As an immediate step, it will pilot a European Public sector Innovation Scoreboard as a basis for further work to benchmark public sector innovation.
Conduct benchmarks and consider what is •being done externally in the field. Map Resources Design a supply chain map:
Benchmark your product (s) against com-•petitors on environmental aspects alongside function, cost, pricing, etc.
venture capital; â€oeangel investorsâ€; share ownership; and â€oecrowd fundingâ€? What are associated the risks with each •source of funding?
project representatives will be able to visualise their impacts by comparing their performance with a set of benchmarks (Passani at al, 2014a).
certainly including the current fragmentation of the Internal Market and the absence of well-developed venture capital;
a total lack of harmonisation prevents cross-border venture capital investment and the creation of funds in areas where financing for innovation is needed.
In addition to cross-border venture capital and technology transfer support via the European Investment Fund (EIF), the European Investment Bank (EIB) could consider widening the scope of applications, in particular by broadening and deepening risk-sharing operations,
increasing venture capital, increasing the availability of skilled labour and enhancing international cooperation. In more in detail, short-term solutions include better application of existing state aid rules, a level international playing field and improved access to finance.
In addition to cross-border venture capital and technology transfer support via the European Investment Fund (EIF), the EIB could consider widening the scope of applications, in particular by broadening and deepening risk-sharing operations,
a total lack of harmonisation prevents cross-border venture capital investment and the creation of funds in areas where financing for innovation is needed.
o Establishing an integrated venture capital market in Europe o Expanding the permanent risk-sharing products of EIB o Developing tax incentives to support investments in R&d and innovation,
Master programmes throughout the EU27. •In addition to cross-border venture capital and technology transfer support via the European Investment Fund (EIF),
G#2v 12734 Venture capital G#3v 12736 Benchmark 0#4#benchmark Benchmark G#3v 12735 Burn rate
0#4#burn rate Burn rate 0#3#venture capital Venture capital G#0v 6915 ICT G#1v 7872 4d printing
0#2#4d printed 4d printing 0#2#4d printer 4d printing 0#2#4d printing 4d printing G#1v 7873 5g
0#2#5g 5g G#1v 7874 Artificial intelligence G#2v 7875 Artificial intelligence 0#3#artificial intelligence Artificial intelligence
G#2v 7876 Expert system 0#3#expert system Expert system G#2v 7877 Machine intelligence 0#3#machine intelligence Machine intelligence
G#2v 7878 Machine learning 0#3#machine learning Machine learning G#3v 7879 Reinforcement-learning 0#4#reinforcement learning Reinforcement-learning
Coursera had received over $85 million in venture capital (Crunchbase, 2014. It has been crucial for MOOC€ s success
egovernment performance in Europe †egovernment Benchmark 2012†European commission (2014) â€oemapping smart cities in the EU€, Directorate-General for Internal Policies, Economic
benchmark analysis of existing schemes and policies to boost digital entrepreneurship...38 The European policy background...
the EU'24 proposes an action with regard to venture capital and crowdfunding, aiming at supporting a network of European crowdfunding platforms to support,
and venture capital firms, compared to 63%when talking with banks. In this respect, the 2012 report †A framework for European
crowdfunding†indicates that SMES often fail to attract venture capital finance as a result of information asymmetry between entrepreneurs and investors
benchmark analysis of existing schemes and policies to boost digital entrepreneurship To understand what actions can be initiated both by public and private sector in order to boost
regions or cities were assessed in a benchmark analysis27 According to this analysis digital entrepreneurship is in most cases determined by a combination
landscape-Benchmark analysis. See also annex 38 Figure 18 †Overview of key success factors boosting digital entrepreneurship
EXHIBIT †KEY FINDINGS BENCHMARK ANALYSIS Silicon valley ï§Silicon valley emerged organically as a start-up ecosystem with little deliberate public
Benchmark Irish owned SMES against the Design Ladder Methodology Or Develop Ireland†s Community Innovation Survey to Include
and set the benchmark for key digital applications to make Germany not only the leading provider in the area of smart
for venture capital and crowdfunding zz helping to â€oematch†established businesses with start-ups zz supporting female entrepreneurs with specific measures
The competition targets start-ups and businesses through competitive funding, offering venture capital mentorship and other forms of support.
new venture capital initiatives focused on the developing world Crowdfunding is the collective effort of individuals who network and pool their money, usually via the
Venture capital for Africa is an example of a crowdfunding model to connect entrepreneurs building promising companies in Africa with investors from some 159 countries around the
with the international venture capital community. The space is a tech community facility with a focus on young entrepreneurs, web and mobile phone programmers, designers and
Venture capital Financial capital invested in start-up companies Web 2. 0 Websites that allow users to interact,
comparing their performance with a set of benchmarks (Passani at al, 2014a In parallel, CAPS users will be invited to fill in the UDGI,
Venture capital Big data and cloud computing Collective awareness platforms collective intelligence CENTRALISED TOP-DOWN GRASSROOTS DISTRIBUTED COMPETITION ECONOMIC ENTERESTS
Venture capital Big data and cloud computing Collective awareness platforms collective intelligence CENTRALISED TOP-DOWN GRASSROOTS DISTRIBUTED COMPETITION ECONOMIC ENTERESTS
3. 2. 2. Access to venture capital †The European Venture Capital Funds...105 3. 2. 3. The European regulatory framework for social investment funds
Together with the Regulation on European venture capital funds (Euveca) and the Alternative Investment Fund Managers Directive (AIFMD), this Regulation aims to make it easier for AIFMD-exempt
Eusef Regulation is wider than those available for venture capital funds under the EVCF Regulation 58 The third axis of this programme focuses on microfinance and social entrepreneurship with a fund of EUR
-SIS) with a view to improving its ability to benchmark the innovation performance of the public sector in Europe.
initiatives, and benchmark progress. Much will depend on creating a critical mass of public sector leaders who have the skills to manage innovation.
work to benchmark public sector innovation and explore with Member States wheth -er it is appropriate to bring together new learning experiences and networks for
3. 2. 2. Access to venture capital †The European Venture capital Funds174 Small start-up businesses often have difficulty getting funding.
European Venture capital Funds (Euveca), which along with Eusef175 became available on 22 july 2013. Euveca invest in unlisted companies with
Access to venture capital †The European Venture capital Funds 3. 2. 3. ï¿The European regulatory framework for social investment funds:
venture capital with those from tendering and grant giving. Others are combining ethnography, visualisation techniques from product design, user
Conversely, some NGOS are learning from venture capital not only how to finance emerging ideas, but also how to kill off ones that aren†t
methods from the field of venture capital, for example, provide a rigorous framework for paying attention to the many elements that together make
an advantage over venture capital funding in that they can tap investors who want to make social impact their primary incentive rather than
of tools in use in banking, venture capital and other fields of investment which assess current and future cash flows, asset values, etc
228) Outcome benchmarks, such as the local surveys now undertaken to measure answers to questions such as how well people get on with each
or any benchmarks to draw on. Instead, assessments need to include some judgement of the broader direction of change in the field as a
specialists in technology transfer, venture capital firms, conferences, and academic journals †which sit alongside consultants adept at looking at
cent of turnover as a rough benchmark (similar to the proportion of GDP now devoted to government support for technological and scientific
458) Social enterprise funds including the new venture capital fund, set up by Triodos Bank, which invests in high impact and commercially
Venture capital firms Tech blogs and mag -azines Decentralized Cluster governance High entry barriers (technological skills
messages about marketing (such as Startup Marketing53-),venture capital (such as The Startup Lawyer54), or technology news (such as The next Web55), to name a few examples
Finally, venture capital can also be considered as an enabler in relation to the community of developers and entrepreneurs.
The venture capital fund earns money by owning equity in the companies it invests in. There are
many venture capital firms, many of which usually invest in technology start-ups. Accel Partners64, Founders Fund65, and Greylock Partners66 are only a few examples in the United states
prototyping, intensive handholding by venture capital companies, and the use of rigorous milestones against which funds are released.
-sidy of technology and private investment in incubators, venture capital, and start -ups. The equivalent potential supports for
ï oe) more visible performance to the relevant audience (peers, labour market, and venture capital community 2) higher impact of eï €ort on performance
benchmarks are valid across economies. The data not only highlight the extent of obstacles to doing business
based on indicator sets that measure and benchmark regulations applying to domestic small to medium-size
The distance to frontier score benchmarks economies with respect to regulatory practice, showing the absolute distance to the best performance in each Doing Business
benchmarks each economy†s performance on the indicators against that of all other economies in the Doing
The distance to frontier score benchmarks economies with respect to regulatory practice, showing the absolute distance to the best performance in each Doing Business indicator.
The distance to frontier score benchmarks economies with respect to regulatory practice, showing the absolute distance to the best performance in each Doing Business indicator.
benchmarks for assessing the efficiency of contract enforcement in Spain Figure 10.1 How Spain and comparator economies rank on the ease of enforcing contracts
benchmarks for assessing the efficiency of insolvency proceedings in Spain Figure 11.1 How Spain and comparator economies rank on the ease of resolving insolvency
the distance to frontier score benchmarks economies with respect to regulatory best practice showing the absolute distance to the best performance
-cial good, are able to spread their innovations throughout society due to the flexibility of venture capital in
venture capital firm, Andreessen Horowitz, invested $100 million in the company during its Series A Funding.
-cial good, are able to spread their innovations throughout society due to the flexibility of venture capital in
venture capital firm, Andreessen Horowitz, invested $100 million in the company during its Series A Funding.
Conduct benchmarks and consider what is †¢being done externally in the field Map Resources Design a supply chain map:
Benchmark your product (s) against com-†¢petitors on environmental aspects, along -side function, cost, pricing, etc
venture capital; â€oeangel investorsâ€; share ownership; and â€oecrowd funding†What are associated the risks with each â€
venture capital; and, more contentiously, the creation of open and competitive markets. In most of these
venture capital In the US, venture capital provides a valuable catalyst for the emergence of new, innovative businesses.
By contrast, Europe†s venture-capital industry remains small and underdeveloped. Although overall private equity investment levels in Europe approach those
The lack of venture capital is a strong disincentive to innovation and enterprise. Germany, for example boasts some of Europe†s more prolific R&d
but limited access to venture capital can make it difficult for technology start-ups to find funding. Eike
shortage of venture capital as one of the key barriers to innovation in his country Funding for university and research institute spin
the European Venture capital Association ranks the UK and Ireland as boasting the most conducive tax and legal system for private equity
Still, fundraising for venture capital remains difficult in Europe. Industry veterans point out that European venture-capital firms are extremely selective
including venture capital, secure networks and skills training†in powerful demonstrations of the role that ICT can play in business and society.
the total SME population, the most important goals are to promote the development of the private venture capital
relations and venture capital firms †provide technical, financial, and networking services which the region†s enterprises often cannot afford individually.
venture capital creation, and the rapid establishment of start-up firms. In many OECD countries improvements can be made to the financial sector
venture capital. Thus the government has a strong impact on innovative SMES. Significantly, the SBIR and
1. Closer collaboration with the Venture capital industry. In those countries such as Belgium France, and Germany where venture capital markets are booming,
there should be better collaboration between the R&d granting institutions and the private or semipublic VC
in The netherlands) are indeed cooperating with the local venture capital industry, and they do so for two main reasons.
Venture capital Finance & accounting Exports Sales & marketing General business advice Information technology Grant advice Direct access
Andalusia incubators against EU current benchmarks ï Think of promoting corporate spin-offs as an alternative to university spinoffs with stronger industry and
and venture capital attraction, to actual firm setup. Local business entrepreneurs serve on the start-up firm†s board of directors.
more recent study by Niosi (2008), comparing the effectiveness of IRAP with venture capital funding found that the receipt of IRAP funding was correlated more often with an increase in the rate of the
firm†s growth than the receipt of venture capital funding. He strongly favoured an increase in the
Set out clear incubation principles and benchmarks A significant part of the current support for start-ups in the region relates to business incubation
devices, whereas the European benchmark for incubated businesses is 85%.%Thirdly, it may actually hamper rapid growth and development of the very firms being assisted as the high and continuing
evaluation of its business incubation model and benchmark it with international best practices. The introduction of a monitoring and evaluation system to assess the impact of this form of support would
prepare benchmarks for what constitutes successful incubators (see table below). It is important for Andalusia, having invested a large amount of time and funding,
performing according to these benchmarks and, if it falls short of those standards, to consider what needs to be done to maximise efficiency in future
Table 6. Summary of key EU business incubator benchmarks Setting Up and Operating Average Range Benchmark
Average capital investment cost â 3. 7 million â 1. 5 to â 22 m NA
Incubator Functions Average Range Benchmark Incubator occupancy rates 85%9%†100%85 %Length of tenancy 35 months 6 months-no max 3 years
%Evaluating Services and Impacts Average Range Benchmark Survival rates of tenant firms 85%65%†100%85
ï Business incubators should be encouraged to benchmark themselves against best practice standards and to take the steps required to achieve them
quantitative benchmarks would enable the region to assess the current incubator policy and whether there is a need for refinement,
) The EC benchmark for the survival rate amongst tenant firms is set at 80-90%.
and support, business start-up and venture capital for the more dynamic SMES In particular, there is a considerable level of public support, at different levels (EU, national, and
availability of venture capital, which is limited in Scotland: in the UK the south east of England tends
of this tool against current EU benchmarks; iii) an unexplored area by the Andalusia government
Andalusia incubators against EU current benchmarks ï Think of promoting corporate spin-offs as an alternative to university spinoffs with stronger industry and
benchmark those sales is going to continue to be important to all online players In the end, the ability to increase conversion
practical e-commerce research and benchmark services Peter van den Brink, Trainee Research & Advice Peter van den Brink (1992) has worked for Ecommerce Europe since 2014.
3. 3. 3. Conclusion on nanotechnology cluster benchmark between Germany and Japan...88 3. 3. 4. Factors influencing the future development of nanotechnology...
4. 3. 3. Conclusion on microelectronics cluster benchmark between France and Canada...139 4. 3. 4. Factors influencing the future development of microelectronics...
and venture capital backed firms will be able to go this way. Consequently, direct economic impacts of KETS in their early stages tend to be low.
to cluster initiatives, public awareness measures, standardisation, promotion of venture capital supply, and education and training activities (see OECD, 2009c).
involvement and venture capital and a strong focus on a limited number of knowledge domains European Competitiveness in KETS ZEW and TNO
while R&d in Japan is to 2/3 financed through venture capital (see Figure 3-20
venture capital. 16 Regarding R&d investment from the government, Germany is the number one concerning public funding of nanotechnology in Europe, followed by France and the United kingdom. 17
Venture capital: Venture capital is not easily available in Germany for nanotechnology research and development. In Germany, only one third of the total research funding stems
from private sources, compared to 54 percent in the US and almost two thirds in Japan
But the lack of business angels and venture capital makes it difficult to create academic spin-offs to commercialise scientific results
In addition to this, six different networks and one venture capital firm accompany cluster activities. The cluster is highly research-oriented with an excellence
Venture capital: In Japan, R&d in nanotechnology is supported also largely by private funding. Venture capital funding accounted for $2. 8 billion in 2004.
Overall, Japan has an advantage over Europe and US regarding private funding. Almost two thirds of the total
orientation. 36 Venture capital was not always available in the past. In the early 2000s, the Japanese government started to create programmes
Finally, the growth of venture capital in the US also influenced the development of VC investment in Japan. 37
Because large amounts of venture capital are available, new nanotechnology start-ups can easily be established. In this way, entrepreneurs do not face the obstacle of finding sufficient
venture capital to support academic spin-offs and nanotech start-ups. The combination of strong government support with large private funding is the second success factor of the
3. 3. 3. Conclusion on nanotechnology cluster benchmark between Germany and Japan Strengths and weaknesses
there is a lack of venture capital, business angels, etc There is a strong focus on basic research and a lack of commercialisation activity
of venture capital scarcity Germany nr. 1 for public funding of nanotech Harmonised funding schemes for
Lack of business angels and venture capital Government has stimulated actively development of VC market Nanotechnology top-priority in national
report a lack of public funding and a lack of venture capital as main barriers to
funding as well as a viable venture capital industry is critical to overcome financial barriers Another critical factor is to successfully link technological opportunities with user demand
dynamic sector of nanotechnology companies, venture capital funding as well as public support to R&d conducted by these firms is essential.
One reason is certainly the reluctance of the private venture capital business in recent years to provide large amounts of risk capital for these firms.
start-ups could profit from a generous venture capital industry in the 1990s, the situation has changed.
Today private venture capital companies very carefully evaluate the business prospects of young firms and most often provide only limited funding,
venture capital business. A promising starting point for public policy in Europe can be start -ups form public research.
Venture capital While availability of capital for start-ups is an issue in Canada generally, the Ottawa
U s. venture capital investment in Canada goes to Ottawa tech firms. This is also supported with examples from Wolfe (2002) who describes the takeover of Skystone System by Cisco
One particularly important actor in the context of venture capital is the Ontario Centre of Excellence for Communications that has spun off about 25 companies in the period 2002
However, despite the comparatively good access to venture capital there are other barriers for start-ups perceived. Scott (2007) reports that the loss of the LSIP programme in Ontario left a
4. 3. 3. Conclusion on microelectronics cluster benchmark between France and Canada Strengths and weaknesses
new MNES and venture capital Strong concentration of large MNES e g Nortel hires 1/3 of all masters and Phds in
during this period as well as a rapidly growing global economy investing venture capital in high-tech industries have spurred the cluster†s growth.
Venture capital: The cluster has also access to financial resources at all investment stages which has shown to be critical for growth.
Fund†in pursuing venture capital. Furthermore, venture capital is also available through the proximity to the large financial market in London.
For example, the Barclays bank dedicated large sums to the promising high-tech industry, with many smaller venture capitalists
venture capital. This could result in a twin obstacle of market failure and absence of public
accessibility of venture capital. Genentech, founded 1976 in San francisco, was the first biotechnology company in the world.
and 64 venture capital firms), connected by 243 local contractual ties. It is important to notice that no public intervention or any centralised
venture capital and other supportive institutional infrastructure which made the cluster successful in its early days. Nowadays, the combination of public funding and venture capital
nurtures the cluster development. In absolute figures, the biotechnology cluster raised more than $4 billion in capital, including $600 million in venture financing (2006). 59
Venture capital: Venture capital is available to support the commercialisation of scientific research and the transition of knowledge to the market.
There is a large number of local venture capitalists investing in biotechnology start-ups, accounting for 34 percent of all active
venture capital firms in the United states (see Su and Hung, 2009. Finally, there is one federal programme to support the foundation of biotechnology start-ups.
venture capital became increasingly important, while at the same time the involvement of public research organisations (PROS) was shrinking.
two types of ties (venture capital, PROS)( Owen-Smith and Powell, 2006. These collaborative partnerships create strong network ties
DBF=dedicated biotechnology firm, VC=venture capital, PRO=public research institutes Source: Owen-Smith and Powell (2004: 33
The cluster originated from a tight social network among biotechnology firms, venture capital and research institutions. Now, the direct links between DBFS are building the main network
Venture capital & commercialisation important to reach maturity Size 280 firms 25,000 people (incl. academics and
Good availability of venture capital ï commercialisation Availability of start-up support Tax-breaks/incentives: biotechnology firms are exempt from paying payroll taxes for up
In order to establish a dynamic sector of industrial biotechnology companies, venture capital funding as well as public support to R&d conducted by these firms is essential.
While in the 1990s a generous venture capital industry supported a variety of start-ups, today there is a shortfall in venture capital market.
Private venture capital companies very carefully evaluate the business prospects of young firms and most often provide only limited funding,
focussing on close to-market-introduction projects and not on early stage projects of biotechnology start-ups.
Venture capital: No coordinated venture capital activities are known to exist at the Optecbb cluster. However, Sydow et al.
2007) also report no start-up support at comparable international clusters Interactions Interactions play a critical role in cluster success. The Optecbb initiative is primarily a
Also no venture capital activity is reported in at the 78 Even the limited number of cases engaged within this study is sufficient to demonstrate that, within one (high-tech
Venture capital: Quebec has access to the highest concentration of venture capital in Canada QPN, 2010. Innovatech Quã bec-Chaudiã re-Appalaches is particularly active in the
optics/photonics industry. Also the National Optics institutes plays an important role in this context having generated 20 spin-offs over the last years.
the region suffers from the lack of venture capital firms with the level of capital required to
Also no venture capital activity is reported in at the Optecbb cluster Public policy, funding and tax incentives
Also the Quebec region attracts the highest concentration of US venture capital in Canada. At the Optecbb no venture capital activities are reported
Next to the provision of a strong public research infrastructure, specific policy tools differ Canada uses predominantly R&d tax incentives to attract
No venture capital scheme in place Strong role through Tax legislation Support from regional development agency Availability of public knowledge infra
High level of Venture capital (lack though for firm growth Interactions High level of interaction: formal and
Europe has invested under (in terms of venture capital) compared to mainstream innovation areas (e g. energy generation and infrastructure)( Europe Innova, 2010
Walloon and Belgium venture capital firms are represented by the Belgian Venturing Association (BVA. Recent federal legislation
which encourages private investors to invest in non-traded venture capital, while benefiting from a tax-free status. Business angels provide start-ups with risk capital and coaching, and
and venture capital to prove the commercial viability of carbon nanotubes and nanopowders for flat screens applications (Eco-innovation Futures TNO, 2010.
and at the local level there are also Venture capital providers Large leading machinery firms had no finance difficulties for its continuous development
either through grants for R&d projects or venture capital is critical for a vital small business sector in this KET.
nanotechnology, funding (particularly availabiltiy of venture capital) is an important driver, as well as health, environment and safety concerns.
benchmark has given us some more specific insight about how KETS develop and flourish in certain regions.
-and venture capital often helps early start-up, and the market will pick up the technologies that have (partly
They for example set up venture capital schemes or make sure private actors provide seed capital. They do not shy away from interfering into the
with incubator firms, business angels, seed-and venture capital. Some clusters also provide business parks and incubator centres to support these activities.
developed private funding structures are underdeveloped (e g. venture capital, business angels Asian countries combine research and development funding with clear policy guidance in
role of regulation, funding of innovation through venture capital, and the urgent need of high qualified personnel
venture capital are important sources to complement (limited) internal funds of actors engaged in KET-related R&d.
-A vital venture capital market is important for commercialising research results in KETS through university spin-offs and other types of start-ups.
Above all, venture capital needs a supportive regulatory environment. When private venture capital markets in Europe are not fully capable of providing sufficient funds for start-up and early stage financing
public programmes may have to fill these gaps -Addressing barriers in adopting new technologies is another important policy task
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