Field291. 3. 5 Link between Services and SME Development301. 4 Excellent Cluster Management Organizations -What are their Distinctive Characteristics?.
Services of cluster management organizations36table 7: Overview of cluster programs41table 8: Overall objectives of the cluster programs43.
Effect of Spectrum and Intensity of Services on Business activities of SME31FIGURE 16: Comparison of structural characteristics of excellent and non-excellent clusters35figure 17:
Overview services of cluster management organizations38index OF BOXES Table 1: Abbreviations for the cluster programs benchmarked in this studyabbreviations OF CLUSTER PROGRAMS USED IN THE FIGURESCOUNTRYNAME OF PROGRAMABBREVIATIONAUSTRIACLUSTER Program Lower Austrialower Austriabelgiumcompetence Centres-Light Structuresbelg LSCOOPERATIVE innovation network integrated projectbelg
Cluster management excellence and the spectrum and frequency of business-related services of the cluster organization are important determinants for the impact of a cluster.
services provided by the cluster management organization and achievements and recognition of the cluster management organization.
and industry-driven clusters Sources of funding Relevance of specific determinants Effects of the cluster's technology field Links between services of the cluster management organisation and SME activities 1
Other examples for specific industry characteristics are the industry sectors of energy and environment, services as well as micro, nano and optic.
In order to support clusters according to their specific needs cluster programs have to take the specific technology foci of clusters into account. 1. 3. 5 LINK BETWEEN SERVICES
AND SME DEVELOPMENT A cluster management organization can influence the development of a cluster through the provision of targeted services for its members (see Box 2 for an overview of services).
This was analyzed in detail for SME members by calculating a composite indicator for business-oriented services provided by the cluster management organization that was put in relation with the impact of the work of the cluster management organization on business activities of SME.
Figure 15 displays a correlation between the spectrum and intensity (in terms of frequency) of business-oriented services and the impact of the work of the cluster management organization on business activities of SME.
The more services are provided (see e g. the median value the higher the impact on business activities of SME is.
of SME Share of clusters having initiated many successful co-operations Median value Energy & environment Micro & nano & optic Biotechnology & health Services & nontechnical innovations
Effect of Spectrum and Intensity of Services on Business activities of SME 0 10 20 30 Impact on business activites of SME Significant and sustainable impacts for a significant number of cluster
)( see Table 5 on next page) as well as a high level of services and activities. In terms of structural characteristics excellent clusters respectively their management organisations have more participants and feature more often a higher clarity of tasks and roles in terms of governance.
Organisation Share of financial resources from private sources STRATEGY, OBJECTIVES, SERVICES Strategy Building Process Documentation of the Cluster Strategy Implementation Plan Financial Controlling System
Review of the Cluster Strategy and Implementation Plan Performance Monitoring of Cluster Management Focus of the Cluster Strategy Activities and Services of the Cluster Management Performance of the Cluster Management Working groups
OBJECTIVES, SERVICES Strategy Building Process Documentation of the Cluster Strategy Implementation Plan Financial Controlling System Review of the Cluster Strategy and Implementation Plan Performance Monitoring
of Cluster Management Focus of the Cluster Strategy Activities and Services of the Cluster Management Performance of the Cluster Management Working groups Communication of the Cluster Organisation Cluster organisation's web presence
an adequate level of governance and the provision of services are key characteristics of excellent cluster management organizations that yield effects on cluster development, particularly in regard to the development of business, R&d and international activities
and services that are provided by the cluster management organisation to facilitate the development of the cluster:
and intensity (in terms of frequency) of business-oriented services provided by a cluster management organisation and its effects on business activities of SME.
The more services are provided, the higher the impact on business activities of SME is. 6) The older and larger a cluster is institutionalized,
and intensity of services provided by the cluster management organization and thus on the development of business activities of SME.
Figure 18 displays the causal relationship of structural factors and agenda setters, services and effects:
and intensity of services provided by the cluster management organization which in turn depends on specific characteristics of the structural factors
-or research-driven Technology area of the cluster Structural factors Agenda setters Spectrum and intensity of services provided by the cluster management organization Impact on business activities of SME
Overview services of cluster management organizations 5 Sydow, Jörg/Zeichhardt, Rainer, 2009: Importance of Network Services for the Success of Networks, in:
Buhl, Claudia Martina/Meier zu Köcker, Gerd (eds. 2009: Cluster Management Excellence, Vol. 1: Network Services, Competence Networks Germany, Berlin, p. 20 CATEGORIES OF SERVICES EXAMPLES OF SERVICES ACQUISITION OF THIRD-PARTY FUNDING FOR PROJECTS (PUBLIC FUNDS) Acquisition of R&d
and non-R&d projects on behalf of cluster members Distribution of information about funding programs COLLABORATIVE TECHNOLOGY DEVELOPMENT, TECHNOLOGY TRANSFER AND R&d PROJECTS Organization of tasks forces/working groups Management
study tours Offices or other permanent representations abroad Cooperation with export promotion agencies Services for clusters members that are provided by the cluster
and/or allow cluster members to focus on their core activities. 5 Table 6 gives a general overview of services that can be offered by a cluster management organization to support the development of a cluster:
Network Services, Competence Networks Germany, Berlin, www. kompetenznetze. de/the-service/order-service/cluster-management-excellence-volume-1-network-services 39 Cluster policy
products, services, companies and jobs based on top-class expertise To support interregional specialization and division of duties in order to create internationally competitive centres of expertise To increase the attraction of regional innovation environments in order to lure international companies, investments and leading experts to the region SHOK Strategic Centres for Science,
and innovation environments within specific growth fields TURKEY Support for the Improvement of International Competitiveness (URGE) To develop a joint action culture To create new exporters To create new export markets To develop consultancy services
A wider spectrum and a higher frequency of services for the cluster members which in turn trigger economic activities e g. of SME (for further details about the link between services
and consultancy services) that goes beyond internet platforms and regular meetings between program owners and cluster managers.
matchmaking but also individual services. In most cases where programs provide technical assistance this was done right from the start of the program being a part of the program strategy.
PROVISION OF TRAINING AND CONSULTANCY SERVICES) AUSTRIA Cluster Program Lower Austria X BELGIUM Competence Centres-Light Structures X X Cooperative innovation network
to enable it to develop its various services. EUR 8. 3 million p. a. EUR 5 million p. a. EUR 104 millioneur 11 millioneur 452 millioneur 60 million
up to 90%Cluster services provided for collaboration partners: up to 85%Up to 50%50%,60%,70%funding from the program depending on conditionsn. a. 50%funding from the NCE programmax. 50%funding from the programup to 100
NCE clusters receive regular support with internationalization activities through services provided by the program management agency Innovation Norway.
but in some cases programs also make budgets for travel expenses of the cluster management, event organization and consultancy services available.
professional support of cluster managements through tailor-made services has gained more importance in recent years. Many program owners were-as a key element of their strategic approach to cluster development-from the very beginning of the program pro-active in terms of dialogue with clusters, specific criteria for support, provision
They cover topics such as sustainable financing, innovation management, quality management, IPR, internationalization, communication and services.
but only tailor-made services to facilitate individual cluster development. With the establishment of NETMATCH in 2010 the program Innovation Networks Denmark has set up a similar support organization.
In France the association France Clusters offers similar services to clusters that are supported through the Grappe d'entreprises program
but the services are also available to other clusters. Several program owners highlighted that cluster managers have to trust the program owners;
The transparent offer of services and the transparent implementation of instruments are important for trust building.
Targeted, need-focused services such as related workshops and seminars, benchmarking as well as a continuous strategic dialogue with cluster organizations to question
on the one hand they should support cluster organizations through the provision of services targeting cluster management excellence
Since 2006 the annual performance of the clusters that are supported through the program is measured through quantitative data, e g. indicators on number of new services or products
usage of services (e g. matchmaking) offered by the cluster managements, etc. 19 The results of the annual performance assessment is used
and the impact of state aids and further innovation support services with the aim to improve single innovation policy instruments as well as to coordinate the overall regional innovation system with all involved actors/intermediaries.
Many cluster programs provide both of these support services. Comparing the programs that exclusively provide fundingwith those that supply technical assistance and funding,
or cluster programs can provide both services. When comparing the cluster programs that focus exclusively on the establishment of new clusters with those that focus exclusively on the further development of matured clusters towards excellence clusters,
and networks of cluster managers should be supported through adequate instruments. 2. Cluster managements should get support for the development of value-adding services that can be offered to the cluster members. 3. Cluster managements should get support with the development
and value-adding products and services for the cluster members. And it is also about developing favourable framework conditions in
need-focussed services such as relevant workshops and seminars, benchmarking as well as a continuous strategic dialogue to question
the multistage process whereby organizations transform ideas into new/improved products/services or processes, in order to advance, compete
%Services 22.56%17.95%21.59%17.28%18.78%21.98%23.51%20 49%Sources: Carta Alba a IMM-urilor din România (White Charter of SMES from Romania), Editions 2004,2005, 2006,2007, 2008,2009, 2010,2011.
Results show that the most frequent innovations for the whole period were the introduction or the renewal of new products and services.
and services and new ways of delivering them to customers (Blumentritt, 2004; Laforet and Tann, 2006.
Figure 2. Dynamics of investments in innovations in Romanian SMES Renewing products either as new products/services or modernized products/services
Table 4. The level of renewing products and services in Romanian SMES in 2003/2004 2010/2011 (percentage of the turnover collected from the sale of innovative products) The level of renewing products
/services 2003/2004 2004/2005 2005/2006 2006/2007 2007/2008 2008/2009 2009/2010 2010/2011 0%22.10%22.44
Miller, C. and Brooksbank, D. 2004), The use of Web services for SME innovation and technology support services in Wales, Journal of Small Business and Enterprise Development,
we must continue to deliver consumer-driven innovative products and services as well as further developing new business models, new organisational structures and skills for innovation.
However, emerging sectors where innovation can be exploited better include services and public procurement and these two areas will be given additional focus.
, Clusters and Gateways 17 6 Intellectual Property Protection and Management 21 7 Services and Emerging Sectors 23 8 Entrepreneurship and Business Expansion 25 9
and apply technology innovation in products, services and business processes. Success, however, does not depend on Government and policy alone.
including the development of new or enhanced products and services and the introduction of new business models, new organisational structures or new work practices.
New thinking and policies on services innovation are being developed. Many services firms serving international markets from Ireland, for example, have been particularly successful in adopting innovative approaches to servicing international supply chains.
Innovation andpublic policywhile enterprises and individuals are the primary sources of innovation, public policy can establish the right framework conditions for innovation to flourish.
to develop new products and services. Innovation in Ireland Summary 2008building knowledge partnershipsour development agencies are attuned fully to keeping innovation at the core of their strategies and policies.
Public bodies can request tenders that provide innovative solutions rather than just basic products or services.
and prove the viability of new products or services. In this way, innovation in public procurement can stimulate long-term export success by showcasing emerging and innovative products and services and providing authoritative reference clients for Irish companies.
Pre-commercial procurement where the risks are shared between public procurers and firms-can be used to promote innovation while respecting State Aid rules.
This rapidly growing global market in which the public sector is the most likely early mover is open to SMES with innovative products and services.
Innovation in Ireland 200822 Innovation in Ireland 200823 Nearly 70 percent of The irish workforce is employed now in the services sector,
and, with services exports worth €64. 8 billion in 2007, Ireland is now the 11th highest exporter of services in the world.
We are refining policies and supports in line with both the opportunities that services innovation offers,
Ireland's focus on services has the potential to give us an‘early mover'advantage. This enables us to develop truly innovative policies
Forfás convened The Services Strategy Group to develop a national services strategy with the aim of maximising the returns from existing enterprise services,
and developing new service industries. The Group acknowledges the need for and recommends the development of a National Services Innovation Policy and Strategy.
Innovation where it's most needed and least expected Services and Emerging Sectors Innovation in Ireland 2008 Innovation in Ireland 2008international financial services Financial services have become more important as a source of both wealth generation and employment in Ireland.
The international financial services sector operates in a global environment, in which innovation and productivity are essential drivers of competitive advantage.
Innovation in environmental goods and services While climate change and the need for more sustainable use of resources pose significant challenges for industry,
they also offer significant opportunities for innovative products and services in a range of sectors.
The environmental services sector has expanded greatly in recent years, with annual global sales now at €680 million,
With greater competition in markets, companies need to draw on all their entrepreneurial and innovative skills to develop new products and services,
and assist people and firms to produce new services and products and gain new markets.
introducing new products and services and more efficient ways of working. They underpin the adaptation of our economies and societies to new challenges and drive economic development.
and services and increasing efficiency but also for meeting the job creation challenge of high unemployment. In the short to medium term there is a real opportunity for governments to use policies for entrepreneurship
while the massive shift from manufacturing to services is bringing with it new types of non-technological innovation that render economies of scale in R&d far less significant.
technologies) from abroad and in exploiting its outputs (products and services, patents, licenses, etc.)in foreign markets.
For example, it may involve SMES in tracking competitors'actions through electronic monitoring of news and information services or the introduction of total quality management techniques on the work floor.
non-technological innovation is equally important to services and manufacturing (European commission, 2007). This is very significant
because the services sector has seen a dramatic rise in its share of economic value added in recent years (rising for example from 55%to 70%of Japanese
The new European union Services Directive is part of a move to redress the balance in Europe by removing legal and administrative barriers to the full tradability of services within the European Single Market.
logistics, product service and ancillary corporate services. Cohen (2010) calls this the Silicon valley business model, for where it first developed into a significant economic force.
which has opened up a gap for the entrepreneurial supply of social goods and services. This too can be seen as part of the above-mentioned shift from the managed to the entrepreneurial economy.
They generate new goods and services such as environmental protection and services to the individual. At the same time many address problems of unemployment and the social problems of poor neighbourhoods.
Furthermore, whilst many of the goods and services offered through social enterprise and social innovation seek to fill gaps in purely public provision by welfare states,
At the same time productivity may be enhanced as new firms bring better products and services and better technologies into the economy.
and by closer interaction with users of products and services outside the organisation. The result is localised innovation with usability in addressing problems faced by the firm.
Some organisations operate across the whole innovation value chain from basic research to the final delivery of new products and services (in effect vertically-integrated innovation.
Here new products and services are conceived of and developed entirely internally by the firm through the pursuit of technical breakthroughs.
and‘platforms'on which others provide products or services (itunes, for example). This is not to say that the development of these technologies could not be through open innovation, in our understanding,
and allows it to sell more advanced bolt-on services which improve the experience of using the open source software. 4 However,
and services by carefully releasing related knowledge, allowing others to engage and develop complementary offers.
and business services where there are fewer‘tangible'barriers to new-entrant competition. As organisations consider their place within innovation value chains they reflect on the subtle and complex balance between the advantages and disadvantages of openness for each area of corporate knowledge.
which constrains their ability to develop their products and services, KLM has adopted a partnership model in
To follow this, Amazon has begun offering cloud computing services to smaller businesses, enabling them to buy Amazon's capability rather than developing their own at great cost.
This allows Amazon to offer excellent services to customers at a lower cost while also making a profit itself.
and services this depends on the operation of key open processes; Convergent technology the rise of general purpose technologies, particularly in digital, computing and internet areas has been identified by many as leading to a convergence of platform technologies,
Increasing flows of knowledge services while these flows are incredibly difficult to quantify at a national level,
OECD trade data does confirm that the past decade saw a dramatic increase in the scale of international trades in knowledge services;
and a better chance of successfully commercialising the new knowledge than an SME they may for example have stronger routes to markets or complementary products and services
Equally, some products and services may be driven best forwards through independence and greater flexibility. 18 E g.
We know that such knowledge markets are much more complex than standard markets for goods and services.
(i e. non IP based services and business models in particular) strong venture capital markets are likely to be relevant here for building into a business
the presence of strong business services networks are an equally important consideration. Fortunately for the UK, this appears to be an area of real strength,
Business Services in the Knowledge Economy',London: the Work Foundation, http://www. theworkfoundation. com/research/publications/publicationdetail. aspx?
Business Services in the Knowledge Economy',London: The Work Foundation, http://www. theworkfoundation. com/research/publications/publicationdetail. aspx?
Findings This programme is targeted at providing a wide range of services to a relatively small cohort of companies identified as high potential start ups (HPSUS.
or innovative product or service to international markets, involved in manufacturing or internationally traded services,
and 58 per cent of mentoring services are directed to start-up businesses. The evaluation found that over the 2004-2010 period the financial supports are likely to have paid at least their way in terms of wages,
either providing personal and local market services or are in constructionrelated activities. In terms of SYOB training, there were almost 18,900 participants over the period 28 The Department of Jobs,
it would be advisable to target these soft supports to start ups in the fields of manufacturing and exportable services,
by excluding supports to start-ups in local and personal services. This will require‘real-time'assessment and a more anticipatory and agile support system across the CEB network.
In line with enterprise policy, financial supports are targeted toward manufacturing and internationally trading services companies thereby minimising the potential for displacement.
and services in world markets Foster job creation across the regions of Ireland Promote the growth of new sectors with sustainable competitive advantage Inputs Enterprise Ireland contribution predominantly in the form of equity funding
Enterprisestart, CORD) Outcomes & Impacts Increased number of high potential, innovation-led companies with the capacity to sell innovative products and services in world markets Increased exports
or innovative product or service to international markets, involved in manufacturing or internationally traded services,
and services in world markets in order to foster job creation across the regions of Ireland, promoting the growth of new sectors with sustainable competitive advantage, providing for growth in exports and employment in Ireland.
The increased potential for international trade in services is also pertinent. The Enterprise Strategy Report Group
which reported in 2004 cited Internationally-traded services sector as forming an increasingly important component of trade in the economies of the more developed countries,
Costs to Enterprise Ireland in providing support services such as advice for clients on aspects of their business
over half of recipient companies (54.1 per cent) and over half of all funding (57.8 per cent) fell within Internationally Traded Services,
and Business Services (Table 2. 3). Metals and Engineering accounted for 20.7 per cent of recipients and 21.5 per cent of funding.
0. 9%Financial services 1 0. 7%€-0. 0%Food 8 5. 9%€ 939,380 3. 4%ITS (ICT and Business Services
) 73 54.1%€ 16,192, 797 57.8%Metals and Engineering 28 20.7%€ 6, 033,163 21.5%Mining, Quarrying and Indigenous Services (Health and Education Services;
28,001, 699 The HPSU team works closely with the Investment Services Division of Enterprise Ireland to identify suitable third party funding for start-up companies.
outputs and activities involve the provision/facilitation of HPSU activities itemised in Table 2. 3. Enterprise Ireland offers a wide range of services to HPSUS eligible to be considered for supports
Internationally Traded Services broadly categorised includes Internationally Traded Services and Software and Public Procurement; Manufacturing refers to all other sectors for the HPSU 2004-2006 cohort only. 50 Note that ages of individual companies were calculated in years on a deductive basis,
estimates of nvolved in a of costs and by inflating this is based as were calc f the two HP efit-to-Cost rence betwe d raw mater U group was to should norma or services co ere public
i e. a manufacturing or internationally traded services proposition with the potential to create a minimum of 10 jobs and €1 million in sales.
and services that can add value in the domestic economy and have potential to export.
Transforming Irish Industry highlights the importance of developing the pipeline of new ideas, leaders and innovative products and services.
Salary costs include the provision of soft support services such as evaluating who is eligible for the project,
These salary costs allow for soft support services such as answering queries, organisation of resources for the programme and advice on business issues.
entrepreneurs and businesses to engage in the development and commercialisation of innovative products, technologies and services.
and services by start-up companies with a high potential to grow, underpinned by the effective and imaginative use of technology,
The figure for indirect costs includes support services such as mentoring, answering queries and offering advice on clients business.
The same supports were offered with some additional services available such as one to one meetings with sector experts.
Increase As with program services product Any proj New pro develop develop. 5: Projecte mme Surve Grant Conne ed numbers impacts on e mme in terms.
Propel is relatively new and the full impacts in terms of the development of commercially successful products or services,
and does not support me too businesses or services. Propel has clear criteria in place to ensure participants are appropriate to deliver on these aims.
and services based on research outputs and market led business innovations. Inputs Enterprise Ireland contribution: Organisation and hosting costs;
services or technologies and who would benefit from collaboration with other local businesses and higher education institutes (on a regional scale)
in order to develop innovative products and services. The pilot for Ideagen was launched in the South East region in 2009
and combine this knowledge to develop products or services that service a customer need68. In many instances, this knowledge and expertise does not sit with any one individual or cohort.
skills and creativity of people-and its ability and effectiveness in translating ideas into valuable processes, products and services.
and services by start-up companies with a high potential to grow, underpinned by the effective and imaginative use of technology,
which is weighted then by the amount of time the project leader estimates was spent administering soft support services such as organisation of events,
and the full impacts in terms of leading to the development of commercially successful products or services are difficult to measure at this point.
The premise of the programme is that it leads to the development of new and not me too businesses and services.
Ireland's Competitiveness Challenge FORFÁS EVALUATION OF ENTERPRISE SUPPORTS FOR START-UPS & ENTREPRENEURSHIP 97 into the future is vital for the commercialisation of the research investments and commitments into tradable products and services or intellectual property.
000 per annum related to the cost of providing soft support services to clients through activities such as answering queries and evaluating seed & venture capital opportunities.
and that these staff members provide a day to day information and support services to small businesses and new start ups.
This involves signposting of services and supports for existing and would-be entrepreneurs. The CEBS'presence on the ground locally is an important feature of this service.
A manufacturing or internationally traded services business; A domestically traded service business with the potential to trade internationally;
and/or A domestically traded services being established by a female returning to the workforce or unemployed persons where the potential for deadweight and displacement is likely to be minimal.
500 per employee and a maximum of ten employee C Training & Management Development The CEBS provide Start Your Own Business, Management Development Training and Mentoring services.
and 132 For practical reasons, services, such as management training, may be delivered most effectively jointly to new and existing entrepreneurs.
the services arising from these activities are delivered to both new and existing enterprises. Only Priming Grants and the SYOB courses are focused solely on start-up enterprises.
and 58 per cent of mentoring services are directed to start-up businesses. 9. 9 Impacts and Outcomes Financial supports:
excluding the cost of related advisory services and at €14. 1 million when we include related advisory services.
Comparing the annual benefits to the fully loaded costs indicates that the least favourable scenario would mean that each firm supported would have had to deliver the employment benefits for a period of approximately 3 years
. 0 Manufacturing Green Technology 1 1. 4 Other Manufacturing 8 11.3 Software Development 3 4. 2 Web Based Services for Consumers
0 0. 0 Web Based Services for Businesses 4 5. 6 Construction and Related Activities 8 11.3 Personal & Local Services for Consumers 25
35.2 Other Consumer Services 6 8. 5 Services for Businesses 10 14.1 Other 4 5. 6 Total 71 100.0 Source:
while there may be further efficiencies possible in terms of delivery FORFÁS EVALUATION OF ENTERPRISE SUPPORTS FOR START-UPS & ENTREPRENEURSHIP 145 of services,
Joint purchasing of services and other supplies by CEBS; Joint development of courses, publicity material and reference material;
either providing personal and local services or are related in construction activities. This indicates substantial scope for product market displacement,
and export oriented services, this is less of a concern. However, exceptions are made where a domestically traded service is being established by a female returning to the workforce
or exportable services if resources were to become more limited or if 148 demand from this cohort could not be met.
In these circumstances the more effective use of resources would exclude supports to start-ups in local and personal services.
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