work of †a scientist of genius who can propose new combining, go against the tide,
-work is still very fuzzy. However, we can distinguish at least following two approaches •The transaction cost perspective identifies networks
30.5%of firms with a number of employees ranging from 20 to 49, were considered as innovators and 93
%of those with more than 2000 employees were engaged in this process (SESSI, 1996. These results do not
-pany is based on the quality of their employees and on their commitments to networks of innovators.
more than 500 employees benefited from the financial aid 740 F. Bougrain, B. Haudeville/Research Policy 31 (2002) 735†747
Size and status of firms Employees Regional group Subsidiary of group Totala Sectors 1†9 10†19 20†49 50†99 100†250 251†499
1†9 employees â'0. 9152â (â'1. 938) â'1. 2468â â (â'2. 536) â'1. 1226â â (â'2. 936
10†19 employees 0. 240 (0. 487) 0. 216 (0. 415) †SME (20†49 employees) 0. 1231 (0. 296) â'0. 2114 (â'0. 485) â€
SME (50†99 employees) 0. 9406â (2. 002) 0. 7647 (1. 551) 0. 8808â (2. 304
SME (100†250 employees) â'0. 1773 (â'0. 395) â'0. 3186 (â'0. 667) â€
SME (251†499 employees) â'0. 4788 (â'0. 763) â'0. 9574 (â'1. 473) â'0. 7976 (â
'1. 388 Regional group 0. 9187 (1. 457) 0. 9871 (1. 484) 1. 1564â (2. 090
only for very small enterprises (less than 10 employees. For extensive results on the relation between firm size and innovation
•the number of executives employed by the firm •and the existence of a design office
to take into account the percentage of executives to employees for SMES with less than 10 employ -ees.
We thought that these figures would not have been significant. Consequently, we just relied on
Size (number of employees) â'0. 00018 (0. 861 Executives(%)â'1. 3198 (â'0. 431
Design office 0. 045+(0. 088 n 79 83 91 Log likelihood â'53.279 â'185.3175 â'186.8962
Influence of executives presence on success rate of cooperative projectsa Project result %of executives to employees
Success Success rate Failures Failure rate Number of projects From 0 to 5 9 42.9 12 57.1 21
a According to the Ï 2-test, there is no direct link between the result of a project and the percentages of executives to employees
5. 3. The contribution of executives to successful collaborative relationships The presence of executives indicates that the en
-trepreneurial manager delegates part of his power to its subordinates. So, he can spend more time to run effec
-ence of executives should increase the success rate of innovation. Our empirical results invalidate what we
of executives to employees. Following three elements may explain why collaborative relationships are not more successful when the percentage of executives to
employees is larger •This category is heterogeneous. Research and pro -duction managers are often at the heart of the
innovation process. Similarly, sales managers will enhance the firm†s ability to respond to prospects
administrative executives do not play a key role during the innovative activity. In other words, the percentage of executives is only quantitative.
It does not give any information on the organisational efficiency of the firms (Perrin, 1991
-ucation influences the receptiveness of executives to external sources and their approach to innova -tion problems to a considerable extent (Gibbons
When executives with a high level of education are confronted to a complex problem they recognise if the firm can rely on its
Conversely, the staff with a lower level of education relies more on their own knowledge •In firms, innovative competencies do not depend
exclusively on executive staff. Technicians are also crucial actors of product/process innovations in SMES.
as well as executives 5. 4. The contribution of design office to successful collaborative relationships The activity of a design office is not as formal as in
employees working there are more able to understand information flowing through industrial networks These results are in conformity with the assertion of
manpower Indeed, our results show that a design office facili -tates the use of extensive information networks.
251 and 499 employees were all independent The other categories concern large enterprises and subsidiaries.
than 500 employees whose headquarters is located in the Centre region and subsidiaries of company whose
group employment exceeds 500 employees and is lo -cated outside the Centre region By holding concurrently two criteria, the size of the
The contribution of executives to successful collaborative relationships The contribution of design office to successful collaborative relationships
According to the Small Business Administration (2008), small firms in the US represent 99.7 percent of all employer firms and
employ over half of all private sector employees. They make up 97.3 percent of all exports
per employee than large firms. These small businesses make up approximately 29.6 million businesses with 6 million of these
with employees. Thus, it can be seen that small business and SMES are a critical factor in the economic fabric of nations and
This open model has been gaining support due to several factors, such as worker mobility, short product life cycles
products, materials or labour, is owned independently and operated, and is dominant in its field on a national basis. The
Generally however, â€oesmall†is considered to be fewer than 100 employees, and medium-sized is under 500 employees (Headd
& Saade, 2008 A. Innovation Early research has examined the important role of innovation within entrepreneurship (Schumpeter, 1947.
Frequently used measures of performance criteria include profitability, ROI, number of employees, revenues. Each measure has strengths and weaknesses (Brush and Wanderwerf, 1992;
All businesses are under 50 employees, with a majority in both samples of fewer than 10 employees.
Most businesses are relatively young. Only 9 of them are over 20 years old in the
TABLE 2 FIRM CHARACTERISTICS †SIZE (NUMBER OF EMPLOYEES Characteristic Range Australian Businesses %n=201
Number of Employees Less than 10 From 10 to 20 From 21 to 50 More than 50
owners/managers, SME employees and the economies in which the SME operates. High levels of innovation can facilitate firm
which in turn can yield employment gains and contribute to the general economic health of a state, region or nation 12.
important role in innovation and provide alternative employment opportunities for many subsets of the adult population 2
International Differences in Work Related Values. Beverly hills, CA: Sage 8 Lumpkin, G. T, . & Dess, G g. 1996).
percentage of entrepreneurs and staff trained...23 Table 13: with whom do you discuss innovation?..
trends in the international division of labour towards task specialization within clusters make local innovation systemsless likely to be effective as procurement
which is assimilated subsequently by other staff through communication and training. Both are easier when the knowledge gap within the sector is small
number of trusted actors such as financiers, business consultants and marketing associations Flatten et al 2011 Absorptive capacity is determined by entrepreneurship and firm-level attributes.
organizational structures and routines, such as participation in decision making, job rotation and interdepartmental communication and cooperation (Justin et al 2005, Reece 2007, Piralis and
size (measured in turn-over and number of staff, using the definition of the Government of
comprising 27 firms, 3 experts, 11 major players of the local innovation system and one global buyer.
needed meetings were conducted with more than 1 staff of the organization. Meetings lasted about two hours and were followed up by additional questions by phone when needed
handicrafts), 2 staff of a financial institute and 2 university staff were interviewed. The information was counterchecked with information from active members of associations and
starting a gradual shift towards export promotion. From 1983 to 2002 export grew by 27%a year (Wie et al 2006
Exporters have the largest size in terms of turn over, staff numbers and total staff (in-house and subcontracted;
see table 3). 82%all exporters are owned locally. The entrepreneur is typically a middle aged and highly educated male, with considerable international
They work from home, with casual workers generally sitting outside on small chairs or on the ground.
or as apprentices at subcontractors or exporters Those who combine export and subcontracting have characteristics in between exporters and
Number of workers at subcontractors 311 32 68 Staff in-house and subcontractors 393 48 93
*All differences are significant at a 0, 05 level, using a two-sided t-test with Bonferroni correction
r2=0. 092) and an increase in quality of staff (Î=0. 002, Î=0. 329, r2=0. 095.
annual turn over, staff number, staff of subcontractors Table 4: innovation level (likert scale by firm size
#6), asking your staff to cut 5 pages in one time instead of 1 (resp.##8), re-organising the management structure (resp.#
human development management such as bonuses and staff appraisal (resp.##11) or more regular quality control of subcontractors (resp.#
annual turn over, staff number, staff at subcontractors Table 8: perceived newness of products IHS Working Paper 27.2013.
(3) Staff training. 4) Active involvement of staff in innovation processes. The impact of the indicators on innovation and their association is given in annex 3, table 3 and 4. The
indicators were computed into a new variable that measures assimilation capacity. The internal validity of the new indicator is strong, due to the strong association.
As building capacity of subcontractors is a painstaking and risky process, exporters work with trusted subcontractors and retain complex sampling,
They build the capacity of their staff through training and bonuses. As resp.##14 notes
†5 workers I trained really well. I also give them an opportunity to express themselves.
their workers. I just give an idea and design, and workers can add ideas that fit in better with their
technique. We are a team. I know the technique, but I can†t really do it.
have low staff capabilities. It explains why no firm has been able to manage very large or complex
but I cannot leave. There would be no character in the design and business. A silver smith that worked for
did not work, and he lost this job as well. †Firms are aware of their small base to manage
S=Staff Training dummy D=number of departments dummy; DS=discuss with staff dummy; CD=capacity of
designers dummy; B=capability to balance innovation dummy T he first stands for potential absorptive capacity and the second for realized absorptive
175 Î'2 Staff number 0. 006 Î'3 Secondary school completed dummy 0, 822 Î'4 Other position 0, 972
ownership, age, combine material, staff of subcontractors, annual turn over Willingness to take risks is not a significant indicator,
The impact of staff number is however marginal (Î=0. 006. The level of absorptive capacity differs significantly between
indicators, such as ownership, turn over, age of the firm and number of workers in subcontractors have no significant impact
63%of all firms send their entrepreneur and/or staff to training, often provided by the government in association with university staff and associations.
In addition, many entrepreneurs train their own staff, as they are better aware of specific
trends and technologies than training providers. Training takes place on a wide range of topics, indicating that the sector moves forward in a balanced manner (see table 12
46%of all firms report a large increase in quality of staff 49%a moderate increase and 5%no increase.
percentage of entrepreneurs and staff trained Entrepreneur Staff Product design 35 26 Marketing 40 23
Management 25 22 Technologies 14 10 Other (computer training, etc) 12 12 IHS Working Paper 27.2013.
IKEA staff located in Jakarta visited regularly to control quality, but also to support innovation processes.
Our workers were thinking that the low IKEA quality is viable for all our clients.
pay workers piece-rates. For some buyers, such as IKEA and the Body shop, limited control of
chain management or even leave Yogyakarta Environmental regulations in Europe and the USA steer innovation towards environmental
regularly invites foreign designers to work with subcontractors. Their subcontractors, however notice no difference in innovation between APIKRI and commercial exporters.
specific material, generally sourced from within the cluster and produced by skilled workers from the village itself.
chamber only has 5 employees, servicing thousands of firms in Yogyakarta province Business associations are criticized also widely.
Universities are debit to the quickly growing absorptive capacity of firms, as many staff graduated from one of the 70 universities.
#7) as supervisor.(.While I was working, I asked permission to establish my own firm.
I still consider myself his worker, but at home I am the boss. †And later he adds:
Firm characteristics Staff number (mean) 13 39 91 Annual Turn over (US$, average last 5 years) $39, 535 $436, 886 $995, 591
travelling, a departmental structure, staff training, internal discussion and capacity of designers. Especially the ability to balance product, process
Kojima C,"Batik Industrial Value Chain and Global Promotion of Yogyakarta Province: Constraints and Opportunities
Name firm Main actity#staff#staff subcontractors Total staff Turn over US$ Price segment Product group
LSE=more than 100 employees MSE=10-99 employees SSE=1-9 employees Turnover=average past 5 years
Price segment product ranges from low, medium, high to top end Number of employees=average last 5 years
Source: data collection IHS Working Paper 27.2013. Innovation in SMES. The case of home accessories in Yogyakarta, Indonesia 42
Annex 2: List of respondents of the qualitative study Director, Dekor Asia, Yogyakarta Director, HS Silver
Mark Kwami, Director MKWAMI Design Services, consultant of CBI Nurhadi, production manager, Harpa Green, Yogyakarta
Capacity of staff. -306/.086 Capacity of management. 000/.999 Discuss innovation with staff (dummy.
035/.862 ANOVA test significance of. 000 IHS Working Paper 27.2013. Innovation in SMES. The case of home accessories in Yogyakarta, Indonesia 45
with staff Constraint capacity design Constraint capacity managers Constraint capacity staff Train staff X. 631/.000.335/.004.215/.035.044/.663.191/.059
capacity staff 120/.488.140/.375.220/.183.203/.042 X. 037/.714 Constrain access to finance 124/.466.215/.101.101/.795.207/.038.037/.714 x
This report represents a continuation of work by the WBCSD in the areas of sustainability, innovation,
biotechnologies were important starting points for our work Appendices ITSS layout cag 2. qxd 05.08.2002 10:49 Page 30
WBCSD staff Michael Rulon Ross Stevens (Project Director, seconded from Dupont WBCSD resources Samantha Chadwick
and executives from several member companies. The views expressed do not necessarily represent the views of every WBCSD member
the national economy in terms of their sizeable contribution to GDP, employment generation, export performance, and achieving sustainable national economic development,
that is more suitable to the promotion of university-industry collaboration and the commercialization of publicly funded research
sizeable contribution to GDP, employment generation, export performance, and achieving sustainable national economic development, most
rely on creative work protectable by copyright Effective management of IP rights may provide new business opportunities for companies with the
a long delay for obtaining a patent leaves a great degree of uncertainty and delays the possibility of
the necessary human resources and/or accessible legal advice make use of the IP system complicated and
consultants and business advisors in the private sector. Thirdly, high costs, not just for acquiring and
relevance to the broader innovation promotion or competitiveness strategy of a country. As such, IP offices dealt almost exclusively with the registration
-today work, IPOS are increasingly devoting resources to a range of additional services aimed at facilitating
themselves, but also their business advisers, whether they be private sector consultants, or employees of chambers of commerce and industry or investors and
employees of financial institutions who are more likely to be listened to by the entrepreneur and managers/owners of SMES.
In addition, promotion activities on IP have generally proved to be more effective when included in other activities seeking to
meet some of the most immediate needs of SMES such as marketing, new product development exporting, financing, etc.
address the issue of IP promotion for SMES in a holistic manner with greater coordination and
a) Innovation promotion programmes b) programmes aimed at promoting the development of specific priority sectors (e g. biotechnology
c) export-promotion programmes; and d) R&d funds to promote the commercialization of R&d results and the acquisition of new
essential part of their export promotion programs This also includes assistance in gaining access to international application filing systems for patents
of compulsory expert arbitration as a solution to the excessive costs of patent litigation (ETAN, 1999.
researchers, SMES and business consultants to have a good understanding of the IP system in order to
experts and take into account the advice of all stakeholders †considering the existing standards when appropriate
EU Member States, is to give advice on the work programme standardisation mandates and on the adoption of possible
The action plan was adopted after much preparatory work and a long consultation with stakeholders. Its main focus is
the work conducted by several research projects (such as Rosatte †http://www. ertico. com/about-rosatte) and taking
was launched to support the European Commission†s work towards a European multimodal journey planner and to
promotion of multimodal journey planners is a common action with the Commission†s Action Plan on Urban Mobility
Promotion of the development of national multimodal door-to-door journey planners, taking due account of public transport alternatives, and their interconnection
Promotion of multimodal journey planners DGMOVE brochure ITS A4 indd 12 11/05/11 15: 15t105146 cee. pdf 14t105146 cee. pdf 14 20/06/11 13: 5020/06/11 13:50
regions †this work should include benchmarking and standardisation on door-to -door information flows, interfaces between the transport modes, traffic management
Promotion of deployment of advanced driver assistance systems and safety-and security-related ITS systems,
Promotion of advanced driver assistance systems and safety-related ITS >A C T IO N 3
Based on the outcome of this work and if appropriate or required, specifications may be elaborated under the ITS Directive
Building on this work, specifications related to intelligent truck parking should also be elaborated under the ITS Directive
achievements to hundreds of IT and traffic experts in and around Amsterdam at the end of March 2010.
be among the activities taking work forward on cooperative systems >>Coopers (Cooperative Systems for Intelligent
>support and monitor the work of ETSI (the European Telecommunications Standards Institute †http://www. etsi. org) and CEN (the European
for standardisation work. For V2i and V2v, ETSI adopted the European Communications Architecture for Cooperative
the 2009 and 2010 ICT standardisation work programmes CEN (the European Committee for Standardisation â€
>set up an Expert Group on Urban ITS as a collaboration platform to promote ITS initiatives in the area of
The Expert Group on Urban ITS was established and met for the first time on 8 december 2010, consisting of 25 members
>>Expert Group on Urban ITS in the European>>Expert Group on Urban ITS in the European>>Expert Group on Urban ITS in the European
Promotion of advanced driver assistance systemsand safety-related ITS Open in-vehicle platform Data security and data protection
It underpins employment, economic growth and global exports, while providing citizens with resources and mobility that are essential to the quality of life
will start its work •EU-wide multimodal travel information services •EU-wide real-time traffic information services
maintenance workers Some 37%of serious accidents involving such persons occur in conditions of darkness or fog.
notes, †Our work led directly to the night vision systems introduced in Europe around one year later.
†Work in INTRO and related FP6 projects has contributed to aâ better understanding of the ways in which
automated systems routinely manage the flight controls, with the pilot acting as aâ supervisor /controller able to intervene
Commission ITS Action Plan, for the †promotion of multimodal journey planners†(Action 1. 5
Another important direction for ITS research is the promotion of multimodal door-to-door journeys, which combine
-ments of visitors, employees, participants and VIPS, within the framework of general event logistics. Applications will
2. Human resources in Research & development 13 Figure 10: Total research personnel (headcount and FTES), 2003-2011 13
ï§Medium and large enterprises (more than 50 employees) accounted for almost three -quarters of BERD in 2011
Human resources in R&d (2011 ï§There were over 19,000 research personnel in the business sector, a 21 per cent
ï§Small firms with less than 50 employees accounted for 69 per cent of all R&d active
Figure 8 shows BERD by size of firm, with medium/large firms with 50+employees holding the
less than 50 employees) increased from 24 per cent in 2003 to 27 per cent in 2011.
2. Human resources in Research & development This section focuses on personnel in R&d in the business sector between 2003 and 2011.
support staff Figure 10: Total research personnel (headcount and FTES), 2003-2011 Source: CSO databank, Forfã¡
Figure 10 shows that over 19,000 employees or 14,000 on a full time equivalent (FTE) basis
increase) since 2009 and by 7, 034 employees over the decade Figure 11: Total researchers (headcount and FTES), 2003-2011
All research and development staff FTES All research and development staff (headcount 6, 013 6, 758 7, 262 7, 733
8, 996 6, 607 7, 698 8, 242 8, 960 10,618 0 2, 000 4, 000
The following staff increases were observed between 2003 and 2011 ï§the number of Phd qualified researchers increased more than threefold from 467 to
Technicians Support staff FORFÃ S BERD 2011/2012 ANALYSIS 15 Figure 13: Research personnel by occupation (FTES), 2003-2011
Technicians Support staff 6, 305 6, 749 6, 022 6, 986 8, 934 5, 729
less than 50 employees) increased by 41 per cent since 2003, from 757 firms to 1, 109 firms in
Medium/large R&d performing firms (more than 50 employees) increased by 48 per cent since 2003 to 499 firms in 2011
or theoretical work undertaken primarily to acquire new knowledge, without any particular application or use in view
3. Experimental development (systematic work, drawing on existing knowledge gained from research and practical experience that is directed to producing new materials
Annual Employment Survey Forfã¡s July 2013 Ireland†s Competitiveness Performance 2013 Forfã¡s May 2013
Regional Labour markets Bulletin 2012 EGFSN January 2013 A Review and Audit of Licenses Across Key Sectors of The irish Economy
Annual Employment Survey 2011 Forfã¡s August 2012 National Skills Bulletin 2012 NCC July 2012
financial system and anemic employment recovery since the Great Recession. But Europe faces a challenge of equal or even greater
While employment presents a formidable challenge in many European countries, sacrificing productivity for jobs†that is, deliberately creating
workers ages 55-65 are employed, while only 55 percent of European workers are. 22 Moreover, a greater share of the EU population is above age 65.23 In 2013,18. 2 percent of
the population of the EU-27 nations was 65 years and older, compared to 13.8 percent in
that after-tax worker incomes continue to rise. However, if Europe†s current low productivity growth rate persists,
surplus for workers who would see no income growth. 24 BOX 1: PRODUCTIVITY, INNOVATION AND COMPETITIVENESS
is typically an hour of labor, a single worker, or a combination of workers and
physical capital. Using hours of work or the amount of workers as the denominator yields labor productivity (the measure used in this report unless
otherwise specified), while using the combination of workers, physical capital and other inputs as the denominator yields total factor productivity (TFP;
TFP is also called multi-factor productivity, or MFP, when using only workers and physical capital
Productivity is the main determinant of national income per person, because over the long term a nation can consume only what it produces
organizational method in business practices, workplace organization, or external relations. 28 The distinction between â€oeproduct†and â€oeprocess†innovation is
in non-traded sectors where productivity gains go directly to European workers and consumers. Moreover, productivity gains in traded sectors help EU
â€oefirms with high levels of ICT are more likely to grow (in terms of employment) and less
they had increased both productivity and expanded employment over the past year. 61 Castiglione measures the impact of ICT investments in Italian manufacturing firms and
earlier work by Milana and Zeli. 62 Iammarino and Jona-Lasinio find that Italian regions with significant ICT production have greater labor productivity
by adding more workers. While demographic shifts are important for the absolute size of the economy, they do not affect productivity or income per capita
speeding up too quickly and purportedly leading to unemployment. 1 The main problems with this view are that productivity is clearly not speeding up,
impact on either unemployment or workforce growth. 1 Reality, as usual, will probably sit somewhere comfortably between these two
and staff ICT training. 97 (See Figure 12 Figure 12: Average of 4 indicators of ICT use (1-7, where is 7 highest use;
because â€oehigh levels of labour and product market regulation are associated with a lower productivity impact of ICT. †104 Overall, Van Reenen et al. find that product market
and further work is necessary to determine whether ICT capital depreciation rates have a significant effect on investment
workers employed by large firms than all European countries. Figure 15) In particular Italy, Greece, and other Mediterranean countries stand out as having an unusually high
proportion of their employment in small firms Firm size matters for the EU because larger firms are more likely to invest in ICT.
particularly because labor market regulation can limit the number of employees a firm chooses to have. 134 France,
with 50 or more employees, and this provides an incentive for firms to stay under the 50
-worker threshold. 135 Land use regulations, as also described above, can also constrain both firm size, by preventing the entry of more efficient franchise-style firms, and establishment
Previous work by Bloom and Van Reenen also found that American management quality was better overall than European management across a range of
This explains the overriding focus in Europe on job creation and the concern that productivity growth will conflict with job growth.
top priority. 156 As long as European policymakers continue to place job creation above productivity it will be difficult to close the productivity gap with the United states. To be
Europe (and the United states), job creation is important. But productivity growth is just as important, and will become even relatively more important as the years go on
whether promotion of the former through higher tariffs or other restrictions (like on cross -border data flows) will be detrimental to the latter
restructure work through ICT that might lead to some layoffs. Yet it is only by pursuing
productive, pay higher wages, injure their workers less, are more innovative, and export more. 174 This is not to say that small firms do not add value.
Switzerland, and the UK have the smallest proportion of workers in small firms and have
firms have under 20 workers. 177 Larger firms are usually more productive, in part because
OECD Statextracts (Short-term Labour market Statistics: Activity Rates, aged 55-65, all persons accessed February 13, 2014), http://stats. oecd. org
â€oeproductivity, Workplace Performance and ICT: Industry and Firm-Level Evidence for Europe and the US, †Scottish Journal of Political economy 52, no. 3 (2005:
Philipp Koellinger, â€oeimpact of ICT on Corporate Performance, Productivity and Employment Dynamics†(European commission Enterprise and Industry Directorate General, December 2006
Simona Iammarino and Cecilia Jona-Lasinio, â€oeict Production and Labour Productivity in the Italian Regions†(European Urban and Regional Studies, February 7, 2013), doi:
Growth of labour productivity, in per cent, Business Services Sector; accessed February 24 http://stats. oecd. org/Index. aspx?
Regulatory Practices, †Labour Economics 11, no. 1 february 2004: 33†58, doi: 10.1016/S0927 -5371 (03) 00055-1
across European Regional Labour markets, †Regional Studies 47, no. 10 (2013: 1686†1700 115. Tillmann Schwã rer, â€oeoffshoring, Domestic Outsourcing and Productivity:
Employment in France and Germany (Mckinsey Global Institute, March 1997 http://www. mckinsey. com/insights/europe/removing barriers to growth and employment in france a
20 percent of its jobs with average value-added per worker with jobs having a value-added of over 50
Murat Seker, â€oerigidities in Employment protection and Exporting, †World Development 40, no. 2 2012): ) 238†50
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