Best Practices � Competence Centres

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					                                                           WITH THE FINANCIAL
                                                             SUPPORT OF THE
                                                            EUROPEAN UNION




                       SME Policy Index 2012


        Update for the South East Europe Investment Committee




RCC Headquarters
Sarajevo, Bosnia and Herzegovina
25 April 2012
Introduction: new features of the SME Policy Index 2012

   • Third regional assessment of SME policy across the Western
     Balkans after 2007 and 2009;

   • Addition of Turkey to the group of assessed economies;

   • Transfer to the European Small Business Act from the
     European Charter for Small Enterprises and elaboration of a
     new assessment grid;

   • Company survey to better gauge the implementation of
     policy areas.

    WITH THE FINANCIAL SUPPORT
     OF THE EUROPEAN UNION
                              Objectives of the Framework

• To measure Enterprise Policy Development using the European Small
  Business Act framework, on the basis of inputs from government,
  private sector and SME policy experts;

• To allow a comparative independent evaluation of progress on policy
  implementation on the same set of policy dimensions included in the
  Small Business Act, across the SEE countries and with reference to
  good practices;

• To support SEE countries in setting targets on SME Policy
  Development that are measurable, comparable, relevant and
  consistent with the Small Business Act policy framework;

• To promote exchange of experiences and cross country policy
  evaluation among the SEE countries and the donor countries.
 WITH THE FINANCIAL SUPPORT
  OF THE EUROPEAN UNION
                                                        Approach

                   The SME Policy Index Methodology
   SME Policy Index Dimensions – The ten Policy
               Principles of the SBA

1. Create an environment in which entrepreneurs and
   family businesses can thrive and entrepreneurship
   is rewarded
2. Ensure that honest entrepreneurs who have faced
   bankruptcy quickly get a second chance
3. Design rules according to the “Think Small First”
   principle
4. Make public administrations responsive to SMEs’
   needs
5. Adapt public policy tools to SME needs: facilitate
   SMEs’ participation in public procurement and
   better use State Aid possibilities for SMEs
6. Facilitate SMEs’ access to finance and develop a
   legal and business environment supportive to
   timely payments in commercial transactions
7. Help SMEs to benefit more from the opportunities
   offered by the Single Market
8. Promote the upgrading of skills in SMEs and all
   forms of innovation
9. Enable SMEs to turn environmental challenges into
   opportunities
10.Encourage and support SMEs to benefit from the
   growth of markets
                                                                                                                          Process

   The SME Policy Index EvaluationaProcess
    Gathering information for evaluation will follow specific process


                                •   Desk Research
 OECD/EC/ETF                    •   Local Consultant Research: interviews with local experts, input from private sector
  Evaluation                        organisations.
                                •   Entrepreneur and Private Sector Perceptions - focus groups and surveys.




Government Self-                •   Governments perform self-evaluations.
   evaluation                   •   Set priorities for the next period.




                                •   Government, EC, OECD, ETF, experts, private sector and SME representatives conduct
                                    policy dialogue based on the OECD/EC/ETF evaluation, government self-evaluation and list
Bilateral Meetings                  of priorities.
                                •   Finalisation of list of priorities.




        Final                   •   Synthesis of all inputs and Regional Report launching

   WITH THE FINANCIAL SUPPORT
    OF THE EUROPEAN UNION
                                                     Overall results
• Incremental progress throughout the region in areas, which recorded
  good progress in 2009 (e.g. Regulatory Reform, Company Registration)

• Regression due to financial crisis (Access to Finance) and due to
  restructuring of government bodies and agencies (Institutional
  Framework)

• Top performers: Turkey, Croatia, and Serbia

• Intermediary level of policy development: Albania, FYR Macedonia, and
  Montenegro

• Policy framework still in development phase: Bosnia and Herzegovina
  and Kosovo*

• Most overall progress achieved since 2009: Serbia
     WITH THE FINANCIAL SUPPORT   *This designation is without prejudice to positions on status, and is in line with UNSCR 1244 and the ICJ
      OF THE EUROPEAN UNION
                                  Opinion on the Kosovo declaration of independence
              SBA Principle 3 “Think Small First” (2)
                                             Sub-dimension:
                                        Institutional Framework
5




4




3




2




1




0
    ALB                     BIH   HRV        KOS        MKD       MNE   SRB   TUR
    WITH THE FINANCIAL SUPPORT
     OF THE EUROPEAN UNION
          SBA Principle 3 “Think Small First” (3)

Institutional Framework – main findings
-     Overall the institutional structure is comparatively well established in the
      region. Turkey, Croatia and Serbia scored particularly high.

-     SME definition is consistent in legislation and employment size complies with
      EU SME definition in Croatia, Turkey, FYR Macedonia and Albania.

-     SME policy making body and executive agency most advanced in Turkey
      (KOSGEB) and Serbia (NARD); Albania’s new SME agency (AIDA) replaced
      AlbInvest in 2011. BIH has yet to strengthen the capacity of the state agencies
      and improve coordination between the entities.

-     Implementation of the SME development strategy with clear targets and
      budget allocation in Turkey, Serbia, Croatia and Montenegro.

-     Measures to tackle the informal economy have been best implemented by
      Albania and Croatia.
WITH THE FINANCIAL SUPPORT
 OF THE EUROPEAN UNION
                             Next Steps


• Finalisation of first draft of SME Policy index
  2012: April

• Internal and External Review Process: May –
  June

• Preparation for publication: June – September

• Publication and launch at EU SME Week:
  October
WITH THE FINANCIAL SUPPORT
 OF THE EUROPEAN UNION
                                                                    WITH THE FINANCIAL
                                                                      SUPPORT OF THE
                                                                     EUROPEAN UNION




              Western Balkans Regional Competitiveness Initiative



        Update for the South East Europe Investment Committee




RCC Headquarters
Sarajevo, Bosnia and Herzegovina
25 April 2012
Western Balkans Regional Competitiveness Initiative

Objectives

•Support medium and long-term competitiveness
•Provide capacity building support via pilot projects
•Transfer lessons learned through regional working groups

Focus Areas
                                            Greater time and staff commitment

• Human capital development – address major skills gaps
• Innovation – Strengthen innovative capacities of the private sector

Duration: 2010-2013

Beneficiaries: Seven Western Balkan economies



   WITH THE FINANCIAL SUPPORT
    OF THE EUROPEAN UNION                                                       11
                             RCI Timeline
           2010                    2011                  2012
Experts’ workshop            Pilot projects in:   Pilot projects in:
on innovation and
human capital                •Bosnia and          •Albania
issues                       Herzegovina          •Croatia
                             •FYR Macedonia       •Kosovo*
Best practice papers         •Montenegro
on innovation                •Serbia              Working Group on
policies and skills                               Human Capital
                                                  Greater time and staff commitment
gaps                         Working Groups on
                             Innovation and       Working Group on
Review of domestic           Human Capital        Innovation
and donor actions
                             2 Roundtables for    3rd RCI Steering
5 Roundtables for            project selection    Committee
project selection
                             2nd RCI Steering
1st RCI Steering             Committee            * This designation is without prejudice
                                                  to positions on status, and is in line
Committee                                         with UNSCR 1244 and the ICJ Opinion
                                                  on the Kosovo Declaration of
WITH THE FINANCIAL SUPPORT
 OF THE EUROPEAN UNION                            Independence                              12
                            Impact of 2011 Pilot projects
 Montenegro                                             Serbia
Voucher schemes for SMEs                               Design of a Competence Technology Centre
Improved understanding of benefits and limitations     Improved understanding of models and operations
of a voucher scheme                                    of Competence Centres and Technology Centres
Understanding of innovative activities of MNE firms    Assessment of business and research needs in agro-
Scheme designed according to company needs             food sector and biomedicine sector
Government committed funds to implement pilot          Use of focus groups to supplement surveys and
scale voucher scheme                                   obtain clearer picture of how businesses and
                                                       researchers could collaborate under a CTC
  Bosnia and Herzegovina                                FYR Macedonia
‘Triple Helix’ partnerships between science,
                                                       Development of a national innovation policy
business and local government in agri-food
                                                       National innovation system review identified
sector
                                                       strengths and weaknesses
Established Triple Helix network of 250 participants
                                                       Survey and focus groups to understand company
Best practice from OECD and transition countries       needs
Study trip in Flanders to get first hand experience    Innovation forum organised to involve wide
Generated 24 proposals from BiH consortia              stakeholder base
Implementing three projects: « Omega » egg;            Strategy drafted for 2013-2020
refining of field peas and development of an organic   Action Plan drafted for 2013-2015, with the
disinfectant; FINANCIAL SUPPORT
         WITH THE
                                                       appropriate evaluation and monitoring13tool
          OF THE EUROPEAN UNION
“Omega” egg being launched in the market               Innovation is part of Government Programme
 Impact of 2011 Pilot projects – Stimulating social dialogue between
              government, industry , and researchers
 Montenegro                          Serbia
Voucher schemes for SMEs
 Over 150 businesses participated in a       Design of a Competence Technology Centre
 survey to assess SME innovation needs.
 Launch event in Nov 2012 brought            Over 300 businesses and researchers in agro-
 together over 60 representatives from       food and biomedicine contributed to surveys
 government, business, and academia.         and focus group meetings.

 Bosnia and Herzegovina                     FYR Macedonia
‘Triple Helix’ partnerships                 National innovation policy

 Over 350 businesses and researchers        Over 500 firms and researchers participated in
 participated in surveys, workshops and     surveys and focus groups to develop an
 seminars organised as part of the triple   innovation strategy.
 helix project.
                                            An innovation forum was organised which
 24 consortia formed which submitted        brought together over 100 representatives of
 proposals for innovation partnerships;     government, business and research.
 three of those have been helped during
 implementation and many more continue
        WITH THE FINANCIAL SUPPORT
         OF THE EUROPEAN UNION                                                14
 implementation in parallel
                                   2012 Pilot projects
  Albania - Business plan competition
   •   Support for young enterprises and start-ups
   •   Improve capability of entrepreneurs to develop business ideas
   •   Improve investment readiness of entrepreneurs

  Croatia - Innovation strategy
  •    Full OECD Review of innovation policy executed in parallel
  •    Surveys of businesses and research institutions
  •    Methods to measure innovation performance
  •    Development of a whole-of-government strategy
   Kosovo* - Innovation strategy
  •    Assessment of innovation system
  •    Surveys of businesses and research institutions
  •    Development of a whole-of-government strategy

*This designation is without prejudice to positions on status, and is in line with UNSCR 1244
          THE Opinion
and theOFICJEUROPEAN SUPPORTon the Kosovo declaration of independence
      WITH THE FINANCIAL
                         UNION                                                                15
                                 RCI Working Groups
Working Group on Human Capital Development
•     Spilt, Croatia (8 June 2011) and OECD headquarters (20-21 March 2012)
•     First meeting reviewed sector specific and horizontal approaches to close skills
      gaps
•     Second meeting was a training event which raised awareness on how to conduct
      skills gap analysis, skills planning using foresight techniques, and policy
      responses. The group discussed what capacities are needed to implement skills
      gap analysis, and reviewed data requirements
•     Follow up meeting in autumn 2012 will review whether capacities are in place
      for a skills gaps analysis across the Western Balkans.

Working Group on Innovation
•    Split, Croatia (9 June 2011)
•    Lessons learned with implementation of pilot projects.
•    Discussed elements to be included in SEE 2020 Vision
•    Next meeting planned for 21-22 June 2012 at OECD headquarters

    WITH THE FINANCIAL SUPPORT
     OF THE EUROPEAN UNION                                                      16
From RCI to the Next Generation Competitiveness Project
How will the results of RCI be used to advance the NGC Project?

RCI Steering Committee to be used as the Steering Committee for NGC . A
consensus emerged on this point at the last RCI Steering Committee meeting on 13
December 2012 in Sarajevo at the RCC.

Structure of RCI Working Groups on Innovation and Human Capital Development
will be used to develop the industry specific working groups.

Methodology for pilot projects in RCI (e.g., mixed teams of beneficiary
representatives and OECD officials) will be used to implement pilot projects in NGC.

RCI revealed interest for industry specific work in the agro-food sector (pilot
projects in Bosnia and Herzegovina and Serbia). Other sectors could include textile
production, wood processing, ICT, automotive, energy, or services like tourism.

NGC could try to implement some of the projects from RCI in a cross-border fashion
in one specific industry. For example, regional triple helix partnerships between
multiple beneficiaries or regional competence centres in specific sectors.
    WITH THE FINANCIAL SUPPORT
     OF THE EUROPEAN UNION                                                       17
                                      Thank you for your attention

                                                Jakob Fexer
                                               Policy Analyst

                                               Milan Konopek
                             Project Manager - Regional Competitiveness Initiative


                      OECD Investment Compact for South East Europe
                             Private Sector Development Division
              Organisation for Economic Co-operation and Development (OECD)
                                          Milan.konopek@oecd.org
                                        www.investmentcompact.org


WITH THE FINANCIAL SUPPORT
 OF THE EUROPEAN UNION

				
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