Regions rewarded for helping SMEs There are 16 million companies in Europe, ranging in size from 'one-man-bands' to huge multinational conglomerates - SMEs represent over 90% of these firms. Clearly, much of Europe's future prosperity and employment lies in the hands of these smaller companies. An EU pilot ini... There are 16 million companies in Europe, ranging in size from 'one-man-bands' to huge multinational conglomerates - SMEs represent over 90% of these firms. Clearly, much of Europe's future prosperity and employment lies in the hands of these smaller companies. An EU pilot initiative is identifying those regions offering innovative SMEs the best environment to ensure success, and is encouraging the exchange of ideas and information, which could help other regions to emulate their achievements . Background The European Commission's Enterprise DG (Innovation Policy unit) has launched a 24-month pilot initiative, under its Innovation and SMEs Programme, to identify and reward regions which provide the best environment for the successful launch and growth of innovative SMEs. Such firms are crucial to Europe's future growth, prosperity and employment. At the same time, they contribute to the development and welfare of the regions in which they are situated. Actions taken to encourage regions to take the necessary steps required to engender an SME-friendly environment will bring future benefits, both to the regions and to the EU as a whole. The initiative comes under the umbrella of `The First Innovation Action Plan for Europe'. Between 1996 and 1998, three conferences were organised in Paris, Luxembourg and Vienna, which were attended by leading `innovation actors', including academics, regional authorities and entrepreneurs, and by the end of the third conference, there was particular consensus on implementing a Pilot Action. The European Commission was called on to act as co-ordinator, highlighting examples of good practice and fostering the adoption of mechanisms and new approaches to promote the success of innovative firms. The aim was not to create the companies themselves which - in compliance with the principal of subsidiarity - is viewed as a national and regional responsibility. Rather, it was to bring together the relevant bodies and to facilitate efficient communication, co-operation and exchange of ideas and experience. Description, impact and results The Pilot Action approaches the relevant issues from three distinct standpoints. The first covers the more political aspects. Here, the aim is to create a `showcase' of regional excellence, `displaying' those regions which have created the necessary conditions for the creation and continuing success of innovative companies. This elite grouping currently has over 20 members selected using, among other criteria, a series of 24 indicators developed on the basis of information supplied by the European Statistical Office (Eurostat). These indicators include gross domestic product, levels of R&D budgets and personnel, the number of scientific publications, and education spending. Availability of local infrastructure is also a factor. Acting as a facilitator, the Commission is ensuring the efficient networking of these regions. The second line of action concerns individual projects. Quite often within development projects, regional organisations - from throughout Europe rather than just the centres of excellence - develop novel strategies to encourage the creation of start-up or spin-off companies. The Commission is identifying and disseminating these new ideas. Finally, the Pilot Action contains a series of accompanying measures designed to support the network of excellence. These tasks include organising promotional events - notably an annual forum of innovative companies - creating a website, and arranging an `Innovation Policy Interface'. This interface, which is co-ordinated with other relevant EU policies, is designed to maximise the lessons to be learned from the network and individual projects by means of a series of expert panels, visiting schemes, workshops and benchmarking exercises. The number of proposals received as a result of the call launched on June 15 has largely exceeded expectations. Working partnerships The prime partners in the initiative are representatives appointed by regional administrations. In most cases the network involves regional development organisations, although some consultancies also participate. At individual project level, universities predominate, with financial organisations and independent research institutions also playing their parts. As the Action progresses, the co-ordinators at Enterprise DG (Innovation Policy unit), expect to develop more partnerships with other regions in the EU.
