EXECUTIVE SUMMARY 11 In order to understand the characteristics of cluster management organizations and their interaction with cluster stakeholders in more detail,
The size of a cluster does not necessarily depend on the size of the national economy.
Although the economies of Germany and Denmark are very much different in terms of the numbers of economic players,
The size of clusters in Poland is given quite small the size of the Polish economy;
Eventually there is of course a size limit set by the size of the economy as it has an influence on the number of players in economic sectors in
With the exemption of Iceland in all countries industry (SME and Non-SME) is the dominating stakeholder.
and universities account for 24 respectively 11 per cent of all stakeholders). 1. 2. 4 REGIONAL CONCENTRATION OF CLUSTERS According to the definition of Michael E. Porter clusters are geographic concentrations of interconnected companies
which facilitates personal interactions through frequent meetings of the cluster stakeholders. All clusters that were benchmarked show a high regional density with a median value of at least 75 per cent.
Clusters and the New Economics of Competition, in: Harvard Business Review, November/December 1998, p. 78 19 Figure 5:
Life Long Learning Aspects for the Cluster Management Team Stability and Continuity of Human resources of the Cluster Management Team Stability of Cluster Participation Clarity of Roles Involvement of Stakeholders
Stability and Continuity of Human resources of the Cluster Management Team Stability of Cluster Participation Clarity of Roles Involvement of Stakeholders in Decision making Processes Direct Personal Contacts Between the Cluster Management
Structural factors such as size, age, governance and the type of agenda setter (industry or research stakeholders) have an effect on the spectrum
national or regional economies are able to reply to the market failure of information asymmetries.
It can therefore be assumed that due to the corrective influence of clusters within an economy, many countries have set up their specific cluster program.
How can cluster programs support the development of clusters that can compete in a global economy?
Knowledge Economists Policy Brief No. 9. European commission. 40 their relevance on the policy agenda and their coordination with other funding programs, support of cluster internationalization, the role of program owners
Common to all programs is their rationale of increasing the competitiveness of the national economy through the facilitation of collaboration between companies and research stakeholders.
and acceleration of economic growth To create a favorable business climate with improved conditions for business development
and to create radical innovations FRANCE Grappe d'entreprises To develop business clusters in economic sectors with weak R&d activity Les Pôles de Compétitivité To boost the competitiveness of The french economy
and long term support of economic growth and employment Zentrales Innovationsprogramm Mittelstand Netzwerkprojekte (ZIM NEMO) Development of innovation capacities and competitiveness of SME through the support of innovation networks HUNGARY Cluster Development
and investment in research and innovation in the economy ITALY Innovation Clusters Piedmont To identify firms'technological needs
educational institutions and the public sector POLAND Polish Cluster Support Increased competitiveness of the Polish economy through the support of the establishment and development of clusters at the national and regional level PORTUGAL COMPETE To improve the sustained competitiveness
of the Portuguese economy in the context of the global market, intervening on strategic dimensions such as innovation, scientific and technological development, internationalization,
either setting up cluster management organizations from scratch or towards the promotion of particular industries that are driven already cluster to improve the global competitiveness of industry sectors that are relevant for the national economy.
If there are such strategic objectives then they are motivated by the interest in a consolidated cluster landscape (e g. in the case of Innovation Networks Denmark it was decided to limit the number of nationwide clusters) or in the concentration of efforts on the most important business sectors of the economy (e g.
OF COVERING THE MOST IMPORTANT BUSINESS SECTORS OF THE ECONOMY? AUSTRIA Cluster Program Lower Austria Yes Yes Yes BELGIUM Competence Centres-Light Structures No No Yes Cooperative innovation network integrated project No No Yes CZECH REPUBLIC Cooperation Clusters, Czech republic Yes No No DENMARK
A wider spectrum and a higher frequency of services for the cluster members which in turn trigger economic activities e g. of SME (for further details about the link between services
Although there are certainly restrictions for such an approach e g. in larger countries it can make economic sense to have several clusters in a specific thematic area due to the regional concentrations of relevant cluster stakeholders,
Clusters and the New Economics of Competition, in: Harvard Business Review, November 1998, p. 78 52 that cluster management organizations and their affiliated members know best which projects they should focus on to create value or
Icelandinnovation Clusters Piedmont, Italycluster Program, Latviainnocluster LT, Lithuaniainnocluster LT+,Lithuanialuxembourg Cluster Initiativenorwegian Centres of Expertise (NCE), Norwayarena Program, Norwayinnovative Economy Operational
III) Cluster programs that focus on the commercial exploitation of the R&d potential of a country's economy The third type of cluster programs is characterized by a focus on the establishment of clusters
Although these type of program shares the objective of promoting economic growth with KEY FINDINGS 1. Different types of cluster programs serve different purposes. 2. Most cluster programs feature high on the government's agenda. 3. Coordination
Support to innovative industrial cluster organizations, Slovakia Luxembourg Cluster Initiative CLUSTER PROGRAMS THAT FOCUS ON THE COMMERCIAL EXPLOITATION OF THE R&d POTENTIAL OF A COUNTRY'S ECONOMY Strategic Research Program for Centres of Excellence
Furthermore, many members of Go-Cluster are funded also by other programs of the Federal government such as the Zentrales Innovationsprogramm Mittelstand (ZIM) of the Federal Ministry of Economics and Technology (BMWI.
and are considered as being important from an economic policy point of view. 14 The Zentrale Innovationsprogramm Mittelstand (ZIM)( Central Innovation Program SME) of the Federal Ministry of Economics and Technology supports innovation activities through three subprograms:
and further developing the competitiveness of the country's economy in the global context. From the survey it can concluded that all program owners agree on the importance of internationalized clusters
In turn this increases the willingness of companies and other stakeholders such as research institutions or government bodies to engage financially in international cluster activities.
and that have an impact on the national economy. In this regard an active involvement in the development of individual clusters has two principal dimensions:
and that have an impact on the national economy. Therefore, the majority of program owners argued to focus programs on cluster excellence instead of numbers of clusters.
-and the overall impact of the cluster support on the national economy. The challenge of measuring impacts lies in the complexity of the huge array of variables that decide on the actual effect of funding.
The Lower Austrian regional Government department for Economy, Tourism and Technology has developed and implemented a system of different monitoring
and extend the global competitiveness of the European union's economy that is the most important conclusion from the benchmarking of 261 cluster management organizations.
and that have an impact on the national economy. In this context is it important to support cluster management through targeted,
The support should focus on those industries in which a country's economy shows pronounced comparative advantages on the global market.
He holds a Master's degree in economics from the University of Copenhagen and a Phd degree in international economics from Copenhagen Business school.
Luminita Nicolescu, Ciprian Nicolescu ISSN 2071-789x RECENT ISSUES IN ECONOMIC DEVELOPMENT Economics & Sociology, Vol. 5, No 2a, 2012 71 Luminita Nicolescu
Luminita Nicolescu, Ciprian Nicolescu ISSN 2071-789x RECENT ISSUES IN ECONOMIC DEVELOPMENT Economics & Sociology, Vol. 5, No 2a, 2012 72 that analyse innovations in SMES
and to comment on the influence of the recent economic crisis on them. It has a descriptive character, offering a general image of innovations in Romanian SMES, ending with a couple of advices for policy and organisational decision making.
Laforet and Tann (2006) discuss the different streams in SMES innovation research (as being oriented economics stream, the organization-oriented stream and the project-oriented stream),
DEVELOPMENT Economics & Sociology, Vol. 5, No 2a, 2012 73 Mitchell, 2007) and concluded that innovation studies in SMES must be highly contextualized
, cultural attitudes to bribery, lack of transparency, informal economy), environmental barriers and skill barriers. A completely different situation was portrayed for SMES in the food and drink industry in UK,
The Romanian economic context economic crisis and effects Romania was and still is influenced by the economic evolutions at the world level.
The economic crisis that hit the world in 2007 was also felt by the Romanian economy,
even though with a particular time lag. The global financial crisis that determined the collapse of a number of financial institutions,
the closing down of many companies and consequently the loss of jobs affected many economies, including the Romanian one.
In an unstable international economic context, the first obvious sign of the economic crisis were felt in Romania in 2009,
when it took place a drastic contraction of the economic activity reflected in the decrease of the real GDP with 6. 6%.The decreasing trend continued in 2010,
Inflation increased immediately in 2008 with 3%from 4. 8%in 2007 to 7. 8%in 2008 and maintained relatively high levels up to 2011,
when it was 4%and Luminita Nicolescu, Ciprian Nicolescu ISSN 2071-789x RECENT ISSUES IN ECONOMIC DEVELOPMENT Economics & Sociology, Vol. 5, No 2a,
Due to the economic crisis the level of economic activity diminished in Romania in the last years and SMES had to adapt their level of business to the market conditions from both the internal and the external markets.
as in the last years, hit by the economic crisis many SMES went from the medium to small size due to the decrease in the number of employees.
2071-789x RECENT ISSUES IN ECONOMIC DEVELOPMENT Economics & Sociology, Vol. 5, No 2a, 2012 75 economic branches TOTAL number Industry 26.44%17.17%17.50%21.41
Ciprian Nicolescu ISSN 2071-789x RECENT ISSUES IN ECONOMIC DEVELOPMENT Economics & Sociology, Vol. 5, No 2a, 2012 76 Sources:
when the Romanian economy had an ascending economic trend, the peak being registered in 2006/2007
Ciprian Nicolescu ISSN 2071-789x RECENT ISSUES IN ECONOMIC DEVELOPMENT Economics & Sociology, Vol. 5, No 2a, 2012 77 last year.
However, starting 2007/2008 once the global economic crisis had begun the trend towards introducing new technologies decreased.
illustrating the negative influence of the economic crisis on innovative activities in Romanian SMES. Other negative tendencies include the doubling of the percentage of SMES that have not conducted innovative activities at all,
who are focused more on short term survival rather than innovating in a period of economic crisis. The level of investment in innovative activities illustrates the propensity towards implementing organizational changes that would sustain the future growth of the organization.
This trend is attributable also to the economic crisis. On overall, in the analyzed period, the percentage of SMES investing g highly in innovations is small
Overall, financial difficulties are common for Luminita Nicolescu, Ciprian Nicolescu ISSN 2071-789x RECENT ISSUES IN ECONOMIC DEVELOPMENT Economics & Sociology, Vol. 5, No 2a
Ciprian Nicolescu ISSN 2071-789x RECENT ISSUES IN ECONOMIC DEVELOPMENT Economics & Sociology, Vol. 5, No 2a, 2012 79 Sources:
Luminita Nicolescu, Ciprian Nicolescu ISSN 2071-789x RECENT ISSUES IN ECONOMIC DEVELOPMENT Economics & Sociology, Vol. 5, No 2a, 2012 80 After an initial increase
the web-based Luminita Nicolescu, Ciprian Nicolescu ISSN 2071-789x RECENT ISSUES IN ECONOMIC DEVELOPMENT Economics & Sociology, Vol. 5, No 2a, 2012 81
not only as fallout of the economic crisis, but also as potentially improved internal communication and business mechanisms within the company.
Generally speaking, SMES are perceived to lag behind large Luminita Nicolescu, Ciprian Nicolescu ISSN 2071-789x RECENT ISSUES IN ECONOMIC DEVELOPMENT Economics & Sociology, Vol. 5, No 2a, 2012
The economic crisis had a negative impact on them in the last few years. Investments for innovations decreased in time in SMES,
especially since the economic crisis reached Romania as well, which ended up in 2011 with almost half of SMES without any investible surplus at all for innovations. c) innovations decreased in the last few years in Romanian SMES.
Luminita Nicolescu, Ciprian Nicolescu ISSN 2071-789x RECENT ISSUES IN ECONOMIC DEVELOPMENT Economics & Sociology, Vol. 5, No 2a, 2012 83 Based on this general
as a country affected by the economic crisis much like the whole Europe and the practically the entire globe world, is seen also as having negatively impacted SMES'activity
since the start of the economic crisis with more than 35%of SMES not being involved at all in innovative activities after 2009. b) in spite of the generally decreasing trends in innovative activities in SMES,
b) as one way to better cope with the economic crisis, by assimilating cheaper ways of doing business.
a) offers information about innovative activities in SMES, seen at a general level, within an economy wide sample,
Luminita Nicolescu, Ciprian Nicolescu ISSN 2071-789x RECENT ISSUES IN ECONOMIC DEVELOPMENT Economics & Sociology, Vol. 5, No 2a, 2012 84 References Avermaete
Luminita Nicolescu, Ciprian Nicolescu ISSN 2071-789x RECENT ISSUES IN ECONOMIC DEVELOPMENT Economics & Sociology, Vol. 5, No 2a, 2012 85 Ngugi, K
Our goal is to develop an innovation-driven economy that maintains competitive advantage and increases productivity.
We have identified ten key policy areas that underpin the Government's approach to innovation in support of the knowledge economy and enterprise.
and a commitment to innovation that is unmatched by competing economies. In short, our ambition is to put innovation at the core of our policies and strategies for the future,
In this Innovation Policy Statement we identify ten key policy areas where innovation will be exploited in support of enterprise and the knowledge economy.
and will enhance the development of a knowledge-based economy. Building a world-class research system Knowledge creation Innovation in Ireland 2008 Main aims of the Strategy for Science,
and equip them with generic and transferable professional skills that are relevant to a modern knowledge-based enterprise economy;
R&d expenditure Gross expenditure on R&d (GERD) across all sectors of the economy reached €2. 33 billion in 2006,
Innovation in Ireland 20087 One of the most important assets in Ireland's innovation system and vital in a small economy with limited resources is the quality of the public research infrastructure and its links to industry.
so that it delivers optimal returns to The irish economy. Enterprise Ireland coordinates Irish participation in the EU Framework Programmes
Better skilled and better educated employees are good for the economy as a whole and for the firms that employ them.
The National Framework of Qualifications Continuously updating the skills of our workforce in a knowledge economy requires a flexible framework,
robust enough to respond to the needs of the economy, and, at the same time, provide authoritative accreditation of qualifications in which all stakeholders can have confidence.
The National Framework of Qualifications (NFQ) provides a single unified framework with the potential to cover all awards in the State.
Towards a National Skills Strategy sets out a vision of Ireland in 2020 in which a well-educated and highly skilled population contributes to a competitive, innovation-driven, knowledge-based economy.
and develop all-island business networks in sectors that are considered to be especially important for future economic growth,
and more successful economies and help increase innovation and productivity levels of their constituent parts.
confidence and consistency to all stakeholders and underpin Ireland's attractiveness as a location for R&d and its subsequent exploitation.
The Government and state agencies recognise the great potential value of innovation in services to The irish economy.
Tapping the entrepreneurialskills of immigrantsimmigrants are making a significant contribution to Irish society and economy.
and economic growth The State agencies are working to maximise the opportunities presented by this new pool of talent,
This has led to a series of detailed programmes that have delivered unprecedented levels of economic stability, social cohesion and industrial peace.
The key message of the National Workplace Strategy is that the quality of Irish workplaces is critical to Ireland's transition into an even more dynamic, highly skilled, innovative and knowledge-based economy.
Enhancing competition within Ireland's domestic economy is critical to improving the cost competitiveness of internationally-trading Irish-based firms.
and have described the substantial progress that we have made in building capacity and in drawing out the latent imagination and creativity within The irish economy.
An important shift has occurred from the managed to the entrepreneurial economy, associated with a fall in the importance of economies of scale in production, management, finance and R&d.
It is characterised by a series of trends encompassing the emergence of the knowledge economy, open innovation, global connections, non-technological innovation, the Silicon valley Business model and social entrepreneurship and social innovation.
New firms and innovating SMES are seen best as agents of change in the economy, introducing new products and services and more efficient ways of working.
They underpin the adaptation of our economies and societies to new challenges and drive economic development.
Many empirical studies have shown the aggregate relationships between entrepreneurship and SME activity and economic growth and job creation.
and business start-up rates are associated with more rapid economic growth (Audretsch and Thurik, 2001; Audretsch and Keilbach, 2005;
as new and small firms take up labour released by downsizing elsewhere in the economy and increase national and local competitiveness (Neumark et al.,
and economic crisis since it is clear that policies enabling innovation in new and small businesses will have benefits not just for improving products
The chapter starts by examining how global trends towards the knowledge economy, open innovation, global connections and non-technological innovation and the emergence of national and regional economic models and new types of social innovation have increased the importance of SMES and entrepreneurship to innovation.
The change can be resumed as a shift from the Managed economy to the Entrepreneurial Economy (Thurik, 2009;
In presenting the shift from the managed to the entrepreneurial economy, Thurik (2009) distinguishes between three major historical phases of innovation and contrasts the importance of SMES and entrepreneurship in each. 1. The Schumpeter Mark I regime.
In this new environment, established and large firms were seen to outperform new and smaller firms in innovation because of a close link between infirm R&d spending and innovation. 3. The Entrepreneurial Economy.
From the late 1970s to today the structures and operations of advanced economies have again been changing.
and entrepreneurship in today's economy is reduced the importance of economies of scale and scope in production,
Thus a major force in the emergence of the entrepreneurial economy has been a reduction in the product standardisation that was the force of large firms in the middle of the 20th century.
i e. the capacity of firms and economies to specialise, able to produce output for niche markets,
the knowledge economy; open innovation; global connections; non-technological innovation; the Silicon valley Business model, and social innovation and social entrepreneurship.
The knowledge economy One of the features of the transition from the 20th to the 21st century has been the emergence of the knowledge economy,
and hence a shift in the specialisation of advanced-economy firms towards more knowledge-based activities that are tied more closely to local knowledge resources and capabilities.
the knowledge economy is not just an advanced world phenomenon. Emerging economies as well are engaging more with science
and technology and ideasbased production as firms around the world all seek to achieve product differentiation and greater productive efficiency.
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.
Some of the ideas driving economic growth may be the result of scientific breakthroughs in large firms and universities,
Indeed, one of the reasons that new start-ups and small firms have become more important today is that innovation in the knowledge economy is coming from creativity and the unexpected,
because the services sector has seen a dramatic rise in its share of economic value added in recent years (rising for example from 55%to 70%of Japanese
the discussion has been oriented implicitly around the creation of economic value added. But a further ramification of a broader notion of innovation is need the to consider its social contribution.
But state budgets are not keeping pace with the growing needs and expectations, particularly with the consequences of the global financial and economic crisis,
This too can be seen as part of the above-mentioned shift from the managed to the entrepreneurial economy.
and a central role of unions and employers in regulating the economy and society in partnership with government.
Taken together, the trends outlined above the shift from the managed to the entrepreneurial economy, the growth of the knowledge economy
What has emerged is an economy in which SMES and entrepreneurship are now critical players in a broader, more distributed innovation process.
The major function of SMES and entrepreneurship in innovation is the introduction of advances in products, processes, organisational methods and marketing techniques into the economy.
and adopting incremental innovations that bring the economy closer to its technological frontier. The ideas for these innovations may be developed internally by the SME or start-up,
It is entrepreneurs who bring about change in an economy by providing new combinations: new or improved goods, methods of production, markets, sources of supply of inputs, organisation of an industry,
They disrupt markets, leading to long-run evolutionary growth in the economy. l The entrepreneur as an opportunity identifier.
although Drucker's main focus is more on firm strategy and competitiveness than aggregate economic growth. l The entrepreneur as a breakthrough innovator.
Like Schumpeter, Baumol (2002) adopts a dynamic framework examining the relationship between entrepreneurship, innovation and economic growth.
l Entrepreneurs are those persons (business owners) who seek to generate value, through the creation or expansion of economic activity,
processes or markets. l Entrepreneurial activity is the enterprising human action in pursuit of the generation of value, through the creation or expansion of economic activity,
It is oriented this innovation activity that promotes economic growth and solves social problems. In order to understand more fully how start-up enterprises
Creative destruction Venture creation and SME growth renew economies by forcing the contraction, exit or upgrading of incumbent competitors.
thus increasing the average productivity of the economy and driving economic growth. There is also an indirect impact,
At the same time productivity may be enhanced as new firms bring better products and services and better technologies into the economy.
which many economists understand economic growth. Investments in new knowledge are seen to spill over in part to other agents,
and economic growth through their role in promoting knowledge spillovers. The relationship may involve not just the role of new start-ups in exploiting knowledge themselves but also the role of new enterprises and SMES as participants in knowledge exchange networks within innovation systems, stimulating knowledge transfers from universities and other
and economies combine them to varying degrees, the distinction serves to highlight the need for a holistic innovation approach that recognises the importance of both kinds of processes and differences in the types of barriers that affect SMES and start-ups under each.
This state of affairs arises as a consequence of the shift from the managed to the entrepreneurial economy
innovation policy in the entrepreneurial economy must expand to include new types of actions for entrepreneurship and SMES.
and excluding large parts of the non-technology economy. It is typified by the European union Barcelona Summit headline goal of achieving an increase in the proportion of European GDP invested in research and development from 1. 9%in 2002 to 3. 0%in 2010.
There should not be unnecessary obstacles to SMES and entrepreneurship in the institutions of the economy such as taxation, social security, bankruptcy legislation, competition policy,
Furthermore, the process of creative destruction is pronounced most in periods of economic crisis and recovery, as the global economy is 1. INTRODUCTION SMES,
ENTREPRENEURSHIP AND INNOVATION OECD 2010 39 experiencing today. As the incumbent firm stock is contracted, room is created for innovative firms to enter
and investment subsidies and the improvement of productivity by helping new and small firms to carry innovations into the economy. l Access to finance.
One of the contributions of new firms and SMES to the economy is breakthrough innovation.
which could contribute more to the economy if they begin to innovate incrementally and strengthen their non-technological innovation.
and constraints across 40 economies and examines the major and new policies that have been introduced. Among the issues identified, it underlines the relevance of three major policy areas highlighted in this introduction,
the Knowledge Filter and Entrepreneurship in Endogenous Growth, Centre for Economic policy Research Discussion Paper No. 4783, Centre for Economic policy Research:
An Empirical Assessment, Centre for Economic policy Research Discussion Paper 5409, Centre for Economic policy Research, London.
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Audretsch, D.,M. Keilbach and E. Lehmann (2006), Entrepreneurship and Economic growth, Oxford university Press, Oxford. Audretsch D. and R. Thurik (2001), Linking Entrepreneurship to Growth, OECD Science, Technology and Industry Working papers, 2001/2, OECD, Paris. Audretsch, D. and R. Thurik (2004
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Factor Productivity and the Role of Entrepreneurship, Jena Economic Research Papers 2008-19, Friedrich Schiller University and the Max Planck Institute of Economics, Jena.
Henrekson, M. and D. Johansson (2008), Gazelles as Job Creators A Survey and Interpretation of the Evidence, IFN Working Paper 733, Research Institute of Industrial Economics, Stockholm.
in J. Potter (ed.),Entrepreneurship and Higher education, Ch. 10, pp. 235-254, OECD, Paris. Lundvall, B. and S. Borràs (1997), The Globalising Learning Economy:
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Sabel, C. 1989), Flexible Specialization and the Re-Emergence of Regional Economies, in P. Hirst and J. Zeitlin (eds.
Firm Formation and Economic growth Paper No. 1, Ewing Marion Kauffman Foundation, WASHINGTON DC. Stuart, T. 2000), Inter-organisational Alliances and the Performance of Firms:
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