The ICT innovation voucher aims to support micro-enterprises and SMES to use digital technologies to innovate and increase
business models Each scheme is tailored not only to the regional situation but is designed also in such a way as to be easy for
Micro-enterprises and SMES benefitting from a voucher can exchange the latter against ICT services, including
services from private companies, universities, research centres and other accredited ICT knowledge and service providers.
The voucher provides the company with easy access to specialist services, such as creating a business website and using it profitably,
Some of the Innovation vouchers'programme managers took the opportunity to share their experience as
from senior officials from the Health Services Executive, the Department of health and Children, the Department of Finance and the Health Information and Quality Authority
and Enterprise Ireland, BT and Microsoft for the provision of physical and electronic facilities to support the activities of
easily accessible integrated health services, centred around the patient who moves seamlessly from primary care to acute hospitals and back again.
investing to improve our ICT capability is now more important than additional investment in clinical facilities
-rata basis, the sheer scale of the opportunity becomes clear. As examples, we could achieve
made possible through ICT investment in areas which have a well-proven business case, such as Electronic Transfer of Prescriptions, Clinical Decision Support, Electronic
investment in, and our effective use of ICT. The HSE needs to focus on a structured
some areas to reduce the upfront investment cost to the HSE Investing for a potential 400%return
As an indication of the scale of the investment, in order to bring Ireland to a median
additional investment will enable the implementation of a wide range of patient care and administrative applications delivered via a robust and secure infrastructure.
experience indicates that the breakeven time for the individual investments in such a programme will vary from less than 1 year to 5 years.
Commission study2 indicates a typical lifetime Return on Investment of 400%for advanced Healthcare ICT systems
we maximise the return from the high levels of investment involved, clear focus will be required on the definition and quantification of objectives, programme management and
The positive participation of all stakeholders is essential and the introduction of financial incentives may be required to ensure such participation.
•As part of the move towards a smart economy, the government directs Enterprise Ireland to establish a healthcare technology cluster.
The government should also ensure that the public procurement process encourages R&d, experience-building and knowledge-sharing within SMES, for example by
healthcare services and healthcare ICT systems for the global market. In this way we will establish valuable assets for the new smart economy
ICT€ s Role in Healthcare Transformation Report of the Health ICT Industry Group Page 6
cancer services are reaching world class standards with increasing survival rates. The substantial progress achieved has recently been indicated in the Euro Health Consumer
European health services reviewed. However in some fundamental areas we lag behind our European peers.
effort to manage the growth of private healthcare services. In the U s. the Obama administration is locked in a bid to expand America†s public healthcare
and opportunities for economies of scale have been missed. The change of focus from Acute to Primary care has been slow, with few Primary Care
The economic downturn has exacerbated the existing financial crisis across the HSE. We have evolved as one of the most expensive health service in the
Opportunities for shared services have not been exploited, with excessive levels of staffing across multiple procurement offices, labs and other facilities.
Tracking of resource utilisation has been a huge problem in the multifaceted world of the HSE and is currently being addressed by
Entry (CPOE), also known as Order Communications, and a Unique Health Identifier systems that have delivered well-documented results in other jurisdictions through
investment in Healthcare ICT is more important than additional clinical facilities ICT€ s Role in Healthcare Transformation
enterprises such as airlines, insurance and banking, the transformation needed cannot take place without significant investment in ICT and the co-requisite business process
re-engineering. ICT is the key enabler to a successful transformation which will meet the requirements of all the stakeholders-patients, professionals and taxpayers
The urgent need to address the ICT deficit and the potential benefits of new applications
challenges include funding the investment, effective process re-engineering, systems implementation, and the HSE€ s capacity to absorb
education and improvement, engaging all stakeholders in the planning and delivery of healthcare services, and providing easier, faster and more equitable access to safe
medical care. High level targets are usually set, and indicators are put in place to measure progress towards a future of better health outcomes at a sustainable cost
â€oeeverybody will have easy access to high quality care and services that they have confidence in and staff are proud to provideâ€
The expectation that citizens have of healthcare services continues to rise, and steps need to be taken to understand
and respond to these demands. Advances in medical science, especially in the areas of diagnostics, therapeutic medicines and surgical
At the same time, the adoption of mobile and digital services in other areas of life will cause many to question why they have to travel to obtain medical care,
At home, in a GP surgery, in an A&e department or hospital ward, patients will demand to be treated with dignity and respect.
demands, delivering a better patient experience, fewer unplanned demands on clinical resources, and a more satisfying work environment for the staff.
Such a system should ICT€ s Role in Healthcare Transformation Report of the Health ICT Industry Group Page 10
†Effective†is about providing services based on scientific knowledge, also known as evidence-based medicine. The online availability of systematic reviews of medical
which use graphics to aid communications. Geographical challenges can be overcome by emerging ehealth innovations such as telemedicine for remote consultations
healthcare improvement, efficiently and effectively meeting the increasing demands of stakeholders in the healthcare environment, patients, professionals and funders.
Several of these are outlined in the sections that follow. While this list is not exhaustive, we
organisations, allowing stakeholders in the patient†s health to access this information remotely. Access to this information allows for continuity of care between different care
Communications, is defined as the computer system that allows direct entry of medical orders by the person with the licensure and privileges to do so.
in highly integrated environment can often be found embedded in systems such as Patient Portals, Self service Applications and Personal Health Records
Telemedicine consists of a series of technologies that enable care services to be provided remotely.
authorities have achieved large benefits from the investment and utilisation of ICT. They have driven improvement in patient care and satisfaction;
staff and equipment) and leveraged additional benefit from existing ICT investments. A small number of these are described now
clinical care environment, the hospital†s clinicians are making more informed decisions about patient care, creating better,
identification of opportunities for clinical, operational, financial and regulatory improvement ICT€ s Role in Healthcare Transformation
Transition from a reactive to a pro-active system better communications Sharing of bed management information for all locations, reducing the need for â€oewalk
Denmark wanted to increase communication between its various public and private healthcare providers, including GPS, pharmacies, hospitals and clinics.
Enterprise-wide collaboration software Overview The Secretaria Municipal de Saã de de Belo Horizonte (SMSA-BH), reorganised its
citywide health services and defined nine health districts that each serve a certain geographic, population and administrative space.
other for quick questions or opinions in a secure real-time environment. For more -ICT€ s Role in Healthcare Transformation
are the indirect benefits to The irish economy through the positioning of healthcare ICT as key component of the development of the †smart†economy
6. 1 Direct Benefits ††The Patient and the Individual†The purpose of this section is to position Information technology in the context of the
services in the patient's home through home health monitoring â â â Availability of entire
over 700,000 extra bed-days, resulting in potential opportunity savings of almost â 300 million.
-days, resulting in opportunity savings of over â 131 million ICT€ s Role in Healthcare Transformation
patients by almost 2. 8 million every year, resulting in opportunity savings of over â 460
This in turn could result in potential opportunity savings equivalent to nearly â 3. 7 billion. In The netherlands alone, 560,000 bed-days could be made available
through the same technology, equalling potential opportunity savings of up to â 600 million Increasing Availability of Secondary Care Appointments through Electronic Appointment
by 600,000, implying a potential opportunity saving over â 130 million Reduction in Waiting Times through Electronic Appointment Booking
39,000 reaching opportunity savings of over â 110 million through EMR with CDMS 6. 1. 7 â Diagnostics
Chronic Disease Management capabilities and communication with their physicians through a Patient Portal ICT€ s Role in Healthcare Transformation
As, with government encouragement, the HSE increases its investment in Healthcare ICT, and systems progressively go into operation,
Co-requisite with the investment in new ICT systems will be the task of process transformation within the HSE.
and will create an environment where willingness to adapt will bring demonstrable benefit to those involved
measure, monitor and forecast future healthcare demand Increased perception of value delivered from the healthcare service:
more effective delivery of high calibre services from the overall investment in our health service, the ICT-enabled improvements will enhance the reputation of the service in the
and may also provide a better environment to help tackle community programmes relating to lifestyle and behavioural illness
6. 2. 2 Indirect Benefit to the Economy In addition to the benefits which will accrue to the indigenous health service, indirect
benefits can be generated for the economy as a whole. Healthcare is increasingly becoming an internationally traded service, where countries may be either net providers
or consumers of medical services, depending on their capabilities and capacities Clearly one of the factors that will influence Ireland†s reputation in those markets is our
environment, Ireland has a tremendous opportunity to exploit multiple opportunities in these international markets. Our enhanced reputation will
healthcare services to the rapidly growing international market Stimulate direct job creation and business opportunities: Provide a stimulus to the
70,000 person, â 20bn ICT industry by protecting and increasing high-value jobs in the
Attract large Healthcare ICT investments to Ireland: Position Ireland with clear demonstrable capability in a strong and vibrant healthcare ICT cluster, helping attract
further inward investment and support the development of the smart economy Achieve a leadership position in Healthcare ICT:
for a new growth engine within the smart economy In order to prepare for this journey we make the following nine recommendations
•As part of the move towards a smart economy, the government directs Enterprise Ireland to establish a healthcare technology cluster.
The government should also ensure that the public procurement process encourages R&d experience-building and knowledge-sharing within SMES, for example by
healthcare services and healthcare ICT systems for the global market. In this way we will establish valuable assets for the new smart economy
ICT€ s Role in Healthcare Transformation Report of the Health ICT Industry Group Page 30
European commission on boosting ehealth investment, Alexander Dobrev, empirica, Germany Tom jones, Tanjent, UK, Veli N. Stroetmann, Karl A. Stroetmann, JÃ rg Artmann, Anne Kersting
IT for Healthcare, Market Trends, Nov 2008, Enterprise Ireland Euro Health Consumer Index 2009 Report, Arne Bjã rnberg, Ph d.,Beatriz Cebolla Garrofã
The Economics of IT and Hospital Performance, 2007, Pricewaterhousecoopers ICT€ s Role in Healthcare Transformation
continues to evolve in line with a rapidly changing global economy This paper will offer a comprehensive assessment of Italy†s external competitiveness
perhaps be augmented in the context of an increasingly integrated global economy. The following sections will then focus on the evolution of Italy†s export share;
Over the past two decades, discussion of the Italian economy has centered increasingly on the key themes of weak growth and competitiveness.
has produced a stagnant economy and a labor market in which average earnings are largely decoupled from productivity and demand conditions.
With Italian trading partners introducing productivity-enhancing reforms, and with the historical escape route of
which has weighed down on investment, confidence and growth Manasse, 2013 Against this backdrop, however, Italian exports have
in the face of depressed global demand has underscored the continued adaptability and resilience of Italian
coinciding roughly with the information and communications technology (ICT) revolution (Bank of Italy, 2009. This latter development has often been
For Italian firms facing increased cost-based competition from emerging-market exporters the former has perhaps become more and more important
and adapt to a changing global environment. Although the economy as a whole may have faced difficulty integrating and exploiting new technologies to
boost performance†reflecting perhaps a broad range of structural and administrative impediments†it may be that Italian exporters have had better success. To this end, the
The Conference Board, Total Economy Database 6 0 %20 %40 %60 %80 %100 %1995 2007 2011
Using a total-economy ULC-based measure, Italy†s competitiveness appears to have deteriorated by up to 5 percent
technologically competitive economy. As a sign of deteriorating competitiveness, therefore such cost-based measures may tend to overstate the problem.
-assembly services, which form only a small portion of the iphone†s final price. Accounting
range of a country†s factors of production. A similar approach addresses the same issue by instead modifying the standard price-based REER approach,
that reflects the role of outsourcing in offsetting the impact of domestic factor-price inflation
price competitiveness of a country†s gross exports, rather than its factors of production For Italy, the differences between these alternative supply-chain measures are illustrative
low-cost imports from low inflation countries Interestingly, Germany presents the opposite picture. The sharp increase in competitiveness
countries with relatively high inflation Looking at a wide range of indicators therefore, the competitiveness challenge in
competition by upgrading the quality of their products. Past Fund Staff research has emphasized the important role of non-price
In a stable world economy, changes in competitiveness might indeed be captured by changes in relative prices.
In an evolving global economy, however, a country†s competitiveness may also reflect the ability of its exporting firms to adapt successfully to a
changing external environment; upgrading the quality and composition of their export mix 4wto/UNCTAD relative unit-value data is available at:
generally managed to orient its exports to markets with a rapidly expanding demand for imports, while its product mix has been biased towards products where growth has been less
impediments that have helped stifle growth in the broader Italian economy; and which are now weighing even on this once-dynamic sector.
detail, a comprehensive treatment of Italy†s main economy-wide bottlenecks is provided in the most recent
. and P. Howitt, 2009, â€oethe Economics of Growth, †(MIT Press Bank of Italy, 2009, â€oereports on Trends in the Italian Productive System, †Occasional Paper
French Exports in the Turmoil, †Journal of International Economics Elsevier, Vol. 87 (1), pp. 134†46
Ministry of the Economy and of Finance Crafts, N, . and M. Magnani, 2011, â€oethe Golden age and the Second Globalization of Italy, â€
Globalised Economy, †Occasional Paper Series, No 94,(European central bank 22 Eichengreen, B.,2011, â€oethe Big Cannoli, †Euro Intelligence, October 17, 2011
Centre for Economic policy Research Pavitt, K.,1984, â€oesectoral Patterns of Technical Change: Towards a Taxonomy and a
Innovation in information and communication technology has a great potential to create large impact on modern healthcare.
To ensure the adoption of new healthcare services, the new innovative technologies need to be complemented with new methods that can help patients
The high bandwidth connectivity provided by the Internet enables new services to support citizens in their daily lives.
An important category of these services is healthcare services. The first examples of these services already exist today, and soon
new services will emerge offering increased sophistication and improved but cheaper healthcare. An exponential growth of these services is expected, due to two tenden
-cies. First, demand for care and cure will increase over the next decades caused by the
ageing population (within 40 years, one in every four people will be over 60. Sec -ondly, the number of healthcare workers is expected to diminish relative to the total
population (without changes to the healthcare system, 25%of the working population would be needed to provide today†s level of care by 2040 in a typical western coun
-try). ) New ICT supported healthcare services can overcome this problem by allowing people not to rely only on traditional care.
However, to ensure the adoption of new healthcare services, the new innovative technologies need to be complemented with
new methods that can address related ethical and societal issues A good example is home healthcare.
Current home healthcare services are rudi -mentary in nature. Often they rely on call centers or nurses visiting the patient while
-tion of healthcare services by clients (patients), by caregivers and by the parties that are financially responsible
healthcare services. Home healthcare services aim to support people who are chroni -cally ill or who are rehabilitating.
These services gather patient†s sensitive infor -mation that is then interpreted by medical professionals to manage their diseases.
The adoption of such services, however, hardly relies on the patients†trust in a healthcare
service provider in terms of privacy of the data chain and physicians†trust in the reli -ability of information and data contributed by patients.
ï How can patients use home healthcare services while ensuring their privacy and controlling the use of information in a simple intuitive way
services. Section 4 discusses trust management for home healthcare services. Finally Section 5 concludes the paper providing directions for future work
2 ICT innovation in Healthcare The advance of ICT technologies is leading to the design of novel electronic
healthcare services that improve people†s health and well-being but also extend be -yond the individual towards sustainability of our society.
stay at home), and provide faster and cheaper healthcare services. On the other hand they are exposed to different security and safety threats as the patient is far from
3 Trusted Healthcare Services Electronic healthcare services offer important economic and social benefits for our
society. Patients rely on these services for their safety and care and for improving their quality of life.
For physicians, electronic health and wellness services offer sup -port for providing more effective and continuous Care for insurers and governments
these services bring a reduction of costs, and for commercial service providers, this is a new business opportunity.
However, electronic healthcare services cannot be ex -ploited until the trust question has been addressed in a fundamentally correct way
Indeed, trust is a prerequisite for the acceptance of these services by end users Trust establishment is crucial for physicians
and service providers as they will use healthcare services to implement and extent (medical) treatments.
In particular healthcare providers need to trust the patient data they obtain remotely from the measurement devices deployed in patient†s home.
It is crucial for them to know that a vital sign of a registered user is measured (not of his friends/children), that the meas
In a healthcare setting, trust is also of special relevance because healthcare services deal with very personal and private information.
Home healthcare services monitor patients and gather data that is interpreted by medical professionals. Health and well
-ness services support people in need in many ways on the basis of personal and health
To facilitate the acceptance of electronic healthcare services, it is necessary to de -velop the technology that help end-users to establish trust in healthcare service pro
techniques provide authentication and encryption of the communication with a service provider. However, they do not provide the user with means to control
-vacy and security) for healthcare services. THECS is a Dutch national project in the COMMIT program with 11 partners including representatives from industry, Dutch
of the key issues for new electronic healthcare services. It will create measurable and enforceable trust.
This notion is new for electronic healthcare services (and for Inter -net services in general), and it is fundamental for their success. The objective of
THECS is to create new techniques for measuring and controlling the reliability and use of (healthcare) information.
trust each other and to benefit from these new services The concrete goal of the THECS project is to create and define
services. The spectrum of healthcare services is very wide, ranging from formal medical services to pure commercial services that support every day activities.
Of -ten these services share information. It is this integration of services from different domains and information sharing that is of particular interest
ï A technical protocol to reliably assess the quality of medical data (e g.,, blood pres
-sure) measured by patients at home, e g.,, identification of the patient, compliance with measurement protocol, certification of the measurement device
ï A cryptographic technology that enables health service providers to process en -crypted medical information so that only intended operations are possible and that
healthcare services 4 Trust Management for Home Healthcare Services Home healthcare services have been proposed to decrease the cost of healthcare while
making it more comfortable for the patient. These services aim to support people who are chronically ill (e g.,
, post-stroke, diabetes, Chronic obstructive pulmonary disease COPD)) or who are rehabilitating. They monitor the health and well-being of people
enabling tailored assistance where and when needed. In particular, they gather sensi -tive personal information that is then interpreted by medical professionals in order to
The adoption of such services, however, hardly relies on the trust that both patients and medical professionals have provided in the healthcare services
In particular, a number of questions should be addressed ï How can compliance with a treatment be measured reliably?
How can patients use home healthcare services while ensuring their priva -cy and controlling the use of information in a simple intuitive way
In home healthcare services, patients do not receive treatment (e g.,, medication, reha -bilitation) directly at the hospital;
-ance for home healthcare services. The development of such solutions requires inves -tigating and integrating existing measurement mechanisms for patient compliance
the patient perspective, where patients rate the services of doctors and healthcare pro -viders via a web portal or a health oriented network 20,21.
healthcare services. Patients often subscribe to expert websites and search information regarding their illness on the Internet.
healthcare services. Moreover, to reassure patient safety, a method for measuring the trustworthiness of information originating from the Internet should be integrated
Healthcare services deal with very personal and sensitive information. The protection of sensitive information is enforced usually using access control.
the dynamic environment of healthcare and the potential exceptions that are raised in case of emergency.
For instance, various enterprises designed platforms which allow users to set their privacy and access control policies
The design of a user friendly access control model demands to conceptually divide the access control model in two layers:
A fundamental need is to design novel electronic healthcare services that improve people†s health
several benefits to the society, the adoption of electronic healthcare services relies also on ethical and societal aspects such as the trust that end-users (e g.,
physicians) has towards such services In this paper, we discussed the challenges for developing trusted home healthcare
services. The THECS project addresses the issue of trust in healthcare services. In particular, the project aims to define the technology necessary to deploy trusted
healthcare services. We presented various lines of research which will be also investi -gated within the project to address such challenges, namely patient compliance, relia
-bility of information in healthcare, and user friendly access control Acknowledgements. This work has been done in the context of the THECS project
Applied sciences in Biomedical and Communication Technologies. 2009) 1†6 14. Mouttham, A.,Peyton, L.,Eze, B.,Saddik, A.:
-formation and Communication Technology 330. Springer (2010) 277†288 35. Pearson, S.,Shen, Y.,Mowbray, M.:
This study has been prepared within the UNU-WIDER project on Entrepreneurship and Development Promoting Entrepreneurial Capacity),
-WIDER and UNU-MERIT Research Workshop on Entrepreneurship, Technological Innovation, and Development, held in Maastricht, The netherlands, 30†31 october 2008.
vis-Ã-vis non-innovative SMES in terms of sales turnover, employment, and investment Thereafter, it probes the relationship between innovation and growth of SMES by (i
The World Institute for Development Economics Research (WIDER) was established by the United nations University (UNU) as its first research and
affecting the developing and transitional economies, provides a forum for the advocacy of policies leading to robust, equitable and environmentally
UNU World Institute for Development Economics Research (UNU-WIDER Katajanokanlaituri 6 B, 00160 Helsinki, Finland
along with investment growth and employment growth on gross value-added growth by means of multiple regression analysis. The paper brings out substantial evidence to
-WIDER and UNU-MERIT workshop on †Entrepreneurship, Technical Innovation, and Development, held 30†31 october 2008 in Maastricht, The netherlands and the
Small and medium enterprises (SMES) have been considered one of the †driving forces†of modern economies due to their multifaceted contributions in terms of technological
innovations, employment generation, export promotion, etc. Of these, the ability of SMES to innovate assumes significance
industries and ultimately, economies. Therefore, technological innovation has the potential to spur growth of individual enterprises at the micro level and aggregate
industries and economies at the macro level Given the above, this paper attempts to understand issues such as what factors drive
SMES to innovate, what is the nature of SME innovations, what are the achievements of
resources, and the business environment in which they operate (Burrone and Jaiya 2005 Particularly innovation in the manufacturing sector is a very complex process
market demand for the innovated products in the form of an explicit customer demand or
implicit market opportunities. Of course, the relative importance of these internal as well 2 as external factors might vary from firm to firm or from industry to industry or even from
economy to economy and from time to time Lehtimaki (1991) attributed the emergence of new ideas for product innovations in SMES
ideas and the most frequent way of achieving this included contacts with customers Chanaron (1998) identified demand placed on business by customers/clients, close
working relationships with a key customer and close analysis of competitor products are the major drivers of innovation in SMES covered in three different countries: UK, France
of which suppliers or customers are the most frequent. According to Ussman et al. 2001), SMES in Portugal do not just
but are influenced also strongly by the overall environment Hoffman et al. 1998) based on a survey of studies pertaining to UK,
to customers (enabling the firm to serve certain customers. These studies strongly indicate that neither internal competence of the firm nor customer requirements alone will
than to profits. Roper (1997) whose study focused exclusively on product innovations in German, UK,
services, and (ii) increased range on goods and services, and process-oriented results like increased production capacity and improved production flexibility
growth of sales turnover, investment, and employment? In other words, does innovation contribute to SME performance directly?
that innovative products present great opportunities for SMES in terms of growth and expansion into new areas though they did not study the relationship between innovation
services. However, they did not study whether the size of those SMES changed over time
and offer some opportunities for growth. Coad and Rao (2008) probed the relationship between innovation and sales
which covered 648 micro enterprises on a sample basis and 1358 small scale enterprises on a census basis across all industries
in the manufacturing sector (Bala Subrahmanya et al. 2001. The study found that 258 about 40 per cent) micro enterprises and 716 (about 53 per cent) small scale enterprises
had undertaken technological innovations primarily due to external factors such as competition, technological change, customer requirements, and internal factor of self
-motivation. They were involved in both product and process innovations though emphasis was relatively more on product innovations than on process innovations.
innovation carried out by SMES were new products, new processes, and new services new methods of production,
and new services The above discussion brings out that no empirical study has probed explicitly the
market opportunities, availability and accessibility of institutional support, economic incentives, competition, etc. might also prompt some entrepreneurs to undertake
innovation. However, for a successful innovation to emerge a combination of both internal and external factors may be required
firms would be able to achieve growth in their sales turnover, investment and employment resulting in the growth of firm size.
•To ascertain the growth rates of sales turnover, investment, and employment of innovative SMES vis-Ã-vis non-innovative SMES
rural districts had the highest proportions of small scale industry (SSI) enterprises engaged in R&d and innovations.
equipments & parts (37) industries had the highest proportions of SSI enterprises engaged in R&d and innovations (Bala Subrahmanya et al. 2001.
sales, and data on economic variables such as employment, investment, sales turnover etc. The validity and reliability of the questionnaire was ensured and based on the
enterprises each in the three sectors, we did an item analysis for the questions excluding
started as new ventures and the rest were inherited either or acquired. About 80 per cent
significant feature of entrepreneurship of these SMES: 70 per cent entrepreneurs of auto 69 per cent of electronics,
and/or to exploit market opportunities that majority of these entrepreneurs have setup their firms.
structure of the SMES was skewed more towards micro and small enterprises than towards medium sized enterprises
Given this, it would be appropriate to know how many of the SMES in the three sectors
materials, competition, etc. are responsible for a majority of SMES to innovate. This implies that both firm level technological competence (technology push) and market
investment and employment for innovative and non-innovative SMES is appropriate 5 Innovative and non-innovative SMES:
growth of sales, investment, and employment The growth performance of SMES has been analysed in terms of sales turnover
investment, and employment. The growth performance has been analysed for all the SMES of each sector†for innovative and non-innovative SMES separately and within the
current value of investment (in plant and machinery) from the SMES of auto, electronics and machine tool sectors for a period of five years from 2001/2 to 2005/6.
But the values of investment in different years represent their current values for the respective years and therefore they are comparable between years.
Enterprises we derived the output deflator for 2005/6. Using this output deflator, we 10 converted the value of the 2005/6 sales at current prices into value at constant (2001/2
Table 7 presents the figures for the growth of sales, investment, and employment for innovative and non-innovative SMES.
higher rate of growth compared to non-innovative SMES in terms of sales, investment and employment in all the three sectors.
and non-innovative SMES registered a higher growth of investment followed by sales and then employment.
the electronics and machine tool sectors, sales growth was higher than that of investment and investment growth was higher than that of employment for both innovative and non
-innovative SMES. In the electronics sector, non-innovative SMES registered negative growth in terms of investment and employment.
Overall, the growth analyses for the three sectors clearly indicate that innovative SMES are better off relative to non
and grow in size of investment and labour would depend more on how far they have been
improvement of existing products/processes as demanded/required by their customers is appropriately done, it may prove to be more useful to increase sales than development of
the market base of an enterprise and grow. Given this, it would be difficult to say whether
along with rate of growth of capital as well as that of labour, has a significant influence on the rate of growth of sales
whether the former has any influence on enterprise growth. To ascertain the influence, we have carried out a regression analysis with the
Similarly, Kg and Lg are CARG of capital and labour respectively, during 2001/2†2005/6 and ISP is average percentage of innovated products
for both GVA and capital (at 2001/2 prices. The analysis covers both innovative and non-innovative SMES.
of 0 for all SMES which had investment in plant and machinery up to Rs. 1 million and 1
for the rest (since the investment limit for an enterprise to be considered small was Rs. 1
variables of labour and capital, we have not used any interaction term for the present analysis
important is the increase in capital as well as labour. Thus if an innovative SME could expand the scale of production in terms of capital
and labour and achieve an increase in innovation sales, it will be able to experience a significant improvement in the growth of
and demand, information provided by suppliers of equipments and materials, market 13 opportunities, and competition.
Thus, both †technology push†and †demand pull†have contributed to the emergence of innovations
largely confined to winning of awards from large enterprise customers and financial institutions Innovative SMES registered higher growth relative to non-innovative SMES in terms of
not only sales turnover but also employment and investment in all the three sectors. There was a statistically significant positive correlation between innovation sales and sales
along with investment growth and employment growth, had a positive influence on GVA growth, in all the three sectors.
Entrepreneurship and Innovation, 2 (3: 141†52 ††(2005: †Technological Innovations in Small Enterprises:
A Comparative Perspective of Bangalore (India) and Northeast England (UK) â€. Technovation, 25 (3 269†80
Small and Medium-Sized Enterprises. Geneva: World Intellectual Property Organization 14 Chaminade, C, . and J. Vang (2006).
†The Changing State of British Enterprise Growth, Innovation and Competitive Advantage in Small and Medium Sized Firmsâ€
An Assessment of Enterprises in Industrial South Walesâ€. Paper presented at the 41st European Regional Association Meeting, 29 Augustâ€
The Economics of Industrial Innovation, Third Edition London: Pinter Harrison, N. J, . and T. Watson (1998).
†Technology, Innovation and Enterprise †the European Experienceâ€. Paper presented at the Workshop of the ICSB 41st World Conference, 17†19 june, Stockholm
and Medium Enterprises (2007). Annual Report 2006/07. New Delhi: Government of India National Knowledge Commission (NKC)( 2007.
†The State of British Enterprise: Growth, Innovation and Competitive Advantage in Small and Medium-Sized Firmsâ€.
Small Business Economics, 9: 523†37 UNDP (2001. Human Development Report 2001. New york: Oxford university Press
Journal of Entrepreneurship and Innovation, 2 (2: 111†18 Vonortas, N s, . and L. Xue (1997).
Investment 25.66 12.91 15.53-1. 81 22.17 8. 75 Employment 14.43-14.63 7. 06-20.34 6. 87 3. 27
Investment 28.60 19.98 16.07 9. 49 20.17 24.39 Employment 13.95 16.79 7. 04 4. 05 3. 55 11.3
Influence of innovation sales on enterprise growth Dependent variable: GVA growth Variables Coefficients Kg 0. 30 (4. 39
entrepreneurship -Work experience -Innovative ideas External Factors Market Pressure -Customer demand -Market opportunities -Suppliers of equipments
/materials -Institutional support -Economic Incentives -Competition Technological Innovation in Products and/or Processes Cost reduction, quality improvement, suitable changes in
product size/dimensions or product diversification to suit customer demand, raw material substitution, new products Share of innovated products in
total sales Growth of Sales, Employment and Investment Drivers Dimensions Achievements Outcomes
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