Synopsis: Employment & working conditions:

and initiatives that generate wealth and employment. Participatory governance Entrepreneurial discovery Action Plan implementation Strategy improvement Monitoring and evaluation (2015-2022)* The monitoring of the strategy is a mechanism that ensures continuous improvement

Research methodology APPROACH DATA METHOD Quantitative Statistical data from Spanish National Statistics Institute (INE) on number of establishments, GDP, employment and Input-Output regional

Besides, among the Spanish regional objectives appears also the entrepreneurial promotion (and specifically the search for entrepreneurial discoveries) as well as the networking

Aragon has a good tradition of social dialogue. 2 Education, research and innovation The University of Zaragoza plays a major role in Aragon with its 35000 students (including many Erasmus students)

of economic and social players through structures such as CREA (www. crea. es) and CEPYME (www. cepymearagon. es) on the employers'side.

The UGT and CCO are the main trade unions. Three Chambers of commerce and industry also play an important role in Zaragoza (www. camarazaragoza. com), Huesca and Teruel.

actions related to human resources, support to I+D through funding and research infrastructures, support to technological transfer and diffusion of research and innovation.

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

Four meeting of information of stakeholders in July (economic and social partners, research, innovation, education) Aragon on the S3 platform Sevilla Meeting S3 platform Core working group Ministry

Vision and challenges Future global vision Meeting with EC's adviser Meeting with stakeholders. Selection of priorities.

much visibility given to our work in 2012 at a regional, national and European level Next steps (in the short and medium term) to develop a good RIS3 in our region A strong involvement of the Gobierno of Aragon at President's

PLANIFICACIÓN PARA LA ELABORACIÓN DE UNA ESTRATEGIA DE ESPECIALIZACIÓN INTELIGENTE PARA ASTURIAS 23 Expert Assessment of RIS3 strategy for the region of Asturias, Spain

Estadística sobre actividades en I+D. Expert Assessment of RIS3 strategy for the region of Asturias, Spain Miquel Barceló 3 Evolution of R+D+i in Asturias/Spain

DIRCE (1 enero 2012) With respect to employment generated by the industry in Asturias, in 2010 53,636 people were employed in the sector,

representing a 2. 51%of the total sector employment in Spain (around 2. 1 million).

with the construction sector most affected with a reduction in employment of around 40%.%It is followed in order of relevance in the industry with a reduction of 18.6,

%Employees per sectors in Spain (quarterly average) 2012 (3t) 2011 2010 2009 2008 Total 17.320,3 18.104,6 18.456,5 18.888 20.257,6 Agriculture 720,4 760,2 793,0 786,1

Three industries are concentrated in Asturias that cover 82%of turnover and 75%of industrial employment.

They are the metal sector, the food sector and the extractive industries, energy and Expert Assessment of RIS3 strategy for the region of Asturias, Spain Miquel Barceló 5 water.

number of enterprises, turnover and employment from 2000 to the present, in the three main branches of the industrial sector in Asturias.

Note the importance of the metal sector in manufacturing employment in the region. As a summary, Asturias represents approximately 2. 40%of the Spanish total population, 2. 15%of the companies, with 0. 97%of the technological innovation spending and 1. 30%of private R & D expenditure.

Parque Tecnológico de Asturias, Llanera) Expert Assessment of RIS3 strategy for the region of Asturias, Spain Miquel Barceló 8 DATOS BASICOS FUNCIONES ALGUNAS CIFRAS

Información Universidad de Oviedo, ver web http://www. uniovi. es 13:00-18:00 Reunión de trabajo en el IDEPA Expert Assessment

or assesment The analytical work is being done so far by the referred document, the survey and the future focus groups and meetings with groups and institutions.

Avanzados Universidad de Oviedo Fundación ITMA INCAR CINN Expert Assessment of RIS3 strategy for the region of Asturias, Spain Miquel Barceló 15 In my opinion, the priorities

but also with regard to other relevant policies such as education, employment and rural development policies. There is no evidence that the strategy includes a clear reflection/proposal on how to exploit synergies between different European, national and regional funding sources.

PARA LA DIFUSIÓN DE RESULTADOS 7pm Asturias (IDEPA) Cienciatec. org Unidad de Cultura Científica (UCC) Canal UNIOVI2+D Expert Assessment

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.

Innovative Society and Security IT Services The next steps We are moving forward in the process with the help of a consultant.

y alta tecnología Recogida de datos Datos disponibles en Eurostat (Indicador Employment in technology and knowledge and sex (from 2008 onwards, NACE Rev. 2) Cálculo

2 1. 3 LABOUR MARKET EVOLUTION...3 2 SCIENCE AND TECHNOLOGY: A PRIORITY FOR THE REGIONAL GOVERNMENT OF CASTILLA Y LEÓN...

Background document 3 1. 3 Labour market evolution Due to the important rates of growth of our economy,

the rate of unemployment in Castilla y León, was been reduced significantly during the period 1996 (19.4%)to 2007 (7. 2%).More recently,

During the same period, unemployment of youth population increased from 17.43%to 38.54%in Castilla y León

The Law 17/2002 of promotion and general coordination of the scientific research, development and technological innovation (R&d and Innovation) in Castilla y León.

which are needed for sustaining employment and economic wealth. Clusters which are benefited from global trends in fields where Castilla y León have important technology capacities or comparative advantages.

Clusters with historic relevance in the employment and economy of Castilla y León, now under restructuration Automotive Agro-food Tourism Wood and forniture Natural stone Fashion-textile Oncology

RESEARCH AND INNOVATION STRATEGY FOR SMART SPECIALISATION (RIS3) OF CASTILLA Y LEON 2014-2020 EXECUTIVE SUMMARY The Research and Innovation S t r a t e g y

SPECIALISATION (RIS3) OF CASTILLA Y LEON 2014-2020 EXECUTIVE SUMMARY INTRODUCTION 1 A MAIN FACTS & FIGURES OF CASTILLA Y LEÓN 3 Territorial framework

) Due to these growth rates, Castilla y León has left the condition of objective 1 region in the European union, becoming objective employment and competitiveness region as of the 1st of January 2007,

of experts supported by the European Commission2, whose mission was studying the causes of a growing gap in R&d efforts between Europe and the United states and its impact on economic growth.

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

becoming evident in macroeconomic variables such as the employment market (while the unemployment rate remains below the national average) or in the number of active companies in activity sectors such as those linked to construction, road transport and business-linked activities.

The number of innovative companies (with more than 10 employees) has been experiencing a downward trend since 2004 at both regional and national levels,

Concerning human resources, the personnel employed in R&d activities in full-time equivalent (FTE) per thousands of working people in Castilla y León has evolved positively in the 2002-2012 period

There are large differences in ICT equipment and usage in companies with more than 10 employees and companies with less than 10 employees (micro-enterprises and independent contractors),

In 2012, specifically, only 68%of companies with fewer than 10 employees had compared computers with 71.6%at the national level.

In the case of companies with more than 10 employees these percentages increased to 98%.63.7%of micro-enterprises

This figure rises to 97.1%for companies with more than 10 employees. There has been significant growth in recent years of mobile Internet access in companies,

Working population's educational level higher than the national level. There is awareness in the private sector regarding execution of expenses in R&d with relative significance above awareness in the national population.

with further decreases in the number of staff appointed to R&d, innovative companies, and a-general loss of excitement has occurred on part of regional players.

Generally specialized human resources in administrative management. Scientific specialisation has little relationship to regional economic specialisation;

Decapitalization of human resources in research entities and talent and brain drain. Decreased globalization of innovation and minimal participation in international funding sources.

Reduction of budget earmarked for R&d that leads to a reduction of public capacities for the support of structures, human resources,

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

Infrequent use of ICT in the organization of work and large imbalances in the use of ICT depending on the company size.

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

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

Employment and sustainable economic growth Social and territorial cohesion Improved quality of life 7 Introduction of Castilla y León's work on research and innovation (III) 8 Coordinator:

High working population's education level. Business expenditure on R&d bigger than the public, and above the national average.

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

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

traceability & coherence Employment & sustainable economic growth Social & territorial cohesion Quality of life Cooperation Open innovation (business) Research platforms (critical mass) Identiaication of companies'needs

What did not work: The problem is to do the matrix. 31 Question 1: Integration of horizontal priorities with vertical priorities Why:

What did not work: Limited information about speciaic activities; results indicators linked to single measures are missing. 32 Question 2:

What did not work: SWOT and strategic objectives are different. Technically difaicult to put together. 33 34 Thank you Mr. Gregorio MUÑOZ-ABAD Deputy Commissioner for Science & Technology munabagr@jcyl. es

Work Package 2 january 2014 Ranald Richardson, Adrian Healy and Kevin Morgan This project is funded by the European union under the FP7 Cooperation Programme:

WP2 Embracing Social Innovation Page 2 1 INTRODUCTION This reflections paper draws on the work carried out under the first stage of Smartspec WP2.

these early reflections will be refined as we engage in empirical work; 1 For example, Oosterlynck (2013: 107) has described the social innovation project as‘an idea longing for a theory'.

drawing on the objectives set out in the original proposal for this work Section 4 highlights emerging trends in the consideration of social innovation in research

We will build on this process during our empirical work. 2. 1 Smart Specialisation Strategy (S3) Smart specialisation is described as a multi-scalar,

which may have resonance in the ongoing constructing of S3 and its application to RIS3 as a starting point for empirical work.

Moulaert et al (2013) provide an invaluable compendium of this work. Smart Specialisation for Regional Innovation:

and improve the well-being of individuals, communities and territories in terms of social inclusion, creation of employment, quality of life (OECD:

employment and education (CEC, 2013a), community and urban development, including in cultural and arts practices (Moulaert, et al, 2013a) 4, corporate change and workplace innovation (Drucker, 1987;

and warn of the difficulties of making this model work (Skapinker, 2013). In a recent book, Mulgan (2013), one of the key advocates of what might be termed‘third way social innovation',points to the tensions between the manner in

the BEPA definition is one useful starting point for our work. It should be noted, however, that the BEPA approach does not command universal acceptance.

Social policy (poverty, employment, urban regeneration, education, etc. social cohesion Academic disciplines: STI, Economicindustrial, Regional Development, Economic geography often policy focused Academic disciplines:

and how these play out in the real world will be explored during our empirical work. Figure 3. 1:

The entrepreneurial state thesis is applied in this work to the national level, though it is equally applicable to the regional and other sub-national levels.

linking innovation to strategy, visible leadership, incentives for innovation, appropriate risk management, training for staff, the creation of‘circuits for information'(information flows within and beyond the organisation),

Bason (2010), drawing on his work in Mind-Lab, also focuses on co-creation, considering techniques drawn from design

and ethnographic work to inform innovative thinking. One key task in both‘discovery processes',where the State will have a key coordinating role,

He highlighted the difficulty of entrepreneurial endeavour amidst the work and care of the daily round and he pointed to the scope

They comprise a diverse range of organisational forms such as employee-owned businesses, credit unions, cooperatives, development trusts, social firms, intermediate labour market organisations,

with workers and users represented and participating in the management of activities democratically oriented Activities require a minimum of paid workers (though may also employ volunteers) Avoid profit maximising behaviour

and have limited a distribution of profit Explicitly aim to benefit the community or a specific group of people Source:

the current Work Programme is a case in point, with multinational providers such as A4e, Maximus, Ingeus and Serco leading‘delivery partnerships'19.

this has been accompanied by new relationships between senior management and the‘shop floor'and with members. In addition these new approaches have resulted often in either de jure

Drawing on the work of Charles Sabel (2006), they argue that social enterprises exhibit a shared ethic of interdependent contribution, fundamentally different from both traditional ethics of honour and loyalty,

but more work is required to uncover whether this concept is being adopted in a common way.

they often have less utility in informing us what actually works, what fails and why.

Of most relevance to our work is the EU policy requirement that regional visions should include a justification of their relevance to societal challenges;

So, for example, in the field of employment, the European Statistical Office projects that by 2060 there will be only two people of working age (15-64) in the EU for every person aged over 65,

including pensions reform, active and inclusive workplace strategies, new approaches to housing and transport, new urban infrastructure and so on.

Expanding and improving the labour pool: as people live longer, and as pension entitlements diminish,

more people are likely to wish/need to stay in paid work for longer. Assuming that relevant policies can be put in place,

thus freeing up younger people for employment in the formal economy. A cadre of volunteers will also be essential to some of the social innovations envisaged by policymakers (CEC, 2012d.

training workers and users and so on. Such processes could be organised around a regional living lab perspective.

Following changes to the national rules on procurement, The french city of Nantes introduced labour market inclusion conditions into its procurement of public works (CEC, 2013a.

Similarly the Catalan Region and Barcelona City33 have applied social clauses in procurement for all its large contracts to integrate groups at risk of exclusion in the labour market.

WP2 Embracing Social Innovation Page 42 social dialogue, which may entail a redistribution of power among organizations and social groups (BEPA, 2011).

Public sector innovation is not possible in a context where employees fear for their lot and where their energies are consumed by the dull compulsion of everyday life.

which is meant what Schumpeter when he called for more freedom from the work and care of the daily round.

when they give talented employees what they crave above all namely time to indulge their own interests a form of social innovation that is urgently needed in the public sector. 6. 3 Civil society, users and citizens The involvement of civil society,

but also to the promotion of economic development on the S3 side, the regional amalgam that we discussed earlier.

This argument has been captured admirably in the work of Eric von Hippel and we wholly concur with his findings on the democratisation of innovation (especially von Hippel, 2005).

Social Innovation in the European union Report prepared by the Bureau of European Policy Advisers for the European commission.

Conducted by TNS Opinion & Social at the request of Directorate-General for Employment, Social affairs and Inclusion.

http://ec. europa. eu/public opinion/archives/ebs/ebs 378 en. pdf Last accessed 18.12.13 Eurofoundation for the Improvement of Living and Working conditions (2013) Social Innovation In service Delivery:

Lister, R. 2003b) Investing in the citizen-workers of the future: transformations in citizenship and the state under New Labour, Social policy and Administration, 37 (5): 427-443.

Lundström, A and Zhou, C. 2011) Promoting innovation based on social sciences and technologies: the prospect of a social innovation park, Innovation:

2011) Workplace Innovation, Social Innovation, and Social Quality International Journal of Social Quality, 1, 2, 31-49 (19) Oosterlynck, S. 2013)‘ Introduction:

and share what works. Available at: http://ec. europa. eu/enterprise/policies/innovation/files/social-innovation/sie-finalreport en. pdf Last accessed 18.12.13 Stumbitz, B, Mcdowall, R. and Gabriel

Forinstance, in 1991,24. 2%ofmanufacturing firms initalyhadlessthan10 employees, comparedto13. 3%intheukand7. 8%ingermany (OECD, 1997.

Technologicaldiscontinuitiesand flexibleproductionnet-works. Thecaseofswitzerlandandtheworldwatchindustry. Res. Policy21, 469 485. Gouvea, R.,Linton, J. D.,Montoya, M.,Walsh, S. T.,2012.

and work to coordinate domestic and international policies. The OECD member countries are: Australia, Austria, Belgium, Canada, the Czech republic, Denmark, Finland, France, Germany, Greece, Hungary, Iceland, Ireland, Italy, Japan, Korea, Luxembourg, Mexico, The netherlands, New zealand

, Norway, Poland, Portugal, the Slovak Republic, Spain, Sweden, Switzerland, Turkey, the United kingdom and the United states. The Commission of the European communities takes part in the work of the OECD. OECD Publishing disseminates widely the results of the Organisation's statistics gathering

or the Centre français d'exploitation du droit de copie (CFC) at contact@cfcopies. com. This work is published on the responsibility of the Secretary-general of the OECD. The opinions expressed

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, clients and consultants on projects such as those to improve quality control methods or products.

These interactions often take place through interactions between SMES and providers of what are known as Knowledge Intensive Service Activities (KISAS).

One of the main planks of their efforts must be the promotion of innovation in SMES and of innovative new entrepreneurship,

It draws in particular on the expertise and analysis of the OECD's Working Party on SMES and Entrepreneurship and the Directing Committee of the Local Economic and Employment Development Programme.

I would like to thank the delegates, experts and Secretariat members for their contributions. I trust that this publication will provide inspiration to policy makers around the world and,

ENTREPRENEURSHIP AND INNOVATION OECD 2010 7 Acknowledgements The following experts comprised the Scientific Advisory Group that helped guide preparation of this publication:

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:

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.

148 SMES, Entrepreneurship and Innovation OECD 2010 15 Executive Summary Innovation is one of the most fundamental processes underpinning economic growth, the driver of growth in output per unit of labour

new marketing methods and changes in ways of organising businesses, in their business practices, workplace organisation and external relations.

%all employment (approximately two-thirds) and all value added (over one-half). These shares vary significantly by country.

Among those presented in Chapter 2, SME activity shares range from minima of 47.2%of employment in industry in the Slovak Republic, 52.6%of employment in services in the United kingdom and 49.9%of value added in Ireland

, to 85.4%of employment in industry, 88.8%of employment in services and 75.2%of value added in Greece,

The data also show substantial EXECUTIVE SUMMARY SMES, ENTREPRENEURSHIP AND INNOVATION OECD 2010 17 shares of total activity accounted for by each of the sub-categories of micro,

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.

and to attract highly-skilled labour from abroad. EXECUTIVE SUMMARY SMES, E 18 NTREPRENEURSHIP AND INNOVATION OECD 2010 The second thematic chapter examines the issue of skills.

This works best when entrepreneurship support is embedded within teaching, entrepreneurship is seen as a strategic objective and ambition of the institutions,

clear incentives and rewards are applied for academic staff engaged in entrepreneurship promotion, support is provided for financial and human resources,

and entrepreneurship-dedicated structures are in place such as chairs, centres and incubation facilities. Start-up assistance and evaluations of support approaches should also be put in place surrounding the entrepreneurship courses.

For example, apprenticeship programmes are good vehicles for developing entrepreneurship skills, but SME participation in apprenticeship and other vocational training is limited relatively, potentially reflecting inappropriate training supply.

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

As well as gaps in external provision of entrepreneurship training, in-house training of employees by SMES is much less common than for large firms.

enterprises with less than 50 employees provide significantly less employee training than larger firms. This is even true for countries known for their strong training cultures

younger, better-educated workers in highly-skilled occupations such as managers, professionals and technicians have greater access to training opportunities than less educated routine

(i e. involved in routine tasks) and older workers. One of the problems is provided that externally entrepreneurship training approaches for managers

and workers are geared not sufficiently to the how to nature of competences that firms require.

nevertheless provide a significant boost to the entrepreneurship skills of SME employees. This involves SMES bringing in outside firms

and consultants to help them implement change, for example in quality control, marketing or product development. Experts may be called on in a range of areas,

such as in research and development, legal, information technology, marketing and other knowledge-intensive activities. Their advice and joint work with SME workforces upgrades skills, increasing the ability of SMES to develop,

absorb and apply knowledge in their broader innovation processes. Yet despite the capacity to support learning in this way,

employers, industry representatives, unions, labour market and training intermediaries (temporary work agencies and group training companies), local and regional government agencies,

The key characteristic of social EXECUTIVE SUMMARY SMES, ENTREPRENEURSHIP AND INNOVATION OECD 2010 19 entrepreneurship is that it aims to provide innovative solutions to unsolved social problems through some form of business.

and charities such as the Silai for Skills women's training and employment initiative in Bristol, United kingdom. Social enterprises, like associations or cooperatives, often need different support from that provided to traditional businesses.

and implementing new labour market integration processes, new competencies, new jobs, and new forms of participation,

job creation from new firm start-up and SME growth and productivity improvements from increased new and small firm innovation.

Secure conducive conditions for both high-employment-growth firms and innovation in the bulk of new and small firms.

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

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

and attracting highly-skilled labour from abroad: Measures for SME cross-border alliances should include providing information and connections to SMES on potential strategic partners overseas,

and supporting SMES in EXECUTIVE SUMMARY SMES, ENTREPRENEURSHIP AND INNOVATION OECD 2010 21 their efforts to upgrade their R&d,

promotion of corporate spin-offs from foreign direct investors; and joint technology development and training initiatives involving foreign affiliates and local SMES.

In the spirit of brain circulation, policy should seek to attract talented labour from other countries

and making diaspora populations aware of local job vacancies. Learning processes are at the core of entrepreneurship and SME innovation.

These skills are also critical to innovation by employees in existing SMES. The following recommendations are offered:

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,

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.

and seed funding programmes for individuals in EXECUTIVE SUMMARY SMES, E 22 NTREPRENEURSHIP AND INNOVATION OECD 2010 the early phases of social entrepreneurship projects.

OECD figures for eleven OECD countries suggest for example that high-growth enterprises account for between only 2 and 8 per cent of all enterprises with 10 or more employees,

Many empirical studies have shown the aggregate relationships between entrepreneurship and SME activity and economic growth and job creation.

These growth and job creation effects happen through innovation as new firm creation and SME growth increase productivity and bring new

) There is also an important link between new and small firm activity and job creation, as new and small firms take up labour released by downsizing elsewhere in the economy and increase national and local competitiveness (Neumark et al.,

Stangler and Litan (2009) for example show that from 1980-2005 nearly all net job creation in the United states occurred in firms less than five years old,

This job creation function of entrepreneurship and SME development is of great relevance to the recovery from the global financial

and services and increasing efficiency but also for meeting the job creation challenge of high unemployment. In the short to medium term there is a real opportunity for governments to use policies for entrepreneurship

and SME innovation to meet productivity and job creation objectives at the same time. There is growing, if still insufficient

and entrepreneurship that have made them essential drivers of innovation, growth and employment creation. The major feature of the knowledge economy is increased the importance of knowledge as a factor of production.

This is what is seen now generally by economists to be the major factor behind the bulk of economic growth, the growth that is not due to additions to capital and labour stocks.

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.

The implementation of new organisational methods in firms'business practices, workplace organisation and external relations can have substantial impacts on firms'competitiveness

ENTREPRENEURSHIP AND INNOVATION OECD 2010 29 make a major difference, such as changes in product design or packaging, product placement, product promotion or pricing.

For example, it may involve SMES in tracking competitors'actions through electronic monitoring of news and information services or the introduction of total quality management techniques on the work floor.

and data is not commonly available for non-technological innovation as a proportion of firm employment or turnover.

For example, for SMES, the use of knowledge-intensive service activities offered by consultants and other firms often brings new non-technological ideas into the firm with respect to business practices,

workplace organisation and marketing (OECD, 2010a, forthcoming. Another issue is that whereas technological innovation tends to be associated more with manufacturing,

if needed, help round up teams of engineers and other key staff from other firms. Engineers and other key staff may shift as groups,

The managed economy was a mass production society based on stable employment in large firms and a central role of unions and employers in regulating the economy and society in partnership with government.

The social contract included regulation of labour markets and a strong welfare state. The reduced power of large firms and unions,

and arguably the reduced capacity of government to raise taxes in an era of mobile capital,

and labour market flexibility increased the strain upon it. Social entrepreneurs and social enterprises such as nonprofit organisations have stepped into this breach (OECD, 2003;

At the same time many address problems of unemployment and the social problems of poor neighbourhoods. This is of great relevance in the current post-crisis context in

but is also about employment. As unemployment rates rise, it is critical that new firms are able to enter

and grow so that recent job destruction is balanced by job creation in the short to medium term.

i e. comparing innovation rates per employee not per firm (Audretsch, 1995). On the other hand, there is a strong suggestion that SMES are associated particularly with bringing forward so-called breakthrough innovations.

Furthermore, some empirical work casts doubt on a general characterisation of small firms as breakthrough innovators and large firms as incremental innovators (Chandy and Tellis, 2000.

using and interacting occurs on the job as employees face ongoing changes that confront them with new problems

labour market regulation, finance markets and intellectual property protection. OECD research shows for example how unbalanced taxes on company profits

the creation of jobs in SMES in response to an aggregate demand stimulus or targeted employment

High-employment-growth firms. One of the contributions of new firms and SMES to the economy is breakthrough innovation.

They make up an important component of the high-employment-growth firm sector. Facilitation and support for breakthrough innovation in this group may promote both innovation

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

but also through informal methods such as the creation of problem-solving work teams and engagement with external knowledge intensive service activity providers such as consultants (OECD, 2010a, forthcoming).

ENTREPRENEURSHIP AND INNOVATION OECD 2010 41 example through embedding of foreign direct investment, attraction of highly-skilled labour from overseas and building cross-national SME alliances.

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

and there is a particular SME skills gap among older and routine workers. These problems need to be addressed.

focused on improving the welfare of individuals and communities through employment, consumption or participation. The social entrepreneur is an agent of social innovation but not the only one.

as measured by employment, are enterprises with average annualised growth in employees greater than 20%a year over a three year period and with ten or more employees at the beginning of the observation period.

Gazelles as measured by employment, are enterprises which have been employers for a period of up to five years,

with average annualised growth in employees greater than 20%a year over a three-year period and with ten or more employees at the beginning of the period. 2. See also NESTA (2009). 3. The OECD/Eurostat Entrepreneurship

Indicator Programme is developing internationallycomparable indicators of entrepreneurship based on this definition. Bibliography Acs, Z. and D. Audretsch (1990), Innovation and Small Firms, MIT Press, Cambridge MA.

Acs, Z.,D. Audretsch, P. Braunerhjelm and B. Carlsson (2004), The Missing Link: the Knowledge Filter and Entrepreneurship in Endogenous Growth, Centre for Economic policy Research Discussion Paper No. 4783, Centre for Economic policy Research:

High-Growth Firms and their Contribution to Employment in the UK, NESTA, London. 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

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Information was collected by national experts and delegates to the OECD Working Party on SMES and Entrepreneurship and OECD Local Economic and Employment Development Committee.

number of enterprises/establishments and employment; number of persons engaged/number of employees. The dataset follows the International Standard Industrial Classification (ISIC) Rev. 3 for the classification of economic activities (see Annex 2. A1.

The breakdown of enterprises by size class used by national bureaus of statistics varies across countries,

or a new organisational method in business practices, workplace organisation or external relations. Four types are identified:

The implementation of a new marketing method involving significant changes in product design or packaging, product placement, product promotion or pricing.

The implementation of a new organisational method in the firm's business practices, workplace organisation or external relations.

Also, innovation surveys typically cover firms with more than 20 employees, and therefore exclude micro enterprises.

and marketing/promotion. Finally, Small Business Online is a competitive, grant-based programme designed to help small businesses go online,

to provide a referral service linking firms to experts within industries. 2. AUSTRALIA SMES, ENTREPRENEURSHIP AND INNOVATION OECD 2010 49 Australia Notes:

20 30 40 50%Lack of access to additional funds Lack of skilled persons within business or labour market Lack of access to knowledge or technology Uncertain demand for new

2006 Number of enterprises Total employment Value added Industry Services Total Industry Services Total(%)No. firms%No. firms%%No. engaged%No. engaged%%Industry Services Total

facilitating access to external experts; and providing physical office space. Nine centres have been selected in two competitive tenders.

including with international experts. The budget for the whole intended programme life cycle amounts to EUR 77 million,

The programme is administered by the agency FFG (Austrian Research Promotion Agency. 2. AUSTRIA SMES, ENTREPRENEURSHIP AND INNOVATION OECD 2010 51 Austria A. Structural indicators on enterprise population, 2007 Number of enterprises Total employment Value added

(factor costs) Industry Services Total Industry Services Total(%)No. firms%No. firms%%No. engaged%No. engaged%%Industry Services Total Micro 44 341 76.8 207

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

In Flanders, the Participation Company Flanders works to boost the innovativeness of regional SMES, by leveraging additional risk capital for new ventures (Vinnof:

IWT, the Flemish Institute for the Promotion of Innovation, implements the following types of measures in the VIS programme:

, 2007 Number of enterprises Total employment Value added (factor costs) Industry Services Total Industry Services Total(%)No. firms%No. firms%%No. engaged%No. engaged%%Industry

Firms within the group Government or public research institutes Consultants, commercial labs. or private institutes Lack of qualified personnel Difficulty in finding co-operation partners for innovation Lack of funds within enterprise or enterprise group Uncertain demand

The programme also received an additional CAN 45 million for the financial year 2009-10 as part of the Economic Action Plan's specific effort to stimulate job creation and the economy in Southern Ontario.

population, 2008 Number of business establishments Total employment Industry Services Total Industry Services Total No. firms%No. firms%%No. engaged%No. engaged%%Micro 136 788 72.1

This has been pursued mainly through the promotion of business support services especially in sectors of strategic relevance to the Czech economy such as automotive, machinery engineering, electronics, life sciences and information and communication technologies.

CZECH REPUBLIC SMES, ENTREPRENEURSHIP AND INNOVATION OECD 2010 57 Czech republic A. Structural indicators on enterprise population, 2007 Number of enterprises Total employment Value added (factor

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

as well as in an increase of the qualifications of the employees taking part in the innovation processes of the beneficiary companies and public institutions.

ENTREPRENEURSHIP AND INNOVATION OECD 2010 59 Denmark A. Structural indicators on enterprise population, 2007 Number of enterprises Total employment Value added (factor costs) Industry

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

The funding is concentrated heavily on R&d in small businesses and covers more than one-third of R&d in businesses with less than 50 employees,

but less than 3%of R&d in businesses with more than 500 employees. Tekes directed approximately 26%of the total funding for businesses to the smallest enterprises employing less than ten employees, approximately EUR 75 million in 2008.

An additional EUR 10-15 million was directed towards SMES through projects in large businesses, which increases the SMES'share by 5-8%.The Ministry of Employment

and the Economy (TEM) is building a modern growth entrepreneurship policy that seeks to create first-rate conditions for Finnish growth ventures.

which has been in operation for less than six years and with less than 50 employees, and willing to seek

The public sector provides incentives for experts, such as serial entrepreneurs, to become mentors and active developers in new ventures.

Such experts are positioned well to offer high-quality advice and contacts for start-ups to accelerate their growth and internationalisation,

population, 2007 Number of enterprises Total employment Value added (factor costs) Industry Services Total Industry Services Total(%)No. firms%No. firms%%No. engaged%No. engaged

or customers Competitors Firms within the group Small Medium Large Small Medium Large Consultants, commercial labs. or private institutes Government or public research institutes 0 0. 5 1. 0 1. 5 2. 0 2. 5 2003 2008 Finland

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

technology surveys, R&d subcontracting and other partnerships, human resources for research, and patent application procedures. Since 2008, the tax principles have been simplified considerably in the sense that they are no longer based on R&d expense increases but on their level:

, 2007 Number of enterprises Total employment Value added (factor costs) Industry Services Total Industry Services Total(%)No. firms%No. firms%%No. engaged%No. engaged%%Industry

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

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.

entrepreneurs can apply for staff expenses for up to three staff members and EUR 50 000 for materials and equipment.

2007 Number of enterprises Total employment Value added (factor costs) Industry Services Total Industry Services Total(%)No. firms%No. firms%%No. engaged%No. engaged%%Industry

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

who can cash it from the funding authorities. 2. GREECE SMES, ENTREPRENEURSHIP AND INNOVATION OECD 2010 67 Greece 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,

indicators on enterprise population, 2007 Number of enterprises Total employment Value added (factor costs) Industry Services Total Industry Services Total(%)No. firms%No. firms

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

Competitors Firms within the group Small Medium Large Small Consultants, commercial labs. or private institutes Government or public research institutes 0 0. 5 1. 0 1. 5 2. 0 2. 5 2003 2008 Iceland

2007 Number of enterprises Total employment Value added (factor costs) Industry Services Total Industry Services Total(%)No. firms%No. firms%%No. engaged%No. engaged%%Industry

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

Number of enterprises Total employment Value added (factor costs) Industry Services Total Industry Services Total(%)No. firms%No. firms%%No. engaged%No. engaged%%Industry Services

Firms within the group Small Medium Large Small Medium Large Consultants, commercial labs. or private institutes Government or public research institutes 0 0. 5 1. 0 1. 5 2. 0 2. 5 3. 0 2003

Funding recipients should have less than 300 employees or capital below JPY 300 million. The majority of schemes target venture companies and SMES.

employment Value added Industry Services Total Industry Services Total Industry%%%No. engaged%%%Micro1 117 231 45.4 725 025 8. 4 4

the Small and Medium Business Administration (SMBA) operates numerous schemes that are targeted all at assisting SMES in the areas of entrepreneurship, human resources, financing, marketing and innovation.

Finally, the SMBA operates Incubation Centre Promotion, a programme that aims to encourage spin-offs from universities and research institutes.

Number of establishments Total employment Value added Industry Services Total Industry Services Total(%)No. engaged%%%Industry Services Total Micro1 59 223 49.4

of enterprises Total employment Value added (factor costs) Industry Services Total Industry Services Total(%)No. firms%No. firms%%No. engaged%No. engaged%%Industry Services Total

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

and thereby increase Mexico's competitiveness. 2. MEXICO SMES, ENTREPRENEURSHIP AND INNOVATION OECD 2010 83 Mexico A. Structural indicators on enterprise population, 2003 Number of establishments Total employment

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,

Examples include involving young scientists, technicians and engineers in research and development projects, engaging experts in R&d and commercialisation projects,

reworking employee structures, to incorporate design-led positions and integration between functional teams; and developing new branding and communication strategies.

design consultants and mentors, and external costs associated with prototyping. 2. NEW ZEALAND SMES, ENTREPRENEURSHIP AND INNOVATION OECD 2010 87 New zealand A. Structural indicators on enterprise population, 2008 Number of enterprises Number

of employees Industry Services Total Industry Services Total%%%Micro 67 447 91.0 229 204 94.1 93.3 799 84 19.6 180 850

Total employment Value added (factor costs) Industry Services Total Industry Services Total(%)No. firms%No. firms%%No. engaged%No. engaged%%Industry Services Total Micro

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

ENTREPRENEURSHIP AND INNOVATION OECD 2010 91 Poland A. Structural indicators on enterprise population, 2007 Number of enterprises Total employment Value added (factor costs) Industry

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

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,

2007 Number of enterprises Total employment Value added (factor costs) Industry Services Total Industry Services Total(%)No. firms%No. firms%%No. engaged%No. engaged%%Industry

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

In 1997 the agency became a professional association of legal entities, including the Ministry of Economy of the Slovak Republic, the Slovak Association of Entrepreneurs and the Slovak Association of Crafts.

indicators on enterprise population, 2007 Number of enterprises Total employment Value added (factor costs) Industry Services Total Industry Services Total(%)No. firms%No. firms

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

97 Spain A. Structural indicators on enterprise population, 2007 Number of enterprises Total employment Value added (factor costs) Industry Services Total Industry Services

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

and to strengthen the networks that are necessary for this work. VINNOVA has a total budget of almost SEK 2 000 million, out

new employees have been recruited in 76%of the projects (of these, 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;

employment Value added (factor costs) Industry Services Total Industry Services Total(%)No. firms%No. firms%%No. engaged%No. engaged%%Industry Services Total Micro 123

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

E 100 NTREPRENEURSHIP AND INNOVATION OECD 2010 Switzerland The CTI (Swiss Federal Innovation Promotion Agency) is the most important innovation promotion government agency in Switzerland.

Among its main tasks is the promotion of entrepreneurship in The swiss economy. The most important entrepreneurship programmes are the CTI Start-up programme and Venturelab.

The overall budget for the entrepreneurship promotion programme of the CTI amounts to about CHF 11 million in 2008;

Further, according to selected firm variables (profit, turnover, employment growth, third-party funding and profit turnover ratio),

In contrast, non-labelled firms are performing better than label firms with respect to product characteristics, customer orientation, competitive position, employee satisfaction,

ENTREPRENEURSHIP AND INNOVATION OECD 2010 101 Switzerland A. Structural indicators on enterprise population Number of enterprises, 2005 Total employment, 2001 Industry Services Total Industry

ENTREPRENEURSHIP AND INNOVATION OECD 2010 103 Turkey A. Structural indicators on enterprise population, 2006 Number of enterprises Total employment Value added (factor costs) Industry

Medium Large Small Medium Large Consultants, commercial labs. or private institutes Government or public research institutes 0 0. 5 1. 0 1. 5 2. 0 3. 0 2. 5 2003

ENTREPRENEURSHIP AND INNOVATION OECD 2010 105 United kingdom A. Structural indicators on enterprise population, 2007 Number of enterprises Total employment Value added (factor costs) Industry

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

Like the previous programme, TIP also subjects funding proposals to rigorous vetting by both technical and business experts,

and cost sharing. 2. UNITED STATES SMES, ENTREPRENEURSHIP AND INNOVATION OECD 2010 107 United states A. Structural indicators on enterprise population Number of enterprises, 2005 Number of employees, 2004

This fund supports numerous programmes, including the promotion of entrepreneurship and innovation among private companies.

hosted by the Production Promotion Corporation (CORFO). Although it supports an ample range of enterprises,

Specific products are the provision of seed capital, support to business incubators and spin-off projects, technology promotion organisations and development of professional training centres.

and the promotion of good management practices among SMES. Chile Emprende Chile Emprende is targeted to existing micro and small enterprises

and provides funding to the evaluation and certification of labour skills. The execution of specific projects is made through consultancy firms and technical training organisations. 2. CHILE SMES, ENTREPRENEURSHIP AND INNOVATION OECD 2010 111 Chile Notes:

employing over 5. 2 million employees. The industrial value added generated in these development zones accounted for 8. 95%of the total value added of the whole country.

The firms achieved fast growth in terms of employment, sales revenues and export after being funded. By the end of 2006,145 provincial governments and municipal governments across China had set up their own funds to support innovation of SMES.

from least to most restrictive A. Breakdown of value added by firm size class, 2003 Size class of employees C. Administrative burdens on start-ups, 2008 Index scale of 0

2007 Number of enterprises Total employment Value added (factor costs) Industry Services Total Industry Services Total(%)No. firms%No. firms%%No. engaged%No. engaged%%Industry

or customers Competitors Firms within the group Small Medium Large Small Medium Large Consultants, commercial labs. or private institutes Government or public research institutes 0 5 10 15 20 25 30%Lack of qualified personnel Lack of funds within enterprise or enterprise

Technopreneur Promotion Programme Another major public policy initiative for funding innovation is the Technopreneur Promotion Programme (Tepp) at the Department for Scientific and Industrial Research.

and supports the joint work of different government institutions towards the development of innovative technology-based MSMES.

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

AND INNOVATION OECD 2010 123 Russian Federation A. Definition of SMES Size Employees Annual turnover Micro 1-15 Up to 1. 7 million euro

. Growth in the number of employees in SMES, 2001-2007 Thousands of people D. Barriers to entrepreneurship, 2008 Index scale of 0-6 from least to most restrictive E. Administrative

Several measures have been introduced over the past few years for the development of human resources; these focus on improvement of research experts in the business sector.

Besides the traditional programmes to support young researchers and young researchers from the business sector, the Public Agency of the Republic of Slovenia for Entrepreneurship and Foreign Investments (PAEFI) has two main programmes:

, 2007 Number of enterprises Total employment Value added (factor costs) Industry Services Total Industry Services Total(%)No. firms%No. firms%%No. engaged%No. engaged%%Industry

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

OECD 2010 South africa The promotion and support of micro, small and medium enterprises (MSMES) is an important policy issue in South africa.

Technology and Human resources for Industry Programme The Technology and Human resources for Industry Programme (THRIP) is managed by the National Research Foundation (NRF) on behalf of the Department of Trade and Industry.

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.

to produce a flow of skilled human resources, to enhance educational experience, and to foster collaboration among industry, HEIS and science, engineering and technology institutions.

compulsory social security M. Education N. Health and social work O. Other community, social and personal service activities P. Private households with employed persons (ISIC Rev

In Table A, for Number of enterprises, Total employment and Value added, Industry includes ISIC Rev. 3 categories C, D, E,

E and F and Services includes categories G h i and K. For Total employment and Value added,

In Table A, for Number of enterprises, Total employment and Value added, Industry includes NACE categories D, E,

For total employment, Industry includes NAICS 2002 categories 21,22, 23 and 31-33 while Services includes NAICS 2002 categories 42,44-45,48-49,53, 56 and 72.

In Table A, for Number of enterprises, Total employment and Value added, Industry includes NACE categories C, D,

and K. For Total employment Industry and Value added includes NACE categories D, E, and F. Services includes categories G h i and K. Estonia:

E and F and Services includes categories G h i and K. For Total employment and Value added,

E and F and Services includes categories G h i and K. For Total employment and Value added,

E and F and Services includes categories G h i and K. For Total employment and Value added,

In Table A, for Number of enterprises, Total employment, Industry includes NACE categories C, D, E,

In Table A, for Number of enterprises, Total employment and Value added, Industry includes NACE categories D

In Table A, for Number of enterprises and Total employment, Industry includes NACE categories D,

In Table A, for Number of enterprises, Total employment and Value added, Industry includes NACE categories C

In Table A, for Number of enterprises, Total employment and Value added, Industry includes NACE categories C, D, E,

In Table A, for Number of establishments, Total employment and Value added, Industry includes ISIC Rev. 3 categories C

D and E and Services includes categories G h i and K. For Total employment and for Value added,

In Table A, for Number of establishments and Total employment, Industry includes NACE categories D

E and F. For Total employment it includes NACE categories D, E and F. For Value added it includes categories D

In Table A, for Number of enterprises and Number of employees, Industry includes ISIC Rev. 3 categories C, D, E,

In Table A, for Number of enterprises, Total employment and Value added, Industry includes ISIC Rev. 3 categories C, D, E,

In Table A, for Number of enterprises, Total employment and Value added, Industry includes NACE categories C, D, E,

E and F. For Total employment and Value added it includes NACE categories D and F. Services includes NACE categories G h i and K. Slovak Republic:

In Table A, for Number of enterprises, Total employment and Value added, Industry includes ISIC Rev. 3 categories C, D, E,

E and F and Services includes categories G h i and K. For Total Employment and Value added,

In Table A, for Number of enterprises, Total employment and Value added, Industry includes NACE categories C, D, E,

In Table A, for Number of enterprises, Total employment and Value added, Industry includes NACE categories C, D, E,

In Table A, for Number of enterprises and Total employment, Industry includes ISIC Rev. 3 categories C, D, E,

and F and Services includes NACE categories G h i and K. For Total employment NACE categories C,

In Table A, for Number of enterprises, Total employment and Value added, Industry includes NACE categories C, D, E,

and F. Services includes ISIC Rev. 3 categories G h i and K. For number of employees,

and attraction of overseas skilled workers are three of the main channels through which global knowledge flows can revitalise local innovation systems. 3. KNOWLEDGE FLOWS SMES,

As to external constraints the second strand of the literature heavy labour market regulations and market entry requirements are deemed traditionally to discourage entrepreneurship,

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.

The geographical clustering of knowledge-intensive activities Activities can cluster for different reasons, such as availability of intermediate suppliers and skilled labour

good quality of infrastructure and other facilities, proximity to natural resources that are key to the production process, a better match between employers and employees or buyers and suppliers, etc.

of skilled human resources in the key cluster industries and strong networks (Potter and Miranda, 2009.

and the latter being concentrated around large urban areas where business service employment is abundant (Duranton and Puga,

c) an employment growth indicator (average rate of employment growth; d) profitability (average return on total assets;

Tacit knowledge is created not just a priori through investments in education and training or the attraction and retention of qualified labour,

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

formation of human resources; contribution to economic development. Industry Undertake industrial R&d. Monitor research results generated by others;

employment of high-skilled workforce; co-funding of research activities. Government Express strategic research interests; set up laws that enable the other actors to carry out their functions;

and iii) attraction of skilled labour. All three can contribute to the generation, transmission and exploitation of knowledge,

The establishment of spin-off enterprises from multinational companies and the normal flows of workers and managers between companies within the local labour market are some of the clearest examples of passive knowledge transfers.

the planned exchange of staff (secondments, mutually agreed recruitment and training, etc. or joint projects (e g. with training providers and technology institutions.

Similarly, the attraction of FDI has been combined with the promotion of local clusters by targeting FDI in those sectors where the locality has strong productive agglomerations

The attraction of foreign skilled workers Renowned examples of attractive local economies, such as Silicon valley and Austin in the United states or Dublin in Europe, are witness to the importance of attracting foreign highskilled workers to stimulate entrepreneurship.

For receiving places, the inflow of foreign talent has positive effects on the number of skilled workers

the emphasis has often been placed on the brain drain and the associated downsides such as the losses of human capital and productive labour.

However, as recent OECD work shows, qualified people can also accrue skills more rapidly abroad

A number of factors affect the ability of a locality to attract a skilled labour force.

and attraction of foreign talented labour are three of the possible channels through which global knowledge flows can strengthen SME

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

or skilled workers of the foreign affiliate to set out their own business. 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,

and links to external experts (see Austria's Country Note). Interactive learning networks boost SME innovation and need to be stimulated.

and linkages to more technologically advanced firms or business experts (see Australia's Country Note).

Labour mobility accelerates knowledge flows within an innovation system. More generally, labour mobility within an innovation system should be promoted as a tool enabling local knowledge flows and spillovers via the transfer of skills and experience,

although marked inter-firm labour mobility can deter private investments in training, especially in SMES. 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

The United states has traditionally been at the forefront in the promotion of cutting-edge and cross 3. KNOWLEDGE FLOWS SMES

A third way of triggering global knowledge connections is to promote the attraction and exchange of highly-skilled foreign labour.

OECD (1997), National Innovation Systems, OECD, Paris. OECD (2002), High-growth SMES and Employment, OECD, Paris. OECD (2004), Global Knowledge Flows

which means that micro firms with less than ten employees may be excluded largely from this database. The value of the ORBIS database for territorial analysis rests on the possibility to rearrange firm-level data according to detailed company location.

Economic performance indicators, e g. labour productivity; turnover per employee; growth rates according to turnover, value added or employment;

productivity growth. Profitability indicators, e g. profit margin; return on capital employed; return on total assets, etc.

While economic performance and profitability indicators can be calculated from the ORBIS database at different levels of industry

turnover, employees, value added) by classification variables (economic activity, firm size and location. Such a deviation potentially generates biased economic indicators.

such as labour productivity or firm profitability, can be expected to be correlated with company characteristics such as legal form. 3. KNOWLEDGE FLOWS SMES,

and with the same magnitude in all territorial areas the standard location quotient (LQ) tends to neutralise these sources of bias in the input data Dynamic territorial indicators, such as employment or labour productivity

vocational training and the use of knowledge-intensive service activities and small business support in the provision of entrepreneurship skills.

Also in the case of workers in existing SMES data confirm the existence of a skills and training problem holding back innovation.

Across OECD countries, employees of SMES participate in formal training activities to only half the extent that staff in large firms do (OECD, 2010b, forthcoming.

Even informal competencebuilding measures have little take-up among low-skilled SME workers. In the future there will be a need for new types of skills matching new types of jobs,

skills at work can be classified broadly into the eight groups shown in Table 4. 1. As working environments

but this OECD classification is a good reflection of the current working environment. There are three broad skills categories:

and communication skills needed for team work, and specific language and cultural skills that are of growing importance in certain multicultural working environments.

Converging skills require several of the other skills plus skills specific to entrepreneurship, or for adjusting to the green transformation of jobs or indeed new green jobs.

researchers, marketing professionals) and drafting skills. Management Skills for business planning, regulations and quality control, human resources planning (recruitment, training and skills development) and allocation of resources (e g. management of intellectual property, financial management, firm

health and safety operations. Social and communication Motivation and appreciation of people's characteristics for working individually and in teams;

and advanced skills needed in a working environment. The skill to cooperate for success involves the capacity to undertake successfully the following activities:

(and unlearn) from life situations inside and outside the work environment. Source: Adapted from Green et al.

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

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

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

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.

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

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

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.

4. Recruitment and career development of academic staff take into account entrepreneurial attitudes, behaviour and experience as well as entrepreneurship support activities.

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

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

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

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,

where the trainee is based mainly with an employer. Apprenticeship programmes are widespread, with countries like Denmark, Australia,

Germany and France often being referred to as good practice. 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

%of which is earmarked for apprenticeships. All firms (apart from those employing apprentices) pay this apprenticeship tax (Stone and Braidford, 2008.

Germany furnishes a second example there the VET dual system includes on-the-job training or in-company training combined with part-time vocational school training.

Since 2002 the demand for apprenticeship positions has exceeded constantly their supply, both in eastern and western Germany (Zwick, 2007.

The German model is considered effective, contributing to innovation by nurturing the skills needed by the firms.

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

For certain courses active recruitment is practised. 5. Out-reach to alumni, business support organisations and firms are a key component of entrepreneurship education. 6. Results of entrepreneurship research are integrated into entrepreneurship education messages.

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

E 172 NTREPRENEURSHIP AND INNOVATION OECD 2010 the Australian Apprenticeships, bring together the traditional apprenticeship and the traineeship systems.

escalating from about 120 000 apprentices in 1995 to over 400 000 by 2003. The numbers in Australian Apprenticeships represent 3. 5%of the working population

one of the highest rates of contracted training in the developed world. One reason for the success of these programmes is financial incentive from federal and state governments.

These incentives bring employer commitment to the system; they also create and fund intermediary bodies such as Group Training Organisations and New Apprenticeship Centres,

rather than leaving the selling of the programmes to training providers (Smith and Smith, 2007).

and for this reason the apprenticeship could be seen as a vehicle to promote entrepreneurship skills.

Traditional apprenticeship programmes aim to train skilled employees and do not explicitly train entrepreneurship skills,

Interaction with vocational training institutions tends to be more important for skills development in small firms than in larger ones,

since the latter can often afford to run their own apprenticeship programmes. However, improving entrepreneurship skills in SMES through vocational education and training is challenging due to obstacles to SMES in accessing formal training.

Schemes such as training leaves are taken not fully up by employees. Participation in voucher-type schemes is high among employees,

but on average only 50%of the amount of finance available for training is used and there is a low participation from micro and small enterprises and from unskilled, semiskilled and older employees.

Training packages and apprenticeship schemes have been very successful in some countries as employers use the national qualification system to upgrade the skills of their workforces.

However, in general, voluntary policies have had greater success than compulsory measures (OECD, 2010a, forthcoming. It is clear that incentives for training are needed often to engage small businesses owners and self-employed people.

It can be argued that this reflects an inappropriate training supply in vocational training institutes which is designed too often around conventional norms of business management education and not enough around the motivations of entrepreneurs.

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,

policy measures should target both workers and enterprises, not providing financial incentives alone but also allowing freedom of choice and market transparency;

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

Another step that can be taken to fit the vocational training offer more closely to what is demanded by SME managers is the introduction of innovation bootcamps.

are more likely to find employment and have enhanced social psychological development (self esteem, self efficacy, etc.)(

and all have staff with responsibility for delivering enterprise in education. An annual reporting process ensures examples of good practice can be shared

3) Responsible citizens have knowledge and understanding of the nature of work and social and economic enterprise;

understand the roles, rights and responsibilities of individuals as employees, managers, employers, entrepreneurs, investors, customers and global citizens;

4) Effective contributors have an understanding and appreciation of the world of work, the value of different occupations and entrepreneurship and their contributions to the economy and to society;

Examples are regular programmes to train new employees or potential team leaders and project management and foreign language language training (Markowitsch and Hefler, 2007).

Across the EU-15 countries, data from the Eurostat Continuing vocational training Survey show that employees in enterprises with less than 50 employees receive significantly less in-company training than employees in larger firms.

In terms of annual volume of hours spent by employees in training, the average in firms with less than 50 employees is about half that of large firms with 1 000 employees and more,

and about two-thirds of the average of all firms. In some countries a relatively high proportion of small firms with between 10 and 49 employees provide some formal training for their employees:

Denmark (48%),Finland (38%),The netherlands (36%),Sweden (51%)and the United kingdom (35), %but even here the participation rates are much smaller than for larger firms (Denmark 56%,Finland 62%,The netherlands 42%,Sweden 68%,United kingdom 52%).

%The participation rate in these countries for large firms of at least 1 000 employees is much higher (Greece 33%,Hungary 26%,Italy 52%,Poland 46%,Portugal 43%,Spain 46

younger, better educated workers in high-skilled occupations (such as managers, professionals and technicians) have greater access to training opportunities than less-educated older workers

and workers involved in routine tasks (OECD, 2003; 2008a). ) One of the reasons that SMES undertake less formal training than large firms is cost.

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

For example, entrepreneurial skills can be acquired through in-house team work for development of a new product.

This provides an opportunity for employees to learn from others in different companies. In addition to enhancing SMES'efficiency, innovative potential and growth prospects,

undertaken in collaborations between SME employees and external professionals or in SME employee work groups (OECD, 2006;

KISA projects can be undertaken by SMES with outsiders such as business consultants, clients and suppliers in the firm's network and/or value-chain,

and work with its employees in pursuit of new or improved solutions to current needs of the firm at the same time increasing the skills, knowledge and competencies of employees in significant ways.

SME work with external KISA suppliers is important because the professionals brought in apply their expertise to the management of increasingly complex technologies,

This results in co-production of knowledge by the different workers involved, constituting a critical nexus of today's networking economy.

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,

Informal training refers to learning resulting from daily activities related to work, family or leisure. It is organised not

Until now the attention of policy makers has tended to be on the contribution of knowledge workers to entrepreneurship and innovation.

routine workers can also make an important contribution to transforming SME activities to a context of increased knowledge intensity and innovation activity.

Innovative firms are moving towards recognising the important contribution that routine workers can make both in innovative outputs and in skills acquisition for the firm.

For example, Advance Metal Products (an Australian SME specialised in metal work and machinery) involves floor workers with engineers in activities oriented to find new uses for old machinery.

problem solving and communication skills to creative thinking and integration of technical knowledge. Although not formally recognised by standard qualifications,

such skills constitute a competitive advantage for these routine workers in the labour market. Working with engineers also helps routine employees to further analyse their own activities

and how they can better be performed (Martinez-Fernandez, Receretnam and Sharpe, 2007). These types of KISA that act as a specialised service for the firm

and by employees usually classified as working in lowknowledge intensity tasks. KISAS are still a relatively unexplored area

despite their importance to the new interactive skills required in the work place. Further development is needed,

especially in the context of the new green growth economy and in occupations that depart from previous rigid conceptions of job profiles (Miles et al.,

they thus fuel innovation and growth of the firm and employment. These activities are performed largely in-house with external actors such as business consultants or other professionals from the SME's network and/or its value chain.

As KISAS are undertaken to quickly respond to needs, 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. Entrepreneurship policies should pay more attention to this way of developing entrepreneurship skills,

One of the reasons is the opportunity that on-the-job training gave to novice entrepreneurs to discuss work problems and test out solutions with real entrepreneurs and experts.

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

or external consultants that work with the business owner or managers to think about processes, business models or solutions to specific problems.

marketing, legal, personnel development, training, recruitment and business management services. Examples from this group include the provision of management skills for integrating e-commerce into the core business.

employers, industry representatives, unions, labour market and training intermediaries (temporary work agencies and group training companies), local and regional government agencies,

Although training can in principle be provided by experts from other countries or regions, it tends to be seen as a local resource by both enterprises and employees.

This, and the positive effects of local networks and connectivity in achieving the vitality of local economies,

encouragement and support for staff embarking on entrepreneurship teaching activities. Facilitate teaching activities for existing and former entrepreneurs.

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

the training agency of the Milan Chamber of commerce, Industry, Craft and Agriculture, works to meet the training demand of its 325 000 registered enterprises.

and entrepreneurship development training programmes for owners, managers and consultants in business planning, financial services, ICT and marketing.

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

Public administration. 4. ENTREPRENEURSHIP SKILLS SMES, E 182 NTREPRENEURSHIP AND INNOVATION OECD 2010 placements and consulting projects.

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,

and other approaches to support the integration of new employees and the development of potential team leaders;

increase apprenticeships in SMES since they are ideal for entrepreneurship skills development. Increase the use of informal learning sources.

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

CEDEFOP (European Centre for the Development of Vocational training)( 2008a), Future Skills Needs in Europe: Medium-term Forecast, Office for Official Publications of the European communities, Luxembourg.

Towards Workforce Development and Sustainable Skill Ecosystems, Journal of Industrial relations, Vol. 48, No. 5, pp. 575-592.

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.

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

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

I. and P. Braidford (2008), Engaging Employers in Continuing Training: An International Review of Policies and Initiatives, Research Report 30 march, UK Sector Skills Development Agency, United kingdom. Tether, B.,A. Mina, D. Consoli and D

Zwick, T. 2007), Apprenticeship Training in Germany Investment or Productivity Driven? Discussion Paper No. 07-023, Centre for European Economic Research, Germany.

there are 15 000 social enterprises employing 350 000 employees, serving 5 million users and with an economic turnover of EUR 10 billion.

The main conclusion to be drawn is that the social economy in Europe is very important in both human and economic terms, over 11 million paid employees,

equivalent to about 6%of the working population of the EU. These aggregates underline the fact that this is a reality

including data on nonprofit finances, employment and wages, and volunteering. The website of the project (www. ccss. jhu. edu/index. php?

Nonprofit employment is much larger than expected and much more widely dispersed, outdistancing many major industries in its contribution to state employment and payrolls;

Nonprofit employment is dynamic, growing more rapidly than overall employment; Nonprofit employment is spreading to the suburbs and rural areas;

Nonprofit wages actually exceed for-profit wages in many of the fields where both sectors operate;

Despite their growth, nonprofits in many states are losing‘market share'to for-profit firms in many fields where both sectors are operating.

To complete the overview and to have an idea of the economic weight of cooperatives in the United states (not included in the nonprofit sector in that country but belonging to it in Europe),

A nursery centre project run jointly with a consortium of social cooperatives that would train the childcare workers,

Moreover the cooperative aims at employing local disadvantaged workers, thus contributing to the local employment of individuals from groups who may find it difficult to get jobs.

And it is inserted into a network of other cooperatives and the local community, so that it becomes a full economic actor within the community.

Another priority is to employ disadvantaged workers in service delivery areas. Financially supported by local credit cooperatives

One that can readily be seen is the capacity-building opportunities offered to healthcare workers and scientists,

It builds capacity by training healthcare workers and scientists in clinical drug development, which in turn stimulates new avenues of economic development.

grants and donations, market revenues and (limited) voluntary work, they can provide services at a lower,

training for healthcare professionals and training to help companies prevent accidents through regular physical activities in the workplace demonstrates the importance of the services it delivers.

and employment project based in the inner city area of Easton in Bristol, England. This innovative social enterprise (a registered charity) has as its main objective to help build women's skills,

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

The positive results gained from its work with women across Bristol have led to the project's longevity:

Silai for Skills has been in operation for 19 years. Women of all ages, backgrounds and skill levels are welcome,

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).

The OECD definition In 2000, the Local Economic and Employment Development Committee (LEED) of the OECD provided a definition of social innovation, in the framework of its Forum on Social Innovations (FSI.

which works as a training department for healthcare professionals working with the elderly. There is also GPS Santé,

and muscular-skeletal disorders among its workers through regular physical activity exercises in the workplace.

and develop a welltrained staff. Partnerships have been built with The french government authorities and ministries such as the Department for the Elderly and Department of Sport.

the association works with the person to reach a compromise. Source: www. sielbleu. org. 5. SOCIAL ENTREPRENEURSHIP AND SOCIAL INNOVATION SMES, E 196 NTREPRENEURSHIP AND INNOVATION OECD 2010 objective of facilitating international dissemination

identifying and implementing new labour market integration processes, new competencies, new jobs, and new forms of participation,

The key distinction is that social innovation deals with improving the welfare of individuals and communities through employment, consumption and/or participation,

are likely to have a positive impact on local development in terms of social capital, sustainable employment,

or youth unemployment or environmental sustainability, are other examples of the different levels at which social innovation can be achieved.

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

Programme workers also maintain close personal contact with clients to provide counselling and encouragement. The programme sponsor is responsible for recruiting participants

incentive tools for local consumption (credit card and social currency) and new ways of commercialisation (fairs, solidarity shops/stores) promoting local job creation and income generation.

and pay between 5%and 20%of salaries in the Palmas currency to those employees who live in the neighbourhood.

The meeting gathered a number of experts and social innovators and concrete examples of existing social innovations were discussed.

The work of The Lab is divided into three distinct parts. Challenge Lab looks at the contribution innovation can make to services, with an initial 5. SOCIAL ENTREPRENEURSHIP AND SOCIAL INNOVATION SMES,

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

which aims to support the modernisation of institutions and job creation through the annual inclusion of 1 000 qualified young people in social economy institutions.

for example to encourage the employment of long-term unemployed or disadvantaged people. Involving social enterprises in public service delivery can bring many community benefits.

More work is needed to develop a clear definition of social innovation, and to increase a general knowledge

skills and practices that make social entrepreneurs and their work distinctive from more traditional public service (Light, 2009, p. 21) and built around the following assumptions:

Author (s) Year Definition GEM 2006 Social entrepreneurship is any attempt at new social enterprise activity or new enterprise creation such as self employment, a new enterprise,

identifying and implementing new labour market integration processes, new competencies, new jobs, and new forms of participation,

The key distinction is that social innovation deals with improving the welfare of individuals and community through employment, consumption or participation,

Skoll World Forum on Social Entrepreneurship and Social Innovation 2007 Social innovation can simply be understood as‘new ideas that work which address social or environmental needs'.

new production factors such as atypical employment and involvement in governance, mixing voluntary and paid employment, as well as new market relations such as the changing welfare mix,

‘new ideas that work'.'This differentiates innovation from improvement, which implies only incremental change; and from creativity and invention,

but miss out the hard work of implementation and diffusion that makes promising ideas useful.

Social innovation refers to new ideas that work in meeting social goals. Defined in this way the term has, potentially,

or for-profit businesses innovating new approaches to helping disabled people into work. But these definitions provide a reasonable starting point

new production factors such as atypical employment and involvement in governance, mixing voluntary and paid employment, as well as new market relations such as the changing welfare mix,

Secure conducive conditions for both high-employment-growth firms and innovation in the bulk of new and small firms. 2. Embed new firms

and promoting local mobility of labour into and out of new and small firms. Promote knowledge spillovers among related variety industries with related competencies

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

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

and consultants providing knowledge-intensive services activities, such as through innovation voucher programmes for SMES. Strengthen the contribution of local skills ecosystems to entrepreneurship and SME development through greater engagement of employers,

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

but also social and communication skills related to team work and language skills. Basic skillsgeneric and routine skills found in occupations present in most industries and organisations.

some advanced skills on business management and human resources and some specific skills related to risk assessment and warranting,

People climate Societal factors other than mere economic opportunities able to influence the decision of skilled workers about where to live and work.

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

Small and medium-sized enterprises (SMES) Non-subsidiary, independent firms which employ less than a given number of employees.

The most frequent upper limit designating an SME is 250 employees, as in the European union. However, some countries set the limit at 200 employees,

while the United states considers SMES to include firms with fewer than 500 employees. Small firms are considered generally those with fewer than 50 employees

and micro firms have at most 10 employees. Financial information on turnover or balance sheets can also be used to define SMES.

Social economy The ensemble of entities that explicitly have both an economic and a social mission.

These can include associations, cooperatives, mutual organisations, foundations and more recently social enterprises. This type of economy is regulated essentially by the stakeholder principle,

ENTREPRENEURSHIP AND INNOVATION OECD 2010 223 bring innovative solutions to problems such as social exclusion and unemployment through the production of goods and services.

and training and integration into employment of persons excluded from the labour market. Social entrepreneur A person who recognises a social problem

Social innovations can, for instance, concern new competencies, jobs and forms of participation in the labour market,

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.

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