Technological advancements, especially in Information and Communication Technologies (ICT have enhanced greatly the competition spurred by the globalization of the world economies.
Even small and medium-sized enterprises (SMES) are no more immune to the challenges that the
globalization brings about. It is a remarkable, and in certain instances worrisome, situation since SMES play a key-role in most economies,
in that they constitute the largest business block and provide the bulk of employment However, opportunities presented by the globalization
and the entwined, simultaneous pressure to innovate opens for SMES new arenas to engage in
here matched against perceived opportunities and challenges presented by global innovation KEYWORDS: Barriers to Innovation, Globalization of Innovation, Internationalization of
R&d, Research & development, Small and Medium-sized Enterprises (SME This Paper should be referred to as following
2. 2 Small and Medium-sized Enterprises (SMES...5 2. 3 Connecting SMES to Innovation...
4. 3 Leveraging Market Opportunities...21 5-Challenges of Global Innovation...22 5. 1 Finding â€oequalified†Personnel...
5. 2 Cost Explosion in Booming Economies...22 5. 3 Protection of Intellectual Property rights...22
5. 6 Cross-cultural Issues and Communication...23 5. 7 Acceptance Issues...23 6-Implications and Research Outlook...
Technological advancements, especially in Information and Communication Technologies ICT) have enhanced greatly the competition spurred by the globalization of the world
economies. Even small and medium-sized enterprises (SMES) are no more immune to the challenges that the globalization brings about.
It is a remarkable, and in certain instances worrisome, situation since SMES play a key-role in most economies,
including in Germany in that they constitute the largest business block and provide the bulk of employment
Innovative ideas and products are becoming increasingly important to counter the price -oriented competition from low-cost producers from emerging economies, on home turf and
abroad (Tiwari et al. 2007). ) On this crucial score, however, SMES often find themselves confronted with a number of barriers to innovation, e g. resource constraints,
and successfully commercialize new products, services or processes, see e g. Herstatt et al. 2007b Opportunities presented by the globalization
and the entwined, simultaneous pressure to innovate, opens for firms, also for SMES, new arenas to engage in
The findings of this survey are matched here against perceived opportunities and challenges presented by global innovation
while elaborating the crucial role that SMES play in the economy 2. 1 Innovation Innovation, according to Rogers (2003), is â€oean idea, practice,
products, processes and/or services (Tiwari, 2007 Innovations usually do not take place in a given, static environment.
They are rather a result of a dynamic process in an organisation that involves interplay of several internal
2. 2 Small and Medium-sized Enterprises (SMES The term â€oesmall and medium-sized enterprises†(SMES) consists of two components:
An enterprise, as defined by the European commission (EC) in Article 1 of its recommendation on â€oedefinition
in economic activity, irrespective of its legal form†(EC, 2003a. As far as the size -component is concerned,
•Prototype Dev •Pilot Application •Testing •Production •Market Launch and Penetration
•Prototype Dev •Pilot Application •Testing •Production •Market Launch and Penetration
•Prototype Dev •Pilot Application •Testing •Production •Market Launch and Penetration
•Prototype Dev •Pilot Application •Testing •Development /Construction •Prototype Dev •Pilot Application
•Testing •Production •Market Launch and Penetration national/international •Production •Market Launch
though SMES play an important role in the national economy as discussed in the following
SMES which represented 99%of all enterprises in the enlarged European union of 25 countries while providing around 75 million jobs (EC, 2003b.
Bonn1, SMES accounted for 99.7%of all enterprises in year 2005 and provided employment to 70.9%of all employed persons in 2006 (Ifm, 2007b.
portal†data, show that the high percentage of SMES amongst all enterprises continues to remain high.
miniscule 0. 33%of all enterprises. Of 3, 215,238 enterprises active on the aforementioned date an overwhelming 3, 204,519 were SMES (with less than 250 employees.
2 These data exemplarily demonstrate the key-role which SMES play in Germany†s economy.
For detailed discussions on SMES€ role in the German economy see Hamer (1997), Bundestag 2002), Gà nterberg and Kayser (2004), and Idw (2004
2. 3 Connecting SMES to Innovation Notwithstanding their large share in all enterprises and the overall employment generated
SMES in Germany continue to remain week on the revenue front when compared with their
enterprises in Germany in 2005 went into SMES€ account (Ifm, 2007b At the same time, the increasing globalization is bringing in more competition in the home
market, the traditional stronghold of many SMES. In Germany as well as in many other EU member countries SMES usually operate under high overhead costs, such as labour costs
and find themselves faced with tough price-oriented competition from low-cost producers from emerging economies in Asia and Eastern europe
1 Ifm Bonn works with a definition of SMES that differs from the official definition
over 230 years back in 1776, blocking international competition is not a solution to such
For the increased competition is ultimately beneficial for the consumer in the form of cheaper and/or better goods and services. â€oeconsumption is the
sole end purpose of all production; †observed Smith, â€oeand the interest of the producer
economy like that of Germany Besides, the globalization does not bring in only challenges but also presents an
opportunity to internationalize sales in new, rapidly growing markets and thereby to generate additional revenues.
services which are adapted to the local needs and tastes of those markets Providing innovative products with enhanced utility may help firms strengthen their
distribution and after-sales services; see e g. Dangayach et al. 2005) and Spielkamp & Rammer (2006.
and have direct contact to customers thereby potentially gaining valuable impulses in the form of customer feedback.
services faster Develop products and services cheaper Develop better products and services Improve competitive position
Enhance profitability, strengthen stability Quality Costs Time Develop products and services faster Develop products and
services cheaper Develop better products and services Improve competitive position Enhance profitability, strengthen stability BARRIERS TO INNOVATION IN SMES
CAN THE INTERNATIONALIZATION OF R&d MITIGATE THEIR EFFECTS R. Tiwari and S. Buse (October 2007) Page 8 of 31
more informal manner and confronted with fewer intra-firm hierarchy levels than large firms, SMES seem to be, in many respects,
better placed for innovations than their large counterparts. This potential edge in normal course, should enable them to develop
products better suited to market demands and thus bring more success In practice, however, the resource constraints coupled with market uncertainties (and a
and Hamburg Institute of International Economics (HWWA, 2004 Comparing the findings of the aforementioned surveys it would not be an unreasonable
elsewhere in Germany and other developed economies we conducted a new set of investigation. The methodology and selected results of this study are explained in the
Manufacturing, Maritime Economy, Medical Equipments, Logistics, and Services sector To reduce the time needed to fill out the questionnaire,
Services; 11 %Electronics 16 %IT; 19 %Media; 3 %Logistics; 21 %Aviation; 3 %Maritime; 6 %Machinery
phases, causing significant losses in the form of sunk costs and lost opportunities 42%42
%Communication problems; 5 %n=33 Figure 13: Problems in International Cooperation with Universities The discussion above has brought to fore the chances and challenges that firms
Firms not only in Germany but in many other Western countries are faced with scarcity of skilled labour owing primarily to two reasons
opportunities. The study carried out by Cologne-based Institut der deutschen Wirtschaft Idw) on behalf of Germany†s Federal Ministry of Economics and Technology (BMWI
predicts that Germany will be short of 95,000 engineers and 135,000 scientists by the year 2014 (Bovensiepen, 2007b.
employees were found to be suffering more from this scarcity (60%)than did large firms
human capital abroad 3. 3. 2 Financial Problems and State Support As stated in section 3. 2 the lack of financial resources hinders many SMES from initiating
It is therefore not surprising that many SMES have started recognizing the opportunities that the globalization enables not only in the production but also in R&d.
such as China and India, may offer tremendous opportunities, e g. in the form of vast pools
Setting up offshore R&d centres provides firms with an opportunity to tap into a larger
Unsaturated, emerging economies in Asia are rapidly taking over the role of â€oelead markets†by their openness for consumption and the willingness to spend money on technological
the legal requirements (in case of high barriers) or they may cause high opportunity costs in the form of lost business opportunities (in case of prohibition.
If R&d in that particular field is allowed in another country or is possible with significantly lower restrictions then it
4. 3 Leveraging Market Opportunities In addition to knowledge and cost factors there might be significant market opportunities
abroad in the form of demand for localized products in fast-growing markets. More and more people in emerging economies are having financial resources to buy high-end
products (EIU, 2004), and the number of the middle class consumers is growing rapidly in emerging countries particularly China and India
A Mckinsey study predicts that China will move to become the third largest consumer market worldwide, surpassing Germany and behind Japan and USA, by 2025.
incomes are set to rise significantly providing ample opportunities for the manufacturers to sell not only items of basic necessities but also of a â€oediscretionary†nature (MGI, 2006
alia in advanced economies. These â€oechances††though realistic †are fraught with certain challenges that need to be addressed
felt in the booming economy of China, where German firms are finding it increasingly difficult to recruit local technicians,
5. 2 Cost Explosion in Booming Economies The cost advantage of many â€oeemerging†nations with booming economies is disappearing
in many respects, for instance, wages of highly skilled labour in India reportedly grow by 10 to 15%and above per annum on average;
5. 6 Cross-cultural Issues and Communication Global innovation invariably involves multi-disciplinary teams of international backgrounds
thorough understanding of internal business processes and of business environment conditions in the country concerned
internationalization, which do not require a high level of capital investments Potential strategies, for instance, could be
often faced by SMES in Germany, the EU or anywhere else in industrialized economies At the same time these â€oeglobal†opportunities are associated invariably with challenges
that need to be mastered in order to fully exploit the chances of global innovation. A thorough understanding of internal business processes, organisational backing not only by
as a profound analysis of business environment conditions of the target offshore country are prerequisites of a successful global operation
micro, small and medium-sized enterprises, Annex Title I †DEFINITION OF MICRO SMALL AND MEDIUM-SIZED ENTERPRISES ADOPTED BY THE COMMISSION€
European commission (2003/361/EC EC (2003b: The new SME definition: User guide and Model declaration, Publications
development, Economist Intelligence unit Ernst, D. 2006: Innovation Offshoring: Asia†s Emerging Role in Global Innovation
Innovationswettbewerb, Hamburg Institute of International Economics, Hamburg Idw (2004: Mittelstand in Deutschland †Stiefkind der Wirtschaftspolitik, Institut der
Opportunities and Challenges in Public-Private Partnership",in: Asia Pacific Tech Monitor, Vol. 24, No. 1, New delhi
World Investment Report 2005: Transnational Corporations and the Internationalization of R&d, United nations Conference on Trade and Development
in the information technology field, there are growing competitive pressures for enterprises of all sizes to respond quickly to the very latest developments affecting their sectors.
today†s global economy 2. Innovation is a broad term that encompasses virtually any new development in firms.
or services to meet new market demand, introducing new processes to improve productivity, developing or applying new marketing techniques to expand sales
opportunities, and incorporating new forms of management systems and techniques to improve operational efficiency 3. Recent experience has shown that some governments have been able to engender a climate
creating a more dynamic economy and greater employment opportunities. In fact, the national climate for private sector innovation has an impact on businesses of
all sizes, but public policies and attitudes that constrain creativity, competition, risk-taking and appropriate financial returns on successful ventures can particularly affect small and medium-sized
enterprises What are the policy obstacles to innovation by SMES 4. The OECD recently conducted a survey of SME and other representative business
organisations to evaluate what they perceive to be the most important impediments to innovation in
their respective countries. While there were certainly variations among respondents depending upon national circumstances, a number of common obstacles emerged from the study
Most respondents cited the lack of well-functioning venture capital or seed finance markets to support
or their investments in innovations. Another key issue for SMES is their ability to keep abreast of the latest developments affecting their sector.
recommended public programmes and support for venture capital and other types of risk financing through, for example, tax incentives.
not only give SMES the opportunity to benefit from a broader pool of information resources, but would also provide a ready network of potential business
more generally for providing a competitive foundation for national economies. Because they often lack the resources to engage in in-house training,
What are the best ways to stimulate the development of venture capital, including business angels†financing and seed capital?
warranted to correct market failures that affect the financing of investment in innovation, including in
enterprises 14. The availability to enterprises of relevant information (technical, commercial, etc. is essential to successful innovation.
SMES often have problems in finding information. What should governments be doing to support information programmes
investment tax credits and allowances •Encourage cooperative agreements with government -paid R&d infrastructure (universities, research
entrepreneurship •Harmonise vocational training system with innovations and technological change Inadequate access to technological know-how •Foster links between enterprises and research centres
and laboratories •Improve information networks on technological know -how •Introduce tax incentives or tax relief for SMES
elements in today†s globalized and competitive environment Companies focusing on innovation achieve not only competitiveness
sample of 870 SMES from both manufacturing and services sectors These SMES have been found engaged in variety of businesses and to
Innovation is an important tool that provides opportunities to new inventions and building of new markets (Kuhn &
competition, the capability to control the innovation and manage the innovation processes has become extremely
Kamairah Ismail is the Director of Technology Entrepreneurship Center Universiti Teknologi Malaysia (UTMTEC), Johor Bahru, Johor, Malaysia
larger enterprises. However, this misconception has been negated by Kaufmann and Todtling (2002) who highlight that
accept change in their environment or industry Keeping in view the importance of innovation in SMES
Malaysia is one of the fastest growing economies of the world and is based largely on SMES that contribute almost
Malaysian economic growth and development especially in this competitive global environment. Despite the government focus on SMES,
researchers question the role of innovation in maintaining the growth of the Malaysian economy and the
role of innovation in the overall performance of the SMES This concerns stems from the Hill et al (2012) who feared
expansion of product, services and markets, making of new ways of product development and establishing new
Mathematical Methods in Engineering and Economics ISBN: 978-1-61804-230-9 145 management system.
perform in correspondence to environment. Innovation is seen as a most important part of an organizational life that emerges
demands that is the main player between the individual and organizational knowledge B. Growth Researchers normally evaluate a company†s ability based
especially for small and medium enterprises III. METHODOLOGY For the present study, sample consisted of SMES belonging
to both manufacturing and services sectors. A total of 870 SMES from across the country participated in the study that
Mathematical Methods in Engineering and Economics ISBN: 978-1-61804-230-9 146 result is presented in Table 1
Services SMES Sector Mean Std. Dev Manufacturing 1. 5461 1. 28777 To replace products Services 1. 0696 1. 19622
Manufacturing 2. 3775 1. 04685to improve product quality Services 1. 6917 1. 32562 Manufacturing 2. 2247 1. 11048to extend product
range Services 1. 5143 1. 26809 Manufacturing 2. 2989 1. 13428to open up new markets or increase
market share Services 1. 6289 1. 27987 N 870 To assess whether the sampled SMES were involved in any
activities related to R&d, managers were asked about their response on a dichotomous scale. The result is shown in Table
in the services industry. The results of the study do indicate that the innovation is essential
Mathematical Methods in Engineering and Economics ISBN: 978-1-61804-230-9 147 3 Kanter, R. M. 2006.
make competition irrelevant. Boston, MA: Harvard Business school Press 5 Hamel, G. 2002. Leading the revolution:
heritage in a rapidly changing environment. In Docherty, P.,Kira, M. ans Shani (Rami) A b s
Environments. Organization Science. Vol 21, Nol 6 November-December. Pp. 1263-1273 20 Foss, N. J.,Husted, K. and Michailova, S. 2010
medium enterprises. Paper presented at the 20th International Business Information management Conference (IBIMA. International Business Information management Association, pp. 794-809
Economy, LICOS Discussion Paper, No. 150 26 Hyytinen, Ari; Toivanen, Otto (2003: Do financial constraints hold back innovation and growth?
The Research Institute of the Finnish Economy ETLA), No. 820 27 Salim, I. M, . & Sulaiman, M. B. 2011).
Entrepreneurship and Innovation Management, 8 (1 36-56 29 Lin, C. Y. Y, . & Chen, M. Y. C. 2007).
environment. Nankai Business Review International, 1 (3), 297-316 Mathematical Methods in Engineering and Economics
ISBN: 978-1-61804-230-9 148 32 Clausen, T. H.,Korneliussen, T, . & Madsen, E. L
Small and medium enterprises SMES) competing in the global business environment A case of Malaysia.
International Business Research, 3 (1), P66 36 Rosenbusch, N.,Brinckmann, J, . & Bausch, A. 2011
enterprise performance. Strategic management journal, 28 (13), 1319-1350 Mathematical Methods in Engineering and Economics
ISBN: 978-1-61804-230-9 149
Published on Horizon 2020 (http://ec. europa. eu/programmes/horizon2020 Innovation in SMES Horizon 2020 actively supports SMES by providing both direct financial support, and indirect support
environment for SMES, including through the establishment and facilitation of a range of support services, with the aim of strengthening the innovation capacity of SMES
and creating value on the market and/or into society, thus underpinning the Europe2020 strategy for smart, inclusive and
Enterprises. Innovation management capacity is the internal ability of companies to manage innovation processes from the generation of the idea to its profitability on the market
European dimension that lead to radical changes in how business (product, processes, services marketing etc.
returns of investment. The SME instrument addresses all types of innovative SMES so as to be able to
tailored services and projects (innovation management capacity building, IPR management, etc†networking and mobilization actions for innovation service providers and policymakers (i e. exchange
to the Enterprise Europe Network 3, a key player in improving SMES'access to funding opportunities
'Innovation in SMES'funds additional activities intended to support entrepreneurship internationalisation, and improving access to markets (through the COSME programme 4
COSME (EU Programme for the Competitiveness of Small and Medium-sized Enterprises 4 Enterprise Europe Network 3
The Eurostars programme 5 Official Eurostars communication 8 The SME instrument 1 Source URL: http://ec. europa. eu/programmes/horizon2020/en/h2020-section/innovation-smes
Links 1 http://ec. europa. eu/programmes/horizon2020/en/h2020-section/sme-instrument 2 https://ec. europa. eu/programmes/horizon2020
/4 http://ec. europa. eu/enterprise/initiatives/cosme/index en. htm 5 http://www. eurostars-eureka. eu
7. Innovation in small and medium-sized enterprises Revised This Work Programme was adopted on 10 december 2013.
IPORTA 2-Increasing the quality of IP advisory services to SMES...15 INNOSUP-4-2014:
1-Establishing services â€oeenhancing the innovation management capacity of SMES€ in the Enterprise Europe Network...
27 2-Adapting and maintaining the innovation management assessment tools to support †Enhancing the innovation management capacity of SMES€...
3-Capturing innovation impulses from emerging economies...30 4-Capabilities for Design-Driven Innovation in European SMES...
9†Assessing the Investment Potential of SMES Emerging from Phase I of the SME Instrument 34
Exiting the economic crisis and achieving the employment and growth targets of the Europe 2020 strategy requires a competitive industry that builds its competitiveness on innovation in
capacity of industry depends not only on large enterprises with market power but crucially on ambitious entrepreneurs and small enterprises aiming for radical innovations and fast growth
Horizon 2020 and the Competiveness and SME programme (COSME) will be the major instruments to provide direct support and a favourable environment for growth of SMES.
The major contributions from Horizon 2020 to SMES competitiveness are: the provision of financial support to own innovation projects by the SME instrument,
instruments for technology and innovation based enterprises. The domains of major activities of the COSME programme are:
innovation support services to SMES. In addition the analysis of current SME innovation activities and their future development are covered themes by innovation in SMES.
activities to these were funded so far by the †Entrepreneurship and Innovation Programme†EIP) as part of CIP
services, marketing etc. is done. It will launch the company into new markets, promote growth, and create high return on investment.
The SME instrument addresses all types of innovative SMES so as to be able to promote growth champions in all sectors
Information and Communication Technologies ICT-37-2014/2015 Open Disruptive Innovation Scheme 45.00 43.00 5ii.
Climate action, environment, resource efficiency and raw materials SC5-20-2014/2015 Boosting the potential of small businesses for eco
SME business model innovation 11.00 14. Secure societies †Protecting freedom and security of Europe and its citizens
sector in which it is presented (new products, processes, design, services and technologies or new market applications of existing technologies.
establish a solid high-potential innovation project aligned to the enterprise strategy and with a
Bottlenecks in the ability to increase profitability of the enterprise through innovation shall be detected and analysed during phase 1 and addressed during phase
2 to increase the return in investment in innovation activities. The proposal should contain an
initial business plan based on the proposed idea/concept The proposal should give the specifications of the elaborated business plan,
which is to be the outcome of the project and the criteria for success Funding will be provided in the form of a lump sum of EUR 50.000.
growth underpinned by a strategic business plan. Activities should focus on innovation activities such as demonstration, testing, prototyping, piloting, scaling-up, miniaturisation
Proposals shall be elaborated based on an business plan either developed through phase 1 or another means. Particular attention must be paid to IP protection and ownership;
In addition, in phase 3, SMES can benefit from indirect support measures and services as well as access to the financial facilities supported under Access to Risk Finance of this work
phase 2. This service will be accessible via the Enterprise Europe Network and delivered by a
competitive solutions seizing European and global business opportunities ï Market uptake and distribution of innovations tackling the specific challenges in a
ï Increase of private investment in innovation, notably leverage of private co -investor and/or follow-up investments
ï The expected impact should be described clearly in qualitative and quantitative terms (e g. on turnover, employment, market seize, IP management, sales, return on
investment and profit Type of action: SME Instrument The conditions related to this common call are provided below and in the General Annexes
Small, innovative companies create the majority of new jobs in the European economy. A strong rationale exists for public support to SMES€ innovation activities in order to overcome
innovation support services. However, SMES receiving innovation support often remain dissatisfied with the services they receive;
while at the same time the public expects a higher return from the support provided. While major new drivers for SME innovation, like online
established support services assist mainly clearly defined technical projects within single enterprises. Public support pays much less attention to the creation of favourable ecosystem
for SME innovation in which public enterprises, SME intermediaries, direct and indirect customers, end-users, suppliers and enterprises with complementary skills are encouraged to
collaborate for radical innovation that may not yet be described and formulated as project Emerging innovation trends help SMES overcome some of the size disadvantages they face
Mobilizing, coordinating and exploiting resources across national borders, sectors and firms will be key for SMES as innovation moves away from a sequential logic towards a networked
regional services. Generally, the actions are designed to provide opportunities to Member States and regions to enhance their services through collaboration,
peer-learning and uptake of new approaches. In addition several actions will focus on the identification, further
development and dissemination of skills and expertise among SMES. The Enterprise Europe Network present in all European regions and co-financed by them
and the Member States is expected to play an important role for catalysing such development processes
of long-term internationally competitive goods and services that require combining different competences and innovative solutions.
for the collaboration and integration of different innovation actors, including large enterprises and especially SMES, across different sectors towards the implementation of a joint vision
business models, service innovation and design. The potential of clusters, that represent favourable ecosystems for innovation, need to be exploited better in this respect
Cross-border and cross-sectoral collaboration, innovation and entrepreneurship across different regions and value chains shall be promoted.
http://ec. europa. eu/research/participants/portal/desktop/en/opportunities/h2020/topics/2350-innosup-1
and underpin future economic growth jobs, and progress towards a resource-efficient economy ï Further leverage
and complement support for innovation in SMES and other funding which may be provided by national or regional authorities (including under the
follow-up investments ï Contribute to regional smart specialisation strategies by capitalising upon concentrated and complementary competences for the development of new industrial value chains
or significantly improved products (goods and/or services), processes, new marketing methods, or new organisational methods â€,
ï Improve the business environment of the supported SMES by establishing open collaboration spaces that can involve innovation actors from different sectors and
In particular, the services offered by this helpdesk should follow closely the recommendations stemming from a document prepared as a follow-up of the external
http://ec. europa. eu/enterprise/policies/industrial-competitiveness/industrial-policy/intellectual-property -rights/index en. htm
materials and promotion to the demand and to better reach the target group. In particular, the development should follow the recommendations of the
The services offered by this helpdesk should follow closely the recommendations stemming from a Commission document prepared as a follow-up of the external evaluation of the
and should follow the target group†s demand for initial IPR services as established e g. through analysis of helpline requests, or feedback
from trainings and from cooperating business services organisations Depending on the demand of the target group the activities may be provided in the most
demanded EU languages. English versions are essential The Commission considers that proposals requesting a contribution from the EU of around
EUR 4 million would allow this specific challenge to be addressed appropriately Nonetheless, this does not preclude submission
ï Establish support services and cooperation structures with intermediaries (like the regional consortia of the Enterprise Europe Network and system of National Contact
Points for the different parts of Horizon 2020) and other relevant organisations enabling them to provide initial guidance to SMES
http://ec. europa. eu/enterprise/policies/industrial-competitiveness/industrial-policy/intellectual-property -rights/index en. htm
IPORTA 2-Increasing the quality of IP advisory services to SMES Specific challenge: Managing Intellectual Property rights (IPR) is a difficult task, especially
for Small, Medium and Micro Enterprises (SME) or individual inventors. Such enterprises or individuals frequently do not have the knowledge or human resources to effectively use and
manage IPR. Such entities would be able to better use their intellectual capital if: 1. they had
more knowledge, including basics of IPR, and guidance on how to better use professional legal consultants;
services to SMES Scope: This project is undergoing an evaluation. The future project should build on top of
better services to SMES, including providing information on the business use of European level rights (Unitary Patent, European Trade mark, Community design.
The activities should include the communication and trainings on the business use of the European level rights (Unitary Patent, European Trade mark, Community design), the
individual inventors and how to offer services to this target group. The initial pilot implementation of new services by NIPOS can be included as well as the update of the
analysis of current SME needs for IPR support services. The future beneficiary consortium should take care of the joint website www. innovaccess. eu
Upgraded or new services and trainings for the target group will be provided by the national IP offices to be implemented either by the NIPOS themselves or by the business support
providers. Where needed professional legal attorneys should be trained to tailor their advice and to build IPR strategies matching the needs and resources of SMES
http://ec. europa. eu/enterprise/policies/industrial-competitiveness/industrial-policy/intellectual-property -rights/index en. htm
providers,(e g. the Enterprise Europe Network, private consultancy) and the different IPR Helpdesks. This measure should also contribute to improve
service providers†intellectual asset services in conjunctions with NIPOS 70%of the provided grant should be spent on joint actions described above directly with the
Commission services IPR projects: IPR helpdesks and the transatlantic portal The project should be operational for a period of 48 months
ï Upgrade or create new services and trainings for the target groups according to the needs of SMES.
-directly benefitting from the upgraded or new services and trainings ï Existing IP, like the common website (innovaccess),
knowledge, skills and innovation support services from both public and private service providers across Europe more effectively accessible for SMES
and award the label might provide services to participating managing entities of innovation voucher programmes which enhance the quality of delivery or manage
ï Increase the range and quality of services available to SMES ï Enhance the opportunities of excellent researchers and other specialists to transfer
their knowledge transnationally and accelerate the spin-in of technologies and knowledge Type of action:
benefitting from support the programmes still often remain dissatisfied with the services received 15 The PRO-INNO Europe'INNO-Partnering Forum'(IPF,
methodologies and they have to be driven demand, launched at the moment agencies themselves recognise the need to revise programme formats.
these two methodologies as elements of a permanent peer learning environment and to give incentives to the agencies to engage more frequently in peer learning activities
joint learning activities shall be available at any time when need and opportunity for policy
Innovation support services are addressing this challenge traditionally by two interventions that are combined often:(a) the provision of networking
Social media and other web-based services challenge these existing approaches and ask for their revision The british †connect†platform is the first publicly financed innovation platform on the web
However, it becomes evident that only a small number of enterprises using the platform have
already the skills to draw full benefits from the opportunities. Most establish contacts on the
generation of support services that assist to create value from online collaboration with a group of contacts and potential partners (â€oeassistance to online collaboration for innovationâ€
ï make such new services accessible for enterprises in sectors that are typically not yet benefitting from innovation support
currently providing brokerage services in established networks or SME agencies Service designs and qualification profiles shall be formulated independently from a particular
Tests of services shall be undertaken on platforms that are open and bring together already a critical mass of enterprises and innovation stakeholders
Establishing such platforms will not be supported The nature of the topic †online collaboration †suggests that the training modules are
ï New services assisting online collaboration for innovation help SMES to access a broader range of potential innovation partners and mobilise them in a timely manner
the services of Enterprise Europe Network †is enhanced ï Resources in public innovation support are reoriented from information and brokerage
functions like the identification of opportunities and the animation of project development Type of action:
policies and supporting various groups of stakeholders is excluded from the delegation to EASME and will
be implemented by the Commission services HORIZON 2020 †WORK PROGRAMME 2014-2015 Innovation in SMES
Awareness of these initiatives should be expanded and the services supporting them professionalised At the same time financial and management reporting need to catch up with the logic of open
Entrepreneurship skills,(3) Resource needs,(4) Tools to build trust and control and manage risk in a collaborative partnership.
competition successfully by developing new and more profitable businesses through networking among innovation partners ï Professional open innovation management by SMES
It will be delivered in cooperation with the Enterprise Europe Network which will initiate, broker and monitor the coach-SME relationship as well
the coaches should have the opportunity to exchange ideas and experience with each other to grow the competencies within the coaching
-Awareness raising regarding the recruitment opportunities for SME instrument coaching towards appropriately qualified individuals -Creation of information materials, setup of dissemination events, creation of on-line
either participating in the consortium or as third party enterprises mainly SMES. This topic allows for the provisions of financial support
-initially proposed services to be developed to the target group and to a relevant part of the legal profession
IPORTA 2-Increasing the quality of IP advisory services to SMES INNOSUP 6 †2015:
1-Establishing services â€oeenhancing the innovation management capacity of SMES€ in the Enterprise Europe Network
Lack of innovation management capacity is recognised as an important barrier to creating economic impact (competitiveness, growth and jobs) from innovation activities in SMES
services to beneficiaries to address this need The Enterprise Europe Network is a European-wide network of public, public-private and
private providers of support services to SMES established for the period 2008-14 under the
Competiveness and Innovation Framework Programme (CIP. For the period 2015-21 the Network will be reestablished under the Competiveness and SME programme (COSME
of innovation support services. The network is most well-known for services related to partnering for business and innovation.
The Enterprise Europe Network is a therefore a suitable structure to introduce services â€oeenhancing the innovation management capacity of
SMES€ and make available to SMES higher quality innovation support services where these are absent or unaffordable on local markets
It is proposed that all information and partnering services of the network, including those specific to Horizon 2020, will be financed under the COSME programme in order to reduce
the administrative complexity of projects. A contribution of Horizon 2020 to the Network should exclusively be allocated to new and additional innovation support services, like those
enhancing the innovation management capacity of SMES This action will establish and provide the above mentioned services addressing in general
SMES with significant innovation activities and in particular the beneficiaries of the SME instrument. The services will be provided in the current Enterprise Europe Network in the
year 2014 and as distinct element of the Enterprise Europe Network (2015-21. To that end
the action is broken down in two elements I. Service provision in 2014 In 2014, under the Enterprise Europe Network established for the period 2008-2014 2000
SMES across Europe shall receive a 7-day service package that includes an innovation management capacity assessment, a gap analysis and the provision of 5 days of targeted
services to address recognised gaps. The assessment could be based on the IMPÂ rove methodology or methodologies already introduced in the regions that comply with the
definition of innovation management and the elements of an innovation management system as in CEN technical specification CEN/TS 16555-1. For beneficiaries of the Horizon 2020
the Enterprise Europe Network consortia. In each consortium, Network partners willing to HORIZON 2020 †WORK PROGRAMME 2014-2015
framework partnership agreement of the Enterprise Europe Network consortium Type of action: Grants to identified beneficiaries-Coordination and support actions
the coordinators of the 2008-14 Enterprise Europe network projects on behalf of the regional and national consortia.
amounts is provided on the Enterprise Europe Network website (http://een. ec. europa. eu Timeframe: First quarter of 2014
2015/16 will be the first phase of operation of a renewed Enterprise Europe Network. The legal base for the COSME programme foresees that the Enterprise Europe Network could be
used to deliver actions addressing SMES from other EU programmes under the condition that these programmes provide the necessary additional funding.
The Enterprise Europe Network for the period 2015-21 will be established through an open call for proposals to be published
This open call will include the requirement †Provision of services to enhance innovation management capacity of SMES, in particular to the beneficiaries of the SME instrument†in
and its services in the regional ecosystem of SME support in order to minimize market distorting effects.
operations of the Enterprise Europe Network under COSME. The eligible costs of the action are restricted to the staff costs of the qualified staff members and indirect costs at the standard
Specific grant under the framework partnership awarded to the Enterprise Europe Network following the 2014 call under COSME
of SMES receiving the services as compared to a control group. Innovation processes will be conducted more efficient and more effectively
capacity assessment and support services in all regions across Europe. In an increasing number of regions the initial introduction in the context of the described action will lead to
-priced by the high daily rates paid by large enterprises for high-quality consulting. In order to address these market failures,
supporting since late 2012 the launch phase of the not-for-profit IMPÂ rove-Academy by
Several Member States have integrated services provided by the IMPÂ rove academy in their national/regional SME support system or expressed their interest to do so in the future
stable environment with highly qualified staff The IMPÂ rove European Innovation Management Academy has the potential to assist the
delivery of the coaching and mentoring services related to the SME instrument in three respects: First, by providing a capacity building environment for the innovation advisors (staff
of Enterprise Europe Network) that work in regions with a weakly developed consulting base and no own assessment and consulting tools;
second by providing SMES (including beneficiaries of the SME instrument) access to an international innovation management
and the †services enhancing the innovation management capacity of SMES€ HORIZON 2020 †WORK PROGRAMME 2014-2015
beneficiaries of the SME instrument and the services †enhancing the innovation management capacity of SMES€ Furthermore the support provided would secure the quality of the
capacity assessment and consulting services in all regions across Europe. In an increasing number of regions the initial introduction in the context of the Enterprise Europe Network of
the described action should lead to integration of the toolbox in regional innovation support The IMPÂ rove Academy is requested to provide such support for regional integration as part
3-Capturing innovation impulses from emerging economies During the next decades growth of the world economy will be concentrated in emerging
economies with a small but steeply rising purchasing power of individuals, compared to European standards.
An increasing number of multinational companies orient their product and service innovation activities towards the needs of clients in emerging economies and
identify new business opportunities for such product even in mature markets. Govindarajan 20 documented many such cases
and called this strategic process †reverse innovation†The objective of this action is to develop tools and methods for European innovation and
SME internationalisation support agencies to provide better services to their clients that allow them to capture the potential of reverse innovation
preferences in emerging economies, guides to cooperation with local science, technology and innovation agents, tools to support the enterprise in identifying gaps and building-up internal
capacities for reverse innovation and others. The tools and methodologies shall be developed for the Commission under a service contract.
and services that are attractive to customers and can make a business stand out among the competition.
However, the lack of design management skills is a significant barrier to the wider adoption and integration of design into
incubators. Making such support services available more widely will improve business†ability to use design as a driver for innovation.
This calls for improvement in the design innovation competencies of business-development organisations, incubators and other
intermediaries in all EU Member States and Associated Countries The objective of this action is to create the capacity to deliver support for design-driven
design-driven innovation among business development organisations, incubators and other intermediaries ï Development of support material for the intermediary organisations, including
Enterprise and industrial innovation opportunities, in terms of products, services and organisational innovation, and innovation processes are getting more diverse by the
Even in the enterprises themselves, in particular in SMES, the concept of innovation is focused often overly on product and technological innovation while strategic
responses to the opportunities and needs of European businesses innovation. Special emphasis is placed on delivering concrete policy recommendations on how to scale up the potential of
Associated Countries and between the relevant stakeholders (National authorities and support services). ) Awareness and training material shall be produced based on cases studies for
agencies in charge of designing and/or delivering innovation support programs for (i) training their staff working with SME;(
Enterprises no longer want to exploit only knowledge developed at home in foreign markets, but seek to source new
To capture the growth opportunities notably in developing countries and emerging economies enterprises innovate specifically for these markets building on local expertise and
inventiveness. Seizing an opportunity in third countries can, at the same time, result in a remarkable business success also in the home market and globally.
This development is mainly driven by large enterprises and especially multinational firms, but not exclusively
More and more young, fast-growing SMES are established with an international business concept("Born Globals")that rely on an international innovation network.
Many opportunities remain untapped. An international conference in 2015 will launch a debate and collect evidence on how European
It shall bring together all relevant stakeholders to discuss how SMES can benefit from the dynamics and opportunities of international R&i
activities and networks and how they can be supported to engage in globalised innovation processes. SMES shall be encouraged to internationalise research and innovation activities
has been set up to provide stakeholder input on the overall Horizon 2020 scientific and technological strategy, with respect to maximising the SME relevance and impact of the
policies and supporting various groups of stakeholders is excluded from the delegation to EASME and will
be implemented by the Commission services 22 This activity directly aimed at supporting the development and implementation of evidence base for R&i
policies and supporting various groups of stakeholders is excluded from the delegation to EASME and will
be implemented by the Commission services HORIZON 2020 †WORK PROGRAMME 2014-2015 Innovation in SMES
9†Assessing the Investment Potential of SMES Emerging from Phase I of the SME Instrument
This action will establish a group of investment specialists, operating in a personal capacity to assess the investment potential of SMES emerging from Phase I of the SME Instrument
24 The work of the expert group will be essential to get a better overview of the investment
-readiness landscape in Europe, to ensure that entrepreneurs are prepared better to negotiate effectively with potential investors, to increase the number of investments made into early
-stage firms and to ensure a greater commercialisation of scientific knowledge in Europe The experts concerned will be qualified highly, with specialist expertise in the field of
financial instruments such as bankers, venture capital (VC) and other risk-capital fund managers, business angels, and individuals working in corporate VC, family offices
accelerators and incubators. They will be selected on the basis of objective criteria. In order to attract experts of sufficiently high calibre,
This action is linked to an investment readiness measure (Call H2020-BIR-2014 in the Access
processes and services developed by industry, SMES and first time industry applicants This study will assess to what extent the pilot has been implemented in 2015, its first year, in
the impact of the Programme in terms of new products/processes/services introduced into the market two years after the project's completion.
products/processes/services, difficulties faced to go to the market. Moreover, the study will analyse the complementarities in terms of impacts for the participants in Eurostars-1 projects
Corporate communication see Part 17 of the work programme 0. 03 of which half from 02.040203 and half
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