paris. Gibb Dyer, W. Jr.

Hoffman, A n. Vibholt, M. Larsen and M. Moffet (2008), Benchmarking Entrepreneurship Education across US, Canadian and Danish Universities, in J. Potter (ed.),Entrepreneurship and Higher education, OECD

Itkonen, K. 2009), Developing Entrepreneurship in Small Enterprises The Succession Process Supported by Apprenticeship Training as a Context for Learning in M.-L. Stenström and P. Tynjälä (eds.

Towards Integration of Work and Learning: Strategies for Connectivity and Transformation, Springer, United kingdom, pp. 153-170.

NTREPRENEURSHIP AND INNOVATION OECD 2010 Martinez-Fernandez, C. 2005), Knowledge Intensive Service Activities (KISA) in Innovation of Mining Technology Services in Australia, University of Western

Responses to Globalisation, University of Western Sydney and Liverpool City council, UWS, Sydney. Martinez-Fernandez, C. and S. Sharpe (2007), Ways to Grow in South West Sydney, University of Western Sydney and Liverpool City council, UWS, Sydney.

Martinez-Fernandez, C.,C. Soosay, V. V. Krishna, T. Turpin, M. Bjorkli and K. Doloswala (2005a), Knowledge Intensive Service Activities (KISA

) in Innovation of the Tourism Industry in Australia, University of Western Sydney, Sydney. Martinez-Fernandez, C.,C. Soosay, V. V. Krishna, T. Turpin, M. Bjorkli (2005b), Knowledge Intensive Service Activities (KISA) in Innovation of the Software

University of Western Sydney, Sydney. Martinez-Fernandez, C. and S. Sharpe (2007), Ways to Grow in South West Sydney, University of Western Sydney and Liverpool City council, UWS, Sydney.

Miles, I.,B. Jones, T. Dunnewijk, H. Meijers, A. van Zon and B. Kotteik (2008), Innovation in the European Service Economy Scenarios and Implications for Skills and Knowledge

, ETEPS AISBL, Brussels. Minniti, M. and W. Byrgave (2001), A Dynamic Model of Entrepreneurial Learning, Entrepreneurship Theory and Practice, Vol. 25, No. 3, pp. 5-16.

OECD (2002), Management training in SMES, OECD, Paris. OECD (2003), OECD Employment Outlook, OECD, Paris. OECD (2005), SME and Entrepreneurship Outlook, OECD, Paris

Paris. OECD (2010a, forthcoming), Leveraging Training and Skills Development in SMES, OECD, Paris. Potter, J. ed.)(2008), Entrepreneurship and Higher education, OECD, Paris. Smilor, R

Stenström, M.-L. and P. Tynjälä (2009), Towards Integration of Work and Learning: Strategies for Connectivity and Transformation, Springer, United kingdom. Stone,

nonprofit hospitals in the United states and abroad, biotechnology industries, companies, universities and organisations, drug research is brought from the lab into the clinic and on to regulatory approval and manufacturing for patients in the developing world.

In fact, many of the students pursue further goals in education or in the workplace or move on to self employment.

To further accommodate the needs of their clients, Silai for Skills offers bilingual tutors and numeracy and literacy support.

For those seeking further help in finding education and learning opportunities locally and help with career planning and job applications, the project offers information, advice,

and guidance services free of charge to all (students and non-students alike). A wide range of courses in practical, specialised fields in fashion and art design (garment making),

so that all students can have access to the services regardless of their financial situation. A new development for Silai for Skills is an enterprise unit in

which current and past students can receive counselling and training on setting up a new business,

Also, each year a number of students desiring to start their own business can set themselves up on their on-site workshop,

In 2002, the National Education Ministry set up a sport and physical training degree programme, with a related diploma, aimed specifically at care for the elderly.

Programme and funding schemes are also in place through the Department of Social welfare and healthcare insurance companies that help to pay for SIEL Bleu's services.

charter schools, community-centred planning, emissions trading, fair trade, habitat conservation, international labour standards, socially responsible investing, supported employment (for disabled and disadvantaged workers) and individual

Accompanying this is a programme of financial education, with attendance at training sessions in financial management and economic literacy usually mandatory as a condition of participation.

and Learning Lab seeks to disseminate what works and what does not work (www. nesta. org. uk). Social innovation

and university curricula Social entrepreneurs might need special training to help them hone and develop their entrepreneurial and creative skills.

and to include social entrepreneurship in school and university curricula. Support market development for social enterprise

allow fast learning across a community of innovators; and, establish clear pathways for scaling up the most promising models.

Brock, D. and Ashoka's Global Academy for Social Entrepreneurship (2008), Social Entrepreneurship Teaching resources Handbook for Faculty Engaged in Teaching and Research in Social Entrepreneurship, Ashoka's Global Academy

de l'économie sociale, 27-29 may, Carleton University, Ottawa. Caulier-Grice, J. and G. Mulgan (2009), Exploring the Links between Social Enterprises, Social Entrepreneurship and Social Innovation,

United kingdom 2006, Foundation for Entrepreneurial Management, London Business school, full paper available at www. london. edu/assets/documents/PDF/Gem soc ent web. pdf. Harris, M

Understanding and Learning from the Differences, Voluntas, Vol. 17, No. 3, pp. 247-263. Lasprogata, G. and M. Cotton (2003), Contemplating Enterprise:

How Intentions to Create a Social Enterprise Get Formed, Working Paper No. 521, September, IESE Business school, University of Navarra (Spain.

A Framework for Future Research, Working Paper No. 546, IESE Business school, University of Navarra (Spain.

The Concept of Social Entrepreneurship, University of Aukland Business Review, Vol. 11, No. 1, pp. 45-51.

Santos, F. 2009), A Positive Theory of Social Entrepreneurship, Faculty and Research Working Paper, Social Innovation Centre, INSEAD, 2009/23/EFE, http://knowledge. insead

Domain, Contributions and Ethical Dilemmas, University of Minnesota Conference on Ethics and Entrepreneurship. Zhara, S.,E. Gedajlovic, D. Neubaum and J. Shulman (2008), Typology of Entrepreneurs:

for example models of distance learning that were pioneered in social organisations but then adopted by businesses, or for-profit businesses innovating new approaches to helping disabled people into work.

and training to start-up entrepreneurs with strong technological knowledge and developing programmes for corporate and university spin-offs, including proof-of-concept,

Stimulate local knowledge flows by involving SMES in interactive learning networks, promoting the local entrepreneurship engagement aspects of university third missions,

developing technology bridging institutions, strengthening the innovation absorption capacity of SMES and promoting local mobility of labour into and out of new and small firms.

and foreign direct investment ventures and attracting highly-skilled labour from abroad. 3. Strengthen entrepreneurial human capital Build up entrepreneurship education in universities

and higher education institutions by smartly scalingup, shifting the teaching emphasis from business management to growth-oriented entrepreneurship,

introducing interactive teaching methods that incorporate practical experience and linking into wider networks including alumni networks and external economic development organisations.

Strengthen vocational education and training programmes for business founders SME managers and SME workforces by changing the nature of vocational education

and training to better fit the needs and motivations of entrepreneurs, offering short-duration training for SME owner-managers and increasing the flexibility of vocational education and training for SME workforces.

Embed teaching of an entrepreneurial mindset in schools through changes in curricula and introduction of relevant teacher training and teaching materials designed for entrepreneurship.

Reinforce training in SMES by launching in-company projects, increasing SME apprenticeships and developing the training function of small business support programmes,

Increase the use of informal learning sources by facilitating collaborations with firms and consultants providing knowledge-intensive services activities,

unions and individuals involved in new and small firms with local training programmes and development of integrated training strategies combining training in higher education,

vocational education and training and formal and informal training. 4. Improve the environment for social entrepreneurship and social innovation Build financial, fiscal,

and include social entrepreneurship in school and university curricula. Introduce social clauses in public procurement procedures to encourage involvement of social enterprises in provision of social goods and services.

support learning across a community of innovators and establish clear pathways for scaling up the most promising models.

and learn from universities, research organisations and technologically-advanced companies. This is key to receiving external knowledge

universities, finance suppliers and public sector agencies bound together by common sets of norms and routines.

The engagement of SMES with providers of KISAS supports their learning and innovation processes. This engagement may be through either formal (contractual)

include industry, universities, colleges, employment agencies, unions and training organisations/associations, and are supported by integrated policy approaches to skills development.

Spin-off A new firm that is created by a former employee of a company (i e. corporate spin-off) or by researchers, teachers or students of a university (i e. university spin-off.

University spin-offs often exploit technologies generated within the university. Systemic failures Systemic failures are problems in innovation systems that prevent the generation, circulation and exploitation of knowledge.

Vocational education and Training (VET) Formal education and training programmes that have a task orientation rather than an academic nature

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