and gets access to technologies of large multinational enterprises. In many cases, the large enterprises are interested in buying
or licensing the technologies that are developed further by the SMES. INNOVATION-DRIVEN GROWTH IN REGIONS:
Enterprise Territorial Maximise value and economic returns. Improve the social being (linking economic, social and environmental objectives) Differentiation of the product, resources and capacities within the enterprise.
Differentiation of the activities/assets/services offered by the region (e g. to attract firms or foreign investments) Different processes,
ICT companies have a very strong association of enterprises Estonian Association of Information technology and Telecommunications,
number of newly established enterprises, Gross domestic product, and export data per economic sector. For countries, sufficiently detailed, internationally comparable economic data is available from OECD (www. oecd-ilibrary. org/industry.
the enterprise sector, the science/knowledge & creative sector, the government sector and the regional innovation system as a whole covering interactions between all three sectors.
Available at http://ec. europa. eu/enterprise/sectors/ict/files/kets/hlg report final en. pdf; See also page 21 of this report. 3 Some case studies in the OECD appear to interpret smart specialisation as necessarily involving prioritising‘sectoral cluster',‘sectoral strategic plans'or‘cluster strategy',for example, the Photonics Cluster (Gwanju, Korea;
Knowledge generated is made available to enterprises through these Knowledge Agents that have to be approved by the Central Government,
in order to validate their research structure before the enterprises cooperate with them to carry out R&d projects financed by the Ministry of Innovation.
i) Enterprises, managed by the Development Agency IDEA, include several incentives lines: for creation, modernisation, co-operation and R&d projects with special consideration to strategic sector defined by the Industrial Andalusian Plan;
Small and Medium Size Enterprise Development Agency; Technology Development Foundation of Turkey etc.;lastly The Automotive technology Platform (OTEP.
Companies are involved directly through large scale questionnaires and strategy meetings (Enterprise Dialogue. In Lower Austria knowledge creation achieved by stakeholder
Local enterprises typically compete in market segments of standardized goods and services with high price elasticity and increasing competition from countries with even lower production costs (e g.
Other important area-specific development plans are Estonian Higher education Strategy 2006 2015, Estonian Enterprise Policy 2007 2013, Development Plan for Estonian Adult education
To encourage active participation by Estonian researchers and enterprises in international RDI cooperation, Estonia has tried also to bring the key areas in line with the European union's RDI priorities.
For encouraging entrepreneurial discovery the cooperation and involvement of enterprises is thereat especially important. Opportunities for cross-border and international ecosystem development Countries of the size of Estonia cannot effectively address all societal challenges alone, mostly due to the lack of critical mass and economies of scale.
and easily absorbed by the needs of a few larger enterprises. Industry representatives have highlighted the lack of educated
More emphasis should be given to matchmaking activities between knowledge institutions and enterprises and not only on large R&d-collaboration projects with a limited number of enterprises.
THE ROLE OF SMART SPECIALISATION 122 OECD 2013 strengthening the cluster organisations'possibilities to finance and initiative projects with enterprises not having yet RDI activities.
and get access to technologies of large multinational enterprises. In many cases, the large enterprises are interested in buying
or licensing the technologies that are developed further by the SMES. Core practices for promoting and facilitating innovation activities in the region have been established.
These spheres have then been discussed with the scientific community and the enterprises: during Handlungsfeldkonferenzen (separate conferences dedicated to each sphere of activity),
where the close cooperation of academic institutions and enterprises gives the opportunity for sustainable growth. It seems to be useful for the development of the region to put special emphasizes on smaller but more numerous niche markets (e g. diagnostics or telemedicine) within the clusters.
investment projects in the form of tangible assets provided for the purpose of conducting R&d works in enterprises;
innovative solutions by providing financial assistance to pre-competitive research in enterprises. -The Priority Axis 5 of the Programme,
which is an interregional network of collaboration created at the initiative of the Nowy Sacz Business school National Louis University and medium-sized enterprises predominantly from the regions of Malopolska, Silesia and Mazovia.
and economic development was the creation of enterprises in sectors considered as key future areas in new technologies, energy, life sciences and nanosciences.
and restructuring of existing sectors/enterprises via stimulating their participation in new, global value chains.
including international trade, R&d expenditures, birth and death rates, High-Growth enterprises rates, turnover, value-added, production, operating surplus,
the enterprise sector, the science/knowledge & creative sector, the government sector and the regional innovation system as a whole covering interactions between all three sectors.
and invite representatives from selected leading enterprises and lead institutions to go through the questions and report their results.
The entire triple helix of the a regional innovation system Regional leading enterprises and entrepreneurs:
Since smart specialisation addresses enterprises as drivers of innovation they should be invited to provide their insights
This should cover all relevant government departments (enterprise, research, education, finance, etc..Regional lead institutions: Representatives of the regional science, knowledge and creative sector (e g. universities, research and technology organisations or innovation and design centres concentrate expertise on a region's specific knowledge profile.
Guiding questions for self-assessment Assessment of the status and potential of the enterprise sector What are your regional key economic sectors and in
Which leading enterprises (i e. large multinational firms and/or hidden champions and/or key entrepreneurial innovators) are situated in your region?
Do local universities supply regional enterprises with ample graduates or do need regional employers to look abroad for qualified personnel?
or do they rather prefer jobs in established enterprises or public sector? If not, what are the main barriers?
How can the regional enterprise sector and the science/knowledge & creative sector be mobilised to respond jointly to these challenges and opportunities?
Do perceptions of the enterprise sector and the science/knowledge & creative sector with regard to future promising technologies and products correspond?
and identify the relevant stakeholders in the enterprise sector and the science, knowledge & creative sector.
Perform an assessment of each sector with a mutual outside view (e g. stakeholders from the enterprise sector assess the science and the government sector and vice versa.
Programme for the Competitiveness of Enterprises and SMES 2014-2020 EAFRD: European Agricultural Fund for Rural Development ERDF:
Leading Enterprise: A regional enterprise that is characterised either by a size well beyond the regional average and is being successfully active on international markets
or by being highly influential for the region‘s innovative (creative) potential. R&d: Research and development RTDI:
In order to create a general perspective on small and medium enterprises in Romania apprehension of the innovative activities developed within these institutions has an essential role.
In order to create a general perspective on small and medium enterprises in Romania, apprehension of the innovative activities developed within these institutions has an essential role.
new informational systems and human resources training increase together with the enterprises'size. 2009 International Association of Computer science and Information technology-Spring Conference 978-0-7695-3653-8
I. INNOVATION ACTIVITIES WITHIN SMES BY SIZE CLASSES Size classes No Innovation activities Micro enterprises Small enterprises Medium enterprises 1 New products 30.75%41.82%44.54
new products are the most frequently among enterprises within tourism (52.63), %big efforts in order to develop new technologies are undertaken within companies activating in the industrial field (45.33),
we observed that in most of the enterprises subject to our research (22.17%)there is no interest for innovation activities.
and the proportion of companies that have no innovation activities decreases together with the enhancement of the enterprises, due to the differences regarding the economic potential.
As for enterprises investing 20-50%and more than 50%in innovation, the highest weight is covered by small sized enterprises (22.67%and 9. 00%)and the lowest by micro enterprises (8. 37%and 5. 89%.
SMES'INVESTMENTS IN INNOVATION BY SIZE CLASSES Size classes No Part of investments dedicated to innovation Micro enterprises Small enterprises Medium enterprises 1 0%29.46%10.67%9
enterprises that allocated to innovation more than 50%of investments register higher percentage in constructions (14.29%)and lower in trade business (2. 26%;
%enterprises within tourism register a higher percentage regarding the investments in innovation of 10-20%(27.03%)and lower proportions
21.53%of the enterprises hold a percentage of 5-10%;%21.24%of the economic agents had no innovation activities in 2007;
and the number of enterprises with a 5-10%percentage from their turnover generated by new products/services increases as the size of the firm increases As well as for the enterprises having 10-20,
%TABLE V. PART OF SMES TURNOVER GENERATED BY INNOVATION CLASSIFICATION BY SIZE CLASSES Size classes No Part of turnover generated by innovation Micro enterprises Small enterprises Medium enterprises 1
as for the enterprises with no innovation activities the highest weight is registered in trade business (25.58%)and the lowest one in constructions (10.34%.
Taking into account the percentage of investments dedicated to innovation in products, processes or organization, the majority of enterprises subject to our research (22.17%)register no innovative activities.
Innovation investments of more than 50%are more frequent for the SMES with more than 15 years of experience (10.14%),enterprises in North West (14.71%),small sized companies (9),
%companies with other juridical status (10.91%)and firms within constructions (14.29%)Almost 1/5 of the enterprises hold a percentage of 10-20%from their turnover generated by new products/services
With this in mind therefore the study is designed to assess the role played by innovation in Small and Medium Enterprises (SMES) operations sustainability in the manufacturing sector of Chinhoyi.
SMES, innovation, manufacturing, operations sustainability 1. Introduction Worldwide, small and medium enterprises (SMES) are seen by policymakers as the ideal way to increase sustainable development (Naude 1998.
and big enterprises only contributes the remaining 20%(SEDCO Report, 2010). This shows that the SMES have been dominating the country and one would expect that by now the big entrepreneurs should have increased in number
According to Terziovski (2010) Small and Medium enterprises (SMES) in the manufacturing sector make a significant contribution to economic growth,
It was against this background that the researcher carried out an assessment of the role played by innovation on SMES operations sustainability in the manufacturing sector. 2. 0 Literature Review 2. 1 Small to Medium Enterprises (SMES
However in Zimbabwe, according to Small and Medium Enterprises Institute, SMES are defined as a registered enterprise with employment levels ranging from 30 to 70 depending on the types of industry.
It went on to state that enterprises that are formalized not through a legal structure such as registration in terms of the Companies Act
or a Partnership Agreement was referred as micro-enterprises. In a study by Machipisa (1998) he defined an SME as a registered company with a maximum of 100 employees and an annual turnover in sales of a maximum of 830
Most entrepreneurs often start a new enterprise while ignorant of many key dimensions of running their own enterprises
and must obtain the necessary skills if they are to survive (Shepard, 2000). It is imperative that the entrepreneur be knowledgeable about all the functional areas in business.
In today's markets the inputs of customers and their fast changing needs makes it imperative that enterprises continuously improve the way business is conducted.
Innovation Speed in the Small and Medium Sized Enterprise (SME. Creativity and Innovation Management 15 (3): 279-295.
of Small Business and Enterprise Development 9 (1): 28-37. Beck, T.,Demirguç-Kunt, A. & Levine, R. 2005.
Innovation processes within Small and Medium-sized enterprises: http://www. dare2. ubvu. vu. nl/bitstream/handle/1871/16050/dissertation. pdf. Accessed 19 september 2012 Buysse, K. &verbeke, A. 2003.
Motwani, J.,Dandridge, T.,Jiang, J. and Soderquist, K. 1999, Managing innovation in French small and medium-sized enterprises, Journal of Small Business Management
a study of small to medium enterprises (SMES), Measuring Business Excellence, 7 (2): 78-92. ijcrb. webs. com INTERDISCIPLINARY JOURNAL OF CONTEMPORARY RESEARCH IN BUSINESS
Innovation practice and its performance implications in small and medium enterprises (SMES) in the manufacturing sector.
and Medium Enterprises, The World bank Development Research Group, Finance and Private Sector Team. Yin, R. K. 1989) Case study Research:
but results in a major environmental problem The many unsuccessful attempts to introduce road pricing The small and medium-sized enterprises that continue to find it difficult to transform knowledge into successful products
We ground our study on 313 projects (247 enterprises) which were financed partly by the agency located in Orléans from 1980 to 1987.
the enterprises were classified into eight categories depending on their size and their ownership status (Appendix A). These firms are supposed not to be representative of the population of French SMES.
It does not show how SMES are linked to networks. 4. 2. The role of linkages to external resources The success rate of small and medium enterprises
model 3 Constant-0. 3033(-0. 685) 0. 3701 (0. 877) 0. 3554 (1. 496) Categories of firms Very small enterprises
(1 9 employees)- 0. 9152*(-1. 938)- 1. 2468**(2. 536)- 1. 1226**(2. 936) Very small enterprises (10 19
0. 196 (0. 616) Partners Supplier-0. 9202**(2. 826)- 0. 8627**(2. 709) Client-0. 1145(-0. 408) Enterprise
This 9 The size affects negatively the results of the innovative projects only for very small enterprises (less than 10 employees.
Appendix A The enterprises were classified into eight categories depending on their size and their ownership status. Our classification is more detailed than the recommendations of the OECD (1992).
The other categories concern large enterprises and subsidiaries. We distinguish regional groups with more than 500 employees whose headquarters is located in the Centre region and subsidiaries of company
The Technical Enterprise. Ballinger Publishing, Cambridge, MA. Gibbons, M.,Johnston, R.,1974. The roles of science in technological innovation.
Economies of scope and the scope of the enterprise. Journal of Economic Behaviour and Organisation 1, 223 247.
Smaller enterprises and innovation in the UK: the SPRU innovations database revisited. Research Policy 26 (3), 19 32.
by positioning innovation as the dependent variable and examining whether SME growth intention or past performance leads to increased innovation in small-to-medium-sized enterprises.
by positioning innovation as the dependent variable and examining whether SME growth intentions or past performance leads to increased innovation in small-to-medium-sized enterprises.
Economies of most nations are composed largely of small-and medium-sized enterprises (SMES) and their ability to innovate has been viewed as a critical element in economic growth and renewal (Wolff & Pett, 2006;
High growth strategies of women-owned enterprises. Journal of Business Venturing, 16,453-470.7 Hofstede, G. 1980a.
John Ryan CHAIRPERSON ENTERPRISE AND PRODUCTIVE INVESTMENT SUBCOMMITTEE FACT Over 90%of all businesses in Ireland are in the SME sector FACT Last Year of the total Business Expenditure
and human resource development Lack of strategic thinking Absence of management capability Third level institutions not seen as‘SME-friendly'Costs Enterprise Ireland Time Knowledge of Available
The sector comprises Small and Medium-scale Enterprises (SME's), creating thousands of jobs, especially among low educated.
Evidence from furniture and software-small-and medium-sized enterprises in indonesia. University Library Groningen.
The role of government in supporting transfer of technology to and technology diffusion among indonesian n0n-farm small and medium enterprises. review of empirical studies and case study of tegal.
Transfer of technology to and technology diffusion among non-farm small and medium enterprises in indonesia.
The development of small and medium enterprises clusters in indonesia. Gadja Mada International Journal of Business 6 (1): 29-44.
The nature and microfoundations of (sustainable) enterprise performance. Strategic Management Journal 28 (13): 1319-50.
the Information Society and Media DG, the Research and Innovation DG, the Enterprise and Industry DG and the Climate Action DG.
The true meaning of enterprise is the development of new products, the introduction of new solutions and the creation of new markets this is key to the growth of business and also that of the national economy.
& development& innovation strategy, adopted after extensive consultation, focuses on enterprise. While the centrality of enterprise to innovation may seem self-evident,
the answer to how innovation should be supported by government is far more complex. Some would question
and that enterprises themselves would take care of the rest. Most people, however, believe that government can
One paradox is that the contributions of both small enterprises and large corporations to research and innovation are essential within almost all sectors of the economy.
which have been created by small enterprises or individual inventors, but the name of a specific product is more likely to be associated with a large company.
As such, the really great and radical technological breakthroughs can almost without exception be linked to small enterprises.
& innovation is an investment in the future of enterprise and in the country as a whole. The business sector is well aware that behind every advantage in the market place,
In fact, only those enterprises which invest now in knowledge creation and innovation will succeed in the longer term.
In terms of the research & development & innovation strategy, it must provide benefits to the whole business sector, meaning small enterprises, medium-sized businesses and large companies.
A second paradox for government is need the to support new enterprises enterprises which do not yet exist and
which are the most likely to bring about radical innovation, at the same time as ensuring the strength of the incremental and systematic research programmes of large companies looking to improve their own market position.
and enterprises engaged in research & development, as well as innovative enterprises, this will in turn contribute to providing the opportunities necessary for economic development and growth.
Therefore the research & development & innovation strategy is built upon three components: the production of knowledge, the use of knowledge,
and and commercialisation of knowledge, including Hungarian small and mediumsized enterprises, as well as foreign-owned small and large companies which are established already in Hungary
which new knowledge will be embraced by enterprise, and ultimately will reach consumers in the form of innovation.
and those enterprises and workplaces are diminished or even cease to exist. Policy-makers often forget about this duality when developing innovation strategies,
They would like to have innovative enterprises and new jobs while also retaining the old ones.
and enterprises where research & development is especially strong and where technological breakthroughs have taken place. And yet, the overall competitiveness of a country and its ability to catch up with the best performing economies is often significantly more dependent on the widespread distribution of existing technologies.
The R&d expenditures of large companies are proportionately much higher than those of small and medium sized enterprises (see Figures 7 and 8)
2000-2012, based on the distribution of resources (billion HUF) Figure 4 050 100 150 200 250 300 350 400 Budget Enterprises Foreign
Meanwhile, the research and development and innovation performance of most Hungarian enterprises lags far behind that of the enterprises in the more developed EU member states.
Certainly those prestigious international large enterprises are present in Hungary whose Hungarian R&d centres play an important role in making strategic decisions of the parent companies.
National Innovation Office, CORDA database R&d expenditure per company in Hungary between 2001 and 2011, by size classes (large enterprises and the average of all enterprises, HUF million
KSH (Hungarian Central Statistical Office) 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 0 Large enterprises Total
100 200 300 400 500 600 700 800 900 15 overview of the situation 1 point is the co-operation of small and medium-sized enterprises
and of enterprises introducing innovation show a deteriorating situation. By contrast, the international linkages, primarily for research purposes, of publicly funded research organizations are relatively strong,
the innovation performance of Hungary differs in terms of innovation co-operations, particularly linkages between research organizations and enterprises.
KSH (Hungarian Central Statistical Office) R&d expenditure per company in Hungary between 2001 and 2011, by size classes (micro, small and medium enterprises, HUF million) Figure
20 Micro enterprises Small enterprises Medium-sized enterprises Source: KSH (Hungarian Central Statistical Office) R&d expenditure of enterprises in Hungary, 2000-2010, by main sectors, HUF billion Figure 9 140 120 100
80 60 40 200 Pharmaceutical industry Electronics (radio, TV and telecommunication equipment Motor vehicles Machinery product and equipment Computer services Other business service 2000 2001 2002
There is relatively little market-driven research and development among mediumsized Hungarian enterprises, and the demand for R&d is also small.
An organisational base through which the innovation development strategy is implemented consistently is missing among the few innovative small enterprises,
One problem of the current arrangement is that it seldom reaches the knowledge-intensive but less profitable young and innovative micro and small enterprises.
while the rural areas often struggle to make reasonable use of R&d resources. 1. 3. Framework conditions The state cannot take over the primary role of enterprise in the field of research and development
and innovation but it is an important task of the government in power to establish such framework conditions that encourage enterprise to invest in research and development and innovation.
The most important components of framework conditions encouraging enterprises are the following: The international economic processes and the macroeconomic environment:
and by improving the business environment (e g. by further reducing administrative burden, particularly in case of start-ups and innovative enterprises) Improvement of entrepreneurial skills and spirit:
) Spain (2007) Denmark Japan (2009) The direct and indirect governmental support of the R&d activities of enterprises,
The strengthening of new R&d-intensive industries and the foreign market penetration of Hungarian medium-sized and large enterprises.
Support to the co-operation between enterprises and development institutions or institutions possessing the required infrastructure.
interregional level and between different types of enterprises will still prevail. The SME sector will remain weak
There will not be strengthened (enough) enterprises on the basis of national RDI. The resources at the service of the desired RDI developments can be overwritten by short-term budgetary aspects.
small and medium-sized enterprises can only reduce their disadvantages in innovation slowly. The potential of public sector innovation has been absent from government policy.
particularly private enterprise and the public sector, are interested primarily in the processes of knowledge utilization and creation of added value, in terms of competitiveness,
RDI processes The incentives of technology transfer are not efficient Inefficient adaptive innovations (e g. spread of ICT is slow) There is too few (R&d-based) high-tech small enterprises The R&d tax environment is uncertain The innovation potential of the public sector
is unused Insufficient incubation Slowly strengthening venture capital Missing governmental innovation management services Lack of RDI managers of international level Weak sector of medium-sized enterprises
and 3. innovative enterprises intensively utilizing the results of modern science and technology, and in the public sector. These three priority axes also mean that there is a need for a methodical system building in the field of RDI in Hungary.
research and development organisations, enterprises, government institutions, organisations funding innovation developments, universities, high schools and vocational training establishments, research hospitals, libraries, historical archives, museums, public education
R&d-intensive Hungarian medium-sized enterprises expanding in international markets15, small enterprises building on RDI and capable of fast growth (by the technical jargon and in David Birch's phrase:
+30 R&d-intensive macro-regional medium-sized enterprises will produce and provide services+300 RDI
and growth-oriented small enterprises (so-called gazelles) will find their place in the global market+1000 innovative start-ups will get the funding required for starting their activities many innovative supplier companies with national decision-making
the RDI strategy separately supports the knowledge bases connecting to national enterprises through professional management structures.
and also strengthen the position of national enterprises in international competition. For the purpose of enabling research centres to compete internationally,
and processes. 9) The setup of a linkage between enterprises and researchers at the academic and university sectors (partly also a task for strengthening the knowledge flow).
2) The support for establishing enterprises and spin-off in research bases. 3) The enhancement of synergy between the research and business sectors. 4) The inclusion of research, education and business into joint projects;
Nevertheless, the facilities can be important spatial junctions for encouraging linkages between enterprises and research organisations that are recognized
way in the 2014-2020 programming period. 7) The better inclusion of the Hungarian processes of the Enterprise Europe Network into the strategy.
These enterprises: increase the added value of the economy more intensively than the average, resulting in an increasing number of well-paid workplaces.
-provide potential to enable innovative medium-sized enterprises to get stronger, and-enhance the number of ground-breaking, original innovations appearing.
and economic activity of R&d and growth-oriented small enterprises (gazelles) will significantly grow by providing particular and dynamic incentives to them.
The specific objectives related to small enterprises in the field of knowledge utilization: C1. The creation of a start-up ecosystem C2.
enterprises. The dual nature of economy weakens and the added value and the number of wellpaying jobs grow.
Although the conditions of financial resources for knowledge bases and some sectors utilizing knowledge (enterprises etc.)
the (follower or adaptive) developments and innovations of mediumsized enterprises are required also for enhancing the competitiveness of the economy.
On the one hand the targeted support of these enterprises has a competitiveness-enhancing effect, on the other hand the support enables them to appear later in greater number as buyers and/or users of new knowledge,
A further goal is that more and more national mediumsized enterprises shall be able to participate in governmental and local council public procurements with an innovative content,
The professional content of the instruments supporting Table 5 the knowledge utilization of small enterprises The creation of a start-up ecosystem Awareness raising, law enforcement and relaxation of intellectual property protection
and operating a technological incubation system advancing young enterprises. 2) Provision of start-ups with complex services (e g. mentoring,
voucher-like support) that improve their survival chances in the early stage of the life cycle. 3) Support for preparing young enterprises for market-based financing 4) The strengthening of the role of seed capital
medium-sized enterprises: In order to reduce the duality of the national innovation system, the priority objective is strengthening the cooperation between business research centres with a multinational background, national higher education establishment,
Creative researchers and engineers with an entrepreneurial spirit working in multinational companies will be able to start their own R&d-based enterprises,
Demand creation for R&d of medium-sized enterprises C4. Efficient support for foreign market entry C5.
Deliberate public demand for innovation The professional content of the instruments supporting the knowledge utilization of medium-sized enterprises Table 6 Demand creation for R&d Efficient support for foreign market
Specific objectives related to large enterprises: The role of the state is increasingly decisive in modern competitive economies29.
Increasingly innovative and diversifying SMES The professional content of instruments enhancing the national value creation in the sector of large enterprises Table 7 Large-company workplaces with intensive local knowledge connections Innovative
considering that the R&d tax benefit encouraging linkages between enterprises and research organisations shall be financed from national sources-taking into account the limits of the budget.
The main objectives of priority axis Hungarian enterprises intensively utilizing modern science and technology results:+
+30 R&d-intensive macro-regional multinational medium-sized enterprises will produce and provide services, +300 high-tech gazelle companies will find their place in global markets,+1,
growth in productivity, growth in rate of exporting SMES (especially the RDIINTENSIVE medium-sized enterprises), growth in rate of innovative companies among active companies with more than 10 employees (the ratio to be increased to 30
while the funding preferences of the innovation enterprise programme should appropriately be in line with the programme conditions defined in every region and industry.
The completion of the technological incubator programme ensures the environmental conditions-the so-called ecosystem-required for the permanent growth of young innovative micro-and small enterprises (gazelles.
and instruments of the tax incentive system giving benefits to RDI co-operation. 4. 3. Instruments supporting innovative business target groups Innovative small and medium-sized enterprises
The instruments targeting large enterprises will be elaborated on the basis of the value chain concept. In this case the central element of the instruments is the support of in-46 4 The main instruments of implementing the strategy Grouping of the RDI policy instruments Figure 19 Indirect instruments supporting RDI
Indirect tax incentives by enterprises qualification, legislative rationalisation---Strengthening of research universities; technology transfer offices; assistance in international calls for proposals;
making spinoff rules more flexible Growth-oriented high-tech small enterprises Research support; innovation voucher; qualified innovation services;
Medium-sized enterprises able to innovate and grow R&d calls for proposals for medium-sized enterprises;
qualified innovation services; IT calls for proposals; ERDF, KTIA Innovative procurement Contribution relief in case of employment of researchers;
2013 2014 2015 2016 2017 2018 2019 2020 400 000 Enterprises National budget Foreign investors Nonprofit sector The funding trends of R&d
and by the public sector. Under these objectives the R&d performance of enterprise will increase from a level of HUF 210 billion in 2012 to above HUF 330 billion in nominal value by 2020, for
tax incentives available for every enterprise engaged in R&d activities will be established that are supplemented by the targeted support of beneficiaries
and adjusting aspects and the related instruments of special innovative small enterprises. Management and monitoring of the funding programmes:
Trends and Challenges In public Sector Innovation in Europe, Technopolis Group, funded by the European commission http://ec. europa. eu/enterprise/policies/innovation/files/psi/psitrend-report en
the co-existence of well capitalised, relatively modern, competitive, mainly foreign owned enterprises and Hungarian owned enterprises suffering from low competitiveness and a lack of capital.
More than one-fourth of the GDP, half of the GDP growth, three-quarters of the export is generated by foreign enterprises
the foreign enterprises operate as islands, they lean on imports instead of Hungarian suppliers. So the follow-through effects of technology transfer and technological developments are not typical at all in the Hungarian circumstances.
and small enterprises that can improve their chances of success. The business incubator (house) means such joint industrial
Medium-sized enterprises able to innovate and grow: Those enterprises whose total number of employees is between 50 and 250
and their annual net turnover does exceed not EUR 50 million or their balance sheet does exceed not EUR 43 million.
therefore the national and regional governments have to elaborate a so-called smart specialization strategy in co-operation with the enterprises,
RDI and growth-oriented small enterprise: The total number of their employees is between 10 and 50
a bottom-up, self-organized, cooperative, noncompetitive group of enterprises operating in a network along the same value chain which can permanently integrate the fragmented resources of research, development, manufacturing, distribution, service etc. companies.
Primarily the preliminary qualification process initiated voluntarily and optionally by the enterprises and furthermore, the expert contribution in the ex-post tax inspection processes of the National Tax and Customs Administration of Hungary.
Funding paid out before the starting phase of the enterprise in order to carry out research, planning or elaborate a concept.
the sum of all those institutions, enterprises and other organisations and also those resources, rules, conditions and measures in the country that influence the creation, transfer, dissemination and utilization of new knowledge and technology.
an enterprise established for the purpose of commercializing the development results of a university or public (nonprofit) research organisations.
or process have an interest in the spun off enterprise. Start-up: starting knowledge-intensive enterprise which can produce fast growth small with a small investment in capital or Labour policy:
innovation can only be studied and interpreted in a wider social context due to its social-economic embeddedness.
, class, enterprise) and quality of life of people. Technology foresight is very widespread in the developed countries.
The understanding includes the knowledge, the transfer 74 the most important definitions 75 the most important definitions Enterprise life cycle:
The enterprises undergo different, well-separated phases, similarly to the growth of a human being. This metaphor is used by the so-called enterprise life cycle models
in order to make the owners realize that they have to face different problems, challenges, traps in the different growth phases that require different solutions.
The phases of the enterprise life cycle: formation, growth, evolution, stagnation, decline, cancellation. Similar industrial, product and organisational life cycles exist.
and in Ireland in 2006) enables the small and medium-sized enterprises to purchase the knowledge
and so encourage the co-operation between the knowledge centres and enterprises. If a company needs a service related to patent,
and Innovation Communities (KIC) bringing together higher education institutions, research organisations and enterprises, and the cooperating partners.
Macro-regional multinational medium-sized enterprise: Typically a company of 50-500 persons, the seat or strategic decision-making of which is in Hungary
RDI and growth-oriented small enterprise often called gazelle by literature: A company with less than 49 persons,
The enterprise can be a potential investment area for venture capital and it is suitable for incubation.
The enterprise has introduced novel or significantly improved goods or services in its own markets, or process, organisational or marketing innovation before its competitors.
Small and medium-sized enterprise possessing innovative products and services, carrying out R&d activities, capable of increasing its added value creation by continuous developments,
In case of a public research institution, it has multilevel and multidirectional interactions with enterprises; In case of a private research organisation, it typically has significant linkages with the public research sector.
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