that simplify the relationship with stakeholder groups and enable new ways of networked collaboration Lagrosen, 2005.
contribution of SMES to the global economy in promoting growth and employment opportunities Bednarzik, 2000; Hoffman et al.
the European economy. They are an essential source of jobs, create entrepreneurial spirit and innovation
-27†s nonfinancial business economy in 2008 were SMES (Eurostat, 2008. Together they accounted for
economy (Eurostat, 2008. SMES play an essential role in economic and technological development Kaufmann and TÃ dtling, 2002.
Western economies, encouraging and improving the innovative potential of small and micro firms remains at the heart of policy initiatives that provide
Economics & Statistics, 84 (2), pp. 298-309 8. Cefis E. and Marsili O. 2006.
How Smaller Companies Can Benefit form Open Innovation, Economy, Culture & History Japan Spotlight, 29 (1), pp. 13-15
explore the relationship between R&d and innovation, International Review of Applied Economics, 24 (1), pp. 95-102
Theory and Evidence, Small Business Economics 6, pp. 327-347 54. O†dwyer M.,Gilmore A. and Carson D. 2009.
Firm size and types of innovation, Economics of Innovation & New Technology, 18 3), pp. 205-223
Networks, Firm Size and Innovation, Small Business Economics, 22 (2), pp. 141-153 63. Rufat-Latre J.,Muller A. and Jones D. 2010.
ï The Creative Economy: challenges and opportunities for the DC-regions, Isabelle De Voldere, Eva Janssens, Jonas Onkelinx and Leo Sleuwaegen, April 2006, Published in English
2. 1. Business model innovation in SMES to sidestep the commodity trap...14 2. 2. The role of the initial business concept or vision...
the relevance of the experience economy for innovating SMES...22 2. 4. Different ways SMES can create value...
Technology per se has no economic value; indeed, the economic value of technology is realized when companies develop and commercialize it through a particular business model.
In all our interviews managers emphasized that business models play a primary role in SMES in low-and medium-tech
experience economy as one way to create value. Besides value creation, we also examine how small
2. 1. Business model innovation in SMES to sidestep the commodity trap Many SMES face severe commoditization pressure in their markets.
SMES that successfully sidestepped the commodity trap have changed their existing business model successfully to deliver more value for the customer at a profit.
The economic value of a technology only emerges when it is commercialized in some way 14 It is the business model that determines the economic value of a new
technology by indicating how customer value will be created and how the company can capture value from that technology.
economy for innovating SMES New offerings can create value for customers in different ways. A company might increase the
In today†s service economy many SMES wrap additional services around their products to increase customer value in exchange
established markets where scale and scope economies become the dominant driver to gain and sustain competitive advantages.
Curana is a great example that illustrates how commodities such as mudguards and other bike accessories can be used to transform bicycle riding for the end consumers into an engaging
allows them to sidestep the commodity trap. We narrowed our attention in this chapter to the role of
commodity trap and price competition are their main concerns. Once Curana was recognized as an ODM, however, it fine-tuned a new strategic direction.
room should be changed to deliver value for the different stakeholders involved. Stakeholders are, in this case, the patient, nurses, doctors, family of the patient, and so on.
PROF was structured in such a way that it could progress with the new concept for a patient room and stay in tune with the
stakeholders. PROF includes both a small and a large consortium. The small one consists of a well
the stakeholders involved. All product and services innovations were aligned with and integrated in the new patient room concept,
Other companies make money using open innovation to move from commodity products to highly differentiated products.
Denmark successfully sidestepped the commodity trap and now capture more value by focusing on how they can offer highly differentiated products and unique experiences to the consumer.
ï Moving away from commodity-like products and offer highly differentiated products (or experiences) that combine the expertise of several partners,
The current economic crisis has weakened their financial health, especially in industries that are globalizing rapidly. These
First, SMES create the majority of the jobs in these industries in Western economies Moreover, globalization and commoditization threaten many jobs
The role of the business model creating economic value from technological inventions is one of the central themes in Chesbrough, H. W. 2003), Open innovation;
Pine, B. G. and Gilmore, J. H. 2011), The experience economy, Harvard Business Review Press, Boston
Pine, B. G. and Gilmore, J. H. 1998), Welcome to the experience economy, Harvard Business Review
Injunctions, †The Journal of Law and Economics. Vol. XLIV, no. 2, 2001,573-603) for an analysis of how
becoming increasingly important for industry R&d and thus for economic growth 13 3. 1 Type of industry
Economics of Innovation and New Technology 4 (1), 41 -59 Atuahene-Gima, K.,1996. Differential Potency of Factors Affecting Innovation
Innovation Systems and Clusters in the Asymmetric Knowledge Economy. In Breschi, S.,Malerba, F. eds..
Economics 9, 33-44 Hair, J. F.,Anderson, R. E.,Tatham, R. L.,Black, W c.,1998.
H200721 21-12-2007 The Role of Export-Driven New Ventures in Economic growth A Cross-country Analysis
H200701 3-1-2007 Entrepreneurial diversity and economic growth H200627 21-12-2006 Motivation Based Policies for an Entrepreneurial EU Economy
H200626 19-12-2006 Export Orientation among New Ventures and Economic growth H200625 18-12-2006 Institutionele voorwaarden voor zelfstandig ondernemerschap
H200624 13-12-2006 Creative Destruction and Regional Competitiveness H200623 6-12-2006 Entrepreneurship, Dynamic Capabilities and New Firm Growth
in the whole economy. Future research should broaden the scope by studying open innovation in broader samples
Economics of Innovation and New Technology 4 (1), 41†59 Arora, A.,Fosfuri, A.,Gambardella, A.,2001.
Business Economics 9, 33†44 Greiner, L. E.,1972. Evolution and revolution as organizations grow
Economy). ) Statistics Netherlands, Voorburg, The netherlands Teece, D.,1986. Proï ting from technological innovation: Implications for
in the whole economy. Future research should broaden the scope by studying open innovation in broader samples
Economics of Innovation and New Technology 4 (1), 41†59 Arora, A.,Fosfuri, A.,Gambardella, A.,2001.
Business Economics 9, 33†44 Greiner, L. E.,1972. Evolution and revolution as organizations grow
Economy). ) Statistics Netherlands, Voorburg, The netherlands Teece, D.,1986. Proï ting from technological innovation: Implications for
ï The Creative Economy: challenges and opportunities for the DC-regions, Isabelle De Voldere, Eva Janssens, Jonas Onkelinx and Leo Sleuwaegen, April 2006, Published in English
2. 1. Business model innovation in SMES to sidestep the commodity trap...14 2. 2. The role of the initial business concept or vision...
the relevance of the experience economy for innovating SMES...22 2. 4. Different ways SMES can create value...
Technology per se has no economic value; indeed, the economic value of technology is realized when companies develop and commercialize it through a particular business model.
In all our interviews managers emphasized that business models play a primary role in SMES in low-and medium-tech
experience economy as one way to create value. Besides value creation, we also examine how small
2. 1. Business model innovation in SMES to sidestep the commodity trap Many SMES face severe commoditization pressure in their markets.
SMES that successfully sidestepped the commodity trap have changed their existing business model successfully to deliver more value for the customer at a profit.
The economic value of a technology only emerges when it is commercialized in some way 14 It is the business model that determines the economic value of a new
technology by indicating how customer value will be created and how the company can capture value from that technology.
economy for innovating SMES New offerings can create value for customers in different ways. A company might increase the
In today†s service economy many SMES wrap additional services around their products to increase customer value in exchange
established markets where scale and scope economies become the dominant driver to gain and sustain competitive advantages.
Curana is a great example that illustrates how commodities such as mudguards and other bike accessories can be used to transform bicycle riding for the end consumers into an engaging
allows them to sidestep the commodity trap. We narrowed our attention in this chapter to the role of
commodity trap and price competition are their main concerns. Once Curana was recognized as an ODM, however, it fine-tuned a new strategic direction.
room should be changed to deliver value for the different stakeholders involved. Stakeholders are, in this case, the patient, nurses, doctors, family of the patient, and so on.
PROF was structured in such a way that it could progress with the new concept for a patient room and stay in tune with the
stakeholders. PROF includes both a small and a large consortium. The small one consists of a well
the stakeholders involved. All product and services innovations were aligned with and integrated in the new patient room concept,
Other companies make money using open innovation to move from commodity products to highly differentiated products.
Denmark successfully sidestepped the commodity trap and now capture more value by focusing on how they can offer highly differentiated products and unique experiences to the consumer.
ï Moving away from commodity-like products and offer highly differentiated products (or experiences) that combine the expertise of several partners,
The current economic crisis has weakened their financial health, especially in industries that are globalizing rapidly. These
First, SMES create the majority of the jobs in these industries in Western economies Moreover, globalization and commoditization threaten many jobs
The role of the business model creating economic value from technological inventions is one of the central themes in Chesbrough, H. W. 2003), Open innovation;
Pine, B. G. and Gilmore, J. H. 2011), The experience economy, Harvard Business Review Press, Boston
Pine, B. G. and Gilmore, J. H. 1998), Welcome to the experience economy, Harvard Business Review
Injunctions, †The Journal of Law and Economics. Vol. XLIV, no. 2, 2001,573-603) for an analysis of how
economy bubble, or in the top list of companies offer -ing IT-related services on a global scale.
in productivity in the European economy since the mid-1990s and the opening of a wide productivity
in rates of growth between the two economies. It should be noted that the wider definition of ICT is
Andrea Bonaccorsi is professor of economics and man -agement at the University of Pisa, Italy.
-ket services sector of the economy in the first half of the 2000s. Conversely, the productivity
whose impact on the economy is pervasive, trans -versal, and deep (Bresnahan and Trajtenberg, 1995
But why did the US economy adopt ICT earlier and more productively, first in the manufacturing
Economics 2 0. 2 6 1. 3 Biology 4 0. 6 Chemistry 4 0. 6
sciences (economics) may combine their domain expertise with advanced computer science This interpretation is confirmed by Table 6, which
consider below their opportunity cost. The higher the reputation, the larger the opportunity costs In other words, we may think of this career pat
-tern as a dynamic equilibrium, in which all talented scientists are allocated to universities that make best
also by public shareholders from Italy and France. In the 2010 Scoreboard it is registered as in
U s. economic growth in the Information age. Brookings Papers on Economic activity, 1, 125†211 Kargon, R, S Leslie and E Schoenberger 1992.
Far beyond big science: Science regions and the organization of research and development. In Big science.
External economies and economic progress The case of microcomputer industry. Business History Review 66, 1†50
-vation Policies in the New Global economy. An International Comparative Analysis, P Larã do and P Mustar (eds..
Economic policy, 18 (36), 9†72 Norberg, A l 2005. Computers and Commerce. A Study of Tech
economy. Structural Change and Economic Dynamics, 11 (4 473†489 Timmer, M P and B van Ark 2005.
New Sources of Economic growth. Washington DC: Brookings Institution Van Ark, P m O†Mahony and M P Timmer 2008.
Journal of Economics, 122 (4), 1351†1408 Watson, T Jr 1990. Father, Son & Co.:
-lated issues among stakeholders, in particular at INNO-Grips workshops. Validated Policy Briefs shall be published on the INNO-Grips website
Economics, Erasmus University Rotterdam, Netherlands Disclaimer Neither the European commission nor any person acting on behalf of the Commission is responsible for the
economic theories. Most relevant here are the theories of market failure and state failure. Market failures with respect to policies in support of high
-rillasâ€. 1 These enterprises are seen as important drivers of economic growth, employment and social well -being.
Asian economies. For example, while the US are home to companies such as Google, Microsoft and Ama
economic growth and job creation) to support all SMES"a little bit, "or to concentrate efforts on those with the highest growth potential
size that does still not make much difference from a regional or national economy point of view
or economy outside the governmentâ€. 13 Policies include, but are limited not to, taxation, regulation, expendi
13 Deardorff's Glossary of International Economics, â€oepolicyâ€, accessed 2 may 2010 Policies for high-growth innovative SMES v1. 6
One with OECD economist Jonathan Potter one with US venture capital and innovation policy advisor Burton Lee,
ï Philipp Koellinger, Assistant professor in Economics at Erasmus University Rotterdam. He is asso -ciate editor of the Small Business Economics journal and has research interests and a sound publi
-cation track record in the fields of entrepreneurship and innovation These experts had agreed to review drafts of this policy brief
-frastructure and economic stability (â€oeframeworkâ€. 14 This framework is conducive to the analysis of barriers to
ï Economic stability and growth are conducive to future revenues and thus foster companies†invest -ment into growth. 16
Economic stability Right timing Resources Knowledge/skills Technological: e g R&d, IPR protection Business-related: e g management skills
Economic stability Right timing The arrow â€oeright timing†only indicates that the right time matters; it does not suggest a flow from resources to markets and incentives
economies (Germany, France, UK, Poland) are missing and no Asian country is included Exhibit 3-1: Share of high-growth enterprises (employment definition) in%of enterprises with ten or more
The current economic crisis hit the US, home to many big young global leaders worse than many European countries which are home to hidden champions
On the importance of a theoretical foundation for economic policy If policy makers seek to promote high growth of innovative SMES,
principal insights of theories of economic policy. Otherwise such policies run the risk of wasting scarce re
A study by the Finnish Ministry of the Economy published in 2011 found that in the period 2006-2009,691
A Kauffmann Institute study of the US economy in 2010 with data for 2007 contained 5. 5 million firms.
Several studies by the Finnish economist Erkko Autio published in 2007 substantiated the importance of a
Autio (2007a) concludes that â€oein order to promote economic growth, therefore, what really is needed are new
-icy for promoting technological entrepreneurship can contribute to the vitalisation of the national economy through the generation of new jobs and innovationâ€. 48
and implementation in order for economies to take full advantage of their entrepreneurial potentialâ€. 54 The study
At the beginning of 2008 the innovation department of the Ministry of Employment and the Economy estab -lished a division for growth ventures.
In terms of economic theory, coaching is a private good so that public support for facilitating coaching cannot necessarily be grounded on market failure.
-nies but also of national economies: â€oeventure capital injects economic dynamism: An increase in VC invest
114 In light of the economic crisis, Singaporean business associations started the Financial Facili -tator Programme (FFP) in January 2009, vigorously supported by the SPRING Singapore programme which
First, improved involvement of stakeholders, nota -136 For ecosystems see the related statements by Martin Fransman, INNO-Grips (2011), p. 4,
of stakeholders and experts with sectoral background and reputation. Second, its suitability for addressing advanced goals.
Is it more efficient (in terms of economic growth and job creation) to support all SMES"a little bit, "or to concentrate efforts on those with the highest growth
Some economists take the opinion that â€oeonly the market can determine what the optimal amount of entrepreneurship is.
This position is supported by US economist Scott Shane: â€oegetting economic growth and jobs creation from entrepreneurs is not a numbers game.
It is about encouraging the formation of high quality, high growth companies. Policy makers should stop subsidizing the formation of the typical start-up
and enhancing economic growth. †145 141 For example, the case study about Korea in this Policy Brief (see section 5. 1) mentions that the Korean government
terms of population, economy and †the prime criterion here †SME policies ï South korea, with a population of close to 50 million, has emerged as a primary competitor of
-sion during the economic crisis, it has one of the world†s highest shares of R&d in GDP,
-tiveness Index of 2010, is heavily suffering from the economic crisis and the 2011 Earthquake, and
and the Korean economy at large. SMBA applies more than 100 SME promotion measures Recently there have been noticeable changes in Korean SME policies.
In order to mitigate the negative effects of the economic crisis and to increase employment, the government recently introduced several new programmes and activities
transformed the country from being poverty-stricken into the world†s 15th largest economy. Now Korea is in a
The new focus is on the promotion of â€oeglobal Star SMES€ as the backbone of the economy.
economy dramatically in the coming years. Introducing a related law (Mid-sized Enterprise Promotion Act
2009 may indicate a decline caused by the worldwide economic crisis Exhibit 5-4: Development of the venture business in Korea 1998-2008
This case study has been conducted by Yoo Soo Hong, Director of the Institute for Global Innovation Economy (IGIE
/ï Korea Institute for Industrial Economics and Trade (KIET: http://www. kiet. re. kr/kiet/eng/index eng. jsp
-ery from the word-wide economic crisis to the numerous opportunities SMES have been pro -vided with, there are no evaluation studies available that could substantiate the impacts of the
60%of Singapore's workforce and contribute an approximate value-added of 40%to the local economy
In light of the economic crisis, Singaporean business associations started the Financial Facilitator Pro -gramme (FFP) in January 2009.
potential high-growth enterprises and drive the diversification of the local economy. Consequently, invest -ments by Singapore†s government are expected to rise steadily.
/ï Singapore Budget 2010-Towards An Advanced Economy: Superior skills, Quality Jobs, Higher Incomes <http://www. mof. gov. sg/budget 2010/download/FY2010 FLYERS FOR BUSINESSES. pdf
Updates to Government's Response to the Economic downturn in Asia/Pacific (IDC#AP633103S, December 2009
2. Linking government assistance (IRAP) with subsequent VC financing leads to less shareholder dilution and higher growth for the SME
-omy-The Impact of Venture capital on the Canadian Economy. Available at http://www. cvca. ca/files/Downloads/CVCA VC IMPACT STUDY JAN 2009 FINAL ENGLISH. pdf 2010 October
The Economic Importance of Venture capital Backed Companies to the U s. Economy, 2008 June at http://www. asiaing. com/venture-impact-the-economic-importance-of-venture-capital-backed
Toward a Radiant Japan identifies SMES as an engine for future high economic growth Key characteristics of SME policies in Japan
economy. The new concept guiding SME policies became to â€oedevelop and support a wide range of inde
revised in July 2010, specifically identifying SMES as one of the main drivers of the economy.
economy revitalisation. Third, the government will create platforms for growth in the areas of science, tech
post-Lehman economic downturn has led the government to focus on legislating remedial measures to sup -port struggling SMES (e g.,
Ministry of Economy, Trade and Industry (www. meti. go. jp ï White paper on Small and Medium Enterprises in Japan:
Ministry of Economy, Trade and Industry (www. meti. go. jp)( p40 †70 in 2009wp
statements, the MOIT â€oefocuses on the promotion of economic growth in Israel†and the OCS â€oeoversees all
branch of the Institut der deutschen Wirtschaft (IW, Institute for the German Economy. 164 The IW Future
trends and challenges of structural changes of the economy. The surveys include companies participating in
tribute the bulk of new jobs in a national economy, it would be a waste of resources to foster specifically
Balancing SME policies with economic policies at large The question of balancing policies for general and high-growth SMES may have to be asked even broader
Economists suggest that policy should not principally favour SMES. Which type of enterprise generates most innovations and growth de
importance of high-growth SMES for employment in developed national economies, it appears to be worth
Economic stability Economic stability and growth European monetary policy (No difference between general SME poli -cies and high-growth SME policies
Right timing Right timing (No specific issue for EU.)Swift reaction to high-growth SMES€ needs
Economics Ahmad, Nadim; Gonnard, Eric (2007: High growth enterprises and gazelles. Statistics Directorate, OECD Paper prepared for the International Consortium on Entrepreneurship (ICE) Meeting 22-23 february
Working papers series in economics and social sciences 2011/05. Febru -ary. Available at http://repec. imdea. org/pdf/imdea-wp2011-05. pdf
Research Institute of Industrial Economics Stockholm, IFN Working Paper No. 733. Available at http://www. ifn. se/Wfiles/wp/wp733. pdf
of Education and the Ministry of Employment and the Economy: Evaluation of the Finnish National In
Economics and politics research briefing. 14 september Ministry of Employment and the Economy (2011: Growth Enterprise Review 2011.
Finnish: Kasvuyrityskat -saus 2011. Available at http://www. tem. fi/files/29659/TEM KASVUYRITYSKATSAUS 2011. pdf Policies for high-growth innovative SMES v1. 6
-ness Economics, 2010, vol. 35, issue 2, pp. 203-226 Reinstaller A. coord. HÃ lzl, W.,Janger J.,Stadler,
Business Economics, Volume 33, Number 2, pp. 141-149 Simon, Hermann (2009: Hidden Champions of the Twenty-first Century:
High-growth firms and the future of the American economy. Kauffman Foundation Research Series: Firm Formation and Economic growth.
March. Available at http://www. kauffman. org/uploadedfiles/high-growth-firms-study. pdf Storey, D. J. 1994.
Small Business Economics, Vol. 32, pp. 351†374 Yim, Hyung Rok (2007: Quality shock vs. market shock:
Deardorff's Glossary of International Economics, search term â€oepolicyâ€, URL: http://www -personal. umich. edu/alandear/glossary, last accessed 2 may 2010
Ministry of Employment and the Economy of Finland, http://www. tem. fi/?/l=en&s=2383, last accessed May
Philipp Koellinger, Economics of Innovation: www. economics-of-innovation. com, last accessed May 2011 Platinn.
Plateforme innovation: http://www. platinn. ch/eng, last accessed May 2011 PRO INNO Europe, Tactics:
Jonathan Potter, OECD, Senior Economist, Local Economic and Employment Development. 1 june 2010 Burton Lee, Innovarium Ventures, 17 august 2010
3 Small Business Economics 4 Journal of Small Business Management 1 Cato 2 Journal of Public Policy and Management
Small Business Economics 2010 Parker et al What happens to gazelles? The importance of dynamic management strategy
by the Ministry of Employment and the Economy http://www. yrityssuom i. fi ***Vigo by Finnish Minis
and Economy â€oethe programme bridges the gap between early stage technology firms and international venture funding.
that have a disproportionately higher impact on the metro area economy. †East asia China Zhongguancun
-lated issues among stakeholders, in particular at INNO-Grips workshops. Validated Policy Briefs shall be published on the INNO-Grips website
Economics, Erasmus University Rotterdam, Netherlands Disclaimer Neither the European commission nor any person acting on behalf of the Commission is responsible for the
economic theories. Most relevant here are the theories of market failure and state failure. Market failures with respect to policies in support of high
-rillasâ€. 1 These enterprises are seen as important drivers of economic growth, employment and social well -being.
Asian economies. For example, while the US are home to companies such as Google, Microsoft and Ama
economic growth and job creation) to support all SMES"a little bit, "or to concentrate efforts on those with the highest growth potential
size that does still not make much difference from a regional or national economy point of view
or economy outside the governmentâ€. 13 Policies include, but are limited not to, taxation, regulation, expendi
13 Deardorff's Glossary of International Economics, â€oepolicyâ€, accessed 2 may 2010 Policies for high-growth innovative SMES v1. 6
One with OECD economist Jonathan Potter one with US venture capital and innovation policy advisor Burton Lee,
ï Philipp Koellinger, Assistant professor in Economics at Erasmus University Rotterdam. He is asso -ciate editor of the Small Business Economics journal and has research interests and a sound publi
-cation track record in the fields of entrepreneurship and innovation These experts had agreed to review drafts of this policy brief
-frastructure and economic stability (â€oeframeworkâ€. 14 This framework is conducive to the analysis of barriers to
ï Economic stability and growth are conducive to future revenues and thus foster companies†invest -ment into growth. 16
Economic stability Right timing Resources Knowledge/skills Technological: e g R&d, IPR protection Business-related: e g management skills
Economic stability Right timing The arrow â€oeright timing†only indicates that the right time matters; it does not suggest a flow from resources to markets and incentives
economies (Germany, France, UK, Poland) are missing and no Asian country is included Exhibit 3-1: Share of high-growth enterprises (employment definition) in%of enterprises with ten or more
The current economic crisis hit the US, home to many big young global leaders worse than many European countries which are home to hidden champions
On the importance of a theoretical foundation for economic policy If policy makers seek to promote high growth of innovative SMES,
principal insights of theories of economic policy. Otherwise such policies run the risk of wasting scarce re
A study by the Finnish Ministry of the Economy published in 2011 found that in the period 2006-2009,691
A Kauffmann Institute study of the US economy in 2010 with data for 2007 contained 5. 5 million firms.
Several studies by the Finnish economist Erkko Autio published in 2007 substantiated the importance of a
Autio (2007a) concludes that â€oein order to promote economic growth, therefore, what really is needed are new
-icy for promoting technological entrepreneurship can contribute to the vitalisation of the national economy through the generation of new jobs and innovationâ€. 48
and implementation in order for economies to take full advantage of their entrepreneurial potentialâ€. 54 The study
At the beginning of 2008 the innovation department of the Ministry of Employment and the Economy estab -lished a division for growth ventures.
In terms of economic theory, coaching is a private good so that public support for facilitating coaching cannot necessarily be grounded on market failure.
-nies but also of national economies: â€oeventure capital injects economic dynamism: An increase in VC invest
114 In light of the economic crisis, Singaporean business associations started the Financial Facili -tator Programme (FFP) in January 2009, vigorously supported by the SPRING Singapore programme which
First, improved involvement of stakeholders, nota -136 For ecosystems see the related statements by Martin Fransman, INNO-Grips (2011), p. 4,
of stakeholders and experts with sectoral background and reputation. Second, its suitability for addressing advanced goals.
Is it more efficient (in terms of economic growth and job creation) to support all SMES"a little bit, "or to concentrate efforts on those with the highest growth
Some economists take the opinion that â€oeonly the market can determine what the optimal amount of entrepreneurship is.
This position is supported by US economist Scott Shane: â€oegetting economic growth and jobs creation from entrepreneurs is not a numbers game.
It is about encouraging the formation of high quality, high growth companies. Policy makers should stop subsidizing the formation of the typical start-up
and enhancing economic growth. †145 141 For example, the case study about Korea in this Policy Brief (see section 5. 1) mentions that the Korean government
terms of population, economy and †the prime criterion here †SME policies ï South korea, with a population of close to 50 million, has emerged as a primary competitor of
-sion during the economic crisis, it has one of the world†s highest shares of R&d in GDP,
-tiveness Index of 2010, is heavily suffering from the economic crisis and the 2011 Earthquake, and
and the Korean economy at large. SMBA applies more than 100 SME promotion measures Recently there have been noticeable changes in Korean SME policies.
In order to mitigate the negative effects of the economic crisis and to increase employment, the government recently introduced several new programmes and activities
transformed the country from being poverty-stricken into the world†s 15th largest economy. Now Korea is in a
The new focus is on the promotion of â€oeglobal Star SMES€ as the backbone of the economy.
economy dramatically in the coming years. Introducing a related law (Mid-sized Enterprise Promotion Act
2009 may indicate a decline caused by the worldwide economic crisis Exhibit 5-4: Development of the venture business in Korea 1998-2008
This case study has been conducted by Yoo Soo Hong, Director of the Institute for Global Innovation Economy (IGIE
/ï Korea Institute for Industrial Economics and Trade (KIET: http://www. kiet. re. kr/kiet/eng/index eng. jsp
-ery from the word-wide economic crisis to the numerous opportunities SMES have been pro -vided with, there are no evaluation studies available that could substantiate the impacts of the
60%of Singapore's workforce and contribute an approximate value-added of 40%to the local economy
In light of the economic crisis, Singaporean business associations started the Financial Facilitator Pro -gramme (FFP) in January 2009.
potential high-growth enterprises and drive the diversification of the local economy. Consequently, invest -ments by Singapore†s government are expected to rise steadily.
/ï Singapore Budget 2010-Towards An Advanced Economy: Superior skills, Quality Jobs, Higher Incomes <http://www. mof. gov. sg/budget 2010/download/FY2010 FLYERS FOR BUSINESSES. pdf
Updates to Government's Response to the Economic downturn in Asia/Pacific (IDC#AP633103S, December 2009
2. Linking government assistance (IRAP) with subsequent VC financing leads to less shareholder dilution and higher growth for the SME
-omy-The Impact of Venture capital on the Canadian Economy. Available at http://www. cvca. ca/files/Downloads/CVCA VC IMPACT STUDY JAN 2009 FINAL ENGLISH. pdf 2010 October
The Economic Importance of Venture capital Backed Companies to the U s. Economy, 2008 June at http://www. asiaing. com/venture-impact-the-economic-importance-of-venture-capital-backed
Toward a Radiant Japan identifies SMES as an engine for future high economic growth Key characteristics of SME policies in Japan
economy. The new concept guiding SME policies became to â€oedevelop and support a wide range of inde
revised in July 2010, specifically identifying SMES as one of the main drivers of the economy.
economy revitalisation. Third, the government will create platforms for growth in the areas of science, tech
post-Lehman economic downturn has led the government to focus on legislating remedial measures to sup -port struggling SMES (e g.,
Ministry of Economy, Trade and Industry (www. meti. go. jp ï White paper on Small and Medium Enterprises in Japan:
Ministry of Economy, Trade and Industry (www. meti. go. jp)( p40 †70 in 2009wp
statements, the MOIT â€oefocuses on the promotion of economic growth in Israel†and the OCS â€oeoversees all
branch of the Institut der deutschen Wirtschaft (IW, Institute for the German Economy. 164 The IW Future
trends and challenges of structural changes of the economy. The surveys include companies participating in
tribute the bulk of new jobs in a national economy, it would be a waste of resources to foster specifically
Balancing SME policies with economic policies at large The question of balancing policies for general and high-growth SMES may have to be asked even broader
Economists suggest that policy should not principally favour SMES. Which type of enterprise generates most innovations and growth de
importance of high-growth SMES for employment in developed national economies, it appears to be worth
Economic stability Economic stability and growth European monetary policy (No difference between general SME poli -cies and high-growth SME policies
Right timing Right timing (No specific issue for EU.)Swift reaction to high-growth SMES€ needs
Economics Ahmad, Nadim; Gonnard, Eric (2007: High growth enterprises and gazelles. Statistics Directorate, OECD Paper prepared for the International Consortium on Entrepreneurship (ICE) Meeting 22-23 february
Working papers series in economics and social sciences 2011/05. Febru -ary. Available at http://repec. imdea. org/pdf/imdea-wp2011-05. pdf
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