economics

Synopsis: Entrepreneurship: Economics: Economics:

Policies in support of high-growth innovative SMEs - EU - Stefan Lilischkis.pdf

and Philipp Koellinger, Assistant professor in Economics, Erasmus University Rotterdam, Netherlands. Disclaimer Neither the European commission nor any person acting on behalf of the Commission is responsible for the use

growing enterprises as they are seen as a key driver of economic growth and employment. Europe has performed relatively badly in generating high-growth innovative companies that quickly become global leaders.

Section 3. 2.)Theoretical arguments for SME support Policies promoting high growth of innovative SMES should be in accordance with principal insights of economic theories.

The government's 2009 New Growth Strategy identifies SMES as an engine for future high economic growth.

gorillas. 1 These enterprises are seen as important drivers of economic growth, employment and social wellbeing. There is also an increased interest of policy makers in fostering innovation,

Is it more efficient (in terms of economic growth and job creation) to support all SMES"a little bit, "or to concentrate efforts on those with the highest growth potential?(

i e. enterprising human action in pursuit of the generation of value through the creation or expansion of economic activity. 5 A certain share of high-growth enterprises are defined so-called gazelles

study guide for this Policy Brief. 13 Deardorff's Glossary of International Economics, policy, accessed 2 may 2010.

Philipp Koellinger, Assistant professor in Economics at Erasmus University Rotterdam. He is associate editor of the Small Business Economics journal

and has research interests and a sound publication track record in the fields of entrepreneurship and innovation.

and grow (motivation), access to markets (output) as well as infrastructure and economic stability (framework). 14 This framework is conducive to the analysis of barriers to innovation

Favourable framework conditions for innovation and growth require a sound infrastructure as well as economic stability. Infrastructure includes physical infrastructure for transportation, communication (e g. broadband), energy/water as well as institutions for security, health education and the legal system.

Economic stability and growth are conducive to future revenues and thus foster companies'investment into growth. 16 Last but not least

) Market rules Standards Framework conditions Infrastructure Facilities for transport, communication, energy/water Institutions for security, health education, legal system (e g. employment and bankruptcy law) Economic stability Right

The current economic crisis hit the US, home to many big young global leaders, worse than many European countries

p. 2. Policies for high-growth innovative SMES v1. 6 22 3. 3 Theoretical foundations of SME policy On the importance of a theoretical foundation for economic policy

such policies should be in accordance with principal insights of theories of economic policy. Otherwise such policies run the risk of wasting scarce resources

Some schools of economic theory assume that governments act in their own interests. For example governments may seek to increase the probability for being reelected

in order to promote economic growth, therefore, what really is needed are new jobs and new growing firms...but high growth can be misperceived a indicator Policy makers should

In terms of economic theory coaching is a private good so that public support for facilitating coaching cannot necessarily be grounded on market failure.

114 In light of the economic crisis, Singaporean business associations started the Financial Facilitator Programme (FFP) in January 2009,

Is it more efficient (in terms of economic growth and job creation) to support all SMES"a little bit, "or to concentrate efforts on those with the highest growth potential?

Getting economic growth and jobs creation from entrepreneurs is not a numbers game. It is about encouraging the formation of high quality, high growth companies.

and enhancing economic growth. 145 141 For example, the case study about Korea in this Policy Brief (see section 5. 1) mentions that the Korean government developed more than 100 different SME policy measures,

Canada is often in the shadow of its big neighbour, the USA, in terms of economic policies, but deserves attention with regard to high-growth SMES.

It is one of the few developed countries that could avoid a longer recession during the economic crisis,

is heavily suffering from the economic crisis and the 2011 Earthquake, and has dedicated no policies for high-growth SMES.

Entrepreneurship policies Recent activities to foster business start-ups In order to mitigate the negative effects of the economic crisis

However, figures for 2009 may indicate a decline caused by the worldwide economic crisis. Exhibit 5-4:

/Korea Institute for Industrial Economics and Trade (KIET: http://www. kiet. re. kr/kiet/eng/index eng. jsp.

While the government has attributed the successful recovery from the word-wide economic crisis to the numerous opportunities SMES have been provided with,

Financial Facilitator Programme In light of the economic crisis Singaporean business associations started the Financial Facilitator Programme (FFP) in January 2009.

Updates to Government's Response to the Economic downturn in Asia/Pacific (IDC#AP633103S, December 2009.

Through these overlapping diversification and clustering policy initiatives, the government's 2009 New Growth Strategy (Basic Policies) Toward a Radiant Japan identifies SMES as an engine for future high economic growth.

Although the post-Lehman economic downturn has led the government to focus on legislating remedial measures to support struggling SMES (e g.,

According to their mission statements, the MOIT focuses on the promotion of economic growth in Israel and the OCS oversees all Government sponsored support of R&d in the Israeli industry.

Balancing SME policies with economic policies at large The question of balancing policies for general and high-growth SMES may have to be asked even broader:

and bankruptcy law conducive for high growth Economic stability Economic stability and growth European monetary policy (No difference between general SME policies and high-growth SME policies) Right

Max Planck Institute of Economics. Ahmad, Nadim; Gonnard, Eric (2007: High growth enterprises and gazelles.

Working papers series in economics and social sciences 2011/05. February. Available at http://repec. imdea. org/pdf/imdea-wp2011-05. pdf. Davidsson, Per;

Research Institute of Industrial Economics, Stockholm, IFN Working Paper No. 733. Available at http://www. ifn. se/Wfiles/wp/wp733. pdf.)INNO-Grips (2011:

Economics and politics research briefing. 14 september. Ministry of Employment and the Economy (2011: Growth Enterprise Review 2011.

Small Business Economics, 2010, vol. 35, issue 2, pp. 203-226. Reinstaller A. coord. Hölzl, W.,Janger J.,Stadler,

Small Business Economics, Volume 33, Number 2, pp. 141-149. Simon, Hermann (2009: Hidden Champions of the Twenty-first Century:

In Small Business Economics, Vol. 35, pp. 129 135. Policies for high-growth innovative SMES v1. 6 101 Stangler, Dane (2010:

Firm Formation and Economic growth. March. Available at http://www. kauffman. org/uploadedfiles/high-growth-firms-study. pdf. Storey, D. J. 1994.

Small Business Economics, Vol. 32, pp. 351 374. Yim, Hyung Rok (2007: Quality shock vs. market shock:

Deardorff's Glossary of International Economics, search term policy, URL: http://wwwpersonal. umich. edu/alandear/glossary, last accessed 2 may 2010.

Philipp Koellinger, Economics of Innovation: www. economics-of-innovation. com, last accessed May 2011. Platinn.

Plateforme innovation: http://www. platinn. ch/eng, last accessed May 2011. PRO INNO Europe, Tactics:

& Practice 3 Small Business Economics 4 Journal of Small Business Management 1 Cato 2 Journal of Public Policy and Management Level 2 entrepreneurship

Lessons from recently established rapidly growing U s. startups Small Business Economics 2010 Parker et al What happens to gazelles?

RDI Mirror 3 Regional FINAL.pdf

One of these factors is the range of innovative economic activities, and the other is higher education.

Employment, unemployment and economic activity statistics (2011. Source: The National Innovation Office RDI Observatory's own calculations based on HCSO data and map imaging of the former. 25 3. Innovation potential of unemployment is significantly lower for counties of the Transdanubian region

One is linked to innovative economic activities, while the other is linked to higher education. While for Budapest the two dimensions are interrelated,

yet the economic crisis forced most companies to cut back their spending on innovative activities. The JRC Programme provides an entry point for building synergies with university research units

One is linked to innovative economic activities, while the other is linked to higher education. While for Budapest the two dimensions are interrelated,

Recommendation on the digitisation and online accessibility of cultural material and digital preservation.pdf

1) The Digital Agenda for Europe seeks to optimise the benefits of information technologies for economic growth, job creation and the quality of life of European citizens,

Regional innovation strategies_the challenge of collaboration and governance.pdf

the challenge of collaboration and governance Kevin Morgan Cardiff University Local Economic growth: Recession, Resilience and Recovery Conference St Catharine's College, Cambridge 11-12 july 2013 Overview Innovation narratives Regional innovation strategies Smart specialisation Key

Regional Planning Guidelines_SouthEastIreland.pdf

and progressing of social and economic policies as well as a productive and competitive economy and the availability of rewarding employment opportunities.

and Hub towns to achieve the goals of economic growth in the regions and provide for major investment in the rural economy;

and support higher levels of economic activity and improved quality of life. There is a distinctive settlement pattern in the South East Region

This process of adding additional types of economic activity in rural areas will be based on the region's extensive and attractive coastline,

and value adding potential of economic growth and to achieve more sustainable patterns of settlement with the Gateway and Hubs as key areas for growth.

The regional development challenge is shifting from one of managing growth to stimulating economic activity in a positive and sustainable manner.

Within the context of the current economic downturn, a national and regional spatial development strategy like the NSS has even greater relevance

Economic activity in indigenous companies is dispersed more widely across the region. The competitiveness of this sector will depend on local infrastructure

A combination of strong locally based economic activity, with high added value inward investment, will be key to the future development of the region.

There is obvious potential for sustainable economic growth in this area given that the Southeast Region has 434 kms. of coastline

The Regional Authority recognises the considerable potential that exists to develop existing commercial ports in terms of value-added shore based economic activity.

Increased demand up to 2009 for such services placed an increased burden on waste water infrastructure with the result that inadequate waste water facilities began to inhibit economic growth as well as becoming potential sources

Also, development within the Rosslare-Dublin corridor has significant potential for generating economic activity in the Southeast Region.

Employment & Economic Development Strategy 61 The recent period from 2008 to 2010 has been dominated by the global economic downturn.

and effects of the economic downturn and is planning for recovery and sustainable economic growth for the region.

At present there are 68 IDA client companies employing c. 12,000 people in the Southeast. 4. 1 Guiding Principles This strategy will focus on policies to help the region move out of the economic downturn.

'Certain conditions must apply to support increased economic activity and regional competitiveness if more spatially balanced patterns of development are to evolve.

The potential for development of economic activity must be driven by advantages derived from exchange of information, collaboration, innovation, adoption of best practices and mobilisation of finance and skills.

A critical mass of economic activity and opportunities will be facilitated by: Development of Waterford Regional Airport; Improved public transport services and facilities as recommended by the Waterford City Public transport Feasibility Study 2010;

and employment creation. 4. 4 Other Urban areas The potential of larger towns and District Towns to support sustainable economic activity will need to be supported by the development of Industrial Estates,

The retail sector contributes significantly to the growth in employment and to the economic growth of the region.

The challenge over the next decade (faced by the entire country) is to shift economic growth toward export oriented sectors and activities.

This increases the attractiveness of town centres as destinations for shoppers and visitors resulting in increased economic activity.

There is considerable potential to develop the region's port infrastructure in terms of value-added shore based economic activity.

and generating increased economic activity. The regional airport has potential for expansion and an increased role in access to Ireland and to the south-East Region.

The regional development challenge is shifting from one of managing growth to stimulating economic activity in a positive and sustainable manner.

Within the context of the current economic downturn a national and regional spatial development strategy like the NSS has even greater relevance

and commerce that will be an extra boost to the economic growth of the region. PPO 6. 6 It is an objective of the Regional Authority to support the extension of the Bord Gáis network to Belview, to County Wexford and to other centres of industry.

and that progressive climate change policies based on innovation and investment in low-carbon technology are consistent with global economic growth. 6. 3. 2 National Obligations As part of EU

>Sustain economic growth and employment.>>Provide levels of income support to those relying on social welfare sufficient to sustain dignity

and d to integrate landscape into its regional and town planning policies and in its cultural, environmental, agricultural, social and economic policies,

can have dramatic effects in boosting local economic activity and wider regional benefits. A key step in the implementation of the Regional Planning Guidelines will,

The regional development challenge is shifting from one of managing growth to stimulating economic activity in a positive and sustainable manner.

Within the context of the current economic downturn a national and regional spatial development strategy like the NSS has even greater relevance

REINVENT EUROPE.pdf

Professor Maureen Mckelvey, Professor of Industrial Management, School of business, Economics and Law, University of Gothenburg. The panel would like to thank all those who participated in the online consultation from July to August 2009

Andreas Pyka, Professor in Innovation Economics University of Stuttgart-Hohenheim; President of the Lisbon Civic Forum We,

Summary of OECD Roundtable on responding to the economic crisis: Fostering industry restructuring and renewal, Paris 1 april.

tax, and economic policy is necessary to move further to develop European regulation in such a way as to stimulate innovation and entrepreneurship.

Stimulating productivity and long-term economic growth is thus as much about experimentation and new ideas as it is about optimising efficiency.

Professor Maureen Mckelvey, Professor of Industrial Management, School of business, Economics and Law, University of Gothenburg. 30 Mandate of the panel Context:

In consequence, decision-makers act in a complex and turbulent world, under high degrees of uncertainty, in an economic system

Indeed, economics generally tackles issues of technology, labour and growth in relation to an explanation of individual behavior and price mechanisms,

that it fundamentally involves disequilibrium. 8 In the recent Elgar Companion to Neo-Schumpeterian Economics,

Moreover, change is induced often endogenously (e g. internally within the economic system) through innovations, new knowledge, new organizations, competences and market creation.

and those that tend to exhibit stability, in diff erent parts of the economic system (Mckelvey and Holmén 2006).

and organizations develop new 8 Nelson goes on to argue that‘standard equilibrium theory in economics cannot cope with it and its economic consequences'.

POLICY RESPONSES TO THE ECONOMIC CRISIS: Investing in innovation for long term growth. June 2009. Report proceeded by the Innovation Strategy Portal www. oecd. org/innovation/strategy/portal. 34 useful for science based innovations

which moves the focus away from traditional economics arguments of market failure, direct cost-benefi t analysis and industrial organization (Metcalfe 1995).

especially how the economics of innovation approach provides new insights upon governance of public policy.

Elgar Companion to Neo-Schumpeterian Economics. Chelthenham, U k.:Edward Elgar Publishers. Arrow, K. J. 1962.

Technical Change and Economic theory. London and New york: Pinter Publisher. Georghiou, L. 2006.‘‘Eff ective Innovation Policies for Europe the Missing Demand-side.'

Elgar Companion to Neo-Schumpeterian Economics. Chelthenham, U k.:Edward Elgar Publishers. Kuhlman, S. 2001.‘‘Governance of innovation policy in Europe three scenarios'Research Policy, Vol 30, No. 6. Laage-Hellman, L. M. Johansson,

Equilibrium and Evolutionary Perspectives'in P. Stoneman (ed). Handbook of the Economics of Innovation and Technological Change.

The Sources of Economic growth. Harvard university Press. Nelson, R. 1977. The moon and the ghetto. New york:

‘The Simple Economics of Basic Scientifi c Research'.'The Journal of Political economy. Vol. 67. OECD (2009.

'Cambridge Journal of Economics. Vol. 33, No 4. Salter, Ammon J. and Ben R. Martin,(2001:

Innovation and Economic growth in Fagerberg et al (2005. The Oxford Handbook of Innovation. Oxford, UK: Oxford university Press.

Research and Innovation Strategy for the smart specialisation of Catalonia.pdf

internationalisation and the reorientation of consolidated sectors towards activities with greater added value To promote new emerging economic activities through research

to 1. Framework 17 resolve any coordination problems that may prevent emerging trends from becoming real, solid drivers for economic growth.

promoting internationalisation and reorienting established sectors towards activities with greater added value. 2. To promote new emerging economic activities through research,

internationalisation and the reorientation of consolidated sectors towards activities with greater added value To promote new emerging economic activities through research

4. Potential to generate new economic activity and employment, based on such factors as intensive use of labour and current growth of leading companies. 5. Global sector trends (estimates of world demand, supply, prices, Community policies, etc.)

RIS3CAT includes formulae to provide tools to explore new economic activities based on a market opportunity, a technological need or new knowledge generated through cooperation by stakeholders in different sectors.

The technical know-how and capabilities of technology and research centres play a leading role in the emergence of new economic activities,

and its dissemination in the economic system are, therefore, key to the competitiveness of companies in a given territory.

-R&i as a driver for economic growth. -Quadruple helix public-private cooperation. -Critical mass. -International competitive advantage.

-Generation of new opportunities for economic activity and employment. -Efficient use of resources (green economy. There follows a description of the general characteristics of each of these tools (T)

European funds and other public/private sources of finance. 3. Tools and Policies 36 T. 2. Emerging activities RIS3CAT promotes new, emerging economic activities based on market opportunities,

capitalising on public investment in the research system and promoting its transfer to the economic system.

and Europe 2020, is to generate a digital innovation hub in Catalonia to promote economic growth,

and institutions in sectors of economic activity that use advanced ICT services within their process value chains to generate added value

the Directorate General for Economic policy and Promotion, attached to the Ministry of Economy and Knowledge;

challenges) Impact on companies Quadruple helix and public-private partnerships International dimension and critical mass Process of advancing towards definition of specialisation New opportunities for economic activity

Research and Innovation Strategy in Catalonia.pdf