1. High-Employment-Growth Firms Determinants and policies
in Poland
Determinants and policies
Ministry of Regional Development - 19 September 2018

2. Ministry of Regional Development - 19 September 2018
Key points
High-growth firms in Poland
Local determinants – operation conditions, expectations, competitiveness and innovations
National and local policies
Policies vs. determinants
Ministry of Regional Development - 19 September 2018

3. High-growth firms in Poland
Statistical definitions:
firms which achieved average annual increase in the revenues of 20% or more in the period of 3 years (CSO)
enterprises with average annualised growth greater than 20% per annum, over a three year period  growth can be measured by the number of employees or by turnover (EUROSTAT)
% share in total number of firms
Source: own work based on CSO 2011
Definitions do not fully embrace the employment aspect and innovativeness
Too rigid to provide more detailed data or to analyse the determinants for their creation and operation
Ministry of Regional Development - 19 September 2018

4. Ministry of Regional Development - 19 September 2018
Local operation conditions for enterprises Encountered difficulties (enterprises functioning between )
Demand difficulties (% of enterprises)
DETERMINANTS
Supply difficulties (% of enterprises)
Factors to be influenced by local public policy
Source: own work based on: Creation and operation conditions, development prospects of Polish enterprises established in the years 2005–2009, CSO 2011
Ministry of Regional Development - 19 September 2018

5. Ministry of Regional Development - 19 September 2018
Companies’ expectations towards public policy Types of services which the companies need (survey)
DETERMINANTS
A study of services and clients of Consulting Centers, PARP, 2010
Ministry of Regional Development - 19 September 2018

6. Local determinants in PL Challenges to policy makers
Spatial variations in SMEs, entrepreneurship activity, business climates and business performance among 16 regions in PL (not to mention the local level)
Some factors not embedded in local context
Need to adjust local policies to diverse and varying needs
Finding the proper balance in national-regional-local delivery of entrepreneurship/ SMEs development policies
Urban-rural contrasts pertaining – rural area 90% of the country with 40% of population, 16% employed in agriculture
Crucial role of foreign direct investments at local level
DETERMINANTS
Ministry of Regional Development - 19 September 2018

7. Innovative enterprises – barriers or determinants
Economic
Insufficient own financial resources (industry: 31,8%; services: 24,1%)
Insufficient external financial resources (industry: 26,9%; services: 21,3%)
Innovation costs perceived as too high (industry: 34,2%; services: 27,4%)
Knowledge-related
Lack of qualified HR (industry: 14,6%; services: 13,2%)
Insufficient information on technology (industry: 12,4%; services: 12,3%)
Lack of information on the markets (industry: 11,8%; services: 11,4%)
Difficulties in finding partners for innovative cooperation (I: 16,7%; S: 14,5%)
Market-related
Market controlled by dominating companies (industry: 21,1%; services: 19%)
Unsure demand for innovative products (industry: 21,7%; services: 18,4%)
Other
Innovation implemented in previous years (industry: 14,4%; services: 14%)
Lack of demand on innovation (industry: 14,8%; services: 15,1%)
DETERMINANTS
Source: Innovation activities of enterprises, CSO, 2011
Ministry of Regional Development - 19 September 2018

8. Innovative and competitive enterprises Social determinants
Personnel policy and HR management in the company
Expectations from employees – stereotypes, attitudes
Organizational culture – flexicurity, pro-family policy, external expertise, talent and competence management
Leadership
Motivating for ideas and innovations
Attitudes - conditions, possibility to develop, remuneration, free flow of information, appreciation
Employees’ qualifications and skills – qualified managers, approach to training, (low) participation in E&T, empowerment
DETERMINANTS
CONCLUSION: significant part of these social determinants might be (and are) shaped by public policies – e.g. ESF measures
Social determinants of the innovative character of the enterprises, Pentor Reasearch Intl, 2008
Ministry of Regional Development - 19 September 2018

9. Innovative and competitive enterprises Employees’ qualifications
Competitive advantage on the local market and competences of employees (results of the survey)
DETERMINANTS
Education of employees and the competitive position of enterprises, PSDB, 2010
Ministry of Regional Development - 19 September 2018

10. Polycentric development model – policy approach
Polycentric urban framework – metropolies being the driving force of national, regional and local development
PL strategic approach to regional/ local development - defined in the National Strategy of Regional Development – ‘new paradigm of regional policy’
The best use of development potential (esp. endogenous) of the cities as sub-regional centres
Intervention accompanied by with measures consisting in the dissemination / diffusion of development process to the less developed centres and establishment of absorption potential
Establishing competitive advantage of less developed areas
NATIONAL AND LOCAL POLICIES
Ministry of Regional Development - 19 September 2018

11. National and local policies supporting HGF
Ministry of Regional Development - 19 September 2018

12. Challenges for national and local policies in PL
Effective coordination essential if policies are to be efficient in achieving given objectives and addressing the right target groups
Providing coordination mechanisms for:
National and regional OPs
KSU network
National and regional innovation policies
Loan funds and loan guarantee funds
Cluster policy
Social enterprises
Need for a more active role of business support institutions and a more coordinated partnership of public, private and third sector organisations supporting the enterprises (learning ecosystem)
NATIONAL AND LOCAL POLICIES
Source: Poland Key issues and policies, SMEs and entrepreneurship in PL, 2010, OECD
Ministry of Regional Development - 19 September 2018

13. Developing innovation potential and competitiveness
Determinants influenced at local level by instruments provided by national authorities financed by national or EU funds
NATIONAL AND LOCAL POLICIES
Ministry of Regional Development - 19 September 2018

14. POLICIES vs. DETERMINANTS
Local determinants The role of foreign capital and business environment in PL economy
PL regions and cities economically attractive, esp. in the period of economic slowdown and financial crisis
Poland indicated as top potential investment destination for FDI projects in Europe (2010 Ernst & Young European Attractiveness Survey)
Financial resources having crucial impact on companies’ growth – the main determinant and barrier in launching economic activity
Local authorities focussed on attracting and embedding foreign investments and supporting entrepreneurship
FDI perceived in local societies as the key to improving the situation of local labour markets and economic development
POLICIES vs. DETERMINANTS
Ministry of Regional Development - 19 September 2018

15. POLICIES vs. DETERMINANTS
Local determinants – case study The role of foreign capital and business environment in PL economy
Entrepreneurship
Distribution of foreign investments
POLICIES vs. DETERMINANTS
Economic growth
Ministry of Regional Development - 19 September 2018

16. Local determinants – case study The role of foreign capital and business environment in PL economy
Niepołomice – strategic approach to entrepreneurship
POLICIES vs. DETERMINANTS
Ministry of Regional Development - 19 September 2018

17. Niepołomice Investment Area (NIA) POLICIES vs. DETERMINANTS
Local determinants – case study High importance of foreign capital in PL economy - example
Niepołomice Investment Area (NIA)
NIA attracting the highest volume of foreign investments in PL and in Malopolska – 2,3% of all Polish investments in
USD 283 mio invested in , incl. USD 45,8 mio in
Investors: Coca-Cola, Woodward Governor, Kreisler, Staco, Silgan White Cap, Royal Canin, MAN, Nidec
Investors from the USA, Japan, Netherlands, Germany from different sectors
High impact of FDI on local economy - employment rate (45% increase in the no. of job places), unenployment (decreased by 19%) and local entrepreneurship (33% increase of the no. of enterprises)
POLICIES vs. DETERMINANTS
Ministry of Regional Development - 19 September 2018

18. Thank you for your attention!
Ministry of Regional Development Department for ESF Management
Ministry of Regional Development - 19 September 2018