Synopsis: Entrepreneurship: Entrepreneurship:

4. 2. 1 Entrepreneurship...36 4. 2. 2 Access to finance...39 4. 2. 3 Internationalisation...

-Eurostat Entrepreneurship Indicators Programme found that in 2006, the USA were ahead of most European countries for which data were available

Entrepreneurship: Certified coaching may help grow SMES and cross the â€oechasm†between pilot markets and mass markets.

4) Entrepreneurship, access to finance, SME internationalisation, as well as opportunities and risks of sectoral policy approaches are dealt special issues with here

European and national policy approaches as well as specific issues related to entrepreneurship, access to finance, internationalisation and industry focus.

entrepreneurship/SMES (most relevant), economic and public policy, and innovation ï Research in publications lists of major relevant public organisations such as the OECD and business

-cation track record in the fields of entrepreneurship and innovation These experts had agreed to review drafts of this policy brief

Articles about high-growth SMES in entrepreneurship journals 2008 †2010 For this Policy Brief, the volumes of 2008 †2010 of major economic journals were scanned for articles about

The most notable initiative to make international data on entrepreneurship available may be the joint OECD-Eurostat Entrepreneurship Indicators Programme (EIP) launched in 2006.

Some key findings from the EIP are presented in the following, supplemented by data from other sources

A population survey of the Global Entrepreneurship Monitor 2010 in 21 innovation-oriented countries asked whether starting a company is considered an attractive professional option and whether successful

apply to high-growth SME policies but to entrepreneurship policy in general: Economic research can as yet

what entrepreneurship policies are particularly conducive. 47 While many authors are cautious about entrepreneurship policy interventions,

some argue that â€oegovernmental pol -icy for promoting technological entrepreneurship can contribute to the vitalisation of the national economy

through the generation of new jobs and innovationâ€. 48 Among the most prominent studies about policies for high-growth enterprises are the ones by the OECD

The authors conclude that â€oethe time for generic entrepreneurship policy has passed, and new focus and so

SMES Policy High-Growth Entrepreneurship Policy Policy Goals Objectives in relation to entrepreneurs Entice more people to become

-ists, entrepreneurship organisations, technology transfer offices, and the private nonprofit organisation Con -nect70 which provides free advice and coaching to small businesses with high growth potential

4. 2. 1 Entrepreneurship Overview of entrepreneurship policies Entrepreneurship is the act of starting or growing a company,

so that entrepreneurship policies can be de -fined as political measures to support the start or growth of a company.

Hence policies to support high -growth SMES are a special part of entrepreneurship policies. Both general entrepreneurship policies and

high-growth entrepreneurship policies may use instruments related to the â€oeinnovation and growth triangle†as described in section 2. 3,

i e. they may be related to facilitating access to resources, incentives and markets The approaches for fostering high-growth SMES identified in the course of research for this Policy Brief focus

on measures facilitating access to finance, foreign markets and human resources. Access to finance and foreign markets will be discussed more detailed below in sections 4. 2. 2 and 4. 2. 3. Examples of policies for

easing access to human resources include the following ï The SPRING programme of the government of Singapore offers several human resources related

95 See http://ec. europa. eu/enterprise/entrepreneurship/financing/publications documents. htm 96 See OECD (2010), p. 11.

amount of entrepreneurship is. We do not know enough to answer this fundamental question, much less to

South korea Entrepreneurship (start-up and growth of SMES) Yes Singapore Internationalisation of SMES Yes Canada SMES€ access to finance Yes

policies for entrepreneurship, SME innovation and Policies for high-growth innovative SMES v1. 6 54

Entrepreneurship policies Recent activities to foster business start-ups In order to mitigate the negative effects of the economic crisis

ï the venture businessmen†s special lecture programmes on entrepreneurship at universities ï the youth start-up education programme

'Entrepreneurship and SMES in Southeast asia'.'Singapore: Seng Lee Press 2004 ï Economic Stimulus and Expansionary Budgets:

1) new entrepreneurship projects, with innovative technological ideas;( (2) projects to upgrade traditional industry, aimed at developing new technology or products;(

entrepreneurship, access to finance and internationalisation Enhanced entrepreneurship policies Establishing a network of certified coaches across Europe

There have been several initiatives to establish professional coaching networks for SMES in Europe, also by

Entrepreneurship policies may not have to consider the question how to identify SMES with high growth po

Thus, entrepreneurship policy may, more basically, have to seek to ensure that there are entrepreneurs who are able to generate companies

-tion of serial entrepreneurship, policy can use various instruments, and the European commission can take a role.

social context, is likely to make a difference for high-growth entrepreneurship. †Balancing SME policies with economic policies at large

Entrepreneurship theory and practice, Vol 34, No. 2, pp. 289-316 Acs, Zoltan J.;Mueller, Pamela (2008:

Discussion Papers on Entrepreneurship, Growth and Public Policy; Max Planck Institute of Economics Ahmad, Nadim;

Paper prepared for the International Consortium on Entrepreneurship (ICE) Meeting 22-23 february 2007, Copenhagen, Denmark

Public policy support for entrepreneurship. In Industry and Innovation, Vol. 11, Issue 3, pp. 167-191

Global Entrepreneurship Monitor 2007 Global Report on High-Growth Entrepreneur -ship. GERA: London. Available at http://www. gemconsortium. org/download. asp?

Frontiers of Entrepreneurship Research, Volume 28, Issue 18 Bianchi, Carmine; Winch, Graham W. 2009: Supporting value creation in SMES through capacity building

Global Entrepreneurship Moni -tor (GEM) Länderbericht Deutschland. Hannover/Nuremburg Policies for high-growth innovative SMES v1. 6

Final Evaluation of the Entrepreneurship and Inno -vation Programme. Framework Service contract for the Procurement of Studies and other Supporting

Main characteristics of technological entrepreneurship and the im -pact of governmental policies in Korea. In:

International Journal of Entrepreneurship and Innovation Management, Vol. 12, Nos. 3-4, pp. 311-329

Entrepreneurship Theory and Practice, Vol. 32, Issue 3, pp. 779-790 Murray, Gordon; Hyytinen, Ari;

Growth Entrepreneurship and Finance. In: Ministry of Education and the Ministry of Employment and the Economy:

Entrepreneurship Theory and Practice, Vol. 32, Issue 3, pp. 507-528 OECD, Organisation for Economic Cooperation and Development (2009:

Measuring Entrepreneurship. A Collection of Indicators. 2009 Edition. OECD-Eurostat Entrepreneurship Indicators Programme OECD, Organisation for Economic Cooperation and Development (2010a:

SMES, entrepreneurship and in -novation. OECD Studies on SMES and Entrepreneurship OECD, Organisation for Economic Cooperation and Development (2010b:

Measuring Entrepreneurship The OECD-Eurostat Entrepreneurship Indicators Programme. By Mariarosa Lunati, Jeroen Meyer zu Schlochtern and Gueram Sargsyan.

OECD Statistics Brief, November 2010, No. 15 OECD, Organisation for Economic Cooperation and Development (2010c:

High-Growth Enterprises: What Governments Can Do to Make a Difference, OECD Studies on SMES and Entrepreneurship, OECD

Publishing OECD, Organisation for Economic Cooperation and Development/Eurostat (2005: Oslo Manual. Guide -lines for collecting

and interpreting innovation data. The Measurement of Scientific and Technological Activities. Third edition. A joint publication of OECD and Eurostat

Global Entrepreneurship and the Successful Growth Strategies of Early-Stage Companies. A World Economic Forum Report in collaboration with Stanford university

The study team scanned the following entrepreneurship journals and other journals for articles about high

Top level entrepreneurship journals Public policy journals 1 Journal of Business Venturing 2 Entrepreneurship Theory & Practice

3 Small Business Economics 4 Journal of Small Business Management 1 Cato 2 Journal of Public Policy and Management

Level 2 entrepreneurship journals Top-level general journals 1 International Journal of Entrepreneurial Venturing 2 Journal of Small Business and Entrepreneurship

3 International Journal of Entrepreneurship and Innovation Management 4 International Small Business Journal 5 Journal of Developmental Entrepreneurship

6 Venture capital 7 International Journal of Entrepreneurship 8 Journal of Enterprising Culture 9 Small Business and Enterprise Development

1 Harvard Business Review 2 California Management Review 3 Sloan Management Review 4 Long Range Planning

5 Growth and Change Exhibit A-1 lists articles in top level or level 2 scientific entrepreneurship journals dealing with high-growth

SMES in 2008-2010. Full references are included in the Reference section of this Policy Brief

Articles on high-growth SMES in entrepreneurship journals 2008-2010 Year Author (s) Journal/Article title

2009 Harms/Ehrmann Firm-level entrepreneurship and performance for German Gazelles 2009 Bianchi/Winch Supporting value creation in SMES through capacity building and innovation initia

Journal of Small Business and Entrepreneurship 2010 Baughn et al Labor Flexibility and the Prevalence Of high-Growth Entrepreneurial Activity

International Journal of Entrepreneurship and Innovation Management 2010 Zhou et al Entrepreneurial innovation problems associated with the dynamic growth of univer

2010 Littunen/Niittykangas The rapid growth of young firms during various stages of entrepreneurship 2008 Zhang et al A quantitative analysis of the characteristics of rapid-growth firms and their entre

inspire, and accelerate high-growth entrepreneurship throughout the nation.(.President Obama has called on both the federal government and the private sector to

in the region, offering a cluster for academia, business and entrepreneurship •Development of a range of skills and innovation capacity

by linking academia with entrepreneurship and foreign direct investment. This will complement additional IDA Ireland industrial lands to the east of the Knowledge Campus

the knowledge economy in the region, offering a cluster for academia business and entrepreneurship •Strong cities and towns are needed to support a competitive business environment,

strong third and fourth-level education sector in the region will be a strong driver of innovation and entrepreneurship

foreign and indigenous companies, stimulating entrepreneurship and enabling companies based in Ireland to grow and target international markets.

Entrepreneurship 17. Provide clarity on the availability of business supports to potential entrepreneurs, the role of each

B. Supporting Knowledge Transfer from academia, Foreign Direct Investment and Entrepreneurship throughout the region by the development of the Waterford Knowledge Campus and outreach third and

entrepreneurship and research, and provide role models for elderpreneurship, establishing new systems to draw on the expertise and experience

way as to stimulate innovation and entrepreneurship We propose •A major development of the European Investment

technology and entrepreneurship will stimulate long-term growth and thereby change our economy and society. The Panel has worked

is also about innovation, entrepreneurship and creative destruction †and not just about competitive regulation and investor

Innovation and entrepreneurship continue to disrupt the economy, thereby sometimes fundamentally changing activities and moving the economy in new directions

stimulating innovation and entrepreneurship †through the direction or governance of the overall system. Policy should be designed to

stimulate entrepreneurship. â€oemeasures include tax breaks for companies, initiatives intended to bridge liquidity gaps (e g. ensure banks

promotion of startups and entrepreneurship and directing government procurement to young or smaller fi rms while also ensuring the

entrepreneurship, public procurement for innovations, and synchronization of services and hardware in public services Perhaps one can say that our view is that public

for knowledge intensive entrepreneurship that embraces a far wider and more diverse set of people across the EU

promotion of innovation, internationalisation and entrepreneurship Pillar 2 Pillar 3 Pillar 4 Leading sectors Emerging activities

ï§Entrepreneurship ï§Eco-innovation green economy ï§Non-technological innovation ï§Training and talent

towards the promotion of innovation, internationalisation and entrepreneurship Each of these objectives corresponds to a pillar of action

promotion of innovation, internationalisation and entrepreneurship Pillar 2 Pillar 3 Pillar 4 Leading sectors Emerging activities

P. 2. Entrepreneurship The establishment and growth of new companies is a source of economic development and

support entrepreneurship are varied many and P. 2. 1. Culture, training and talent Measures to promote entrepreneurship

and attract international entrepreneurial talent. For example -To bring the world of business and entrepreneurship to secondary and tertiary education in order

to encourage entrepreneurial vocations amongst young people -To improve the training received by entrepreneurs -To raise awareness about the value of business and entrepreneurship as a source for the

generation of wealth and employment P. 2. 2. Legal and Regulatory Framework The difficulties in establishing companies

entrepreneurship. Moreover, certain regulations (on safety, labour, etc. whose requirements increase as companies become larger,

Entrepreneurship and business growth are complex functions that require knowledge and skills both inside and outside companies.

ï§To decrease legal barriers to entrepreneurship ï§To simplify legal and contractual procedures for entrepreneurship in knowledge centres

ï§To increase connections within the entrepreneurial ecosystem ï§To improve the opportunities for newly established companies to obtain financing

promotion of innovation, internationalisation and entrepreneurship Pillar 2 Pillar 3 Pillar 4 Leading sectors Emerging activities

ï§Entrepreneurship ï§Eco-innovation green economy ï§Non-technological innovation ï§Training and talent

towards the promotion of innovation, internationalisation and entrepreneurship Each of these objectives corresponds to a pillar of action

promotion of innovation, internationalisation and entrepreneurship Pillar 2 Pillar 3 Pillar 4 Leading sectors Emerging activities

P. 2. Entrepreneurship The establishment and growth of new companies is a source of economic development and

support entrepreneurship are varied many and P. 2. 1. Culture, training and talent Measures to promote entrepreneurship

and attract international entrepreneurial talent. For example -To bring the world of business and entrepreneurship to secondary and tertiary education in order

to encourage entrepreneurial vocations amongst young people -To improve the training received by entrepreneurs -To raise awareness about the value of business and entrepreneurship as a source for the

generation of wealth and employment P. 2. 2. Legal and Regulatory Framework The difficulties in establishing companies

entrepreneurship. Moreover, certain regulations (on safety, labour, etc. whose requirements increase as companies become larger,

Entrepreneurship and business growth are complex functions that require knowledge and skills both inside and outside companies.

ï§To decrease legal barriers to entrepreneurship ï§To simplify legal and contractual procedures for entrepreneurship in knowledge centres

ï§To increase connections within the entrepreneurial ecosystem ï§To improve the opportunities for newly established companies to obtain financing

existing assets through novel entrepreneurship 1. Education: learning to be entrepreneurial 2. Raising awareness: motivation

Support for bio-entrepreneurship with Genoma Espaã a. R&d firms with a high technological level on the international scene

innovation and entrepreneurship is at the heart of Europe 2020 and a crucial part of Europe's response to the economic crisis.

one to encourage entrepreneurship. On the contrary, these two policies are mutually reinforcing without strong entrepreneurship, the strategy of smart specialisation will fail because of a deficit

in the entrepreneurial knowledge needed to feed and nurture this strategy How: Setting in motion regional change

Entrepreneurship: Favourable conditions for equity investment, business angels and venture capitalists business environment favourable to the creation of new SMES;

coverage of training on entrepreneurship and creative problem-solving; autonomy and transparency of education and research organisations;

stimulation of entrepreneurship/management of risk and uncertainty; market formation mobilisation of resources; and legitimation.

•Entrepreneurship stimulation packages •Global talent attraction in targeted new sectors •Promotion of participation of public and

•Entrepreneurship and spin-off support (business plans competitions, regional venture capital funds •Incentives for regionally-relevant public

•Entrepreneurship support (networks of individuals, training courses, brokerage with business angels, specialised seed capital funds, etc

•Innovation and entrepreneurship culture promotion •Supply-chain management initiatives to reduce fragmentation •Innovation-oriented public procurement

entrepreneurship promotion events •Develop latent demand for innovation innovation vouchers, placement of students in SMES

Entrepreneurship and incubation Internationalisation Competitive Advantage †M-Porter Industrial districts 67 Clusters and smart specialisation

Entrepreneurship is necessary to make sure that innovation ideas are turned into sustained growth and quality jobs

facilitating innovation and promoting entrepreneurship. Cohesion Policy in fact provides the largest financial Community support to SMES through financial engineering instruments such as

•supporting entrepreneurship spirit and enterprise creation and development •enhancing innovation support for existing SMES

o promote entrepreneurship including specific target groups o improve access to finance for SMES in the form of equity and debt

design, public services, e-education, e-inclusion, e-skills, entrepreneurship, digital literacy, e -content, creativity, culture, living labs, smart buildings and neighbourhoods, smart cities, trust

'Promoting entrepreneurship, ''Developing new business models for SMES','Improving the urban environment ''Developing Business incubators,'Supporting the physical and economic regeneration of urban and rural areas and

entrepreneurship in CCIS, the support to urban regeneration in which the cultural component (notably cultural infrastructure) traditionally plays a key role, the development

form part of the Entrepreneurship and Innovation Programme (EIP), one of the three specific programmes under the CIP.

grass roots, social enterprise and social entrepreneurship activities, poor diffusion and little scale -up of good practices,

Social Entrepreneurship Funds. 169 DG Enterprise has mobilised CIP funds for social innovation. CIP funds will create a social

•entrepreneurship and the innovation capabilities of SMES, for instance by facilitating the diffusion and adoption of technologies, incl.

There is a strong focus on intensifying promotion of entrepreneurship and the scaling of Irish owned firms, further developing Ireland†s proposition for FDI in the

•Entrepreneurship is associated typically with innovative new firms competing with, and ultimately displacing, obsolete existing firms

correlation between entrepreneurship and economic performance in terms of growth, firm survival, innovation, employment creation, technological

5 Action Plan †The European Agenda for Entrepreneurship, European commission, COM (2004 6 acknowledges the importance of both services and manufacturing activities to Ireland†s future

There is a strong focus on intensifying promotion of entrepreneurship and the scaling of Irish owned firms, further developing Ireland†s proposition for FDI in the

•Entrepreneurship is associated typically with innovative new firms competing with, and ultimately displacing, obsolete existing firms

correlation between entrepreneurship and economic performance in terms of growth, firm survival, innovation, employment creation, technological

5 Action Plan †The European Agenda for Entrepreneurship, European commission, COM (2004 6 acknowledges the importance of both services and manufacturing activities to Ireland†s future

and a weak culture of entrepreneurship •Main opportunities for future regional development 1) Large-scale infrastructures (e g.,

-driven entrepreneurship (e g.,, through fiscal and financial mechanisms, support for firm -initiated RDI projects. The response of the

ï§Entrepreneurship has favorable premises for development, as there is a growing diversity of human resources that are involved in constructing complex products.

adequate public policies for supporting entrepreneurship and SMES, there is high probability that the Romanian business ecosystem will become one of the most competitive and dynamic in the EU

facilitating the development of new economic activities through entrepreneurship and experimentation. 1 II. Romania†s West Region is developing a smart specialization strategy, assisted by the World

curricula on transversal competences like creativity, entrepreneurship and initiative will help young people to develop their full potential for innovation

entrepreneurship. In 2010, the last year for which firm level data from SBS dataset are available, gazelles

lack of a tradition of entrepreneurship and SMES during the communist period has been a hindrance to

the development of new economic activities through measures which support entrepreneurship and experimentation, the current chapter proposes areas for policy action both on a horizontal level

entrepreneurship, growth, innovation research and development, as well employment. This regional fund could support public-private infrastructure investments and

This poses the challenge of innovation and entrepreneurship (start-ups) as the two major challenges for the region's economic future, challenges that will be faced by the new innovation strategies

ï Cross-clustering capacity, entrepreneurship and the innovation capabilities of SMES and other strategic actions should be defined

i) Strategic actions fostering cross-clustering capacity, entrepreneurship and the innovation capabilities of SMES should be defined

Entrepreneurship in the large corporation: a longitudinal study of how established ï rms create breakthrough inventions

Venture capital, entrepreneurship, and economic growth. Rev. Econ. Stat. 93, 338†349 Shane, S.,2002. Selling university technology:

OECD Studies on SMES and Entrepreneurship SMES, Entrepreneurship and Innovation Welcome to the entrepreneurial economy:

small fi rms are playing an ever-increasing role in innovation, driven by changes in technologies and markets.

the environment for entrepreneurship and small fi rm development, and increasing the innovative capacities of enterprises.

developing entrepreneurship skills; and social entrepreneurship In addition, country notes present statistics and policy data on SMES, entrepreneurship and

innovation for 40 economies, including OECD countries, Brazil, China, Estonia, Indonesia, Israel the Russian Federation, Slovenia and South africa

SMES, Entrepreneurship and Innovation is part of the OECD Innovation Strategy, a comprehensive policy strategy to harness innovation for stronger and more sustainable growth and development

and to address the key global challenges of the 21st century. For more information about the OECD

SMES and Entrepreneurship in Poland (2010 Clusters Innovation and Entrepreneurship (2009 OECD Framework for the Evaluation of SME and Entrepreneurship Policies and Programmes (2007

S M E s, E ntrep reneurship and Inno vatio n ISBN 978-92-64-08031-7

85 2010 02 1 P: -HSTCQE=U UXV The full text of this book is available on line via these links

and Entrepreneurship SMES ENTREPRENEURSHIP AND INNOVATION O E C D S tu d ies o

N s M E s an d E ntrep ren eu rsh ip OECD Studies on SMES and Entrepreneurship

SMES, Entrepreneurship and Innovation ORGANISATION FOR ECONOMIC CO-OPERATION AND DEVELOPMENT The OECD is a unique forum where the governments of 30 democracies work together to

address the economic, social and environmental challenges of globalisation. The OECD is also at the forefront of efforts to understand

OECD Studies on SMES and Entrepreneurship ISSN 2078-0982 (print ISSN 2078-0990 (PDF Photo credits:

Entrepreneurship, SMES and Local Development, OECD), with support from Jonathan Potter (Senior Economist at the Centre) and Mariarosa Lunati (Senior Economist at the Centre, currently

responsible for Entrepreneurship Indicators and Business Statistics in the Statistics Directorate OECD The text was written by members of the Secretariat of the OECD Centre for Entrepreneurship

SMES and Local Development: specifically, Jonathan Potter (front and back material and Chapter 1 Mariarosa Lunati and Marco Marchese (Chapter 2), Marco Marchese and Jonathan Potter (Chapter 3

SMES, ENTREPRENEURSHIP AND INNOVATION Â OECD 2010 3 FOREWORD Foreword The combined forces of globalisation, technological progress and growing market demand have

Many areas are ripe for SME and entrepreneurship policy action, and fresh innovation policy is

and entrepreneurship are supported as part of broad national innovation strategies. Some countries are supporting clusters. New ways are being developed to help firms

SMES, ENTREPRENEURSHIP AND INNOVATION Â OECD 2010 5 knowledge flows: embedding new and small firms in streams of knowledge that will enable them to

entrepreneurship environments †the strength of local technology partners, the quality of local science-industry linkages, and so on †is critical to generating local knowledge spillovers that

A second course of policy action is to develop skills and capabilities for entrepreneurship and

Universities are increasingly providing entrepreneurship training, and this book establishes core principles in this area. The efforts of vocational training institutions and

But entrepreneurship education is confined not to the classroom or formal structures for learning. 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.

social entrepreneurship and social innovation. These fit well with the broader notion of innovation that governments are now

In highlighting the importance of SMES and entrepreneurship to innovation in the 21st century and the role of policy in responding to the challenges they face, this book functions as an important

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

The book is a flagship publication of the Centre for Entrepreneurship, SMES and Local Development of the OECD. It is intended to be part of a regular OECD series,

and analysis of the OECD€ s Working Party on SMES and Entrepreneurship and the Directing

SMES, ENTREPRENEURSHIP AND INNOVATION Â OECD 20106 ACKNOWLEDGEMENTS Acknowledgements The following experts comprised the Scientific Advisory Group that helped guide

Professor Jay Mitra, Director of the Centre for Entrepreneurship Research, Essex Business school, University of Essex, United kingdom and Scientific Advisor on

Entrepreneurship to the OECD Centre for Entrepreneurship, SMES and Local Development Professor Juan Roure, Professor of Entrepreneurship,

and Juan Luis Segurado, Senior Researcher on entrepreneurship and SME financing, at IESE Business school, University of

Navarra, Barcelona, Spain Professor Luc Soete, Director of UNU-MERIT (the United nations University †Maastrict

SMES, ENTREPRENEURSHIP AND INNOVATION Â OECD 2010 7 Aruna Deo, University of Western Sydney, Australia

Charles Wessner, National Academy of Science, Technology, Entrepreneurship and Innovation, USA David Wolfe, University of Toronto, Canada

the international conference on â€oesmes, Entrepreneurship and Innovation†held in Udine on 22-23 october 2009, organised by the OECD Centre for Entrepreneurship, SMES and

SMES, ENTREPRENEURSHIP AND INNOVATION Â OECD 20108 ACKNOWLEDGEMENTS Local Development and the Udine Chamber of commerce. The contributions of the

participants are acknowledged gratefully as are the contributions of those who prepared background papers for the conference:

and accepted by the delegates to the OECD€ s Working Party on SMES and Entrepreneurship

SMES, ENTREPRENEURSHIP AND INNOVATION Â OECD 2010 9 This book has Statlinks2 A service that delivers Excelâ files

What is the role of SMES and entrepreneurship in innovation?..32 Policy implications...38 Plan of the book...

Chapter 2. SMES, Entrepreneurship and Innovation: An Overview by Country...45 Introduction...46 Australia...48

SMES, ENTREPRENEURSHIP AND INNOVATION Â OECD 2010 11 Poland...90 Portugal...92 Slovak Republic...94

How knowledge affects entrepreneurship...132 The systemic approach to innovation...134 The geographical clustering of knowledge-intensive activities...

Chapter 4. Entrepreneurship Skills...163 The importance of entrepreneurship skills for SMES and start-ups...164

Skills for entrepreneurship...165 How are acquired entrepreneurship skills?..167 Local skills ecosystems...180 Policy recommendations...

181 Notes...183 Bibliography...183 Chapter 5. Social Entrepreneurship and Social Innovation...185 Introduction...186

Social entrepreneurship...188 Social innovation...195 Preliminary recommendations...205 Notes...207 Bibliography...208 Annex 5. A1.

Definitions...212 Annex A. Policy Recommendations: Strengthening Innovation through SMES and Entrepreneurship...216 SMES, ENTREPRENEURSHIP AND INNOVATION Â OECD 201012

TABLE OF CONTENTS Glossary...219 ••†¢Tables 3. 1. Business birth rate in HTM clusters...142

3. 2. Ranking of HTM clusters based on the composite indicator...143 3. 3. Business birth rate in KISA clusters...

143 3. 4. Ranking of KISA clusters based on the composite indicator...143 3. 5. KTOS at a glance in Europe and the United states...

Definitions of social entrepreneurship...212 5. A2. Definitions of social innovation...214 Figures 3. 1. Distribution of HTM firms in the European union (Quantiles based on LQS) 137

SMES, ENTREPRENEURSHIP AND INNOVATION  OECD 2010 13 SMES, Entrepreneurship and Innovation  OECD 2010

Executive Summary Innovation is one of the most fundamental processes underpinning economic growth, the driver of growth in output per unit of labour and capital invested,

and entrepreneurship in new ventures is itself an important development. Whereas in the past innovation policy worked through investments in research

entrepreneurship (which typically generates new SME entities but occasionally also â€oeborn large†firms) and innovations in existing SMES play an important role

â Sets out the role of SMES and entrepreneurship in innovation and the drivers of and

â Presents a set of country-level data on SMES, entrepreneurship and innovation performance, and a review of major policies and new policy developments in the field

innovative entrepreneurship â The participation of new and small firms within global and local knowledge flows, and

social innovation and social entrepreneurship have given all rise to a new â€oeentrepreneurial economyâ€, as opposed to the â€oemanaged economy†of the past

SMES, ENTREPRENEURSHIP AND INNOVATION Â OECD 201016 EXECUTIVE SUMMARY shares of total activity accounted for by each of the sub-categories of micro, small-and

SMES, ENTREPRENEURSHIP AND INNOVATION Â OECD 2010 17 EXECUTIVE SUMMARY The second thematic chapter examines the issue of skills.

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

ambition of the institutions, 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 should also be put in place surrounding the entrepreneurship courses.

Entrepreneurship is also increasingly provided in vocational education and training and schools. For example 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 As well as gaps in external provision of entrepreneurship training, in-house training of

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

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

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

The final thematic chapter concerns social entrepreneurship and social innovation Defining social entrepreneurship is given both challenging

the newness of the concept and differences in how it is conceived across countries, and important for the provision of

SMES, ENTREPRENEURSHIP AND INNOVATION Â OECD 201018 EXECUTIVE SUMMARY entrepreneurship is that it aims to provide innovative solutions to unsolved social problems through

some form of business. It often goes hand in hand with social innovation processes. Social entrepreneurship is thought in fact best of as a vehicle and agent of social innovation

although it is not the only one. Examples include individual social entrepreneurs, such as scientist Victoria G. Hale who founded the Institute For one World Health, collective

Like social entrepreneurship, social innovation has blurred boundaries. In global terms however, social innovation is about social change in response to social needs and challenges.

The main recommendation of the book is that policies to strengthen entrepreneurship and increase the innovation capabilities of SMES should be one of the main planks of government

Furthermore, governments should target SMES and entrepreneurship as a major potential source of new jobs in the recovery from recession.

entrepreneurship. It should stress actions in four main areas (see Annex A, pp. 216-217

1. Promoting conducive entrepreneurship cultures and framework conditions 2. Increasing the participation of new firms and SMES in knowledge flows

4. Improving the environment for social entrepreneurship and social innovation Favourable entrepreneurship cultures and framework conditions are the foundation of innovative

entrepreneurship and social innovation. This covers a range of issues and fields, including securing stable macroeconomic policies, well-designed mainstream policies, enabling

regulatory frameworks and tax regimes and positive attitudes to entrepreneurs and entrepreneurship. The following key actions are recommended in this area

â Foster positive attitudes in society to business start up and growth, including through education and the media

SMES, ENTREPRENEURSHIP AND INNOVATION Â OECD 2010 19 EXECUTIVE SUMMARY â Ensure that the specific needs

and conditions of entrepreneurship and SME activity are taken into account in framework conditions and regulations affecting business

â Strengthen knowledge-based entrepreneurship by providing advice and training to start-up entrepreneurs who have strong technological knowledge

SMES, ENTREPRENEURSHIP AND INNOVATION Â OECD 201020 EXECUTIVE SUMMARY their efforts to upgrade their R&d,

Learning processes are at the core of entrepreneurship and SME innovation. Yet many emerging and potential business creators are lacking entrepreneurship skills such as in risk

assessment, strategic thinking, networking, and motivating. These skills are also critical to innovation by employees in existing SMES.

â Build up entrepreneurship education in universities and higher education institutions by smartly scaling-up, shifting the emphasis from business management to growth-oriented

entrepreneurship, introducing interactive teaching methods that incorporate practical experience and linking into wider networks including alumni networks and external

â Embed teaching of an entrepreneurship mindset in school curricula and accompany this with relevant teacher training and teaching materials designed for entrepreneurship

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

Encouraging social entrepreneurship and social innovation will help in this respect. The key recommendations are to

SMES, ENTREPRENEURSHIP AND INNOVATION Â OECD 2010 21 EXECUTIVE SUMMARY the early phases of social entrepreneurship projects.

Introduce public procurement measures that include socioenvironmental criteria. Experiment with innovative institutional arrangements between civil society, governments, financial institutions

â Undertake research into social entrepreneurship and social innovation and their main components in order to assess the needs of the various entities belonging to the sector

â Evaluate the impacts of social entrepreneurship and social innovation, using appropriate methods such as Social Return on Investment measures and balanced scorecards

and include social entrepreneurship in school and university curricula â Introduce social clauses in public procurement procedures to encourage involvement of social

SMES, ENTREPRENEURSHIP AND INNOVATION  OECD 201022 SMES, Entrepreneurship and Innovation  OECD 2010 Chapter 1

Introduction The introduction examines what is new about innovation in the 21st century and the role played by SMES and entrepreneurship.

An important shift has occurred from the â€oemanaged†to the â€oeentrepreneurial†economy, associated with a fall in the

â€oesilicon Valley Business Model†and social entrepreneurship and social innovation SMES and new business ventures are important players in this new environment

entrepreneurship and SME innovation. Priorities include inserting new and small firms in knowledge transfer networks, strengthening entrepreneurship skills, and

improving institutional environments for social entrepreneurship 23 1. INTRODUCTION The creation of new business ventures and innovation in existing small and medium-sized

enterprises (SMES) are critical parts of today†s innovation process, and should take a central

SME and entrepreneurship support is embedded not yet fully in innovation policy, and the requirements for effective policies in this area are still not well enough understood

But their numbers from the Entrepreneurship Indicators Project should not be exaggerated. They make up only a small minority of all

2009). 2 The Global Entrepreneurship Monitor survey in 53 countries suggests that only 6. 5%of new entrepreneurs are â€oehigh

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

SMES, ENTREPRENEURSHIP AND INNOVATION Â OECD 201024 with more rapid economic growth (Audretsch and Thurik, 2001;

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

opportunity for governments to use policies for entrepreneurship and SME innovation to meet productivity and job creation objectives at the same time

if still insufficient, recognition that entrepreneurship and small firm development promotes innovation and in so doing meets fundamental economic and

responsibility for entrepreneurship and SME policy or working in other policy domains such as education, innovation and social policy who could better realise their goals by

SMES and entrepreneurship This chapter sets the context. It focuses on two key questions and draws out the policy

than in the past on entrepreneurship and SMES, but institutions and policies have yet to fully adapt to this new reality.

capital and bringing about social entrepreneurship and social innovation The chapter starts by examining how global trends towards the knowledge

have increased the importance of SMES and entrepreneurship to innovation. It then discusses how SMES and entrepreneurship contribute to innovation by driving processes of

creative destruction, commercialising research, making break through and incremental innovations, participating in interactive learning processes and working in different modes

entrepreneurship is one of the foundations of innovation SMES, ENTREPRENEURSHIP AND INNOVATION Â OECD 2010 25

1. INTRODUCTION New and small firms have become critical innovation players because of their ability to recognise and exploit the commercial opportunities emerging from technological

importance of SMES and entrepreneurship in each 1. The Schumpeter Mark I regime. Schumpeter†s initial view was developed in the first decades

The key to understanding the renewed role of SMES and entrepreneurship in today†s economy is reduced the importance of economies of scale and scope in production

SMES, ENTREPRENEURSHIP AND INNOVATION Â OECD 201026 1. INTRODUCTION reducing the transaction costs associated with managing different parts of the production

entrepreneurship and SMES have moved up the agenda A number of further associated trends have changed the way that innovation is carried

innovation and social entrepreneurship. These are discussed in turn The knowledge economy One of the features of the transition from the 20th to the 21st century has been the

and entrepreneurship that have made them essential drivers of innovation, growth and employment creation The major feature of the knowledge economy is increased the importance of

SMES, ENTREPRENEURSHIP AND INNOVATION Â OECD 2010 27 1. INTRODUCTION Open and distributed innovation Innovation today involves going beyond exclusive reliance on internal ideas from

SMES, ENTREPRENEURSHIP AND INNOVATION Â OECD 201028 1. INTRODUCTION make a major difference, such as changes in product design or packaging, product

SMES, ENTREPRENEURSHIP AND INNOVATION  OECD 2010 29 1. INTRODUCTION Many non-technological innovations are small, â€oeeveryday†innovations.

There have been changes in the entrepreneurship environment in some very dynamic national and local innovation environments that have made it easier for new start-ups to

SMES, ENTREPRENEURSHIP AND INNOVATION Â OECD 201030 1. INTRODUCTION Social entrepreneurship and social innovation So far, the discussion has been oriented implicitly around the creation of economic

value added. But a further ramification of a broader notion of innovation is need the to

Social entrepreneurship is defined by its paramount logic of providing entrepreneurial business solutions to social challenges.

Social entrepreneurship and social innovation are of fundamental importance today because welfare states are changing. New social needs are emerging as people live longer

entrepreneurship is also now usefully entering fields where there is some public or private sector provision,

and entrepreneurship †represent an important change in the environment in which innovation takes place.

SMES and entrepreneurship are now critical players in a broader, more distributed innovation process. The next section looks more closely at the role that SMES and

entrepreneurship now play in innovation, before we examine the implications for policy SMES, ENTREPRENEURSHIP AND INNOVATION Â OECD 2010 31

1. INTRODUCTION What is the role of SMES and entrepreneurship in innovation The major function of SMES and entrepreneurship in innovation is the introduction of

advances in products, processes, organisational methods and marketing techniques into the economy. This occurs at two basic levels:

making breakthrough innovations that push forward the technological frontier; and adopting incremental innovations that bring the

Another function of SMES and entrepreneurship in innovation is to provide ideas and inputs to ideas generation that are exploited by large firms, universities/research

number of seminal authors have seen the connection between entrepreneurship and innovation (see also Ahmad and Seymour, 2008, p. 7

dynamic framework examining the relationship between entrepreneurship, innovation and economic growth. However, unlike Schumpeter (1934), who took the entrepreneur

SMES, ENTREPRENEURSHIP AND INNOVATION Â OECD 201032 1. INTRODUCTION ties to existing technologies. Large firms are seen to undertake more incremental

All of these authors identify essential roles for entrepreneurship in innovation: in both static and dynamic frameworks;

But in which settings is entrepreneurship to be found? There are many competing views and some degree of confusion in this area.

â Entrepreneurship is associated the phenomenon with entrepreneurial activity The definition of entrepreneurship is therefore not synonymous with either SMES or

business start-up, but reflects instead the human action behind innovation Entrepreneurial activity may occur in start-up enterprises, SMES, large firms or public

Our focus in both cases is on entrepreneurship and innovation †i e. the generation of value from the identification and exploitation of new products, processes

but with innovation-oriented entrepreneurship within new firms and SMES. It is oriented this innovation activity that promotes economic growth and solves

knowledge spillovers and entrepreneurship; large and small firm roles in breakthrough and incremental innovation; distributed and open innovation;

SMES, ENTREPRENEURSHIP AND INNOVATION Â OECD 2010 33 1. INTRODUCTION SMES that grow clearly have some productivity advantage that enables them to compete

entrepreneurship resource centres and entrepreneurship courses for researchers have been introduced (Mcnaughton, 2008 It should nonetheless be recognised that spin-off numbers are not high and represent

-SMES, ENTREPRENEURSHIP AND INNOVATION Â OECD 201034 1. INTRODUCTION offs high-growth firms on average, while they also tend to grow slowly (Lindholm-Dahlstrand

key drivers of entrepreneurship in their areas through spin-offs (84 spin-offs in Madison 64 spin-offs and 50 â€oefounder affiliates†in Oxfordshire;

Considering entrepreneurship as all venture start-ups, Audretsch et al. 2006) and Acs et al. 2004,2005, 2009) suggest that commercialisation of knowledge by new start-ups

explains part of the link between entrepreneurship and economic growth through their role in promoting knowledge spillovers.

entrepreneurship acting to convert knowledge into growth by exploiting spillover originating in a country†s R&d stock (Acs et al.

SMES, ENTREPRENEURSHIP AND INNOVATION Â OECD 2010 35 1. INTRODUCTION There is certainly evidence that small firms

SMES, ENTREPRENEURSHIP AND INNOVATION Â OECD 201036 1. INTRODUCTION between what is known as the knowledge exploration subsystem, in which universities

A key distinction needs to be made between the role of SMES and entrepreneurship in the Science, Technology and Innovation (STI) mode of innovation and the Doing,

SMES, ENTREPRENEURSHIP AND INNOVATION Â OECD 2010 37 1. INTRODUCTION Policy implications As is clear from the above discussion,

SMES and entrepreneurship are fundamental to the modern innovation process. Yet their place is established not fully in today†s

types of actions for entrepreneurship and SMES. This book seeks to correct the policy lens

â Entrepreneurship cultures. With entrepreneurship at a premium, it is important for policy to engender conducive cultures and attitudes where possible.

For example, education systems, the media and business support organisations can help foster entrepreneurial motivations (Potter et al.

â SME and entrepreneurship framework conditions. There should not be unnecessary obstacles to SMES and entrepreneurship in the institutions of the economy such as taxation, social

security, bankruptcy legislation, competition policy, product market regulation, labour market regulation, finance markets and intellectual property protection.

average tax rates on SMES relative to large firms can diminish SME and entrepreneurship activity (OECD, 2009

SMES, ENTREPRENEURSHIP AND INNOVATION Â OECD 201038 1. INTRODUCTION experiencing today. As the incumbent firm stock is contracted,

entrepreneurship is knowledge exchange between and among explorers and exploiters particularly for the exploitation of new, science-based knowledge.

SMES, ENTREPRENEURSHIP AND INNOVATION Â OECD 2010 39 1. INTRODUCTION organisational methods and marketing approaches.

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

entrepreneurship skills. This includes small business management skills (such as business planning and accounting), strategic skills (such as decision-making and

â Social entrepreneurship and social innovation. Entrepreneurship is not only about profit -making. Social entrepreneurship and social innovation are important features of a

broader vision of innovation and are expanding at a rapid pace. Institutional arrangements, however, are often not well adapted to the needs and modus operandi of

these organisations and approaches. National legal, financial and fiscal frameworks for social enterprises therefore need to be reviewed

entrepreneurship and innovation, but rather a form of â€oepriority list†for policy in adapting to new forms of innovation

and entrepreneurship, recognising both the potential of SMES and entrepreneurship in innovation and the barriers that policy needs to overcome

see Annex A The next chapters will examine the major issues in more detail. Evidence is presented on what can be measured in this new area.

and facilitating social entrepreneurship and social innovation Chapter 2 provides data on SME innovation performance and constraints across

SMES, ENTREPRENEURSHIP AND INNOVATION Â OECD 201040 1. INTRODUCTION example through embedding of foreign direct investment, attraction of highly-skilled

while entrepreneurship skills are needed to start successful firms, they are understood not well or supported.

Finally, Chapter 5 examines social innovation and social entrepreneurship. While there is a growing interest in the area,

gives some telling examples of social entrepreneurship and social innovation that offer inspiration for wider adoption.

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

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

Acs, Z.,D. Audretsch, P. Braunerhjelm and B. Carlsson (2005), â€oegrowth and Entrepreneurship: An Empirical Assessmentâ€, Centre for Economic policy Research Discussion Paper 5409, Centre for

SMES, ENTREPRENEURSHIP AND INNOVATION Â OECD 2010 41 1. INTRODUCTION Anyadike-Danes, M.,K. Bonner, M. Hart and C. Mason (2009), Measuring Business Growth:

Asheim, B. 2009), â€oeregional Endowmentâ€, in OECD (2009), Entrepreneurship and the Innovation System of the Agder Region, Norway, OECD LEED Programme report, Ch. 6, OECD, Paris, pp. 261-304

Audretsch, D.,M. Keilbach and E. Lehmann (2006), Entrepreneurship and Economic growth, Oxford University Press, Oxford

Audretsch D. and R. Thurik (2001), â€oelinking Entrepreneurship to Growthâ€, OECD Science, Technology and Industry Working papers, 2001/2, OECD, Paris

Entrepreneurship Education, Vol. 2, No. 2, pp. 143-166 Autio, E. 2007) Global Entrepreneurship Monitor 2007 Global Report on High-Growth Entrepreneurship

Babson College, Massachusetts Baum, J.,T. Calabrese and B. Silverman (2000), â€oedon†t Go It Alone:

Entrepreneurship, Small and Medium-Sized Enterprises and the Macroeconomy, Cambridge university Press, Cambridge Drucker, P. 1985), Innovation and Entrepreneurship:

Practice and Principles, Harper Business, New york SMES, ENTREPRENEURSHIP AND INNOVATION Â OECD 201042 1. INTRODUCTION

Erken, H p. Donselaar and R. Thurik (2008), â€oetotal Factor Productivity and the Role of Entrepreneurshipâ€, Jena Economic Research Papers 2008-19, Friedrich Schiller University and the

Entrepreneurship, Small and Medium-Sized Enterprises and the Macroeconomy, Cambridge university Press, Cambridge Henrekson, M. and D. Johansson (2008), â€oegazelles as Job Creators †A Survey and Interpretation of the

Kirzner, I. 1973), Competition and Entrepreneurship, The University of Chicago Press, Chicago, Illinois Kirzner, I. 1997), â€oeentrepreneurial Discovery and the Competitive Market Processâ€, Journal of Economic

in J. Potter (ed.),Entrepreneurship and Higher education, Ch. 10, pp. 235-254, OECD, Paris Lundvall, B. and S. Borrã s (1997), â€oethe Globalising Learning Economy:

Innovationâ€, in J. Potter (ed.),Entrepreneurship and Higher education, OECD, Paris Ch. 9, pp. 213-234

Entrepreneurship and Higher education, Ch. 11, pp. 255-234-269, OECD, Paris NESTA (2009), The Vital 6 Per cent.

SMES, ENTREPRENEURSHIP AND INNOVATION Â OECD 2010 43 1. INTRODUCTION OECD (2006b), The SME Financing Gap.

Entrepreneurship Outlook, OECD, Paris, pp. 127-142 Potter, J. ed.)(2008), Entrepreneurship and Higher education, OECD, Paris

Potter, J. and G. Miranda (eds. 2009), Clusters, Innovation and Entrepreneurship, OECD, Paris Potter, J.,M. Marchese and A. Hofer (forthcoming, 2010), Local Strategies for Entrepreneurship and Small

Business Development, OECD, Paris Powell, W. and S. Grodal (2005), â€oenetworks of Innovatorsâ€, in J. Fagerberg, D. Mowery and R. Nelson

eds.),), The Oxford Handbook of Innovation, Ch. 3, Oxford university Press, Oxford, pp. 56-85 Romer, P. 1986), â€oeincreasing Returns and Long run Growthâ€, Journal of Political economy, Vol. 94

Entrepreneurship, Economic growth, and Policyâ€, in Z. Acs D. Audretsch and R. Strom (eds. Entrepreneurship, Growth,

and Public Policy, Ch. 10, Cambridge University Press, Cambridge, pp. 219-249 Williamson, O. 1975), Markets and Hierarchies:

SMES, ENTREPRENEURSHIP AND INNOVATION  OECD 201044 SMES, Entrepreneurship and Innovation  OECD 2010 Chapter 2

SMES, Entrepreneurship and Innovation: An Overview by Country This chapter presents information on policy initiatives to promote the creation of

innovative firms and encourage innovative activities in SMES in OECD members and accession and enlargement countries.

or to a major policy in the field of entrepreneurship, SMES and innovation. Examples are given of recent policy innovations that are of interest

2. SMES, ENTREPRENEURSHIP AND INNOVATION: AN OVERVIEW BY COUNTRY Introduction The following chapter presents key figures on the SME sector and the innovation

entrepreneurship and innovation activities in SMES. Information was collected by national 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

SMES, ENTREPRENEURSHIP AND INNOVATION Â OECD 201046 2. SMES, ENTREPRENEURSHIP AND INNOVATION: AN OVERVIEW BY COUNTRY

tly nal ect ns od in ess ns ses or ms ive has on to

state control, barriers to entrepreneurship, and barriers to trade and investment. The indicator â€oebarriers entrepreneurship†measures different regulations in the domain of entrepreneurship and is composed

three sub-indicators: â€oeadministrative burdens to the creation of new firms†(low-level indicators a administrative burdens for corporations, administrative burdens for sole proprietor firms, sector-spec

+SMES, ENTREPRENEURSHIP AND INNOVATION  OECD 2010 47 2. AUSTRALIA Australia Ausindustry Ausindustry is the Australian government†s principal business programme delivery division in its

SMES, ENTREPRENEURSHIP AND INNOVATION Â OECD 201048 2. AUSTRALIA Australia Notes: 1. As%of all firms within size class. 2. As%of innovating firms. 3. Index scale of 0-6 from least to most restrictive

SMES, ENTREPRENEURSHIP AND INNOVATION Â OECD 2010 49 2. AUSTRIA Austria In Austria, a number of linked policies work in unison to foster entrepreneurship and SME innovation

Among these are schemes to encourage high-tech research in small firms, technology transfer, co -operative research and innovation, patenting, and first time innovation

academic research and business and to enhance the potential for start-ups by anchoring entrepreneurship as an interesting academic exit option.

SMES, ENTREPRENEURSHIP AND INNOVATION Â OECD 201050 2. AUSTRIA Austria A. Structural indicators on enterprise population, 2007

SMES, ENTREPRENEURSHIP AND INNOVATION Â OECD 2010 51 2. BELGIUM Belgium Belgian policy to promote innovative entrepreneurship

or innovation activities is designed largely and delivered at the regional level, aside from elements captured in the national Lisbon Reform Programme

of the academic research base, on supporting entrepreneurship (regional entrepreneurship action plans) and on providing access to finance (business angel networks.

%SMES, ENTREPRENEURSHIP AND INNOVATION Â OECD 201052 2. BELGIUM Belgium A. Structural indicators on enterprise population, 2007

SMES, ENTREPRENEURSHIP AND INNOVATION Â OECD 2010 53 2. CANADA Canada National Research Council of Canada Industrial Research Assistance program

SMES, ENTREPRENEURSHIP AND INNOVATION Â OECD 201054 2. CANADA Canada A. Structural indicators on enterprise population, 2008

SMES, ENTREPRENEURSHIP AND INNOVATION Â OECD 2010 55 2. CZECH REPUBLIC Czech republic Entrepreneurship and enterprise innovation policy in the Czech republic is anchored institutionally

within the Ministry of Industry and Trade. The major public policy targeted at stimulating innovation -based growth of Czech firms is implemented through the European Regional Development Fund-co-financed

entrepreneurship policy. There are seven priority threads to the programme, six of which focus on different areas of public intervention in the enterprise sector with the overall aim of improving the competitiveness of

SMES, ENTREPRENEURSHIP AND INNOVATION Â OECD 201056 2. CZECH REPUBLIC Czech republic A. Structural indicators on enterprise population, 2007

SMES, ENTREPRENEURSHIP AND INNOVATION Â OECD 2010 57 2. DENMARK Denmark With the Danish Globalisation Strategy, the Danish government has created a comprehensive

innovation, research and entrepreneurship. For 2010 the funds allocated to initiatives in the Strategy exceeds DKK 8. 5 billion.

SMES, ENTREPRENEURSHIP AND INNOVATION Â OECD 201058 2. DENMARK Denmark A. Structural indicators on enterprise population, 2007

SMES, ENTREPRENEURSHIP AND INNOVATION Â OECD 2010 59 2. FINLAND Finland In Finland, support for innovative entrepreneurship and the innovation activities of SMES is based on

a systemic policy approach. The Finnish Funding Agency for Technology and Innovation (Tekes) provides well-established programmes aimed to encourage SME participation in cooperative research

%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.

SMES, ENTREPRENEURSHIP AND INNOVATION Â OECD 201060 2. FINLAND Finland A. Structural indicators on enterprise population, 2007

%SMES, ENTREPRENEURSHIP AND INNOVATION Â OECD 2010 61 2. FRANCE France During the 1980s the Agence Nationale de Valorisation de la Recherche, ANVAR, created in 1974 to promote

entrepreneurship and SME innovation in the country. These poles are associations of enterprises and research and training centres that share a development strategy implemented through joint projects.

SMES, ENTREPRENEURSHIP AND INNOVATION Â OECD 201062 2. FRANCE France A. Structural indicators on enterprise population, 2007

SMES, ENTREPRENEURSHIP AND INNOVATION Â OECD 2010 63 2. GERMANY Germany With the so-called High-tech Strategy for Germany, from August 2006 onwards the German

and further improved the overall policy environment to foster high-tech entrepreneurship and SME development. To do so the government joined together with the Kfw banking group and the industrial

The first, Culture of Entrepreneurship, aims at promoting 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

SMES, ENTREPRENEURSHIP AND INNOVATION Â OECD 201064 2. GERMANY Germany A. Structural indicators on enterprise population, 2007

SMES, ENTREPRENEURSHIP AND INNOVATION Â OECD 2010 65 2. GREECE Greece The National Strategic Reference Framework 2007-2013, co-funded by the European Regional

Programmes are the main tools for improving competitiveness and entrepreneurship and fostering innovation. The total of EUR 732 million, part of which goes to innovative start-ups,

threads of the five regional operational programmes related to entrepreneurship and digital convergence The OPCE provides for a good number of measures,

of which the most relevant for entrepreneurship includes support of a broad range of infrastructures (clusters, large-scale research and innovation

e g. the youth and women†s entrepreneurship Creation †Support to New Innovative Enterprises In the 2000-07 programming period the General Secretariat for Research and Technology of the

SMES, ENTREPRENEURSHIP AND INNOVATION Â OECD 201066 2. GREECE Greece A. Structural indicators on enterprise population, 2007

SMES, ENTREPRENEURSHIP AND INNOVATION Â OECD 2010 67 2. HUNGARY Hungary In Hungary, the total expenditure on research and development was HUF 245.7 billion in 2007;

SMES, ENTREPRENEURSHIP AND INNOVATION Â OECD 201068 2. HUNGARY Hungary A. Structural indicators on enterprise population, 2007

SMES, ENTREPRENEURSHIP AND INNOVATION  OECD 2010 69 2. ICELAND Iceland Icetec †Icelandic Technological Institute

SMES, ENTREPRENEURSHIP AND INNOVATION Â OECD 201070 2. ICELAND Iceland A. Structural indicators on enterprise population, 2005

SMES, ENTREPRENEURSHIP AND INNOVATION Â OECD 2010 71 2. IRELAND Ireland Creating a leading innovative economy has been identified as a key priority of The irish government

SMES, ENTREPRENEURSHIP AND INNOVATION Â OECD 201072 2. IRELAND Ireland A. Structural indicators on enterprise population, 2007

SMES, ENTREPRENEURSHIP AND INNOVATION Â OECD 2010 73 2. ITALY Italy Promoting the design of large innovative industrial projects is one of the most important recent

SMES, ENTREPRENEURSHIP AND INNOVATION Â OECD 201074 2. ITALY Italy A. Structural indicators on enterprise population, 2007

SMES, ENTREPRENEURSHIP AND INNOVATION Â OECD 2010 75 2. JAPAN Japan Small Business Innovation Research

entrepreneurship and innovation in SMES. A programme unique to Japan is the Support for Development of

SMES, ENTREPRENEURSHIP AND INNOVATION Â OECD 201076 2. JAPAN Japan A. Structural indicators on enterprise population, 2007

SMES, ENTREPRENEURSHIP AND INNOVATION Â OECD 2010 77 2. KOREA Korea Small and Medium Business Administration (SMBA

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

SMES, ENTREPRENEURSHIP AND INNOVATION Â OECD 201078 2. KOREA Korea A. Structural indicators on enterprise population, 2006

SMES, ENTREPRENEURSHIP AND INNOVATION Â OECD 2010 79 2. LUXEMBOURG Luxembourg National Credit and Investment Society

including the entrepreneurship network 1, 2, 3, Go, which helps link entrepreneurs together to encourage the dissemination of best practices;

SMES, ENTREPRENEURSHIP AND INNOVATION Â OECD 201080 2. LUXEMBOURG Luxembourg A. Structural indicators on enterprise population, 2007

SMES, ENTREPRENEURSHIP AND INNOVATION Â OECD 2010 81 2. MEXICO Mexico AVANCE In 2003 Mexico started operating AVANCE,

to advance the entrepreneurship culture of the country through formal education; Strategic Alliances and Innovation Networks for Competitiveness, to support the collaboration of industry and academia for

SMES, ENTREPRENEURSHIP AND INNOVATION Â OECD 201082 2. MEXICO Mexico A. Structural indicators on enterprise population, 2003

SMES, ENTREPRENEURSHIP AND INNOVATION Â OECD 2010 83 2. THE NETHERLANDS The netherlands Innovation Voucher A major programme considered very successful in The netherlands is the so-called Innovation Voucher

SMES, ENTREPRENEURSHIP AND INNOVATION Â OECD 201084 2. THE NETHERLANDS The netherlands A. Structural indicators on enterprise population, 2007

SMES, ENTREPRENEURSHIP AND INNOVATION Â OECD 2010 85 2. NEW ZEALAND New zealand Technz Technz is a business investment programme designed to support companies and people undertaking

SMES, ENTREPRENEURSHIP AND INNOVATION Â OECD 201086 2. NEW ZEALAND New zealand A. Structural indicators on enterprise population, 2008

%SMES, ENTREPRENEURSHIP AND INNOVATION Â OECD 2010 87 2. NORWAY Norway Commercialisation of R&d The Commercialisation of R&d (FORNY) programme has been developed by the Research Council of

SMES, ENTREPRENEURSHIP AND INNOVATION Â OECD 201088 2. NORWAY Norway A. Structural indicators on enterprise population, 2006

SMES, ENTREPRENEURSHIP AND INNOVATION Â OECD 2010 89 2. POLAND Poland The Innovative Economy Operational Programme 2007-2013 is the main vehicle in Poland for pursuing the

SMES, ENTREPRENEURSHIP AND INNOVATION Â OECD 201090 2. POLAND Poland A. Structural indicators on enterprise population, 2007

SMES, ENTREPRENEURSHIP AND INNOVATION Â OECD 2010 91 2. PORTUGAL Portugal INOFIN Improved access to financing for entrepreneurs and SMES is implemented a priority through the

capital, seeks to encourage innovation and entrepreneurship, and contributes to facilitating technology transfer. The demand side includes universities, incubators, development agencies and other regional

SMES, ENTREPRENEURSHIP AND INNOVATION Â OECD 201092 2. PORTUGAL Portugal A. Structural indicators on enterprise population, 2007

SMES, ENTREPRENEURSHIP AND INNOVATION Â OECD 2010 93 2. SLOVAK REPUBLIC Slovak Republic National Agency for Development of SMES (NADSME

SMES, ENTREPRENEURSHIP AND INNOVATION Â OECD 201094 2. SLOVAK REPUBLIC Slovak Republic A. Structural indicators on enterprise population, 2007

SMES, ENTREPRENEURSHIP AND INNOVATION Â OECD 2010 95 2. SPAIN Spain Inno-Empresa The Inno-Empresa programme 2007-13 replaced the previous SME Consolidation and Competitiveness

Entrepreneurship Programme. Inno-Empresa is budgeted with EUR 75 million per year; the main sources of financing are the Spanish Ministry of Industry, Tourism and Trade (EUR 500 million), the Autonomous

SMES, ENTREPRENEURSHIP AND INNOVATION Â OECD 201096 2. SPAIN Spain A. Structural indicators on enterprise population, 2007

SMES, ENTREPRENEURSHIP AND INNOVATION Â OECD 2010 97 2. SWEDEN Sweden National policy addressing innovative entrepreneurship

and/or innovation activities of SMES is based on mix of direct support programmes, run by different governmental agencies.

which includes ALMI †Sweden†s SME and Entrepreneurship Agency VINNOVA (Swedish Governmental Agency for Innovation Systems;

entrepreneurship and SMES. Part of this support is furnished by ALMI, which provides information and financing (with a budget of approximately SEK 150 million,

A third important government agency addressing innovative entrepreneurship is the Innovationsbron. The main task is to increase the commercialisation of research results and ideas.

SMES, ENTREPRENEURSHIP AND INNOVATION Â OECD 201098 2. SWEDEN Sweden A. Structural indicators on enterprise population, 2007

SMES, ENTREPRENEURSHIP AND INNOVATION Â OECD 2010 99 2. SWITZERLAND Switzerland The CTI (Swiss Federal Innovation Promotion Agency) is the most important innovation promotion

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

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

CHF 3. 7 million of this amount is used for funding Venturelab and about CHF 7. 3 million for the Start-up programme

inspire students for entrepreneurship. Services for students include semester courses to orient the students for entrepreneurship and workshops where important tools for prospective entrepreneurs are

taught. For existing start-ups, Venturelab gives five-day intensive courses and advisory services. Finally Venturelab offers entrepreneurs the possibility to participate in a networking workshop in Boston

SMES, ENTREPRENEURSHIP AND INNOVATION Â OECD 2010100 2. SWITZERLAND Switzerland A. Structural indicators on enterprise population

SMES, ENTREPRENEURSHIP AND INNOVATION Â OECD 2010 101 2. TURKEY Turkey Young Entrepreneur Development Programme

entrepreneurship, stimulate start-up of new technology-based firms among university students and graduates, and create new jobs.

policy measure for promoting technology-based entrepreneurship began in 2008 under the R&d Support Law No. 5746.

The pioneering programme in the field of innovative entrepreneurship/SME innovation is the Support Programme for R&d and Technological Innovation of KOSGEB, the Small and Medium Sized Industry

SMES, ENTREPRENEURSHIP AND INNOVATION Â OECD 2010102 2. TURKEY Turkey A. Structural indicators on enterprise population, 2006

SMES, ENTREPRENEURSHIP AND INNOVATION Â OECD 2010 103 2. UNITED KINGDOM United kingdom The United kingdom is the only country that has documented, twice, the scale of public funding for

SMES, ENTREPRENEURSHIP AND INNOVATION Â OECD 2010104 2. UNITED KINGDOM United kingdom A. Structural indicators on enterprise population, 2007

SMES, ENTREPRENEURSHIP AND INNOVATION Â OECD 2010 105 2. UNITED STATES United states Small Business Innovation Research (SBIR

SBIR programme encourages new entrepreneurship needed to bring innovative ideas from the laboratory to the market by providing scarce pre-venture capital funding on a competitive basis. Further,

SMES, ENTREPRENEURSHIP AND INNOVATION Â OECD 2010106 2. UNITED STATES United states A. Structural indicators on enterprise population

%SMES, ENTREPRENEURSHIP AND INNOVATION Â OECD 2010 107 2. BRAZIL Brazil Brazilian innovation policy is based on two pillars, namely the Industrial, Technological and External

entrepreneurship; incubators and technological parks; hiring of academic researchers by the private sector The Innovation Law supports all kind of activities involved in an innovative process.

SMES, ENTREPRENEURSHIP AND INNOVATION Â OECD 2010108 2. BRAZIL Brazil Notes 1. Czech republic, Hungary, Korea, Mexico, Poland, Slovak Republic, Turkey

A. Barriers to entrepreneurship, 2008 Index scale of 0-6 from least to most restrictive

SMES, ENTREPRENEURSHIP AND INNOVATION Â OECD 2010 109 2. CHILE Chile As a part of the government strategy to promote economic growth, a National Innovation for

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

Contigo (Chile undertakes with you. It contains 21 specific measures, which are divided into five areas

entrepreneurship innovation and training; and support to indebted entrepreneurs. The total resources committed for the

Two important innovation and entrepreneurship programmes are targeted specifically to SMES. One is Innova Chile, hosted by the Production Promotion Corporation (CORFO.

third line is Innovative Entrepreneurship, which supports potential businesses. Specific products are the provision of seed capital, support to business incubators and spin-off projects, technology promotion

SMES, ENTREPRENEURSHIP AND INNOVATION Â OECD 2010110 2. CHILE Chile Notes 1. Czech republic, Hungary, Korea, Mexico, Poland, Slovak Republic, Turkey

A. Barriers to entrepreneurship, 2008 Index scale of 0-6 from least to most restrictive

SMES, ENTREPRENEURSHIP AND INNOVATION Â OECD 2010 111 2. CHINA China The Torch Programme The Torch Programme was established in 1988 by the Chinese central government

The Torch Programme played an indispensable role in promoting entrepreneurship and start-up companies through its administrative arm and the university science parks and incubators.

SMES, ENTREPRENEURSHIP AND INNOVATION Â OECD 2010112 2. CHINA China Notes 1. Czech republic, Hungary, Korea, Mexico, Poland, Slovak Republic, Turkey

B. Barriers to entrepreneurship, 2008 Index scale of 0-6 from least to most restrictive

SMES, ENTREPRENEURSHIP AND INNOVATION Â OECD 2010 113 2. ESTONIA Estonia It is only since 2004,

and entrepreneurship has been launched in Estonia. Innovative, growth-oriented companies can now receive higher support grants/loans from

Estonian policy has given a great deal of attention to entrepreneurship awareness raising among key stakeholders, including entrepreneurs themselves, the general public, policy makers and even school

SMES, ENTREPRENEURSHIP AND INNOVATION Â OECD 2010114 2. ESTONIA Estonia A. Structural indicators on enterprise population, 2007

SMES, ENTREPRENEURSHIP AND INNOVATION  OECD 2010 115 2. INDIA India The Science and Technology Policy of 2003 was a landmark initiative in that it ended India†s historic

innovation and entrepreneurship Information technology (IT The development of the IT industry in India is lauded greatly by decision makers and researchers alike

and support innovation and entrepreneurship in this sector In 1998 the Indian Parliament passed legislation by way of an Electronic commerce Act,

SMES, ENTREPRENEURSHIP AND INNOVATION Â OECD 2010116 2. INDIA India Notes 1. Czech republic, Hungary, Korea, Mexico, Poland, Slovak Republic, Turkey

A. Barriers to entrepreneurship, India 2007 and OECD 2008 Index scale of 0-6 from least to most restrictive

SMES, ENTREPRENEURSHIP AND INNOVATION Â OECD 2010 117 2. INDONESIA Indonesia Access to financing is faced a problem by entrepreneurs of micro, small, and medium-sized

SMES, ENTREPRENEURSHIP AND INNOVATION Â OECD 2010118 2. INDONESIA Indonesia Notes 1. Czech republic, Hungary, Korea, Mexico, Poland, Slovak Republic, Turkey

A. Barriers to entrepreneurship, Indonesia 2007 and OECD 2008 Index scale of 0-6 from least to most restrictive

SMES, ENTREPRENEURSHIP AND INNOVATION Â OECD 2010 119 2. ISRAEL Israel Incubator programme The main Israeli programme promoting innovative entrepreneurship is the Incubator

programme, set up in 1991. The programme, managed by the Centre of Incubators for Technological Initiative, currently includes 26 such incubators, 22

SMES, ENTREPRENEURSHIP AND INNOVATION  OECD 2010120 2. ISRAEL Israel Notes: For technical reasons, these figures use Israel†s official statistics,

A. Barriers to entrepreneurship, 2008 Index scale of 0-6 from least to most restrictive

SMES, ENTREPRENEURSHIP AND INNOVATION Â OECD 2010 121 2. RUSSIAN FEDERATION Russian Federation Since mid-1990s the Russian government has taken initiatives to stimulate innovative activities of

SMES and innovative entrepreneurship. Presently, Russia does not yet have a comprehensive policy on innovative entrepreneurship and SME development,

but nevertheless several policy initiatives are being realised, among which: commercialisation support, venture financing, and infrastructure development.

in financing of infrastructure projects for innovative entrepreneurship Venture Funds In 2006 the Ministry for Economic Development launched a programme for regional venture funds in

SMES, ENTREPRENEURSHIP AND INNOVATION Â OECD 2010122 2. RUSSIAN FEDERATION A corrigendum has been issued for this page.

D. Barriers to entrepreneurship, 2008 Index scale of 0-6 from least to most restrictive

SMES, ENTREPRENEURSHIP AND INNOVATION Â OECD 2010 123 2. SLOVENIA Slovenia The Ministry of Higher education, Science and Technology (MHEST) and the Ministry of the Economy

Agency of the Republic of Slovenia for Entrepreneurship and Foreign Investments (PAEFI) has two main

SMES, ENTREPRENEURSHIP AND INNOVATION Â OECD 2010124 2. SLOVENIA Slovenia A. Structural indicators on enterprise population, 2007

SMES, ENTREPRENEURSHIP AND INNOVATION Â OECD 2010 125 statlink 2 http://dx. doi. org/10.1787/813553877374

SMES, ENTREPRENEURSHIP AND INNOVATION Â OECD 2010126 2. SOUTH AFRICA South africa Notes 1. Czech republic, Hungary, Korea, Mexico, Poland, Slovak Republic, Turkey

A. Barriers to entrepreneurship, South africa 2007 and OECD 2008 Index scale of 0-6 from least to most restrictive

SMES, ENTREPRENEURSHIP AND INNOVATION Â OECD 2010 127 2. SMES, ENTREPRENEURSHIP AND INNOVATION: AN OVERVIEW BY COUNTRY

ANNEX 2. A1 Notes on the Country Data The structural data on businesses presented in the chapter follow the International

SMES, ENTREPRENEURSHIP AND INNOVATION Â OECD 2010128 Sections G h i and K). Totals refer to Industry and Services,

2. SMES, ENTREPRENEURSHIP AND INNOVATION: AN OVERVIEW BY COUNTRY Austria: In Table A, for Number of enterprises, Industry includes NACE categories C, D, E

SMES, ENTREPRENEURSHIP AND INNOVATION Â OECD 2010 129 2. SMES, ENTREPRENEURSHIP AND INNOVATION: AN OVERVIEW BY COUNTRY

Luxembourg: In Table A, for Number of enterprises, Industry includes NACE categories C, D and E and Services includes categories G h i and K. For Total employment and for

SMES, ENTREPRENEURSHIP AND INNOVATION  OECD 2010130 SMES, Entrepreneurship and Innovation  OECD 2010 Chapter 3

Knowledge Flows Knowledge affects the market entry, market success and innovation potential of a firm.

The contribution of knowledge to entrepreneurship is understood best through a systemic approach to innovation, which differs from the linear approach by taking

How knowledge affects entrepreneurship Studies investigating the determinants of the entrepreneurial process have traditionally focused on either personal traits or external constraints.

the entrepreneurship literature, however, looks at the role of knowledge in facilitating business entry and performance.

gender and age as the key determinants of entrepreneurship; whereas Lazear (2005) finds that a variegated educational and occupational background increases the likelihood of

entrepreneurship, as does contract enforcement. Liquidity constraints and credit rationing undermine entrepreneurship, pushing wealthy people towards an entrepreneurial career

and deterring those without the necessary financial resources (Evans and Jovanovic, 1989 SMES, ENTREPRENEURSHIP AND INNOVATION Â OECD 2010132

The thread between the two strands of personal profiles and external constraints is the implicit assumption of a condition of market equilibrium, in which â€oeentrepreneurial

But for entrepreneurship to happen the values that 3. KNOWLEDGE FLOWS economic agents give to opportunities must necessarily be different.

Entrepreneurship can therefore be regarded as a process that finds new relationships between inputs and outputs by dealing with missing or incomplete

SMES, ENTREPRENEURSHIP AND INNOVATION Â OECD 2010 133 3. KNOWLEDGE FLOWS overshadows pre-entry market knowledge in determining the ability of a firm to be

Knowledge is crucial for entrepreneurship and triggers the business innovation process. SMES though, tend not to innovate alone but rather in collaboration with other

innovation is that the entrepreneurship and innovation performance of a locality, region or country will not only depend on the endogenous capacities of the firms but also on their

SMES, ENTREPRENEURSHIP AND INNOVATION Â OECD 2010134 3. KNOWLEDGE FLOWS capacity to codify and implement new knowledge into their business operations.

SMES, ENTREPRENEURSHIP AND INNOVATION Â OECD 2010 135 3. KNOWLEDGE FLOWS 2007b) shows, for instance, that ten leading regions in Europe account for more than one

The success of these clusters in entrepreneurship and innovation has in large part stemmed from strong local knowledge generation, diffusion and absorption capacities

indicators of their entrepreneurship vitality. However, they remain preliminary and exploratory and caution is advised in their interpretation given possible location, structural

SMES, ENTREPRENEURSHIP AND INNOVATION Â OECD 2010136 3. KNOWLEDGE FLOWS European union The first two maps show the agglomeration of HTM

SMES, ENTREPRENEURSHIP AND INNOVATION Â OECD 2010 137 3. KNOWLEDGE FLOWS science parks. Baden-WÃ rttemberg (e g.

SMES, ENTREPRENEURSHIP AND INNOVATION Â OECD 2010138 3. KNOWLEDGE FLOWS cluster around large metropolitan areas,

SMES, ENTREPRENEURSHIP AND INNOVATION Â OECD 2010 139 3. KNOWLEDGE FLOWS Consolidated clusters of high-tech manufacturing firms can be detected in a vast

SMES, ENTREPRENEURSHIP AND INNOVATION Â OECD 2010140 3. KNOWLEDGE FLOWS Figure 3. 6, based on the same methodology adopted for Figure 3. 4, highlights the

SMES, ENTREPRENEURSHIP AND INNOVATION Â OECD 2010 141 Mamy Crayon 3. KNOWLEDGE FLOWS Cluster rankings:

SMES, ENTREPRENEURSHIP AND INNOVATION Â OECD 2010142 3. KNOWLEDGE FLOWS Table 3. 2. Ranking of HTM clusters based on the composite indicator

SMES, ENTREPRENEURSHIP AND INNOVATION Â OECD 2010 143 3. KNOWLEDGE FLOWS The role of local knowledge flows for spatial agglomerations and local

SMES, ENTREPRENEURSHIP AND INNOVATION Â OECD 2010144 3. KNOWLEDGE FLOWS place between sectors that share competences, rather than within one specific sector.

which makes entrepreneurship a process that strongly hinges on knowledge spillovers (Acs et al. 2006 A form of knowledge flows:

SMES, ENTREPRENEURSHIP AND INNOVATION Â OECD 2010 145 3. KNOWLEDGE FLOWS In Europe the most reliable survey is carried out by Proton, the European knowledge

SMES, ENTREPRENEURSHIP AND INNOVATION Â OECD 2010146 3. KNOWLEDGE FLOWS the United kingdom or Denmark, where there is a more consolidated licensing tradition

Local knowledge flows are crucial to entrepreneurship and SMES in an innovation system as they strengthen the knowledge base and the absorptive capacity of local firms

SMES, ENTREPRENEURSHIP AND INNOVATION Â OECD 2010 147 3. KNOWLEDGE FLOWS 4 about patent grants and patent applications at the US Patent and Trademark Office

entrepreneurship Participate in transfer activities identify criteria for risk sharing support investments in R&d New financial services for R&d

SMES, ENTREPRENEURSHIP AND INNOVATION Â OECD 2010148 3. KNOWLEDGE FLOWS The reference is the priority date,

development and entrepreneurship in terms of potentially exploitable new products services and organisational methods Cross-border alliances

SMES, ENTREPRENEURSHIP AND INNOVATION Â OECD 2010 149 3. KNOWLEDGE FLOWS agreements for product or process development.

delivery of effective support instruments as a recent OECD review of entrepreneurship and SME support systems in various OECD regions shows (Potter, Marchese and Hofer

SMES, ENTREPRENEURSHIP AND INNOVATION Â OECD 2010150 3. KNOWLEDGE FLOWS that foreign multinationals are often less reluctant to allow spin-offs than normally

-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

innovative entrepreneurship and SME innovation by improving the flow of knowledge SMES, ENTREPRENEURSHIP AND INNOVATION Â OECD 2010 151

3. KNOWLEDGE FLOWS among agents involved in different activities. The concept recognises that the knowledge

strengthen SME and entrepreneurship performance and help open new growth trajectories and fend off lock ins and other systemic failures

SMES, ENTREPRENEURSHIP AND INNOVATION Â OECD 2010152 3. KNOWLEDGE FLOWS programmes are appropriate for later stages of business development in which equity

SMES, ENTREPRENEURSHIP AND INNOVATION Â OECD 2010 153 3. KNOWLEDGE FLOWS other research institutes can foster entrepreneurship by generating and diffusing

innovations and supplying highly skilled and entrepreneurial workforces to industry Indeed, the centrality of this role increases with the growing importance of knowledge

-SMES, ENTREPRENEURSHIP AND INNOVATION Â OECD 2010154 3. KNOWLEDGE FLOWS fertilising technologies, through a comprehensive approach in which two key

Adragna, S. and A. Lusardi (2008), â€oeexplaining International Differences in Entrepreneurship: The Role of Individual Characteristics and Regulatory Constraintsâ€, National Bureau of Economic Research

SMES, ENTREPRENEURSHIP AND INNOVATION  OECD 2010 155 3. KNOWLEDGE FLOWS Asheim, B. and M. Gertler (2005), â€oethe Geography of Innovation:

Auerswald, P. 2007), â€oethe Simple Economics of Technology Entrepreneurship: Market Failure Reconsideredâ€, in D. Audretsch,

Handbook of Research on Entrepreneurship Policy, Edward Elgar, Cheltenham, UK Bottazzi, L. and G. Peri (2003), â€oeinnovation and Spillovers in Regions:

Drucker, P. 1985), Innovation and Entrepreneurship, Harper collins, New york Duranton, G. and D. Puga (2005), â€oefrom Sectoral to Functional Urban Specialisationâ€, Journal of Urban

SMES, ENTREPRENEURSHIP AND INNOVATION  OECD 2010156 3. KNOWLEDGE FLOWS Malerba, F. 2002), â€oesectoral Systems of Innovation and Productionâ€, Research Policy, Vol. 31, pp. 247-264

OECD (2005), SME and Entrepreneurship Outlook, OECD, Paris OECD (2007a), Competitive Regional Clusters: National Policy Approaches, OECD, Paris

OECD (2008c), Entrepreneurship and Local Innovation Systems: The Case of Cantabria, OECD, Paris OECD (2009a), Innovation in Firms:

OECD (2009b), Entrepreneurship and the Innovative System of the Agder Region, Norway, OECD, Paris OECD (2009c), â€oeuniversities, Entrepreneurship and Innovationâ€, internal working document, Centre for

Entrepreneurship, SMES and Local Development, OECD, Paris OECD (forthcoming 2010a), High-Growth Enterprises: What Governments Can Do to Make a Difference

OECD, Paris Potter, J. ed.)(2008), Entrepreneurship and Higher education, OECD, Paris Potter, J. H. Marchese

and A. Hofer (forthcoming 2010), Local Strategies for Entrepreneurship and Small Business Development, OECD, Paris

Potter, J. and G. Miranda (eds. 2009), Clusters, Innovation and Entrepreneurship, OECD, Paris Piccaluga, A. and R. Pietrabissa (2009), International Dynamics of University-Industry Knowledge Transfer

paper presented at the OECD Conference â€oesmes, Entrepreneurship and Innovationâ€, Udine, Italy 22-23 october 2009, OECD LEED Programme, Paris

Pilat, D.,K. De Backer, E. Basri, S. Box and M. Cervantes (2009), â€oethe Development of Global Innovation

Shane, S. and S. Venkataraman (2000), â€oethe Promise of Entrepreneurship as a Field of Researchâ€

SMES, ENTREPRENEURSHIP AND INNOVATION  OECD 2010 157 3. KNOWLEDGE FLOWS ANNEX 3. A1 The â€oeorbis†Database

A wide range of entrepreneurship, economic performance and financial indicators can be calculated at the local level from the ORBIS database

SMES, ENTREPRENEURSHIP AND INNOVATION Â OECD 2010158 death rates. Moreover, ORBIS naturally tends to overestimate real entry rates compared to

SMES, ENTREPRENEURSHIP AND INNOVATION Â OECD 2010 159 3. KNOWLEDGE FLOWS The extent to which statistical biases affect indicators

SMES, ENTREPRENEURSHIP AND INNOVATION Â OECD 2010160 3. KNOWLEDGE FLOWS ANNEX 3. A2 The LISA Methodology

SMES, ENTREPRENEURSHIP AND INNOVATION Â OECD 2010 161 The LISA cluster maps developed for the USA provide a graphic representation of

SMES, ENTREPRENEURSHIP AND INNOVATION  OECD 2010162 SMES, Entrepreneurship and Innovation  OECD 2010 Chapter 4

Entrepreneurship Skills This chapter describes the role of entrepreneurship skills in driving successful new venture creation and putting innovative initiatives into action in SMES.

Also 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

provision of entrepreneurship skills. Policy recommendations are provided 163 4. ENTREPRENEURSHIP SKILLS The importance of entrepreneurship skills for SMES and start-ups

Learning processes are at the core of entrepreneurship and SME development. They are essential for the formation of a new business, its survival and growth as well as for the

upgrading of existing SMES. Recent studies strongly underline this connection and signal as one of the qualities of successful entrepreneurs an exceptional capacity to learn and acquire

knowledge from everywhere and everything that comes their way (Smilor, 1997; Minniti and Byrgave, 2001.

Successful entrepreneurs are, and this also applies to small business owners and SME managers, â€oejacks-of-all-trades†(Lazear, 2004:

The OECD defines entrepreneurship as human action in pursuit of the generation of value by identifying and exploiting new products, processes

entrepreneurship and applies to all of new firm founders, small business managers and SME workforces supporting introduction of innovations.

and this comes from entrepreneurship skills Three key questions guide the debate on entrepreneurship and SME learning and the

role of public policy: What skills are needed? How is the necessary learning and preparedness acquired?

How can entrepreneurship skills be fostered through government intervention? Entrepreneurship often appears to be spontaneous; there are numerous

examples of successful entrepreneurs who did not undergo any special training or are self -taught.

entrepreneurship by a lack of appropriate skills and behaviours. The evidence suggests that new entrepreneurs often face problems,

SMES, ENTREPRENEURSHIP AND INNOVATION Â OECD 2010164 economies (CEDEFOP, 2008a. The level of skills is expected also to increase.

Entrepreneurship skills will also be at a premium. These are not â€oebasic†skills; they are

4. ENTREPRENEURSHIP SKILLS system. Therefore, looking towards the skills scenario of 2020, it is time to give

entrepreneurship skills greater attention Skills for entrepreneurship1 â€oeskills†refers to the abilities and capacities of people who perform tasks demanded of

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

Entrepreneurship skills, as defined in Table 4. 1, are specific skills that are required for creating and running new business ventures or innovative projects in existing firms.

Entrepreneurship skills, which are part of this broad group, include two components related to innovation: an active component comprising the entrepreneur†s propensity to drive

) Entrepreneurship involves both the impulse to create and innovate and the recognition of innovation from

The requirements for successful entrepreneurship can be further unbundled into the three elements set out in Box 4. 1:

SMES, ENTREPRENEURSHIP AND INNOVATION Â OECD 2010 165 4. ENTREPRENEURSHIP SKILLS in ess ce ter

ced to ge t Table 4. 1. Classification of skills at work Source: OECD, 2010b, forthcoming

Entrepreneurship Specific skills for creating and running new business ventures and innovative projects in existing

SMES, ENTREPRENEURSHIP AND INNOVATION Â OECD 2010166 4. ENTREPRENEURSHIP SKILLS Entrepreneurship skills are considered here as converging,

because they require the integration of several other skills, with both a horizontal understanding of business

development and a vertical specialisation in one or more fields related to core competitive advantage. One of the definitional difficulties is that these skills are relevant not just to

workforce in entrepreneurship skills. For example, a recent survey of SMES in New zealand shows that entrepreneurship activities in the firm are the activities most linked with firmsâ€

skills upgrading initiatives (OECD, 2010b, forthcoming How are acquired entrepreneurship skills Entrepreneurship skills are understood best in relation to lifelong learning, where the

individual acquires skills through their life history. In formal education, entrepreneurship training can be provided at different levels, from primary and secondary schools, to

vocational colleges and tertiary and university education. The focus and objectives may of course vary.

Entrepreneurship education in schools tends to be about embedding an entrepreneurial mindset. The aim is to foster more positive attitudes to this career road

that students may carry with them into their later careers, making the decision to start or

Entrepreneurship teaching in higher education also seeks to do this, but may in addition seek to impart more technical-related skills such as in management and business

entrepreneurship skills provision both in the formal education system (focusing on higher 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 OECD work shows that third-level (higher education) entrepreneurship teaching

activities are increasing (Potter, 2008. Until recently, entrepreneurship education was very rarely provided. Now, however, it is a rapidly evolving field with emerging new approaches

that meet increased demand from students and the need for tailored teaching. More universities, faculties and students are becoming involved and the variety of content and

pedagogies is increasing. There are nonetheless some international differences in the extent and nature of entrepreneurship teaching provision, with North american

universities leading the way in introducing and refining approaches Survey work reported in Solomon (2008) examined the types of entrepreneurship

teaching offered in the United states. This showed that the most common courses in the broad field of entrepreneurship were in â€oeentrepreneurshipâ€, â€oesmall business managementâ€

and â€oenew venture creationâ€. In order, the most common methods of teaching methods were business plans, discussions, guest speakers, case studies and lectures by business

SMES, ENTREPRENEURSHIP AND INNOVATION Â OECD 2010 167 4. ENTREPRENEURSHIP SKILLS for entrepreneurship teaching are also often in place, with approximately one-third of

colleges and universities having an entrepreneurship centre, and one-third having an entrepreneurship professor or chair.

Management of entrepreneurship courses tended to be housed in existing academic departments (41%)or business schools (31%;%although entrepreneurship centres or departments of small business and entrepreneurship were

managing 23%of entrepreneurship courses Research comparing entrepreneurship education across universities from the United States, Canada and Denmark suggests that entrepreneurship education provision in US

universities is advanced relatively (Hoffman et al. 2008). ) Entrepreneurship education was compared among selected universities in the three countries, on five important

dimensions of teaching activities: educational scope (the breadth of programmes offered how courses are spread across undergraduate and postgraduate levels, etc.;

educational setup (the extent to which guest lecturers, practical experiences, private businesses, and experimental teaching activities are involved, etc.;

institutional characteristics (interaction between faculties, prioritisation of entrepreneurship, allocation of funding, incentives to students and teachers, etc.;

outreach (scope of university networks †co-operation with incubators, alumni networks, access to experienced practitioners, access to venture

capital) and evaluation (degree of monitoring and assessment of entrepreneurship activities). ) 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

outreach. The Danish universities were weaker on all dimensions. For example, at Stanford University and Cornell University in the United states, student participation in

entrepreneurship programmes was 15%and 20%respectively. In comparison, the participation rate at the Canadian universities was between 5%and 7,

%while none of the Danish universities reported participation rates above 2. 5 %Despite the rapid growth in entrepreneurship teaching in higher education, there are

a number of issues that need to be addressed in adapting universities to the needs of a

and experiential teaching methods in the entrepreneurship domain In terms of provision, while many universities now offer entrepreneurship teaching, the

numbers of students participating remains a small share. This is associated with two barriers. Firstly, entrepreneurship teaching is confined often to certain departments and

centres, in particular business and engineering schools and new university centres of entrepreneurship, whereas potential entrepreneurs come from a wide variety of disciplines

Secondly, entrepreneurship teaching is often not well rewarded, either for students or for staff. Courses are offered often to students as optional complementary modules with no

credits for their degrees. Teachers are pressed hard to deliver on their core programmes †the

Teaching approaches must also evolve to accommodate how entrepreneurship skills are best learned rather than be tethered to traditional classroom forms.

SMES, ENTREPRENEURSHIP AND INNOVATION Â OECD 2010168 4. ENTREPRENEURSHIP SKILLS entrepreneurial behaviours. The use of these methods can be promoted by greater

networking among universities and faculties. Inappropriate constraints to the participation of entrepreneurs in entrepreneurship teaching programmes are another challenge

Entrepreneurship support frameworks A recent OECD study in eastern Germany revealed that higher education institutions in the six eastern German regions (lã¤nder) are engaged actively in supporting

entrepreneurship not just through entrepreneurship teaching but also through support for enterprise start-ups by students and staff.

Indeed, entrepreneurship teaching can have a greater positive impact on the rate of new firm creation

if closely linked to start-up support. The eastern German universities either use government schemes, private sector

or are about to establish an entrepreneurship chair or a professorship More than two-thirds have established dedicated start-up support services, in the form of

entrepreneurship centres and technology transfer units, which offer would-be entrepreneurs and those already in the start-up process consultation and access to

entrepreneurship support. All of these developments demonstrate the importance given to the creation of new growth potential ventures out of universities

entrepreneurship support in universities across the following six areas â Strategy: There is clear role for public policy in â€oeopening up†universities towards their

Public kickoff funding for entrepreneurship support infrastructure is common to many OECD countries. Yet, it is the balance between a minimum long-term financing for

of entrepreneurship chairs and incubation facilities which proves to be successful â Support infrastructure: Universities will need to find their place in existing start-up and

entrepreneurship support systems. Networking and incentives for clear referral systems can be useful to increase the effectiveness and efficiency of start-up support and to

â Entrepreneurship education: The exchange of good practice in creative teaching methods allows for improvement and innovation.

development and the integration of entrepreneurship courses, such as creativity classes â Start-up support: A key success factor for university entrepreneurship support lies in

private sector collaboration. Universities can create a protected environment for nascent entrepreneurship. This can be an important stimulus for students and researchers to

make a first step towards the creation of a venture. Yet, in order to avoid â€oeover protectionâ€, early exposure to market conditions is advisable

SMES, ENTREPRENEURSHIP AND INNOVATION  OECD 2010 169 4. ENTREPRENEURSHIP SKILLS â Evaluation: Public policy organisations and universities will need to work â€oehand in handâ€

in developing a monitoring and evaluation system which demonstrates the socio -economic impact of university entrepreneurship support

and reveals needs for changes The work has developed also a criteria list of good practice across the six dimensions from

an assessment of existing literature and case studies of university entrepreneurship support. Policy makers and university management can use these criteria to self-assess

Box 4. 2. Entrepreneurship support in universities: Criteria for good practice Strategy 1. A broad understanding of entrepreneurship is a strategic objective of the university, and

there is top-down support for it 2. Objectives of entrepreneurship education and start-up support include generating

entrepreneurial attitudes, behaviour and skills, as well as enhancing growth entrepreneurship (both high-tech and low-tech 3. There are clear incentives and rewards for entrepreneurship educators, professors and

researchers, who actively support graduate entrepreneurship (mentoring, sharing of research results, etc 4. Recruitment and career development of academic staff take into account entrepreneurial

attitudes, behaviour and experience as well as entrepreneurship support activities Resources 1. A minimum long-term financing of staff costs and overheads for graduate

entrepreneurship is agreed as part of the university†s budget 2. Self-sufficiency of university internal entrepreneurship support is a goal

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

Support infrastructure 1. An entrepreneurship-dedicated structure within the university (chair, department support centre) is in place,

which closely collaborates, coordinates and integrates faculty -internal entrepreneurship support and ensures viable cross-faculty collaboration

2. Facilities for business incubation either exist on the campus or assistance is offered to gain access to external facilities

3. There is close co-operation and referral between university-internal and external business start-up and entrepreneurship support organisations;

roles are defined clearly Entrepreneurship education 1. Entrepreneurship education is integrated progressively in curricula and the use of

entrepreneurial pedagogies is advocated across faculties 2. The entrepreneurship education offer is communicated widely, and measures are

undertaken to increase the rate and capacity of take-up 3. A suite of courses exists,

which uses creative teaching methods and is tailored to the needs of undergraduate, graduate and postgraduate students

SMES, ENTREPRENEURSHIP AND INNOVATION Â OECD 2010170 4. ENTREPRENEURSHIP SKILLS Vocational education and training Vocational education and training (VET) is a type of task-oriented technical education

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

specialists. 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

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

entrepreneurship education 6. Results of entrepreneurship research are integrated into entrepreneurship education messages Start-up support 1. Entrepreneurship education activities and start-up support are integrated closely

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

4. Mentoring by professors and entrepreneurs is offered 5. Entrepreneurship support in universities is integrated closely into external business

support partnerships and networks, and maintains close relationships with firms and alumni Evaluation 1. Regular stocktaking and performance checking of entrepreneurship activities is

undertaken 2. Evaluation of entrepreneurship activities is formalised and includes immediate (post -course), mid-term (graduation),

and long-term (alumni and post-start-up) monitoring of the impact SMES, ENTREPRENEURSHIP AND INNOVATION Â OECD 2010 171

4. ENTREPRENEURSHIP SKILLS 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

promote entrepreneurship skills. 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

However, improving entrepreneurship skills in SMES through vocational education and training is challenging due to obstacles to SMES in

challenge of providing more relevant entrepreneurship teaching in vocational education therefore requires changes in programmes and pedagogy to focus on teaching the â€oehow toâ€

SMES, ENTREPRENEURSHIP AND INNOVATION  OECD 2010172 4. ENTREPRENEURSHIP SKILLS And more experiential learning methods should be developed †for example drawing on the

entrepreneurship skills created in drama, debating, drawing and networking exercises The literature also offers some suggestions about how vocational education and

training needs to be adapted to better meet the needs of SME workforces. Currently workforce development measures are not flexible enough to be fully taken up by SMES.

entrepreneurship and creativity in an SME. Owner-managers do not see themselves as having time to participate in long academic styled programmes

The need for people to have new skills for entrepreneurship is accompanied by a need for shifts in school curriculums and this is occurring slowly in many countries, encouraged

entrepreneurship. It is also based on the view that students who receive entrepreneurship education as part of their schooling show improved school attendance and educational

attainment, have increased problem-solving and decision-making abilities, improved interpersonal relationships, teamwork, money management and public speaking skills, are

â Introduce entrepreneurship as a key competence in school curricula â Ensure that the importance of entrepreneurship is reflected in teacher training

â Step up co-operation with the business community for entrepreneurship education at all levels The emphasis is therefore at three levels:

introducing entrepreneurship into the curriculum, developing teaching methods appropriate to the subject (such as virtual business creation games)

and drawing on entrepreneurs in the business community as resources for teaching. Furthermore, entrepreneurship teaching should not be separated

from the study of other disciplines, but incorporated into a wide range of teaching activities

SMES, ENTREPRENEURSHIP AND INNOVATION Â OECD 2010 173 4. ENTREPRENEURSHIP SKILLS A number of European countries have recognised already the benefits of an

entrepreneurship education and implemented policies to ensure that school students receive it (Cooney, 2009. In Finland for example, entrepreneurship education is a thematic entity, not

a subject. In 2004 the Finnish Ministry of Education produced an Action Plan for Entrepreneurship Education that covered all levels of the education system, and working

together with the Ministry of Trade and Industry appointed a working group entitled â€oefrom Higher education Institutes to Entrepreneurâ€.

The Ministry of Education also appointed an Entrepreneurship Steering Group to ensure that the agreed programme of action was properly

implemented. In Norway, entrepreneurship is included in the curricula at all levels, and three government departments are involved in its delivery (Ministry of Education and Research

Ministry of Trade and Industry and Ministry of Local government and Regional Development In addition to co-operation between ministries and directorates, there are also partnership

foster a culture for entrepreneurship. Scotland has launched also an entrepreneurship education called â€oedetermined to Succeed†(Box 4. 3

Box 4. 3. Scotland†s â€oedetermined to Succeed†entrepreneurship education strategy Scotland†s â€oedetermined to Succeed†entrepreneurship education strategy details the

actions that needed to be taken by the Scottish government to embed entrepreneurship into the national schooling system.

The strategy is part of a long-term drive to build an enterprise culture in Scotland that will give young people a better chance of realising

their full potential and will give the economy of Scotland the skills, new ventures and

SMES, ENTREPRENEURSHIP AND INNOVATION  OECD 2010174 4. ENTREPRENEURSHIP SKILLS Box 4. 3. Scotland†s â€oedetermined to Succeedâ€

entrepreneurship education strategy (cont â can generate and act upon original ideas â understand transitions throughout life and the importance of making connections

between past, present and future experiences 2) Confident individuals â have a â€oecan doâ€, â€oebe all you can be†attitude

occupations and entrepreneurship and their contributions to the economy and to society â have knowledge and understanding of wealth creation and wealth distribution both

In examining the different entrepreneurship education policies currently being pursued by different governments, it can be argued that the Scottish strategy is among the clearest

Further details of the Scottish strategy on entrepreneurship education can be found at www. ltscotland. org. uk/enterpriseineducation/index. asp

SMES, ENTREPRENEURSHIP AND INNOVATION Â OECD 2010 175 4. ENTREPRENEURSHIP SKILLS The European commission has assessed recently the degree to which entrepreneurship

has been included as a key competence in national curricula for secondary education in various European countries in line with the Oslo Agenda for Entrepreneurship Education in

Europe (European commission, 2007. It found that in several countries (including Spain Finland, Poland and the UK) entrepreneurship is recognised already a objective and is

embedded explicitly in national curricula, but that despite an increasing spread of elements of entrepreneurship in secondary teaching, only a small minority of countries have well

established entrepreneurship education in the curriculum. Embedding entrepreneurship further into school teaching will require in addition incentives and support to teachers

involved in entrepreneurship activities as well as support to nonprofit organisations that are active in this area Training in SMES

Studies of training outcomes have shown clearly the positive effect of general training by SMES. Examples are regular programmes to train new employees or potential team

leaders and project management and foreign language language training (Markowitsch and Hefler, 2007. However, encouraging SMES to train remains a key policy challenge

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

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

despite limited investment in formal training and strategic planning of training (Muller and Zenker, 2001.

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.

SMES, ENTREPRENEURSHIP AND INNOVATION Â OECD 2010 177 4. ENTREPRENEURSHIP SKILLS KISAS are embedded in many occupational profiles

and tasks performed at work, not only high-knowledge intensive tasks but also more routine, low-knowledge tasks

entrepreneurship and innovation. However, when opportunities are created, routine workers can also make an important contribution to transforming SME activities to a

of knowledge production is high †are an example of the sophisticated entrepreneurship skills that can be learned at work

SMES acquire knowledge and new entrepreneurship skills through formal (contractual and informal (networking) activities, where professionals interact with their embedded

Entrepreneurship policies should pay more attention to this way of developing entrepreneurship skills, however, so that measures can better correspond to how SMES

actually upgrade skills that are relevant to their production, operations and entrepreneurship processes One way of encouraging this would be to introduce innovation vouchers,

which enable SMES to purchase outside KISAS on a consultancy basis in support of an innovation

SMES, ENTREPRENEURSHIP AND INNOVATION Â OECD 2010178 4. ENTREPRENEURSHIP SKILLS Small business support There is a number of small-business-specific support programmes aimed at developing

entrepreneurship skills in SMES (although as yet there are no specific programmes supporting KISAS. In particular, the kinds of training offered by local chambers of commerce

and business associations, and the investment activity of local governments in private sector development, for instance through smart infrastructure such as HEI networked business

SMES, ENTREPRENEURSHIP AND INNOVATION Â OECD 2010 179 4. ENTREPRENEURSHIP SKILLS to participate in these activities on an informal basis and through interactions with

companies and organisations in their network. As such these activities, even if critical for the entrepreneurship and innovation process of the firm

and to upgrade professionals†skills, do not carry standard qualifications and cannot be labelled as standard training (Martinez

entrepreneurship skill formation policy also demands an appreciation of workforce development as an alternative to traditional approaches centred on the provision of

more fully in entrepreneurship training activities has received little attention in policy design. Although training can in principle be provided by experts from other countries or

entrepreneurship training cultures in SMES SMES, ENTREPRENEURSHIP AND INNOVATION Â OECD 2010180 4. ENTREPRENEURSHIP SKILLS

An example of an organisation providing entrepreneurship training in a local skills ecosystem is provided in Box 4. 4 below

Policy recommendations â Build up entrepreneurship education in universities and higher education institutions â Scale up, smartly. Increase the number of entrepreneurship courses and participating

students where there is evidence of success. Make sure that the entrepreneurship teaching fulfils high quality standards and is extended across subjects to reach a wide

range of potential entrepreneurs. Provide training, encouragement and support for staff embarking on entrepreneurship teaching activities.

Facilitate teaching activities for existing and former entrepreneurs â Encourage growth-oriented entrepreneurship. Shift emphasis from business manage

-ment to enterprise growth challenges, including finance and internationalisation Teach the skills required for growth including opportunity identification,

risk taking strategy making, leadership, negotiation, networking, building strategic alliances, and intellectual property protection â Introduce interactive teaching methods that incorporate practical experience

Encourage learning by doing in contrast to more traditional forms of academic learning. Introduce cross-functional problem-solving approaches that replicate the

bundle of activities and functions that need to be applied in entrepreneurship situations, rather than breaking up teaching into separate business functions as in

entrepreneurship courses. Expose students to entrepreneur role models, for example by using entrepreneurs as mentors, speakers and interview subjects.

â Development of SMES, especially in their start-up phase, and entrepreneurship development †training programmes for owners, managers and consultants in business

SMES, ENTREPRENEURSHIP AND INNOVATION Â OECD 2010 181 4. ENTREPRENEURSHIP SKILLS placements and consulting projects.

Develop case studies tailored to the environment that students will face â Link into wider networks.

support entrepreneurship programmes, for example by asking alumni to get involved in teaching, using them to support links to companies for placements,

-institution mobility of entrepreneurship teachers â Strengthen VET programmes for business founders, SME managers and SME workforces

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

â Include entrepreneurship activities in school curricula; develop interactive materials and activities and involve entrepreneurs and businesses;

and support to teachers involved in entrepreneurship activities â Reinforce training in SMES â Use these and other approaches to support the integration of new employees and the

launch projects to impart entrepreneurship skills across all occupations around product and process development initiatives

broaden the focus of entrepreneurship skills development projects to encompass all occupations and not just management;

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

entrepreneurship skills acquisition of SME workforces. Consider the use of Innovation Vouchers for this purpose

SMES, ENTREPRENEURSHIP AND INNOVATION Â OECD 2010182 4. ENTREPRENEURSHIP SKILLS â Create integrated training strategies combining training located in higher education

vocational education and training, knowledge-intensive activities performed by the firm and SME support programmes Note

Cooney, T. 2009), â€oewhat Entrepreneurship Skills are Important to Innovation in SMES and How Should

Entrepreneurship and Innovation, Udine, Italy, 22-23 october 2009, OECD LEED Programme, Paris Dawe, S. and N. Nguyen (2007), Education and Training that Meets the Needs of Small Business:

European commission (2007), â€oeassessment of Compliance with the Entrepreneurship Education Objective in the Context of the 2006 Spring Council Conclusionsâ€, Directorate General for

Gibb, A. 2009), â€oethe Small Business and Entrepreneurship Challenge to Vocational education Revolution or Evolution? â€, Paper presented at the OECD Conference on SMES, Entrepreneurship

and Innovation, Udine, Italy, 22-23 october 2009, OECD LEED Programme, Paris Gibb Dyer, W. Jr.

1993), â€oetowards a Theory of Entrepreneurial Careersâ€, Entrepreneurship Theory and Practice, Vol. 19, No. 2, pp. 7-21

Henry, C.,F. Hill and C. Leitch (2003), Entrepreneurship Education and Training, Ashgate, Aldershot Hoffman, A n. Vibholt, M. Larsen and M. Moffet (2008), â€oebenchmarking Entrepreneurship Education

across US, Canadian and Danish Universitiesâ€, in J. Potter (ed.),Entrepreneurship and Higher Education, OECD, Paris, Ch. 6, pp. 139-164

Itkonen, K. 2009), â€oedeveloping Entrepreneurship in Small Enterprises †The Succession Process Supported by Apprenticeship Training as a Context for Learning†in M.-L. Stenstrã m and P. Tynjã¤lã

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

SMES, ENTREPRENEURSHIP AND INNOVATION Â OECD 2010 183 4. ENTREPRENEURSHIP SKILLS Martinez-Fernandez, C. 2005), Knowledge Intensive Service Activities (KISA) in Innovation of Mining

Technology Services in Australia, University of Western Sydney, Sydney Martinez-Fernandez, C. and L. Martinez-Solano,(eds.

Minniti, M. and W. Byrgave (2001), â€oea Dynamic Model of Entrepreneurial Learningâ€, Entrepreneurship Theory and Practice, Vol. 25, No. 3, pp. 5-16

OECD (2005), SME and Entrepreneurship Outlook, OECD, Paris OECD (2006), The Role of Knowledge Intensive Activities (KISA) in Innovation, OECD, Paris

Potter, J. ed.)(2008), Entrepreneurship and Higher education, OECD, Paris Smilor, R. 1997), â€oeentrepreneurship: Reflections on a Subversive Activityâ€, Journal of Business Venturing

SMES, ENTREPRENEURSHIP AND INNOVATION  OECD 2010184 SMES, Entrepreneurship and Innovation  OECD 2010 Chapter 5

Social Entrepreneurship and Social Innovation The chapter outlines social entrepreneurship and social innovation before going on

to provide concrete examples. While it may be argued that these fields require better exploration and articulation, that does not mean that their role should be

underestimated. They have already proved to be effective tools to meet social challenges and needs and contribute to sustainable development.

5. SOCIAL ENTREPRENEURSHIP AND SOCIAL INNOVATION Introduction Social entrepreneurship and social innovation have garnered, in the past decade

particular attention from policy makers, academics, practitioners, and the general public Both are important tools to tackle social challenges

and in entrepreneurship, both â€oecommercial†(for-profit businesses pursuing as a primary objective economic value and its appropriation) and social (primarily

Social entrepreneurship and social innovation are part of the solution, as they both explicitly aim to provide innovative solutions to unsolved social problems,

Even if social entrepreneurship as an activity is developing quickly around the world Box 5. 1) and social innovations are appearing everywhere,

entrepreneurship tends to overlap with terms such as social economy, third sector, nonprofit SMES, ENTREPRENEURSHIP AND INNOVATION Â OECD 2010186

sector, social enterprise and social entrepreneur, some of which are also ill-defined and overlapping (see the Glossary at the end of the book.

entrepreneurship and social enterprise do not have the same meaning in the United states as in Europe for example, 1 and this difference also complicates things.

5. SOCIAL ENTREPRENEURSHIP AND SOCIAL INNOVATION There is, therefore, a need for greater conceptual clarity to be developed around these

This chapter examines social entrepreneurship and social innovation and explores their meaning, as well as considering concrete examples of both.

the first focuses on social entrepreneurship and the second on social innovation It also provides recommendations as to how to most effectively support social

entrepreneurship and promote social innovation Box 5. 1. The growth of social entrepreneurship While empirical evidence shows that social entrepreneurship is growing in many

countries, measuring it †like measuring the social economy, the third sector and the non

-profit sector †is difficult. This is due not only to the variety of the entities belonging to the

that countries recognise social entrepreneurship differently The â€oesocial Entrepreneurship Monitor†is a special report of the Global Entrepreneurship

Monitor (GEM) UK project to estimate the percentage of social entrepreneurs in UK society using population survey data.

entrepreneurship is 6. 2%,this points to the importance of social entrepreneurship According to the report, social entrepreneurs in the United kingdom are more likely to be

organisations was introduced in 1999, the number of social entrepreneurship entities developed from 1 176 in 1999 to 30 000 in 2008,

entrepreneurship, recent UK data released by the Third Sector in July 2009 www. cabinetoffice. gov. uk/media/231495/factoids. pdf) refer to an estimated average (2005-07

SMES, ENTREPRENEURSHIP AND INNOVATION Â OECD 2010 187 5. SOCIAL ENTREPRENEURSHIP AND SOCIAL INNOVATION Social entrepreneurship

The concept of social entrepreneurship is defined still poorly and its boundaries to other fields of study remain fuzzy.

While to some this may appear to be a problem, it could also be seen as a unique opportunity for researchers from different fields and

disciplines, such as entrepreneurship, sociology and organisational theory, to challenge and rethink central concepts and assumptions (Mair and Marti, 2006, p. 36

What is social entrepreneurship Social entrepreneurship can be defined as entrepreneurship that aims to provide innovative solutions to unsolved social problems.

Therefore it often goes hand in hand with social innovation processes, aimed at improving people†s lives by promoting social

changes Social entrepreneurs link themselves to a wide spectrum of organisations that have an entrepreneurial approach and

Social entrepreneurship is, therefore, about solving social problems rather than exploiting market opportunities. Social currency is the motivation of social

Box 5. 1. The growth of social entrepreneurship (cont country and globally, differentiating three groups of organisations:

SMES, ENTREPRENEURSHIP AND INNOVATION  OECD 2010188 5. SOCIAL ENTREPRENEURSHIP AND SOCIAL INNOVATION to pursue opportunities to catalyze social change†(Mair and Ganly, 2010.

Social entrepreneurs are in pursuit of â€oesustainable solutions to problems of neglected positive externalities†(Santos, 2009, p. 1). 2

The challenge of defining social entrepreneurship Defining what social entrepreneurship is poses important challenges †and the

growing interest in social entrepreneurship by policy makers as well as social investors means that it cannot be undefined left.

Policy makers and investors need clarity: unclear landscapes and boundaries can limit their support, which is critical to the smooth

landscape of social entrepreneurship, or to adopt a more inclusive or more exclusive definition of it, remains an important discussion in the field:

Given that social entrepreneurship is still an evolving field of practices, it might be best to avoid narrowly defining it,

initiatives that may be entitled to be considered social entrepreneurship even if they have not met all of the essential characteristics.

A great variety of definitions of social entrepreneurship and social entrepreneurs has been provided since the early 1980s (see Annex 5. A1 for a noncomprehensive list of

entrepreneurship have not yet been explored adequately (see for e g. Austin et al. 2006 Mair and Marti, 2006;

on what defines social entrepreneurship or a social entrepreneur may not be important†arguing that what really matters is understanding the landscape of the sector

entrepreneurship could become very inclusive and, as a result, represent an immense tent into which all kinds of socially beneficial activities fit (Martin and Osberg, 2007.

social entrepreneurship to suggest a typology of entrepreneurial ventures in order to identify those that could be included in the social entrepreneurship field (Neck et al

2009), 4 or have identified sets of primary and secondary characteristics of social entrepreneurship (Brouard and Larivet, 2009). 5

Social entrepreneurship theories It appears that â€oe†a consensus over the boundaries of social entrepreneurship

remains elusive†(Nicholls, 2006, p. 7), but also that a certain clarity has begun to emerge in

recent years. Arguably, a good balance between the need to include some concepts and practices from the field and to exclude others has been reached.

SMES, ENTREPRENEURSHIP AND INNOVATION Â OECD 2010 189 5. SOCIAL ENTREPRENEURSHIP AND SOCIAL INNOVATION entrepreneurship:

social value, social mission, social wealth, social change, social impact social innovation, sustainability, creativity and a business approach

The content and approaches of definitions vary; they tend to include multiple dimensions; and they present a number of conflicting â€oetensions†within the notion itself

1. Is social entrepreneurship an individual or a collective phenomenon? That is, should one focus on individual social entrepreneurs rather than on collective social

entrepreneurship initiatives? It appears that social entrepreneurship can be both an individual and a collective phenomenon.

The reality, as some concrete examples will demonstrate later on, presents us with a few outstanding individual social entrepreneurs, many

2. is shaped social entrepreneurship by social value rather than economic value? The answer would be that,

social mission of social entrepreneurship initiatives, the creation of social value is the essential feature of the initiatives, for the social entrepreneur†s principal aim is to produce social

entrepreneurship is that the economic value serves social objectives. In this sense, social entrepreneurship creates â€oeblended value that consists of economic, social and

environmental value components†(Emerson, 2003 3. is located social entrepreneurship only in the nonprofit sector, or can it also be found in

the for-profit and public sectors? While many social entrepreneurship initiatives can be found in the nonprofit sector, some social entrepreneurship â€oeattitudes†also concern other sectors:

the for-profit sector (for-profit business reaching outstanding, concrete levels of social responsibility and a high level of creation of social value) and the public sector6 (central

and local authorities engaging in or promoting socially innovative programmes and measures in partnership with the other sectors

4. Does social entrepreneurship aim to achieve incremental social impacts, or is meant it to produce radical social transformations only?

if social entrepreneurship is a way to improve the quality of life of individuals and communities through social value creation and innovative paths, it is not

Social entrepreneurship aims, therefore, at pursuing both radical and incremental social changes 5. Is social entrepreneurship a local phenomenon or a global one?

While many initiatives happen at the local level, their impact and the repercussions that flow from that impact

North american and Japan to support local social entrepreneurship initiatives (Mair and Garley, 2010 SMES, ENTREPRENEURSHIP AND INNOVATION Â OECD 2010190

5. SOCIAL ENTREPRENEURSHIP AND SOCIAL INNOVATION The distinction between a commercial entrepreneur †who, in creating jobs and in

providing goods and services, obviously also has a social impact †and a social entrepreneur is that social entrepreneurs create their business in order to produce a

â€oewhat distinguishes social entrepreneurship from commercial entrepreneurship is the predominant focus on value creation rather than on

value appropriation. †Although individuals may have multiple goals, organizations need clarity of purpose in order to engage with their environment in coherent ways.

Box 5. 2. Social entrepreneurship â€oeattitudes†in the for-profit sector Corporate social responsibility (CSR) is a concept distinct from that of social

entrepreneurship; the two ideas do not overlap. Still, some commercial business can have significant CSR initiatives in the social entrepreneurship field, most especially if they

support the development of this sector. One good example is Banca Prossima in Italy, created by Intesa Sanpaolo, a large Italian banking group, in November 2007.

SMES, ENTREPRENEURSHIP AND INNOVATION Â OECD 2010 191 5. SOCIAL ENTREPRENEURSHIP AND SOCIAL INNOVATION Social entrepreneurship practices

Having considered the theoretical approach to social entrepreneurship, some examples of it are presented now; these show the variety of its expressions.

Individual social entrepreneurs are featured (Institute For one World Health, inspired by a powerful leader), together with collective organisations (cooperatives like the Health and Social

Care Cooperative in Wonju, Korea), registered charities (such as Silai for Skills) and associations (like SIEL BLU.

Box 5. 2. Social entrepreneurship â€oeattitudes†in the for-profit sector (cont â A project for setting up residences to host mentally disabled people who have outlived their

SMES, ENTREPRENEURSHIP AND INNOVATION Â OECD 2010192 5. SOCIAL ENTREPRENEURSHIP AND SOCIAL INNOVATION Health-related problems are at the core of the initiative of pharmaceutical scientist

Victoria G. Hale, founder of the Institute For one World Health (Box 5. 4). There the concern is to

/SMES, ENTREPRENEURSHIP AND INNOVATION Â OECD 2010 193 5. SOCIAL ENTREPRENEURSHIP AND SOCIAL INNOVATION a deprived area.

This is very often the case for social enterprises that choose to go where traditional for-profit business do not,

SMES, ENTREPRENEURSHIP AND INNOVATION Â OECD 2010194 5. SOCIAL ENTREPRENEURSHIP AND SOCIAL INNOVATION and because of the quality of the services offered by SIEL Bleu,

The french government has lent its support to the services offered by the association Social innovation

SMES, ENTREPRENEURSHIP AND INNOVATION Â OECD 2010 195 5. SOCIAL ENTREPRENEURSHIP AND SOCIAL INNOVATION objective of facilitating international dissemination

and transferring best policies and practices in social innovation. Some eleven organisations from six countries signed the

SMES, ENTREPRENEURSHIP AND INNOVATION Â OECD 2010196 5. SOCIAL ENTREPRENEURSHIP AND SOCIAL INNOVATION Many of the elements presented in the OECD definition have been taken into account

by other definitions at a later stage Theories of social innovation The notion of social innovation has not yet been explored totally.

Like social entrepreneurship, social innovation has blurred boundaries. Nevertheless, the term has been used widely to refer to

entrepreneurship, a balance between inclusive and exclusive definitions has to be found Social innovation is needed

SMES, ENTREPRENEURSHIP AND INNOVATION Â OECD 2010 197 5. SOCIAL ENTREPRENEURSHIP AND SOCIAL INNOVATION sectors have adopted since the idea of social innovation,

and this has resulted obviously in its wider application and new impetus and energy. Still, the nonprofit sector plays an

SMES, ENTREPRENEURSHIP AND INNOVATION Â OECD 2010198 5. SOCIAL ENTREPRENEURSHIP AND SOCIAL INNOVATION Social Impact Bonds will be piloted in 2010 in the United kingdom in the context of reducing

re-offending by ex-offenders. The field of social innovation is an evolving one: social

SMES, ENTREPRENEURSHIP AND INNOVATION Â OECD 2010 199 5. SOCIAL ENTREPRENEURSHIP AND SOCIAL INNOVATION a

ing nd of ity ion ial eby the the to ers of age lso ose

SMES, ENTREPRENEURSHIP AND INNOVATION Â OECD 2010200 5. SOCIAL ENTREPRENEURSHIP AND SOCIAL INNOVATION Bank Palmas represents a powerful example of a social innovation driven by the

community as a methodology for the sustainable eradication of poverty in disadvantaged neighbourhoods. Community banks represent a hybrid economy †locally connected but

SMES, ENTREPRENEURSHIP AND INNOVATION Â OECD 2010 201 5. SOCIAL ENTREPRENEURSHIP AND SOCIAL INNOVATION The following provides an outstanding example of how social media and social

networks can contribute to connect people and good causes. In this case a web based platform has opened up the boundaries of donation mechanisms to support †among

SMES, ENTREPRENEURSHIP AND INNOVATION Â OECD 2010202 5. SOCIAL ENTREPRENEURSHIP AND SOCIAL INNOVATION Box 5. 11. ammado:

A global platform harnessing social media for social goods (cont â nonprofits to promote their cause (s)

/SMES, ENTREPRENEURSHIP AND INNOVATION Â OECD 2010 203 5. SOCIAL ENTREPRENEURSHIP AND SOCIAL INNOVATION The discussion now turns to the increased interest in social innovation among some

OECD member countries and the ad hoc structures and special measures created as a result These are important in moving social innovation towards the mainstream of public policies

SMES, ENTREPRENEURSHIP AND INNOVATION Â OECD 2010204 5. SOCIAL ENTREPRENEURSHIP AND SOCIAL INNOVATION focus on ageing, health and climate change;

Methods Lab examines how public service innovation can be fostered; and Learning Lab seeks to disseminate what works and what

Social innovation and entrepreneurship are considered also critical factors for economic development in Portugal, a view reflected in the recently approved Portuguese Government

Loan facility will create a fund of EUR 100 million to support social entrepreneurship and

Social entrepreneurship and social innovation aim to meet unsatisfied social needs and to respond to social challenges.

entrepreneurship is a vehicle and agent, though not the only one, of social innovation social innovation very often originates inside the social entrepreneurship sector

and can be taken up by other sectors later on. Social innovation is also about social change and refers

Social entrepreneurship â Build enabling environments and implement supporting policies â Specific enabling environments (legal, fiscal, regulatory) might be needed for social

SMES, ENTREPRENEURSHIP AND INNOVATION Â OECD 2010 205 5. SOCIAL ENTREPRENEURSHIP AND SOCIAL INNOVATION funding is critical in the early phases of a project as it covers the costs linked to a start

-up and also the costs of capital investments. This could be provided through small loans or grants

â Governments should support further research into the field of social entrepreneurship and its main components (social enterprises, social economy organisations, social

and include social entrepreneurship in school and university curricula â Social entrepreneurs might need special training to help them hone

entrepreneurship needs to be nurtured to encourage role models of successful businesses and to include social entrepreneurship in school and university curricula

â Support market development for social enterprise and provide training for public officials and social enterprises to deal with public tenders

â Evaluate the impact of social entrepreneurship in selected areas â This will require the identification of quantitative and qualitative measurement tools

SMES, ENTREPRENEURSHIP AND INNOVATION Â OECD 2010206 5. SOCIAL ENTREPRENEURSHIP AND SOCIAL INNOVATION provide a space to experiment

and assess new ideas in practice; allow fast learning across a community of innovators; and, establish clear pathways for scaling up the

entrepreneurship and social enterprise were used in an interchangeable way until recently and that â€oesocial entrepreneurship was seen as the process through which social entrepreneurs created

social enterprisesâ€. More recently though, the notions have been differentiated: â€oesocial entrepreneurs†in the United states are individuals launching activities dedicated to a social mission, while in

of social entrepreneurship is concerned, while the Americans tend to stress the blurred boundaries among institutional and legal forms, Europeans tend to stress the fact that social

entrepreneurship is located inside the â€oethird sectorâ€. With reference to the notion of social enterprises, while in the European context this usually indicates nonprofit entities pursuing the

Here social entrepreneurship gives its full contribution. An example of this is the Unis-Citã initiative in France:

3. In 2006 Light identified four components of social entrepreneurship: entrepreneurs †the people who pursue change;

SMES, ENTREPRENEURSHIP AND INNOVATION Â OECD 2010 207 5. SOCIAL ENTREPRENEURSHIP AND SOCIAL INNOVATION existing literature at that time,

which had led him to a very inclusive definition of social entrepreneurship. Thus he suggested that it is â€oean effort by an individual, group, network

organisation or alliance of organisations that seeks sustainable, large scale change through pattern-breaking ideas in what governments, nonprofits and business do to address significant

in a more exclusive (that is narrow) definition of social entrepreneurship based on the idea that â€oethere are special sets of attitudes,

2009) focus on the landscape of social entrepreneurship rather than on defining it. In order to do so,

enterprising nonprofits belong to the landscape of social entrepreneurship. â€oeregardless of profit orientation, social entrepreneurs identify opportunities to solve social problems:

5. Brouard and Larivet (2009) analyse most of the existing definitions of social entrepreneurship and

social entrepreneurship represents a variety of activities and processes; it wants to create and sustain social value;

social entrepreneurship as follows: â€oesocial entrepreneurship is a concept which represents a variety of activities and processes to create

and sustain social value by using more entrepreneurial and innovative approaches and constrained by the external environment†(p. 11

2006), â€oesocial and Commercial Entrepreneurship: Same, Different or Both? †Entrepreneurship Theory and Practice, Vol. 31, No. 1, pp. 1-22

SMES, ENTREPRENEURSHIP AND INNOVATION  OECD 2010208 5. SOCIAL ENTREPRENEURSHIP AND SOCIAL INNOVATION Birch, K. and G. Whittam (2008), â€oethe Third Sector and the Regional Development of Social Capitalâ€

Regional Studies, Vol. 42, No. 3, pp. 437-450 Borzaga, C. and F. Zandonai (eds.

2009), L†impresa Sociale in Italia, Rapporto Iris Network, Donzelli Roma Brock, D. and Ashoka†s Global Academy for Social Entrepreneurship (2008), Social Entrepreneurship

Teaching resources Handbook for Faculty Engaged in Teaching and Research in Social Entrepreneurship Ashoka†s Global Academy for Social Entrepreneurship, Ashoka, Arlington

Brouard, F. and S. Larivet (2009), â€oesocial Entrepreneurship: Definitions and Boundariesâ€, paper presented at ANSER †ARES 2009 Conference Association for Nonprofit and Social Economy

Research/Association de recherche des organismes sans but lucratif et de l†à conomie sociale, 27-29 may

Carleton University, Ottawa Caulier-Grice, J. and G. Mulgan (2009), â€oeexploring the Links between Social Enterprises, Social

Entrepreneurship and Social Innovationâ€, paper prepared for the OECD LEED Programme, Paris CASE (Center for Advancement of Social Entrepreneurship)( 2008), Developing the Field of Social

Entrepreneurship, report from CASE, Duke university, Fuqua School of business, June CCSE (Canadian Center for Social Entrepreneurship)( 2001), â€oesocial Entrepreneurship, Discussion Paper

No. 1â€, CCSE, February Chronicle of Philanthropy (2009), â€oewhite House Seeks $50-Million for †Social Innovation†â€, 5 may

CIRIEC (2007), The Social Economy in the European union, European Economic and Social Committee No. CESE/COMM/05/2005

Beyond Aid to Social Entrepreneurship or Civic Innovation? â€, Third world Quarterly, Vol. 21, No. 4, pp. 637-654

Harding, R. 2006), Social Entrepreneurship Monitor: United kingdom 2006, Foundation for Entrepreneurial Management, London Business school, full paper available at www. london. edu/assets/documents

Haugh, H. 2007), â€oecommunity-Led Social Venture Creationâ€, Entrepreneurship: Theory & Practice, Vol. 31 No. 2, pp. 161-182

Hibbert, S g. Hogg and T. Quinn (2002), â€oeconsumer Response to Social Entrepreneurship: The Case of

SMES, ENTREPRENEURSHIP AND INNOVATION  OECD 2010 209 5. SOCIAL ENTREPRENEURSHIP AND SOCIAL INNOVATION Kerlin, J. 2006), â€oesocial Enterprise in the United states and Europe:

Understanding and Learning from the Differencesâ€, Voluntas, Vol. 17, No. 3, pp. 247-263 Lasprogata, G. and M. Cotton (2003), â€oecontemplating Enterprise:

Leadbeater, C. 2006), â€oethe Socially Entrepreneurial Cityâ€, in A. Nicholls (ed.),Social Entrepreneurship New Models of Sustainable Social Change, Oxford university Press, Oxford, pp. 233-246

The Search for Social Entrepreneurship, Brookings Institution Press, WASHINGTON DC Light, P. 2009), â€oesocial Entrepreneurship Revisited:

Not Just Anyone, Anywhere, in Any Organisation Can Make Breakthrough Changeâ€, Social Innovation Review, Vol. 7, No. 3, pp. 21-22

Mair, J. and E. Noboa (2003), â€oesocial Entrepreneurship: How Intentions to Create a Social Enterprise Get

Mair, J. and I. Marti (2004), â€oesocial Entrepreneurship: What Are We Talking About? A Framework for

Mair, J. and I. Marti (2006), â€oesocial Entrepreneurship Research: A Source of Explanation, Prediction, and

Martin, R. and S. Osberg (2007), â€oesocial Entrepreneurship: The Case for Definitionsâ€, Social Innovation Review, Vol. 5, No. 2, pp. 28-39

Nicholls, A. ed.)(2006), Social Entrepreneurship: New Models of Sustainable Social Change, Oxford University Press, Oxford

Peredo, A m. and M. Mclean (2006), â€oesocial Entrepreneurship: A Critical review of the Conceptâ€, Journal of World Business, Vol. 41, No. 1, pp. 56-65

Perrini, F. ed.)(2006), The New Social Entrepreneurship. What Awaits Social Entrepreneurship Ventures Edward Elgar Publishing, Cheltenham

Phills, J.,K. Deiglmeier and D. Miller (2008), â€oerediscovering Social Innovationâ€, Social Innovation Review Vol. 6, No. 4, pp. 1-11

Pomerantz, M. 2003), â€oethe Business of Social Entrepreneurship in a †Down Economy†â€, Business

SMES, ENTREPRENEURSHIP AND INNOVATION Â OECD 2010210 5. SOCIAL ENTREPRENEURSHIP AND SOCIAL INNOVATION Roberts, D and c.

Woods (2005), â€oechanging the World on a Shoestring: The Concept of Social Entrepreneurshipâ€, University of Aukland Business Review, Vol. 11, No. 1, pp. 45-51

#Seelos, C. and J. Mair (2005), â€oesocial Entrepreneurship: Creating New Business models to Serve the Poorâ€, Business Horizons, Vol. 48, No. 3, pp. 241-246

Sullivan Mort, G.,J. Weerawardena and K. Carnegie (2003), â€oesocial Entrepreneurship: Towards Conceptualizationâ€, International Journal of Nonprofit and Voluntary Sector Marketing, Vol. 8, No. 1

Tommasini, G. 2004), â€oethe Meaning of Social Entrepreneurship for Congruent Regional Development†ADEST Srl †Irecoop †Veneto

Venkataraman, S. 1997), â€oethe Distinctive Domain of Entrepreneurship Research: An Editor†s Perspectiveâ€, in J. Katz and R. Broackhaus (eds.

Advances in Entrepreneurship: Firm Emergence and Growth, CT JAI Press, Greenwich, Vol. 3, pp. 119-138

Weerawardena, J. and G. Mort (2006), â€oeinvestigating Social Entrepreneurship: A Multidimensional Modelâ€, Journal of World Business, Vol. 41, No. 1, pp. 21-35

2007), Entrepreneurship in the Social Sector, Sage Publications, Los angeles Westall, A. 2007), How Can Innovation in Social Enterprise Be understood,

Zhara, S.,E. Gedajlovic, D. Neubaum and J. Shulman (2006), â€oesocial Entrepreneurship: Domain Contributions and Ethical Dilemmasâ€, University of Minnesota Conference on Ethics and

Entrepreneurship Zhara, S.,E. Gedajlovic, D. Neubaum and J. Shulman (2008), â€oetypology of Entrepreneurs: Motives

SMES, ENTREPRENEURSHIP AND INNOVATION Â OECD 2010 211 5. SOCIAL ENTREPRENEURSHIP AND SOCIAL INNOVATION ANNEX 5. A1

Definitions Table 5a. 1. Definitions of social entrepreneurship Author (s) Year Definition Fowler 2000 â€oesocial entrepreneurship is the creation of viable (socioeconomic structures, relations, institutions

organisations and practices that yield and sustain social benefits. †(p. 649 CCSE 2001 â€oedefines †social entrepreneurship†broadly to encompass a variety of initiatives

which fall into two broad categories. First, in the for-profit sector, social entrepreneurship encompasses activities

emphasising the importance of a socially engaged private sector, and the benefits that accrue to

2002 â€oesocial entrepreneurship is not about starting a business or becoming more commercial. It is about

Hibbert, Hogg and Quinn 2002 â€oesocial entrepreneurship can be defined loosely as the use of entrepreneurial behaviour for social

2002 â€oesocial entrepreneurship is the art of simultaneously pursuing both a financial and a social return on

Thompson 2002 â€oealthough social entrepreneurship is in evidence in many profit-seeking businesses †sometimes in

Lasprogata and Cotton 2003 â€oesocial entrepreneurship means nonprofit organisations that apply entrepreneurial strategies to sustain themselves financially

Mair and Noboa 2003 â€oese Social entrepreneurship is seen as the innovative use of resource combinations to pursue

Pomerantz 2003 â€oesocial entrepreneurship can be defined as the development of innovative, mission-supporting earned income, job creating

2003 â€oesocial entrepreneurship, the entrepreneurship leading to the establishment of new social enterprise and the continued innovation in existing ones. †(p. 76

â€oeconceptualises social entrepreneurship as a multidimensional construct involving the expression of entrepreneurially virtuous behaviour to achieve the social mission, a coherent unity of purpose and

SMES, ENTREPRENEURSHIP AND INNOVATION  OECD 2010212 Haugh 2005 â€oesocial entrepreneurship is the process of creating social enterprise. †(p. 3

Roberts and Woods 2005 â€oesocial entrepreneurship is the construction, evaluation and pursuit of opportunities for

transformative social change carried out by visionary, passionately dedicated individuals. †(p. 49 Seelos and Mair 2005 â€oesocial entrepreneurship creates new models for the provision of products

and services that cater directly to basic human needs that remain unsatisfied by current economic or social institutions. â€

5. SOCIAL ENTREPRENEURSHIP AND SOCIAL INNOVATION Table 5a. 1. Definitions of social entrepreneurship (cont Source:

Brouard and Larivet, 2009 Author (s) Year Definition GEM 2006 â€oesocial entrepreneurship is any attempt at new social enterprise activity or new enterprise creation such

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

Leadbeater 2006 â€oeone way to define social entrepreneurship would be through what motivates the actors, i e. they

Another way to define social entrepreneurship would be through outcomes: anyone who creates lasting social value through entrepreneurial activities is a social entrepreneur. †(p. 241

Mair and Marti 2006 â€oefirst, we view social entrepreneurship as a process of creating value by combining resources in new

social entrepreneurship involves the offering of services and products but can also refer to the creation of new organisations. †(p. 37

Peredo and Mclean 2006 â€oesocial entrepreneurship is exercised where some person or group 1) aim (s) at creating social value,

Weerawardena and Mort 2006 â€oesocial entrepreneurship strives to achieve social value creation and this requires the display

2006 â€oesocial entrepreneurship concerns the processes related to the discovery of opportunities to create social wealth and the organisational processes developed

Cochran 2007 â€oesocial entrepreneurship is the process of applying the principles of business and entrepreneurship

Haugh 2007 â€oesocial entrepreneurship, the simultaneous pursuit of economic, social, and environmental goals by enterprising ventures †Social entrepreneurship is first and foremost a practical response to

unmet individual and societal needs. †(p. 743 Martin and Osberg 2007 â€oewe define social entrepreneurship as having the following three components:

1) identifying a stable but inherently unjust equilibrium that causes the exclusion, marginalisation, or suffering of a

2007 â€oewe define social entrepreneurship as an innovative, social value creating activity that can occur

Entrepreneurship 2008 â€oeinnovative approaches to social change†or â€oeusing business concepts and tools to solve social

2008 â€oesocial entrepreneurship encompasses the activities and processes undertaken to discover, define and exploit opportunities in order to enhance social wealth by creating new ventures or managing

SMES, ENTREPRENEURSHIP AND INNOVATION Â OECD 2010 213 5. SOCIAL ENTREPRENEURSHIP AND SOCIAL INNOVATION Table 5a. 2. Definitions of social innovation

Source Year Definition OECD/LEED Forum on Social Innovations 2000 â€oethe OECD working definition of social innovation implies conceptual, process or product change

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

EMES 2007 According to the EMES, social innovation can be seen â€oeas arising from a new kind of entrepreneurship

SMES, ENTREPRENEURSHIP AND INNOVATION Â OECD 2010214 5. SOCIAL ENTREPRENEURSHIP AND SOCIAL INNOVATION Table 5a. 2. Definitions of social innovation (cont

Source Year Definition Stanford Social Innovation Review 2008 â€oea novel solution to a social problem that is more effective, efficient, sustainable,

entrepreneurship focused on social goals, new products of new qualities of products, new methods of organisation and/or production (often involving different partners and resources), new production

SMES, ENTREPRENEURSHIP AND INNOVATION Â OECD 2010 215 5. SOCIAL ENTREPRENEURSHIP AND SOCIAL INNOVATION ne

ies the unt th ew urs ffs all rch cal ing of ANNEX A Policy Recommendations:

through SMES and Entrepreneurship A summary of the policy recommendations of the report is presented in the Box below

Policies to strengthen entrepreneurship and increase the innovation capabilities of SMES should be o of the main planks of government innovation strategies.

1. Promote conducive entrepreneurship cultures and framework conditions â Foster positive attitudes in society to business start up and growth including through education and

and conditions of entrepreneurship and SME activity are taken into acco in framework conditions and regulations affecting business

â Strengthen knowledge-based entrepreneurship by providing advice and training to start-up entreprene with strong technological knowledge and developing programmes for corporate and university spin-o

entrepreneurship engagement aspects of university â€oethird missionsâ€, developing technology bridg institutions, strengthening the innovation absorption capacity of SMES

SMES, ENTREPRENEURSHIP AND INNOVATION Â OECD 2010216 labour into and out of new and small firms

5. SOCIAL ENTREPRENEURSHIP AND SOCIAL INNOVATION ing ges ng -ip der ME nd the of

â Build up entrepreneurship education in universities and higher education institutions by smartly scali up, shifting the teaching emphasis from business management to growth-oriented entrepreneursh

relevant teacher training and teaching materials designed for entrepreneurship â Reinforce training in SMES by launching in-company projects, increasing SME apprenticeships a

â Strengthen the contribution of local skills ecosystems to entrepreneurship and SME development throu greater engagement of employers, unions and individuals involved in new and small firms with lo

4. Improve the environment for social entrepreneurship and social innovation â Build financial, fiscal, legal and regulatory environments that enable social enterprises to meet th

â Undertake research into social entrepreneurship and social innovation and their main components order to create clear definitions

â Evaluate the impacts of social entrepreneurship and social innovation policies and programmes us appropriate methods such as Social Return on Investment measures and balanced scorecards

and include social entrepreneurship in school a university curricula â Introduce social clauses in public procurement procedures to encourage involvement of social enterpri

SMES, ENTREPRENEURSHIP AND INNOVATION  OECD 2010 217 SMES, Entrepreneurship and Innovation  OECD 2010

Glossary Absorptive capacity The knowledge base that small firms need to interact with and learn from universities

Entrepreneurship The phenomenon associated with entrepreneurial activity, namely enterprising human action in pursuit of the generation of value through the creation or expansion of

Entrepreneurship skills The skills that an entrepreneur needs to start and operate successfully a new firm

SMES, ENTREPRENEURSHIP AND INNOVATION Â OECD 2010220 GLOSSARY national, regional or local dimension. They include firms, universities, finance suppliers

SMES, ENTREPRENEURSHIP AND INNOVATION Â OECD 2010 221 GLOSSARY relationships outside of the firm including licensing, spin-offs and informal research and

SMES, ENTREPRENEURSHIP AND INNOVATION Â OECD 2010222 GLOSSARY bring innovative solutions to problems such as social exclusion and unemployment

Social entrepreneurship A type of entrepreneurship that aims to provide innovative solutions to unsolved social problems and challenges.

It often goes hand-in-hand with social innovation processes. Social entrepreneurs organise themselves across a wide spectrum of

entrepreneurship is therefore about solving social problems rather than exploiting market opportunities in order to maximise profits

SMES, ENTREPRENEURSHIP AND INNOVATION Â OECD 2010 223 GLOSSARY Third sector Often used as a synonym for the nonprofit sector,

SMES, ENTREPRENEURSHIP AND INNOVATION Â OECD 2010224 OECD PUBLISHING, 2, rue Andrã-Pascal, 75775 PARIS CEDEX 16

OECD Studies on SMES and Entrepreneurship SMES, Entrepreneurship and Innovation Welcome to the entrepreneurial economy:

small fi rms are playing an ever-increasing role in innovation, driven by changes in technologies and markets.

the environment for entrepreneurship and small fi rm development, and increasing the innovative capacities of enterprises.

developing entrepreneurship skills; and social entrepreneurship In addition, country notes present statistics and policy data on SMES, entrepreneurship and

innovation for 40 economies, including OECD countries, Brazil, China, Estonia, Indonesia, Israel the Russian Federation, Slovenia and South africa

SMES, Entrepreneurship and Innovation is part of the OECD Innovation Strategy, a comprehensive policy strategy to harness innovation for stronger and more sustainable growth and development

and to address the key global challenges of the 21st century. For more information about the OECD

SMES and Entrepreneurship in Poland (2010 Clusters Innovation and Entrepreneurship (2009 OECD Framework for the Evaluation of SME and Entrepreneurship Policies and Programmes (2007

S M E s, E ntrep reneurship and Inno vatio n ISBN 978-92-64-08031-7

85 2010 02 1 P: -HSTCQE=U UXV The full text of this book is available on line via these links

and Entrepreneurship SMES ENTREPRENEURSHIP AND INNOVATION O E C D S tu d ies o

N s M E s an d E ntrep ren eu rsh ip Foreword Acknowledgements Table of contents

Social entrepreneurship and social innovation What is the role of SMES and entrepreneurship in innovation

Creative destruction Knowledge spillovers Breakthrough and incremental innovation Interactive learning Modes of innovation Policy implications

SMES, Entrepreneurship and Innovation: An Overview by Country Introduction Box 2. 1. Basic methodological references

How knowledge affects entrepreneurship The systemic approach to innovation Box 3. 1. Main activities in an innovation system

Entrepreneurship Skills The importance of entrepreneurship skills for SMES and start-ups Skills for entrepreneurship Table 4. 1. Classification of skills at work

Relationship between skills and innovation Box 4. 1. Core characteristics of entrepreneurs How are acquired entrepreneurship skills

Universities and higher education institutions Box 4. 2. Entrepreneurship support in universities: Criteria for good practice Vocational education and training

Schools Box 4. 3. Scotland†s â€oedetermined to Succeed†entrepreneurship education strategy Training in SMES

KISAS and learning at work Small business support Local skills ecosystems Box 4. 4. Formaper Policy recommendations

Note Bibliography Chapter 5. Social Entrepreneurship and Social Innovation Introduction Box 5. 1. The growth of social entrepreneurship

Social entrepreneurship What is social entrepreneurship The challenge of defining social entrepreneurship Social entrepreneurship theories

Box 5. 2. Social entrepreneurship â€oeattitudes†in the for-profit sector Social entrepreneurship practices Box 5. 3. Health and Social Care Cooperative (Wonju, Korea

Box 5. 4. Institute for Oneworld Health (United states Box 5. 5. Silai for Skills (England

Box 5. 6. SIEL Bleu (France Social innovation What is social innovation? The OECD definition

Theories of social innovation Social innovation in practice Box 5. 7. Individual Development Accounts (IDAS Box 5. 8. Bank Palmas (Brazil

Box 5. 9. Equisol (France Box 5. 10. Social Impact Bonds (United kingdom Box 5. 11. ammado:

A global platform harnessing social media for social goods Preliminary recommendations Social entrepreneurship Social innovation Notes

Bibliography Annex 5. A1. Definitions Table 5a. 1. Definitions of social entrepreneurship Table 5a. 2. Definitions of social innovation

Annex A. Policy Recommendations: Strengthening Innovation through SMES and Entrepreneurship Box A1. Summary of Policy Recommendations

Glossary

< Back - Next >

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