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:
and include not only R&d based new products and services, but also improved designs and processes and the adoption of new technologies.
the most important goals are to promote the development of the private venture capital industry and associated services,
nonfinancial innovation advice such as consulting services; recruitment of university graduates and skilled personnel; awareness of new ideas and technologies;
and introduce new products and services. Rothwell (1989) suggests that small firms can have an innovative advantage due to differences in management structures.
and research oriented consultancies which include engineering services, technology consultants, and (2) R&d boutiques. As shown in table 1,
ICT services, high tech8, R&d services. 50%are technical service companies (ICT, R&d) Both from manufacturing and services,
rarely from services industries AGE Younger companies than average (33%are less than 5 years against 24%for all participants in FP) 59%were created over 10 years ago 64%of were created more than 10 years
Even the smallest of firms can engage in certain activities--from plant watering to specialised legal services--better than a giant corporation.
in order to provide services, such as training, to customers. While such services could be contracted out, the asset specificity of the product, combined with its high technological sophistication,
virtually bundles the service component with the manufactured product. 46. In the experience of the German Mittelstand,
and networking services which the region's enterprises often cannot afford individually. These networks defy sectoral barriers:
specialised firms since complementary inputs and services are more likely to be available in a diversified competitive environment,
These benefits from the extending the enterprise's activities abroad must exceed the benefits expected from externalising its property rights through other mechanisms such as licensing, management contracts, franchises, technical services agreements, turnkey projects, and subcontracts.
Participation of SMES in the Fourth Framework Programme (excluding CRAFT+Exploratory Awards) 33%41%26%hightech knowledge intensive services non-high tech manufacturers Source:
Ernst and young describes the types of consultancy services innovation agencies can offer, using Business Links as an example (Figure 4). Figure 4:
Types of services, including consultancy that are offered by Business Links 19,4 6, 3 2, 5 7, 5 12,6 12,6 12,6 18,9 7, 5 1, 2
such as scanning or consulting services. -They need help recruiting university graduates and other skilled personnel.
Because of their very different needs, the public R&d granting institutions are positioned not well to provide these services.
or regional level and innovation services are most effective when decentralised and local. Second, these institutions are bureaucratic and technical,
services should be offered by organisations that combine business and technical WK1 30 skills. The current innovation policy landscape is fragmented too in most countries to offer such combined services public bodies either offer pure technical advice or just financial help.
Conclusions 96. In most countries, technology programmes are organised by technology domain or sector. They do not target different subpopulations of companies.
the regional innovation centres offer services of varying quality; governments are unsure how long or even whether they should be subsidised;
In their study, Mazzarol and Reboud (2008) considered innovation to be related to new products or services, new production processes, new marketing techniques,
OECD (2004, p. 9) defined innovation as, The introduction of new or improved processes, products or services based on new scientific or technical knowledge and/or organizational know-how.
Mazzarol and Reboud (2008) saw innovation as the realization of new products or services, new production processes, new marketing techniques,
but it may indirectly influence the introduction of products or services, or the process of producing them (Kimberly and Evanisko 1981).
These expenditures are allocated for costs of material and other accessories as well as costs of manpower involved in developing new products and services at the firm.
The markets for learning and educational services a micro explanation of the role of education and competence development in macro economic growth.
and her experience in a French Innovation Agency has allowed her to gain experience to help SMES, academic researchers and other stakeholders to build multidisciplinary research projects and innovation services.
Innovation processes need to be managed from the generation of ideas to the generation of profits on the markets with new products/services.
How to develop the marketing of innovation and of innovative products and services? This challenge is particularly true with regard to the promoting of internationalisation
including government services such as health or education. However, for the current thematic analysis, the focus is solely on innovation in SMES.
and delivered business support services in the regions. The main tools/facilities used by CIP to support innovation activities were:
It is designed principally to strengthen the role and innovation services of the Enterprise Europe Network-EEN under this programme.
and services and yield benefits for both public and private sectors. These benefits include: Increased economic growth Better products and services Initiatives towards solving societal challenges In 2009,
public procurements accounted for about 19%of the European union's GDP, and in 2011, the European commission estimated the number of contracting authorities to be about 250 000.
on European Innovation Agencies Improvement of innovation services provided by the Regional Innovation Agencies ERIK ACTION http://www. eriknetwork. net/erikaction/Upgrading the innovation capacity of existing firms
and Innovation and to contribute to the transformation of knowledge into new and marketable products and services.
This will increase the range and quality of services available to SMES, as well as strengthening international networking
%It can be used to finance a wide variety of services: technical feasibility studies, tests, product characterization, prototypes, market survey, technical state of the art, modelling,
and demand in the field of innovation services. Calls for proposals focused on innovation were financed from an Innovation Fund.
The National Office for Research and Technology (NORT) launched a call for R&d services in the regions in which SMES could apply.
in order to improve their products and/or services, facilities, equipment, and other necessary modifications. The mechanism also aimed to promote investment in developing strategic areas such as quality, new technologies, environment, security and hygiene.
Furthermore, grants can also be allocated up to a maximum of €30 000 for consulting services (training, advice on intellectual property rights, market research, technology transfer services,
where all international services are available to stimulate international entrepreneurship and innovation PERIA43: o International Cooperation Visits o Foreign Trade Fairs It is very interesting to note the GPS that tackle the challenge differently, in such a way as IVEX or ICREO.
Only the INNOHUBS and the SMART+projects promoted GPS offering, among other services, training courses and consultancy in innovative tools for SMES:
and procure goods and services in international markets. Assistance is provided in two different phases: i) Inception:
and real added-value services were deployed at local level for the final beneficiaries. This was a small-scale measure with a good potential reach.
and start-up stages by providing them with advisory and capital services. 45 GPS described in the ERIK ACTION Good Practices Report:
and develop products/services/technologies together. This increases the regional and national competitiveness of the country.
The initiative provides financial instruments to support those spinoffs with huge growth potential that are capable of generating new products, technology or services from research results.
cluster internationalisation and cluster creation Most GPS addressed services to support cluster management/development improvement:
The action is open to SMES of all sectors of industry and industryrelated services. The support consists of 4 pillars:
to promote innovation processes within the business system PERIA49 o Cluster Management Services, to strengthen cooperation between cluster members MINI-EUROPE particularly focused on GPS related to cluster management improvement with three of them adapted to other regions (annexe 3). Concerning SMART+,sub-projects such as
small-scale (often up to €25k) for provision of external technical services(§3. 2. 1). Very high Venture capital Funds MINI-EUROPE Financial Engineering Financial engineering
Loans and Guaranties PERIA Young Innovative Enterprise Contract Public loans for young innovative enterprises and public grants for consulting services(§3. 2. 1). High Private
e g. small scale grants (typically up to €25 000) for the provision of technical services, as addressed in MINI-EUROPE, DISTRICT+and PERIA.
of SMES to help them access external markets for their innovative products, processes or services.
and to help them stay up to date with innovation support services and policies. The RDT Bretagne GP (ERIK ACTION),
such as peer-to-peer lending services or crowdsourcing (fund-raising for specific projects from individuals, normally using web platforms to reach scale).
tools and methodologies for linking knowledge providers with enterprises to increase the development or uptake of eco-innovation products and services.
allowing policy practitioners to deliver the right level of support services. Figure 10: DISTRICT+-Content Analysis Shortage of financial resources for innovation Shortages in skills to manage innovation,
Within specific technological sectors, the poles deliver advanced services to strengthen the links between the research and the business systems.
(2) to develop a cluster of innovation support services and (3) to favour the establishment of industrial clusters.
Lately, the growing penetration of cloud technologies opens up further new paths for the provision of new services,
and web/cloud platforms for improved provision of services that could be followed by other projects. 66 Upgrading the innovation capacity of existing firms:
which promotes Corporate Social Responsibility as a means by which SMES can reposition themselves and their innovative products and services in the market,
in order to improve their products and/or services, facilities, equipment, and other necessary modifications. The mechanism also aimed to promote investment in developing strategic areas such as quality, new technologies, environment, security and hygiene.
The services are provided by local advisors or hired-in professionals. Regular training sessions also take place in the centre
and market research/business intelligence services are available. Company growth is associated always with product or process innovation.
It offers free services to support SMES in all phases of innovation development. It can go from a simple phone call to personal meetings,
) Shops by hand is a retail trade network created over ten years ago to help its members develop innovating services and products to locals and tourists in their villages.
and procure goods and services in international markets. Assistance is provided in two different phases: i) inception:
the research centres and the consumers together in order to develop innovative products, services and processes. The food sector always needs to adapt to consumers and social issues (environment, climate and health issues.
and develop products, services & technologies together. This increases the regional and national competitiveness of the country.
and the transformation of knowledge into new and marketable products and services, through the sharing of experiences and good practices, development of joint guidelines and methodologies, amongst Regional Innovation Agencies (RIAS).
‘Cluster Management Services'and other networking support programmes, corresponding to the barrier of‘weaknesses in networking';
'Technology transfer services and other SMES/Universities joint R&d collaborative programmes or business cooperation. Furthermore, some of the Good Practices also addressed the Innovation Systems theme (Regional Innovation Scoreboard,
Foreign Trade Fairs (Internationalisation) Creation of R&d Depts. New staff) Cluster Mgmt Services (Cluster mgmt) Innovation vouchers Young Innovative Enterprise contract (loans) New
Furthermore, grants can also be allocated to a maximum of €30 000 for consulting services (training, advice on intellectual property rights, market research, technology transfer services,
%It can be used to finance a wide variety of services: technical feasibility studies, tests, product characterization, prototypes, market survey, technical state of the art, modelling,
and measures for regions wishing to enhance the services provided by their Regional Innovation Agencies.
The Role of Innovative Services in the Tourism Market to Support Regional Development (Smart Tourism:
as a result of the response to a bottom-up call for proposals open for six topics (Consulting Services for SMES, Cooperation between SME & Research Institutes, Financial services for SMES, Company-based Innovation Management, SME Network
and real added-value services were deployed at local level for final beneficiaries. This was a small scale measure with a good potential reach.
This allows for better services to be deployed to a specific group of SMES (e g. to the tourism sector,
) These‘activities'(e g. goods or services) may be undertaken by a single firm or divided among different (supplier) firms
ICT services for public health. On the other hand, globalisation and advances in ICT allow firms to fragment their production in the global value chain.
Countries tend to specialize in specific‘business functions'or‘activities'rather than specific industries (e g. assembly operations for China or business services for India.
systems but also of business R&d, the rise of services and of new global players in STI such as China and India) and shorter-term developments such as fiscal austerity in OECD countries
Internationalisation support services INNOVATION-DRIVEN GROWTH IN REGIONS: THE ROLE OF SMART SPECIALISATION OECD 2013 25 Coordination externalities Low‘self-discovery'activity due to the high fixed costs and large-scale investments required by some projects.
Coordination among many economic agents throughout the value chain suppliers, producers, users, specialised services, banks, basic research and training institutions.
it has an important role in own right by creating markets (low carbon) and as a procurer of government goods and services (e g. infrastructure, health services).(
Some OECD countries have reduced specialisation in sectors such as steel and shipbuilding and increased specialisation in fast growing and high value added areas such information technology services.
but in specific functions or activities in the value chain (e g. assembly operations for China or business services for India).
Catching up regions may want to focus on policy instruments that increase the absorptive capacity for these technologies such as providing consultancy services to SME to facilitate the adoption of specific technologies;
Differentiation of the activities/assets/services offered by the region (e g. to attract firms or foreign investments) Different processes,
reliable services and integrated solutions to various industrial sectors and countries based on the complementary experiences existing in the Estonian ICT sector as a whole.
This includes the creation of several world class e-and m-services for both public and private sector (the ID-card applications, m-parking solutions, etc.
High Value-added service industry (Global healthcare, Global education services, Green financing, Contents and software and Meetings, Incentives, Conventions and Events and tourism industry) Brainport Eindhoven Region
ii) providing advice and services to SMES; iii) participating in schemes promoting the training and placement of high level graduates in innovative businesses;
'CID Working Paper 128 Hecht K. 2007),‘Intelligent Policy Management in the IMS Frameworks'at Business models and Drivers for next generation IMS services.
products and services made possible through ongoing R&d and innovation. The GRDC investment in R&d represents approximately a quarter of the total investment in Australian R&d for grains21.
The use of an open innovation model in sourcing R&d services allows GRDC to flexibly engage in multiple specialised fields of research as required by its priorities.
The local networks provide business incubation, research and technology development, pilot production and equipment services, management and marketing services, human resource development and technology transfer.
Their technological and human capacities can be utilized to provide technology development, extension services and testing and accreditation services locally.
and iii) intensify business services by capacity building and better coordination of service agencies. OECD 2013 81 When planning how to further develop,
including incubators, Engineering centre, Suppliers Village among other services. The knowledge base stems from the School of Aeronautic Engineers and the rest of applied studies from the Universities of Seville, Pablo de Olavide, Cádiz and Córdoba.
A long established, independent design engineering sector offers the full spectrum of services from concept design through to limited-series vehicle production.
and researchers by providing businesses with services directly related to securing a competitive edge; and iii) Establishing world class regional facilities
Advices and services: Lower Austria implemented programmes (soft measures) providing services to support R&d&i activities of SMES.
Its innovation strategy focuses on the establishment and expansion of targeted industrial competencies. At the fore, there is the ongoing development of existing and formation of new value creation chains, especially in technological/market niches,
but combined with soft measures described above, e g. a funding scheme for cooperation projects and OECD 2013 101 services of the Cluster managements, a funding scheme for technology projects and services of the Technopol managements,
or a funding scheme for R&d projects and services of the Technology and Innovation Partners.
is a FDI branch plant driven economy characterised by a relatively underdeveloped sector of knowledge-intensive business services.
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.
The incentive system was adjusted subsequently to target FDI involved in higher value added operations (high-tech manufacturing, R&d, strategic services etc..
ii) services for companies; iii) human resources; and iv) internationalisation. Strategic goals and activities were proposed for each priority axis
Services for companies: i) incubation programme-three business incubators with more than 7000 m2 office and laboratory space, micro-loan fund.
and iii) cluster development services most important the building up (incl. soft facilitation of cooperation) of the Centre of competence in machine tools.
Future development for smart specialisation The first two generations of RIS were mainly about the development of incubators and services for innovative start-ups.
and to achieve socioeconomic objectives in the areas that are important for every resident of Estonia, for instance in energy, national defence and security, health care and welfare services, INNOVATION-DRIVEN GROWTH IN REGIONS:
THE ROLE OF SMART SPECIALISATION 126 OECD 2013 promoting services, equipment and nutrition; iv) Timber built environments and scarce resources in housing;
and iv) Design services. Figure 2. 8. National (Lead Market) Themes and Practices in 2008-2010 Source:
In addition to that there are extensive services offered by the cluster management organisations, e g. support for scientists and new companies in networking, searching for partners, technology transfer, founding, financing, advanced training, business development and internationalisation as well as the initiation and realisation of joint R&d projects.
which also includes health-related services. The expansion of the cluster is to create new jobs by way of the continuous further development of the innovative core,
SEZ is designed for all businesses from industry and services, but there are some preferences to companies from industries, mainly automotive or services like ICT, R&d, financial and accounting services (BPO).
The strategy of SEZ as well as Technology Park Kraków is to focus the activity on ICT industry.
-tech manufacturing industries and knowledge-based services. The examples of the structural changes taking place in the Malopolska Region are presented in Table 2. 1. OECD 2013 137 Table 2. 1. The examples of structural changes in the Malopolska
and then located in Malopolska the centre of common services). Radical foundation of new domains The emergence and growth of ICT industry.
Production processes, industrial equipment Austria, United kingdom Flanders, South Moravia, Basque country Services Austria, Finland, South korea Maths and chemistry Austria Maths and engineering
Value-added service industry Global healthcare Global education services Green financing Contents and software Meetings, Incentives, Conventions and Events and tourism industry Life science, biotech, biomedicine
, pharma, health ICT Environmental technologies, energy Mobility, traffic, transport, logistics Nanotechnology, materials Agrifood Water Services INNOVATION-DRIVEN GROWTH IN REGIONS:
Do regional research and innovation priorities and the type of support (grants, loans, guarantees, vouchers, business services, access to laboratories, qualified personnel,
especially the growing competition of foreign products and services once the commercial barriers had fallen. Romanian SMES are the one of the most affected area.
INNOVATION ACTIVITIES WITHIN SMES BY FIELDS OF ACTIVITY Fields of activity No Innovation activities Industry Constructions Trade Tourism Transportation Services New products 47.56%32.26%31.25
SMES'INVESTMENTS IN INNOVATION BY FIELDS OF ACTIVITY Fields of activity No Part of investments dedicated to innovation Industry Constructions Trade Tourism Transportation Services 0%12.82%17.86%29.32
or renewed products and/or services introduced in the last year, we notice that: 21.53%of the enterprises hold a percentage of 5-10%;
Only in 5. 50%of the SMES, the turnover resulted more than 50%from new and/or renewed products and/or services.
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,
%20-50%and more than 50%of their turnover generated by new products/services, the small sized companies hold the highest weights (23.21%,22.18%,respective 6. 83%).
%If we consider the firms having more than 50%of their turnover generated by new products/services the highest percentage is recorded by the companies in tourism (11.11),
%respective 31.03%)of their turnover generated by new products/services. See table 6. TABLE VI.
PART OF SMES TURNOVER GENERATED BY INNOVATION CLASSIFICATION BY FIELDS OF ACTIVITY Fields No Part of of activity turnover generated by innovation Industryconstructions Trade Tourismtransportation Services 0%15.26%10.34%25.58
%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
and 21.24%of the economic agents made no innovation efforts in 2007 Only in 5. 50%of the SMES turnover is generated by new products/services in a proportion of more than 50%.
and services developments that are driven both market and offer a value-addition component to the supply chain.
and services being enhanced over time. However these enhancements typically took the form of refinements in components rather than changes in the system.
Baker (2002) stated that incremental product/service innovation was oriented toward improving the features and functionality of existing products and services.
Radical product/service innovation was oriented toward creating wholly new products and/or services. Hamel (1996) contended that radical business concept innovation was paramount.
Radically re-conceiving products and services, not just developing new products and services Redefining market space Redrawing industry boundaries.
For the sake of the study the first reviewed types were considered as the types of innovation
Ahmed and Taha (2008) stated that it was necessary for organizations to put together different capabilities and services with the goal,
through networking some services can be exchanged for free. SMES should recruit skilled personnel. New ideas can be injected in the business rather than relying on the founder or owner s knowledge.
and constitute the‘last mile'in many transport services. Traffic congestion Urban expansion and high dependence on the car and truck have led to congestion in cities and towns across Europe.
Demand management strategies based on economic tools, regulatory measures and tele-services; Mobility management plans and communication campaigns for managing mobility demand;
Innovative approaches to city logistics are being developed that incorporate new mobility concepts and seamless mobility services.
innovative, integrated technologies and services with applications in buildings (heating/cooling), grids, mobility, traffic management,
and to provide services that enhance the overall urban system and surroundings. Thus, an integrated package of measures needs to be developed that includes consideration of the environmental and social impacts of transport
To this end, there is increasing emphasis in urban areas on interconnecting road, rail, underground metro infrastructure and services,
Research has focused on information and communication on alternative transport options, such as awareness raising and information campaigns, organisation of sustainable homework and home-school transport services,
The EU Regulation on Public Passenger Transport Services by Rail and Road (Regulation EC no 1370/2007) sets out conditions for competent authorities to grant exclusive rights and/or compensation to public service operators.
and integrating services into the urban transport network. Directed to stimulating use of public transport, research has been carried out on infrastructure design (such as, accessibility of stations), operational and maintenance systems,
and on the public image of the public transport services. Research on intermodal public transport is directed to seamless transfer from one mode to another by, for instance,
and car and bicycle sharing services. New technologies are being developed to improve public transport use, such as PRT (Personal Rapid transit), BRT (Bus Rapid transit) and GRT (Group Rapid transit
and new services such as demand responsive public transport. These technologies and services are being tested in the CIVITAS Initiative, in the Citymobil projects and in the Intelligent Energy-Europe (IEE) programme.
Sustainable mobility concepts Research has shown that sustainable mobility concepts include solutions that stimulate sustainable car use (such as car sharing
and use of flexible public transport services such as buses on demand. Increasing attention is being given to nonmotorised transport.
For the first time, Europe's leading bus manufacturers have pooled resources in pre-competitive research to define innovations in urban buses. The R&d project is focusing on providing passengers with real-time multimodal information, quality services
and onboard services. In addition, R&d included improving commercial speed by shortening journey times, improving reliability and punctuality of services,
and enhancing safety for passengers and drivers. Project reference: European Bus System of the Future Status:
Improved onboard e-services with screens providing information on real departure times and disruptions with alternative routes,
and takes account of future mobility trends and services for passengers and operators. For example in Paris, the EBSF bus station offers diversified services to fulfil both transport and urban requirements:
electric bikes for better intermodality, library, public Wi-fi, dedicated space for mobile retailers. EBSF can become the core of the transport network for seamless mobility of urban citizens.
directed to providing the More accessible urban transport Easy access to efficient transport services whether road,
and to improve access to regular services in all appropriate transport modes. Policy focuses on improving the mobility of the disabled
services and facilities to help overcome social exclusion. The key policy focus is to provide all citizens with easy access to alternative transport solutions to the car.
All passengers commuters, local residents, visitors need real-time information to make choices on when and how to travel, such as schedules, travel options, orientation guides, connecting services,
and visitors with real-time travel information and transport planning services both face-to-face and via the web.
These projects have developed a common methodology for assessing accessibility of public transport services and have identified best practices on how to improve urban mobility,
services and public information directed to eliminating barriers in the public transport chain. In addition, a software tool was developed to assess the accessibility level of buses, stations and hubs,
The directive covers vehicles purchased by public and private entities providing public transport services. Such requirements are expected to enhance market uptake of environmentally friendly vehicles,
Regulation of the European parliament and of the Council on Public Passenger Transport Services by Rail and by Road, Regulation (EC) No 1370/2007, Brussels. European commission (2009a:
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