WARN-Count in xref table is 0 at offset 829292 Luminiå£a Nicolescu, Ciprian Nicolescu ISSN 2071-789x RECENT ISSUES IN ECONOMIC DEVELOPMENT Economics & Sociology, Vol
Luminiå£a Nicolescu, Ciprian Nicolescu ISSN 2071-789x RECENT ISSUES IN ECONOMIC DEVELOPMENT Economics & Sociology, Vol. 5, No 2a, 2012 72 that analyse innovations in SMES
and to comment on the influence of the recent economic crisis on them. It has a descriptive character, offering a general image of innovations in Romanian SMES, ending with a couple of advices for policy and organisational decision making.
Laforet and Tann (2006) discuss the different streams in SMES innovation research (as being oriented economics stream, the organization-oriented stream and the project-oriented stream),
DEVELOPMENT Economics & Sociology, Vol. 5, No 2a, 2012 73 Mitchell, 2007) and concluded that innovation studies in SMES must be highly contextualized
, cultural attitudes to bribery, lack of transparency, informal economy), environmental barriers and skill barriers. A completely different situation was portrayed for SMES in the food and drink industry in UK,
The Romanian economic context †economic crisis and effects Romania was and still is influenced by the economic evolutions at the world level.
The economic crisis that hit the world in 2007 was also felt by the Romanian economy,
even though with a particular time lag. The global financial crisis that determined the collapse of a number of financial institutions,
the closing down of many companies and consequently the loss of jobs affected many economies, including the Romanian one.
In an unstable international economic context, the first obvious sign of the economic crisis were felt in Romania in 2009,
when it took place a drastic contraction of the economic activity reflected in the decrease of the real GDP with 6. 6%.The decreasing trend continued in 2010,
Inflation increased immediately in 2008 with 3%from 4. 8%in 2007 to 7. 8%in 2008 and maintained relatively high levels up to 2011,
when it was 4%and Luminiå£a Nicolescu, Ciprian Nicolescu ISSN 2071-789x RECENT ISSUES IN ECONOMIC DEVELOPMENT Economics & Sociology, Vol. 5, No 2a,
Due to the economic crisis the level of economic activity diminished in Romania in the last years and SMES had to adapt their level of business to the market conditions from both the internal and the external markets.
as in the last years, hit by the economic crisis many SMES went from the medium to small size due to the decrease in the number of employees.
ISSN 2071-789x RECENT ISSUES IN ECONOMIC DEVELOPMENT Economics & Sociology, Vol. 5, No 2a, 2012 75 economic branches †TOTAL number Industry 26.44%17.17
Ciprian Nicolescu ISSN 2071-789x RECENT ISSUES IN ECONOMIC DEVELOPMENT Economics & Sociology, Vol. 5, No 2a, 2012 76 Sources:
when the Romanian economy had an ascending economic trend, the peak being registered in 2006/2007
, Ciprian Nicolescu ISSN 2071-789x RECENT ISSUES IN ECONOMIC DEVELOPMENT Economics & Sociology, Vol. 5, No 2a, 2012 77 last year.
However, starting 2007/2008 †once the global economic crisis had begun †the trend towards introducing new technologies decreased.
illustrating the negative influence of the economic crisis on innovative activities in Romanian SMES. Other negative tendencies include the doubling of the percentage of SMES that have not conducted innovative activities at all,
who are focused more on short term survival rather than innovating in a period of economic crisis. The level of investment in innovative activities illustrates the propensity towards implementing organizational changes that would sustain the future growth of the organization.
This trend is attributable also to the economic crisis. On overall, in the analyzed period, the percentage of SMES investing g highly in innovations is small
Overall, financial difficulties are common for Luminiå£a Nicolescu, Ciprian Nicolescu ISSN 2071-789x RECENT ISSUES IN ECONOMIC DEVELOPMENT Economics & Sociology, Vol. 5, No 2a
Ciprian Nicolescu ISSN 2071-789x RECENT ISSUES IN ECONOMIC DEVELOPMENT Economics & Sociology, Vol. 5, No 2a, 2012 79 Sources:
Luminiå£a Nicolescu, Ciprian Nicolescu ISSN 2071-789x RECENT ISSUES IN ECONOMIC DEVELOPMENT Economics & Sociology, Vol. 5, No 2a, 2012 80 After an initial increase
the web-based Luminiå£a Nicolescu, Ciprian Nicolescu ISSN 2071-789x RECENT ISSUES IN ECONOMIC DEVELOPMENT Economics & Sociology, Vol. 5, No 2a, 2012 81
not only as fallout of the economic crisis, but also as potentially improved internal communication and business mechanisms within the company.
Generally speaking, SMES are perceived to lag behind large Luminiå£a Nicolescu, Ciprian Nicolescu ISSN 2071-789x RECENT ISSUES IN ECONOMIC DEVELOPMENT Economics & Sociology, Vol. 5, No 2a, 2012
The economic crisis had a negative impact on them in the last few years. Investments for innovations decreased in time in SMES,
especially since the economic crisis reached Romania as well, which ended up in 2011 with almost half of SMES without any investible surplus at all for innovations. c) innovations decreased in the last few years in Romanian SMES.
Luminiå£a Nicolescu, Ciprian Nicolescu ISSN 2071-789x RECENT ISSUES IN ECONOMIC DEVELOPMENT Economics & Sociology, Vol. 5, No 2a, 2012 83 Based on this general
as a country affected by the economic crisis much like the whole Europe and the practically the entire globe world, is seen also as having negatively impacted SMES€ activity
since the start of the economic crisis with more than 35%of SMES not being involved at all in innovative activities after 2009. b) in spite of the generally decreasing trends in innovative activities in SMES,
b) as one way to better cope with the economic crisis, by assimilating cheaper ways of doing business.
a) offers information about innovative activities in SMES, seen at a general level, within an economy wide sample,
Luminiå£a Nicolescu, Ciprian Nicolescu ISSN 2071-789x RECENT ISSUES IN ECONOMIC DEVELOPMENT Economics & Sociology, Vol. 5, No 2a, 2012 84 References Avermaete
Luminiå£a Nicolescu, Ciprian Nicolescu ISSN 2071-789x RECENT ISSUES IN ECONOMIC DEVELOPMENT Economics & Sociology, Vol. 5, No 2a, 2012 85 Ngugi, K
Our goal is to develop an innovation-driven economy that maintains competitive advantage and increases productivity.
We have identified ten key policy areas that underpin the Government†s approach to innovation in support of the knowledge economy and enterprise.
and a commitment to innovation that is unmatched by competing economies. In short, our ambition is to put innovation at the core of our policies and strategies for the future,
In this Innovation Policy Statement we identify ten key policy areas where innovation will be exploited in support of enterprise and the knowledge economy.
and will enhance the development of a knowledge-based economy. Building a world-class research system Knowledge creation Innovation in Ireland 2008 Main aims of the Strategy for Science,
and equip them with generic and transferable professional skills that are relevant to a modern knowledge-based enterprise economy;
and equip them with generic and transferable professional skills that are relevant to a modern knowledge-based enterprise economy;
R&d expenditure Gross expenditure on R&d (GERD) across all sectors of the economy reached â 2. 33 billion in 2006,
Innovation in Ireland 2008 7 One of the most important assets in Ireland†s innovation system †and vital in a small economy with limited resources †is the quality of the public
so that it delivers optimal returns to The irish economy. Enterprise Ireland coordinates Irish participation in the EU Framework Programmes
Better skilled and better educated employees are good for the economy as a whole and for the firms that employ them.
The National Framework of Qualifications Continuously updating the skills of our workforce in a knowledge economy requires a flexible framework,
robust enough to respond to the needs of the economy, and, at the same time, provide authoritative accreditation of qualifications in which all stakeholders can have confidence.
The National Framework of Qualifications (NFQ) provides a single unified framework with the potential to cover all awards in the State.
Towards a National Skills Strategy sets out a vision of Ireland in 2020 in which a well-educated and highly skilled population contributes to a competitive, innovation-driven, knowledge-based economy.
and develop all-island business networks in sectors that are considered to be especially important for future economic growth,
and more successful economies and help increase innovation and productivity levels of their constituent parts.
confidence and consistency to all stakeholders and underpin Ireland†s attractiveness as a location for R&d and its subsequent exploitation.
The Government and state agencies recognise the great potential value of innovation in services to The irish economy.
Tapping the entrepreneurial skills of immigrants Immigrants are making a significant contribution to Irish society and economy.
They can make a material and positive impact on future social and economic growth. The State agencies are working to maximise the opportunities presented by this new pool of talent,
This has led to a series of detailed programmes that have delivered unprecedented levels of economic stability, social cohesion and industrial peace.
The key message of the National Workplace Strategy is that the quality of Irish workplaces is critical to Ireland†s transition into an even more dynamic, highly skilled, innovative and knowledge-based economy.
Enhancing competition within Ireland†s domestic economy is critical to improving the cost competitiveness of internationally-trading Irish-based firms.
and have described the substantial progress that we have made in building capacity and in drawing out the latent imagination and creativity within The irish economy.
An important shift has occurred from the â€oemanaged†to the â€oeentrepreneurial†economy, associated with a fall in the importance of economies of scale in production, management, finance and R&d.
It is characterised by a series of trends encompassing the emergence of the knowledge economy, open innovation, global connections, non-technological innovation, the â€oesilicon Valley Business Model†and social entrepreneurship and social innovation.
New firms and innovating SMES are seen best as agents of change in the economy, introducing new products and services and more efficient ways of working.
They underpin the adaptation of our economies and societies to new challenges and drive economic development.
Many empirical studies have shown the aggregate relationships between entrepreneurship and SME activity and economic growth and job creation.
and business start-up rates are associated with more rapid economic growth (Audretsch and Thurik, 2001; Audretsch and Keilbach, 2005;
as new and small firms take up labour released by downsizing elsewhere in the economy and increase national and local competitiveness (Neumark et al.,
and economic crisis since it is clear that policies enabling innovation in new and small businesses will have benefits not just for improving products
The chapter starts by examining how global trends towards the knowledge economy, open innovation, global connections and non-technological innovation and the emergence of national and regional economic models and new types of social innovation have increased the importance of SMES and entrepreneurship to innovation.
From the late 1970s to today the structures and operations of advanced economies have again been changing.
and entrepreneurship in today†s economy is reduced the importance of economies of scale and scope in production,
i e. the capacity of firms and economies to specialise, able to produce output for niche markets,
the knowledge economy; open innovation; global connections; non-technological innovation; the â€oesilicon Valley Business Modelâ€,
The knowledge economy One of the features of the transition from the 20th to the 21st century has been the emergence of the knowledge economy,
and hence a shift in the specialisation of advanced-economy firms towards more knowledge-based activities that are tied more closely to local knowledge resources and capabilities.
the knowledge economy is not just an advanced world phenomenon. Emerging economies as well are engaging more with science
and technology and ideas-based production as firms around the world all seek to achieve product differentiation and greater productive efficiency.
The major feature of the knowledge economy is increased the importance of knowledge as a factor of production.
This is what is seen now generally by economists to be the major factor behind the bulk of economic growth, the growth that is not due to additions to capital and labour stocks.
Some of the ideas driving economic growth may be the result of scientific breakthroughs in large firms and universities,
Indeed, one of the reasons that new start-ups and small firms have become more important today is that innovation in the knowledge economy is coming from creativity and the unexpected,
because the services sector has seen a dramatic rise in its share of economic value added in recent years (rising for example from 55%to 70%of Japanese
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 consider its social contribution.
But state budgets are not keeping pace with the growing needs and expectations, particularly with the consequences of the global financial and economic crisis,
This too can be seen as part of the above-mentioned shift from the managed to the entrepreneurial economy.
and a central role of unions and employers in regulating the economy and society in partnership with government.
Taken together, the trends outlined above †the shift from the managed to the entrepreneurial economy
the growth of the knowledge economy, open innovation, increased global connections, non-technological innovation, the Silicon valley business model,
What has emerged is an economy in which SMES and entrepreneurship are now critical players in a broader, more distributed innovation process.
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.
and adopting incremental innovations that bring the economy closer to its technological frontier. The ideas for these innovations may be developed internally by the SME or start-up,
It is entrepreneurs who bring about change in an economy by providing â€oenew combinationsâ€: new or improved goods, methods of production, markets, sources of supply of inputs, organisation of an industry,
They disrupt markets, leading to long-run evolutionary growth in the economy. l The entrepreneur as an opportunity identifier.
although Drucker†s main focus is more on firm strategy and competitiveness than aggregate economic growth. l The entrepreneur as a breakthrough innovator.
Like Schumpeter, Baumol (2002) adopts a dynamic framework examining the relationship between entrepreneurship, innovation and economic growth.
l Entrepreneurs are those persons (business owners) who seek to generate value, through the creation or expansion of economic activity,
processes or markets. l Entrepreneurial activity is the enterprising human action in pursuit of the generation of value, through the creation or expansion of economic activity,
It is oriented this innovation activity that promotes economic growth and solves social problems. In order to understand more fully how start-up enterprises
Creative destruction Venture creation and SME growth renew economies by forcing the contraction, exit or upgrading of incumbent competitors.
thus increasing the average productivity of the economy and driving economic growth. There is also an indirect impact,
At the same time productivity may be enhanced as new firms bring better products and services and better technologies into the economy.
which many economists understand economic growth. Investments in new knowledge are seen to spill over in part to other agents,
and economic growth through their role in promoting knowledge spillovers. The relationship may involve not just the role of new start-ups in exploiting knowledge themselves but also the role of new enterprises and SMES as participants in knowledge exchange networks within innovation systems, stimulating knowledge transfers from universities and other
and economies combine them to varying degrees, the distinction serves to highlight the need for a holistic innovation approach that recognises the importance of both kinds of processes and differences in the types of barriers that affect SMES and start-ups under each.
This state of affairs arises as a consequence of the shift from the managed to the entrepreneurial economy
innovation policy in the entrepreneurial economy must expand to include new types of actions for entrepreneurship and SMES.
and excluding large parts of the non-technology economy. It is typified by the European union Barcelona Summit headline goal of achieving an increase in the proportion of European GDP invested in research and development from 1. 9%in 2002 to 3. 0%in 2010.
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,
Furthermore, the process of creative destruction is pronounced most in periods of economic crisis and recovery, as the global economy is 1. INTRODUCTION SMES,
ENTREPRENEURSHIP AND INNOVATION Â OECD 2010 39 experiencing today. As the incumbent firm stock is contracted,
and investment subsidies and the improvement of productivity by helping new and small firms to carry innovations into the economy. l Access to finance.
One of the contributions of new firms and SMES to the economy is breakthrough innovation.
which could contribute more to the economy if they begin to innovate incrementally and strengthen their non-technological innovation.
and constraints across 40 economies and examines the major and new policies that have been introduced. Among the issues identified, it underlines the relevance of three major policy areas highlighted in this introduction,
the Knowledge Filter and Entrepreneurship in Endogenous Growthâ€, Centre for Economic policy Research Discussion Paper No. 4783, Centre for Economic policy Research:
An Empirical Assessmentâ€, Centre for Economic policy Research Discussion Paper 5409, Centre for Economic policy Research, London.
and B. Carlsson (2009), â€oethe Knowledge Spillover Theory of Entrepreneurshipâ€, Small Business Economics, Vol. 32, pp. 15-30.
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. Audretsch, D. and R. Thurik
), â€oetotal Factor Productivity and the Role of Entrepreneurshipâ€, Jena Economic Research Papers 2008-19, Friedrich Schiller University and the Max Planck Institute of Economics, Jena.
Henrekson, M. and D. Johansson (2008), â€oegazelles as Job Creators †A Survey and Interpretation of the Evidenceâ€, IFN Working Paper 733, Research Institute of Industrial Economics, Stockholm.
Learning Economy: Implications for Innovation Policyâ€, Report to the European commission, Directorate General Science, Research and development, Brussels. Malecki, E. 2008), â€oehigher Education, Knowledge Transfer Mechanisms and the Promotion of SME
and Financingâ€, The Review of Economics and Statistics, Vol. 77, No. 1, pp. 55-65.
2007), The Social Economy: Building Inclusive Economies, OECD, Paris. OECD (2002), High-growth SMES and Employment, OECD, Paris. OECD (2003), The Nonprofit Sector in a Changing Economy, OECD
, Paris. OECD (2004), Global Knowledge Flows and Economic Development, OECD, Paris. OECD (2006a), Innovation and Growth in Tourism, OECD, Paris. 1. INTRODUCTION SMES
Firm Formation and Economic growth Paper No. 1, Ewing Marion Kauffman Foundation, WASHINGTON DC. Stuart, T. 2000), â€oeinter-organisational Alliances and the Performance of Firms:
Entrepreneurship, Economic growth, and Policyâ€, in Z. Acs, D. Audretsch and R. Strom (eds.),Entrepreneurship, Growth,
and propose practical reforms with the ambition of making the UK a global open innovation hub as part of the urgent task of rebalancing and growing the UK economy,
Here the term †open innovation†refers to both the sourcing and involvement of external organisations and stakeholders in the innovation process,
either from shareholders or other stakeholders †to be open for the sake of it,
whether this meant the government†s recently-announced †patent box†fiscal policy †designed to increase the number of operations like Sandwich in the UK †was busted a flush
and new employment opportunities) then the nature of these cash flows is increasingly important for government growth and economic policy.
Given that for the foreseeable future the fastest growing markets are likely to be in emerging economies such as India and China,
There is little doubt that returns to commercialisation will be centred increasingly on these economies. Does this mean that greater levels of open innovation within corporate innovation activities will see innovation investment increasingly sourced
It enables the company to process a vast number of orders at a negligible marginal cost,
but this large fixed cost is offset by a small marginal cost of using the infrastructure.
UK Public policy and open innovation occurrence of open innovation is given by a number of broader drivers of long-term change within western economies,
particularly those classed under the †knowledge economyâ€. 9 Elements from the broader knowledge economy affording a greater level of open innovation would include:
which support the knowledge economy are supportive of open innovation practices. The evolving focuses of our universities (exemplified by the changing impact assessment guidelines)
it is also likely that open innovation within a knowledge economy will have a particular impact on certain industrial sectors †some
C.,Sissons, A. and Holloway, C. 2011) A plan for growth in the knowledge economy, London:
These challenges of increasingly open value chains for a range of stakeholders are the focus of Chapter 3. 23 Missing an open goal?
and through the dispersal of knowledge into the broader economy by educating students who go on to work outside academia.
the better to allow maximum outflow of knowledge and innovation into the national economy. In reality, the blanket mandating of openness (or closedness) doesn†t work:
The challenge for universities is to be able to make decisions regarding the balance of openness in their role between the value to business and the value to the national economy. 16 Cohen, Wesley, M.,Nelson, Richard, R.,Walsh
For the foreseeable future the fastest-growing markets are likely to be located in emerging economies such as India and China.
Equally, if returns to commercialisation activities are centred increasingly on emerging economies, then rapidly-growing domestic market organisations
and an important creator of value within the economy. Within innovation value chains its activity can be viewed as commercialisation-related †the sector creates value by applying its knowledge of
Such changes may also impact negatively rganisations in the UK †and therefore potentially the UK economy as a whole â€
if more firms within an economy do so †it should, for example, result in more high performance firms. 18 Unfortunately the model of open innovation presented here potentially represents a greater win for a single large firm than for the whole economy.
Take for example, the acquisition of a UK-based SME by a large non-UK multinational. Interpreted in the context of Figures 1 (closed) and 2 (open) in Chapter 2 represents a positive opportunity for a multinational company to exploit ideas
However, this is not necessarily a gain for the SME€ s native national economy †the innovation could perhaps have been developed further by the SME
In this way many of the firm-level wins from an open innovation strategy represent a zero-sum game at the level of the economy
or innovation system †i e. the economy will not be strengthened by more organisations pursuing more open innovation strategies.
It is far from clear that trades of such enterprises reliably capture their true value †especially to national economies â€
which knowledge moves around our economy. In this sense open innovation is a great 21 opportunity
Correcting for a changing innovation investment landscape The UK€ s position as a predominantly knowledge-based economy in the UK makes its degree of investment in innovation probably its only source of enduring competitive advantage.
But do greater levels of open innovation across the economy threaten that overall level of investment?
the policy agenda must generate infrastructures that support open innovation practices at the points in global industrial innovation value chains where that approach is likely to play to the strengths of the UK economy.
The intellectual property regime Confidence in the currency of intellectual property becomes even more fundamental to economic activity in the context of open innovation †securing market clarity is important here,
†the intellectual property system must incentivise and reward inventiveness and creativity throughout the economic system rather than the current winner-takes-all approach,
there is a clear case for reappraising the UK financial sectors†position in supporting the knowledge economy
when the incentive structures for developing innovations in the private sector have been unclear. 31 30 Hutton, W. and Nightingale, P. 2011) The Discouraged Economy:
for the knowledge economy, the presence of strong business services networks are an equally important consideration.
Policy thinking must look beyond this †even if open innovation is on balance a negative for our economy
and rebalance and grow the UK economy. †The Big Innovation Centre brings together some of the world†s leading companies with key institutions from across the policy landscape,
of how innovation ecosystems operate in different parts of our economy. It will look to map the role of open innovation activities
of Resources to Invention†in Nelson, R. R. ed.)The Rate and Direction of Economic activity, Princeton university Press, N y. Birkinshaw, J.,Bouquet, C. and Barsoux, J.-L. 2010
UK Public policy and open innovation Levy, C.,Sissons, A. and Holloway, C. 2011) A plan for growth in the knowledge economy, London:
the Case of the Cornish Pumping Engineâ€, Cambridge Journal of Economics, Vol 28, pp347-363.
and to stimulate sustainable economic growth and job creation. Market failure involves a number of different factors.
These include Building the Smart Economy, 2008, and the National Recovery Plan as well as Ahead of the Curve, 2004 (Enterprise Strategy Group) and the Report of the Innovation Task force, 2010.
Understanding Economic growth, OECD,(2005) 4 Making it Happen †Growing Enterprise for Ireland, Forfã¡s, 2010 FORFà S EVALUATION OF ENTERPRISE SUPPORTS FOR START-UPS & ENTREPRENEURSHIP 5 The Action Plan for Jobs published in 2012 places an increased emphasis on supporting indigenous start-ups.
A Cost Benefit Analysis (CBA) was conducted over a 7 year period for each of the 2005 and 2006 cohorts to establish the impact to the wider economy.
The stitutes of Te 1 for 2005 a butable to a sing to trade economy. rated per an f 95-100 amb of HPSUS gen status. Highe outs from re e Action Plan
The economic value of the CEB soft supports depends somewhat on the prevailing economic environment and unemployment levels.
the entrepreneurship and start-up supports examined are in alignment with Government policy and mirror practices in many innovation driven economies.
The desire to proactively develop the enterprise base to stimulate sustainable economic growth and job creation has remained also constant,
The 31 While policies such as the Smart Economy document National Recovery Plan and successive strategies of the Department of Jobs Enterprise and Innovation recognise the importance of supporting start-up activity,
or other improvements that spill over to the rest of the economy but these may not be a factor in private investment decisions;
and to stimulate sustainable economic growth and job creation. In general, companies that emanate from entrepreneurial activity are the feedstock for future employment and growth.
Financial market imperfections may be addressed by grant aid. 36 Action Plan †the European Agenda for Entrepreneurship, European commission, COM (2004) 37 Understanding Economic growth, OECD,(2005
and Challenges Relevant Government strategies over the period of review reflect the importance of supporting start-up companies as a means to stimulate economic growth and employment.
2004, Building the Smart Economy, 2008, the Report of the Innovation Task force, 2010 and the National Recovery Plan.
These are relevant to all firms in the economy, and particularly so for start-up activity:
As an open economy that is reliant on export performance for economic growth, relative cost competitiveness comes into sharp focus for Ireland.
This echoes enterprise policy in most innovation-driven economies, particularly the US, Australia, Denmark, Finland, The netherlands and Sweden, where there is a focus on supporting high potential start-up companies. 2. 4 Evaluation
which reported in 2004 cited â€oeinternationally-traded services sector†as â€oeforming an increasingly important component of trade in the economies of the more developed countries,
Enterprise Ireland†s corporate strategy (2008-2010) points to â€oethe flow of innovative start-ups into The irish economy which is critical for future growthâ€.
which ov f HPSU inves t Analysis (C from the 10 propriate ove rt. der economy rced service ormally categ t costs were g
with a knock-on effect on the benefit to the wider economy. Table 2. 12: Seven Year Benefit-to-Cost Ratios for 2005 and 2006 HPSUS Year of Entry to HPSU CBR 2005 2. 67 2006 3. 98 2. 10
and its approach also reflects international practice in innovation driven economies. The support is tailored to individual client needs
and services that can add value in the domestic economy and have potential to export.
it is however something that merits further monitoring as the programmes continues. 66 6 Enterprise Ireland Propel Programme Programme Logic Model Objectives The strategic objective of the Enterprise Ireland Propel programme is to improve the overall economy of Ireland by:
the programme providers and stakeholders to assess their views on the programme and its impacts.
The strategic objective of Propel is to improve the overall economy of Ireland by: Increasing the number
as Ireland faces very challenging economic conditions, the Government†s Building the Smart Economy, 2008 discusses the importance of providing â€oestrong supports for start-up companies
Building on the Smart Economy strategy, the Report of the Innovation Taskforce, 2010 states that â€oepolicy and investment decisions must be centred on supporting
Ahead of the Curve, 2004, Building Ireland†s Knowledge Economy †The irish Action Plan for Promoting Investment in R&d to 2010, Forfã¡
and start-ups are significant drivers of economic growth and that supporting entrepreneurs and start-ups has a key role to play in Ireland†s return to sustainable growth and job creation.
and Enterprise Ireland worked with a number of stakeholders and partners in delivering this programme including the South East Business Innovation Centre,
As such collaboration with academic and/or enterprise partners is often essential to realise the full potential of innovative business ideas in terms of economic growth and job creation.
In December 2008, the Government published Building Ireland†s Smart Economy †A Framework for Sustainable Economic Renewal in response to the economic challenges facing Ireland.
It emphasised the importance of â€oebuilding the innovations or †ideas†component of the economy through the utilisation of human capital-the knowledge,
skills and creativity of people-and its ability and effectiveness in translating ideas into valuable processes, products and services. †Building on the Smart Economy strategy, the Report of the Innovation Taskforce (2010) places
innovation and entrepreneurship at the heart of driving increased productivity and economic growth. It reaffirms the importance of driving innovation in the indigenous company base and on increasing commercialisation of the R&d activity within the HEI€ s. In particular,
will be the lifeblood of The irish economy. Supporting these companies is a key objective for Enterprise Ireland. †Making it Happen †Growing Enterprise for Ireland, Forfã¡
Innovation is viewed as an essential element for driving economic growth and the report emphasises the strong role of entrepreneurship and the commercialisation of academic R&d in increasing innovation.
which was developed in the context of Ireland†s challenging economic environment the plan emphasised the absolute need to support economic growth
and innovations from the higher education sector to promote economic growth, it states that â€oewe will promote
and to promote the initiative to all stakeholders. The Pilot phase was attended by 144 individuals.
This increases the likelihood that the business idea is successful and ultimately leads to increased economic growth in terms of jobs and exports.
The empirical evidence77 shows that venture-backed start-ups redefine the US economy through direct and spillover effects.
The PWC study preceded the global financial crisis and the downturn in the national economy. In assessing the impacts of the Enterprise Ireland Seed
In parallel to this enterprise strategy report, Building Ireland†s Knowledge Economy †The irish Action Plan for Promoting Investment in R&d to 2010 was launched in July 2004.
as Ireland faces very challenging economic conditions, the Government†s Building the Smart Economy, 2008 aspires to make Ireland â€oean innovation
Building on the Smart Economy strategy the Report of the Innovation Taskforce, 2010 states that â€oeventure capital has a particularly important role to play in high-growth enterprises. †It refers to the role of Enterprise Ireland
and the absolute need to support economic growth committed to introducing the Innovation Fund Ireland86 to â€oeattract international venture capital fund managers to Ireland,
unemployment and low economic growth in Ireland. It was recognised that micro enterprises (employing 10 or less people) could be a valuable source of employment and economic growth,
and that at that time, there was a gap in the provision of state supports to those enterprises.
In some instances, individual CEBS may have set out their own targets. 9. 4 Rationale for Government Intervention The role of entrepreneurship in driving economic growth is accepted well.
Secondly, at times of high unemployment, where there are unused or underused resources in the economy, start-up activity may utilise surplus resources thereby creating additional wages, profits and tax revenues.
or other improvements that spill over to the rest of the economy and are reckoned not in private decisions;
These refunds are made at national level to the State 116 OECD. 2005, Understanding Economic growth 124 9. 5 Alignment with National Policy During the period under review,
and small and medium business play in the development of the national economy. The National Development Plan 2007-2013
will be of long term benefit to the local economy. A number of CEBS operate a Hi-Start programme
The Economic Journal, 90 (357). 1980 FORFÃ S EVALUATION OF ENTERPRISE SUPPORTS FOR START-UPS & ENTREPRENEURSHIP 139 At times of high unemployment, where there are unused or underused resources in the economy,
There are significant long term benefits for the economy arising from a high level of start-ups in terms of productivity,
With the current rate of unemployment and the existence of unused resources in the economy
Grant Evaluation Methodology and Recommendations Grant employed mixed methods involving literature review, stakeholder consultations, value for money analysis,
A series of consultations were held with all stakeholders involved in rounds One and Two of the Propel programme.
Some allowance for the likely future impact of the programme was sought through assessing the business plans of the participants Stakeholders and participant consultations:
stakeholders in Graduate Enterprise Programmes including one to one interviews 152 In addition, a member of the evaluation team attended one day of the two day residential workshops and observed trainers,
but based on participant and stakeholder feedback their implementation would increase programme effectiveness; for instance, using Enterprise Ireland Technical staff to complete a Technical Assessment during Phase I of the programme.
s, DJEI February 2014 Consumer Costs and Inflation Forfã¡s February 2014 State Investment in Research and development 2012 †2013 Forfã¡
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