1. Gilbert Nicolaon Ancona June 19, 2008
The World Bank Knowledge Economy Forum VII Plenary session VII Nurturing Partnerships between SMEs & Technology Transfer Institutions
Gilbert Nicolaon
Ancona
June 19, 2008

2. Industry in Europe Large Multinational groups SMEs
Medium Size Entreprises
Small Entreprises
Based on size (Nb. Of Employees)

3. Firms’ « Internal » expertise
Large
Medium
High T. S.E
Trad. S.E.
Technical Y
Economical
Financial ?
Legal N
I.P.R.
Internat.

4. Industry in Europe Multinational : a few hundred
Medium Size E. : a few thousand
High Tech SEs : a few thousand
Traditional SEs : several hundred thousand
(+ Recently, Services sector SMEs)
TRADITIONAL SECTOR S.E.s OFFER A VERY LARGE POTENTIAL, USUALLY UNDERESTIMATED

5. SMEs COMPETITIVENESS IS ESSENTIAL
SMEs in Europe
In most country SMEs(*) represent :
More than 50% of GNP
More than 50% of industrial employment
In recent years :
Employement by large groups decreased
Employement by SMEs increased
SMEs COMPETITIVENESS IS ESSENTIAL
FOR EVERY NATIONAL ECONOMY
(*) Including commercial SMEs

6. The diversity of S.E.s S.E.s : extremely diversified
Size
Industrial sector
Market
Technological level
International experience
There is no such thing as a « typical » S.E.
industrial S.E.s in Europe : Not 2 are alike

7. SEs’ challenge BUT… In order to stay competitive S.E.s must :
Innovate
Absorb technology
BUT…
….They usually do not have « internally » all the needed expertise

8. A « UNIVERSAL » CHALLENGE
A gap between Research and Economy
Limited impact of R&D on competitiveness
Limited cooperation between RDI and SMEs
A challenge all over the world
Most countries support R&D
Gvts. expect to get R.O.I. from their R&D spending
A UNIVERSAL CHALLENGE ALL OVER THE WORLD

9. A « DOUBLE » CHALLENGE
Res. Scientists are not motivated to work with S.E.
S.E. are not motivated to work with « academic » scientists
STRONG INCENTIVES ARE NEEDED

10. Push or Pull ?

11. (Technology absorption)
Push or Pull ?
Market Pull
(Technology absorption)
From market needs to the lab
AND Back to market
Need identified by industry
Limiting step :
Identifying the customer
Identifying the need
BOTTOM UP
Technology Push
From the Lab to the market
Idea of a scientist
Limiting step : selling the idea (and the project) to industry
TOP DOWN

12. Push or Pull ? Technology Push
Give more « fancy » results but it will take more time and it is very risky
Market pull (Technology absorption)
Give less « exotic » results but
much more frequent + a higher success rate

13. Market pull offers a potential usually underestimated
Push or Pull ?
SUCCESS RATE :
Technology push :
Low (a few %)
Market Pull
High (50%, with some experience)
Market pull offers a potential
usually underestimated

14. A Challenge !!! RDIs think almost exclusively…. « TECHNOLOGY PUSH »
S.E.T.S(*) are more interested by
«  MARKET PULL »
(*)S.E.T.S. : Traditional Sectors Small Entreprises

15. A 3 Partners cooperation
Technological Institutes (RDIs)
Provide the appropriate technology services
S.E.s
Identify the market needs
Manage innovative projects
The Government (Ministries, agencies ..)
Stimulate the process to boost the economy
Provide incentives (for Scientists and for Industry)
Provide assistance
Often provide some funding

16. Targeting SEs The main issue is to :
Identify potentially interested S.E.s
AND
« Sell » them technology services

17. Targeting S.E. Conferences, seminars… Commercial fairs
Brokerage events
Existing networks
Regional networks (Chambers of commerce)
National networks (Innovation agencies)
European networks
E.U. « networking » activity (ERA-NET)
V.C. forums
Private consultants
Data Banks ? ……

18. Targeting S.E. Communication towards S.E.s BUT :
The most efficient way to communicate is not to present what an RDI can do
BUT :
To ask the manager of an S.E. who has had a successful partnership with an RDI to testify in front of other S.E.s managers

19. The « next » step Building up mutual respect It takes some time
Personal contacts
Usually the first cooperation are « modest »
At that stage Gvts. Support is needed

20. S.E.s –RDI cooperation Numerous way to cooperate R&D contracts
Consulting
Technology « diagnostic » ……
Licensing

21. The role of Governments: Public-Private Partnerships

22. Governmental programs
Many programs to support SMEs:
National
Regional
International
One common goal : to bring assistance to SMEs to improve their competitiveness

23. Governmental programs
To strengthen SMEs competitiveness
Assistance for:
Identifying partners
Preparing a Business Plan
IPR and legal matters
To provide some public funding
Financial support for project preparation
Matchning grants
Soft loans

24. A few National Programs
United States : SBA
Europe :
Finland : TEKES
France : Oséo-Innovation
The Netherlands : Senter
Spain : CDTI
…..
+ Numerous Regional programs
Ex. Flanders

25. International Programs
World Bank projects on Tech. Dvp.
Far East (India, Korea…)
Latin America (Mexico…)
Eastern and Central Europe (Croatia, Ukraine…)
European Union Framework Program
Research for the benefit of SMEs
Other European programs
Eureka initiative
Intergovernmental (Mkt. Oriented, nationally funded)
European Space Agency
Technology Transfer program

26. E.U. programs for SMEs Research for SMEs (former CRAFT)
Coordination of SMEs RTD co-operation
ERA-NET
Eurostar
SMEs participation to RTD projects +
Various supporting actions
Network of National Contact Points
Coordination and support actions

27. The role of Governments
To create a favourable environment
Fiscal laws
Patent laws
Encourage mobility
R&D funding allocation

28. The role of Governments
To provide infrastructures
Incubators
Technology parks
To provide assistance
Financial
Legal
Economical

29. The role of Governments
Incentives, Incentives Incentives….
Incentives for SEs
Incentives for Scientists

30. The role of Governments
A stable legal framework over a long time
A rigorous monitoring process
To follow progress
To learn (from failures)

31. To conclude

32. To conclude BUT BUT : ? The question is not : can they do it ?
A fascinating topic
A large potential for SEs-RDIs cooperation
Mutually potentially very profitable
BUT
Which faces some « misunderstandings »
? The question is not : can they do it ?
BUT :
Do they want to do it ? ? ? ?

33. will gain a major competitive advantage
To conclude
A « tough » challenge
BUT : A major tool for development
Countries, or Regions,
which will succeed
will gain a major competitive advantage

34. Thank you for your attention
Gilbert Nicolaon