Entrepreneurship and competitiveness for SMEs
Dialogue between Brazil and the EU
EU Enterprise and Innovation Initiatives
Carl James
Entrepreneurship and competitiveness for SMEs
Dialogue between Brazil and the EU
Competitiveness of EU enterprises
European enterprises face strong competition from global competitorsPressures on employmentSocial consequences
Entrepreneurship and competitiveness for SMEs
Dialogue between Brazil and the EU
Europe 2020 strategy
• The Europe 2020 strategy is about growth that is:
• Smart - education, research &innovation
• Sustainable - a low-carbon economy
• Inclusive - job creation and poverty reduction
Entrepreneurship and competitiveness for SMEs
Dialogue between Brazil and the EU
Governance
To ensure that the Europe 2020 strategy delivers
• An effective system of economic governance to coordinate policy actions between the EU and national levels.
• Enterprise and innovation are linked
Entrepreneurship and competitiveness for SMEs
Dialogue between Brazil and the EU
EU and member states
EU importance is in:• Regulation and legislation• Coordination• Demonstration actions• Programmes in a very few
areas
Member states have far more resources
EU budget is between 1.10% and 1.05% of Gross National Income of the 27 member states.
• The expenditures of the large states like France, Italy and UK is six to seven times that of the EU.
• Education, health and social security are member state responsibilities
Entrepreneurship and competitiveness for SMEs
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EU Budget Distribution
economic managementinnovationresearcheducation & culturestructural fundsagriculture and ruralexternal
1.10%3.16%5.14%
1.98%
39.44%
43.85%
5.32%
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Dialogue between Brazil and the EU
Enterprise and Innovation
EU policy has divided into two aspects– Innovation policy
• Supporting radical innovations• In a global market• With a strong science base
– Enterprise policy• Supporting improvements in enterprises• Dealing with market problems• Supporting technology diffusion and skills
They are governed differently
Entrepreneurship and competitiveness for SMEs
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Hurdles for new member states
• Characteristics– Weak performance on innovation– Lack of strong linkages between science and
enterprises– Deficits in entrepreneurial culture– Undeveloped and inexperienced support
bodies– Lack of internal purchasing power and access
to broader markets
• Challenge to balance– Innovation support for long term leading edge
growth– Overall support to enterprises for optimum
medium term economic returns
Entrepreneurship and competitiveness for SMEs
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EU Innovation Policy
9 strategic priorities– Intellectual property rights– Public procurement – Joint technology initiatives– Lead markets– European Institute of Innovation and Technology– Clusters– Innovation in services– Risk capital markets
Recognition that there is a huge gap between the performance of different member states
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EU Enterprise Policy & SMEs
Small Business Act– Deal with framework enterprise conditions
• Education and training for entrepreneurship; • Better legislation and regulation; • Strengthening the technological capacity of small
enterprises; • Making use of successful e-business models and
developing top-class small business support;
– Also moves toward innovation• Fostering eco-innovation and energy efficiency in
SMEs• Fostering creativity in entrepreneurship
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Governance of the two aspects
Innovation EU sets framework conditions for member states
Commission has its own initiatives, in which states and regions participate
EnterpriseEU sets framework conditions
States carry out support actions with assistance through agreed programmes
Entrepreneurship and competitiveness for SMEs
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Differences
Innovation• 3% of budget on
enterprise• Additional 5% on
research• Also member
state initiatives
Enterprise• Through
structural funds with 39% of budget
• Managed and delivered by member states & regional bodies
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Innovation policyCompetitiveness and Innovation
Programme will become part of Horizon 2020
Run through the Commission.It Includes elements on:• Innovation financing• Energy• Eco innovation• Europe Enterprise Network
Participation of member state bodies in the programme
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How the innovation programme works
CIP facilitates national actions in finance, networking, eco-innovation, energy, application of ICT.
Intermediary institutions in member states apply. These include regional governments and banks.
Member state bodies deliver to the SMEs. They provide 'Match funding', i.e. the initiative depends on a combination and agreement of the regional bodies to enter the programme
Enterprises
Enterprises can apply to one or two measures directly.
The research programme (Framework 7) takes direct applications
There are also programmes for the creative industries – media and culture programmes, where enterprises can apply.
Entrepreneurship and competitiveness for SMEs
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Assistance to enterprises
• Through structural fund instruments• As part of economic development
initiatives managed at a regional level
• Some transnational initiatives• Includes enterprises at all levels,
depending on regional programme and project – from social to traditional to leading edge
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Assistance through the structural funds
These programmes are agreed between EU and member state and jointly funded
EU contribution depends on wealth of state & region
Follow EU priorities Delivered by member state bodiesTargeted at economic developmentEnterprises are a principal beneficiary
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Typical programme prioritiesPriority 1: Business competitiveness,
commercialisation and innovation- Finance and advice for new businesses
- ‘Greening’ businesses
- Support for potential high-growth firms
Priority 2: Key drivers of sustainable growth- Development of research centres of excellence
- E-learning and training facilities
- Developing new products and services to make use of natural/historical/cultural assets
Priority 3: Peripheral and fragile communities- Support for regeneration projects
- Local business incubator and e-business facilities
- Transport links to local communities
- ICT/broadband links
- Renewable energy production
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An enterprise development programme
• Negotiated and agreed at EU, national and regional levels
• Jointly funded• With agreed governance• With a set of indicators for success• With external evaluation procedures• Subject to audit and repayment
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Approaches respond to local or regional initiatives
• With regard CIP, intermediary bodies apply for support, but must have some of their own resources
• With regard to research and some other programmes, enterprises and universities apply direct
• With regard to structural funds, these are delivered to enterprises following an agreed programme, but still need local project leaders
Entrepreneurship and competitiveness for SMEs
Dialogue between Brazil and the EU
Examples of initiatives Innovation Programme
• Smart Grid initiatives among Belgian, and French electricity distributors
• 12 Italian banks involved in loan guarantee schemes for SMEs
• Smart Home initiative in Germany• Creative Cluster in Barcelona
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Examples of initiativesStructural funds
Usually operate at a regional level• Steinbeis foundation – non profit making technology
transfer body in Germany working in cooperation with local government to develop clusters across member state borders
• University of Karlsruhe, Germany - The online course for female entrepreneurs
• University of Hassalt in Belgium developing a renewable energy incubator
• EUROCEI in Spain introducing marketing through social networks to the craft sector
• TRIESTE in Italy – incubator in science park