more prominent role in the economies of most European and Asian countries The type of customers that SMES serve also influences the type of innovation they undertake
nations from product-based to service-based economies, research agendas have not kept pace 23 Indeed, the research literature on innovation divides strongly into two separate areas of
The interviewees varied greatly in their opinion about the role of MEP in the economy
Competing in a Service Economy: How to Create a Competitive Advantage Through Service Development and Innovation.
of scale economies which small firms face in all aspects of business --Flexible specialisation has proven to be a particularly successful model of industrial organisation:
This explains why economists have reopened the debate on whether some market and systemic failures disproportionately affect small firms,
3. Both scale economies and research and development have become more important instruments for competitiveness in the global economy.
what triggered the wave of globalisation reshaping the economy at the end of the 20th century.
machines and electronic communication superhighways, The Economist recently proclaimed â€oethe Death of Distance†on its front page. 2 While the telecommunications revolution has brought the cost of
â€oethe Death of Distance, †The Economist, 30,september 1995 3 â€oethe Downsizing of America, †New york times, 3 march, 1996, p. 1
By contrast, the rest of the economy experienced fairly steady growth at around 3%over this period. 5 Innovative activity of in the United states has jumped, as evidenced
competitiveness in a globalizing economy. This background paper discusses some of the strategies open to SMES as they try to become more productive and shift more knowledge-based activities
â€oethe Valley of Money†s Delights, †The Economist, 29,march 1997, special section, p. 1 5 Kortum and Lerner 1997, p. 1
the majority of SMES manage the transition to a global, knowledge based economy Competitiveness Strategies
given industry†s underlying technological conditions, scale economies, and demand. Where scale economies are important,
the revolving door model is more common. While start-ups and new entrants may not be deterred by the presence of high scale economies,
a process of firm selection ensures that only those firms that grow will be able to survive beyond more than a few years
mechanism-the extent of scale economies-may ultimately be forced to exit out of the industry.
untapped in the economy The Information technology Strategy 37. A second strategy SMES can use to improve their competitiveness in global markets involves the
and the microprocessor, help mitigate economies of scale and the gains traditionally associated with large-scale production.
reach scale economies. This notion has received considerable attention in the popular press. Management consultant Tom Peters claims that,
10 Tom Peters,"New Products, New Markets, New Competition, New Thinking,"The Economist, 4 march, 1989
â€oein the physical world, scale economy and standardisation plays a major role. The digital world enables individual product customization†The
In particular, SMES are disadvantaged clearly by scale economies and other size related ownership-specific advantages. Similarly, they may have more difficulty obtaining inputs on favoured
Economy, 100,1126-1152 WK1 34 Gomes-Casseres, Benjamin, 1997, â€oealliance Strategies of Small Firms, †Small Business Economics, 9 (1
Jacobs, Jane, 1969, The Economy of Cities, New york: Random House Jaffe, A.,1989, â€oereal Effects of Academic Research, †American Economic Review, 79,957-970
the economies of nations (Stanworth and Gray 1993, NUTEK 2004, Wolff and Pett 2006 They are a major source of job creation (Storey et al. 1987, Castrogiovanni 1996, Clark III
creation of an entrepreneurial economy (Schumpeter 1934. Studies related to the 1 SMES are defined as firms with less than 250 employees (NUTEK 2004, p. 15
realities of the current, dispersed economy (Polenske 2002 In this thesis, I used the EU definition of SMES (NUTEK 2004) when I selected
It is important to discuss â€oesmallness†in the context of the new economy, since this
economy is influenced by the Information technology (IT) revolution. When assessing the current system, the numerical, clear-cut, artificial borders used in the past should be
In order to judge an economy, a firm performance model that considers the innovative input within SMES is required.
and even through the economy of an entire region Etzkowitz and Klofsten 2005) or a country.
•The models must account for the nature of the modern economy, as Information and Communication Technologies (ICTS) drive the organizations to adapt an open
The fourth challenge stems from the nature of the modern economy, and has to do with the kind of enterprise structure generated in company build up.
As the modern economy becomes increasingly diffused (Polenske 2002), the agility and flexibility of SMES gives them a competitive edge over larger firms
Innovation is regarded as the instrument through which entrepreneurial economies are realized (Drucker 1985. Schumpeter (1934) identified five sources of innovation:
innovativeness of an economy can be augmented through a system of specialization where larger or more mature firms acquire innovative and successful smaller firms (Lindholm 1994
Higher productivity of economies was attributed to â€oeinvestment in capital, †which is mainly related to knowledge (Schultz 1959.
and political economists of the modern era, the German writer Max Weber. The bureaucratic theory is limited actually a contribution to a much more encompassing work of analysis of the
technology generation and absorption on economies 74 We often wondered why some countries lack entrepreneurial drive
the innovation vitality of an economy from the perspective of individual firms†needs and external environments.
In that paper, we argued that economies have different levels of entrepreneurial activities depending on the availability of tangible and intangible
IBAM is an analytical tool that classifies economies based on their entrepreneurial conditions. IBAM was used to look specifically at Arab countries using a
of innovation capital must be in balance in order for an economy to be innovative and
total innovative environment of the economy The IBAM analysis produced two types of economies, one in which firms and
their founders are entrepreneurial and the other in which firms and individuals in them are less
entrepreneurial economies in that region is the â€oeadditive solution. †We felt the need to continue the arguments presented in the previous paper
Furthermore, the paper looked at basic factors shaping the economies of the Arab countries, including the negative impact of e-globalization on Arab countries
and the competitiveness of the Arab economy. The paper considered the characteristics of the Arab world economy and compared them to the characteristics necessary for an e
-globalized economy. The paper was closed with a discussion about the best strategies to achieve the â€oeadditive Balance Solution. †The recommendation was to begin a gradual
assimilation process encompassing several steps in order to create a single Arab market. The strategies presented seek to reflect a pragmatic, action-oriented sense of the possible
Thus, the analysis suggested in the paper can be used to assess any economy or group of economies
Contribution of paper 5 to the purpose of the thesis A model is needed that connects the performance of SMES in relation to the
required can help us to understand the innovation dynamics in economies as relates to the
the degree of richness of the entrepreneurial environment in an economy. However, the issue of accessibility and openness in the innovation process was reflected not in the innovation
Innovation activities in modern economies tend to be interconnected and open in their natures, and our understanding of the innovation process
Neglecting the networking nature of modern economy is a major weakness in classical performance models for SME, especially as concerns innovation issues.
economy, the high degree of fragmentation and dispersion of the economic structure, the narrow scope of economic development due to policies that focus on only a few sectors, the
Neglecting the networking nature of modern economy in relation to innovation issues is a major weakness in classical SME performance models.
required can help us to understand the innovation dynamics of economies. In that sense, using an SME performance model that incorporates innovation activities in its build up is a
performance in an economy There are wide variations in the natures of SME models. Some of the models are
capital is concerned more with societal input into the innovation activities of an economy I also addressed the issue of firm openness
entrepreneurial drive of the economy. The optimal situation is one where the four components of innovation capital are relatively abundant at the same level.
variations of innovation capital levels in an economy, I introduced the Innovation Balance Matrix (IBAM.
a performance input indicator to build models at the aggregate level of the economy Implications for SME research policies
of SMES in a given economy, and even to study several possible progressions scenarios for
economy. Presented at the 7th Uddevalla Symposium, à stfold University college Fredrikstad, Norway, 17†19 june Abrahamsson, M. and Brege, S. 1997.
Economy 88 (31), 561†577 Adizes, I. 1987. Organisations livscykler. Malmã, Liber 104 Ahmed, N. R. and Retzloff, C. D. 1995.
Regional innovation systems and knowledge economy. Industrial & Corporate Change 10 (4), 945†974 Cooley, C. H. ed.)(1956.
Economy 95 (4), 657†674 Fayol, H. 1949. General and industrial management. London, UK: Pitman (Trans.
returns in the Internet economy. Journal of Economics & Management Strategy 14 (1 141†164
versus dispersal economies. Presented in The Uddevalla Symposium 2002, Innovation Entrepreneurship, Regional Development and Public Policy in the Emerging Digital
Economy. University of Trollhã¤ttan, Uddevalla, Uddevalla, Sweden, 6†8 june, 393†411 Porter, M. E. 1980.
Economy and society: An interpretive sociology, 2 volumes. G. Roth and C. Wittich (eds..New york, New york:
Socio-Organizational Challenges of the Knowledge Economy Tà lã-universitã/Universitã du Quã bec à Montrã al
Challenges of the Knowledge Economy. She is professor and director of research at the TÃ lã-universitã of the Universitã du Quã bec.
perspective of evolutionary economists. We will reconstruct an explanation of social innovation as a cognitive process confronted with localized social resistance, thus posing
introduces this discovery into the firm, the industry, the economy, that is, strictly speaking the person responsible for its diffusion.
â€oeevolutionary†economists who completed their work by proposing a global vision of innovation. For this movement, innovation is a process (Freeman et al.
According to evolutionary economists, the innovation process occurs in an organization or a firm; thus, their vision is closer to that of Schumpeter (Dosi, 1988.
However, for the evolutionary economists these two places (SMES and large enterprises) do succeed not necessarily one another in
evolutionary economists and authors who have drawn on their work. Thus, writings by Chambon, David and Deverey (1982) on social innovation, by Flichy (1995) on technical
recalled that Polanyi defines the economy as a dynamic set of social processes which are
Knowledge Based Economy: Policy Issues for Canada and beyond. Vancouver: Centre for Japanese Research, UBC Press. 89-107
Innovation Dynamics in a Diverse Economy. Montreal and Kingston: Mcgill-Queen†s University Press and School of Policy Studies, Queen†s
Innovation can occur in any sector of the economy, including government services such as health or education.
IPR Economies rely increasingly on knowledge-based competitiveness, and innovation is increasingly non-technological in nature.
Innovation, Research and Competence in the Learning Economy), Lund University, Sweden, 2012 6 †Community Framework for State Aid for Research and development and Innovation†published in the Official Journal of the
which was allocated to Innovation and the knowledge economy. The programme supports two types of projects:
boosting their economy and productivity therefore benefiting SMES. Furthermore the RIS3 are built upon the industrial and economic fabric of each region
building of a knowledge-based economy and to achieving the Europe 2020 objectives of new growth
-based economy regions Innohubs http://www. innohubs. eu Innovation Hubs Promotion of innovation in edge cities
between traditional economy and competitive economy PERIA *http://www. peria. eu /Partnership on European Innovation Agencies
Improvement of innovation services provided by the Regional Innovation Agencies ERIK ACTION http://www. eriknetwork. net/erikaction
Economy Exchange, sharing and transfer of E -government and Wireless Broadband good practices E-government
and the Knowledge Economy) project†s objectives were to â€oeimprove regional and local Innovation & Knowledge-Economy policies through the exchange, sharing and
transfer of E-government and Wireless Broadband good practicesâ€. It identified GPS specifically addressing the inclusion of online services and management In public Administrations, with the aim of
economy A Virtual Enterprise (VE) is a temporary alliance of enterprises that come together to share skills or core competencies
SMES, Fabrica Ethica has constructed a production process that makes the regional economy more competitive and able to differentiate its production on the basis of material and immaterial
importance for the regional economy. This action promoted innovation in the wood sector at a
innovation as well as the knowledge economy in the field of health It is interesting to note that the INNOHUBS project from the INTERREG IVC programme involved
economy and competitive economy Erik Action Upgrading the innovation capacity of existing firms Improvement of the capacities to increase
industries regions to knowledge based economy Project acronym Number of partners68 Country of the LP69
economy Theme: Innovation, research and technology development TYPE OF INTERVENTION Type of intervention: Regional Initiative
5 Germany Ministry of Science and Economy Saxony-Anhalt, Magdeburg 6 United kingdom Birmingham Technology Limited
economy Theme: Innovation, research and technology development TYPE OF INTERVENTION Type of intervention: Capitalisation Project
the main industrial systems in the Tuscan economy A Virtual Enterprise (VE) is a temporary alliance of enterprises that come together to share skills or core
production process that makes the regional economy more competitive and able to differentiate its production on the basis of material and immaterial quality.
Innovation and the knowledge economy Theme: Innovation, research and technology development TYPE OF INTERVENTION Type of intervention:
Innovation and the knowledge economy Theme: Innovation, research and technology development TYPE OF INTERVENTION Type of intervention:
Innovation and the knowledge economy Theme: Innovation, research and technology development TYPE OF INTERVENTION Type of intervention:
Innovation and the knowledge economy Theme: Innovation, research and technology development TYPE OF INTERVENTION Type of intervention:
Innovation and the knowledge economy Theme: Innovation, research and technology development TYPE OF INTERVENTION Type of intervention:
•Smart Specialisation †the Concept, Knowledge Economists Policy Brief nâ°9. Knowledge f or
information economy and the challenges of an ageing population. The Organisation provides a setting where governments can compare policy experiences,
OF A TRANSITIONAL ECONOMY...113 Regional, national and international policies that have been decisive for prioritisation of domains...
A KNOWLEDGE BASED ECONOMY...118 Regional, national and international policies that have been decisive for prioritisation of domains...
one way to lead their economies out of the crisis by leveraging regional dynamism in innovation
raised concerns amongst economists and others inside and outside the EU policy circles (Pontikakis, D. et
specialisation†2. Invention of a GPT extends the frontier of invention possibilities for the whole economy
Indeed, the OECD has exhorted countries to â€oego structural†to make economies more competitive; to â€oego
of these goals by focusing on promoting structural change in the economy through investments in
innovation given the weight of agglomeration economies (OECD 2011. The smart specialisation approach responds to the need to better position regions/regional clusters in global value chains but also, for those
innovation against the background of important changes in the structure of OECD economies. These economic changes are the result of both long-term and structural trends (e g. the diffusion of ICTS, the
Smart specialisation is a industrial and innovation framework for regional economies that aims to illustrate how public policies, framework conditions,
economies †as well as emerging economies-restart economic growth by leveraging innovation led/knowledge-based investments in regions
But entrepreneurship in the knowledge economy recognises that value added is generated also outside sole ownership, in spillovers, in networks of complementarity and
in light of challenges such as demographic change and competition from emerging economies The second trend which has created a fertile ground for smart specialisation,
governments to tackle longstanding structural problems in their economies. Smart specialisation, both as an economic concept and a policy framework provides a novel avenue to pursue the dual objectives
have a high social value (development of the region†s economy), but the entrepreneur who makes this
economies Cluster policies Technology banks Public-private partnerships Innovation-oriented procurement Sectoral platforms SME support organisations
lower carbon economy was the environmental challenge of reducing CO2 emissions amidst an economic downturn The main objective of the smart specialisation strategy is to secure the environmental benefits while regenerating
in an increasingly globalised economy. Over the past two decades, globalisation has increased specialisation by creating opportunities for outsourcing and the development of global value chains.
economist David Ricardo and expanded in the 20th century by Hekscher and Ohlin also tells us that countries tend to
Moreover, changes in policy settings in countries with more rapidly changing institutions (e g. emerging economies
recognised as a relevant level of innovation policies given the weight of agglomeration economies (e g. the
governments to tackle longstanding structural problems in their economies. But restarting growth has also increased attention in countries about the need to preserve the margin for public investment in knowledge
and regional economies are increasingly interconnected. Governments may want to take the interregional and international dimension of the
economies lead the Grains Research and development Corporation to design its priorities to be compatible with other
STIE=Science, Technology, Innovation, Economy Source: ECOOM-Centre for Research & development Monitoring at Leuven University Additional limitations to data analyses arise
studies of the renewal of the Finnish economy and innovation environment. The study represents pioneering work in
National Innovation Strategy, the Ministry of Employment and Economy Corporate Strategy and Sectoral Strategies the Finnish Funding Agency for Technology and Innovation Investment Strategy (Tekes) and the Regional Innovation
The Tekes 2008 strategic focus area paper â€oepeople-Economy-Environment †Choices for building the
of change and current challenges of the Finnish economy and industries. In accordance, it presents eight national
the aim to increase the competitiveness of the Finnish economy by: i) building a strong knowledge base network;
renewing the economy and creating new businesses; iii) increasing productivity in industries and the service sector
the growing interconnectedness of economies reenforce the need for increased regional and international collaboration and for a coherent alignment of policy
economies into more competitive, job-rich and sustainable ones Linking policy instruments to priorities Smart specialisation encourages an outcome-driven approach to policies.
to create economic value for the Flemish economy; and iii) to help Flanders to obtain a strong position in
In the Flemish administration, the Department of Economy, Science and Innovation (EWI) has this responsibility.
economy is difficult to predict. Whether there are opportunities for new start-ups or technology exploitation for existing Flemish companies is too early to say as the foreseen technological breakthroughs
Economy policy and Science, Technology and Innovation (STI) policy. The topic of FISCH, sustainable chemistry, does fit Flanders†prioritisation policies very well.
example in the Whitepaper on New Industrial Policy (economy policy) and thus is a tangible intersection
between the innovation policy and the economy policy. Figure 2. 2 shows the priorities of all relevant
while Flanders†economy shows a clear specialisation in chemistry, the technological and scientific specialisation level is much lower:
Dutch economy, together with Seaport (Port of Rotterdam) and Airport (Schiphol Amsterdam. Brainport belongs to a select group of high performing high-tech clusters in Europe.
Brainport 2020, Top Economy and Smart Society is an ambitious regional vision, strategy and implementation programme for the
the Ministry of Knowledge Economy programmes because it focuses on technology development and commercialisation. Currently, Gwangju cooperates with the neighbouring provinces of Jeonnam and
General Secretary of Universities, Andalusian Ministry of Economy, Innovation, Science and Employment Definition of the ecosystem and its boundaries
Knowledge & Innovation based economy and in one of the engines of development. †This way the Plan
The automotive sector has been the pioneering sector of the Turkish economy in terms of exports and R&di capabilities.
Prepared under the coordination of the Ministry of Economy Turkey†s Export Strategy for 2023 aims
Higher education, Undersecretaries of the Ministry of Development and the Ministry of Economy, Undersecretary of Treasury, Chairman of the Turkish Atomic energy Authority, President of TÃOEBÄ°TAK and a Vice president, General
135,000 direct jobs and contributes some GBP 10 billion value-added to the United kingdom economy The United kingdom produces over one million cars annually,
the economy  OECD 2013 95 Notes 33 At the time, the department was known as the Department for Business enterprise and Regulatory Reform (BERR
Further they support the structural transformation of the Lower Austrian economy and promote the creation of a knowledge-intensive economy (European commission 2011.
Lower Austria is one of the regions not specializing on explicit lead sectors, but on functional priorities
departments and directorates for â€oeregional planning, the economy and rural development†(department economic affairs) and â€oeeducation and society†(department Research and development and Education
innovation and economy â€oepromotion agenciesâ€, owned by majority by Upper Austria, have been organized under the common roof of the newly founded Upper Austrian Innovation Holding Gmbh.
The regional economy of Upper Austria is characterized by its very strong industrial core. The strong
oriented economy. The active participation within the European union, the close cooperation with neighbouring and partner regions,
+Foray, D.,P. David and B. Hall,(2009) â€oesmart Specialisation †The Concept†Knowledge Economists
CONDITIONS OF A TRANSITION ECONOMY Pavel Csank, Petr Chlã¡dek and David Uhlã Å, South Moravian Innovation Centre, Brno and Jiå Ã Blaå ek
Republic, as well as other transitional economies in Central europe, is a FDI branch plant driven economy characterised by a relatively underdeveloped sector of knowledge-intensive business services
compared to the innovation leading economies. Key industries are dominated by multinationals†plants usually without strategic marketing, sales and R&d operations,
The economy of South Moravia is driven by firms concentrated in the regional capital (the city of Brno), a dynamic and innovative centre and the
economy within intricate global value chains. Research is global. It means that the best research
identify as many as possible narrow fields in which regional economy has significant position in the world market (e g. electron microscopes, cyber security SW.
The key lessons learned might be helpful primarily for the regions from other transitional economies
economy •The perspective and therefore ambitions must be global: As science, technology and labour
KNOWLEDGE BASED ECONOMY Marge Seppo and Urmas Varblane, University of Tartu, Estonia and Karin Jaanson, Ministry of
key technologies in other sectors of economy (particularly in traditional industry, energy sector, transport etc.)
be distinguished based on combined evaluation of structure of Estonian economy. During this evaluation the research structure and industry structure in Estonia, resources of Estonia,
of its economy. This is the result of the innovation system being focused on areas other than those that
dominate the Estonian economy today Scarcity of skilled human resources is currently and likely to remain a bottleneck for sustaining the
which is reflected directly in the small number of companies, lack of economies of scale or critical mass in many areas of research and in particular, is evident in the availability of
the overall aim to increase the competitiveness of the Finnish economy. This involved goals of building a
renewing the economy and creating new businesses; increasing productivity in industries and the service sector;
formed between the National Innovation Strategy, the Ministry of Employment and Economy Corporate Strategy and Sectoral Strategies, the Tekes †the Finnish Funding Agency for Technology and Innovation
â€oepeople-Economy-Environment †Choices for building the future†represented the main linkage between regional and national strategies.
current challenges of the Finnish economy and industries. In accordance, it presents eight national (lead
versatile studies of the renewal of the Finnish economy and innovation environment. The study at hand
Efficiency of the Economy. Dynamic Poland 2020 The first regional foresight project (The technological foresight for sustainable development of the
Under the project 10 key technologies for future development of regional economy have been defined. The ten most promising technologies in terms of the regional potential have been grouped into
and is financed from the Operational Programme Innovative Economy Coordination activities to support smart specialisation Overall coordination activities have been carried out by the regional authorities of the Maå opolska
monitors the state of Maå opolska economy; iii) Maå opolska Social policy Observatory which monitors and
The regional economy has undergone many structural changes over the last 20 years, especially from low-tech manufacturing industries to medium-tech manufacturing industries and knowledge-based
•The role of universities in supporting transformation of regional economy: The example shows that important role in transformation of regional economy has been played by regional
universities, especially in the fields such as: ICT, multimedia and life sciences. Regional universities are engaged also in many initiatives aimed at addressing the main challenges in
discovery processes in an economy that lacks high levels of innovative assets to regions/nations with
economy/RIS. Precisely, measuring of impact then takes place at regional level, programme level and
of the potential agglomeration economies at system level †as a multiplicity of imitative local government
activities in some targeted domains that offer present or future strengths for the regional economy.
and the sector structure of the economy on the other hand. Diagnosing apparent strengths, weaknesses, fits and misfits will allow policy makers
of the population and the economy, the size of its R&d and research community and the technological
country or region with its RCA€ s for a specific technology-economy node, one can compare its
reaching their intended goal of transforming economies towards more competitive, job-rich and sustainable ones?
power on national and regional economies The OECD-TIP enquiry on smart specialisation governance Goal of the governance enquiry within the TIP project
Internationalisation of economy Potential to cope with societal†Strategic autonomy Potential for additional employment Potential for higher added value
•Reorienting the economy towards a knowledge-driven economy, ensuring renewal of the productive fabric both through transformation of existing companies/sectors and through the
•Protecting the advances that the economy has in certain fields, extending those areas where the
Overall the emphasis seems to be more on building on existing strengths to transform the economy
and across that field and the economy The frequency of use and roles of advisory bodies, high-level expert groups, hearings and polls
Within the RDTI field Between RDTI and economy Advis body Strategic council Round tables Intermi
Accordingly, it is estimated in this region that more than 50%of both regional R&d and economy budgets are dedicated to the priority areas
adoption of a shared vision for the transformation of a regional economy towards a more competitive and
promising for your regional economy in the upcoming decade •What upcoming threats and challenges do you see for the regional key economic sectors (and the
regional economy as a whole) in the next decade •How internationalised is your regional economy (i e. how export-oriented are the keys sectors
what is the level of foreign direct investment) †which sectors are most open in that respect?
•Does current academic education fit to the needs of the regional economy †do regional
& creative sector interact with the regional economy (i e do you have industry-science co-operations in you region, privately endowed chairs at
â€oethe Ministry of Economy does not want to prioritise sectors. Taking into account the new strategic document, we could observe that Ministry of Economy prefers more horizontal approach and the
selection of areas of specialisation is (or will be) based on bottom-up approach. Ministry of Economy prefers to talk
about lead markets or key technologies i e. identified in the project Insight 2030, rather than economic sectorsâ€
Searching for a Smart Specialisation, Under the Conditions of a Transition Economy Regional, national and international policies that have been decisive for prioritization of domains
Estonian research and innovation strategies †the roadmap towards a knowledge based economy Regional, national and international policies that have been decisive for prioritisation of domains
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