Synopsis: Employment & working conditions:

o Promotion of a comprehensive information society Having in view that the spread of Internet benefices depends more and more

unemployment, transportation or environment. Another exemple is e-education that represents an alternative to the traditional learning method,

•Creation of new opportunities on labour market (example, work at home •A more efficient management of enterprises, especially of small and

over the world or to increase the degree of specialization of employees at companies†level by developing programs of E training and e-Coaching

8 At the same time new opportunities arise for the knowledge level of universities by the possibility to develop

well as certain human resources experienced in new technologies, including communications technologies Successful implementation of communication technologies has tangible effects

employees broadband communications are meant to reduce the importance of localizing by allowing the establishment of offices in small, rural or isolated localities

as well as by facilitating teleworking For the Romanian companies electronic trade development can bring important advantages namely significant reductions of transaction costs and

communications already mentioned (as e-Education, teleworking etc. the beneficial effects materialize in the increased access to the interactive content

than 9%for big companies with more than 50 employees. At the same time 57%of these companies shall select the purchase of a dedicated access connection (where

-%of employees with experience in using computers and Internet -the degree of digital alphabetization of the public

responsible for the implementation of initiatives envisaging promotion of broadband communications†infrastructure development and elimination of the

potential conflict of interests IV. 2 Methodology and monitoring of the implementation of the strategy To be able to put into practice the strategy for developing broadband

negative impact on growth, trade, investment and employment across the globe and untold social and human consequences.

as well as for the promotion of citizens†engagement and for increasing empowerment and the accessibility and

ICT have become essential in supporting the work of legislative bodies Furthermore, e-democracy provides elected representatives with unprecedented

•creating a broadband passive infrastructure (civil engineering works in synergy with the work of developing another type of infrastructure-energy

transport, water, etc..The Commission has allocated for Romania through the European Fund for Regional Development (EFRD) 101.2 million euros.

developing a digital economy, the promotion of low-carbon, encouraging development of new products and modernizing education and training sector.

stakeholders and policy experts will help the Commission to decide whether to submit new proposals for legislation on universal service obligations in the

companies with approximately 60%of employees Regarding the integration of procurement solutions in the European context

As Intermediate Body for Promotion the Information Society, MCSI manages Priority Axis III-ICT for public and private sectors, SOP IEC 2007-2013.

nominal amounts due the employees and the general consolidated budget (single desk Law), or the Budget Project of revenue and expenditure for 2010-ANCOM

%Researchers Staff (number of people) 2007,3 0, 93 %-Articles published in international and national journals

%and generates about the 30%of the employment in the region. Tourism is the main economic engine of the islands and

Employees who received ICT training 13,8 17,4 Net domestic ICT market (thousands of euros) 189,5 1, 49

 consultant  for  energy  policy  and  renewable  energies  in

 work  as  journalist  and  policy  consultant  for  energy

 issues  in  Switzerland  In  1986  he  shifted  to

 EURES  Institute  for  Regional  Studies  in  Europe  Freiburg

 experts  are  considering  not  to  be  the Â

 Expert  Group  3  of  the  Smart  Grid  Task

 Expert  Groups  have  delivered  reports  in  2011  While

 Expert  group  3  on  â€oeroles  and  re- â€

 work  of  the  Task  Force  has  contributed  to

 work  of  expert  group  1. 24  In  2012

 work  programme   envisages  the  finalisa- † Â

 Promotion  of  Cogeneration  whose  mem- †bership  consists

 Executive  Summary  Pike  Research  Boulder  CO  USA Â

 work  programme  European  Commission  Brussels  European  Technology  Platform

 Executive  Summary  Pike  Research  Boulder  CO  USA  http://www. pikeresearch. com/research/smart- †grids- †in- †europe

initiatives that generate wealth and employment Participatory governance Entrepreneurial discovery Action Plan implementation Strategy improvement

employment and Input-Output regional economic accounts (www. ine. es Specialisation pattern mapping following Del

also the entrepreneurial promotion (and specifically the search for entrepreneurial discoveries) as well as the networking and cooperation within the triple helix

Aragon has a good tradition of social dialogue 2 Education, research and innovation The University of Zaragoza plays a major role in Aragon with its 35000 students (including many Erasmus students

through structures such as CREA (www. crea. es) and CEPYME (www. cepymearagon. es) on the employers'side

The UGT and CCO are the main trade unions. Three Chambers of commerce and industry also play an important role in Zaragoza (www. camarazaragoza. com), Huesca

actions related to human resources, support to I+D through funding and research infrastructures, support to technological transfer and diffusion of research and innovation

& promotion structures Parks & scientific & technological poles ENTERPRISE SISTEMA DE INNOVACIÃ N DE ARAGÃ N

adviser Meeting with stakeholders Selection of priorities Policy mix roadmap and action plan Integration of

and supportive, much visibility given to our work in 2012 at a regional national and European level

With respect to employment generated by the industry in Asturias, in 2010 53,636 people were employed in the sector, representing a 2. 51%of the total sector employment in Spain (around 2. 1

million Both in Asturias and Spain there has been a widespread decrease of economic activity, with the

construction sector most affected with a reduction in employment of around 40%.%It is followed in

%Employees per sectors in Spain (quarterly average 2012 (3t) 2011 2010 2009 2008 Total 17.320,3 18.104,6 18.456,5 18.888 20.257,6

employment. They are the metal sector, the food sector and the extractive industries, energy and

employment from 2000 to the present, in the three main branches of the industrial sector in

Note the importance of the metal sector in manufacturing employment in the region As a summary, Asturias represents approximately 2. 40%of the Spanish total population, 2. 15%of the

ï The analytical work is being done so far by the referred document, the survey and the future

education, employment and rural development policies ï There is no evidence that the strategy includes a clear reflection/proposal on how to exploit

Trade unions What have done we already ï¿We Have identified 18 debate groups and its members (see

We have got a european RIS3 specialist consultant (Adrian Healy from Cardiff†s University) to supervise the process

Building and Civil Works ï¿Steel transformation ï¿Car components ï¿Electric and Electronics devices

consultant ï¿Our objetive is finish the steps 1, 2, 3 of RIS3's guide in theï¿

Datos disponibles en Eurostat (Indicador Employment in technology and knowledge and sex (from 2008 onwards, NACE Rev. 2

Datos disponibles en Eurostat (Indicador Employment in technology and knowledge-intensive sectors by NUTS 2 regions

-Datos disponibles en Eurostat (Indicador Employment in intensive sectors by NUTS 2 regions aciã n de las encuestas de Eurostat

1. 3 LABOUR MARKET EVOLUTION...3 2 SCIENCE AND TECHNOLOGY: A PRIORITY FOR THE REGIONAL GOVERNMENT OF CASTILLA Y LEÃ N...3

1. 3 Labour market evolution Due to the important rates of growth of our economy, the rate of unemployment in Castilla y Leã n, was been

reduced significantly during the period 1996 (19.4%)to 2007 (7. 2%).More recently, unemployment rate has been

During the same period, unemployment of youth population increased from 17.43%to 38.54%in Castilla y Leã n

The Law 17/2002 of promotion and general coordination of the scientific research, development and technological innovation (R&d and Innovation) in Castilla y Leã n. This law defines the regional institutions

sustaining employment and economic wealth Clusters which are benefited from global trends in fields where Castilla

the employment and economy of Castilla y Leã n, now under restructuration Automotive Agro-food

2006-2009 by a panel of experts supported by the European Commission2, whose mission was studying the causes of a growing gap in R&d efforts between Europe and the United

interviews and work groups with participation of representatives from government businesses, business associations, universities, research centers, technology transfer

becoming evident in macroeconomic variables such as the employment market (while the unemployment rate remains below the national average) or in the number of active

The number of innovative companies (with more than 10 employees) has been experiencing a downward trend since 2004 at both regional and national levels,

Concerning human resources, the personnel employed in R&d activities in full-time equivalent (FTE) per thousands of working people in Castilla y Leã n has evolved positively

10 employees and companies with less than 10 employees (micro-enterprises and independent contractors), where usage data and ICT availability continue to be low with

than 10 employees had compared computers with 71.6%at the national level. In the case of companies with more than 10 employees, these percentages increased to 98%.63.7

%of micro-enterprises and independent contractors have Internet access, lightly below the 65.7%national average. This figure rises to 97.1%for companies with more than 10

employees. There has been significant growth in recent years of mobile Internet access in companies, which is replacing fixed lines in some cases

specialized human resources in administrative management •Scientific specialisation has little relationship to regional economic specialisation;

human resources in research entities and talent and brain drain •Decreased globalization of innovation and minimal participation in international

human resources, and development of initiatives •Loss of support structure for R&d because of the financial crisis and risk of

region†s university and vocational training systems •The region†s ICT sector has specialisation capacities in the fields of mobility and

of work and large imbalances in the use of ICT depending on the company size •Lack of adaptation of regulated training

University, Vocational training) for the ICT market •Difficulty in globalization of the regional ICT sector

2002 Law of Promotion and General Coordination of R&d&i 2003 Universities Law (modified in 2010

 •†Employment  and  sustainable  economic  growth  •†Social

 work  on  Research  and  Innovation  vis- †Ã- †vis

Employment  &  sustainable  economic  growth  Social  &  territorial

 work  The  problem  is  to  do  the  matrix

 work  Limited  information  about  speciaic  activities  results  indicators

 work  SWOT  and  strategic  objectives  are  different  Technically

employees in at least one year within the timeframe 1996†2001 covered by this study. As indicated by the European commission

250 employees is the standard cut off point to identify SMES in the European context (Recommendation 2003/361/EC

than 250 employees in the same period Therefore the distribution of our sample is to some extent also

employees, compared to 13.3%in the UK and 7. 8%in Germany OECD, 1997 It is also interesting to note that

each ï rm as the minimum number of employees between 1996 and 2001 This study also controlled for ï rms'age.

employees of the ï rm between 1996 and 2001 551 55.595 54.877 1. 000 248.000 0. 107**0. 110**ï¿

less than 38 employees and ï rms with over 38 employees, where 38 employees is the median number of employees of ï rms in our sample

In Table 5a and b we report the results from the 2sls. Model 5. 1 estimates the ï rst stage equation,

Leveraging resistance to change and the skunk works model of innovation. J. Econ. Behav. Organ. 72 (1), 274†289

-works. The case of Switzerland and the world watch industry. Res. Policy 21 469†485

Small Business, Job creation and Growth: Facts, Obstacles and Best Practices. Available at www. oecd. org/cfe/smes/2090740. pdf

The division of labour is limited by the extent of the market. J. Polit Econ. 59, 185†193

complementary assets, middle management, and ambidexterity Organ. Sci. 20 (4), 718†739 Teece, D. J.,1986.

identify good practice and work to coordinate domestic and international policies The OECD member countries are:

the European communities takes part in the work of the OECD OECD Publishing disseminates widely the results of the Organisation†s statistics gathering and

This work is published on the responsibility of the Secretary-general of the OECD. The opinions expressed and arguments employed herein do not necessarily reflect the official

The efforts of vocational training institutions and schools are also central to meeting the challenge. But entrepreneurship education is confined not to

Employees also acquire entrepreneurship skills through interactions with their co-workers, suppliers, clients and consultants on projects such as

those to improve quality control methods or products. These interactions often take place through interactions between SMES and providers of what are known as Knowledge Intensive Service

efforts must be the promotion of innovation in SMES and of innovative new entrepreneurship, and

Committee of the Local Economic and Employment Development Programme. I would like to thank the delegates, experts and Secretariat members for their contributions.

I trust that this publication will provide inspiration to policy makers around the world and, through their efforts, help new and

The following experts comprised the Scientific Advisory Group that helped guide preparation of this publication

Assistance in developing the Country Notes was provided by the following experts Petr Adamek, Bergman Group, Czech republic

and the Directing Committee of the Local Economic and Employment Development Programme SMES, ENTREPRENEURSHIP AND INNOVATION Â OECD 2010 9

driver of growth in output per unit of labour and capital invested, and an important basis

workplace organisation and external relations. In this framework, new firm creation through entrepreneurship (which typically generates new SME entities but occasionally also â€oeborn

employment (approximately two-thirds) and all value added (over one-half. These shares vary significantly by country.

from minima of 47.2%of employment in industry in the Slovak Republic, 52.6%of employment in services in the United kingdom and 49.9%of value added in Ireland, to

85.4%of employment in industry, 88.8%of employment in services and 75.2%of value added in Greece,

where SMES are particularly significant. The data also show substantial SMES, ENTREPRENEURSHIP AND INNOVATION Â OECD 201016

basic university research and highly-skilled workers are most important. This is associated with important local knowledge spillovers in these sectors.

and to attract highly-skilled labour from abroad SMES, ENTREPRENEURSHIP AND INNOVATION Â OECD 2010 17

This works best when entrepreneurship support is embedded within teaching, entrepreneurship is seen as a strategic objective and

clear incentives and rewards are applied for academic staff engaged in entrepreneurship promotion, support is provided for financial and human

resources, and entrepreneurship-dedicated structures are in place such as chairs, centres and incubation facilities. Start-up assistance and evaluations of support approaches

apprenticeship programmes are good vehicles for developing entrepreneurship skills, but SME participation in apprenticeship and other vocational training is limited relatively

potentially reflecting inappropriate training supply. Shifts are also occurring in school curriculums aimed at fostering in students the ability and desire to act entrepreneurially

employees by SMES is much less common than for large firms. Despite the general importance of vocational education and training (VET) to skills development in firms

enterprises with less than 50 employees provide significantly less employee training than larger firms. This is even true for countries known for their strong training cultures, such as

younger, better-educated workers in highly-skilled occupations such as managers professionals and technicians have greater access to training opportunities than less

educated â€oeroutine†(i e. involved in routine tasks) and older workers. One of the problems is that externally-provided entrepreneurship training approaches for managers and workers

are geared not sufficiently to the â€oehow to†nature of competences that firms require The smart use of Knowledge Intensive Service Activities (KISAS) by SMES can nevertheless

provide a significant boost to the entrepreneurship skills of SME employees. This involves SMES bringing in outside firms and consultants to help them implement change, for example in

quality control, marketing or product development. Experts may be called on in a range of areas, such as in research and development, legal, information technology, marketing and

other knowledge-intensive activities. Their advice and joint work with SME workforces upgrades skills, increasing the ability of SMES to develop,

absorb and apply knowledge in their broader innovation processes. Yet despite the capacity to support learning in this way

employers industry representatives, unions, labour market and training intermediaries (temporary work agencies and group training companies), local and regional government agencies

and community representatives, in order to develop skill strategies and deliver training The final thematic chapter concerns social entrepreneurship and social innovation

charities such as the Silai for Skills women†s training and employment initiative in Bristol United kingdom

and implementing new labour market integration processes, new competencies, new jobs, and new forms of participation, as

job creation from new firm start-up and SME growth and productivity improvements from increased new and small firm

â Secure conducive conditions for both high-employment-growth firms and innovation in the bulk of new and small firms

e g. innovation brokers, labour mobility schemes, programmes for the commercialisation of university research), and intelligence functions aimed at anticipating future needs and

Promote local labour mobility such as through university-industry staff exchange programmes â Use the concept of â€oerelated variety†to guide policy.

attracting highly-skilled labour from abroad â Measures for SME cross-border alliances should include providing information and

promotion of corporate spin-offs from foreign direct investors; and joint technology development and training initiatives involving foreign affiliates and local SMES

â In the spirit of â€oebrain circulationâ€, policy should seek to attract talented labour from

making diaspora populations aware of local job vacancies Learning processes are at the core of entrepreneurship and SME innovation.

innovation by employees in existing SMES. The following recommendations are offered â Build up entrepreneurship education in universities and higher education institutions by smartly

apprenticeships and developing the training function of small business support programmes, such as for business succession, management and training and business

consultants providing knowledge-intensive service activities (KISA), for example using â€oeinnovation vouchers†for SMES â Strengthen local skills ecosystems.

programmes through the engagement of employers, unions and individuals. Create integrated training strategies combining training located in higher education, vocational

employees, while â€oegazelles†account for less than 1 per cent of such enterprises. 1 They nonetheless generate large impacts.

entrepreneurship and SME activity and economic growth and job creation. These growth and job creation effects happen through innovation,

as new firm creation and SME growth increase productivity and bring new or under-utilised resources into use.

small firm activity and job creation, as new and small firms take up labour released by downsizing elsewhere in the economy and increase national and local competitiveness

all net job creation in the United states occurred in firms less than five years old, while in

This job creation function of entrepreneurship and SME development is of great relevance to the recovery from the global financial and economic crisis since it is clear that

creation challenge of high unemployment. In the short to medium term there is a real opportunity for governments to use policies for entrepreneurship and SME innovation to

meet productivity and job creation objectives at the same time There is growing, if still insufficient, recognition that entrepreneurship and small firm

for its arrival has been the out-sourcing of standardised production from high-to low-labour

drivers of innovation, growth and employment creation The major feature of the knowledge economy is increased the importance of

capital and labour stocks. It is therefore critical for policy to stimulate knowledge creation and exploitation in firms

universities and other firms or business angels, from labour mobility among firms and organisations and from informal social capital contacts.

implementation of new organisational methods in firms†business practices, workplace organisation and external relations can have substantial impacts on firmsâ€

placement, product promotion or pricing Non-technological innovations involve a wider range of actors, processes and

techniques on the work floor. It may also be the source of rapid growth for some firms

firm employment or turnover. Instead, the major conclusion to be drawn is that the drivers of SME innovation may vary between technological and non-technological

consultants and other firms often brings new non-technological ideas into the firm with respect to business practices, workplace organisation and marketing (OECD, 2010a

forthcoming Another issue is that whereas technological innovation tends to be associated more with manufacturing, non-technological innovation is equally important to services and

round up teams of engineers and other key staff from other firms. Engineers and other key

stable employment in large firms and a central role of unions and employers in regulating

regulation of labour markets and a strong welfare state. The reduced power of large firms and unions,

turbulence and labour market flexibility increased the strain upon it Social entrepreneurs and social enterprises such as nonprofit organisations have

time many address problems of unemployment and the social problems of poor neighbourhoods. This is of great relevance in the current post-crisis context in which

is also about employment. As unemployment rates rise, it is critical that new firms are able

so that recent job destruction is balanced by job creation in the short to medium term. At the same time productivity may be enhanced as new firms bring better

innovation rates per employee not per firm (Audretsch, 1995. On the other hand, there is a strong suggestion that SMES are associated particularly with bringing forward so-called

Furthermore, some empirical work casts doubt on a general characterisation of small firms as breakthrough innovators and large firms as incremental innovators (Chandy

and interacting occurs on the job as employees face ongoing changes that confront them with new problems and can be fostered by organisational practices within the firm, such as

demand stimulus or targeted employment and investment subsidies and the improvement of productivity by helping new and small firms to carry innovations into

â High-employment-growth firms. One of the contributions of new firms and SMES to the

They make up an important component of the high-employment-growth firm sector. Facilitation and support for breakthrough innovation in this group may

science parks and business incubators, encouraging mobility of staff between universities and industry, and facilitating knowledge exploitation through licenses

of problem-solving work teams and engagement with external knowledge intensive service activity providers such as consultants (OECD, 2010a, forthcoming

â Entrepreneurship skills. Another often overlooked factor affecting the propensity for successful business start-up is the degree to

labour from overseas and building cross-national SME alliances Chapter 4 examines the skills issue.

imparted through school education, universities and vocational training colleges. Training in SMES is also very dependent on relationships with the public sector because while large

older and routine workers. These problems need to be addressed Finally, Chapter 5 examines social innovation and social entrepreneurship.

employment, consumption or participation. The social entrepreneur is an agent of social innovation but not the only one.

as measured by employment, are enterprises with average annualised growth in employees greater than 20%a year over a three year period and with ten or more

employees at the beginning of the observation period. â€oegazellesâ€, as measured by employment, are enterprises which have been employers for a period of up to five years, with average annualised

growth in employees greater than 20%a year over a three-year period and with ten or more

employees at the beginning of the period 2. See also NESTA (2009 3. The OECD/Eurostat Entrepreneurship Indicator Programme is developing internationally

-comparable indicators of entrepreneurship based on this definition Bibliography Acs, Z. and D. Audretsch (1990), Innovation and Small Firms, MIT Press, Cambridge MA

Acs, Z.,D. Audretsch, P. Braunerhjelm and B. Carlsson (2004), â€oethe Missing Link: the Knowledge Filter

and Entrepreneurship in Endogenous Growthâ€, Centre for Economic policy Research Discussion Paper No. 4783, Centre for Economic policy Research:

Firms and their Contribution to Employment in the UK, NESTA, London Archibugi, D. and S. Iammarino (1997), â€oethe Policy Implications of the Globalisation of Innovationâ€

Daviddson, P.,L. Lindmark and C. Olofsson (1999), â€oesmes and Job creation during a Recession and

Challenges and Key Issues for Future Actionsâ€, Commission Staff Working Document (2007) 1059 European commission DG Enterprise and Industry, Brussels

Job creation by Firm Ageâ€, Small Business Policy Branch, Industry Canada, Ottawa Haltiwanger, J. 1999), â€oejob Creation and Destruction by Employer Size and Age:

Cyclical Dynamicsâ€, in Z. Acs, B. Carlsson and C. Karlsson (eds. Entrepreneurship, Small and Medium-Sized Enterprises and the

Malecki, E. 2008), â€oehigher Education, Knowledge Transfer Mechanisms and the Promotion of SME Innovationâ€, in J. Potter (ed.),Entrepreneurship and Higher education, OECD, Paris Ch. 9, pp. 213-234

OECD (2002), High-growth SMES and Employment, OECD, Paris OECD (2003), The Nonprofit Sector in a Changing Economy, OECD, Paris

experts and delegates to the OECD Working Party on SMES and Entrepreneurship and OECD Local Economic and Employment Development Committee

Box 2. 1. Basic methodological references Data presented in the chapter come from three main sources

enterprises/establishments and employment; number of persons engaged/number of employees. The dataset follows the International Standard Industrial Classification (ISIC

Rev. 3 for the classification of economic activities (see Annex 2. A1 The breakdown of enterprises by size class used by national bureaus of statistics varies

method in business practices, workplace organisation or external relations. Four types are identified â Product innovation:

product design or packaging, product placement, product promotion or pricing â Organisational innovation: The implementation of a new organisational method in the firm†s busin

practices, workplace organisation or external relations Indicators on product and process innovations presented in this chapter correspond to innovatio

with more than 20 employees, and therefore exclude micro enterprises OECD Product Market Regulation (PMR) indicators

and marketing/promotion. Finally, Small Business Online is a competitive, grant-based programme designed to help small businesses go online, significantly

referral service linking firms to experts within industries SMES, ENTREPRENEURSHIP AND INNOVATION Â OECD 201048

labour market Lack of access to knowledge or technology Uncertain demand for new goods or services

Number of enterprises Total employment Value added Industry Services Total Industry Services Total %No. firms%No. firms%%No. engaged%No. engaged%%Industry Services Total

external experts; and providing physical office space Nine centres have been selected in two competitive tenders. Their setup and operation are supported

are shared, including with international experts. The budget for the whole intended programme life cycle amounts to EUR 77 million, a third of which comes from federal money, a third from the regions, and a

is administered by the agency FFG (Austrian Research Promotion Agency SMES, ENTREPRENEURSHIP AND INNOVATION Â OECD 201050

Number of enterprises Total employment Value added (factor costs Industry Services Total Industry Services Total

Consultants commercial labs or private institutes Government or public research institutes 0 0. 5 1. 0

works to boost the innovativeness of regional SMES, by leveraging additional risk capital for new ventures

the Flemish Institute for the Promotion of Innovation, implements the following types of measures in the

Number of enterprises Total employment Value added (factor costs Industry Services Total Industry Services Total

Consultants commercial labs or private institutes Lack of qualified personnel Difficulty in finding co-operation

the financial year 2009-10 as part of the Economic Action Plan†s specific effort to stimulate job creation and

Number of business establishments Total employment Industry Services Total Industry Services Total No. firms%No. firms%%No. engaged%No. engaged

This has been pursued mainly through the promotion of business support services especially in sectors of strategic relevance to the Czech economy such as automotive, machinery engineering

Number of enterprises Total employment Value added (factor costs Industry Services Total Industry Services Total

Consultants commercial labs or private institutes Government or public research institutes 0 0. 5 1. 0

employees taking part in the innovation processes of the beneficiary companies and public institutions Applicants and projects from educational, cultural and knowledge institutions are welcomed.

Number of enterprises Total employment Value added (factor costs Industry Services Total Industry Services Total

Consultants commercial labs or private institutes Government or public research institutes 0 0. 5 1. 0

and covers more than one-third of R&d in businesses with less than 50 employees, but less than 3%of R&d

in businesses with more than 500 employees. Tekes directed approximately 26%of the total funding for

businesses to the smallest enterprises employing less than ten employees, approximately EUR 75 million in 2008.

%The Ministry of Employment and the Economy (TEM) is building a modern growth entrepreneurship policy that seeks to create first-rate conditions for Finnish growth ventures.

six years and with less than 50 employees, and willing to seek and accept new owners and investors

provides incentives for experts, such as serial entrepreneurs, to become mentors and active developers in new ventures.

Such experts are positioned well to offer high-quality advice and contacts for start-ups to accelerate their growth and internationalisation,

Number of enterprises Total employment Value added (factor costs Industry Services Total Industry Services Total

Consultants commercial labs or private institutes Government or public research institutes 0 0. 5 1. 0

by means of tools such as loans for innovative projects, contacts with research societies, recruitment of

Number of enterprises Total employment Value added (factor costs Industry Services Total Industry Services Total

Consultants commercial labs or private institutes Government or public research institutes 0 0. 5 1. 0

entrepreneurship among university employees and students. Projects at universities and non-university research institutes can apply for financial support in the form of a non-repayable grant over a three-year

During the first funding phase, entrepreneurs can apply for staff expenses for up to three staff

Number of enterprises Total employment Value added (factor costs Industry Services Total Industry Services Total

Consultants commercial labs or private institutes Government or public research institutes 0 0. 5 1. 0

whole, these programmes have provided incentives to both university and the private sector to work together, whilst cushioning the financial risk for people willing to invest in technology-based start-ups

Number of enterprises Total employment Value added (factor costs Industry Services Total Industry Services Total

Consultants commercial labs or private institutes Government or public research institutes 0 0. 5 1. 0

Number of enterprises Total employment Value added (factor costs Industry Services Total Industry Services Total

Consultants commercial labs or private institutes Government or public research institutes 0 0. 5 1. 0

Consultants commercial labs or private institutes Government or public research institutes 0 0. 5 1. 0

Number of enterprises Total employment Value added (factor costs Industry Services Total Industry Services Total

Consultants commercial labs or private institutes Government or public research institutes 0 0. 5 1. 0

Number of enterprises Total employment Value added (factor costs Industry Services Total Industry Services Total

Consultants commercial labs or private institutes Government or public research institutes 0 0. 5 1. 0

Funding recipients should have less than 300 employees or capital below JPY 300 million. The majority of schemes target venture companies and SMES

Number of establishments Total employment Value added Industry Services Total Industry Services Total Industry %%%No. engaged

that are targeted all at assisting SMES in the areas of entrepreneurship, human resources, financing marketing and innovation

Finally, the SMBA operates Incubation Centre Promotion, a programme that aims to encourage spin-offs from universities and research institutes.

Number of establishments Total employment Value added Industry Services Total Industry Services Total %%%No. engaged%%%Industry Services Total

Number of enterprises Total employment Value added (factor costs Industry Services Total Industry Services Total

Consultants commercial labs or private institutes Government or public research institutes 0 0. 5 1. 0

Number of establishments Total employment Industry Services Total Industry Services Total No. firms%No. firms%%No. engaged%No. engaged

Number of enterprises Total employment Value added (factor costs Industry Services Total Industry Services Total

Consultants commercial labs or private institutes Government or public research institutes 0 0. 5 1. 0

young scientists, technicians and engineers in research and development projects, engaging experts in R&d and commercialisation projects,

reworking employee structures, to incorporate design-led positions and integration between functional teams; and developing new branding

design consultants and mentors, and external costs associated with prototyping SMES, ENTREPRENEURSHIP AND INNOVATION Â OECD 201086

Number of enterprises Number of employees Industry Services Total Industry Services Total %%%Micro 67 447 91.0 229 204 94.1 93.3 799 84 19.6 180 850 21.8 21.1

Number of enterprises Total employment Value added (factor costs Industry Services Total Industry Services Total

Consultants commercial labs or private institutes Government or public research institutes 0 0. 5 1. 0

Its main purposes are to strengthen the fight against IPR infringement by training staff in

Number of enterprises Total employment Value added (factor costs Industry Services Total Industry Services Total

Consultants commercial labs or private institutes Government or public research institutes 0 0. 5 1. 0

institutions (namely R&td, higher education and vocational training institutions) who are involved in the development of the sector and region

Number of enterprises Total employment Value added (factor costs Industry Services Total Industry Services Total

Consultants commercial labs or private institutes Government or public research institutes 0 0. 5 1. 0

In 1997 the agency became a professional association of legal entities, including the Ministry of Economy of the Slovak Republic, the Slovak Association of Entrepreneurs and the Slovak

Number of enterprises Total employment Value added (factor costs Industry Services Total Industry Services Total

Consultants commercial labs or private institutes Government or public research institutes 0 0. 5 1. 0

Number of enterprises Total employment Value added (factor costs Industry Services Total Industry Services Total

Consultants commercial labs or private institutes Government or public research institutes 0 0. 5 1. 0

and to strengthen the networks that are necessary for this work. VINNOVA has a total budget of almost

new employees have been recruited in 76%of the projects (of these, 79%are employees with at least a master†s degree in

engineering); ) over 90%are planning the market introduction of a new product developed in the project

Number of enterprises Total employment Value added (factor costs Industry Services Total Industry Services Total

Consultants commercial labs or private institutes Government or public research institutes 0 0. 5 1. 0

The CTI (Swiss Federal Innovation Promotion Agency) is the most important innovation promotion government agency in Switzerland.

Among its main tasks is the promotion of entrepreneurship in the Swiss economy. The most important entrepreneurship programmes are the CTI Start-up programme and

The overall budget for the entrepreneurship promotion programme of the CTI amounts to about CHF 11 million in 2008;

selected firm variables (profit, turnover, employment growth, third-party funding and profit turnover ratio), labelled firms are performing better than non-labelled firms.

competitive position, employee satisfaction, and internal process organisation Venturelab Venturelab provides customised education tools to promote innovative young entrepreneurs and to

Number of enterprises, 2005 Total employment, 2001 Industry Services Total Industry Services Total No. firms%No. firms%%No. engaged%No. engaged

Number of enterprises Total employment Value added (factor costs Industry Services Total Industry Services Total

Consultants commercial labs or private institutes Government or public research institutes 0 0. 5 1. 0

Number of enterprises Total employment Value added (factor costs Industry Services Total Industry Services Total

Consultants commercial labs or private institutes Government or public research institutes 0 0. 5 1. 0

business experts, and there is a requirement for matching funds from the firms themselves. TIP funds cover project costs only

Number of enterprises, 2005 Number of employees, 2004 Industry Services Total Industry Services Total No. firms%No. firms

the promotion of entrepreneurship and innovation among private companies. In order to specifically target SMES, the government launched in 2007 an ambitious entrepreneurship agenda, Chile Emprende

Innova Chile, hosted by the Production Promotion Corporation (CORFO. Although it supports an ample range of

provision of seed capital, support to business incubators and spin-off projects, technology promotion organisations and development of professional training centres.

promotion of good management practices among SMES Chile Emprende Chile Emprende is targeted to existing micro and small enterprises

and provides funding to the evaluation and certification of labour skills. The execution of specific projects is made through consultancy firms and technical training organisations

employees. The industrial value added generated in these development zones accounted for 8. 95%of the

terms of employment, sales revenues and export after being funded By the end of 2006,145 provincial governments and municipal governments across China had set up

Size class of employees C. Administrative burdens on start-ups, 2008 Index scale of 0-6 from least to most restrictive

Number of enterprises Total employment Value added (factor costs Industry Services Total Industry Services Total

Consultants commercial labs or private institutes Government or public research institutes 0 5 10 15 20 25 30

Technopreneur Promotion Programme Another major public policy initiative for funding innovation is the Technopreneur Promotion Programme

Tepp) at the Department for Scientific and Industrial Research. The programme involves 20 outreach centres being set up to facilitate support infrastructure across the country for key technologies such as ICT

supports the joint work of different government institutions towards the development of innovative technology-based MSMES

work as experts. By the beginning of 2009,16 500 projects had been presented to the Foundation, and of

Size Employees Annual turnover Micro 1-15 Up to 1. 7 million euro Small 16-100 Up to 11.6 million euro

C. Growth in the number of employees in SMES 2001-2007 Thousands of people D. Barriers to entrepreneurship, 2008

these focus on improvement of research experts in the business sector. Besides the traditional programmes to support young researchers and young researchers from the business sector, the Public

Number of enterprises Total employment Value added (factor costs Industry Services Total Industry Services Total

Consultants commercial labs or private institutes Government or public research institutes 0 0. 5 1. 0

The promotion and support of micro, small and medium enterprises (MSMES) is an important policy

Technology and Human resources for Industry Programme The Technology and Human resources for Industry Programme (THRIP) is managed by the National

Research Foundation (NRF) on behalf of the Department of Trade and Industry. Firms and the Technology and Human resources for Industry Programme invest jointly in research projects where project leaders are

on the academic staff of South african higher education institutions. The programme aims to enable local industry to respond to technology needs,

to produce a flow of skilled human resources, to enhance educational experience, and to foster collaboration among industry, HEIS and science, engineering and

technology institutions. Graduates from the programme often end up employed in the industry they worked with,

P. Private households with employed persons (ISIC Rev. 3) or Activities of households NACE Q. Extraterritorial organisations and bodies

In Table A, for Number of enterprises, Total employment and Value added Industry includes ISIC Rev. 3 categories C, D, E,

and F and Services includes categories G h i and K. For Total employment and Value added

In Table A, for Number of enterprises, Total employment and Value added Industry includes NACE categories D, E,

For total employment, Industry includes NAICS 2002 categories 21,22, 23 and 31-33 while Services includes NAICS 2002 categories 42,44-45

In Table A, for Number of enterprises, Total employment and Value added, Industry includes NACE categories C, D,

E and F and Services includes categories G h i and K. For Total employment Industry and

E and F and Services includes categories G h i and K. For Total employment and Value

and F and Services includes categories G h i and K. For Total employment and Value added

F and Services includes categories G h i and K. For Total employment and Value added Industry includes NACE categories C, D, E,

In Table A, for Number of enterprises, Total employment, Industry includes NACE categories C, D, E,

In Table A, for Number of enterprises, Total employment and Value added Industry includes NACE categories D

In Table A, for Number of enterprises and Total employment, Industry includes NACE categories D,

In Table A, for Number of enterprises, Total employment and Value added Industry includes NACE categories C

In Table A, for Number of enterprises, Total employment and Value added, Industry includes NACE categories C, D, E,

In Table A, for Number of establishments, Total employment and Value added Industry includes ISIC Rev. 3 categories C

C, D and E and Services includes categories G h i and K. For Total employment and for

In Table A, for Number of establishments and Total employment, Industry includes NACE categories D

C, D, E and F. For Total employment it includes NACE categories D, E and F. For Value added

In Table A, for Number of enterprises and Number of employees Industry includes ISIC Rev. 3 categories C, D, E,

In Table A, for Number of enterprises, Total employment and Value added Industry includes ISIC Rev. 3 categories C, D, E,

In Table A, for Number of enterprises, Total employment and Value added Industry includes NACE categories C, D, E,

D, E and F. For Total employment and Value added it includes NACE categories D and F

In Table A, for Number of enterprises, Total employment and Value added, Industry includes ISIC Rev. 3 categories C, D, E,

D, E and F and Services includes categories G h i and K. For Total Employment and Value

In Table A, for Number of enterprises, Total employment and Value added, Industry includes NACE categories C, D, E,

In Table A, for Number of enterprises, Total employment and Value added Industry includes NACE categories C, D, E,

In Table A, for Number of enterprises and Total employment, Industry includes ISIC Rev. 3 categories C, D, E,

employment NACE categories C, D and F and Services includes NACE categories G, H and I

In Table A, for Number of enterprises, Total employment and Value added, Industry includes NACE categories C, D, E,

of employees, Industry includes ISIC Rev. 3 categories C, E, and F. Services includes ISIC

of overseas skilled workers are three of the main channels through which global knowledge flows can revitalise local innovation systems

As to external constraints †the second strand of the literature †heavy labour market regulations and market entry requirements are deemed traditionally to discourage

individuals, which may originate from educational background as well as past work or market experience. Past entrepreneurial experience is particularly relevant, because it

capita, with students in higher education and with employment in high-tech industries The following section provides evidence about the geographical concentration of

and skilled labour, good quality of infrastructure and other facilities, proximity to natural resources that are key to the production process, a better match between employers and

employees or buyers and suppliers, etc. It is argued here that in knowledge-driven sectors such as those falling under the broad categories of high-tech manufacturing (HTM) and

knowledge-intensive service activities (KISA), 2 local knowledge flows are among the main drivers of industrial agglomeration.

skilled human resources in the key cluster industries and strong networks (Potter and Miranda, 2009 Given the limits of official data sources for local-level analysis,

service employment is abundant (Duranton and Puga, 2005 United states Maps from the United states provide more in depth information on the location of

c) an employment growth indicator (average rate of employment growth; d) profitability (average return on total

assets); ) e) financial constraints to growth (average liquidity ratio and average solvency ratio. In the case of the US clusters, given data source constraints for this country, the composite

training or the attraction and retention of qualified labour, but is generated also by the very

intensity, basic university research and highly-skilled workers are most important. For example, in the United states, knowledge-driven industries such as semiconductors

of human resources; contribution to economic development Industry Undertake industrial R&d. Monitor research results generated by others;

employment of high-skilled workforce; co-funding of research activities Government Express strategic research interests; set up laws that enable

and iii) attraction of skilled labour. All three can contribute to the generation, transmission and exploitation of knowledge, thus increasing technological

workers and managers between companies within the local labour market are some of the clearest examples of â€oepassive†knowledge transfers.

the planned exchange of staff (secondments, mutually agreed recruitment and training, etc. or joint projects (e g. with training providers and

technology institutions OECD reviews of FDI and local development in Spain, Switzerland, Russia, Ukraine and Scotland have examined how local and regional governments and development

attraction of FDI has been combined with the promotion of local clusters by targeting FDI in those sectors where the locality has strong productive agglomerations

The attraction of foreign skilled workers Renowned examples of attractive local economies, such as Silicon valley and Austin in the

-skilled workers to stimulate entrepreneurship. But it is also important in everyday economies For receiving places, the inflow of foreign talent has positive effects on the number of skilled

workers, levels of R&d, enrolments in graduate programmes and the potential creation of growth-oriented businesses by immigrants.

capital and productive labour. However, as recent OECD work shows, qualified people can also accrue skills more rapidly abroad

and this can benefit the country of origin if they decide to return home or cooperate with the home country at some point (OECD, 2004;

A number of factors affect the ability of a locality to attract a skilled labour force.

â Spin-offs, both corporate and university-based, are an important target for promotion efforts because the internal technology and market competencies they carry from

workers of the foreign affiliate to set out their own business. As to university spin-offs the gap between technological invention and commercial innovation should be

and links to external experts (see Austria†s Country Note â Interactive learning networks boost SME innovation and need to be stimulated

linkages to more technologically advanced firms or business experts (see Australia†s Country Note â The absorptive capacity of SMES needs be strengthened

as can staff exchanges and secondments. The voucher scheme implemented in The netherlands is an example of an innovation-purchasing initiative that has enabled SMES to take a first

â Labour mobility accelerates knowledge flows within an innovation system â More generally, labour mobility within an innovation system should be promoted as a

tool enabling local knowledge flows and spillovers via the transfer of skills and experience, although marked inter-firm labour mobility can deter private investments

in training, especially in SMES. University-industry staff exchange programmes should also be considered, although rigid university employment practices and the very

university incentive structure (e g. the pressure to publish on peer review journals) can render this specific type of labour mobility difficult

â Promote cross-fertilising technologies with multiple industrial applications â Considering that every technology implies several possible entrepreneurial

traditionally been at the forefront in the promotion of cutting-edge and cross -SMES, ENTREPRENEURSHIP AND INNOVATION Â OECD 2010154

of highly-skilled foreign labour Notes 1. Innovation systems may also have a sector dimension, and part of the literature is devoted to

OECD (2002), High-growth SMES and Employment, OECD, Paris OECD (2004), Global Knowledge Flows and Economic Development, OECD, Paris

than ten employees may be excluded largely from this database The value of the ORBIS database for territorial analysis rests on the possibility to

â Economic performance indicators, e g. labour productivity; turnover per employee growth rates according to turnover, value added or employment;

productivity growth â Profitability indicators, e g. profit margin; return on capital employed; return on total assets, etc

While economic performance and profitability indicators can be calculated from the ORBIS database at different levels of industry or geographical breakdown using standard

distribution of key economic variables (number of firms, turnover, employees, value added by classification variables (economic activity, firm size and location.

analysis. For instance, some key economic indicators, such as labour productivity or firm profitability, can be expected to be correlated with company characteristics such as legal

Dynamic territorial indicators, such as employment or labour productivity growth rates in a given period, present particular characteristics in terms of potential sources of

discussed are the roles of tertiary and school education, vocational training and the use of knowledge-intensive service activities and small business support in the

Also in the case of workers in existing SMES, data confirm the existence of a skills and training problem holding back innovation.

OECD countries, employees of SMES participate in formal training activities to only half the extent that staff in large firms do (OECD, 2010b, forthcoming.

Hence, formal skills and training policies have only a poor reach into the SME sector. Even informal competence

-building measures have little take-up among low-skilled SME workers In the future there will be a need for new types of skills matching new types of jobs, as

working environment. There are three broad skills categories: basic, advanced and converging Basic skills are those more generic and routine skills found in occupations present in most

social and communication skills needed for team work, and specific language and cultural skills that are of growing importance in certain multicultural working environments

Converging skills require several of the other skills plus skills specific to entrepreneurship, or for

ICT professional skills, research skills (e g. work developed by engineers, researchers, marketing professionals) and drafting skills

Management Skills for business planning, regulations and quality control, human resources planning (recruitment training and skills development) and allocation of resources (e g. management of intellectual property

financial management, firm health and safety operations Social and communication Motivation and appreciation of people†s characteristics for working individually and in teams;

skills needed in a working environment. The skill to cooperate for success involves the capacity undertake successfully the following activities

(and unlearn) from life situations inside and outside the work environmen Source: Adapted from Green et al.

However, it is argued often that the working environment rather than formal education is where â€oeentrepreneurs†learn the most.

education, vocational education and schools) and in work environments (focusing on informal entrepreneurship learning at work through the involvement of workers in

knowledge-intensive service activities and entrepreneurship training by SME support organisations Universities and higher education institutions Entrepreneurship teaching

) The work found that on average, the US universities were strongest on these five dimensions, although Canada performed equally well in terms of educational scope and

basis for recruitment and promotion †and those not working on core activities can find it

enterprise start-ups by students and staff. Indeed, entrepreneurship teaching can have a greater positive impact on the rate of new firm creation

The work has developed also a criteria list of good practice across the six dimensions from

4. Recruitment and career development of academic staff take into account entrepreneurial attitudes, behaviour and experience as well as entrepreneurship support activities

1. A minimum long-term financing of staff costs and overheads for graduate entrepreneurship is agreed as part of the university†s budget

3. Human resource development for entrepreneurship educators and staff involved in entrepreneurship start-up support is in place

widely used to prepare future self-employed entrepreneurs and SME employees Vocational training colleges have had traditionally a craft focus.

Many of the craft occupations are pursued in practice by the self-employed and people working in micro businesses, for example plumbers, painters, electricians and information technology

Other people go on to work in larger SMES and may benefit from training provided before employment or in lifelong learning activities whilst in employment

In addition to courses entirely taught in vocational education institutions, an important element of the system is apprenticeships,

where the trainee is based mainly with an employer. Apprenticeship programmes are widespread, with countries like Denmark

Australia, Germany and France often being referred to as good practice. Apprenticeships combine classroom teaching, often in vocational training institutions, with on-the-job

training. In France, for example, since 1925 firms have been obliged to pay an apprenticeship tax (0. 5%of the payroll), up to 40

%of which is earmarked for apprenticeships. All firms apart from those employing apprentices) pay this â€oeapprenticeship tax†(Stone and Braidford

2008). ) Germany furnishes a second example †there the VET dual system includes on-the-job training or in-company training combined with part-time vocational school training.

Since 2002 the demand for apprenticeship positions has exceeded constantly their supply, both in eastern and western Germany (Zwick, 2007.

The German model is considered effective contributing to innovation by nurturing the skills needed by the firms.

As a third example Box 4. 2. Entrepreneurship support in universities: Criteria for good practice cont

4. The suite of courses has differentiated a offer that covers the pre-start-up phase, the start

For certain courses active recruitment is practised 5. Out-reach to alumni, business support organisations and firms are a key component of

2. Team building is facilitated actively by university staff 3. Access to private financing is facilitated through networking and dedicated events

the â€oeaustralian Apprenticeshipsâ€, bring together the traditional apprenticeship and the traineeship systems. This initiative has been especially successful,

escalating from about 120 000 apprentices in 1995 to over 400 000 by 2003. The numbers in Australian

Apprenticeships represent 3. 5%of the working population, one of the highest rates of contracted training in the developed world.

One reason for the success of these programmes is financial incentive from federal and state governments.

These incentives bring employer commitment to the system; they also create and fund intermediary bodies such as Group

Training Organisations and New Apprenticeship Centres, rather than leaving the â€oeselling†of the programmes to training providers (Smith and Smith, 2007

Traditional apprenticeship programmes aim to train skilled employees and do not explicitly train entrepreneurship skills, however,

and would need to be expanded to impart entrepreneurship skills in a wider sense Interaction with vocational training institutions tends to be more important for skills

development in small firms than in larger ones, since the latter can often afford to run

their own apprenticeship programmes. However, improving entrepreneurship skills in SMES through vocational education and training is challenging due to obstacles to SMES in

Schemes such as training leaves are not fully taken up by employees. Participation in voucher-type schemes is high among employees, but on

average only 50%of the amount of finance available for training is used and there is a low

participation from micro and small enterprises and from unskilled, semiskilled and older employees. Training packages and apprenticeship schemes have been very successful in

some countries as employers use the national qualification system to upgrade the skills of their workforces.

However, in general, voluntary policies have had greater success than compulsory measures (OECD, 2010a, forthcoming It is clear that incentives for training are needed often to engage small businesses owners

and self-employed people. It can be argued that this reflects an inappropriate training supply in vocational training institutes which is designed too often around conventional norms of

business management education and not enough around the motivations of entrepreneurs Gibb (2009) argues that a distinction must be made between manager development as

traditionally exercised by vocational training colleges †a teaching de-contextualised from developing the individual †and management development,

policy measures should target both workers and enterprises, not providing financial incentives alone but also allowing freedom of choice and market transparency

objectives and information to both employers and employees and provision of standardised accreditation Another step that can be taken to fit the vocational training offer more closely to

what is demanded by SME managers is the introduction of â€oeinnovation bootcampsâ€. This might involve a series of engaging online

more likely to find employment and have enhanced social psychological development (self esteem, self efficacy, etc.

and all have staff with responsibility for delivering enterprise in education. An annual reporting process ensures examples of good practice can be

â have knowledge and understanding of the nature of work and social and economic enterprise

â understand the roles, rights and responsibilities of individuals as employees, managers employers, entrepreneurs, investors, customers and global citizens

â are willing to take responsibility for and accept the consequences of their own actions â understand the positive and negative contributions of technology and business to

â have an understanding and appreciation of the world of work, the value of different

Examples are regular programmes to train new employees or potential team leaders and project management and foreign language language training (Markowitsch

Across the EU-15 countries, data from the Eurostat Continuing vocational training Survey show that employees in enterprises with less than 50 employees receive

significantly less in-company training than employees in larger firms. This remains true in countries reputed for their high levels of training culture such as Denmark, the

Netherlands, Norway and Sweden. In terms of annual volume of hours spent by employees in training, the average in firms with less than 50 employees is about half that of large

firms with 1 000 employees and more, and about two-thirds of the average of all firms.

In some countries a relatively high proportion of small firms with between 10 and 49 employees provide some formal training for their employees:

Denmark (48%),Finland 38%),The netherlands (36%),Sweden (51%)and the United kingdom (35%),but even here

the participation rates are much smaller than for larger firms (Denmark 56%,Finland 62 %The netherlands 42%,Sweden 68%,United kingdom 52%.

countries for large firms of at least 1 000 employees is much higher (Greece 33%,Hungary

younger, better educated workers in high-skilled occupations (such as managers, professionals and technicians) have greater access to

training opportunities than less-educated older workers and workers involved in routine tasks (OECD, 2003; 2008a

One of the reasons that SMES undertake less formal training than large firms is cost

The result is that employees of small and micro firms can miss out on any type

employee-driven learning and trial-and-error behaviour can obviously be detrimental to both the firm and the employee

SMES, ENTREPRENEURSHIP AND INNOVATION Â OECD 2010176 4. ENTREPRENEURSHIP SKILLS SMES, however, can be highly innovative,

entrepreneurial skills can be acquired through in-house team work for development of a new product. They may also be acquired

This provides an opportunity for employees to learn from others in different companies. In addition to enhancing SMES€ efficiency, innovative potential and growth

a high knowledge component, undertaken in collaborations between SME employees and external professionals or in SME employee work groups (OECD, 2006;

Martinez-Fernandez and Martinez-Solano, 2006. At the heart of this are knowledge intensive service activities

consultants, clients and suppliers in the firm†s network and/or value-chain, which could

professionals introduce their embedded knowledge to the SME and work with its employees in pursuit of new or improved solutions to current needs of the firm †at the

same time increasing the skills, knowledge and competencies of employees in significant ways. SME work with external KISA suppliers is important because the professionals

brought in apply their expertise to the management of increasingly complex technologies, rapidly changing operational environments and evolving business

concepts (OECD, 2006, p. 47. This results in â€oeco-production of knowledge†by the different workers involved, constituting a critical nexus of today†s networking economy

Alternatively, internal projects can be undertaken, for example to improve work processes (such as quality control, marketing and product development) with SME

employees learning from or together with their co-workers. Many entrepreneurship skills are acquired in the process of knowledge co-production;

they range from analytical and problem-solving skills to creative thinking to integration of technical knowledge.

related to work that are organised not in terms of learning objectives, learning time or learning support (CEDEFOP, 2008b

learning resulting from daily activities related to work, family or leisure. It is organised not or structured in terms of objectives, time or learning support.

attention of policy makers has tended to be on the contribution of knowledge workers to entrepreneurship and innovation.

workers can also make an important contribution to transforming SME activities to a context of increased knowledge intensity and innovation activity.

moving towards recognising the important contribution that routine workers can make both in innovative outputs and in skills acquisition for the firm.

Metal Products†(an Australian SME specialised in metal work and machinery) involves floor workers with engineers in activities oriented to find new uses for old machinery

The skills acquired in the process range from analytical, problem solving and communication skills to creative thinking and integration of technical knowledge

Although not formally recognised by standard qualifications, such skills constitute a competitive advantage for these routine workers in the labour market.

Working with engineers also helps routine employees to further analyse their own activities and how they can better be performed (Martinez-Fernandez, Receretnam and Sharpe, 2007.

These types of KISA †that act as a specialised â€oeservice†for the firm and where the component

and by employees usually classified as working in â€oelow -knowledge intensity†tasks KISAS are still a relatively unexplored area despite their importance to the new

interactive skills required in the work place. Further development is needed, especially in the context of the new green growth economy and in occupations that depart from

previous rigid conceptions of job profiles (Miles et al. 2008). ) Engaging with KISAS is a way SMES acquire knowledge and new entrepreneurship skills through formal (contractual

fuel innovation and growth of the firm and employment. These activities are largely performed in-house with external actors such as business consultants or other

professionals from the SME€ s network and/or its value chain. As KISAS are undertaken to

and impact on skills upgrading and employability of the labour force. Entrepreneurship policies should pay more attention to this way of developing

training gave to novice entrepreneurs to discuss work problems and test out solutions with real entrepreneurs and experts

SME management training According to a European commission document on management capacity-building policies for SMES, a common issue throughout Europe is that an overwhelming majority of

provided for owners and managers of independent enterprises with 250 employees or fewer, and at least partly funded by the organisation†(OECD, 2002, p. 6

It involves internal or external consultants that work with the business owner or managers to think about processes, business models or solutions to specific problems.

such as financial, marketing, legal, personnel development, training, recruitment and business management services. Examples from this group include the provision of

employers, industry representatives, unions, labour market and training intermediaries temporary work agencies and group training companies), local and regional government

agencies, and community representatives. Governments have a critical role to play as catalysts here, providing an appropriate policy context and support for the resources

Although training can in principle be provided by experts from other countries or regions, it tends to be seen as a local resource by both enterprises and employees.

This, and the positive effects of local networks and connectivity in achieving the vitality of local

with opportunities to work in existing SMES and to add value to these firms through

Agriculture, works to meet the training demand of its 325 000 registered enterprises. The institutional task is to contribute to the development of an entrepreneurial culture, building on

development †training programmes for owners, managers and consultants in business planning, financial services, ICT and marketing

â Adult learning and links with the labour market â Regional development, including capacity building for Business Support Providers (BSPS

and SME development agency staff â Public administration SMES, ENTREPRENEURSHIP AND INNOVATION Â OECD 2010 181

both workers and enterprises; limit administrative burdens; increase transparency and clarity of objectives and information to employers and employees;

give standardised accreditation â Embed an entrepreneurship mindset through the school education system â Develop the training function of small business support programmes including

â Use these and other approaches to support the integration of new employees and the

increase apprenticeships in SMES since they are ideal for entrepreneurship skills development â Increase the use of informal learning sources

engagement of employers, unions and individuals, such as in programme design and management SMES, ENTREPRENEURSHIP AND INNOVATION Â OECD 2010182

CEDEFOP (European Centre for the Development of Vocational training)( 2008a), Future Skills Needs in Europe: Medium-term Forecast, Office for Official Publications of the European communities

Skill Ecosystemsâ€, Journal of Industrial relations, Vol. 48, No. 5, pp. 575-592 Henry, C.,F. Hill and C. Leitch (2003), Entrepreneurship Education and Training, Ashgate, Aldershot

Supported by Apprenticeship Training as a Context for Learning†in M.-L. Stenstrã m and P. Tynjã¤lã

), Towards Integration of Work and Learning: Strategies for Connectivity and Transformation, Springer United kingdom, pp. 153-170

OECD (2003), OECD Employment Outlook, OECD, Paris OECD (2005), SME and Entrepreneurship Outlook, OECD, Paris

-L. and P. Tynjã¤lã¤(2009), Towards Integration of Work and Learning: Strategies for Connectivity

Stone, I. and P. Braidford (2008), Engaging Employers in Continuing Training: An International Review of

15 000 social enterprises employing 350 000 employees, serving 5 million users and with an economic turnover of EUR 10 billion

11 million paid employees, equivalent to about 6%of the working population of the EU These aggregates underline the fact that this is a reality

datasets on nonprofit organisations, including data on nonprofit finances, employment and wages, and volunteering. The website of the project (www. ccss. jhu. edu

â€oenonprofit employment is much larger than expected and much more widely dispersed outdistancing many major industries in its contribution to state employment and payrolls

Nonprofit employment is dynamic, growing more rapidly than overall employment Nonprofit employment is spreading to the suburbs and rural areas;

Nonprofit wages actually exceed for-profit wages in many of the fields where both sectors operate;

Despite their growth, nonprofits in many states are losing †market share†to for-profit firms in

many fields where both sectors are operating. †To complete the overview and to have an idea of the economic weight of cooperatives in

would train the childcare workers, guaranteeing quality standards; Bancaprossima grants loans with no personal guarantee required.

Moreover the cooperative aims at employing local disadvantaged workers, thus contributing to the local employment of individuals from groups who may find it difficult

to get jobs. And it is inserted into a network of other cooperatives and the local

workers in service delivery areas Financially supported by local credit cooperatives, other cooperative support organisations and small contributions from local residents, the Health and Social Care

is the capacity-building opportunities offered to healthcare workers and scientists, with a possible further impact on economic development

capacity by training healthcare workers and scientists in clinical drug development, which in turn stimulates new avenues of economic development

and (limited) voluntary work, they can provide services at a lower, more affordable, price SIEL Beu (Box 5. 6) is a French social enterprise promoted by Ashoka, an organisation

physical activities in the workplace demonstrates the importance of the services it delivers. Focusing on preventative health has the result of reducing public spending on

and employment project based in the inner city area of Easton in Bristol, England. This innovative social enterprise (a

workplace, or move on to self employment. The positive results gained from its work with women across Bristol have led to the project†s longevity:

Silai for Skills has been in operation for 19 years. Women of all ages, backgrounds and skill levels are welcome, and

job applications, the project offers information, advice, and guidance services free of charge to all (students and non-students alike

In 2000, the Local Economic and Employment Development Committee (LEED) of the OECD provided a definition of social innovation, in the framework of its Forum on Social

which works as a training department for healthcare professionals working with the elderly. There is also GPS Santã, a commercial venture

workers through regular physical activity exercises in the workplace With the help of strong national and local networks and allies, SIEL Bleu has been able to

-trained staff. Partnerships have been built with The french government authorities and ministries such as the Department for the Elderly and Department of Sport.

but is unable to pay for them, the association works with the person to reach a compromise

identifying and implementing new labour market integration processes, new competencies, new jobs, and new forms of participation,

individuals and communities through employment, consumption and/or participation, its expressed purpose being to provide solutions for individual and

sustainable employment, provision of services of general interest and so on. The local authorities play a direct role here in the local development dynamics by supporting

or youth unemployment or environmental sustainability, are other examples of the different levels at which social innovation can be achieved

conservation, international labour standards, socially responsible investing, supported employment (for disabled and disadvantaged workers) and individual development

accounts are all examples of recent and important social innovations (Phills, Deiglmeier and Miller, 2008.

Programme workers also maintain close personal contact with clients to provide counselling and encouragement. The programme sponsor is responsible for

commercialisation (fairs, solidarity shops/stores) promoting local job creation and income generation The Palmas currency is accepted by 240 businesses,

employees who live in the neighbourhood Aside from the currency, the Palmas Bank seeks to engage with communities†needs by initiat

meeting gathered a number of experts and social innovators, and concrete examples of existing social innovations were discussed.

The work of The Lab is divided into three distinct parts Challenge Lab looks at the contribution innovation can make to services, with an initial

and Learning Lab seeks to disseminate what works and what does not work (www. nesta. org. uk

and job creation through the annual inclusion of 1 000 qualified young people in social economy institutions

reference, for example to encourage the employment of long-term unemployed or disadvantaged people. Involving social enterprises in public service delivery can bring

as self employment, a new enterprise, or the expansion of an existing social enterprise by an individual

â identifying and implementing new labour market integration processes, new competencies, new jobs, and new forms of participation,

community through employment, consumption or participation, its expressed purpose being therefore to provide solutions for individual and community problems. â€

2007 Social innovation â€oecan simply be understood as †new ideas that work which address social or environmental

atypical employment and involvement in governance, mixing voluntary and paid employment, as well as new market relations such as the changing welfare mix,

invention, which are vital to innovation but miss out the hard work of implementation and diffusion that

Social innovation refers to new ideas that work in meeting social goals Defined in this way the term has, potentially, very wide boundaries †from gay partnerships to new

for-profit businesses innovating new approaches to helping disabled people into work But these definitions provide a reasonable starting point

factors such as atypical employment and involvement in governance, mixing voluntary and paid employment, as well as new market relations such as the changing welfare mix,

or new legal forms such as the social cooperative in Italy which encourages entrepreneurial and commercial dynamics

â Secure conducive conditions for both high-employment-growth firms and innovation in the bulk of n

between SMES and foreign direct investment ventures and attracting highly-skilled labour from abroad 3. Strengthen entrepreneurial human capital

â Reinforce training in SMES by launching in-company projects, increasing SME apprenticeships a developing the training function of small business support programmes,

greater engagement of employers, unions and individuals involved in new and small firms with lo

but also social and communication skills related to team work and language skills Basic skills Generic and routine skills found in occupations present in most industries and

business management and human resources and some specific skills related to risk assessment and warranting, strategic thinking and the ability to make the most out of

of skilled workers about where to live and work. These factors can include tolerance towards diversity, active cultural life, large green spaces, presence of recreational

universities, colleges, employment agencies, unions and training organisations /associations, and are supported by integrated policy approaches to skills development

employees. This number varies across countries. The most frequent upper limit designating an SME is 250 employees,

as in the European union. However, some countries set the limit at 200 employees, while the United states considers SMES to include firms

with fewer than 500 employees. Small firms are considered generally those with fewer than 50 employees and micro firms have at most 10 employees.

Financial information on turnover or balance sheets can also be used to define SMES Social economy The ensemble of entities that explicitly have both an economic and a social mission

These can include associations, cooperatives, mutual organisations, foundations and more recently social enterprises. This type of economy is regulated essentially by the

bring innovative solutions to problems such as social exclusion and unemployment through the production of goods and services.

often provide personal and welfare services and training and integration into employment of persons excluded from the labour market

Social entrepreneur A person who recognises a social problem and uses entrepreneurial principles to organise, create and manage a venture to make social changes.

competencies, jobs and forms of participation in the labour market, each of which contributes to improving the position of individuals in the workforce

A new firm that is created by a former employee of a company (i e. corporate spin-off

Technopreneur Promotion Programme Indonesia Innovation Centre for Micro, Small and Medium Enterprises Israel Incubator programme

Technology and Human resources for Industry Programme Notes on the Country Data Chapter 3. Knowledge Flows

The attraction of foreign skilled workers Conclusions and policy recommendations Key policy recommendations Notes Bibliography Annex 3. A1.

< Back - Next >

Overtext Web Module V3.0 Alpha
Copyright Semantic-Knowledge, 1994-2011