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 competitors Pressures on employment Social 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

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 Dialogue between Brazil and the EU EU Budget Distribution

Entrepreneurship and competitiveness for SMEs 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 Dialogue between Brazil and the EU 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 Dialogue between Brazil and the EU 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

Entrepreneurship and competitiveness for SMEs Dialogue between Brazil and the EU 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

Entrepreneurship and competitiveness for SMEs Dialogue between Brazil and the EU Governance of the two aspects Innovation EU sets framework conditions for member states Commission has its own initiatives, in which states and regions participate Enterprise EU sets framework conditions States carry out support actions with assistance through agreed programmes

Entrepreneurship and competitiveness for SMEs Dialogue between Brazil and the EU 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

Entrepreneurship and competitiveness for SMEs Dialogue between Brazil and the EU Innovation policy Competitiveness 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

Entrepreneurship and competitiveness for SMEs Dialogue between Brazil and the EU 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 Dialogue between Brazil and the EU 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

Entrepreneurship and competitiveness for SMEs Dialogue between Brazil and the EU 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 bodies Targeted at economic development Enterprises are a principal beneficiary

Entrepreneurship and competitiveness for SMEs Dialogue between Brazil and the EU Typical programme priorities Priority 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

Entrepreneurship and competitiveness for SMEs Dialogue between Brazil and the EU 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

Entrepreneurship and competitiveness for SMEs Dialogue between Brazil and the EU 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

Entrepreneurship and competitiveness for SMEs Dialogue between Brazil and the EU Examples of initiatives Structural 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