Synopsis: Education:

Another exemple is e-education that represents an alternative to the traditional learning method, making the applicant

independant from time and space managed by specific institutions, creating the possibility to adapt the rhythm to the individual ability and need.

•Supporting education continuously as there are no social or geographical barriers •Simplifying relations among citizens, enterprises, companies

Education: Broadband communications can contribute to an increase in Romanian school†s value by implementing new teaching †learning methods (e

-learning), the possibility to interactively communicate with teachers and students all over the world or to increase the degree of specialization of employees at

companies†level by developing programs of E training and e-Coaching 8 At the same time new opportunities arise for the knowledge level of universities

by the possibility to develop and intensify university research programs by joining the efforts of researchers in different centers in Romania and intensification of

cooperation at different projects internationally (e-working), facilitating and accelerating access to new info Research-development:

information, services as tax collection, education and health etc. all of major importance for citizens. Technologies and broadband communications can improve

communications already mentioned (as e-Education, teleworking etc. the beneficial effects materialize in the increased access to the interactive content

literacy and understanding of benefits ï¿The high percentage of the population residing in the rural areas which limits

ensuring necessary preconditions for information, education and security Starting from the fundamental pillars of the strategy we developed a set of

-learning services -%of companies with their own web site -%of companies using e -Business type applications

education and security (pre -conditions -the degree of digital alphabetization of the population -%of employees with

•Education of consumers and inclusion of disadvantaged groups of users III. 3. Monitoring indicators

Internal Affairs, Ministry of Finance, Ministry of Education, Ministry of Trade and Industry, FICORA (Finnish Communications Regulatory authority), Finnish

of the Ministry of Communication and Information Society, Ministry of Education Research and Innovation, Ministery of Administration and Internal Affairs, Ministry of

•e-Education 60 •e-Tax 80 •e-Culture 40 •e-Tourism 40

Consumers education 15 Other expenditures (ex Communication, instruction, etc 35 TOTAL PROGRAM 1. 250 IV. 2 Financing means

efforts in education and training, in particular with regard to older generations and other vulnerable categories of population

development of new products and modernizing education and training sector. The aim of the emblematic initiative called"A digital agenda for Europe"within this

small and medium enterprises in training, configuring and implementing infrastructure projects and services, increasing accessibility of services, content and

applications development, consumer†s education and inclusion of disadvantaged groups of users To support the development of broadband infrastructure and services

-Government, e-Participation, e-Health, e-Education etc. to create an objective radiography of performance recorded on each sector and the appropriate course of

•Increased use of electronic public services in education •Adapting training to the needs of the economy

•Facilitating access to justice through electronic public services •Tourism potential of electronic public services •Harnessing the cultural potential,

The regional administration and higher education sectors are spending relatively more on R&d than the companies.

Higher education 0, 17 0, 18 0, 18 0, 17 TOTAL 0, 36 0, 38 0, 42 0, 36

government and higher education) has increased until 2010. However, in 2011 the number of researchers decreased Evolution of the number of researchers (Complet Working day

 diploma  in  physics  he  started  in  1976  to

 learning  process  concerning  their  options  their  interests  their

 learning  discovery  and  negotiation  process  in  which  the

 learning  process  helps  to  keep  up  with  the

 learning  process   Due  to  their  short  history

 learning  process  concerning  a  new  range  of  issues

 learning  process  by  increasing  transparency  of  the  processes

ISTEI †University of Milan-Bicocca ISSN: 1593-0319 del Castillo Jaime, Paton Jonatan, Barroeta Belen (2015) Smart Specialisation for Economic

*Full professor of Applied Economics, University of Basque Country (infyde@infyde. eu **Phd Researcher, INFYDE (jonatanpaton@infyde. eu

ISTEI †University of Milan-Bicocca ISSN: 1593-0319 31 do chosen the priorities in the RIS3 strategies represent the real territorial

ISTEI †University of Milan-Bicocca ISSN: 1593-0319 32 appropriate measures to support them (Del Castillo et al. 2013a) as well as to

ISTEI †University of Milan-Bicocca ISSN: 1593-0319 33 how to reach consensus and commitments about actions and instruments to

ISTEI †University of Milan-Bicocca ISSN: 1593-0319 34 Second, the latter statement is even more obvious

ISTEI †University of Milan-Bicocca ISSN: 1593-0319 35 3. 1. The Priority Setting in RIS3:

ISTEI †University of Milan-Bicocca ISSN: 1593-0319 36 Experience activities 99,4 98,0 119,5 114,2 115,0 94,8 81,2 94,7 93,5 96,9 108,0 96,8 101,4 117,5 85,1 94,5 87,0

ISTEI †University of Milan-Bicocca ISSN: 1593-0319 37 Figure 1: Regions in Spain by type of technological priority included in the RIS3

education/training, and internationalisation seem to be the two main axes considered repeatedly, followed by traditional S&t support and overall

ISTEI †University of Milan-Bicocca ISSN: 1593-0319 38 Figure 2: Number of regions in Spain by type of policy area included in the RIS3

ISTEI †University of Milan-Bicocca ISSN: 1593-0319 39 Source: INFYDE 2015 Finally, considering the number of instruments (financial, nonfinancial and legal

ISTEI †University of Milan-Bicocca ISSN: 1593-0319 40 Source: INFYDE 2015 Main conclusions obtained from the analysis pointed out that Spanish RIS3

ISTEI †University of Milan-Bicocca ISSN: 1593-0319 41 Even though entrepreneurial discoveries are in the core of the strategies (they

and initiate a learning process between regions in issues related to RIS3 (e g. entrepreneurial discoveries, indicators and

ISTEI †University of Milan-Bicocca ISSN: 1593-0319 42 Del Castillo, J. Paton, J. & Barroeta, B. 2013a) Territorial Governance in a smart specialisation

Economic geography Working Paper 2011, Faculty of Spatial Sciences University of Groningen OECD (2011) Regions and Innovation Policy OECD Reviews of Regional Innovation, OECD

Publishing Pontikakis, Kyriakou & Van Bavel (2009. The question of R&d Specialisation: perspectives and policy implications.

ISTEI †University of Milan-Bicocca ISSN: 1593-0319 43 Technopolis (2006) Strategic Evaluation on Innovation and the knowledge based economy in

Education, research and innovation The University of Zaragoza plays a major role in Aragon with its 35000 students (including many Erasmus students

and nearly 4000 professors and researchers http://www. unizar. es The interface between the University and research is mainly in the hands of strong â€oeuniversity

Research Institutesâ€. These institutes are particularly active in fields such as engineering http://i3a. unizar. es, IT complex systems with the support of a super computer http://bifi. unizar. es

nanosciences http://ina. unizar. es, mathematics, physics, environment and materials. The University has also set up since 1988 â€oeoficinas de transferencia de resultado de investigacion (OTRI) â€

http://www. unizar. es/otri/index. jsp aiming at fostering the cooperation between researchers and

These centres are limited not to the University, 18 OTRI are registered presently in Aragon A private University:

San Jorge was created in 2005 http://www. usj. es Main research centres and fields Research is organized in Spain both at a national and regional level.

It also plays an important role in the field of training thanks in particular to a â€oemaster in innovationâ€

It was created in 1993 with the support of the University http://fcirce. es /The â€oeaitiip Centro Tecnolã gico†also acts as technological center specialized in plastics and

this network belongs to the University. This network is particularly active in Brussels, it contributes

University System Support & promotion structures Parks & scientific & technological poles ENTERPRISE SISTEMA DE INNOVACIÃ N DE ARAGÃ N

tradition, high level of education innovative Zaragoza †But also strong territorial unbalances lack of critical mass in many sectors

†Including research, innovation and education †More attention to be paid to incubators and support to new

partners, research, innovation, education Aragon on the S3 platform Sevilla Meeting S3 platform Core working

Education and Training KETS (Key Enabling Technologies ICT Smart Cities and Territories Digital Growth Priorities

A a clear improvement in population with terciary education (from 0, 68 to 0, 75) and in public R+D

participated by representative members of the Public Administration, the University and the civil society. In the future the possible participation of agents of the

information provided by the University, IDATE can identify the existing start-ups from different sectors and institutions.

ï The University has identified consistent contracts with 374 companies as partners of the University. Those companies must be considered as agents in the strategic process

ï There is no evidence yet that the document outline measures to stimulate private R&d&i investments, for instance through public-private partnerships.

education, employment and rural development policies ï There is no evidence that the strategy includes a clear reflection/proposal on how to exploit

process of policy learning and adaptation? How is it to be communicated Expert Assessment of RIS3 strategy for the region of Asturias, Spain †Miquel Barcelã 17

process of continous policy learning and adaptation ï The communication process to stakeholders and the general public, the mechanisms for

to identify some â€oehidden†innovative companies or agents from sources like the University or other agents

j) The University has identified consistent contracts with 374 companies as partners of the University, it has to try to increase its involvement with the private sector specialy in the

priority sectors. RIS3 Strategy can be a great opportunity k) Try to stimulate private R&d&i investments, for instance through public-private partnerships

process of continous policy learning and adaptation q) The communication process to stakeholders and the general public, the mechanisms for

7, 73%Education ï¿7, 57%Transport and comunications ï¿6, 44%Health services ï¿

University of Cantabria, with high research activity ï¿Significant increase in the number of researchers

University ï¿Tecnology Centers ï¿Trade unions What have done we already ï¿We Have identified 18 debate groups

Healy from Cardiff†s University) to supervise the process What debate groups 18 PRODUCTIVES GROUPS HAVE BEEN IDENTIFIED

Soft Management of Internet and Learning Materiales Magnã ticos (GMM Aceite de Oliva y grasas (GAO-UCLM

education science, business, and the regional and national administration ï 8 Universities: 4 of them are public (Burgos, Leã n,

Salamanca and Valladolid) and the other 4 are private Catholic University of à vila, Pontifical University of Salamanca,

IE University in Segovia and European University â€oemiguel de Cervantes†ï 5 Institutes from CSIC (Spanish Research Council) and 10 Associated Units, some of them operating in

collaboration with Universities RIS3 in Castilla y Leã n: Background document 4 ï 2 National Research Centres (Singular Scientific Infrastructures:

The NRC on Human Evolution (CENIEH linked to the Atapuerca archaeological site, and the Centre for Ultrashort Ultraintense Pulsed Lasers

CLPU) in Salamanca ï Laboratories and public and private Technology Centres with scientific capabilities ï Enterprises with R&d and Innovation departments and activities.

T-CUE Network of university interface structures, COCI (Council of the Chambers of Commerce and Industry), etc

Science Parks in the Public Universities (Burgos, Leã n, Salamanca and Valladolid Business Innovation Centres (BIC) of Burgos, Leã n and Valladolid;

Agency of Castilla y Leã n), the Universities Foundation of Castilla y Leã n, the Directorate General of

Universities and Research, the Directorate General of Planning and Innovation (Management of Health Services), and the Agro-Food Technology Institute

which the contribution the higher education sector was the most significant contribution 2001 2011 Enterprises 53,3%Government

Education 39,5%Private Non Profit 0, 4 %Enterprises 54,4%Government 9, 9 %Higher Education 35,6

%Private Non Profit 0, 1 %Figure 4. R&d expenditure by sectors Source: INE Companies Of high and Medium-High technology sectors (†HAMHIT€),

universities, research centers and Government •Future vision that makes use of strenghts, competitive advantages and potential

businesses, business associations, universities, research centers, technology transfer instruments and society in general through the Castilla y Leã n Regional Government

•Universities and research centres •Knowledge Transfer Offices •Advanced Materials •Biotechnology •Advanced

higher levels of education than the national average (38.6 %The region†s progress in exports has been positive,

All these efforts have led to a system in which businesses, universities, research centers, and knowledge transfer centers have generated gradual convergence with the

With regard to the level of ICT penetration in education, 100%of the region†s primary and secondary education public schools had Internet access, with very high broadband

connection percentages, a much higher figure than the national average. Concerning the ratio of students per computer, this figure has been decreasing in Castilla y Leã n as well

as at the national level, in both primary and secondary education Regarding the level of ICT penetration in health care, the integration of the clinical

history in primary services has been carried out with specialized attention in six out of the eleven health-care areas in Castilla y Leã n, with access to Electronic Medical records

University-Company relationship persists and positions of the regional universities have fallen behind national university rankings

•The entrepreneurial fabric†s technological level and capacity for absorption of knowledge is limited Reduced scale of companies with

management training requirements •Insufficient preparation of university graduates in the skills and abilities that companies require.

Decapitalization of human resources in research entities and talent and brain drain •Decreased globalization of innovation

and minimal participation in international funding sources THREATS •Prolonged effects of the financial crisis and difficulty in entering financial

markets •Limitations of companies to funding especially newly created SMES and innovative companies •Decline in private investment, decrease

region†s university and vocational training systems •The region†s ICT sector has specialisation capacities in the fields of mobility and

in the field of education OPPORTUNITIES Territory •Importance of ICT in the objectives and

for information and training •Great potential for the Spanish e-ID in providing public and private digital

•Lack of adaptation of regulated training University, Vocational training) for the ICT market •Difficulty in globalization of the regional

ICT sector Citizens •Aged population with less training and knowledge of use of ICT tools.

High percentage of the population that shows a lack of interest in ICT among people who

•Hesitation in using ICT in the classroom by a certain percent of teachers and difficulty

in extending digital public services in the field of health care due to region-wide dispersion THREATS Territory

1. 3 Improve training for innovation in sectors that can lead the change in the new

and increasing value of knowledge and connection between higher education and innovation as the base of human capital in a smart specialisation scenario

4. 4 Increase the convergence between higher education and innovation PROGRAMME 5. INNOVATIVE SOCIETY Programme 5 takes into consideration the importance of extending the innovative and

phases of education as well as by promoting an increase of interest and awareness in citizens due to the results of research.

skills in students and teachers in all education stages 5. 2 Bring society closer to scientific and technological achievements

 learning  about  some  new  S3  aspects  such  as

2003 Universities Law (modified in 2010 2007-2013 Regional R&d&i Strategy 2007-2013 2007 Commissioner for Science and Technology

2008-2013 University-Business Strategy 2008-2013 2010-2013 II Framework Agreement for Industrial Competitiveness and Innovation

 University- †Business  Strategy  TCUE  program  the  support

•†Universities  and  research  centres  •†Technology  centres

•†Universities •†Knowledge transfer entities •†Companies SWOT R&d&i SWOT Digital

 education  level  •†Business  expenditure  on  R&d  bigger

 university- †business  relationship  University  graduates  not  adapted

 to  companies† needs  •†Universities  are  low  in

 national  (and  international  rankings  •†Small  size  of

 companies  and  low  technology  level  and  absorption  capacity

 graduates  from  University  and  vocational  training  •†ICT

 sector  specialized  in  mobility  and  security  Building the evidence base for RIS3 (II

SWOT Analysis Knowledge Digital Society 15 Weaknesses  •†Large  region  with

 training  and  knowledge  of  use  of  ICT  tools

 education  health  social  care† •†New  models  of

 learning  activities  •†Interreg  IV  C  Know- †Hub

 universities  research  &  technology  centres  public  administration  trade

 Education- †Innovation  Competitive  economic  model  •†New

•†Training  for  innovation  •†Access  to  Ainance

These sample construction rules provided the master list that was employed to collect the data that we used in this study.

University and Research (MIUR. Elena Novelli also gratefully acknowledges the ï nancial support of the Economic and Social

Inventor moral hazard in university licensing: the role of contracts. Res. Policy 40 (1), 94†104

University of Chicago Press Chicago Griliches, Z.,1990. Patent statistics as economic indicators: a survey.

University of Munich and CEPR (London), University of Munich, and OECD Hasan, I.,Kobeissi, N.,Wang, H.,2011.

The effect of technology on learning during the acquisition and development of competencies in technology-intensive small

Selling university technology: patterns from MIT. Manag. Sci. 48 1), 122†138 Shefer, D.,Frenkel, A.,2005.

University vs. corporate patents: a window on the basicness of invention. Econ. Innov. New Technol. 5 (1), 19†50

patent ï ling motives of individual inventors, small companies and universities Technovation 32, 513†522

The learning curve. Historical review and comprehensive survey Decis. Sci. 10, 302†328 Young, A.,1928.

products in your own documents, presentations, blogs, websites and teaching materials, provided that suitable acknowledgment of OECD as source

Chapter 3 on university-industry knowledge transfers SMES, ENTREPRENEURSHIP AND INNOVATION Â OECD 2010 3

competitors, universities, research organisations and others. Their networks help them overcome some of the obstacles to innovation linked to their small size.

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

But entrepreneurship education is confined not to the classroom or formal structures for learning. Employees also acquire entrepreneurship skills

through interactions with their co-workers, suppliers, clients and consultants on projects such as those to improve quality control methods or products.

Professor Franco Malerba, Director of KITES (Centre on Knowledge, Internationalisation and Technology Studies), University of Bocconi, Italy

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

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

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

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

Economic and social Research and training centre on Innovation and Technology Netherlands Karen Wilson, Senior Fellow at Kauffman Foundation and Director GV Partners, France

Assistance in developing the Country Notes was provided by the following experts Petr Adamek, Bergman Group, Czech republic

Rudy Aernoudt, Ghent University and Brussels University, Belgium Erma Aminullah, Indonesian Institute of Science, Indonesia

Spyros Arvantis, Federal Institute of technology (KOF-ETHZ), Switzerland Kristoffer Astrup, Danish Enterprise and Construction Authority, Denmark

Maja Bucar, University of Ljubljana, Slovenia Giorgio Calcagnini, University of Urbino, Italy SMES, ENTREPRENEURSHIP AND INNOVATION Â OECD 2010 7

Aruna Deo, University of Western Sydney, Australia Jo Doyle, Ministry of Economic Development, New zealand Michael Eilan, Israel Business Information Services Consulting, Israel

Sirin Elci, Technopolis, Turkey Ilario Favaretto, University of Urbino, Italy ACKNOWLEDGEMENTS Yacov Fisher, Israel Business Information Services Consulting, Israel

Claudia Gonzalez Brambila, Mexican Autonomous Institute of technology, Mexico Ebbe Graversen, University of Aarhus, Denmark Heike Grimm, University of Erfurt, Germany

Berglind Hallgrã msdã ttir, Innovation Centre Iceland, Iceland Jain Alain Heraud, University of Strasbourg, France

Can Huang, UNU-MERIT, Maastricht University, Netherlands Ron Immink, Bookbuzz and Driveforgrowth, Ireland Jurgen Janger, Austria National bank, Austria

Jari Kuusisto, Lappeenranta University of Technology, Finland Leonardo Latelier, University of Chile, Chile Asa Lindholm Dahlstrand, University of Chalmers, Sweden

Katrin Mannik, Technopolis, Estonia Jaan Masso, Tartu University, Estonia Jay Mitra, University of Essex, United kingdom

Alexey Prazdnichnykh, Bauman Innovation, Russia Alisdair Reid, Technopolis, Belgium Stephen Roper, University of Warwick, United kingdom

Juan carlos Scapini, Central University of Chile, Chile Vitor Simã es, Technical University of Lisbon Portugal

Karen Siune, University of Aarhus, Denmark Olav Spilling, NIFUSTEP †Research Institute for Innovation, Research and Education

Norway David Storey, University of Warwick, United kingdom Joonghae Suh, Korean Development Institute, Korea Annamã¡ria Szukics, Ministry for National Development and the Economy, Hungary

Lena Tsipouri, University of Athens, Greece Arnold Verbeek, Ideaconsult, Belgium Charles Wessner, National Academy of Science, Technology, Entrepreneurship and

Innovation, USA David Wolfe, University of Toronto, Canada Lee Woolgar, National Graduate Institute for Policy Studies, Japan

Martin Wà rter, Swiss Economic Institute †Federal Institute of technology (KOF-ETHZ Useful comments and contributions were received from Emma Clarence, Chiara

Criscuolo, Andrea Hofer, Kiira Karkkainen, and Stephan Vincent-Lancrin of the OECD Secretariat. Jorge Gá

lvez MÃ ndez and Michela Meghnagi (OECD Secretariat) provided research assistance for the publication A number of the ideas and part of the evidence presented in the book were refined at

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

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

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

Prof. Enzo Rullani, Venice International University, Italy; Prof. Andrea Piccaluga, Scuola Superiore Sant†Anna, Pisa, Italy and

Prof. Riccardo Pietrabissa, Milan Polytechnic, Italy; Dr. Thomas Cooney, Dublin Institute of Technology, Ireland; Prof.

Allan Gibb, University of Durham, United kingdom; Geoff Mulgan and Julie Caulier-Grice, The Young Foundation, United kingdom;

Luca de Biase, Il Sole 24 Ore, Italy. Helpful comments were received also from Prof. Bjorn Asheim

University of Lund, Sweden, and Prof. Helen Lawton-Smith, Birkbeck, University of London, United kingdom The analysis and recommendations presented in this publication have been reviewed

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

â The need for education and training systems to change so as to better foster the growth of entrepreneurial human capital

otherwise remain un-commercialised in large firms, universities and research organisations. Small firms on average do not appear to be more innovative after

programme â€oeaplusb†(Academia plus Business) financially supports centres at universities to foster academic spin-offs. In The netherlands the Technopartner programme provides a

-based start-ups (â€oetechnostartersâ€) in and around universities. These programmes can provide inspiration for policy development in other countries

and with universities and research organisations Collaboration is an important element in the strategies of innovative SMES to overcome

basic university research and highly-skilled workers are most important. This is associated with important local knowledge spillovers in these sectors.

Higher education institutions are increasingly providing entrepreneurship education. This works best when entrepreneurship support is embedded within teaching,

entrepreneurship is seen as a strategic objective and ambition of the institutions, clear incentives and rewards are applied for academic staff

also increasingly provided in vocational education and training and schools. For example apprenticeship programmes are good vehicles for developing entrepreneurship skills, but

potentially reflecting inappropriate training supply. Shifts are also occurring in school curriculums aimed at fostering in students the ability and desire to act entrepreneurially

As well as gaps in external provision of entrepreneurship training, in-house training of employees by SMES is much less common than for large firms.

Despite the general importance of vocational education and training (VET) to skills development in firms enterprises with less than 50 employees provide significantly less employee training than larger

firms. This is even true for countries known for their strong training cultures, such as Denmark, The netherlands, Norway and Sweden.

There is also a systematic access gap younger, better-educated workers in highly-skilled occupations such as managers

professionals and technicians have greater access to training opportunities than less educated â€oeroutine†(i e. involved in routine tasks) and older workers.

engagement with KISAS is recognised not part of public SME training support programmes There is much to be gained from a policy approach

together public and private training providers (colleges, universities, etc. employers industry representatives, unions, labour market and training intermediaries (temporary

work agencies and group training companies), local and regional government agencies and community representatives, in order to develop skill strategies

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

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

charities such as the Silai for Skills women†s training and employment initiative in Bristol United kingdom

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

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

Programmes should also be developed to promote corporate and university spin -offs with initiatives for proof-of-concept (i e. testing the technical and commercial viability

â Promote partnerships within innovation systems that involve large and small firms, universities and research institutes,

of university research), and intelligence functions aimed at anticipating future needs and opportunities and acting on them through the partnership

Involve SMES in interactive learning networks, for example through cluster programmes and programmes to encourage informal

Encourage local universities and research institutes to be involved actively in a â€oethird mission†of helping develop the locality in which

such as through university-industry staff exchange programmes â Use the concept of â€oerelated variety†to guide policy.

and joint technology development and training initiatives involving foreign affiliates and local SMES â In the spirit of â€oebrain circulationâ€, policy should seek to attract talented labour from

of students and researchers into higher education institutions; promoting co -operation between industry and universities in training

and hosting researchers; and making diaspora populations aware of local job vacancies Learning processes are at the core of entrepreneurship and SME innovation.

Yet many emerging and potential business creators are lacking entrepreneurship skills such as in risk assessment, strategic thinking, networking, and motivating.

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

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

changing the nature of vocational education and training to better fit the needs and motivations of entrepreneurs, offering short duration â€oeinnovation Bootcamps†for SME

owner-managers such as weekend seminars and short online courses, and increasing the flexibility of vocational education and training for SME workforces

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

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

programmes, such as for business succession, management and training and business counselling â Increase the use of informal learning sources, by facilitating collaborations with firms and

consultants providing knowledge-intensive service activities (KISA), for example using â€oeinnovation vouchers†for SMES â Strengthen local skills ecosystems.

Promote greater participation of SMES in local training programmes through the engagement of employers, unions and individuals.

Create integrated training strategies combining training located in higher education, vocational education and training, and formal and informal training in SMES

Finally, the importance of meeting social needs and promoting sustainable development should not be underestimated in innovation policy.

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

â Improve financial, fiscal, legal and regulatory environments. Build environments that enable social enterprises to meet their economic and social goals.

Facilitate the development of a social investment marketplace, for example with fiscal incentives to attract investors

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

space to experiment, support learning across a community of innovators and establish clear pathways for scaling up the most promising models

and interactive learning. Ensuring they reach their full potential requires a new innovation policy approach that facilitates

such as education, innovation and social policy who could better realise their goals by adopting strategies that are more aware of and sensitive to the needs and opportunities of

innovations, participating in interactive learning processes and working in different modes of innovation. The major policy implications are pulled then out.

universities, research organisations, customer, supplier and competitor firms and consumers, with costs and roles shared,

generates an aggregate learning curve effect that increases the productivity of new knowledge investments. This is what is seen now generally by economists to be the major

in large firms and universities, but the capacity of entrepreneurs to commercialise this type of invention through spin-off enterprises and knowledge transfers is critical.

knowledge transfer networks with universities, large firms and other players Not all firms and sectors are involved heavily in open innovation and some activities

universities and other firms or business angels, from labour mobility among firms and organisations and from informal social capital contacts.

collaborate internationally with other SMES, multinationals, universities and research organisations, requiring both innovation competencies and international connections

â€oelow-technology sectors†such as construction, retail banking, and education. It is seen, for instance, to include the development of new drilling techniques in oil production, back

and inputs to ideas generation that are exploited by large firms, universities/research organisations and other small firms

otherwise remain un-commercialised in large corporations, universities and research organisations. This type of knowledge spillover process is at the heart of the logic of

Knowledge built up in universities, large firms and research organisations does not spill over automatically, however.

This largely occurs as individuals leave universities, research organisations and large corporations to start enterprises based on knowledge they developed there in the

patent and licensing routes and the publishing and teaching activities of universities. In the USA, for example, the Bayh-Dole Act of 1980 increased incentives to universities to

invest in the commercial exploitation of their knowledge by giving them control of the intellectual property arising from the federal government funded research they undertake

In Canada, the University of British columbia has a venture fund, the University of Guelph has raised money for commercialisation by listing its intellectual property portfolio on the

which seems to have one of the highest rates of university spin-offs only two spin-offs were created per research institution per year.

Neither are university spin -SMES, ENTREPRENEURSHIP AND INNOVATION Â OECD 201034 1. INTRODUCTION offs high-growth firms on average,

University of Wisconsin, Madison, in the USA, and the University of Waterloo in Canada are

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

spin-offs from universities. They also appear to be increasing in frequency over time and tend

stimulating knowledge transfers from universities and other sources to a broader group of firms. There is cross-country empirical evidence from 20 OECD countries of a link, with

Interactive learning One of the major developments in innovation in recent years is the increasing importance of networks.

This is interactive learning SMES and start-ups are important participants in interactive learning networks †both

exploiting knowledge developed elsewhere and contributing to knowledge development Their role is documented by a substantial literature on SMES and inter-firm and university

-industry linkages (e g. Branscomb et al. 1999; Etzkowitz and Leydesdorff, 2000; Freel, 2003 Mansfield, 1995; Potter, 2008;

interactions among sets of organisations including firms, universities, venture capitalists and public agencies mediated by institutions that set the rules of the game, such as

universities and firms. Within any innovation system, a close articulation is needed SMES, ENTREPRENEURSHIP AND INNOVATION Â OECD 201036

between what is known as the knowledge exploration subsystem, in which universities and research organisations are the central players,

potential policy problems or system failures affecting interactive learning (Potter, 2005. For example, they may include lack of infrastructure for knowledge generation and transfer

e g. universities and science parks; lack of adaptability of firms, individuals, institutions and policies to change (e g. to move into new technologies

knowledge exploration and exploitation sub-systems (e g. lack of fit between university research and teaching specialisms and the specialisms of firms

essentially a â€oescience-push†approach in which R&d in universities and large firms is critical and exploitation through knowledge-based spin-offs and high-technology

collaborations between firms and universities and research institutes has an important role to play. The result is innovation that in principle could be applied in other firms and

-based know-how and informal processes of adaptive learning. Learning by doing, using and interacting occurs on the job as employees face ongoing changes that confront them

that could be focused on encouraging basic research in universities and R&d spending in large firms, innovation policy in the entrepreneurial economy must expand to include new

universities and research organisations are not the most effective way to generate innovation in an environment where knowledge flows globally, where collaborations

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

innovative, often exploiting new science developed in universities and research laboratories. They make up an important component of the high-employment-growth

affecting learning and innovation, to accompany more traditional STI support Embedding SMES in knowledge exchange networks and increasing workforce skills to

universities and industry, and facilitating knowledge exploitation through licenses patents and university and corporate spin-offs,

and shared foresight and strategy development activities (OECD, 2004; OECD, 2009; OECD, 2008 â Workforce skills in SMES.

better access to formal training, but also through informal methods such as the creation of problem-solving work teams and engagement with external knowledge intensive

It implies the need for a change in curriculums, pedagogies, structures and strategies in education and training systems to better import these skills (Potter, 2008

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

imparted through school education, universities and vocational training colleges. Training in SMES is also very dependent on relationships with the public sector because while large

firms have in-house training mechanisms SMES generally do not. Thus while SME skills may be imparted by in-house training

and other skills-upgrading activities, small enterprises tend to do less than large firms and there is a particular SME skills gap among

University of Cambridge ESRC Centre for Business Research, Working Paper 75, ESRC Centre for Business Research, Cambridge

University Press, Oxford Audretsch D. and R. Thurik (2001), â€oelinking Entrepreneurship to Growthâ€, OECD Science, Technology and

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

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

New Evidence from Micro Data, Ch. 1, pp. 15-82, University of Chicago Press, Chicago

University-Industry Linkages in Japan and the United states, MIT Press, Cambridge, MA Callan, B. 2001), â€oegenerating Spin-offs:

Harvard Business school Press, Boston, Massachusetts Chiarvesio, M.,E. Di Maria and S. Micelli (2010), â€oeglobal Value Chains and Open Networks:

Entrepreneurshipâ€, Jena Economic Research Papers 2008-19, Friedrich Schiller University and the Max Planck Institute of Economics, Jena

†â€oemode 2†to a Triple Helix of University-Industry-Government Relation, Research Policy, Vol. 29

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

Knight, F. 1921), Risk, Uncertainty and Profit, Chicago University Press, Chicago Jensen, M.,B. Johnson, E. Lorenz and B. Lundvall (2007), â€oeforms of Knowledge and Modes of

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

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

Mansfield, E. 1995), â€oeacademic Research Underlying Industrial Innovations: Sources, Characteristics and Financingâ€, The Review of Economics and Statistics, Vol. 77, No. 1, pp. 55-65

Mcnaughton, R. 2008), â€oetechnology Commercialisation and Universities in Canadaâ€, in J. Potter (ed Entrepreneurship and Higher education, Ch. 11, pp. 255-234-269, OECD, Paris

NESTA (2009), The Vital 6 Per cent. How High-Growth Innovative Businesses Generate Prosperity and Jobs

OECD (2010a forthcoming), Leveraging Training and Skills Development in SMES, OECD, Paris OECD (2010b forthcoming), High-Growth Enterprises:

Potter, J. ed.)(2008), Entrepreneurship and Higher education, OECD, Paris Potter, J. and G. Miranda (eds.

An International Comparison, Ann arbor, University of Michigan Press, pp. 24-38 Schumpeter, J. 1934), The Theory of Economic Development:

Shane, S. 2004), Academic entrepreneurship. University Spinoffs and Wealth Creation, Edward Elgar Cheltenham, UK Stangler, D. and R. Litan (2009), â€oewhere Will the Jobs Come From?

â€, Kauffman Foundation Research Series: Firm Formation and Economic growth Paper No. 1, Ewing Marion Kauffman Foundation

University Press, Cambridge, pp. 219-249 Williamson, O. 1975), Markets and Hierarchies: Analysis and Antitrust Implications, Free Press, New york

placement of university researchers within SMES under the â€oeresearchers in Business†initiative. Finally Enterprise Connect also runs both the Workshops,

universities to foster academic spin-offs. The objective is to increase the number of innovative start-ups

creation among university students and scientists; start-up coaching for 1. 5 years; facilitating access to external experts;

liability companies that must be owned partly by the corresponding university; other companies and venture capital funds can be co-owners.

confirm good performance, even in international comparisons with university incubators. The programme is administered by the agency FFG (Austrian Research Promotion Agency

%Universities or HEI Suppliers Clients or customers Competitors Firms within the group Small Medium Large

Small Medium Large Consultants commercial labs or private institutes Government or public research institutes 0

%Universities or HEI Suppliers Clients or customers Competitors Firms within the group Government or public research

250 industrial technology advisors located in universities, community colleges and other technology transfer organisations across the country. Each year, qualified SMES from all industrial sectors access a

energy efficiency, support to the establishment of training centres, marketing efforts, property development and consulting and assistance services.

a training/retraining subsidy attained EUR 28.4 million at the end of 2009 SMES, ENTREPRENEURSHIP AND INNOVATION Â OECD 201056

Universities or HEI Suppliers Clients or customers Competitors Firms within the group Small Medium Large

Small Medium Large Consultants commercial labs or private institutes Government or public research institutes 0

2006, contains 350 specific initiatives that introduce reforms in key areas such as education and training

%Universities or HEI Suppliers Clients or customers Competitors Firms within the group Small Medium Large

Small Medium Large Consultants commercial labs or private institutes Government or public research institutes 0

Universities or HEI Suppliers Clients or customers Competitors Firms within the group Small Medium Large

Small Medium Large Consultants commercial labs or private institutes Government or public research institutes 0

researchers and Phd students and counselling in intellectual property. In the nineties ANVAR opened regional delegations,

the Ministry of Higher education and Research, has the responsibility of providing assistance and financial support to SMES in crucial stages of their development:

related fields such as training and ICT infrastructure can also be financed Seventy-one poles have been selected and over 300 projects have been supported.

Universities or HEI Suppliers Clients or customers Competitors Firms within the group Small Medium Large

Small Medium Large Consultants commercial labs or private institutes Government or public research institutes 0

designed to improve the entrepreneurial environment at universities and research institutes and to increase the number of technology and knowledge-based company formations.

entrepreneurship among university employees and students. Projects at universities and non-university research institutes can apply for financial support in the form of a non-repayable grant over a three-year

period. In all three application rounds, 120 applications were submitted, of which 48 projects at 64 higher

education institutions were approved. The total amount of grants in the year 2008 was over EUR 39.8 million

projects at universities and research establishments. It helps scientists, university graduates and students to develop their business ideas into business plans

and to advance their ideas for products and services. The entrepreneurs receive a subsistence grant from EUR 800 to EUR 2 500 per month for a maximum period of

%Universities or HEI Suppliers Clients or customers Competitors Firms within the group Small Medium Large

Small Medium Large Consultants commercial labs or private institutes Government or public research institutes 0

research-based technology parks and business incubators), Poles of Innovation (industry-university co -operative research), PRAXE (research spin-offs) and the Zone of Innovation framework programme.

whole, these programmes have provided incentives to both university and the private sector to work together, whilst cushioning the financial risk for people willing to invest in technology-based start-ups

which also include universities. SMES have to identify a problem that requires know-how or expertise supplied by the innovation agent.

%Universities or HEI Suppliers Clients or customers Competitors Firms within the group Small Medium Large

Small Medium Large Consultants commercial labs or private institutes Government or public research institutes 0

universities and research institutes. It also promotes the establishment of up-to-date research infrastructure and patent right procedures in certain high-priority areas.

%Universities or HEI Suppliers Clients or customers Competitors Firms within the group Small Medium Large

Medium Large Small Consultants commercial labs or private institutes Government or public research institutes 0

%Universities or HEI Suppliers Clients or customers Competitors Firms within the group Small Medium Large

Small Consultants commercial labs or private institutes Government or public research institutes 0 0. 5

The strategy takes a holistic approach and combines education in science and engineering; social and

education sector into an integrated framework, in order to develop a world-class research and development capacity in Ireland

improve the knowledge flow between higher education and the enterprise sector. The aim is to ensure

to collaborate with any of the 22 higher education institutes, to obtain an innovation solution to an

education institutes, and ultimately the development of new products and services. A total of EUR 10 million is available for the scheme.

%Universities or HEI Suppliers Clients or customers Competitors Firms within the group Small Medium Large

Small Medium Large Consultants commercial labs or private institutes Government or public research institutes 0

The projects will favour partnerships and synergies among universities, research centres, private companies, private investment equity, and local governments.

universities, public and private research units, and final users such as public entities, associations and so on (the latter participating on voluntary basis,

%Universities or HEI Suppliers Clients or customers Competitors Firms within the group Small Medium Large

Small Medium Large Consultants commercial labs or private institutes Government or public research institutes 0

Most network initiatives focus on interaction between universities and industry, or between different firms with similar competences;

aims to encourage spin-offs from universities and research institutes. In 2007, this programme was able to

%Universities or HEI Suppliers Clients or customers Competitors Firms within the group Small Medium Large

Small Medium Large Consultants commercial labs or private institutes Government or public research institutes 0

Technology Packages, to support higher education institutions and public research centres in the integration of technology packages that are feasible to license or commercialise;

the creation of such offices in higher education institutions and public research centres; Business schools to advance the entrepreneurship culture of the country through formal education;

Strategic Alliances and Innovation Networks for Competitiveness, to support the collaboration of industry and academia for

innovative projects; and the Seed Capital Fund, which supports the incubation of science and technology

inside and outside universities. It is a generic and flexible programme, designed with the intention of

universities, incubators, innovation intermediaries, banks, companies and other actors The Technopartner programme includes several action lines:

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

%Universities or HEI Suppliers Clients or customers Competitors Firms within the group Small Medium Large

Small Medium Large Consultants commercial labs or private institutes Government or public research institutes 0

and hosting master†s degree and Phd students. A portion of the fund is administered by a network of regional partners

and for research scholarships enabling researchers to focus on commercialisation projects. In addition, FORNY has offered bonuses for successful

The main target group of the programme is researchers working in universities, university colleges research institutes and university hospitals.

However, rather than addressing the researchers directly, the main approach of the programme is to work through the local technology transfer offices.

%Universities or HEI Suppliers Clients or customers Competitors Firms within the group Small Medium Large

Small Medium Large Consultants commercial labs or private institutes Government or public research institutes 0

Its main purposes are to strengthen the fight against IPR infringement by training staff in

ingredient is the engagement of the Polish Patent office in direct training activities. While the programme

these training activities have also been targeted at a wider audience including SME representatives, patent attorneys, researchers and inventors.

%Universities or HEI Suppliers Clients or customers Competitors Firms within the group Small Medium Large

Small Medium Large Consultants commercial labs or private institutes Government or public research institutes 0

The demand side includes universities, incubators, development agencies and other regional partners, while the supply side comprises venture capital companies.

institutions (namely R&td, higher education and vocational training institutions) who are involved in the development of the sector and region

%Universities or HEI Suppliers Clients or customers Competitors Firms within the group Small Medium Large

Small Medium Large Consultants commercial labs or private institutes Government or public research institutes 0

%Universities or HEI Suppliers Clients or customers Competitors Firms within the group Small Medium Large

Small Medium Large Consultants commercial labs or private institutes Government or public research institutes 0

%Universities or HEI Suppliers Clients or customers Competitors Firms within the group Small Medium Large

Small Medium Large Consultants commercial labs or private institutes Government or public research institutes 0

actors such as higher education institutions. For research projects the SME is supposed to contribute an equal sum itself.

collaboration with higher education institutes and research institutes); new employees have been recruited in 76%of the projects (of these,

%Universities or HEI Suppliers Clients or customers Competitors Firms within the group Large Medium Small

Small Medium Large Consultants commercial labs or private institutes Government or public research institutes 0

Venturelab provides customised education tools to promote innovative young entrepreneurs and to inspire students for entrepreneurship.

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

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

The initiative focuses on the best projects, accompanying them with professional consulting that pays more attention to practice than to theoretical concepts.

five years more than 10 200 students and start-up firms attended Venturelab courses (2 600 in 2008.

per cent of the participants attended courses on Venture Training, 11%participated in the Venture Plan

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

It has been run together with universities since 1998. During a 66-hour course, students are assisted with developing their business ideas and business plans

Financial support is provided to programme participants under the New Entrepreneur Support once they complete their business plans successfully

and decide to create their start-ups. Start-up costs are financed up to EUR 2 000. Fixed investment costs are financed also through grants and soft loans.

universities and industrial chambers. As of 2009, there are 20 TEKMERS and 14 DTIS throughout the

improving university-industry co-operation. Approximately 37%of the tenants of KOSGEB TEKMERS are new companies.

University (METU) in Ankara are new companies and 69%of these companies are university spin-offs

This TEKMER hosted 161 enterprises between 1992 and 2009, and its success rate has been 82

and R&d capacity of Turkish Industry, strengthen university -industry collaboration, commercialise academic knowledge, and develop the R&d and technological

519 project proposals from 65 universities SMES, ENTREPRENEURSHIP AND INNOVATION Â OECD 2010102 2. TURKEY

%Universities or HEI Suppliers Clients or customers Competitors Firms within the group Small Medium Large

Small Medium Large Consultants commercial labs or private institutes Government or public research institutes 0

but found that all expenditure on training had been omitted from the initial estimate Recent years have seen significant shifts in both the orientation and organisation of SME and

which for the first time brought responsibility for UK universities and economic development into the same department. At a more operational level both enterprise and innovation policy

Regional Development Agencies, is steadily being amalgamated with public support for training to provide a single combined service.

range of measures to support increased commercialisation of university research. The measures include the longstanding Knowledge Transfer Programme,

which places recent graduates with a business for two years as part of a university-industry collaborative R&d programme.

Evaluation evidence over many years stresses the value of this programme to firms SMES, ENTREPRENEURSHIP AND INNOVATION Â OECD 2010104

%Universities or HEI Firms within the group Suppliers Clients or customers Competitors Small Medium Large

NIST) was established in 2007 to assist U s. businesses and institutions of higher education †or other

Under the Technology Innovation Programme, universities now can lead a joint venture when teamed up with at least one small or medium-sized for-profit company,

Universities may also participate as a contractor within any TIP award. Funding is available for single company projects of up to USD 3 million over a

partnership between universities or technological institutes and enterprises; technology-based entrepreneurship; incubators and technological parks;

innovation and training; and support to indebted entrepreneurs. The total resources committed for the period 2007-2010 amounts to USD 620 million

supports universities and research centres in developing pro-innovation research at an early stage. It

organisations and development of professional training centres. Finally, Innova Chile sponsors the diffusion and transfer of technology.

The programme favours training in innovation in the context of regional development plans, provides consultancy services to micro and small enterprises, supports the attendance of small entrepreneurs at

execution of specific projects is made through consultancy firms and technical training organisations SMES, ENTREPRENEURSHIP AND INNOVATION Â OECD 2010110

high-technology development zones, university science parks, incubators and software parks across China. At the national level alone, by 2008 53 high-technology development zones, 62 university science

parks, about 200 business incubators and 35 software parks had been developed through governmental support. In the period 1992-2005, the revenue, industrial value added

companies through its administrative arm and the university science parks and incubators. From 1991 to

%Universities or HEI Suppliers Clients or customers Competitors Firms within the group Small Medium Large

Small Medium Large Consultants commercial labs or private institutes Government or public research institutes 0 5 10 15 20 25 30

education and legal aspects relating to genetics and genomics. These policies were dovetailed with UNESCO€ s Universal Declaration on the Human Genome and Human rights

i e. universities and research institutions, IPR centres, and businesses. These intermediary institutions provide integrated services in the areas of technology, human resource capacity building, business

the private sector has invested over USD 2. 5 billion in incubator graduates Potential entrepreneurs first have to be accepted by the incubator

Russian universities and research institutions; or to carry out innovative projects realised with the support of Russian universities.

The Foundation has invited about 4 000 Russian scientists in various spheres to work as experts.

The Ministry of Higher education, Science and Technology (MHEST) and the Ministry of the Economy ME) have been supporting R&d and innovation activities in SMES through co-financing R&d projects

coordinated and carried out by TIA, the Ministry of Higher education, Science and Technology, Ministry of

Other smaller programmes focus on the entrepreneurial education of different target groups SMES, ENTREPRENEURSHIP AND INNOVATION Â OECD 2010124

%Universities or HEI Suppliers Clients or customers Competitors Firms within the group Small Medium Large

Small Medium Large Consultants commercial labs or private institutes Government or public research institutes 0

on the academic staff of South african higher education institutions. The programme aims to enable local industry to respond to technology needs,

and to foster collaboration among industry, HEIS and science, engineering and technology institutions. Graduates from the programme often end up employed in the industry they

worked with, as a result of the working relationships developed during the programme The first allocations of programme funds were made in 1994.

these transfers of expertise and student placements occurred with MSMES partners in 2007/08. The programme does not fund MSMES directly;

funding is released to HEIS and science, engineering and technology institutions. During 2007/08, 265 MSMES participated in projects as industry partners (66.8%of

M. Education N. Health and social work O. Other community, social and personal service activities P. Private households with employed persons (ISIC Rev. 3) or Activities of households

-entry learning about one†s own efficiency also matters (Jovanovic, 1989), but there is a knowledge barrier in every industry which makes a certain degree of previous knowledge

Company and university spin-offs are prominent examples of the role of knowledge in the entrepreneurial process.

On the other hand, university spin-offs are synonymous with knowledge-based organisations, although they may lack the market knowledge to

smartness and the family†s level of education. With regard to innovation potential Cantner, Goethner and Meder (2007) find that pre-entry technical knowledge

organisations, including enterprises (e g. suppliers and customers), universities, research organisations, etc. They may also need to interact

2. Competence building, including provision of education and training, creation of human capital, production and reproduction of skills, etc

and other mechanisms, including interactive learning among different organisations involved in the innovation process (e g. customer

-supplier relations, industry-university collaborative research, technology networks linking university faculty to exploitation partners, etc

6. Creation and change of institutions that influence innovation actors and processes by providing incentives or obstacles to innovation (e g.

university-based technology centres assessing commercialisation opportunities, etc Source: Based on Edquist, 2005 SMES, ENTREPRENEURSHIP AND INNOVATION Â OECD 2010 135

capita, with students in higher education and with employment in high-tech industries The following section provides evidence about the geographical concentration of

share of university R&d funded by local private sources. That goes beyond the scope of this

alia, to indicators of knowledge flows such as the level of external funding for university research, the presence of intermediary technology organisations, and the correspondence

in the form of leading universities and research organisations, strong concentrations of skilled human resources in the key cluster industries and strong networks (Potter and

Tacit knowledge is created not just a priori through investments in education and training or the attraction and retention of qualified labour,

intensity, basic university research and highly-skilled workers are most important. For example, in the United states, knowledge-driven industries such as semiconductors

University-industry knowledge transfers In knowledge-and technology-intensive sectors, relationships with universities and other public research organisations take on growing importance for innovation in SMES

This has led to the emergence and growth of university-based knowledge transfer offices KTOS), which take responsibility for the whole process of identification, protection

valorisation and transfer to industry of university innovations Despite the increasing importance of university-industry knowledge transfers and of

public schemes that try to bolster such transfers, it is difficult to produce reliable and

comparable data on this phenomenon. Patents and numbers of spin-off companies are relatively easy to count,

biased towards universities and public research organisations that are part of the network but also attempts to cover nonmembers.

of University Technology Managers (AUTM) has undertaken similar surveys since the early 1990s Data show that KTOS have a much longer tradition in the United states than in Europe

universities (102.7 per university) than in Europe (20.2) and so are priority patent applications (61.1 vs. 10.7) 4 and the number of patents granted (18.8 vs. 4. 0). However, the

European universities are more reluctant to apply for patents for which they do not perceive a concrete licensing opportunity.

university spin-offs in the two different contexts diverge much more slightly, with nearly 2 spin-offs per KTO a year in Europe and nearly 3 in the United states

University-industry knowledge transfers are also of increasing importance in Asia Box 3. 2 provides a snapshot of recent trends in China, Japan, and Korea

Knowledge transfers concern not only industry and universities but also government organisations, financial bodies and intermediary institutions that play a supporting

Box 3. 2. University-industry knowledge transfer in Asia In China, university-industry knowledge transfer is a recent topic,

but it has captured increasing attention. In 2002, a law along the lines of the US Bayh-Dole Act was enacted

that enables universities to manage their own IPR, have equity investments in new firms and commercialise R&d results.

with universities being given considerable freedom in the way they can run these centres Data, however, show that knowledge transfer is still incipient in China.

Universities have a great number of patents (126 per KTO), but only 1. 6 of them are international.

In Japan, a large proportion of university inventions are passed directly to companies through joint research agreements.

which universities may choose to own IPRS and are asked to set up KTOS, while researchers have to be compensated up to 50%of

Finance Fund industry and university research; support university entrepreneurship Participate in transfer activities identify criteria for risk sharing

support investments in R&d New financial services for R&d investments in technology-based start-ups; appropriate evaluation

agreed recruitment and training, etc. or joint projects (e g. with training providers and technology institutions

OECD reviews of FDI and local development in Spain, Switzerland, Russia, Ukraine and Scotland have examined how local and regional governments and development

workers, levels of R&d, enrolments in graduate programmes and the potential creation of growth-oriented businesses by immigrants.

researchers will look particularly at the quality of universities and research laboratories, as well as at the overall research support system,

and university spin-offs, rely on market and technological knowledge acquired in their source organisations for their success

characterises the relationship between the knowledge exploration (universities, research organisations, etc. and knowledge exploitation (large and small enterprises) parts of an

universities and research organisations to transfer knowledge to other national or local actors and strengthen the mechanisms available to them to do so, such as by encouraging

technology brokers and binding parts of the funding of universities and research organisations to the undertaking of local knowledge transfer functions.

universities and research organisations with the specialisms of firms. The message of related variety, however, is that knowledge transfers across complementary sectors are

bases and shared competences since interactive learning across related sectors is more likely to lead to important or breakthrough innovations, in the sense of combining existing

â Design advice and training programmes for start-up entrepreneurs who have strong technological knowledge but lack market and commercial expertise

â Diagnostic and training programmes insisting on business planning and key management principles represent fruitful policy options to strengthen the pre-entry

â Promote corporate and university spin-offs as high-potential knowledge-intensive businesses â Spin-offs, both corporate and university-based, are an important target for promotion

efforts because the internal technology and market competencies they carry from their sources in universities and other firms make them more likely to grow faster

than the average start-up. Programmes for corporate spin-offs should aim to diversify the customer base of these firms,

As to university spin-offs the gap between technological invention and commercial innovation should be bridged through â€oeproof-of-concept†support for testing the technical and commercial

programme, which supports university centres with the mission of launching academic spin-offs. The programme raises awareness about business creation among

students and faculty; provides coaching about business planning to those interested in the start-up process;

â Interactive learning networks boost SME innovation and need to be stimulated â Interactive learning networks will encourage innovation, especially for small-sized

firms that lack assets and resources to invest in R&d. Cluster programmes continue to receive much attention from national and local policy makers in light of the

comprehensive collective learning policies implemented by a national government. In 20 years of operation, this programme has supported 53 high-tech development

zones, 62 university science parks, about 200 business incubators and 35 software parks (see China†s Country Note.

â Universities need to be involved actively in the innovation system â Local universities and research institutes need to be involved actively in knowledge

flows and so be given the opportunity to unfold their â€oethird mission†to contribute to the development of their region (OECD, 2007c;

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

and higher education institutions can play an important supporting function through the transfer of knowledge. Collaborative research programmes that focus on pre-competitive research and put together

university and company researchers are an option. Technology-bridging institutions can also be useful, as they help shape the direction of research

transfer by strengthening the industry-university link. In Australia, for instance Enterprise Connect is a programme that runs six manufacturing network centres and

SMES often proves to be the most important barrier to industry-university collaboration Skills development or innovation purchasing initiatives can fit this purpose,

in training, especially in SMES. University-industry staff exchange programmes should also be considered, although rigid university employment practices and the very

university incentive structure (e g. the pressure to publish on peer review journals) can render this specific type of labour mobility difficult

â Promote cross-fertilising technologies with multiple industrial applications â Considering that every technology implies several possible entrepreneurial

opportunities, often in more than one industry, policies should target broader technologies with potential multiple industrial applications rather than more

strong knowledge base at the university level. Related variety should also be taken into consideration in attempting to diversify into new growth areas based on new

University Press, Oxford Audretsch, D. and M. Feldman (1996), â€oer&d Spillovers and the Geography of Innovation and

A New Perspective on Learning and Innovationâ€, Administrative Science Quarterly, Vol. 35, No. 1, pp. 128-152

Kneller, R. 2007), â€oejapan†s New Technology Transfer System and the Preemption of University Discoveries

by Sponsored Research and Co-inventorshipâ€, Industry and Higher education, Vol. 21, No. 3 Florida, R. 2002), The Rise of the Creative Class, Basic books, New york

Towards a Theory of Innovation and Interactive Learning Pinter, London SMES, ENTREPRENEURSHIP AND INNOVATION Â OECD 2010156

OECD (2007c), Higher education and Regions: Globally Competitive, Locally Engaged, OECD, Paris OECD (2008a), Enhancing the Role of SMES in Global Value Chains, OECD, Paris

Potter, J. ed.)(2008), Entrepreneurship and Higher education, OECD, Paris Potter, J. H. Marchese and A. Hofer (forthcoming 2010), Local Strategies for Entrepreneurship and Small

Piccaluga, A. and R. Pietrabissa (2009), International Dynamics of University-Industry Knowledge Transfer paper presented at the OECD Conference â€oesmes, Entrepreneurship and Innovationâ€, Udine, Italy

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

discussed are the roles of tertiary and school education, vocational training and the use of knowledge-intensive service activities and small business support in the

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

It is built on cumulative learning and preparedness (Gibb Dyer, 1993; Gibb 2002,2009), and this comes from entrepreneurship skills

How is the necessary learning and preparedness acquired? How can entrepreneurship skills be fostered through government

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

and that training and mentoring can make a difference. Small business managers can face problems in meeting new challenges for

confirm the existence of a skills and training problem holding back innovation. Across OECD countries, employees of SMES participate in formal training activities to only half the

extent that staff in large firms do (OECD, 2010b, forthcoming. Hence, formal skills and training policies have only a poor reach into the SME sector.

Even informal competence -building measures have little take-up among low-skilled SME workers In the future there will be a need for new types of skills matching new types of jobs, as

education curriculum. Second, such skill is brought not usually out in the industry training 4. ENTREPRENEURSHIP SKILLS

system. Therefore, looking towards the skills scenario of 2020, it is time to give entrepreneurship skills greater attention

acquired through education, training and/or experience Although each task might require a series of skills for its successful accomplishment

Generic General IT user skills, oral communication, written communication, numeracy and literacy, office administration skills Routine Repetitive, more basic, low knowledge-intensive skills (e g. packing chocolates in boxes in a factory

training and skills development) and allocation of resources (e g. management of intellectual property financial management, firm health and safety operations

Entrepreneurship skills are understood best in relation to lifelong learning, where the individual acquires skills through their life history. In formal education, entrepreneurship

training can be provided at different levels, from primary and secondary schools, to vocational colleges and tertiary and university education.

The focus and objectives may of course vary. Entrepreneurship education in schools tends to be about embedding an

entrepreneurial mindset. The aim is to foster more positive attitudes to this career road that students may carry with them into their later careers,

making the decision to start or run an enterprise more probable and increasing people†s willingness to be enterprising at

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

planning However, it is argued often that the working environment rather than formal education is where â€oeentrepreneurs†learn the most.

This section therefore explores entrepreneurship skills provision both in the formal education system (focusing on higher

education, vocational education and schools) and in work environments (focusing on informal entrepreneurship learning at work through the involvement of workers in

knowledge-intensive service activities and entrepreneurship training by SME support organisations Universities and higher education institutions Entrepreneurship teaching

OECD work shows that third-level (higher education) entrepreneurship teaching activities are increasing (Potter, 2008. Until recently, entrepreneurship education was very

rarely provided. Now, however, it is a rapidly evolving field with emerging new approaches that meet increased demand from students and the need for tailored teaching.

More universities, faculties and students are becoming involved and the variety of content and pedagogies is increasing.

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

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

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

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

owners. Some 60%of instructors developed their own sets of course materials. Structures SMES, ENTREPRENEURSHIP AND INNOVATION Â OECD 2010 167

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

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

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

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

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

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

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

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

capital) and evaluation (degree of monitoring and assessment of entrepreneurship activities). ) The work found that on average,

the US universities were strongest on these five dimensions, although Canada performed equally well in terms of educational scope and

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

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

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

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

more entrepreneurial economy (Potter, 2008. Two major issues are scaling up provision in order to offer courses to a larger number of students,

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

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

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

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

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

basis for recruitment and promotion †and those not working on core activities can find it

difficult to justify strong investments in what may be seen by their hierarchies and peers as side projects, whatever the expressed interest of the students

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

Many interactive reality-based and experiential approaches have been developed, including virtual and real business creations, business plan competitions, strategy games and discussions with

entrepreneurs. These methods are placed better than classroom lectures to develop SMES, ENTREPRENEURSHIP AND INNOVATION Â OECD 2010168

4. ENTREPRENEURSHIP SKILLS entrepreneurial behaviours. The use of these methods can be promoted by greater networking among universities and faculties.

Inappropriate constraints to the participation of entrepreneurs in entrepreneurship teaching programmes are another challenge Entrepreneurship support frameworks

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

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

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

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

funding or a combination of both to sustain and expand this aspect of their â€oethird missionâ€

Half of them have or are about to establish an entrepreneurship chair or a professorship

More than two-thirds have established dedicated start-up support services, in the form of entrepreneurship centres and technology transfer units,

which offer would-be entrepreneurs and those already in the start-up process consultation and access to

In addition, the majority of the universities provide direct support to start-up: mentoring, grants, incubation facilities. A clear strength to build on is the

presence of people †teachers, researchers, and university staff †with a clear interest in

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

The study identified the important role of public policy in initiating and enhancing entrepreneurship support in universities across the following six areas

â Strategy: There is clear role for public policy in â€oeopening up†universities towards their â€oethird missionâ€,

which ideally should be part of their key missions †research and teaching Clear incentives and rewards are needed for professors, researchers and students to

engage. Public policy can facilitate their introduction by adding â€oeentrepreneurship support†to the list of performance criteria on which universities are assessed

â Resources: Public kickoff funding for entrepreneurship support infrastructure is common to many OECD countries.

Universities will need to find their place in existing start-up and entrepreneurship support systems. Networking and incentives for clear referral systems

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

Universities need to have a genuine interest in such exchange, but public policy can facilitate the creation of platforms, publications

teaching material, etc. Another important area for public policy intervention is curricula development and the integration of entrepreneurship courses, such as creativity classes

A key success factor for university entrepreneurship support lies in private sector collaboration. Universities can create a protected environment for nascent

entrepreneurship. This can be an important stimulus for students and researchers to make a first step towards the creation of a venture.

Yet, in order to avoid â€oeover protectionâ€, early exposure to market conditions is advisable SMES, ENTREPRENEURSHIP AND INNOVATION  OECD 2010 169

Public policy organisations and universities will need to work â€oehand in hand†in developing a monitoring and evaluation system

-economic impact of university entrepreneurship support and reveals needs for changes The work has developed also a criteria list of good practice across the six dimensions from

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

and reorient their current approaches (Box 4. 2 Box 4. 2. Entrepreneurship support in universities:

Criteria for good practice Strategy 1. A broad understanding of entrepreneurship is a strategic objective of the university, and

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

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

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

2. Self-sufficiency of university internal entrepreneurship support is a goal 3. Human resource development for entrepreneurship educators and staff involved in

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

support centre) is in place, which closely collaborates, coordinates and integrates faculty -internal entrepreneurship support and ensures viable cross-faculty collaboration

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

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

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

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

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

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

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

widely used to prepare future self-employed entrepreneurs and SME employees Vocational training colleges have had traditionally a craft focus.

Many of the craft occupations are pursued in practice by the self-employed and people working in micro businesses, for example plumbers, painters, electricians and information technology

specialists. Other people go on to work in larger SMES and may benefit from training provided before employment or in lifelong learning activities whilst in employment

In addition to courses entirely taught in vocational education institutions, an important element of the system is apprenticeships,

where the trainee is based mainly with an employer. Apprenticeship programmes are widespread, with countries like Denmark

Australia, Germany and France often being referred to as good practice. Apprenticeships combine classroom teaching, often in vocational training institutions, with on-the-job

training. In France, for example, since 1925 firms have been obliged to pay an apprenticeship tax (0. 5%of the payroll), up to 40

%of which is earmarked for apprenticeships. All firms apart from those employing apprentices) pay this â€oeapprenticeship tax†(Stone and Braidford

2008). ) Germany furnishes a second example †there the VET dual system includes on-the-job training or in-company training combined with part-time vocational school training.

Since 2002 the demand for apprenticeship positions has exceeded constantly their supply, both in eastern and western Germany (Zwick, 2007.

Box 4. 2. Entrepreneurship support in universities: Criteria for good practice cont 4. The suite of courses has differentiated a offer that covers the pre-start-up phase, the start

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

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

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

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

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

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

4. ENTREPRENEURSHIP SKILLS the â€oeaustralian Apprenticeshipsâ€, bring together the traditional apprenticeship and the traineeship systems. This initiative has been especially successful,

contracted training in the developed world. One reason for the success of these programmes is financial incentive from federal and state governments.

the programmes to training providers (Smith and Smith, 2007 For many, the natural way for entrepreneurs to learn is by doing (Stenstrã m and

SMES through vocational education and training is challenging due to obstacles to SMES in accessing formal training.

Schemes such as training leaves are not fully taken up by employees. Participation in voucher-type schemes is high among employees, but on

average only 50%of the amount of finance available for training is used and there is a low

It is clear that incentives for training are needed often to engage small businesses owners and self-employed people.

It can be argued that this reflects an inappropriate training supply in vocational training institutes which is designed too often around conventional norms of

business management education and not enough around the motivations of entrepreneurs Gibb (2009) argues that a distinction must be made between manager development as

traditionally exercised by vocational training colleges †a teaching de-contextualised from developing the individual †and management development,

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

The business plan should not be as central to the teaching process as is usually the case, rather

And more experiential learning methods should be developed †for example drawing on the entrepreneurship skills created in drama,

The literature also offers some suggestions about how vocational education and training needs to be adapted to better meet the needs of SME workforces.

standardised accreditation Another step that can be taken to fit the vocational training offer more closely to

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

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

) Hence the goal is not to get all students to start their own businesses, but to give young people the ability to think positively, to look

â Ensure that the importance of entrepreneurship is reflected in teacher training â Step up co-operation with the business community for entrepreneurship education at all

levels The emphasis is therefore at three levels: introducing entrepreneurship into the curriculum, developing teaching methods appropriate to the subject (such as virtual

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

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

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

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

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

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

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

agreements with businesses as part of the action plan. The primary goals of the Norwegian strategy are to develop knowledge and competences in students related to entrepreneurial

activities, strengthen young people†s belief in and capabilities of their own creative forces, and foster a culture for entrepreneurship.

education called â€oedetermined to Succeed†(Box 4. 3 Box 4. 3. Scotland†s â€oedetermined to Succeedâ€

entrepreneurship education strategy Scotland†s â€oedetermined to Succeed†entrepreneurship education strategy details the actions that needed to be taken by the Scottish government to embed entrepreneurship

into the national schooling system. The strategy is part of a long-term drive to build an

enterprise culture in Scotland that will give young people a better chance of realising their full potential and will give the economy of Scotland the skills, new ventures and

business community, HM Inspectorate of Education, Learning and Teaching Scotland Careers Scotland and the Scottish Qualifications Authority.

education. An annual reporting process ensures examples of good practice can be shared and support can be channeled appropriately.

child†s learning A report by HM Inspectorate of Education (2007) highlighted the four capacities that are

being developed through the strategy and these are 1) Successful learners â are skilled in generic processes and activities such as core skills

â appreciate the relevance of what they are learning â can use experiences in enterprise to reflect on other learning

and make connections â are self-motivating and accept setbacks as learning experiences SMES, ENTREPRENEURSHIP AND INNOVATION Â OECD 2010174

4. ENTREPRENEURSHIP SKILLS Box 4. 3. Scotland†s â€oedetermined to Succeed†entrepreneurship education strategy (cont

â can generate and act upon original ideas â understand transitions throughout life and the importance of making connections

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

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

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

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

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

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

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

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

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

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

significantly less in-company training than employees in larger firms. This remains true in countries reputed for their high levels of training culture such as Denmark, the

Netherlands, Norway and Sweden. In terms of annual volume of hours spent by employees in training, the average in firms with less than 50 employees is about half that of large

firms with 1 000 employees and more, and about two-thirds of the average of all firms.

49 employees provide some formal training for their employees: Denmark (48%),Finland 38%),The netherlands (36%),Sweden (51%)and the United kingdom (35%),but even here

countries have very few small firms providing any formal training: Greece (3%),Hungary 7%),Italy (11%),Poland (8%),Portugal (4%)and Spain (10%.

There are also important inequalities in training access in SMES in relation to the age education and type of occupation of the individual concerned.

Analysis shows a systematic access gap in a range of OECD countries: younger, better educated workers in high-skilled

One of the reasons that SMES undertake less formal training than large firms is cost

of activities, investment in the training itself, and the adverse effects on management of workloads.

of training beyond day-to-day informal learning on the job. Such an emphasis on employee-driven learning and trial-and-error behaviour can obviously be detrimental to

both the firm and the employee SMES, ENTREPRENEURSHIP AND INNOVATION Â OECD 2010176 4. ENTREPRENEURSHIP SKILLS

training and strategic planning of training (Muller and Zenker, 2001. For example entrepreneurial skills can be acquired through in-house team work for development of a

training programmes KISAS and learning at work Learning at work or learning by doing in SMES can also be stimulated by activities with

a high knowledge component, undertaken in collaborations between SME employees and external professionals or in SME employee work groups (OECD, 2006;

employees learning from or together with their co-workers. Many entrepreneurship skills are acquired in the process of knowledge co-production;

KISA activities could also be understood as informal learning resulting from activities related to work that are organised not in terms of learning objectives,

learning time or learning support (CEDEFOP, 2008b Can KISAS be associated with formal or informal training on the job?

â€oeformal training†here refers to learning that occurs in an organised and structured environment (e g. in an

education or training institution or on the job) and is designated explicitly as learning (in terms of objectives, time or resources.

Formal learning is intentional from the learner†s point of view; it typically leads to validation and certification. â€oeinformal training†refers to

learning resulting from daily activities related to work, family or leisure. It is organised not or structured in terms of objectives, time or learning support.

Informal learning is in most cases unintentional from the learner†s perspective (CEDEFOP, 2008b. KISAS can be placed

within the informal training category although it includes a greater component of knowledge intensity and interactive skills

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

there is no accreditation or contrasted evaluation, and little is known of their effects and impact on skills upgrading and employability of the labour

tailored training in innovation management or innovation/technology audits. Similar schemes are reported in Chapter 2 for Greece, The netherlands, Portugal, the United

In particular, the kinds of training offered by local chambers of commerce and business associations, and the investment activity of local governments in private sector

development, for instance through smart infrastructure such as HEI networked business incubators, can make a difference in training take-up rates

Business succession Business succession, that is, the transfer of businesses from retiring owners to new owners, is an interesting field for policy that can combine elements of business start-up

combination of theoretical knowledge acquired formally in the classroom via VET providers and practical knowledge acquired on the job was successful in providing

SME management training According to a European commission document on management capacity-building policies for SMES, a common issue throughout Europe is that an overwhelming majority of

number of training days or hours (European commission, 2006. This has adverse effects on the capacity of SMES to adapt to new markets and technologies.

relationship between management training and better overall performance of the firm OECD, 2002 For these reasons a series of programmes and initiatives are directed to management

training in SMES, which is defined as â€oegroup-taught formal learning, external to the firm provided for owners and managers of independent enterprises with 250 employees or

fewer, and at least partly funded by the organisation†(OECD, 2002, p. 6 Evaluations of these measures indicate that networking opportunities,

Effective management training initiatives for small firms usually involve critical self evaluation; sharing of experiences that provide an opportunity to achieve

business insights by learning from others in similar positions; and solving business challenges using experienced mentors

Business counselling â€oecounselling†is a â€oeone-to-one†service tailored to the specific requirements of the

type of training is common in SMES although the volume differs from large firms. SMES tend

and cannot be labelled as standard training (Martinez -Fernandez, 2005; Martinez-Fernandez et al. 2005a, b; Martinez-Fernandez and Martinez

such as financial, marketing, legal, personnel development, training, recruitment and business management services. Examples from this group include the provision of

Another example could be the training of key personnel in knowledge management for commercialisation of new products and services through public support

The competitiveness of firms also depends on the learning infrastructure available in the community where the firm is embedded â€

what are called â€oeskills and training ecosystems†(OECD, 2010b, forthcoming; Hall and Lansbury, 2006. This learning

infrastructure includes training institutions and organisations in the local community Small firms must rely on training skills available locally, on the way the ecosystem

upgrades these skills, and on the way the services are offered (Hall and Lansbury, 2006 The concept of skill ecosystems directs attention to the interdependency of multiple

training in discrete competencies The concepts of workforce development and sustainable skill ecosystems underline the importance of establishing

bring together public and private training providers (including colleges and universities employers, industry representatives, unions, labour market and training intermediaries

temporary work agencies and group training companies), local and regional government agencies, and community representatives.

Governments have a critical role to play as catalysts here, providing an appropriate policy context and support for the resources

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

regions, it tends to be seen as a local resource by both enterprises and employees. This, and

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

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

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

Provide training, encouragement and support for staff embarking on entrepreneurship teaching activities. Facilitate teaching activities

â Introduce interactive teaching methods that incorporate practical experience Encourage learning by doing in contrast to more traditional forms of academic

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

Provide students with opportunities to work in existing SMES and to add value to these firms through

Formaper, the training agency of the Milan Chamber of commerce, Industry, Craft and Agriculture, works to meet the training demand of its 325 000 registered enterprises.

The institutional task is to contribute to the development of an entrepreneurial culture, building on

and social development through the provision of high-quality training and consulting services Formaper activities are aimed at providing technical assistance to private and public

Typical assignments include delivering tailored training and support services for the following fields of expertise

development †training programmes for owners, managers and consultants in business planning, financial services, ICT and marketing

â Adult learning and links with the labour market â Regional development, including capacity building for Business Support Providers (BSPS

that students will face â Link into wider networks. Tap into the resources of alumni networks to help fund and

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

â Change the nature of vocational education and training to better fit the needs and motivations of entrepreneurs:

emphasise the â€oeneed to know†and the â€oehow toâ€; do not overload programmes with information that will not be used in practice;

experiential learning methods â Offer short duration â€oeinnovation bootcamps†for SME owner-managers such as weekend seminars and short online courses

â Increase the flexibility of vocational education and training for SME workforces. Target both workers and enterprises;

limit administrative burdens; increase transparency and clarity of objectives and information to employers and employees;

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

programmes for business succession, SME management training and business counselling â Include entrepreneurship activities in school curricula;

develop interactive materials and activities and involve entrepreneurs and businesses; provide training, incentives and support to teachers involved in entrepreneurship activities

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

development of potential team leaders; launch projects to impart entrepreneurship skills across all occupations around product and process development initiatives

improve the average level of project management skills; offer foreign language training; broaden the focus of entrepreneurship skills development projects to

encompass all occupations and not just management; increase apprenticeships in SMES since they are ideal for entrepreneurship skills development

â Increase the use of informal learning sources â Tap into knowledge-intensive service activities (KISA) processes to increase the

â Promote greater participation of SMES in local training programmes through the engagement of employers, unions and individuals,

â Create integrated training strategies combining training located in higher education vocational education and training, knowledge-intensive activities performed by the

firm and SME support programmes Note 1. â€oeskills for entrepreneurship†refer to those capabilities involved in firm creation

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Dawe, S. and N. Nguyen (2007), Education and Training that Meets the Needs of Small Business:

Review of Research, National Centre for Vocational education Research (NCVR), May 2007, Adelaide European commission (2006), Management Capacity Building, Enterprise and Industry Directorate

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

Gibb, A. 2002), â€oein Pursuit of a New †Enterprise†and †Entrepreneurship†Paradigm for Learning

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Lazear E. P. 2004), â€oebalanced Skills and Entrepreneurshipâ€, American Economic Review, Vol. 94, No. 2

2007), Enterprise Training in Europe †Comparative Studies on Cultures Markets and Public Support Initiatives, LIT-Verlag, Vienna

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

Responses to Globalisation, University of Western Sydney and Liverpool City council, UWS Sydney Martinez-Fernandez, C. and S. Sharpe (2007), Ways to Grow in South West Sydney, University of Western

Sydney and Liverpool City council, UWS, Sydney Martinez-Fernandez, C.,C. Soosay, V. V. Krishna, T. Turpin, M. Bjorkli and K. Doloswala (2005a

Knowledge Intensive Service Activities (KISA) in Innovation of the Tourism Industry in Australia, University of Western Sydney, Sydney

Activities (KISA) in Innovation of the Software Industry in Australia, University of Western Sydney Sydney

Martinez-Fernandez, C. and S. Sharpe (2007), Ways to Grow in South West Sydney, University of Western

OECD (2002), Management training in SMES, OECD, Paris OECD (2003), OECD Employment Outlook, OECD, Paris OECD (2005), SME and Entrepreneurship Outlook, OECD, Paris

OECD (2010a, forthcoming), Leveraging Training and Skills Development in SMES, OECD, Paris Potter, J. ed.)(2008), Entrepreneurship and Higher education, OECD, Paris

Smilor, R. 1997), â€oeentrepreneurship: Reflections on a Subversive Activityâ€, Journal of Business Venturing Vol. 12, No. 5, pp. 341-346

Smith, A. and E. Smith (2007), â€oethe Development of Key Training Policies in England and Australia:

Comparisonâ€, London Review of Education, Vol. 5, No. 1 march, pp. 51-67 Stenstrã M m. -L. and P. Tynjã¤lã¤(2009), Towards Integration of Work and Learning:

Strategies for Connectivity and Transformation, Springer, United kingdom Stone, I. and P. Braidford (2008), Engaging Employers in Continuing Training:

An International Review of Policies and Initiatives, Research Report 30 march, UK Sector Skills Development Agency, United

Zwick, T. 2007), â€oeapprenticeship Training in Germany †Investment or Productivity Driven? †Discussion Paper No. 07-023, Centre for European Economic Research, Germany

the United states and abroad, biotechnology industries, companies, universities and organisations, drug research is brought from the lab into the clinic and on to regulatory

capacity by training healthcare workers and scientists in clinical drug development, which in turn stimulates new avenues of economic development

retirement homes through to home care for the elderly and disabled, training for healthcare professionals and training to help companies prevent accidents through regular

physical activities in the workplace demonstrates the importance of the services it delivers. Focusing on preventative health has the result of reducing public spending on

Silai for Skills is established a long women†s training and employment project based in the inner city area of Easton in Bristol, England.

business or simply to further their education, while at the same time increasing their self -confidence. In fact, many of the students pursue further goals in education or in the

workplace, or move on to self employment. The positive results gained from its work with women across Bristol have led to the project†s longevity:

and numeracy and literacy support. It can also provide a free day nursery service in the

finding education and learning opportunities locally, and help with career planning and job applications, the project offers information, advice,

charge to all (students and non-students alike A wide range of courses in practical, specialised fields in fashion and art design (garment

so that all students can have access to the services regardless of their financial situation A new development for Silai for Skills is an â€oeenterprise unit†in which current and past

students can receive counselling and training on setting up a new business, or just to gain

Also, each year a number of students desiring to start their own business can set themselves up on their on-site workshop,

programmes and training sessions that include gymnastics practiced on chairs strengthening, stretching, balance exercises to prevent falls,

developed specific training departments. There is Domisiel, which was created to offer programmes of adapted physical activity for elderly and disabled people in their home

which works as a training department for healthcare professionals working with the elderly. There is also GPS Santã, a commercial venture

National Education Ministry set up a sport and physical training degree programme, with a related diploma, aimed specifically at care for the elderly.

Programme and funding schemes are also in place through the Department of Social welfare and healthcare insurance companies that help to pay for SIEL Bleu†s services.

charter schools, community-centred planning, emissions trading, fair trade, habitat conservation, international labour standards, socially responsible investing, supported

ownership, education, and starting a small business Accompanying this is a programme of financial education, with attendance at training

sessions in financial management and economic literacy usually mandatory as a condition of participation. Programme workers also maintain close personal contact with clients to

provide counselling and encouragement. The programme sponsor is responsible for recruiting participants and the provision of counselling and financial education support

Once recruited, the IDA participant opens an IDA account with a partner financial institution and begins saving.

and training; and the bank issues a local currency (Palmas currency), which complements the offic

programmes to provide training to vulnerable young people and women; to raise awareness of community benefits of consuming local goods and services,

education, healthcare and economic opportunity. It will partner with foundations philanthropists and corporations that commit matching resources, funding and technical

and Learning Lab seeks to disseminate what works and what does not work (www. nesta. org. uk

school and university curricula â Social entrepreneurs might need special training to help them hone

and develop their entrepreneurial and creative skills. At the same time a culture of inclusive entrepreneurship needs to be nurtured to encourage role models of successful

businesses and to include social entrepreneurship in school and university curricula â Support market development for social enterprise and provide training for public officials and

social enterprises to deal with public tenders â Public procurement measures should be developed further so that social enterprises

allow fast learning across a community of innovators; and, establish clear pathways for scaling up the

Teaching resources Handbook for Faculty Engaged in Teaching and Research in Social Entrepreneurship Ashoka†s Global Academy for Social Entrepreneurship, Ashoka, Arlington

Carleton University, Ottawa Caulier-Grice, J. and G. Mulgan (2009), â€oeexploring the Links between Social Enterprises, Social

Management, London Business school, full paper available at www. london. edu/assets/documents /PDF/Gem soc ent web. pdf

Understanding and Learning from the Differencesâ€, Voluntas, Vol. 17, No. 3, pp. 247-263 Lasprogata, G. and M. Cotton (2003), â€oecontemplating Enterprise:

Formedâ€, Working Paper No. 521, September, IESE Business school, University of Navarra (Spain Mair, J. and I. Marti (2004), â€oesocial Entrepreneurship:

Future Researchâ€, Working Paper No. 546, IESE Business school, University of Navarra (Spain Mair, J. and I. Marti (2006), â€oesocial Entrepreneurship Research:

University Press, Oxford Noya, A. ed.)(2009), The Changing Boundaries of Social Enterprises, OECD, Paris

Entrepreneurshipâ€, University of Aukland Business Review, Vol. 11, No. 1, pp. 45-51 Santos, F. 2009), â€oea Positive Theory of Social Entrepreneurshipâ€, Faculty and Research Working Paper

Social Innovation Centre, INSEAD, 2009/23/EFE, http://knowledge. insead. edu/abstract. cfm? ct=25999 #Seelos, C. and J. Mair (2005), â€oesocial Entrepreneurship:

Contributions and Ethical Dilemmasâ€, University of Minnesota Conference on Ethics and Entrepreneurship Zhara, S.,E. Gedajlovic, D. Neubaum and J. Shulman (2008), â€oetypology of Entrepreneurs:

of distance learning that were pioneered in social organisations but then adopted by businesses, or for-profit businesses innovating new approaches to helping disabled people into work

either spread throughout a profession or sector †like education or healthcare †or geographically from one place to another. â€

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

â Strengthen knowledge-based entrepreneurship by providing advice and training to start-up entreprene with strong technological knowledge and developing programmes for corporate and university spin-o

including proof-of-concept, pre-competitive research and seed funding support â Promote partnerships and collaboration activities within innovation systems that involve new and sm

â Stimulate local knowledge flows by involving SMES in interactive learning networks, promoting the lo

entrepreneurship engagement aspects of university â€oethird missionsâ€, developing technology bridg institutions, strengthening the innovation absorption capacity of SMES

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

introducing interactive teaching methods that incorporate practical experience and linking into wi networks including alumni networks and external economic development organisations

â Strengthen vocational education and training programmes for business founders, SME managers and S workforces by changing the nature of vocational education

and training to better fit the needs a motivations of entrepreneurs, offering short-duration training for SME owner-managers and increasing

flexibility of vocational education and training for SME workforces â Embed teaching of an entrepreneurial mindset in schools through changes in curricula and introduction

relevant teacher training and teaching materials designed for entrepreneurship â Reinforce training in SMES by launching in-company projects, increasing SME apprenticeships a

developing the training function of small business support programmes, such as for business successi management development and business counseling

â Increase the use of informal learning sources by facilitating collaborations with firms and consulta

providing knowledge-intensive services activities, such as through innovation voucher programmes SMES â Strengthen the contribution of local skills ecosystems to entrepreneurship and SME development throu

greater engagement of employers, unions and individuals involved in new and small firms with lo

training programmes and development of integrated training strategies combining training in hig education, vocational education and training and formal and informal training

4. Improve the environment for social entrepreneurship and social innovation â Build financial, fiscal, legal and regulatory environments that enable social enterprises to meet th

university curricula â Introduce social clauses in public procurement procedures to encourage involvement of social enterpri

support learning across a community of innovators and establish clear pathways for scaling up the m

and learn from universities research organisations and technologically-advanced companies. This is key to receiving external knowledge and avoiding technology lock ins in innovation systems

They include firms, universities, finance suppliers and public sector agencies bound together by common sets of norms and routines

engagement of SMES with providers of KISAS supports their learning and innovation processes. This engagement may be through either formal (contractual) or informal

Learning failure A type of systemic failure occurring when firms in an innovation system have not

universities, colleges, employment agencies, unions and training organisations /associations, and are supported by integrated policy approaches to skills development

often provide personal and welfare services and training and integration into employment of persons excluded from the labour market

or by researchers, teachers or students of a university (i e. university spin-off. Corporate spin-offs are established often to outsource stages of production previously carried out in

University spin-offs often exploit technologies generated within the university Systemic failures Systemic failures are problems in innovation systems that prevent the generation

circulation and exploitation of knowledge. Examples include technology lock ins, learning failures and poor connections among the actors of an innovation system

Vocational education and Training (VET Formal education and training programmes that have a task orientation rather than

an academic nature and that prepare people for jobs and activities closely related to a specific trade or occupation

Interactive learning Modes of innovation Policy implications Plan of the book Notes Bibliography Chapter 2

University-industry knowledge transfers Table 3. 5. KTOS at a glance in Europe and the United states

Box 3. 2. University-industry knowledge transfer in Asia Table 3. 6. Activities, responsibilities and expected results of knowledge-transfer actors

Universities and higher education institutions Box 4. 2. Entrepreneurship support in universities: Criteria for good practice Vocational education and training

Schools Box 4. 3. Scotland†s â€oedetermined to Succeed†entrepreneurship education strategy Training in SMES

KISAS and learning at work Small business support Local skills ecosystems Box 4. 4. Formaper Policy recommendations

Note Bibliography Chapter 5. Social Entrepreneurship and Social Innovation Introduction Box 5. 1. The growth of social entrepreneurship

Social entrepreneurship What is social entrepreneurship The challenge of defining social entrepreneurship Social entrepreneurship theories

Box 5. 2. Social entrepreneurship â€oeattitudes†in the for-profit sector Social entrepreneurship practices Box 5. 3. Health and Social Care Cooperative (Wonju, Korea

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