and the upper quartile covers the lowest 75 per cent of the data. The difference between the upper and lower quartiles is called the interquartile range.
It represents 50 per cent of the data. Radar Chart A radar chart is a graphical method of displaying multivariate data in the form of a two-dimensional chart of quantitative variables represented on axes starting from the same point.
In the following example the data of the benchmarked cluster is indicated by a green line
and compared to the data of the clusters in its specific technology area (orange line) and all technology areas (blue line).
Box 1: Explanation of figures used to present the results of the benchmarking Box 1:
The overview includes data on The age of cluster management organizations, The size of clusters, The composition of clusters,
550 600 650 700 750 800 18 1. 2. 3 COMPOSITION OF THE CLUSTERS Figure 4 displays the typical composition of a cluster for each country.
Modern ways of communication, particularly structured by the internet, have made communication much easier, but nothing beats faceto-face interaction when it comes to the development and implementation of projects,
Figure 5 displays for each country the percentage of cluster members located within a distance of 150 kilometers from the office of the cluster management organization.
In contrast to industry-driven clusters the financial outlook in terms of budget security of R&d-driven clusters is better (Figure 7). 4 In the context of the benchmarking cluster managers were asked to classify their clusters
-operations Share of clusters with high media coverage Effect on business activities of SME Effect on R&d activities of SME Effect on international activities of SME Median value R&d
and media coverage (see Figure 10). Apparently, larger and matured clusters provide a much better environment for results and impacts as an effect of activities of a cluster management organization.
Relevance of size and age for the effect on cluster participants Share of clusters having initiated many successful co-operations Share of clusters with high media coverage Effect on R&d
displays structural characteristics of clusters from six different technology fields. The different structural characteristics reflect the characteristics of their industry sectors or technology fields.
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.
Communication of the Cluster Organisation Cluster organisation's web presence ACHIEVEMENTS, RECOGNITION Recognition of the Cluster in Publications, Press, Media Success Stories Customer and Cluster Participants'Satisfaction
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
Figure 18 displays the causal relationship of structural factors and agenda setters, services and effects:
e g. on IPR INTERNAL NETWORKING AMONG CLUSTER MEMBERS Regular meetings, get-togethers, thematic events/workshops for cluster members Internal newsletters, databases etc.
AND NETWORKING WITH EXTERNAL PARTNERS/PROMOTION OF THE CLUSTER LOCATION Information material, website, press releases, publications Presentation of the cluster and its members on trade fairs or conferences Events/workshops to present the cluster Matchmaking/partnering events INTERNATIONALIZATION OF THE CLUSTER Presentation of 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:
Furthermore, the data base of 2012 has been extended by more cluster programs. They have been benchmarked with the same criteria as the programs analyzed in 2011.
if these countries have different core areas in their programs. 2. 1 COMPARATIVE PORTFOLIO The cluster program benchmarking covered 34 cluster programs from 24 countries,
Overview of cluster programs COUNTRY NAME OF PROGRAM INTERNET AUSTRIA Cluster Program Lower Austria www. ecoplus. at/en/ecoplus/cluster BELGIUM Competence Centres
-Light Structures Public website not yet available Cooperative innovation network integrated project http://www. iwt. be/subsidies/vis-trajecten CZECH REPUBLIC Cooperation Clusters www
strategic objectives in terms of numbers of clusters that are funded, restrictions on thematic areas and coverage of the most important business sectors.
and consultancy services) that goes beyond internet platforms and regular meetings between program owners and cluster managers.
after completion of joint 3 years) 100%grant funding for core programme, but extra income from public and private sources is encouraged (ranges from 0 to 100%currently).
For more information about the Spitzencluster-Wettbewerb (Leading-edge cluster competition) please see www. bmbf. de/en/10726. php. 16 The majority of the programs that were benchmarked in this project are programs that were initiated
With a cluster support program at the core, additional individual R&d/innovation, business development and infrastructure programs can address the specific needs of the different actors within a cluster.
to internationalization activities of clusters typically follow a dedicated strategic international outlook in terms of their program objectives and instruments;
However, yet the actual cross-fertilization efforts in the different programs are not based on detailed strategic parameters informed for example through a technological outlook of the program owners.
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
and other types of evaluations as those databases do not contain all data in detail that is usually required for the analysis or evaluation of a certain program.
22 22 Please be aware that this figure displays the budget for individual cluster programs only.
With a limited number of cluster support programs that support the establishment of cluster management organizations at the core of an overall cluster development strategy additional individual R&d/innovation,
Corresponding instruments should be developed by program owners to provide needbased support for cluster managements. 80 THE AUTHORS THOMAS LÄMMER-GAMP is Director of the European Secretariat for Cluster analysis (ESCA) at VDI/VDE
Email: tlg@vdivde-it. de DR. GERD MEIER ZU KÖCKER is head of the Institute for Innovation and Technology (iit Berlin) and holds a Phd in mechanical engineering.
Email: mzk@vdivde-it. de DR. THOMAS ALSLEV CHRISTENSEN has been working as Head of the Department for Innovation Policy at the Danish Ministry for Science, Technology and Innovation since 2005.
Email: tac@fi. dk LYSANN MÜLLER has been working as a consultant at the international technology cooperation and cluster policy department of VDI/VDE Innovation+Technik Gmbh in Berlin, Germany since 2005.
Email: lysann. mueller@vdivde-it. de
Luminita Nicolescu, Ciprian Nicolescu ISSN 2071-789x RECENT ISSUES IN ECONOMIC DEVELOPMENT Economics & Sociology, Vol. 5, No 2a, 2012 71 Luminita Nicolescu
luminicolescu@yahoo. com Ciprian Nicolescu Academy of Economic Studies Bucharest, 6, Piata Romana, 1st district, 010374, Romania+4. 021.319.19.00 E-mail:
types of innovative activities, investments in innovations, the intensity of renewing the existing products, the use of IT, the use of the Internet, etc.
As part of the innovative process, the use of the Internet is considered increasingly important for SMES by influencing aspects such as competitiveness,
the level of investment in innovative activities and about specific innovative aspects such as renewing products and using the internet and the intranet in the activities.
and marketing approaches, modernizing the information system and applying new human resource methods. The implementation of these forms of innovations also require changes at the organizational level, technical changes,
approaches 17.95%20.89%22.74%24.70%15.92%24.02%14.01%15.07%Information system 9. 68%13.74%10.84%17.06%13.77%15.92%10.24%10.29%Human resources N
Figure 3. The dynamics of the renewing intensity in Romanian SMES in 2003/2004 2010/2011 Another aspect associated with innovation is the integration of information technology.
Starting a couple of decades ago, information technology plays a critical role both in large and in small businesses.
The impact of using information technology can be strong in SMES from all fields of activity.
The Romanian SMES included in studied samples indicated the main forms of information technology they use.
and Figure 4. The most frequently used form of IT mentioned by Romanian SMES is the utilisation of the computer,
The exploitation of Internet and of e-mail are the next most frequently used forms of IT in Romanian SMES,
In the last two years, there was a noticeable increase in the percentage of SMES that created their own Internet sites,
This comes as an argument for previously encountered findings that state that internet developments have been found to be critical for SMES to build successful interactions with business customers (Tseng and Johnsen, 2011, p. 573.
, the use of the intranet diminished in Romanian SMES in the last two years, possibly due to a decrease in the number of large SMES,
where the use of the intranet is needed at larger extents. However, even though the exploitation of information technologies is seen as being part of the process of innovation,
this is also seen in the literature as being used only moderately by SMES (Baregheh, Rowley, Sambrock and Davies,
2009/2010 2010/2011 Computers 81.90%82.08%82.51%82.25%83.26%81.55%77.09%Internet 64.16%70.14%66.64%72.93%81.44%78.59%73.22
%E-mail 56.51%62.86%61.54%61.07%72.52%74.81%69.93%Own site 27.97%24.12%23.77%11.54%16.20%33.33%33.26%Trade on line 7
. 51%7. 89%9 59%6. 77%11.01%11.78%14.21%Intranet N/A 12.40%9. 93%21.50%36.56%15.49%5. 69
Figure 4. Dynamics of the use of IT in Romanian SMES in 2004/2005 2010/2011 Information technology is used in Romanian SMES mainly for communication purposes,
that SMES are exploiting information technology in a limited or, at best moderate way to improve product development processes.
the web-based Luminita Nicolescu, Ciprian Nicolescu ISSN 2071-789x RECENT ISSUES IN ECONOMIC DEVELOPMENT Economics & Sociology, Vol. 5, No 2a, 2012 81
including the use of inter-organizational systems (particularly the Internet), due to positive experiences of SMES with web based electronic commerce on the one hand and to the continued desire of larger firms to achieve full compliance with their inter-organizational systems on the other hand (Hughes, Golden and Powell, 2003).
Similarly, Ngugi, Johnsen and Erdelyi (2010) illustrated how the participation of SMES from the organic food and drink industry from UK in Internet based information systems with large supermarkets lead to the creation of inter-organizational systems
that contribute to innovative processes in SMES. Detailed analysis of the purposes for which SMES used the Internet and Intranet as IT mediums,
shows that there was a change of priorities in the utilization of these means of communication.
Table 6. The use of Internet/Intranet in SMES from Romania in 2004/2005 2010/2011 The purposes of using the Internet/Intranet 2004/2005 2005/2006 2006/2007
lack of top management vision, lack of computer expertise, poor planning, inability to identify the strategic benefit of using IT, etc.
The results of their study are similar to the results of the present study in the sense that Romanian SMES tend to use the Internet in limited ways, such as finding new suppliers and emailing prospective customers.
of Internet/Intranet in Romanian SMES in 2004/2005 2010/2011 Conclusion This study provided a general image over the changes that took place in Romanian SMES in relationship with innovative activities conducted over a period
buying/selling on-line) to the already existing ones (Internet, email). Luminita Nicolescu, Ciprian Nicolescu ISSN 2071-789x RECENT ISSUES IN ECONOMIC DEVELOPMENT Economics & Sociology, Vol. 5, No 2a, 2012 83 Based on this general
and we refer here to the use of internet for different commercial and informative purposes.
restricting the scope of the analysis. Another limitation refers to the predominantly quantitative character of the data collected,
Chao, C a. and Chandra, A. 2012), Impact of owner's knowledge of information technology (IT) on strategic alignment and IT adoption in US small firms, Journal of Small Business and Enterprise Development, vol
International monetary fund IMF (2012) World Economic Outlook: Growth Resuming, Dangers Remain, IMF April 2012, Washington. Kumar, K. Boesso, G.,Favotto, F. and Menini, A. 2012), Strategic orientation, innovation patterns and performances of SMES and large companies, Journal of Small Business and Enterprise
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,
Tseng, K. M. K. and Johnsen, R. E. 2011), Internationaliation and the internet in UK manufacturing SMES, Journal of Small Business and Enterprise Development, vol. 18
In short, our ambition is to put innovation at the core of our policies and strategies for the future,
which is available on our website www. entemp. ie. Innovation in Ireland 20083 The Government recognises the value that investment in research,
Upgrade existing research infrastructure and develop new facilities; Develop sustainable career paths for researchers; Enhance the mobility of researchers;
Innovation in Ireland Summary 2008building knowledge partnershipsour development agencies are attuned fully to keeping innovation at the core of their strategies and policies.
such as the health/biotechnology, food, software, polymer and plastics sectors. Innovation through collaboration Networks, Clusters and Gateways Innovation in Ireland 2008 18 Clusters Clusters are geographical concentrations of interconnected businesses, suppliers and knowledge providers in a particular field.
In Ireland, clusters are emerging in sectors such as software, pharmaceuticals and medical devices, including some with the potential for significant cross-border activity including in the health/biotechnology, polymer and plastics sectors.
The Global Entrepreneurship Monitor ranks Ireland second in the EU and fifth among OECD countries for entrepreneurial activity.
and will publish progress on our website. Ireland's overall innovation performance will continue to be measured by the National Competitiveness Council in its annual Report to the Government
2009). 2 The Global Entrepreneurship Monitor survey in 53 countries suggests that only 6. 5%of new entrepreneurs are highexpectation entrepreneurs,
New technologies such as computer-numerically-controlled production tools have made it possible for small firms in many industries to produce small batches as efficiently as large firms once produced large batches.
and data is not commonly available for non-technological innovation as a proportion of firm employment or turnover.
or contestability of their markets, may force incumbents to upgrade. Empirical evidence across 24 countries confirms the relationship between productivity growth
representing revolutions in technologies and markets (e g. the assembly line, the integrated circuit, the personal computer). Incremental innovations are the opposite:
The ordinary SME has a more important role in this mode, making incremental innovations that upgrade traditional sectors (Asheim, 2009.
Chapter 2 provides data on SME innovation performance and constraints across 40 economies and examines the major and new policies that have been introduced.
Definitions Supporting Frameworks for Data Collection, OECD Statistics Working papers, 2008/1, OECD Publishing, Paris, doi: 10.1787/243164686763.1.
Autio, E. 2007) Global Entrepreneurship Monitor 2007 Global Report on High-Growth Entrepreneurship, Babson college, Massachusetts.
New Evidence from Micro Data, Ch. 1, pp. 15-82, University of chicago Press, Chicago. Baumol, W. 2002), The Free-Market Innovation Machine:
Volume II Proceedings of the Brasilia Conference, OECD, Paris. OECD (2008), Open Innovation in Global networks, OECD:
Possibilities for Prosperity, Basic books, New york. Potter, J. 2005), Local Innovation Systems and SME Innovation Policy, in OECD SME and Entrepreneurship Outlook, OECD, Paris, pp
Open innovation, open source and freely available knowledge 15 Box 4: Case studies 18 Box 5: Does the rise of open innovation mean a more‘cut
whether this was an effect of Asian research sites and talent being more competitive or simply where the new customers were.
UK Public policy and open innovation Perhaps the most fundamental strategic decisions facing any company concern its core business model:
Hamel, G. and Prahalad, C. K. 1990)‘ The Core Competence of the Corporation',Harvard Business Review, Vol 68, No.
and when new ideas developed within the firm do not fit with the core business they can be sold
nuclear reactors, mainframe computers Largely internal ideas Low labour mobility Little venture capital activity Few, weak start-ups Universities unimportant Examples of industries:
This distinguishes these activities from, for example,‘open source'software (Android, Linux, for example), and‘platforms'on which others provide products or services (itunes, for example).
Open innovation, open source and freely available knowledge There also appears to be considerable confusion between
and the idea of open source. Open source reflects the practice of open and free sharing of technological information.
It is associated typically with software development activities where the source code is released allowing others to build on it.
open source can be a manifestation of open innovation IBM has used open source approaches to drive standardisation across its customer base which makes it less costly for the firm to interact with its customers
and allows it to sell more advanced bolt-on services which improve the experience of using the open source software. 4 However,
the terms open innovation and open source are used often in the literature as equivalent concepts. This is not appropriate;
what would be recognised as an open source model. Equally, open innovation does not necessarily mean being fully open
Amazon has increased the range of activities using its core IT capability by opening it up to a range of other companies.
First, Amazon allowed other firms to sell their goods through their website, providing an extra revenue stream for Amazon.
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.
Take Apple and Google often held up as the paradigmatic cases of open vs. closed strategies. 4 The basic analysis runs that Apple is closed'keeping tight control of Apple products (not allowing modifications, for example;
filtering what software can be loaded onto Apple products; and withholding access to source code of Apple software)
while Google is‘open'allowing other developers and organisations to develop their own innovations on its software. 5
But this analysis obscures the subtleties of their respective open innovation strategies most clearly, Google's strategy is for its Android operating system to be part of an‘open'element of its value chain (something
which provides it with excellent access to end consumers), while it retains close control of other elements of the chain,
such as its search algorithms, and advertising data. 6 And as we would expect of a dynamic,
innovation value chain-based open innovation strategy as its ability to capture value at different points in the innovation value chain shifts,
it makes appropriate alterations to the degree of openness it deploys. 7 Both organisations are simply considering very strategically what knowledge to hold onto,
Atlantic Books 5 http://googleblog. blogspot. com/2009/12/meaning-of-open. html 6 http://techcrunch. com/2011/03/25/search-googles-castle
How to create the right new products, the right way',Outlook, No. 3, Accenture, http://www. accenture. com/Sitecollectiondocuments/PDF/Outlookpdf Innovation 02. pdf 20 Missing an open goal?
The rise of a well educated workforces knowledge not confined to an elite core within major corporations,
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,
OECD trade data does confirm that the past decade saw a dramatic increase in the scale of international trades in knowledge services;
healthcare, computers, software, communications, banking, insurance and consumer packaged goods. Although it is circumstantial evidence, the‘buzz'surrounding open innovation also provides an indication of its increasing importance.
or initiatives such as Microsoft's Bizspark community of start-up customers) may help to build trust between organisations
19 20 The announced sale of Autonomy to Hewlett-packard for $10bn in August 2011 has reignited the debate over the robustness of British enterprise.
In the wake of the sale of Bourneville Cadbury to Kraft last year the Business Secretary directed the City's Takeover Panel to launch a consultation,
In his August 2011 Mactaggart lecture, Google Chairman Eric Schmidt takes this line, suggesting Britain's failings are at the level of national policy:‘
NESTA Chief executive Geoff Mulgan also emphasises the importance of encouraging a longer-term outlook from both company founders
Finland, http://www. openinnovation. eu/download/OIPAFFINALREPORT. pdf 34 Missing an open goal? UK Public policy and open innovation Focusing on policies which all encourage a blanket‘openness'not only ignores the subtlety of how organisations pursue open innovation management strategies,
US data seems to suggest that SMES seem to have been increasing their R&d spending in past decades;
Traditionally this is interpreted in physical terms roads, railways, phone lines and the architecture of high speed internet.
At its core the centre's mission is:‘‘To make the UK a global open innovation hub,
: 213-221 Hamel, G. and Prahalad, C. K. 1990)‘ The Core Competence of the Corporation',Harvard Business Review, Vol 68, No.
How to create the right new products, the right way',Outlook, No. 3, Accenture, http://www. accenture. com/Sitecollectiondocuments/PDF/Outlookpdf innovation 02. pdf Sissons, A. 2011) Britain's Quiet Success Story:
The framework was informed by international best practice regarding the core principles and methodologies required. The evaluations focus on the appropriateness
Figures compiled from Entrepreneurship in Ireland 2010 Global Entrepreneurship Monitor (GEM) Report and GEM Report 2011;*
*Data was compiled not for 2009 Ireland is not alone in experiencing this decline in entrepreneurial activity.
allowing for data availability and any necessary time-lags. The portfolio approach adopted proved valuable as it allowed the analysis to focus not just on individual programmes,
According to EVCA data, all Irish VC firms have invested circa €963 million in Irish firms since 200019.
IVCA data included investments by angel and investors and corporation that are considered not to be VC firms 23 PWC review 24 For example,
data required for evaluation purposes is not currently being collected or collated, and that this needs to be addressed.
and Collect and collate data required for programme evaluation, and in particular facilitate the delineation of activities/supports directed toward the stimulation of entrepreneurship and start-ups.
Appropriate metrics and approaches to data collection, collation and analysis should be identified at the outset relating to programme inputs, activities/processes, outputs and outcomes.
FORFÁS EVALUATION OF ENTERPRISE SUPPORTS FOR START-UPS & ENTREPRENEURSHIP 19 Recommendation Develop a national information portal to provide easily accessible and relevant information for individuals wishing to start a new business, building upon existing websites.
In the immediate term State agency and local authority websites should incorporate a standard roadmap that gives a clear pathway to
Global Entrepreneurship Monitor 2010. FORFÁS EVALUATION OF ENTERPRISE SUPPORTS FOR START-UPS & ENTREPRENEURSHIP 23 Table 1. 1:
Entrepreneurship Monitor, 2004&2010. Key Indicators Database at:<<http://www. gemconsortium. org/key-indicators>Accessed 04 may 2012.24 Chart 1. Source:
G Chart 1. Source:.1: Percenta GEM, 2004,20. 2: Percenta Gem, 2004, age of Early 010 age of New F 2010 Stage Entre Firm Entrepepreneurs pe preneurs perer Head of A r Head
The core role of the team involves assessing enquiries, project building and getting a company past the crucial milestone of a first investment43.
In terms of the sectoral categories of the recipient companies, the majority of firms fall into the Software, Biopharma and Engineering categories,
(and forms the core part of the Enterprise Ireland Policy framework set out by DETE in 1998).
Using data from The Annual Business Survey of Economic Impact (ABSEI), comparator groups from the wider population of Enterprise Ireland supported firms have been constructed, controlling for age of firm, numbers employed, turnover and sector44:
For survival rates, CRO registration data for 2004-2006 provides a reference group for companies'trading status up to early 2011.
using the rich data collected annually from agency supported firms. A previous review of HPSU supports was carried out by Enterprise Ireland in 2010.
Increasing export potential of entrepreneurs is at the core of both of these reports. The HPSU programme assists entrepreneurs in gaining competitive advantage in international markets to generate value and jobs in the domestic market.
A database of 150 private investors, serial investors and international investors has been developed who regularly receive profiles of client companies in sectors that match their knowledge domain.
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,
I grade of In apply taken in set at 60 rural an The data generati was 3. 98 domesti 51 Data f 52 Costs uses th NPV of attache Book
HPSU inancial retu he effects of Cost-Benefit n ABSEI data d where app e HPSU cohor t on the wid on Irish-sour payments fo
Ho tically overest or the deadwe 3 edition) rt from the indups, 2004-2 20 years has met dividual Source data nt companies ear period, w ls,
The G opment agenc 64. 9m ble data e 2005 data was 2006 as sourced he ly) were salary funds is weight is Us in HPSUS it r of s a rnative that the be Green
and Recipients'feedback on the importance of Enterprisestart in attaining HPSU status. A limitation in terms of data collected was identified during the course of the evaluation.
Notices in local newspapers and radio stations are posted, with a view to increasing awareness of the sessions and of start-up supports in general. 4. 8 Impacts & Outcomes In 2009, out of 270 participants:
A limitation in terms of data collected was identified during the course of the evaluation. Entrepreneurs may be registered formally on the internal monitoring system,
and whether it is value for money, due in part to a lack of data,
This fits with the core objective of Propel which is to increase the number of
At the end of Phase I participants present their business proposition to an evaluation panel who determine the most appropriate candidates to progress to the next phase of the programme.
The selection panel is made up of strategic business development experts from Enterprise Ireland and PA Consulting.
I involv selected at by a panel weurship 71 gramme; enumber ets and ved 24 the end who 72 Phase II of the programme involved participants attending training and workshops, getting incubation space, qualifying for financial support and having access
Increase It is too Howeve participa data ind noted th Sales: 41 participa twelve m Exports:
in term e data on bot of sales, exp cant impact o incorporate dy experienc er 54 per ce enced some e ed to realise orts to increa perienced
Projecte dents Prope Grant Conne ed numbers ics the core stra by utilising t o strengthen er of the asp ve, such as th mme and the rs.
Enterprise Ireland data and Forfás analysis Effectiveness Effectiveness covers the extent to which the outputs have led to the desired outcomes.
The methodology for the evaluation is predominantly secondary research involving a literature review, a review of an early stage internal report on the programme and data analysis. 7. 2 Programme Background
In addition to traditional media, a particular feature of the initiative is the central role of social media in promoting the initiative
In this context, Enterprise Ireland manages a Linkedin and Facebook page for Ideagen to facilitate ongoing networking
and information sharing between participants and to promote the initiative to all stakeholders. The Pilot phase was attended by 144 individuals.
Data on the progression of participants from the pilot phase to become HPSU/Pre-HPSU is not available.
and the Ideagen events. 71 Data on the progression of participants from the pilot phase to become HPSU/Pre-HPSUS is not available 90 Any displacement effect of Ideagen is small.
The methodology for the evaluation is predominantly secondary research involving data analysis and literature review. This approach has been supplemented by primary research involving consultations with representatives of the VC sector, of Enterprise Ireland as the programme provider and other relevant individuals in the area of enterprise development.
The data on the Enterprise Ireland partner funds is provided in terms of the two separate Schemes as it is not generally possible
EU level data shows that seed capital funds typically experience greater challenges than VC funds in raising private capital
and over US$3. 1 trillion in revenue in the United states representing 11 per cent of private sector employment and 21 per cent of GDP (2010 data).
The evidence available on the outlook for new, early stage, high growth companies suggested that there would continue to be a demand for VC investment from these enterprises at a rate similar or greater than that experienced over the preceding five years;
domestic and international venture capitalists) to secure longer-term finance to support the scaling of software companies.
They provide data on the partner funds themselves and on the investments they make in terms of the size of individual investments in companies, the company's stage of development and
A note of caution relates to the challenges faced in providing comprehensive and comparative data for seed and VC funding.
The analysis below is based on data from the Enterprise Ireland Seed & Venture capital Programme Annual Reports and data provided from the European Venture capital Association (EVCA).
The EVCA compiles data provided to it by national VC associations. The irish Venture capital Association (IVCA) is the relevant body in Ireland.
Companies and entrepreneurs benefit from an expanded pool of funds available for export oriented high technology start-ups
and scaling companies Data from the EVCA shows that Irish VC firms have invested circa €963 million89 in Irish firms since 2000.
Private funds are attracted into The irish market Data from the IVCA states that there has been €3 billon of investment in Irish SMES since 200091.
The IVCA data is broad in scope and includes investments by angel investors and corporations that are considered not to be VC firms.
However, it should be noted that the IVCA data is quite broad in scope and includes investments by angel investors
They also have engaged in high levels of follow on funding. 93 Specific data on fund management
The OECD data shows that VC investment in Ireland still only accounts for a small proportion of GDP
Germany France UK Canada USA 2009 2008 2005 2000-2003 108 Data on the numbers of investments and the numbers of companies invested in by Irish Seed
Secondly, data from the IVCA indicates that, aside from the EI partner funds, further private VC investment has been attracted into Irish based SMES.
Analysis of the sectoral breakdown of investments by number and volume of investment under the two Schemes clearly demonstrate that the Enterprise Ireland partner funds are investing in those high technology sectors where Ireland has demonstrated or emerging strengths, particularly the Lifesciences, software
Secondly, data from the IVCA states that there has been €3 billon of venture, angel and related investment in Irish SMES since 200099.
the IVCA data is broad in scope and includes investments by angel investors and corporations that are considered not to be VC firms.
Data on this is not available due to commercial and confidentiality considerations102. Over the medium to longer term, there are also real and positive impacts associated with the programme in terms of employment,
Based on a range of data sources, it is estimated that each year on average a typical CEB: Handles some 800 to 1, 000 queries;
Using 2009 data this averages out as follows per individual CEB: Average per CEB €'000 Current costs 383 Measure One Grants 269 Measure Two Grants 304 Total 956 The CEBS operate within national policy
Typically, the course is provided by external trainers who are procured via a panel which is established twice yearly on foot of open competition.
Data for 2010 and 2011, where available has also been used. The methodology follows the template for entrepreneurship and start-up programmes, developed in the Forfás Evaluation Framework118.
The methodology included analysis of the data contained in the management information systems operated by the CEBS,
existing reports and data provided by the Central Co-ordination Unit in Enterprise Ireland, case studies of 7 CEBS119 including office visits and analysis of locally available data, a survey of former SYOB participants,
a client focus group, specific enquiries to CEBS, and an international literature review. The CCU has facilitated greatly this evaluation by providing aggregate data on the CEBS activities.
As a large part of the period under review predated the CCU established in 2007, there were considerable data challenges associated with this evaluation. 117 Report of the Enterprise Strategy Group, Ahead of the Curve, 2004 118 Framework for Evaluation of Enterprise Supports, 2011,
Forfás 119 The case studies included a representative sample of CEBS, taking into account location, urban/rural split and size.
noting that the data currently being collected is not done for the purposes of evaluation in that the data appropriate to monitoring the impact of the CEBS activities is not generally available.
the management information systems now in place have the capacity to provide aggregate information to facilitate evaluation across the network of CEBS.
together with an allocation of share of the current costs of the CEBS. 120 The data gathered by the CEBS
Analysis of CCU data The Central Co-ordination Unit collects data on the number of participants on training courses,
Based on the data from the Central Coordination Unit and the results of a complementary survey122, it has been estimated that 52 per cent of attendees at training courses run by CEBS were from new start ups.
Analysis of CCU data and CEB survey: includes indirect costs Over the period 2008-2010 the total expenditure by CEBS on start-up supports is estimated at between €18. 8m and €17m per annum.
The course is provided typically by external trainers who are procured via a panel which is established twice yearly on foot of open competition.
, Taxation, Website development, Time Management & Life Work Balance, Personal Effectiveness and Leadership Management 130 half-day involvement covering basic skills or information
CEBS have a panel of skilled and experienced people from a range of backgrounds who make their expertise available to the Mentor Programme on a voluntary basis. The typical CEB arranges for some 110 mentoring assignments annually
the available data do not enable this to be encapsulated easily. There are two reasons for this:
Derived from CCU data Over the period 2004 to 2010 as a whole, the vast bulk of the grants made were in respect of capital or employment projects.
Derived from CCU data 134 Note: The data in Table 9. 11 above includes grants from both the European Regional Development Fund and the European Globalisation Fund.
The new CEB Financial Instruments of Feasibility/Innovation, Priming and Business Expansion came into being in November 2009
so that is the reason for there being no data entries before that time. There is evidence that in 2010 the average grant size fell
Derived from CCU Data Start Your Own Business Training A total of 18,899 individuals participated in SYOB soft support courses from 2005-2010 (data is unavailable for 2004.
Derived from CCU data The analysis conducted for this evaluation indicates that 80 per cent of financial supports are directed to start-up enterprises,
Precise data are not available to measure these attributes however we have looked to job creation estimates for all grant aided firms as an indicator of the scale of impacts.
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
Derived from CCU data These metrics indicate that the CEBS have become more efficient over more recent years (Table 9. 24.
The survey data indicates a high start-up rate but unfortunately, the response from course participants from former years is too low to enable longevity to be assessed.
Precise data are not available to measure these attributes. However, the analysis indicates that over the seven year period under review approximately 5, 400 start-up companies received financial supports.
Analysis of the CEB activities for policy-making purposes requires data which are not currently being collected
Existing databases in the CEBS should be used to track the experience of grant recipients and course attendees so as to facilitate measurement of the impact of CEB activities.
and Collect and collate data required for programme evaluation, and in particular facilitate the delineation of activities/supports directed toward the stimulation of entrepreneurship and start-ups.
The consultations comprised a mixture of one to one meetings, group discussions, survey and telephone/email research contact.
and circulated by email in order to obtain feedback from participants on Propel Phase One and Phase Two.
Non respondents were followed up by telephone which resulted in some participants completing the questionnaire over the phone.
Phase One Participants: All 19 participants were emailed and one bounce back email was received. Of those successfully contacted, 10 completed the questionnaire.
Therefore a 56 per cent response rate was achieved. Phase Two Participants: All 25 participants were contacted. 1 participant refused to participate in the survey
There were some weaknesses identified through the survey involving website information, follow up networking and organisational issues surrounding some of the workshops.
Outlook and Strategic Plan to 2015 Forfás July 2013 Forfás Annual Report 2012 Forfás July 2013 156 Research Prioritisation:
2013 Global Entrepreneurship Monitor (GEM) 2012 Global Entrepreneurship Monitor July 2013 Annual Employment Survey 2012 Forfás July 2013 Ireland's Competitiveness
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