of electricity is a fundamental requirement for providing European citizens, societies and economies with essential energy resources.
All this makes smart grids an important element for achieving the largest knowledge-based economy in the world.
the second phase of the project split trends into three streams, namely the economy, governance and power, and society.
and Gianluca Misuraca,"The impact of social computing on the EU information society and economy,"JRC Scientific and Technical Report EUR, Vol. 24063,2009.
Unemployment of skilled and unskilled labor in an open economy: International trade, migration, and outsourcing.
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A long-overdue technological revolution is at last under way, Jun 29th 2013. EEA (2011. The European environment state and outlook 2010:
Replacement Demand in a Global economy, in Holzer, H. and D. Nightingale (eds. Reshaping Workforce Policies for a Changing Economy, WASHINGTON DC:
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'Better Jobs for a Better Economy',International Labour Organisation, 2012. IMF. IMF Has Clear Role in Interconnected World.
Revenue and Expenditure Policies in Advanced and Emerging Economies (Washington), 2010a. International organization for Migration (IOM),"World Migration Report 2011:
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The future of work in advanced economies, Mckinsey Global Institute, 2012. Marin, D. 2010. The Opening Up of Eastern europe at 20-Jobs, Skills and‘Reverse Maquiladoras'in Austria and Germany, Ludwig-Maximilians-Universität München, LMU Munich Discussion Papers in Economics No. 2010-14.
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What impact would this have on Europe's economy and society? It is reasonable to assume that European output
this challenge includes persistent innovation divides between European economies as well as between Europe overall and comparator economies such as the United states. The report suggests a forward-looking agenda designed to contribute to Europe's competitiveness
and growth by encouraging a robust environment of ambitious, serial entrepreneurs who envisage, create and scale innovation-driven ventures.
growth expectations remain tempered across advanced economies, and in the Eurozone in particular, where growth rates remain low and unemployment stubbornly high.
Europe continues to struggle to increase its competitiveness and set its economy on a more solid footing.
many other European economies have much ground to cover. This result is confi rmed by the Forum's 2014 edition of the EU2020 Competitiveness Report
which indicates that Europe has the greatest gap with benchmark economies and the greatest divergence between its member states with regard to measures of smart growth, particularly with reference to the digital agenda and innovation.
Belgium, France, Netherlands, Republic of ireland and United kingdom), indicating a potential draw for entrepreneurs from these economies to Central and Eastern European (CEE) countries to take advantage of lower fixed
and thus contribute to fuelling the European economy. Jan Mühlfeit Chairman, Europe, Microsoft Corporation Benefit for large corporates Benefit for entrepreneurs Risk to one or both partners Company shares in high-potential entrepreneurial ventures Access
The role of innovation-driven entrepreneurship in the economy: Which role does driven innovation entrepreneurship play for your economy?
Could you estimate what proportion of SME employees in your country are working in innovation-driven SMES?
In general, policy-makers highlighted the important role of entrepreneurship for the European economy. Key activities on the policy agenda include steps to tailor education to the needs of entrepreneurial careers,
of Finland António Pires de Lima Minister of Economy of Portugal David Willetts Minister of state for Universities and Science of the United kingdom Figure 19:
-driven entrepreneurship in your economy: More than 20 million SMES in Europe have a key role to play in fostering innovation.
Fostering Innovation-driven Entrepreneurship in Europe 35 Toomas Hendrik Ilves President of Estonia The role of innovation-driven entrepreneurship in your economy:
of Finland The role of innovation-driven entrepreneurship in your economy: Innovation-driven entrepreneurship is one of the key focus areas in the Finnish government's economic policy.
Kroes Vice-president and Commissioner for the Digital Agenda, European commission The role of innovation-driven entrepreneurship in your economy:
It's quite simple it's about growing the economy and solving our social challenges.
Sass Larsen Minister for Business and Growth of Denmark The role of innovation-driven entrepreneurship in your economy:
Entrepreneurs play a key role in securing competition and innovation in the economy. In recent years innovation-driven entrepreneurship has become an important part of Danish policy.
and act as an engine for innovation in the global knowledge economy. Open and innovative large companies play a vital role in the emergence and development of entrepreneurial ecosystems.
Fostering Innovation-driven Entrepreneurship in Europe 39 António Pires de Lima Minister of Economy of Portugal The role of innovation-driven entrepreneurship in your economy:
the Portuguese economy suffered structural changes: becoming a highly exporting, increasingly innovative and entrepreneurial economy.
Our exports have grown significantly (at the fastest pace in EU15, and have increased their technological profile).
and an enabling business regulatory environment. 40 Enhancing Europe's Competitiveness Mark Rutte Prime minister of The netherlands The role of innovation-driven entrepreneurship in your economy:
thereby making a significant contribution to the Dutch economy. Among the innovation-driven economies in the EU-28, The netherlands is the most entrepreneurial economy in terms of new and nascent entrepreneurship according to the Global Entrepreneurship Monitor.
A recent success in fostering entrepreneurship: Recent successes by The netherlands in improving the conditions for innovation-driven entrepreneurship are the top sector approach, valorization grants and an action plan for skilled technical workers.
Fostering Innovation-driven Entrepreneurship in Europe 41 Bohuslav Sobotka Prime minister of the Czech republic The role of innovation-driven entrepreneurship in your economy:
Innovation-driven entrepreneurship is one of the most important drivers for sustainable development of the economy in the Czech republic.
e g. for academic spin-offs. 42 Enhancing Europe's Competitiveness David Willetts Minister of state for Universities and Science of the United kingdom The role of innovation-driven entrepreneurship in the economy:
Over time, on an economy-wide scale, innovation has contributed as much as 70%to the UK's economic growth.
including the economy, taxation, regulations, competition and cash-flow issues. There were also a number of barriers that innovative SMES experience over and above those that do not innovate:
as an example, how the advent of the sharing economy (in the form of Airbnb and Uber) is challenging government
in European economies. Understanding, anticipating and shaping these shifts will be critical to ensuring that Europe prepares ecosystems ready for the next decade of breakthrough innovation.
Today, with the need to invest in innovative economies and innovative governments higher than ever,
businesses and citizens would best fit in a future global knowledge economy. For example, a key issue to be considered in such a context is that of talent:
This has continued the trend of large, developing economy multinationals finding advantage in harvesting opportunities in diverse parts and corners of their economies.
or are impacted by convergence issues. 54 Enhancing Europe's Competitiveness Realizing scale economies will have to happen through shared infrastructure systems with other corporations
The achievement of scale economies across these different parts of the Coral reef and the different convergence spaces will be highly challenging and non-trivial.
Adecco, INSEAD, Human Capital Leadership Institute (2013), Global Talent Competitiveness Index Barclays report, written by The Economist Intelligence Unit (2014), Start me up:
Faxander, President and Chief executive officer, Sandvik, Sweden Blair L. Fortner, Global Chief Economist, Monsanto Company, USA Hamish Forsyth
Communication Networks, Content and Technology, Belgium António Pires de Lima, Minister of Economy of Portugal Benoit Potier, Chairman and Chief executive officer, Air liquide, France Subramanian Rangan
Lead Economist, Office of the Chief Economist for the Europe and Central asia Region, World bank, WASHINGTON DC Maria Fanjul, Chief executive officer, entradas. com, Spain Charles Grant, Director, Centre
ESADEGEO-Center for Global economy and Geopolitics, Spain Mark Spelman, Global Managing director, Accenture, United kingdom Pawel Swieboda, President, demoseuropa-Centre for European Strategy Foundation, Poland
Nicholas Davis, Director, Head of Europe Caroline Galvan, Economist, Global Competitiveness and Benchmarking Network Peter Gratzke, Senior Project Associate, Investors Industries Team Thorsten
In a resource constrained economy like Uganda, the responsibilities for planning, resource mobilization and allocation, management immunization services, storage and distribution of vaccines, supplies and equipment to the units under their supervision
NON CLASSIFIE UNCLASSIFIED Organisation for Economic Co-operation and Development Organisation de Coopération et de Développement Economiques 2000 ENHANCING THE COMPETITIVENESS OF SMES IN THE GLOBAL ECONOMY:
WK1 2 TABLE OF CONTENTS SME INNOVATION IN A GLOBAL ECONOMY...3 Introduction...4 Globalisation Challenges...4 Globalisation...
32 WK1 3 SME INNOVATION IN A GLOBAL ECONOMY*This paper serves as the background document for the Workshop on Enhancing the Competitiveness of SMES through Innovation at the Bologna conference.
and help reduce the disadvantage of scale economies which small firms face in all aspects of business.
This explains why economists have reopened the debate on whether some market and systemic failures disproportionately affect small firms,
Globalisation Challenges 3. Both scale economies and research and development have become more important instruments for competitiveness in the global economy.
what triggered the wave of globalisation reshaping the economy at the end of the 20th century. To understand globalisation's impact on SME innovativeness
The Economist recently proclaimed The Death of Distance on its front page. 2 While the telecommunications revolution has brought the cost of transmitting information across geographic space to virtually zero,
Emerging comparative advantage that is 2 The Death of Distance, The Economist, 30,september 1995. 3 The Downsizing of America
By contrast, the rest of the economy experienced fairly steady growth at around 3%over this period. 5 Innovative activity of in the United states has jumped
or even enhance their competitiveness in a globalizing economy. This background paper discusses some of the strategies open to SMES as they try to become more productive and shift more knowledge-based activities.
whereas the R&d-sales ratios of the largest corporations fell from 3. 5%to 3. 1%.4 The Valley of Money's Delights, The Economist, 29,march 1997, special section, p. 1. 5
government policy can do much more to help the majority of SMES manage the transition to a global, knowledge based economy.
Which metaphor is most apt depends on a given industry's underlying technological conditions, scale economies, and demand.
Where scale economies are important, the revolving door model is more common. While start-ups and new entrants may not be deterred by the presence of high scale economies,
a process of firm selection ensures that only those firms that grow will be able to survive beyond more than a few years. 36.
and depending upon the severity of the other selection mechanism-the extent of scale economies-may ultimately be forced to exit out of the industry.
and experimentation that otherwise would remain untapped in the economy. The Information technology Strategy 37. A second strategy SMES can use to improve their competitiveness in global markets involves the application
or the level of output required to reach scale economies. This notion has received considerable attention in the popular press.
"10 10 Tom Peters,"New Products, New Markets, New Competition, New Thinking,"The Economist, 4 march, 1989, pp. 27-32.
In the physical world, scale economy and standardisation plays a major role. The digital world enables individual product customization The customers will directly interact only with the intermediary,
and business partners that they are committed to the local economy. The Mittelstand companies also espouse a strategy
In particular, SMES are disadvantaged clearly by scale economies and other size related ownership-specific advantages.
clearly makes FDI an important element of the panoply of strategies open to SMES who want to remain innovative in a global economy.
Jacobs, Jane, 1969, The Economy of Cities, New york: Random House. Jaffe, A.,1989, Real Effects of Academic Research, American Economic Review, 79,957-970.
Innovative Performance of SMES in an Emerging-Economy Manufacturing Cluster Theresia Gunawan1, Jojo Jacob2 and Geert Duysters3 August 2013 The authors, 2013 1 Maastricht School of management
and organizations in and for emerging economies and developing countries with the objective to substantially contribute to the development of these societies. www. msm. nl The views expressed in this publication are those of the author (s). Publication does not imply endorsement by the School or its sponsors,
Innovative Performance of SMES in an Emerging-Economy Manufacturing Cluster Theresia Gunawana, Jojo Jacobb, and Geert Duystersc amaastricht School of management,
as SMES in emerging economies do. Next to network ties, entrepreneurial orientation (EO) is another significant resource for achieving competitive advantage in general (Covin & Miles, 1999;
Like a firm s network, EO too is particularly salient for market success in the highly competitive and turbulent environments in emerging economies (Covin and Slevin (1989.
our study is carried out in the context of a low-tech manufacturing cluster in an emerging-economy the footwear industry cluster in Cibaduyut, Indonesia.
They benefit from the economies of agglomeration and joint action, giving them collective efficiency and therefore a competitive advantage over firms that are located not co within a cluster (Schmitz, 1995).
Studies in the context of emerging economies are far fewer, but they too suggest that clusters enhance the competitive advantage of SMES (Caniels & Romijn, 2003;
Given that network ties represent a critical resource for SMES, particularly in emerging economies, it is important to understand the interplay between EO and a firm s network ties.
and risk taking on a firm s network ties (ICTS and ECTS) in the specific context of an emerging-economy,
As is typical in emerging economies there only exists limited information about footwear producers in this cluster;
We empirically tested our conjectures on a sample of 120 SMES in a creative-industry manufacturing cluster in an emerging economy, Indonesia.
Thus a key message of our study is that SMES in emerging economies should actively develop inter-organizational networks that go beyond the confines of the region in
Collecting longitudinal data in the emerging economy context is given particularly challenging the lack of governmental level initiatives to this end.
In future research we hope to explore the consequences of partner heterogeneity in the context of emerging-economy SMES. 21 References Aiken, L. S,
A study of exporters from a developing economy. International Small Business Journal, Advance online publication.
Horizontal and Vertical Relationships in Developing Economies: Implications for SMES Access to Global Markets. Academy of Management Journal, 51 (2), 359-380.
Local Clusters in a Global economy. Economic Development Quarterly, 14 (1), 15-34. Qian, H, . & Acs, Z. 2013).
Creative Innovation in Local economies. Economic Development Quarterly, 20 (2), 162-177. Schoonhoven, C b.,Eisenhardt, K. M,
Innovation and Clustering in the Globalised International Economy. Urban Studies, 41 (5/6), 1095-1112.
and developing country economies. Both entrepreneurship and innovation are 2 broad concepts without a unanimously accepted definition
and through innovation and creative destruction the economy evolved. The connections between entrepreneurship, innovation and small firms has been studied over time by various scholars and some even defined entrepreneurship as follows innovation by newly formed independent firms (Kirchhoff,
and the past year (2013) could represent a turning point for the EU economies if the positive upwards trends will manage to continue.
the contribution of SMES to job creation and value added constitute a large share of both EU and Romanian economy.
and Thurik suggest that an increase in the entrepreneurial activity is followed generally by a recovery of the economy
and implicitly the Romanian economy was marked by the crisis. In the last period signs for economic recovery start to appear at European level
Entrepreneurs usually embrace innovation an this may have positive impact on a countries economy by generating new jobs, creation of wealth and improving quality of life.
In addition to existing material about the Andalusia economy, this report draws on a week-long study visit that took place in Seville and Malaga from 12 to 16 april 2010.
the General Secretariat for=Innovation‘of the regional Ministry of Economy, Innovation and Science (MEIS;
The review team was informed initially about the main features of Andalusia‘s economy and entrepreneurship support system by a diagnostic report prepared by Prof.
Dr Jonathan Potter, senior economist, OECD LEED Programme, jonathan. potter@oecd. org Mr. Marco Marchese, policy analyst, OECD LEED Programme
and the EU. The quality of universities needs to be enhanced The university system 10 public universities with a total of approximately 230 000 students depends on the Regional Ministry of Economy,
seeks to adapt vocational training to the new economy and new demand of jobs and occupations.
Andalusia needs to recognise the role of less R&d intensive forms of industry-university cooperation R&d-related activities do not play a major role in most of the firms considered as=innovative‘within the Andalusian economy.
The consequence of this level of public subsidy is that much of the regional economy is cushioned to some degree from general competition.
SME development The Andalusian business structure lacks medium-sized firms The Andalusia economy is dominated by SMES with over 99%of firms having less than 500 employees.
Despite this small base, exports increased as a proportion of the total activity in the regional economy over the decade 1995-2005, rising from 20.8%to 24.9%of GDP.
INTRODUCTION Regional economic development is regarded increasingly as critical to the growth of national economies in a globally connected environment.
This is as true of Spain as it is of other economies round the world. Structural, spatial and temporal variations occur across regions because of differences in the human capital base, the industrial structure, relevant research and development capabilities, business formation,
and the capacity of institutions to generate facilitative conditions for a productive and entrepreneurial economy.
and relatively backward economy was the outflow of human capital to Spanish growth poles, especially to the north and Northeast regions and to Madrid.
Since that period, partly because of the impact of the volatility of the Spanish economy and of the global economic crisis which hit Spain disproportionately,
the regional economy of Andalusia has faltered badly with sharp drops in both gross domestic product (GDP) and employment.
The rapid growth in the real estate component of Gross Capital Formation during 2000 to 2005 reinforces this notion of fragility as the collapse of those economies dependent on property price inflation has been the worst among others across Europe.
It is against this background of the Andalusian economy that a review on Entrepreneurship, SMES and Local Development has been carried by the OECD Local Economic and Employment Development (LEED) Programme in partnership with the Andalusian Technology Network (Red de Espacios Tecnologicos de Andalucía RETA).
In examining these components of the regional economy and the extent to which entrepreneurship and SMES contribute to innovation,
The challenges faced by new and small firms in terms of emergence and growth in a knowledge-based global economy with specific reference to human capital;
and how they blend together to make an effective contribution to the Andalusia economy. Figure 1. A Schemata for Reviewing the Andalusia Economy Human Capital
and the Labour market It is recognised now well that the set of technical, cognitive, facilitative and operational skills competencies and knowledge,
often referred to as=human capital‘play a key role in the formation of a labour market and more generally in the development of an economy.
This fact has acquired a particular poignancy in recent times in our so-called knowledge economy where=brain power
and educational attainment acquires a premium in relation to the economy. Its importance has gained momentum with the advent of the knowledge economy.
The overall premium to higher education has increased sharply as the main drivers of these economies, the knowledge-based industries, demand higher levels of skills in the workforce with
which to manage technological change productively. It is argued also that higher levels of human capital help to generate new,
2002) is another way of generating talent in the local economy. Attracting talent to a local economy is enabled by making an environment and the quality of local life conducive to entrepreneurial economic activity.
The emphasis a region puts on any one of the two approaches is to some extent dependent on their capacity to pursue each approach
and value creation for the economy and for society. Entrepreneurship is evident in both small and mediumsized enterprises (SMES
as well as large ones, in the formal and informal economy; in legal and illegal activities, in innovative and traditional firms;
and in pretty much all sectors and sub-sectors of the economy (OECD, 2001). This spectrum of involvement can lead to both productive and unproductive or even destructive entrepreneurship (Baumol, 2006.
and additional literature and material about the Andalusia economy. The draft report was submitted for comments and approval to the local partner, the Andalusia Technology Network (RETA.
%This might be an indicator that that Andalusia has undertaken not yet fully its transition to a knowledge-based economy.
which had been one of the main sectors driving the economy in the booming period, has also been one of those hit hardest by the recession, shedding in Andalusia a far higher number of jobs than at the national level. 1 On the other hand,
Today, Andalusia‘s economy has approximately 510 000 firms, corresponding to 15.9%of the national total against a population that is 17.8%of the total.
Micro firms (less than 10 employees) dominate the economy, representing over 90%of the total. This is typical of Figure 3. Andalusia's foreign trade and trade balance (1990-2008)( € 000s) Imports Exports Trade balance Source:
ESECA, 2009 peripheral economies which generally find it difficult to penetrate international markets. Indeed only 1. 4%of regional firms are engaged in foreign trade,
%as against 9%at the national level. 1970s agriculture was still playing an important role in the Andalusian economy,
Nowadays Andalusia‘s industry structure resembles much more closely that of any modern economy though the very low contribution of manufacturing (11%)and the disproportionate impact of services (71%)on regional GVA flag an imbalance that can undermine the competitiveness of the region due to lower capital investments
and lower internationalisation that are both typical of economies overly reliant on services. Figure 4. Andalusia's GVA trends by sector, 2001-2009 Construction Services Industry Source:
Food industry The food industry has traditionally been one of the linchpins of the Andalusia economy.
In addition, the sectors that have driven the Andalusian economy over the last decades mainly construction and tourism are known not for being R&d-intensive
the most relevant for the scope of this study being the Ministry of Economy, Innovation and Science (MEIS).
This is the result of the recent merger between the Ministry of Economy and the Ministry of Innovation, Science and Enterprise (MISE.
and the social economy sector. EMPRENDE also maintains a network of 37 Corporate Development Support Centres (CADES) providing a decentralised BDS support across the region.
and thereby reduce the welfare gap with the most competitive economies. It establishes the framework for the region‘s research
The long-term objectives of this plan are the modernisation and competitiveness of the regional economy.
HUMAN CAPITAL AND THE LABOUR MARKET Introduction Human capital development and labour market dynamics play a key role in a knowledge-based global economy.
Role of human capital in the knowledge economy: Debates in the literature Higher levels of human capital create returns not only in terms of worker productivity but also of higher wages (Becker, 1965.
With the advent of the knowledge economy, the overall premium to higher education has increased sharply (Carnoy, 1994.
One path to competing in the global knowledge economy is through using local universities to develop a high-skilled workforce to serve local firms
A recent example of this is innovation in California‘s clean energy economy, in which the most innovative firms interact more with nonprofits, local governments, other local businesses, local trade associations,
that seeks to make Europe the most competitive knowledge-based economy in the world by 2010.
innovation and the knowledge economy, on the one hand, and the environment and risk prevention on the other.
) Assessment of the region Local labour market conditions The Andalusian labour market contains several structural weaknesses that distinguish it from the rest of the Spanish economy, namely:
and the dominance of the construction and tourism sectors in the regional economy, it is not surprising that Andalusia has in recent decades switched from a region from
and the Ministry of Economy, Innovation and Science. In the mid 1980s, after education policies were transferred to Andalusia,
and economic development tools and facilitate a shift towards an economy based on knowledge. 3 On March 22,
2010, the Regional Ministry of Economy merged with the Ministry of Innovation, Science and Enterprise. 4 The newly created Ministry of Economy,
which is now dependent on the Regional Ministry of Economy, Innovation and Science. This has created greater pressure for industryuniversity collaboration.
seeks to adapt vocational training to the new economy and new demand of jobs and occupations.
internships with companies abroad in strategic sectors for the Andalusia economy (aeronautics, biotechnology, ICT, culture industries, renewable energies;
) but with the collaboration of the Regional Ministry of Economy, Innovation and Science. CTA recently began a new program to support the doctoral education of researchers within their member companies.
For instance, despite the fact that Renewable Energies is one of the main clusters defined by the Ministry of Economy,
Limited coordination amongst the Ministry of Economy, Innovation and Science and the Ministry of Employment Second,
and the Ministry of Economy merging with Innovation and Science in 2010. The Ministry of Employment remains separate.
consolidating efforts for efficiency purposes (National Centre on Education and the Economy, 2007. Limited synergies between cluster strategies and workforce strategies Finally, in part because of this agency balkanization, the region‘s cluster strategy lacks strong connections to its workforce strategy.
given the breadth of agent involvement in the Andalusian economy, as well as the rotation of agents between clients, it was not possible to give in-depth sectoral assistance.
which will link training better to the new economy, also presents an opportunity for RETA to provide input
Linking workforce and economic development in the regional green economy The East Bay Green Corridor Partnership in the San francisco bay Area provides an example of linking workforce and economic development,
and also illustrates the potential of regional coordination around one emerging sector in this case, the clean energy economy.
in part to create jobs in a stagnant economy. In the U s.,cities and states have found several creative ways to include workforce development in economic development programmes.
and clusters in the regional economy, and thus able to facilitate economic development. In late 2007, the mayors of Oakland, Berkeley, Richmond,
and promote the green economy in the region. The so-called East Bay Green Corridor Partnership (EBGCP) has expanded
it provides an example of how to stimulate the economy during a downturn by creating a new market;
it targets green economy businesses, also a strength for Andalusia; it links workforce 11 This 52 million Euro program includes integral energy efficiency retrofit of existing residential units, incorporation of new energy efficiency criteria for already planned rehabilitation of historic centres,
Innovating the Green Economy in California Regions. Berkeley: University of California-Berkeley, Coronado, D.,Acosta, M. and Fernández, A. 2008.
Innovation and the Internationalisation of the Local economies: Andalusia. Spain. Unpublished paper. Instituto Estadístico de Andalucía. 2010.
National Center on Education and the Economy, 2007, Under One Roof: New Governance Structures for Local Economic and Workforce Development. http://colosus. ncee. org/pdf/wfd/Under one roof final. pdf OECD & Eurostat. 2005.
THE CONTRIBUTION OF RESEARCH ORGANISATIONS Introduction Universities and public and private research organizations play a crucial role in regional economies that rely upon growth-oriented entrepreneurship and business innovation.
The funding, infrastructure and commercialization activities of research organizations within these economies are increasingly important as they make the transition to a knowledge-intensive form of production.
The current policy context of the region is summarized with respect to the role of research organizations in the regional economy.
It documents the policy context for the regional economy and the role played by both the Andalusia university system and RETA within that context.
and help overcome the existing obstacles to innovation in the Andalusian economy, it must do so on the basis of a more effective way to augment knowledge flows between research organizations and firms in the regional economy.
The preceding discussion suggests that the task of transferring knowledge from universities to industries is more complex,
which contributes both to the stock of tacit knowledge in the local economy, as well as to the=thickness‘of the local labour market (Gertler and Vinodrai, 2005).
Both the diversity of knowledge bases that firms draw upon and the different modes by which they innovate reinforce the point that the=knowledgebased economy‘consists of many=pools‘of knowledge accessible to different knowledge=communities‘within the broader economy (Lundvall, 2006.
It pays particular attention to the current state of the technology transfer process between the universities and enterprises in the regional economy, especially in terms of the concentration of the industrial structure of the region in small and medium-sized enterprises.
The key objective of the Lisbon Agenda was to bring Europe up to the same standard as the most competitive knowledge-based economies in the world by 2010
and the changing international terms of competition that have led to a growing concern with the overall innovativeness and competitiveness of the European economy.
i) the promotion of the knowledge economy; ii) entrepreneurial development and innovation. Total expenditures on these two objectives are authorized at EUR 2. 38 billion over the life of the program.
actively contributing to the creation of an environment of innovation capable of reducing the gap with the most competitive economies (Junta de Andalucía, 2006).
In March, 2010 the Ministry of Enterprise, Innovation and Science was merged with the Ministry of Economy,
however, given the predominance of SME‘s in low-technology sectors in the industrial structure of the regional economy.
One consequence of this cultural attitude is that the universities have been reluctant to direct research efforts in strategic directions related to areas of industrial strength in the regional economy,
but this is a particular challenge with the SMES that predominate in the Andalusia economy. They assess the needs of companies
The relationship is based on the extensive knowledge that RETA has of firms on the ground in different parts of the Andalusia economy
This highlights a critical issue in the university‘s relations with the SMES that characterize the regional economy.
and characteristics of the companies in the part of the regional economy where the universities are located.
The authors also suggest that it is important to recognize that R&d related activities do not play a major role in most of the firms that are designated as=innovative‘within the regional economy.
1) integrating the various elements of the Andalusian R+D+I system and serving as a coordinating mechanism between the small firms that comprise the backbone of the regional economy and the other organizations
Rationale for the Intervention A general feature of the Canadian economy, especially in the high technology sectors, is the predominance of small and medium-sized enterprises,
A number of key benefits of the co-op program were identified in research conducted on the role of the University of Waterloo in the regional economy.
Relevance to Andalusia The key lesson to be drawn from this experience is that the patient investment of resources in a program such as this can pay incredible dividends to the local economy over a long period of time.
It has proved invaluable in both creating extremely tight linkages between the university and the dense network of technology-based firms in the local economy,
Rationale for the Intervention A second report, prepared by the Institute for the Future, suggests that the model of selfcontained research parks that has prevailed for the past fifty years is currently under challenge from a series of shifts in the global economy,
Innovation and the Internationalization of the Local economies: Andalusia, Spain. Diagnostic Report Prepared for the OECD-LEED Study Mission to Andalusia.
The Paradox of Cluster Development in an Open Economy, eds David A. Wolfe and Matthew Lucas. Montreal and Kingston:
in the formal and informal economy; in legal and illegal activities; in innovative and traditional firms;
and in pretty much all sectors and sub-sectors of the economy (OECD, 2001, p. 35. If Governments were increasingly emphasising the importance of the development of a=culture of entrepreneurship,
At the level of local, regional, national and supernational economies, the EC highlights the importance of entrepreneurship in terms of its contribution to job creation and growth
set itself the ambitious goal of making the EU the most competitive and dynamic knowledge-based economy in the world, capable of sustainable growth with more and better jobs and greater social cohesion by the year 2010.
Structural reforms were launched in the fields of employment, innovation, economy, social cohesion, and environment. However, by 2005 it was apparent that the goal was overly ambitious.
a 10-year strategy designed to revive the European economy through smart, sustainable and inclusive growth, with greater coordination of national and European policy.
Knowledge economy (4. 6%of total expenditure: promote research, technological development, innovation and the information society.
and support firms in Andalusia committed to the growth and globalisation of the regional economy.
therefore, represent a unique window of opportunity to get the regional economy in shape for the future.
Entrepreneurial profile There are a number of aspects of the Andalusian economy that are relevant from the viewpoint of entrepreneurship and start-ups.
The analysis suggests that there is an urgent need to further diversify the regional economy; given the education levels
Ministry of Economy, Innovation and Science The regional Ministry of Innovation, Science and Enterprise merged in 2010 with the Regional Ministry of Economy,
to result in the Ministry of Economy, Innovation and Science (MEIS). The MEIS is a powerful institution with a commensurate annual budget of some EUR 3 billion.
Secondly, there is a clear divide between policy-making (the responsibility of the new Ministry of Economy
The consequence of this level of public subsidy is that much of the regional economy including entrepreneurs and enterprises being supported,
Fourthly, although the local economy may be cushioned by EU and national subsidies, it has certainly not been spared from the economic crisis.
The regional economy in not strongly export-oriented companies refrain from placing orders, and the general public is nervous about possible layoffs
Turning to the institutions in Andalusia, a Working group is in the process of being established by the new Ministry of Economy,
and diversify the economy The rising levels of unemployment, the need to diversify the economy (e g. away from construction, real estate, etc.)
combined with the population‘s latent interest to establish a business (GEM, 2006) call for a greater focus on providing opportunities for people to establish their own businesses though self employment or creation of firms.
The specific nature of corporate spin-offs means that they are an important aspect of the knowledge economy:
and diversifying the regional economy. The regional government should therefore undertake a review of the current levels of corporate spin-offs in the region,
Although new economy incubators are currently out of favour, there are many lessons to be learnt that are relevant to the more traditional model (and vice versa).
SME DEVELOPMENT IN ANDALUSIA Introduction SME development and growth is critical to fostering entrepreneurship, job creation and economic development in Andalusia as a result of the dominance of SMES in the regional economy.
Currently, the export performance of the Andalusia economy is dominated by a small number of firms (both SMES
In part, the diagnosis of regional policymakers is that this relates to the firm size structure of the regional economy (see below) with an over-preponderance of very small firms.
Even in the most open economies, SMES are reluctant internationalists because they lack the capacities of larger firms,
Assessment of the region SMES in the Andalusia economy The Andalusia economy is dominated by SMES with over 99%of firms having less than 500 employees (see table below.
The imbalances in the regional economy were exacerbated further in the boom period from the mid 1990s to the 2007
This resulted in a shift of resources, particularly of capital and labour, from the more productive and internationally competitive sectors of the economy.
Despite this small base, exports increased as a proportion of the total activity in the regional economy over the decade 1995-2005, rising from 20.8 percent to 24.9 percent of GDP (Consejo Economico y
Developing effective innovation and internationalisation policies for Andalusia‘s SMES therefore needs to recognise the diverse needs and different potentials of these three different segments of the economy.
what are viewed as knowledge-economy sectors such as IT and biotechnology, Andalusia needs to reassess the competitive prospects of many of the firms in these sectors.
The availability of alternative employment in the growing economies of the nearby cities of Florence, Siena and Pisa resulted in an outflow of the farming population attracted by less arduous and more economically rewarding forms of employment.
gbrunori@agr. unipi. it Danish low-tech clusters and the‘village economy'Description of the approach Confounding conventional analyses of globalisation, Denmark, with few natural resources and high production costs by international
Continued presence in low technology sectors has been achieved without the establishment of a large-firm dominated economy.
The Danish model has been referred to as the=village economy‘becomes it is founded upon clusters of SMES
Rationale for the intervention As a small open economy with 50 percent of its economic activity accounted for by international trade,
what is referred sometimes to as the=negotiated economy‘(Amin and Thomas, 1996; Maskell, 1998): 80 percent of workers are in trade unions
labour unions, social economy organisations. Greater autonomy from the regional government in developing sector specific agendas would allow Andalusia SMES to generate their own strategies with regard to innovation and productivity improvements.
Against a historical background of over-dependence on foreign owned firms and declining manufacturing activity, it represents an important boost to Scotland‘s knowledge economy
The skills and experience such returnees bring to firms are invaluable when operating in the global economy.
The focus more recently on key knowledge economy sectors and a series of cluster initiatives hold some important policy lessons for Andalusia
Christensen, J. L. 2010 Low-tech, High Performing Clusters in Knowledge-based Economies. Paper presented at the DRUID Summer Conference, London, June.
Maskell, P. 1997 Learning in the village economy of Denmark. In Braczyk, H. J. Cooke, P. and Heydenreich, M. eds) Regional Innovation Systems.
Specialisation and Prosperity in Small Open Economies, London, Routledge. Maskell, P. 1998 Successful low-tech industries in a high-cost environments:
Storper, M. 1995 The resurgence of regional economies, ten years later: the region as a nexus of untraded interdependencies.
(i e. the prioritisation of the knowledge-based economy with a view to making Europe the most competitive economy worldwide);
and the last EU-driven Andalusia Operational Programme for the period 2007-2013 earmarked EUR 2. 38 billion (nearly one quarter of the total) for the promotion of the knowledge economy and for entrepreneurial
i e. the entrepreneurship and SME development support system of Andalusia, focusing on four main areas that are relevant for a thriving knowledgebased economy:
i) today‘s knowledge-based economy put a premium on education; as a result, the regional government should seek to strengthen further participation in higher education;
in the knowledgebased economy there are greater returns from higher education. College graduates make up 29%of the employed population in the region,
As a result, co-ordination and co-operation between the ministry of employment and the Ministry of Economy, Innovation and Science would be crucial in this domain.
a feature that has been exacerbated by the weight of the construction industry in the regional economy. As of 2008, micro enterprises (less than 10 employees) accounted for 95,
The task of internationalising the regional economy is made complicated by the very different sectors that have an international potential in the region,
Key future opportunities Developing entrepreneurship skills to upgrade local industries Universities are being geared up to be conduits for knowledge and innovation in the new economy but as the OECD study reports, inappropriate
renewable energy is one of the main clusters defined by the Ministry of Economy, Innovation and Science;
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