competition, risk-taking and appropriate financial returns on successful ventures can particularly affect small and medium-sized enterprises.
Furthermore, due to mounting competition, the capability to control the innovation and manage the innovation processes has become extremely important to governments and organizations alike because of the impact,
and make competition irrelevant. Boston, MA: Harvard Business school Press. 5 Hamel, G. 2002. Leading the revolution:
and can make a business stand out among the competition. However, the lack of design management skills is a significant barrier to the wider adoption and integration of design into Europe's businesses.
and productivity New firms must often have an innovative edge on their competition in order to survive, particularly in younger
such as those affecting labour markets, tax design, competition, financial markets and bankruptcy laws. The PROMOTING ENTREPRENEURSHIP
Policy design in areas such as competition, the regulatory framework, the tax system, labour markets, financial markets and bankruptcy laws should take account of the way these areas impinge on SMES and innovation in knowledge-based economies.
These challenges can expose them to heightened international competition from foreign firms, and may result in the loss of traditional markets to lower-priced competition from overseas.
Challenges and threats may concern the following: standards and international compatibility issues; intellectual property protection;
Liberalisation and competition in network infrastructure should continue and be strengthened, Rollout and use of quality infrastructure at affordable prices are crucial.
promote effective competition and continued liberalisation in infrastructure, network services and applications across different technological platforms;
or inhibit competition. Figure 4. Internet penetration by size class, 2001 or latest available year Percentage of businesses using the Internet1 1. In European countries, only enterprises in the business sector,
and promote broadband competition and liberalisation in network services and applications. Where the needs exist,
and without preempting private initiative or inhibiting competition, complement private investment with public financial assistance to expand coverage for under-served groups and remote areas.
We find that international competition fosters R&d intensity, especially for high-tech firms. Firm size, R&d intensity,
Concerning competition, more than 42%of the firms in the sample have national competitors, while 18%and 14%have European and international competitors, respectively.
International (including European) competition fosters R&d intensity, especially in high-tech firms. Also, R&d has a strong and sizeable impact on firm's ability to produce process innovation,
General Fasteners, a supplier of components to the major automotive companies, had been squeezed more and more on price as the global competition in this sector became increasingly tough.
and to create subtle barriers to competition. Indeed, this new low-cost digital freedom may even provide smaller companies advantages over larger firms which are encumbered by legacy data systems
The database also builds barriers against competition. For example, Chemstation solved a cleaning problem at a Harley davidson plant within its shock absorbers manufacturing division
Capability and competition are added as part of this gate, but mostly for new product or new product/service combination ideas.
and (2) avoid direct competition. Segmentation can be done qualitatively or quantitatively. Qualitative segmentation usually requires managers to brainstorm,
Competition can be a disincentive, with participants believing that their personal promotion, status, raises, etc. may be lost
Competition and cooperation: Italian SMES go international, CIRPETUNIVERSITY of Turin. Discusses internationalization, and specifically the weaknesses of SMES. de Brentani, U. 2001)."
The Emergence of Knowledge as the Source of Comparative Advantage 7. Confronted with lower cost competition in foreign locations,
"10 10 Tom Peters,"New Products, New Markets, New Competition, New Thinking,"The Economist, 4 march, 1989, pp. 27-32.
which leaves it vulnerable to competition from more technologically advanced companies. Customers eventually reward technological leaders that can provide them with unanticipated product innovations and improvements.
and (2) the degree of monopoly versus local competition. 49. One model suggests that a concentration of firms within a particular industry in a geographic region facilitates knowledge spillovers across firms (the Marshall-Arrow-Romer model.
There is also theoretic debate about the effect of competition on innovative activity. The Marshall-Arrow-Romer model predicts that local monopoly should be superior to local competition 13 Saxenian (1990,
pp. 97-98). 14 For an extension of this see Vernon (1994) and Vernon et al.
In contrast, Jacobs (1969) and Porter (1990) argue that competition is more conducive to the generation of knowledge externalities than is local monopoly. 15 Not only does a large number of firms result in greater competition for new ideas,
and local competition did positively influence industry growth rates in US cities from 1956-1987 (Glaeser et al.,
In addition, the results of this study indicate that local competition for new ideas within a city is more conducive to innovative activity than is local monopoly.
More specifically, regulatory policy, competition antitrust policy, and the public ownership of business are on the decline.
and David B. Audretsch, 1999, Science-Based Diversity, Specialization, Localized Competition and Innovation, European Economic Review, 43,409-429.
Van dijk, Meine Pieter, 1995, Flexible Specialisation, The New Competition and Industrial Districts, Small Business Economics, 7 (1), 15-28.
The dynamics of industrial competition. Cambridge, Massachusetts: Cambridge university Press. Baldwin, C. and Clark, K. B. 1997.
Forces generating and limiting concentration under Schumpeterian competition. Bell Journal of Economics 9 (2), 524 548.
Competition, strategy, and the structure of returns in the Internet economy. Journal of Economics & Management Strategy 14 (1), 141 164.
and generally oligopolistic--technological changes and innovation in general constitute one of the, if not the main, weapons of competition.
Innovation is often in competition with other business functions for this investment. To address this challenge,
Competition effects: Another important concern is the prescription for a policy-induced division of labour between leading
A policy that targets public R&d towards an area of existing strength, such as agriculture, may deepen interregional disparities though the reduction of competition
Indeed, some duplication is a side-effect of competition and may be beneficial from a societal point of view.
They also point out that smart specialisation depends on good general framework policies (e g. competition, trade policy, labour market policy and education and skills) and horizontal innovation policies (e g.
and competition failures but also opportunities to shift the direction of innovation towards global challenges); and to help build the policy tools for smart specialisation
In most OECD countries, the response to the crisis and to the slowdown in productivity growth has focused on a combination of structural reform policies-labour reform, competition policy, tax policy,
so that it contributes to productivity growth will be increasingly important not only in the medium term but also in the longer term in light of challenges such as demographic change and competition from emerging economies.
The quality of institutions such as government institutions (e g. rule of law, competition, security), social institutions (labour-employer relations) also affect factor endowments.
Imperfect competition, product market and labour market conditions can influence the degree of market integration. Industrial policies (e g. taxes and subsidies) can also play a role in shaping the production structure, for good or bad.
In Australia, the exposure of the grains industry to international competition ensures that innovation driven productivity growth is a constant priority.
the second lowest in the OECD after New zealand. 26 The exposure of the Australian grains industry to international competition ensures that innovation driven productivity growth is a consistent grower priority.
iii) international competition; and iv) The Australian Government invests significant resources to increase food security in other countries as part of its aid budget.
not least since high-tech regions like Brainport are operating in highly dynamic and unpredictable markets subject to globalisation and strong international competition.
Local enterprises typically compete in market segments of standardized goods and services with high price elasticity and increasing competition from countries with even lower production costs (e g.
The innovative core of the nascent cluster structures is underpinned with a growth-and competition-oriented basis by innovation policy instruments.
Another initiative of both States is the common Business plan Competition. Thanks to know-how transfer, coaching, networking and competition,
the entrepreneurs to be are supported through the transformation of their idea into a commercial concept.
Regional commonalities such as the locally available personnel and their qualifications or the science and transfer offers available create improved conditions for joint projects that will also hold their own position in an international competition.
A NIP is about stimulating innovation, competition and investment in know-how; it is not only about creating new economic sectors,
or margins and/or retain more customers than its competition. There can be many types of competitive advantages including the firm‘s cost structure, product offerings, distribution network and customer support.
especially the growing competition of foreign products and services once the commercial barriers had fallen. Romanian SMES are the one of the most affected area.
%demonstrating that Romanian entrepreneurs are aware of the fact that as the competition increases within each activity field,
but also the successful bringing of the new product or service to the market. 2. 5 Innovation and SMES Operations Sustainability According to Casals (2011), globalization of the markets and increasing international competition force SMES
while competition had a strong negative effect, on organizational innovations. Moreover, diversification was associated with more innovation.
Also they confirmed the general view that heavy competition isnegatively associated with innovation and showed that this was more in the case for process and organizational innovations than for product and marketing innovations. 2. 7. 2 Manager's Characteristics Perry et al.
and the capabilities included the level of competition and extent of customer options, geographical co-location, inter-organizational associations and communities of practice, partnerships and alliances, the regulatory context,
in international competition by making well-considered use of their comparative advantages. However, this context has changed 866 R. Smits/Technological Forecasting & Social Change 69 (2002) 861 883 considerably over the past few decades.
how to strike the balance between competition and cooperation, what are the implications for the‘corporate culture'of the far more porous character of the firm,
'and on the other hand because as soon as they do this with some success they are clipped around the ears and accused of‘unfair'competition.
Developments are described often as a competition between mutually relatively independent organisations and/or technologies. The approach taken by Arthur 50 in his‘Competing Technologies'clearly illustrates this.
Collaboration and competition within and among networks, as well as the question of what the consequences are for the strategies of organisations (To pull together
and for the development of rules (and legislation) regarding competition and collaboration in networks, resulting in the public knowledge infrastructure becoming effectively integrated into innovation systems 63.
competition is transformed into a bilateral transaction. In such a situation, vertical integration is adapted best to avoid F. Bougrain, B. Haudeville/Research Policy 31 (2002) 735 747 737 opportunistic behaviours.
Information is the nerve of competition which sets up among firms. Nevertheless, the complexity of information makes it more difficult to master.
This open model has been gaining support due to several factors, such as worker mobility, short product life cycles, globalization and increased competition (Rahman & Ramos, 2010.
in order to contain the monopolistic effects of IPRS and safeguard competition and the dynamics of innovations?
As respondent#1, 5 and 53 note, this has reduced global competition to a few comparable locations, especially in Thailand and the Philippines.
Also, firms that won design competitions (resp.##3, 5, 8, 14,16 of the qualitative survey) are all (very) innovative,
0%Acces to finance 42,4%Time of entrepreneur 25,3%Process Acquisition Acquiring up-to-date knowledge outside Indonesia enables firms to be one step ahead of local competition.
Such radically new products are shown normally at exhibitions, competitions and trade fairs. They potentially open up new market avenues.
There is a lot of competition. Therefore, your whole range of products must be interesting. I offer every natural stone from Indonesia.
Design competitions play an important role in gaining brand reputation. However, to be regarded as a modular player,
but also win many design competitions. In 2011, KREO won 6 of the 15 design prices in Indonesia.
and it may also help to promote sustainable modes of transport and competition between modes.
and would advise that healthy competition and a good education system are enough, and that enterprises themselves would take care of the rest.
which the competition does not have. In fact, only those enterprises which invest now in knowledge creation
also important are the system of tax benefits, the rules on competition law, the institutional environment of innovation, the forms of higher education,
On the one hand, competition is already globalised in the field of knowledge production, on the other hand, the resources are limited
During the last decade competition in the world economy has become more fierce, and not just between economic blocks and countries,
Satisfaction of conditions for strong competition: an important framework condition can be established by applying competition law
and by improving the business environment (e g. by further reducing administrative burden, particularly in case of start-ups and innovative enterprises) Improvement of entrepreneurial skills and spirit:
The development of (company law, competition law, consumer protection, accounting rules, intellectual property protection etc.
but these efforts should be implemented in line with the international competition rules at the same time. 16 David Birch,
and also strengthen the position of national enterprises in international competition. For the purpose of enabling research centres to compete internationally,
It is privileged the task of the state to promote the favourable ratio of competition and co-operation (competition+co-operation=co-opetition) in the field of RDI.
when adaptation is not enough to face the competition. The continuously growing knowledge centres and other modernized R&d capacities in the framework of the strategy will be in time able to satisfy this need.
The stable position in the international competition is guaranteed by the high quality of human resources. 2) This requires such a high-quality training
and the actual funding shall implement the policy objectives in such a way that it shall not conflict with the prevailing rules on funding, competition etc. 85 annexes In case of the planned instruments for intensifying knowledge flow:
o Strengthening creativity, problem solving and innovative thinking in the whole formal and non-formal, informal education sector, o Strengthening the view and instruments of creative team work (workshops, competitions etc.
Given the demographic challenges and increasing international competition that Europe faces in the coming decades
but many other types of small firms are simply inefficient organizations that have been protected from competition.
Moreover, larger markets mean more competition, which in turn spurs firms to invest more in order to innovate and cut costs.
This is why Van Reenen et al. suggest promoting product market competition more integrated European markets, and openness to trade as potential ways to increase ICT-based productivity. 137 Management Differences
and encouraging competition in distribution channels will help promote use as much as any specific efforts to encourage use. 164 It's not enough to make productivity growth in a few sectors an overriding priority:
they may also function as barriers to competition and are not always worth their costs in public welfare.
Instead of seeing ICT adoption as a worldwide competition for the next new Silicon valley, Europe needs to focus on where ICT can make the most difference:
http://www. france24. com/en/20131003-national-assembly-amazon-book-law-free-shipping-competition-ump-socialist-lang/.
Examples of such externalities may include increased competition for skilled labour or R&d spillovers available to other companies.
In developed countries, for example, it is feared that the competition for R&d resources has an impact on domestic R&d expenditures and on the domestic knowledge base.
Nevertheless, the majority of sectors can be described as high-tech industries in which technological competition and, hence,
i e. it has usually been shaped by a one-sided perspective defined by the notion of competition.
Rather than designing policies driven by the notion of competition for innovation recourses and the corresponding payoffs,
Governments can also encourage innovation through appropriate intellectual property and competition laws and, more generally, through the development of a business environment conducive to innovation.
The role of government in relation to collaborative innovation is to encourage, through appropriate competition laws, which permit shared patent pools for potential innovators under certain conditions,
These niches may hold the best chances to thrive against heavy competition from the USA and elsewhere in mainstream web services.
It substitutes trust and co-operation for competition over every morsel of IPR. The traditional route to innovation and its intellectual capital implies that a company innovates on its own.
and its is a way of colluding to control a market by restricting competition. For the start-up SME
in terms of competition law for patent pools. However if a small company can participate, the increased appropriability or absorptive capacity,
not only through appropriate competition laws which permit shared patent pools at‘reasonable'costs26 to potential innovators
and commercial practices of a decade ago are revisited in the May 2012 letter from the Competition Commissioner,
22may 2012) prior to a potential charge sheet. 26 What is reasonable requires competition authorities to become involved to ensure patents are used not‘to hold industry to ransom'by extortionate royalties as has happened in various ICT sub-sectors using patent IPR
not only through appropriate competition laws which permit shared patent pools to potential innovators but also in endorsing open source IPR,
Aligning Patent Notice and Remedies with Competition. A Report of the Federal trade commission, WASHINGTON DC, USA, March 2011.
not the industry's. So its innovations are centred far more user than its competition, building a fierce customer loyalty and brand power.
and in homogeneity of business services across the EU, compared to a single set of business services in the USA-e g. availability of low cost parcel carriers in competition with the incumbent post office, at the level of the USA.
In 1999 it tried to set up it own auction website, directly in competition with ebay.
compared to those European national pure social networking sites in competition with Facebook. For example, the Studivz group of three websites were collectively the German market leader with 13. 8m users,
and finally abandoned in August 2010 amidst rising competition for portable electronic displays and e-readers.
but ultimately Kodak was unable to 89 move fast enough to stave off the Japanese competition. Throughout the last decades of the twentieth century
Governments can also encourage innovation through appropriate intellectual property and competition laws and, more generally, through the development of a business environment conducive to innovation.
It is an efficient way to understand their position in global competition, and identify areas which needs improvements.
Regions may in varying degrees feel the forces of global economic competition. Then again why should regional policymakers care?
Roadmaps for weak projects A strategy for the valley of death Technology foresight taking global competition into consideration Joint development Making priorities(=hard choices) Decide to do something new
and competition and knowledge privatization of the other. 12 On one hand, new paradigm creation requires new infrastructures, value chains, technological standards and support industries
Facilities-based infrastructure competition 7 Overall assessment 8 Glossary 9 1 Introduction 11 2 Key goals of the Digital Agenda for Europe (DAE
) 7 Facilities-based infrastructure competition 68 7. 1 The Regulatory Framework and facilities-based competition 69 7. 2 Societal welfare benefits from facilities
-based competition 70 7. 3 Facilities-based competition as a stimulus for fibre-based NGA deployment 71 7. 4 Prospects for achieving sufficient facilities-based competition 72 References 75 III FIGURES
Figure 1: Global Internet consumer traffic growth trends over time 16 Figure 2: Global consumer Internet traffic 17 Figure 3:
Facilities-based competition and NGA deployment 72 IV Rethinking the Digital Agenda for Europe (DAE) TABLES Table 1:
thus enhancing competition. Wireless also functions in a useful complementary role (1) to provide coverage in low density and/or high cost areas,(2) as a competitive alternative to fixed network solutions,
may be greater in countries where competition is more effective. The goals of the Digital Agenda for Europe The goals of the Digital Agenda for Europe (DAE) are well known:(
rather than a gain in facilities-based competition, is a separate question. The Feijoo/Barroso and EIB studies seem to be in reasonably good agreement for Spain,
Facilities-based infrastructure competition The European regulatory framework for electronic communications has advocated always an approach to regulation that is,
and for infrastructure competition, it is striking that the Digital Agenda for Europe contains only a single reference to cable television and that an altogether backward-looking statement.
Cable provides facilities-based infrastructure competition. The value of infrastructure competition is recognised explicitly in the European Regulatory Framework.
Infrastructure-based competition is important in the long term. A European network environment where only a single medium provides last mile access is a European network environment where detailed regulation to address market power is needed forever.
Cable tends to enjoy low unit costs in providing broadband services at whatever speed. This puts pressure on incumbents to innovate,
Infrastructure competition is a valuable complement to SMP-based regulation. For instance it can help to correct for any errors in regulatory price-setting.
A recent analysis by Feijoo and Barroso of potential NGA deployment in Spain distinguishes between areas of 2+competition, where the fixed network,
versus 1+competition, where only fixed and mobile compete. Facilities-based inter-modal competition even if limited to discrete geographic areas,
may have the tendency to constrain prices to reasonable levels across much larger geographic areas. 8 Rethinking the Digital Agenda for Europe (DAE) Overall assessment A more technologically neutral approach to the DAE,
thus enhancing competition. Wireless also functions in a useful complementary role (1) to provide coverage in low density and/or high cost areas,(2) as a competitive alternative to fixed network solutions,
thus enhancing competition. Wireless also functions in a useful complementary role (1) to provide coverage in low density and/or high cost areas,(2) as a competitive alternative to fixed network solutions,
thus enhancing competition. The key issues addressed in this study are: To what extent is cable coverage available in Europe today?
may be greater in countries where competition is more effective. Caution is appropriate in interpreting any of these results.
These are all, not coincidentally, countries with substantial competition between the fixed telecommunications network and cable.
where cable competition is strong, also does quite well by this measure. At the same time, countries where cable is absent do not necessarily perform poorly,
It may well be that these differences in broadband surplus are primarily a function of the level of competition.
A strong cable presence contributes strongly to competition; however, competition may be weaker than otherwise expected for other reasons (for example, an institutionally weak regulatory system),
or stronger than otherwise expected due to effective use of competitive remedies such as unbundled local loop (ULL).
Study on the Implementation of the existing Broadband Guidelines Final Report DG Competition; December 7; available at:
http://ec. europa. eu/competition/consultations/2011 broadband guidelines/index en. html 33 Vectoring has the potential for very significant bit rate increase,
As with any shared medium, competition for resources with other users can introduce delay, affecting the performance seen by the user.
rather than a gain in facilities-based competition, is a separate question. The Feijoo/Barroso and EIB studies seem to be in reasonably good agreement for Spain,
rather than a gain in facilities-based competition, is a separate question. 83.4 55.9 142.4 103.9 0 20 40 60 80 100 120 140 160 Base
Passed%2010 Savings/HH Base case Savings/HH Advanced case 68 Rethinking the Digital Agenda for Europe (DAE) 7 FACILITIES-BASED INFRASTRUCTURE COMPETITION Key
and for infrastructure competition, it is striking that the Digital Agenda for Europe contains only a single reference to cable television and that an altogether backward-looking statement.
Cable provides facilities-based infrastructure competition. The value of infrastructure competition is recognised explicitly in the European Regulatory Framework.
Infrastructure-based competition is important in the long term. A European network environment where only a single medium provides last mile access is a European network environment where detailed regulation to address market power is needed forever.
Cable tends to enjoy low unit costs in providing broadband services at whatever speed. This puts pressure on incumbents to innovate,
Infrastructure competition is a valuable complement to SMP-based regulation. For instance it can help to correct for any errors in regulatory price-setting.
A recent analysis of potential NGA deployment in Spain distinguishes between areas of 2+competition, where the fixed network,
versus 1+competition, where only fixed and mobile compete. Facilities-based inter-modal competition, even if limited to discrete geographic areas,
may have the tendency to constrain prices to reasonable levels across much larger geographic areas. Policy and regulation in Europe and in Member States alike have put a strong emphasis on the maintenance of procompetitive remedies for fibre-based solutions (FTTN/VDSL
The results of fibre-based NGA deployment internationally in terms of competition have, however, been mixed decidedly to date.
(NBN) in Australia comes at the expense of inhibiting inter-modal competition in order to ensure that the NBN can be profitable. 7. 1 The Regulatory Framework
and facilities-based competition The European Regulatory Framework has advocated always an approach to regulation that is,
in particular those designed to ensure effective competition, national regulatory authorities do likewise. Article 8 (5) goes on to say:
safeguarding competition to the benefit of consumers and promoting, where appropriate, infrastructure-based competition; The Regulatory Framework as enacted in 2002-2003 is grounded,
moreover at its core in the belief, or at least the hope, that increasing competition would in time obviate the need for regulation that primarily responds to the presence or absence of Significant Market Power (SMP).
Yet last mile market power will not disappear unless there is infrastructure-based competition. The DAE speaks of the need for providing the right incentives to stimulate private investment,
complemented by carefully targeted public investments, without remonopolising our networks; however, it seems to disregard any concerns that a European network environment where only a single medium provides last mile access is a European network environment where detailed SMP-based regulation is needed forever.
and for infrastructure competition, it is striking that the Digital Agenda for Europe contains only a single reference to cable television
can be very cost-effective in delivering higher download capacity. 82 7. 2 Societal welfare benefits from facilities-based competition The values of competition are recognised well in the economic literature,
Competition tends to promote lower prices for consumers, greater consumer choice, and incentives for service providers to operate efficiently
Cable provides facilities-based infrastructure competition in contrast to the competition provided by means of regulatory remedies based on Significant Market Power (SMP) under the Framework.
The value of infrastructure competition is recognised already explicitly in Article 8 of the Framework Directive,
which establishes the high-level regulatory principles that National Regulatory authorities (NRAS) are to follow. The national regulatory authorities shall apply objective, transparent,
non-discriminatory and proportionate regulatory principles safeguarding competition to the benefit of consumers and promoting, where appropriate,
infrastructure-based competition 83 Facilities-based competition from cable is not sufficient to enable lifting of regulation from telecommunications incumbents,
Notably, since facilities-based competition is market-based, and does not depend on regulated prices, it can help to correct any possible errors that might be made in regulatory price setting. 81 Neelie Kroes Vice-president of the European commission responsible for the Digital Agenda Giving Europe a Mobile Broadband Boost, 2012 Mobile
and to operate efficiently. 7. 3 Facilities-based competition as a stimulus for fibre-based NGA deployment It has long been assumed that the presence of cable serves to stimulate fixed telephony network operators to deploy fibre-based ultra-fast broadband.
NGA Progress report, WIK, 1 march 2012.72 Rethinking the Digital Agenda for Europe (DAE) 7. 4 Prospects for achieving sufficient facilities-based competition Deployment of a mix of technologies has the benefit
of enabling inter-modal facilitiesbased competition in broadband markets. A recent analysis of potential NGA deployment in Spain (see Figure 29) 88 distinguishes between areas of 2+competition, where the fixed network,
cable and mobile all compete, versus 1+competition, where only fixed and mobile compete. Facilities-based intermodal competition,
even if limited to discrete geographic areas, may have the tendency to constrain prices to reasonable levels across much larger geographic areas.
Figure 29: Facilities-based competition and NGA deployment Source: Feijoo and Gomez-Barroso (2010a. 89 88 Feijoo, C.,Gómez-Barroso, J.-L.,Ramos, S. and R. Coomonte (2011a;
and Feijoo, C. and J.-L. Gómez-Barroso (2010b. 89 Feijoo and Barroso, op cit. Note that the figure shows a maximum speed of 30 Mbps
Study on the Implementation of the existing Broadband Guidelines, Final Report DG Competition, December 7; available at:
http://ec. europa. eu/competition/consultations/2011 broadband guidelines/index en. html. Nooren, P.,Marcus, J. S. and I. Philbeck (2012:
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