In Canada, combined SME support through R&d programmes and venture capital increased the number of high-growth companies considerably.
Improving access to venture capital (VC) may be a priority policy objective when supporting high-growth SMES.
aiming at establishing a European venture capital market. Section 4. 2. 2.)Internationalisation: Companies seeking to grow quickly need large international markets.
Canada provides insights about the combination of government-funded research and venture capital; Israel is of particular interest due to its current innovative and economic performance.
Since the high tech bubble burst there has been a drastic drop in capital financing, especially for venture capital (VC.
The Commission's main role could be to drive the further expansion and improvement of the Single Market, e g. for venture capital,
From a European perspective, this means e g. to realise a single market for venture capital. 10:
Data from various secondary sources is used here not only for exhibiting numbers of high-growth enterprises but also for other indicators such as venture capital provision.
One with OECD economist Jonathan Potter, one with US venture capital and innovation policy advisor Burton Lee,
High-growth finance includes primarily the availability of venture capital through business angels, specialised private companies, other corporations or public funds,
Venture capital should correlate with companies'growth stages. As regards real estate, innovative start-ups may benefit from business incubators as well as science and technology centres.
Dept, venture capital Real estate: science & technology parks Incentives Individual benefits Income: direct, e g. taxation, bankruptcy regulation;
%the European commission (30%)and financial institutions (8. 8%),is a specialist provider of SME risk finance across Europe and a major player in the European venture capital market.
EIF can usually invest 10 to 25%of the total equity of the intermediary venture capital fund or up to 50%in specific cases;
EIF can invest 7. 5 to 15%of the total equity of the intermediary venture capital fund or, exceptionally, up to 50%.
The programme seeks to bridge the gap between start-up and larger international venture capital funding. Accelerace's services are sponsored for free
Policies for high-growth innovative SMES v1. 6 34 omy together with Finland's most important R&d&i funding agency Tekes and Veraventure, a venture capital investment company
serving as the hub for public early-stage venture capital investments. VIGO is a type of incubator that focuses on young enterprises with high growth potential.
For example, the label of The swiss CTI Start-up coaching programme has become an important determinant in attracting venture capital, angels'investment and other financing partners
Companies with considerable growth perspectives may be looking for venture capital i e. professional equity co-invested with the entrepreneur to fund an early-stage (seed and start-up) or expansion venture. 92 Venture capital is a subset of private equity.
Other sources of finance include leasing, factoring, hire-purchasing and trade credits. Finally, companies may use public subsidies in the form of direct grants, reduced interest rates for bank loans or deficit guarantees.
Discussions and analyses about high growth of companies often focus on venture capital. There are empirical indications that a well-functioning venture capital market is conducive to growth not only of single companies but also of national economies:
Venture capital injects economic dynamism: An increase in VC investments of 1 of GDP is associated statistically with an increase in real GDP growth of 0. 30 pp.
Early-stage investments have an even bigger impact of 0. 96 pp. The direction of causality is not always easy to establish.
often reliable data are not even available at the country level. 96 92 Definition of the European Venture capital Association,
%and Italy (12%).97 The economic and financial crisis has had starkly deteriorating effects on the venture capital market.
it is still difficult for high-growth oriented companies seeking venture capital to find adequate funding.
EVCA (2011) The level of development of venture capital markets and thus the difficulties to obtain VC are very different among European countries see Exhibit 4-3. The UK is the single largest VC market in Europe;
or expansion phase under the Competitiveness and Innovation framework Programme (CIP) for the years 2007 to 2013.105 Single market for venture capital investment:
At present, there is no integrated European venture capital market-the regulatory situation varies widely from country to country(..
The EU is seeking to unify the venture capital market(..To achieve this, it is promoting cross-border venture capital investments. 106 However,
while there is a consensus among Member States on promoting mutual recognition of national frameworks, no significant measures have been taken yet that would make fundraising
and Venture capital Association (EVCA) suggests to adapt and refine the existing structures of public support for venture capital
in order to increase its competitiveness, attract private investment and also to lead to a phased reduction of its dependence on public money. 109 The EVCA suggests a Venture capital Action Plan 2010-2020 for the EU,
following the EU's Risk capital Action Plan of 1998. According to the EVCA, the European VC market is fragmented highly
The government also plans to encourage venture capital investment from overseas funds, oil money, and other sources.
the Canadian experience suggests that a government focus on high-tech SMES combined with adequate levels of venture capital financing holds the greatest potential for creating gazelles and that these firms show unusual resiliency.
The Canadian experience (see section 5. 3) of linking governmental R&d funding with venture capital investment suggests to focus high-growth policies on technology-based industries
This may for example mean to focus policies on improving access to venture capital instead of access to micro credits. 142 How are policies for innovative high-growth SMES distinct from general SME policy?
Inno-biz and measures to strengthen venture capital investment The Korean government intensively fosters the programme inno-biz (acronym for innovative business.
which venture capital is invested, which invest in R&d and which commercialise new technology. 147 SMBA continues to promote the venture sector as a new growth engine.
The government also plans to encourage venture capital investment from overseas funds oil money, and other sources.
established by professor or researcher 582 1, 555 Number of graduate schools for venture business 0 5 Venture capital (in 100 mio.
policies to back venture finance Summary The Canadian experience suggests strongly that a concentrated focus by governments on high-tech based SMES combined with adequate levels of venture capital (VC) financing holds by far the greatest potential
Recently, the US venture capital sector has been lobbying hard to change the access rules to SBIR funding for SMES controlled by venture capital firms.
when a combination of venture capital 150 See Cooper (2009). Policies for high-growth innovative SMES v1. 6 69 and IRAP assistance is available,
firms at the development stage with high burn rates have had to cut back activities. Even with these cutbacks, many of these firms have only one year or less left of funds available to them from earlier financing rounds,
According to the Canadian Angel Investment Network their members are currently investing over CAD 3 billion in Canadian businesses each year. 155 Venture capital:
USA Venture capital: The US experience is similar to that of Canada, in terms of the collapse of financing since the bubble burst in 2000 where VC dropped from a peak of 100 billion USD to just 18 billion USD in 2009.
However, a study by Cooper of 2, 240 firms which had received venture capital (CAD 18 billion dollars) between 1995 and 2005 showed much higher levels of gazelles creation at 12%in the 1, 500 technology based firms,
The Effects of Government-Sponsored Venture capital: International Evidence. 162 See Government involvement in the venture capital industry International comparisons,
http://www. cvca. ca/files/Downloads/Government involvement in the vc industry intl comparisons may 2010. pdf. 163 See Hellmann 2005 study. Policies for high-growth innovative SMES v1. 6 73 ticular interest in the richest program.
The Effects of Government-Sponsored Venture capital: International Evidence. CVCA, Canadian Venture capital Association (2009: Why Venture capital is Essential to the Canadian Economy-The Impact of Venture capital on the Canadian Economy.
Available at: http://www. cvca. ca/files/Downloads/CVCA VC IMPACT STUDY JAN 2009 FINAL ENGLISH. pdf 2010 October. CVCA (2010) and Kirk Falconer (2010) Thompson-Reuters. See http://www. cvca. ca/files/News/CVCA Q4 2010 VC PRESS RELEASE FINAL FEB 16 2011. pdf and http://www. canadavc. com/files
/public/Reseau%20capital 02-11 %20english. pdf Cooper, Denys (2009: High Growth and Survival of Government Funded SMES with Venture capital in Canada.
APEC SME Innovation conference 2009, Seoul. Duruflé, G, Government involvement in the venture capital industry International comparisons. http://www. cvca. ca/files/Downloads/Government involvement in the vc industry intl comparisons may 20 10. pdf. Gompers/Lerner (2004:
The Venture capital Cycle, Chapter 13, http://www. google. ca/#hl=en&biw=958&bih=444&q=lerner+impact+sbir&aq=f&aqi=&aql=&oq=&gs rfai=&fp
=23e 9afdc1c4696ce, Hellmann, Ilyaszade and Lee, 2010 An Evaluation of the Venture capital Program in British columbia, http://strategy. sauder. ubc. ca/hellmann/pdfs/Hellmann%20schure%202010
%20venture%20capital%20report. p df. Hellmann, Egan, and Brander, A Comparison of Exit Values across Canadian provinces and US States October 2005.
Ten Years'Lessons from the Canadian Labour-Sponsored Venture capital Corporations. NAS 2009: Awards-U s. Small Business Administration Tech-Net Database;
The Economic Importance of Venture capital Backed Companies to the U s. Economy, 2008, June at http://www. asiaing. com/venture-impact-the-economic-importance-of-venture-capital-backedcompanies-to-the-u-s-ec
and then in the later commercialisation stages they prefer bank loans over equity finance, venture capital,
and acts as a venture capital fund in the early stages. An incubator company receives a development grant of up to 500,000 US dollar for a period of two years.
-growth innovative SMES v1. 6 90 Enhanced access to finance Enhancing the European venture capital market The European venture capital market is fragmented highly
and venture capital Case studies conducted for this report indicate that governmental policies may support access to finance for high growth SMES indirectly.
see also EVCA (2010), p. 13.181 The EC launched a consultation on a new European regime for venture capital in June 2011.182 Statement from Allan Martel, member of the advisory board for this Policy Brief.
e g. for venture capital. 8. Enhance coaching opportunities: Qualified coaching may help grow SMES and cross the chasm between pilot markets and mass markets.
EVCA, European Private Equity and Venture capital Association (2011: Creating lasting value: Yearbook 2011. Harms, Rainer;
Venture capital adds economic spice. Author: Thomas Meyer. Economics and politics research briefing. 14 september. Ministry of Employment and the Economy (2011:
and Entrepreneurship 3 International Journal of Entrepreneurship and Innovation Management 4 International Small Business Journal 5 Journal of Developmental Entrepreneurship 6 Venture capital 7 International
in other words the maximum value serves as a benchmark. We then computed the average of our numeric results
The existing support for smaller or innovative companies (grants, seed, venture capital, loan guarantees) is fragmented and fails to mobilise private sector investment effi ciently or consistently.
European Venture capital Association Improving the access to public fi nancing for innovation by business should be a high-priority for the EU. The acceleration of pan-European venture capital funds is a positive development,
it is very important that a truly European Online Payment System would be developed (like ideal in The netherlands) 22 Current venture capital
BASF's initial investment was €200 thousand together with in kind contributions http://www. basf. com/group/pressrelease/P-09-155 23 Accelerate pan-European venture capital funds
which went on to catalyse the creation of the UK venture capital market. We believe similar leadership from the European commission
and how does it the area benchmark internationally? Do we have critical mass in this area
A wide range of actors were involved including representatives from academia, industry, entrepreneurs, venture capital, industry representative bodies, public sector bodies
and how does it the area benchmark internationally? Do we have critical mass in this area
A wide range of actors were involved including representatives from academia, industry, entrepreneurs, venture capital, industry representative bodies, public sector bodies
whenever similarities or complementarities with other regions are detected. 20 The public administrators of the Top Technology Region contracted The swiss research firm BAK Basel to benchmark
The research resulted in an analysis and international benchmark of the region's strengths and weaknesses.
and venture capital funds R&d subsidies or tax incentives Management advice Incubators with'soft'support'Proactive'technology centres Audits,
and for cooperative projects Participation in national and international competitive research programmes Research spin-off promotion schemes (e g. regional seed and venture capital funds) Regional high-tech clusters, S&t Parks,
and competitiveness poles relevant for regional industry Entrepreneurship and spin-off support (business plans competitions, regional venture capital funds) Incentives for regionally-relevant public research Entrepreneurship support (networks of individuals, training courses,
regional seed and venture capital funds) Densification and internationalisation of regional production clusters Regional public procurement oriented towards innovation Technology platforms (linking technical schools and SMES) Technology transfer centres in relevant sectors,
and transfer of knowledge between research organisations and various kinds of SMES and a blueprint paper on new emerging forms of SME support in the context of open innovation and public-private partnerships (including benchmarks).
Regions have thus to benchmark themselves with any other regions to assess where the real
guarantee funds and venture capital funds. These funds the setting-up of which depends on the choice of the Member States
and the firms benefiting from this seem to have an exceptionally good access to private venture capital for their further growth.
/venture capital, thanks to the faster market access and return-on-investment for innovative firms. Barriers and challenges The main reasons why still too few public procurers in the EU buy innovations and why the procurement of innovation is used still hardly as an innovation support tool are:
Does it foresee an appropriate mix of grants, loans and financial engineering (venture capital? 5. Is the strategy outward looking
as%of the total scientific publications in the country 3. 8 (2011) 5 7 International scientific co-publications for 1 mil. inhabitants 148 200 300 Venture capital
and for maintaining an oversight of the investment activity of funds supported by Enterprise Ireland under the various seed and venture capital programmes.
or even reimbursement finance (loans, micro credits, venture capital, etc..The most repeated instruments in the RIS3 analysis are grants (a traditional support framework in Spain),
Itiswellestablishedthat Venture capital (VC) iscrucialforsmallandyoung firms performance (Bottazzianddarin, 2002; Samilaandsorenson, 2011. The resultsofthisstudywouldsuggestthatthevcrolecouldbe particularlyimportantwhenmftarenotwellfunctioning, andso vertical integrationisabetteroptionforsmall firms inorderto profit fromtheirinventions.
Venture capital firms can now provide capital quickly to the most promising ventures whether or not they are in a large firm context.
hence providing an exit to the original innovators and venture capital investors. They may also be involved even more closely for example in venture investing
Policy responses such as grants, loans, loan guarantees, mezzanine finance, seed capital, venture capital, business angel finance and investor readiness programmes need to be explored (OECD,
Ausindustry administers and delivers a range of over 30 business support programmes involving innovation grants, tax and duty concessions, small business development, industry support and venture capital worth AUD 2
These reviews identify strengths and opportunities for the firm, benchmark against best practices, and furnish access to world-class business tools, processes and technology.
and start-up coaching and early links with private venture capital funds. A 2004 evaluation showed that approximately half of the firms selected for the programme fail.
Private venture capital funds feature a similar failure rate. Given the earlier stage of the firms financed by the programme,
often preventing traditional bank financing and even access to private venture capital funds. Participation in the programme acts as a signal to private investors, crowding them in rather than out.
other companies and venture capital funds can be co-owners. In biyearly meetings of the centres, knowledge and best practice are shared,
and to prepare them to be more investment-ready for venture capital placements. The first three start-up accelerators were selected by a steering committee in June 2009.
The fund invests venture capital in young, high-opportunity technological companies implementing promising research results in an entrepreneurial manner.
demonstrating the success of the concept in stimulating the early-stage venture capital market. Exist EXIST is a support programme of the Federal Ministry of Economy and Technology.
and networks in advanced research sectors), the creation of intermediary organisations and the set up of incentives for venture capital funds and of grant schemes for special categories of entrepreneurs (e g. the youth and women's entrepreneurship).
helping the early stage and growth phase of innovative enterprises by venture capital funds and financial instruments, e g. the New Hungary Venture capital Programme (HUF 40.5 billion;
it has promoted the creation of business angel and venture capital funds, which had been virtually absent in the country.
which aims to promote and mobilise the Dutch venture capital market to the benefit of high-tech starters;
and supply of venture capital, seeks to encourage innovation and entrepreneurship, and contributes to facilitating technology transfer.
while the supply side comprises venture capital companies. FINCRESCE, also launched in the second half of 2006,
the company was created to help increase the amount of venture capital investment for SMES in the Slovak economy.
and the venture capital market by facilitating loans to risk-capital societies interested in sharing the risk with the firms.
Also, the creation of Regional Venture capital programmes has addressed the problem of lack of risk capital, particularly in more peripheral areas.
-venture capital funding on a competitive basis. Further, by creating new information about the feasibility and commercial potential of technologies held by small innovative firms, SBIR awards aid investors in identifying firms with promising technologies.
which virtually established the thriving Israeli venture capital industry. The lessons from Yozma are being studied closely now as the government plans direct involvement in a new biotechnology venture capital fund,
the first government policy involving direct intervention in the private equity market for innovation since the 1990s.
Established with a budget of USD 100 million in 1993, Yozma made ten investments in USD 20-25 million venture capital funds,
In eight of the ten new venture capital funds both general and limited partners exercised this option,
and to develop co-operation with venture capital funds. RUSNANO RUSNANO was organised by the federal government in 2007,
outreach (scope of university networks co-operation with incubators, alumni networks, access to experienced practitioners, access to venture capital) and evaluation (degree of monitoring and assessment of entrepreneurship activities.
venture capital finance, product life cycles and so on. 4. ENTREPRENEURSHIP SKILLS SMES, ENTREPRENEURSHIP AND INNOVATION OECD 2010 173 And more experiential learning methods should be developed for example drawing on the entrepreneurship skills created in drama,
A similar concentration of R&d by industrial sector has been observed over the last 10 years. 11 According to the Industry Classification Benchmark (ICB) applied in the Scoreboard. 40 The 2013 EU Industrial R&d Scoreboard The ranking
Companies can use the Scoreboard to benchmark their R&d investments and so find where they stand in the EU and in the global industrial R&d landscape.
while the Scoreboard uses the ICB (the International Classification Benchmark). 21 According to latest Eurostat statistics.
Companies are in industry sectors according to the NACE Rev. 222 and the ICB (Industry Classification Benchmark.
and to benchmark, inform and communicate developments in R&d investment patterns. While the Scoreboard is audited based on the annual accounts of companies and therefore looks at trends ex-post,
Frascati Manual, OECD, Paris, 2002, http://www1. oecd. org/publications/e-book/9202081e. PDF 48 ICB Industry Classification Benchmark (see:
as well as providing benchmarks like the price of anarchy ratio. Ideally a single metric should be used
2. 2 Today's Datacenters as the Benchmark for the Cloud Using technology always constitutes a certain risk.
For the security objectives when adopting clouds for hosting critical systems we believe that today's datacenters are the benchmark for new cloud deployments.
it is necessary to set up an appropriate testbed of a distributed web application like RUBIS benchmark 3,
and attracting venture capital for promising projects. 18 iii It is important to note that collecting sensitive information from SMES (i e. information about their innovation projects,
a maturing venture capital scene as well as higher workforce mobility. v Each participating SME's core area of operation was standardized using the Standard Industrial Classification (SIC) system whereby‘Finance,
investment in high-risk spin-offs and venture capital; local firms and universities to work collaboratively; and ensuring the sustainability of Smart Specialisation Strategies beyond the structural funding timeframe.
and seeks to use many of the tools of venture capital funding to promote start-up, growth and risk-taking social ventures.
and support changes in the Estonian economy through foresight projects and venture capital investments. The fund focuses on initiatives with international potential.
payments based on results against benchmarks. This model is somewhat more complex, with more handovers and transaction costs,
These include specialists in technology transfer, venture capital firms, conferences and academic journals, consultancies which specialise in assessing companies'IP
94 Existing support for smaller or innovative companies (grants, seeds, venture capital, loan guarantees) is fragmented and fails to mobilise private sector investment efficiently or consistently. cxxvi Current risk capital markets lack openness and transparency, leading to limited access and sub-optimal decision-making.
Some specific examples of a move beyond narrow economic indicators include the UNDP's Human Development Index (HDI) to benchmark countries based on combined measurement of GDP/capita, health and education.
regional innovation funds, venture capital funds, innovation awards and so on. However, there is currently no equivalent for social innovation.
what foundations can learn from venture capital, Harvard Business Review, Cambridge, MA. lxxxvii Emerson, J, Freundlich, T,
and venture capital with those from tendering and grant giving. Others are combining ethnography, visualisation techniques from product design, userinvolvement ideas from social movements,
some NGOS are learning from venture capital not only how to finance emerging ideas, but also how to kill off ones that aren't advancing fast enough to free up resources.
The Bell-Mason methods from the field of venture capital, for example, provide a rigorous framework for paying attention to the many elements that together make up a credible business plan,
They sometimes have an advantage over venture capital funding in that they can tap investors who want to make social impact their primary incentive rather than financial returns.
or provide a means for providers of money to judge between alternatives. 208) Standard investment appraisal methods there are a wide range of tools in use in banking, venture capital and other fields of investment
This approach reflects the development of biographical methods as qualitative research techniques in the social sciences. 228) Outcome benchmarks,
or any benchmarks to draw on. Instead, assessments need to include some judgement of the broader direction of change in the field as a whole;
They include specialists in technology transfer, venture capital firms, conferences, and academic journals which sit alongside consultants adept at looking at companies'IP,
1 per cent of turnover as a rough benchmark (similar to the proportion of GDP now devoted to government support for technological and scientific research and development).
and fair trade. 458) Social enterprise funds including the new venture capital fund, set up by Triodos Bank,
and adopters of ebusiness in some cases perceived as the worldwide benchmark the situation is entirely different in regions with less developed economies, particularly in Southern Europe.
and e-business practice, benchmark implementation of digital business ecosystems Lack of technological solutions and of interoperability Actions:
support for venture capital, investment forum Stafford Beer, Platform for Change,, John Wiley & Sons Ltd, 1995 23 Stafford Beer, Fanfare for Effective Freedom, Cybernetic Praxis in Government, The 3 rd Richard Goodman Memorial Lecture
firms and government research labs, industrial liaison offices, business support institutions (science parks, business and technology incubators), financial support institutions (public and private venture capital firms
in addition to their traditional function of regulation and control, investment and provision of public venture capital, which is a traditional task for the Industry sphere (e g.
and government in creating a venture capital industry to support new firm formation and growth (Etzkowitz, 2002).
which invented the contemporary format for the venture capital firm, building upon family investment firms with a professional staff.
They worked out a political strategy to make the venture capital firm a viable entity by lobbying to 22 change laws that prevented large financial institutions from investing in risky ventures. o Providing solutions to conflict or crisis situations
and Harvard in scientific instruments from the turn of the century and in the newly-emerging radio industry in the 1920's and invented the venture capital firm to expand
A venture capital approach was taken with a few promising ideas, like computer networking, winnowed from a larger collection (Miller, 1997).
In the past, the venture capital model was created from such an analysis (Etzkowitz, 2002; what form would such analysis take in our days?
There are however clear signals that there would be significant continuing interest from outside Europe from institutions wishing to benchmark themselves against European institutions.
While this provides a unique opportunity to compare and benchmark with over 100 other institutions worldwide,
We also expect that there will be continuing interest from outside Europe from institutions wishing to benchmark themselves against European institutions.
10.1007/978-3-319-04307-4 3, Springer International Publishing Switzerland 2014 47 by Mary Meeker2 and Liang Wu in the annual‘‘Internettrends''report by venture capital
, on the basis of historic or benchmark data; while for the security/risk/and compliance perspective they can be the mapping of users
and benchmarks to track and demonstrate success Adapted from 11 8. 4 Digital Governance Success Factors 153‘‘filter''the adoption of other standards such as,
which, after collecting substantial funding through venture capital operations in the startup phase, went from IPO (Initial public offering:
outlining specific dynamics where possible and seeking benchmarks while at times also observing the limits of a pure analytical approach in an area as complex as highimpact entrepreneurship.
Healthcare-18.1 Figure 4. 2 Entrepreneur Of The Year companies outperform US benchmark. Source: Capital IQ, July 2014, EY.
Heavy investment in human capital, particularly the early team Upfront investment in technology Raise money from venture capital funds, angels, friends and family and where possible reinvest earnings as sources
as well as a strong outreach through captive venture capital arms (while Google's efforts look very promising,
which includes hedge funds, private equity and venture capital firms. She joined the Forum from Empire state Development,
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