regional policy european commission en jeremie and economic development based on innovation in...

Regional PolicyEUROPEAN COMMISSION

EN

JEREMIE and economic development JEREMIE and economic development

based on innovation in Poland? based on innovation in Poland?

Manfred Beschel Manfred Beschel Directorate General for Regional PolicyDirectorate General for Regional Policy

Brussels, 2 June 2008 Brussels, 2 June 2008


ENInnovation: Innovation:

Poland‘s situation in the EU-27Poland‘s situation in the EU-27

Source: European Innovation Scoreboard 2007


ENCatching-up in Poland

EBRD transition scores (4+ max)

Larg

e-sc

ale

priv

atis

atio

n

Sm

all-s

cale

pr

ivat

isat

ion

Gov

erna

nce

and

ente

rpris

e re

stru

ctur

ing

Pric

e lib

aral

isat

ion

Tra

de a

nd f

orei

gn

exch

ange

sys

tem

com

petit

ion

polic

y

bank

ing

refo

rm

and

inte

rest

rat

e lib

arlis

atio

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secu

ritie

s m

arke

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d no

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nk

finan

cial

in

stitu

tions

infr

astr

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Poland 3+ 4+ 4- 4+ 4+ 3+ 4- 4- 3+

NMS average 3+ 4+ 3 4+ 4+ 3 4- 3+ 3

Enterprises Markets and trade Financial institutions

Business environment: Performance of Poland in perspective


EN Market Failures in PolandMarket Failures in Poland

Under-developed business angels networks

Low R&D-GDP ratio, poor technology transfer record

Low VC activities compared to GDP and no early stage invest ments

Limited number of guarantee operations

Low ratio of SME domestic credit to GDP

Low provision of micro finance for self-employ ment and start-ups

Business Angels

Tech Transfer

Venture Capital

Guaran-tees

Bank Lending

Micro finance

654321

PROBLEMS


EN

Regional Policy and SMEsRegional Policy and SMEs

Traditionally support through grants;

Increasingly non-grant instruments are used loans guarantees equity tech-transfer mezzanine forms

These revolving instruments are more market oriented, contribute to business development without distorting competition and are embedded in the renewed Lisbon startegy


EN

Non-grant InstrumentsPublic funds for SMEs - recycled every few years - achieve an additional leverage private sector finance

Main forms - formal equity, - micro-credits, - revolving loan schemes, - mutual guarantees and - business angel networks (‘informal venture capital’).

Main purpose of public intervention: - address market failure - the reluctance of private sector institutions to provide finance to start-up and SMEs, especially where projects are seen as high risk.


EN

EU Funds in Poland 2007-2013EU Funds in Poland 2007-2013

65 952.9Total (without performance reserve)

67 284.2Total (with performance reserve)

516.7

731.1

2 273.8

8 254.9

9 707.2

27 913.6

16 555.6

Total EU allocation (m€)

Human Capital

Technical Assistance

European Territorial Cooperation

Development of Eastern Poland

Innovative Economy

Infrastructure and Environment

Regional Operational ProgrammesOperational Programmes


EN

Financial Engineering in Poland JEREMIE type of actions implemented at

three levels in Poland 2007-2013

• National level: OP Innovative Economy - National Capital Fund (KFK) - Allocation for KFK amounts to EUR 153 million (ERDF).

• OP Development of Eastern Poland

- Allocation EUR 5 million (ERDF) • Regional operational Programmes

- Letters of intend with the EIF signed by 5 regions: Wielkopolskie, Pomorskie, Zachodniopomorskie, Dolnoslaskie, Lodzkie- Allocations vary about 40-60 mln. EUR (ERDF)


EN

ConclusionsConclusions

Build on experiences from 2004-2006 (First support for Financial Instruments in SOP Improvement of the Competitiveness of Enterprises)

Time to act - use this chance

In view of further development and use of innovative Instruments, in 2014-2020

Chance for

- increase of in competitiveness of enterprises and - economic development in general


EN

Thank you for your attention !

For further information

http://europa.eu.int/comm/regional_policy/index_en.htm

regional policy european commission en jeremie and economic development based on innovation in...

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