support to smes increasing research and innovation in smes ...€¦ · comp competitiveness and...
TRANSCRIPT
Support to SMEs ndash Increasing
Research and Innovation in SMEs and
SME Development
Second Intermediate Report
Work Package 2
Ex post evaluation of Cohesion Policy programmes
2007-2013 focusing on the European Regional
Development Fund (ERDF) and the Cohesion Fund (CF)
Contract 2014CE16BAT002
17 September 2015
Submitted by
CSIL in partnership with CSES and ZEW
EUROPEAN COMMISSION
Directorate-General for Regional and Urban Policy Directorate B - Policy
Unit B2 Evaluation and European Semester
Contact Marielle Richeacute
E-mail REGIO-EVALeceuropaeu
European Commission
B-1049 Brussels
3
Second Intermediate Report
September ndash 2015
4
This report is part of a study carried out by a Team selected by the Evaluation Unit DG
Regional and Urban Policy European Commission through a call for tenders by open
procedure No 2014CE16BAT002
The consortium selected comprises CSIL ndash Centre for Industrial Studies (lead partner
Italy) CSES ndash Centre for Strategy amp Evaluation Services (UK) and ZEW ndash Centre for
European Economic Research (Germany)
Subcontracting companies are CASE ndash Center for Social and Economic Research
(Poland) INFYDE ndash Informatioacuten y Desarrollo SL (Spain) Visionary Analytics (Lithuania)
and WIFO ndash OumlsterreichischesInstitutfuumlrWirtschaftsforschung (Austria)
The Core Team comprises
Scientific Director Massimo Florio CSIL and University of Milan
Project Manager Julie Pellegrin CSIL
Advisory Committee Brad Graeme Philip Astbury (University of Melbourne) Harvey Armstrong (University of Sheffield) David Audretsch (Indiana University) Mateja Dermastia (Anteja ECG) and Robert Picciotto (Kings College)
Senior experts Laura Delponte (CSIL) Georg Licht (ZEW) James Rampton (CSES) and Davide Sartori (CSIL)
Task managers Silvia Vignetti (CSIL) Mike Coye (CSES) Emanuela Sirtori (CSIL) Mark Whittle (CSES) Julie Pellegrin (CSIL)
Statistical Experts Donatella Cheri (CSIL) Stefania Pelizzari (CSIL) and Silvia Salini (CSIL and University of Milan)
Junior Experts Chiara Pancotti (CSIL)
Quality manager Paola Govoni (CSIL)
A network of Country Experts provides the geographical coverage for the field analysis Viktor Kveton (CZ) Anna-Maria Krarup (DK) Mike Coyne (DK) Christian Kohler (DE) Silke Haarich (ES) Julie Pellegrin (FR) Silvia Vignetti (IT) Simonas Gausas (LT) Agnė Paliokaitė (LT) Elena Jarocinka (PL) Jan Teresiński (PL) The authors express their gratitude to the stakeholders who agreed to provide data and information The authors are also grateful for the very helpful insights from the EC staff and particularly to Veronica Gaffey Marielle Richeacute Daniel Mouqueacute and Kai Stryczynski and other members of the Steering Group The authors are responsible for any remaining errors or omissions
Quotation is authorised as long as the source is acknowledged along with the fact that
the results are provisional
5
Second Intermediate Report
TABLE OF CONTENTS
LIST OF ABBREVIATIONS 6
FOREWORD 7
1 OVERVIEW OF THE SELECTED OPERATIONAL PROGRAMMES 8
2 RESULTS OF THE SEMINAR 16
21 Targeting high vs low tech firms 16
22 Promoting widespread vs selective instruments 16
23 ERDF and the regional policy mix 17
24 Synthesis 17
3 NEXT STEP THEORY-BASED IMPACT EVALUATIONS 22
4 ANNEX SEMINAR PARTICIPANTS 27
6
LIST OF ABBREVIATIONS
BERD Business Expenditure in Research and Development
CONV Convergence (Cohesion Policy objective)
COMP Competitiveness and Employment (Cohesion Policy objective)
CZ Czech Republic
DE Germany
DG REGIO Directorate-General for Regional and Urban Policy
DK Denmark
EC European Commission
ERDF European Regional Development Fund
ES Spain
EU European Union
EUR Euro
FDI Foreign Direct Investment
FR France
GDP Gross Domestic Product
GERD Gross Expenditure in Research and Development
GVA Gross Value Added
ICT Information and Communication Technology
IT Italy
LT Lithuania
M EUR Million Euro
MA Managing Authority
MS Member State
MULTIREG Multiregional
NACE Nomenclature statistique des activiteacutes eacuteconomiques (Statistical
classification for economic activities)
NAT National
NUTS Nomenclature of territorial units for statistics
OP Operational Programme
PL Poland
RampD Research and Development
RampTD Research and technological development
REG Regional
RTDI Research technological development and innovation
SF Structural Fund
SME Small and medium enterprise
TBIE Theory-based impact evaluation
ToR Terms of Reference
WP Work package
7
FOREWORD
This is the Second Intermediate Report of the ex-post evaluation of Support to Small and
Medium Enterprises (SMEs) ndash Increasing Research and Innovation in SMEs and SME
development The objective of the evaluation is to assess the effectiveness and the impact of
the European Regional Development Fund (ERDF) with regards to support for innovation and
the development of SMEs in the European Union over the 2007-2013 programming period
This report presents the results of Tasks 3 and 5 ie the eight case studies in selected
regions and the stakeholder seminar organised in Brussels the 29th of April 2015 to discuss
the findings from the different tasks and especially from the case studies The volume at hand
contains an overview of the eight selected case studies as well as an overview of the
organisation and results of the seminar while the eight case studies form separate self-
standing reports
8
1 OVERVIEW OF THE SELECTED OPERATIONAL PROGRAMMES
This Chapter provides an introductory overview of Operational Programmes (OPs) supporting
the growth and innovation processes of Small and Medium Enterprises (SMEs) which are
subject of the case studies included and discussed in this report
The Terms of Reference indicate a list of 50 Operational Programmes co-financed in the period
2007-2013 by the European Regional Development Fund (ERDF) in 23 EU Member States All
50 OPs and policy instruments targeted to SMEs included therein have been examined The
results of this preliminary analysis are included in the First Intermediate Report From the full
list of 50 OPs the evaluation team has selected 8 OPs for a more in-depth analysis which are
1 Italy ndash Apulia (2007IT161PO010) carried out as a pilot case study
2 France ndash Icircle-de-France (2007FR162PO012)
3 Germany ndash Sachsen (2007DE161PO004)
4 Denmark - Innovation and Knowledge (2007DK162PO001)
5 Spain ndash Castilla y Leoacuten (2007ES162PO009)
6 Czech Republic ndash Business and Innovation (2007CZ161PO004)
7 Poland ndash Innovative Economy (2007PL161PO001)
8 Lithuania ndash Economic Growth (2007LT161PO002)
These OPs have been selected in order to fulfil the following conditions
to ensure a balance between regional and national cases
to ensure a balance between Convergence and regional Competitiveness objectives
also between EU 12 and EU 15
to include territories with different SME typologies
to account for strategies based on different mixes of policy instruments
the presence of a collaborative Managing Authority in order to ease data collection
The result of the selection is a list of Programmes which constitute a purposeful set that
assures the greatest representativeness in terms of socio-economic context and regional
strategy and offers the opportunity to discover relevant lessons on mechanisms concerning
SME support
9
Figure 1 Map of OPs selected for in-depth study
Denmark ndash Innovation
and knowledge
(2007DK162PO001)
Germany ndash Saxony
(2007DE161PO004)
France ndash Icircle-de-France
(2007FR162PO012)
Spain ndash Castilla y Leoacuten
(2007ES162PO009)
Italy ndash Apulia
(2007IT161PO010)
Lithuania ndash Economic
Growth
(2007LT161PO002)
Czech Republic ndash
Business and Innovation
(2007CZ161PO004)
Poland ndash Innovative
Economy
(2007PL161PO001)
Source CSIL
These eight OPs have been evaluated in order to enrich the preliminary hypotheses derived in
Task 1 on the mix of policy instruments adopted to promote SME growth and innovation across
the EU and on their outcomes The diversity of OPs included in the sample allows to account
for different regional and national specificities thus bringing context variables more forcefully
into the picture
In particular the selection of OPs both at regional (such as Apulia or Saxony the former at
NUTS 2 level the latter at NUTS 1 level) and national level (such as the Polish or Danish
programme) in eight different countries allows providing a panorama of different institutional
context features and regional innovation systems in place which can play an important role on
the delivery mechanisms of support along with their effectiveness The analysis encompasses
areas which have been touched to a different extent by the economic recession and which
belong to different Cohesion Policy objectives which is likely to affect their capacity to react to
the crisis and overcome structural barriers hindering SME development and innovativeness
The number of SMEs based in the areas targeted by the OPs range from nearly two hundred
thousand as in Saxony or in small countries such as Denmark and Lithuania to almost or
more than 1 million as in the Czech Republic and Poland This variance is reflected in the
volume of ERDF contribution dedicated to SMEs which is highest in Poland and Czech Republic
However the sample includes also an example of OP which dedicates a relatively limited
amount of ERDF to SMEs in spite of the large number of SMEs in the region it is the OP of Icircle-
de-France
10
Table 1 Eight Operational Programmes observed
OP
Cohesion
Policy
objective
EU 12
(ldquoNewrdquo
Member
States) or
EU15 (ldquoOld
Member
States)
NUTS level
Volume of EU
contribution for WP2
themes (EUR
million)
of EU contribution
for WP2 themes over
total contrib for
the OP
Total
population
of the area
covered by
the OP
GDP (PPS)
per capita
(average
2007-2011)
(EUR)
Total
number of
SMEs ()
Total
intramural
expenditure
in RampD
(GERD) ndash
2007-2011
average
Business
expenditure
in RampD
(BERD) ndash
2007-2011
average
1 Italy ndash Apulia Convergence EU15 NUTS 2 region
645 25 4 million 16640 218 thousand
(in 2011)
075 of
GDP
017 of
GDP
2 France ndash Icircle-
de-France
Competitiveness
and Employment EU15
NUTS 2
region 60 42 118 million 43360
727 thousand
(in 2011)
298 of
GDP
198 of
GDP
3 Germany -
Saxony Convergence EU15
NUTS 2
region 846 29 42 million 21040
140 thousand
(in 2012)
277 of
GDP
131 of
GDP
4 Denmark - Innovation and
knowledge
Competitiveness and Employment
EU15 NUTS 0 country
203
82
55 million 30660 213 thousand
(in 2013)
274 of
GDP
187 of
GDP
5 Spain ndash Castilla
y Leoacuten
Competitiveness
and Employment EU15
NUTS 2
region 269 36 255 million 23860
131 thousand
(in 2013)
109 of
GDP
061 of
GDP
6 Czech Republic - Business and
Innovation
Convergence EU12
NUTS 0
(except capital city
region)
2282 73 105 million 16960 928 thousand
(in 2013)
112 of
GDP
078 of
GDP
7 Poland - Innovative
Economy
Convergence EU12 NUTS 0 country
5287 62 38 million 14740 15 million (in
2013)
066 of
GDP
020 of
GDP
8 Lithuania -
Economic
Growth
Convergence EU12 NUTS 0
country 760 25 3 million 15440
115 thousand
(in 2013)
085 of
GDP
024 of
GDP
Source Eurostat and EC Performance Review 2014
Note () CSIL elaboration of National Statistical Office data (NACE sectors B-N excl K)
11
As shown in Table 1 the heterogeneity of areas covered by the case studies can be highlighted
also if considering the total intramural RampD expenditure or business RampD expenditure
According to the Global Innovation Index 2014 (Cornell University INSEAD and WIPO 2014)1
which combines innovation input measures and output measures the EU areas of the sample
cover a wide range or ranking categories (see Table 2 below)
Table 2 Global Innovation Index ranking ndash 2014
Global Innovation Index 2014 ranking
Top 10 11-20 21-30 31-40 40-60
UK Ireland Austria Cyprus Croatia
Sweden Germany France Italy Bulgaria
Finland Belgium Portugal Poland
Netherlands Estonia Latvia Greece
Denmark Malta Hungary Romania
Luxembourg Czech Republic
Slovakia
Spain Lithuania
Slovenia
Note The eight case studies are indicated by the asterisks
Source CSIL based on Cornell University INSEAD and WIPO (2014)
A more focused picture can be obtained using data from the Innovation Union Scoreboard
2012 covering the years 2007 ndash 2011 which ranks not only Member States but also regions in
terms of their performance against a set of indicators of innovation2 Specifically it places
countries and regions in four categories distinguishing between lsquoleadersrsquo lsquofollowersrsquo those
with a moderate lsquoperformancersquo and those lsquocatching-uprsquo Table 3 shows the position attributed
by the Scoreboard to the target area that have been examined in case studies
Table 3 Innovation Scoreboard Attribution
Leader Follower Moderate Modest
Catching-up
Denmark
Icircle-de-France
Saxony
Castile amp Leoacuten
Czech Republic
Poland
Apulia
Lithuania
Source European Innovation Scoreboard 2007 amp Regional Innovation Scoreboard 2012 Note Convergence region
Other regions Competitiveness amp Employment
According to the analysis of the SME-related policy instruments performed as part of Task 1
the eight OPs account for different intervention strategies as reflected in the mix of policy
instruments implemented (Figure 2) and the mode of delivery of such instruments (Figure 3)
Actually the sample includes some OPs whose primary aim is to promote business creation
and development (such as the Czech Spain Italian and Lithuanian OPs) others where public
expenditure is more concentrated on support for RampD projects (such as the German and the
1 Cornell University INSEAD and WIPO (2014) The Global Innovation Index 2014 The Human Factor In innovation
Fontainebleau Ithaca and Geneva 2 The Regional Innovation Scoreboard 2012 applies the same methodology as far as it was possible to Member State
and regions Because of data availability problems at a regional level it was not possible to exactly replicate the
methodology but the results obtained were checked for consistency with the national level scoreboard One other
change was that those regions appearing in the last category were referred to as having lsquomodestrsquo innovation
performance
12
French OPs) for increasing technological and non-technological innovation (Polish OP) One OP
is focused on increasing networking and knowledge and technology transfer (Danish OP)
Figure 2 Paid amount by type of policy instruments in the eight OPs
0
10
20
30
40
50
60
70
80
90
100
CZ - CzechRepublic
DE - Saxony DK - Denmark ES - Castilla yLeoacuten
FR - Icircle deFrance
IT - Apulia LT - Lithuania PL - Poland
Support for RampD projects
Support for improving capacities
Networking
Knowledge and technology transfer
Internationalisation and visibility
Infrastructures and related services
Generic access to finance
Development of technological or non-technological innovation
Creation of innovative companies
Business creation and development
Access and diffusion of ICT
Note paid amount refers to both ERDF and public funds paid to beneficiaries
The public support has been largely delivered in the form of grants in five out of the eight
considered OPs which is in line with the predominance of traditional direct support across the
entire EU There are however some exceptions in Lithuania and especially Poland more
often public support has been conveyed through packages of support usually combining
grants with consulting services Equity finance is quite relevant in Icircle-de-France Lithuania and
Saxony while some preference for using repayable financial support can be observed in Apulia
and the Czech Republic
13
Figure 3 Paid amount by mode of delivery in the eight OPs
0 10 20 30 40 50 60 70 80 90 100
CZ - CzechRepublic
DE - Saxony
DK - Denmark
ES - Castilla yLeoacuten
FR - Icircle de France
IT - Apulia
LT - Lithuania
PL - Poland
Equity finance + Repayable financial support
Consulting services + training + search of businesspartnersConsulting advice technical assistance
Consulting advice technical assistance +Information campaing eventsEquity finance
Grants
Grants + consulting services + training
Grants + Consulting advice technical assistance
Grants + Loans + Information campaigns
Grants + Provision of infrastructure and services +Consulting advice technical assistanceGrants + training
Information campaign events seminars
Provision of infrastructure and services +Consulting advice technical assistanceProvision of infrastructures
Repayable financial support
Source CSIL elaboration Note Paid amount refers to both ERDF and public contributions
14
The eight OPs have provided of support to around 48 thousand SMEs representing 20 of the
total number of beneficiary SMEs ascribable to the full sample of 50 OPs The number of
beneficiary SMEs is the highest for the OPs of Poland and Lithuania with more than 10
thousand and 12 thousand beneficiaries on the other hand the French OP has supported less
than 300 SMEs
Figure 4 Number of beneficiary SMEs of the eight OPs
00
10
20
30
40
50
60
70
80
90
100
0
2000
4000
6000
8000
10000
12000
14000
PL - Poland LT - Lithuania IT - Apulia ES - Castilla yLeoacuten
CZ - CzechRepublic
DE - Saxony FR - Icircle de France
Number of beneficiary SMEs Share of beneficiary SMEs over the total number of SMEs in the target area
Source CSIL elaboration Note Missing data for Denmark since the exact number of beneficiary SMEs is not available
In order to assess the intervention strategy of the OPs besides the absolute number of
beneficiaries it is particularly interesting to look at the distribution of beneficiaries according to
their size and technology intensity The analysis on the 50 OPs has revealed that the micro
enterprises generally represent the large majority of SMEs benefiting from ERDF support
(54) followed by small (30) and medium enterprises (16) The analysis has documented
the predominantly low technological intensity of beneficiary SMEs the majority of SMEs (53)
belong to sectors with a low share of business RampD expenditure over the value added by
sector However it is also noted that almost one quarter of all beneficiaries (24) has a
medium-high technological level Medium low-tech or high tech companies represent a lower
share of all the identified beneficiaries ie 14 and 9 respectively
The proportion of beneficiary SMEs in the eight OPs provides a more diversified picture (Figure
5 and 6) The Czech OP Enterprise and Innovation has directed the public support mainly to
small and medium size companies with a fair distribution in terms of technology intensity
Conversely the regional Apulia OP target micro enterprises characterised by either a low or a
medium-high technology intensity The Lithuanian OP has mostly supported low-tech
companies without significant differentiation in terms of size
15
Figure 5 Share of beneficiary SMEs by size class in the eight OPs
0
10
20
30
40
50
60
70
80
90
100
CZ - Czech Republic(Innov)
ES - Castilla y Leoacuten FR - Icircle de France IT - Apulia LT - Lithuania PL - Poland
Micro enterprises Small enterprises Medium enterprises
Source CSIL elaboration Note Missing data for Saxony and Denmark since the size class of beneficiary SMEs is not
available
Figure 6 Share of beneficiary SMEs by technology intensity level in the eight OPs
0
10
20
30
40
50
60
70
80
90
100
CZ - CzechRepublic
DE - Saxony ES - Castilla yLeoacuten
FR - Icircle deFrance
IT - Apulia LT - Lithuania PL - Poland
Low tech
Medium-low tech
Medium-high tech
High tech
Source CSIL elaboration Missing data for Denmark since the level of technological intensity cannot be estimated due
to missing data on sectoral disaggregation of beneficiary SMEs
Whether the characteristics of beneficiary SMEs simply mirror the specific characteristics of the
population of SMEs in the area covered by the OPs or result from different logics of
intervention underneath the OPs or from a mix of the two possible reasons is investigated in
the case studies
16
2 RESULTS OF THE SEMINAR
The aim of a ldquostakeholder seminarrdquo held on 29th April 2015 was to present the preliminary
findings and the main issues identified in other tasks undertaken for this Work Package and
especially those emerging from the eight case studies of Operational Programmes and to
discuss the policy implications and main lessons with Commission staff the evaluation team
members (and representatives of other Work Packages) academic experts and people
involved in the implementation of the Operational Programmes on the ground (see list of
participants in Annex) The following provides an overview setting out the main highlights in
the results from the presentations of the eight case studies
The seminar was organised in relation to three themes as follows
1) Targeting high vs low tech firms the case studies of Lithuania Saxony and Poland
2) Promoting widespread vs selective instruments the case studies of Apulia Castile amp
Leon and the Czech Republic
3) ERDF and the regional policy mix the case studies of Icircle-de-France and Denmark
Other issues that it was intended to highlight during the course of the discussion included
The issue of direct versus indirect support
Economic development versus anti-cyclical intervention
Supporting enabling organisations
Supporting individual enterprises as against partnerships
21 Targeting high vs low tech firms
In Lithuania the challenge was to build competitive advantage on the basis of labour-intensive
technologies The traditional sectors were in need of upgrading and the majority of the funds
were allocated to low tech companies In Saxony there was a demand driven approach but
also a realisation that low tech firms can improve competitiveness through cost reduction
Technologyprocess upgrading as subset to innovation can be justified but concentration of
spending on RampD has established Saxony as one of the German RampD powerhouses and
contributed to market access an increase in turnover and employment growth In Poland it
was thought that for countries that are not leading technological change the returns from
innovation are particularly high in low-tech manufacturing sectors but that as a country
approaches the technological frontier the policy should focus on RampD and innovative start-up
In discussion a central question was posed where does the investment pay most
22 Promoting widespread vs selective instruments
In Apulia the strategy was adjusted through re-programming to provide broad support to
SMEs to allow them to survive during the crisis and recession a dual approach was adopted
with selective support for SMEs with the internal capacity to manage innovation processes
including demand-side measures In Castile amp Leon the impact of the crisis was also intense
and broadly-based support was necessary but there were also efforts to build up the support
infrastructure and to provide in-depth support to enterprises identified as capable of innovation
and growth In the Czech Republic there was again both broadly-based and selective support
especially to address the ldquoBranch-plant syndromerdquo (where branches of international firms allow
little room for independent development by local suppliers) There was a focus on transferring
RampD results into production by stimulating demand for RampD results with 13 of the funds
going to support for innovation activities
17
23 ERDF and the regional policy mix
The last two cases are examples of OPs for areas which are relatively prosperous and where
RampD and innovation are relatively strong The ERDF budgets however were relatively small
In the Icircle-de-France (IdF) there was a pragmatic and demand-driven implementation
palliating perceived gaps in regional public support and enlarging the available financial
support targeting high growth high tech sectors appears to pay off in the IdF context In
Denmark there was a more strategic approach which was well integrated into national
strategy but with flexible implementation with strong stakeholder involvement in 6 regional
programmes There were interesting applications of the triple helix model amp successful cluster
developments
In all cases there was comment on the strength of monitoring and evaluation systems These
varied considerably from a relatively under-developed system in Apulia to a relatively strong
one in Icircle-de-France Denmark had organised a counterfactual analysis of enterprises
supported by the OP as against similar enterprises not receiving support
24 Synthesis
241 Diversity across themes
The first impression made by the presentations was the diversity of the interventions in the
eight cases There are several dimensions to these differences beginning with the context in
which the OP was implemented where there were differences relating to
The size of the regionsMember States targeted The absolute and relative size of the Programmes within the regions and countries in which
they operated and the effects that could reasonably be expected from them The size and structure of the SME population its sectoral distribution and its capacities
and assets The economic context within which the OPs operated and especially the way that the
economic crisis impacted on each area over the course of the programming period The endowment of SME and innovation support infrastructure and culture determining the
base on which the OPs could build
In fact the detailed investigations have confirmed the importance of the specific context in
which each OP was conceived and implemented for the determination of the nature of the
policy instruments used and the results to be expected from them This context is important
for any fair assessment of the achievements or otherwise of each Programme
Nonetheless when it came to the processes used to promote SMEs and innovation the
differences could often be considered as involving variations around a series of central themes
In all the cases considered there was a strong emphasis on promoting innovation as a
central objective yet this was done in a variety of ways and had differing relationships with
the objective of SME promotion In a number of cases support for SMEs was itself very much
seen as part of this process of encouraging innovation including in the case of the Icircle-de-
France where it involved encouraging new forms of enterprise dedicated to pursuing social
innovation In other cases however there was a clear commitment to provide general support
to SMEs and especially after the extent of the economic crisis became apparent some re-
programming to ensure this
Consequently targeting policies were not as clear cut as might have been expected There
were cases where SMEs were targeted directly ndash Apulia and Castile amp Leon but even here
there was also an element of trying to ensure that enterprises that were capable of benefitting
from support were the one to receive it while elsewhere a subtle lsquosoft targetingrsquo was more
evident where the instruments were shaped to achieve a certain selectivity not by defining
exclusions but by requiring for instance a commitment to change and growth on the part of
18
participants In Denmark for example those encouraged to become members of cluster
organisations had to be interested in developing their growth potential if their participation
was to serve any purpose This in effect led to a self-exclusion by those not willing to play
along with the support offered
The nature of the instruments used to implement OPs were shaped by a number of factors
Just as the objectives of an OP must take into account a large variety of details relating to the
circumstances of the relevant region or country so the precise characteristics of the
instruments to be applied must reflect not only the particular purposes for which they are to be
used the nature of the target group to be addressed and the economic and social
circumstances of the area concerned but the legacy of past interventions as well in the form
of existing support infrastructure and the capabilities developed in preceding periods In other
words support instruments are built on past actions both for positive reasons (exploiting
existing assets) but also because of their familiarity or a certain institutional inertia In any
event the large variety of circumstances in which the particular features of instruments are
determined gives rise to a wide array of actual policy instruments The review of 50 OPs
conducted as part of the evaluation identified 648 different instruments
This large variety of specific instruments however is mainly accounted for in that they are
often designed as elaborations of well-established approaches but addressing particular needs
and circumstances and also a variety of potential targets So building capacities and
competences can be undertaken for enterprises and their managers of varying degrees of
sophistication and background knowledge and can relate to a variety of matters from technical
issues to general management marketing exporting or more specialised issues such as IP
management The process of capacity building can therefore take many forms
The extent of the provision of access to finance is complicated by the question of whether or
not the provision of direct grants counts as part of this function Some substantial sums were
provided in this form by some of the OPs However generally an expected move towards the
provision of more indirect finance ndash loans and equity through intermediaries - was not as
marked as may have been anticipated General access to finance measures (equity
guarantees and reduction of credit interest) accounted for 38 of the funds allocated by the
Lithuanian OP and repayable financial support for 26 of the Apulian OP equity finance 14
in the case of Icircle-de-France 23 for loans and 35 for equity finance in that of Saxony The
other OPs had rather small amounts devoted to indirect financial instruments if any at all An
explanation offered of the small allocations to these instruments in some OPs was that the
crisis discouraged experimentation in this area that it is relatively difficult and expensive to
manage financial instruments and outside the experience of most Managing Authorities that
relatively large sums are necessary to make any appreciable impact and that results can often
take a long time to materialise
There were considerable differences in the extent to which there was provision of direct
support to enterprises In Saxony over 90 of the funds were in the form of grants and in
Icircle-de-France and in Apulia grants largely paid directly to enterprises accounted for 56 and
41 respectively of the funds allocated In Denmark by contrast no grants were paid directly
to enterprises unless they were partners in projects receiving support for developing clusters
or relationships with universities or in a small number of cases where they received funds to
hire private sector business advisers
It is useful to distinguish between different types of direct support In Poland and in Saxony a
large proportion of the direct support was for investments in innovative undertakings In
Apulia although the main part of support went to individual enterprises or SMEs it was more
evenly split between support for investment (by micro and small firms) and investment in
research In Icircle-de-France the weight of the direct support was for research projects
19
It is also interesting that analysis of a wider group of 50 OPs shows that manufacturing firms
received 33 of support ndash much greater than their share in the economy as a whole It also
showed that more than 50 of support has been directed to low-tech firms
Different forms of business support were available across the OPs including access to public
and private sources of information and advice incubator services and assistance for exporters
Castile amp Leon targeted the improvement of management capacities and this approach was
implicit in a number of other OPs
Approaches to support for innovation also took different forms Overall in the broader range
of OPs examined 24 of support was for RampD and a similar amount for business development
and direct support for RampD in collaborative and non-collaborative projects was a significant
feature of the OPs for Apulia Castile amp Leon Icircle-de-France Lithuania Poland and Saxony but
not in the Czech Republic and Denmark where FP7 was thought to be the appropriate vehicle
In Saxony strengthening the research base of enterprises in the local economy and promoting
the exploitation of knowledge was central to the OP so that the majority of the funds were
provided for investment in fixed capital and in supporting RampD This implied a certain targeting
within the SME population In Icircle-de-France the bulk of the support also went to research
projects and support for technology transfer and incubators though there was also support for
SME creation in distressed areas for access to finance and for social innovation projects In
Denmark the focus was more on promoting clusters and encouraging links between enterprises
and science institutions
In some cases however the picture was more mixed In Lithuania where 38 of funding went
to access to finance measures a further 30 to up-grading technology and processes but
there was also direct support for RampD and RampD infrastructure and support for networking and
clusters promoting innovation Similarly in Apulia there was support for research by SMEs
and measures to promote consulting services for technical innovation regional innovation
partnerships and aid for access to ICT alongside aid to investment in micro and small firms
and credit guarantees and support for tourism
Knowledge transfer also featured in many of the OPs Building relationships between
knowledge institutions and enterprises was an important objective for Denmark as part of
developing regional innovation capacities though the results were mixed at least in part
because of an unresponsive culture in certain universities In other cases these relationships
were promoted by collaborative research projects (Icircle-de-France Saxony) and in the case of
Lithuania by the use of vouchers Overall however it is perhaps surprising that building
relationships between knowledge institutions and enterprises did not have a higher profile
The development of clusters was an instrument used in the Czech Republic Lithuania and
Denmark where in some regions it absorbed a large proportion of the available funds and
where the focus was on emerging sectors such as clean technology energy health and welfare
and the experience economy Cluster support in this case consisted of a relatively complex set
of services provided for cluster members In the Czech Republic and Lithuania cluster
development was itself less developed and related to low-tech sectors with potential for
innovation and growth
Underlying these differences between Programmes there were variations in the approach to
governance This has become an important issue for all of the regions and countries
considered In part this is linked to the aspiration at least to establish transparent evidence-
based policy processes which has brought in the development of monitoring and evaluation
systems but there are more central elements of governance to do with who is involved in
decision-making and how decisions are taken that are also part of the picture The
development of stakeholder involvement in strategy formation in the setting of priorities and
even in elements of implementation was apparent in many of the cases throughout the
20
programming period In Denmark the whole (national and EU) strategy was based from the
beginning on a national consensus established through political and open public debates and
implemented through regional bodies with a strong stakeholder representation In Apulia a
self-evaluation exercise led to new departures in response to the crisis
There were however other issues of governance alluded to in the seminar relating to but the
alignment of the OP with national strategies and the organisational mechanisms adopted to
implement the strategy chosen by each OP These can have considerable influence on the
degree to which the Managing Authority can directly influence the implementation
mechanisms
Finally account must be taken of the differential impacts of the recession In Apulia and
Castile amp Leon there was formal reprogramming largely as a result of the recession and
changes in the instrument set utilised To a certain extent this meant a scaling down of
ambitions when for many enterprises it was a matter of survival rather than developing new
ventures Even here though the story does not always move in the same direction In the case
of Apulia for instance while it was necessary in part to refocus support on the broad range of
enterprises suffering from the recession at the same time the crisis acted as a stimulus to new
thinking after the conduct of a self-evaluation exercise
242 A common framework
Overall it can be seen that within the diversity shown by the eight cases there are at least a
number of common themes which are belong addressed in different ways The question does
arise however of whether it might be possible to go further to offer an explanation of the
diversity
External experts at the seminar advised that a theoretical framework should be sought to
make greater sense of the quantitative material and provide the basis for a more deliberative
judgement on the effectiveness of policy and how support funds can be best spent
One possibility is to take the differing circumstances of the OPs as themselves being an
explanatory factor and in a further step see the differences in the nature of the instruments
deployed as being part of an evolutionary process This approach also has the merit of linking
a debate on instruments with broader considerations in the promotion of innovation and
competitiveness at a European level
The reference in section 1 above to the position of the countries covered by the case studies
and their innovation performance as characterised by the Innovation Union Scoreboard and
in further detail at a regional level by the Regional Innovation Scoreboard 2012 allows a
distinction to be made between countries and regions in four categories - lsquoleadersrsquo lsquofollowersrsquo
those with a moderate lsquoperformancersquo and those lsquocatching-uprsquo The respective positions of the
eight cases have been set out in section 1
The approach suggested at the seminar was essentially to explore the hypothesis that the
overall lsquoinnovationrsquo position of regionscountries determines the types of instrument
used their targeting and ultimately their relative performance It may be that the
categorisation help us explain the differences in the objectives set the instruments that are
appropriate and their targeting and that this in turn also influences the performance that can
be expected Regionscountries for instance that are in the lsquoless developedrsquo categories may
have to strengthen their basic support infrastructure and service provision and the
performance of the enterprise base and that of other important players such as knowledge
institutions public authorities etc The regionscountries in the more lsquoadvancedrsquo positions on
the other hand have to build on their strengths in order to maintain or enhance their position
by promoting more productive research and strengthening the links between the science base
and enterprises
21
This possible framework provides an interesting line of enquiry to be followed up in further
stages of the evaluation It does however also address other issues raised in the seminar
such as whether support should be directed to high-tech enterprises or as was argued in
relation to a number of the countries present the gains to be had from the improvement of
the performance of mid and low-tech firms are more relevant in certain stages of
development
22
3 NEXT STEP THEORY-BASED IMPACT EVALUATIONS
As the implementation of the evaluation study proceeds and the case studies (Task 3) are
being drafted the Team is in the course of identifying three policy instruments to be assessed
by as many theory-based impact evaluations as foreseen in Task 4 The three instruments
should be selected out of the long list of seven instruments suggested in the First Intermediate
Report and in consultation with the European Commission
The Team puts forward hereby a possible list of three policy instruments The main criteria
considered for their selection are
i The degree of representativeness of the typologies of policy instruments used in the 50
OPs as outlined in the First Intermediate Report the most significant categories of
policy instruments in terms of public expenditure are
Business creation and development ie instruments designed to stimulate
investments in the business sector without a predominant emphasis on RampD
and innovation
Support for RampD projects
Support for the development of technological and non-technological innovation
without any research and experimental development activities
ii The feasibility of a theory-based impact evaluation based on a survey of beneficiaries
which implies the availability of a sufficiently large number of beneficiaries and the
possibility to easily get their email contacts also with the help of the Managing
Authority or the implementing body the best option is to have at least some hundreds
beneficiary SMEs for each instrument
iii The importance of the policy instrument within the policy mix of the OP which ensures
the availability of a good amount of information resulting from the case study
regarding in particular its logic of intervention information about beneficiaries and
effectiveness
iv Preference is assigned to instruments on which no other surveys to beneficiaries have
been conducted so far in order not to put excessive burden on the same SMEs which
could undermine their willingness to contribute to our study
Based on these considerations the three policy instruments we propose for a theory-based
impact evaluation are presented in the table below It can be noticed that the list also ensures
geographical balance between Convergence and Competitiveness and Employment region as
well as Old and New Member States and regional and national OPs For the sake of
completeness and comparability for all the seven candidate instruments the pros and cons for
selecting each of them are detailed
23
Table 4 Comparison of the policy instruments and reasons for selection
Proposed for
selection
Type of policy
instrument
Selected policy
instrument
Operational Programme and
type of regioncountry
Descriptive information Specific reason for selection
for a TBIE Possible reasons for
rejection
YES Business creation and development
ldquoAid to investment projects by micro and small enterprisesrdquo
Regional OP Apulia (Italy) - Convergence region
- Old Member State
The instrument supports the purchase of machineries computer systems buildings construction works for enterprises in order to encourage the development of micro and small companies It benefitted more than 3 thousand SMEs For around 30 of beneficiaries grants have been combined with credit guarantees
- Very common type of SME support on which vast literature has been produced
- Very large number of beneficiary SMEs
- The strong relationship already established with local stakeholders and many SMEs would allow to easily and quickly test the surveyrsquos questionnaires before the launch of the three TBIEs
- For some SMEs opportunity to analyse the complimentary efforts of two forms of support (grants and a combination of grants and guarantees) and their respective effectiveness
- None
YES Support for RampD projects
ldquoGrants for Industrial Research and Experimental Developmentrdquo
Regional OP Castilla y Leon (Spain) - Competitiveness and Employment region
- Old Member State
The instrument encourages the development of RampD projects with the purpose of increasing the basis of number of innovative enterprises investment and personnel in RampD In total 759 projects of SMEs have been supported through grants 204 SMEs have conducted their project in collaboration with research organisations
- In analysing the achievement of beneficiary SMEs as well as the behavioural change opportunity to distinguish between SMEs which have realized their projects independently rather than in collaboration with a research centre
- According to the country expert among all the policy instruments of this OP this is the one for which it would be easier to get the contact details of beneficiary SMEs
- Possibility to get active collaboration by the regional authority ADE eg sending out an introductory letter to all
- None
24
Proposed for
selection
Type of policy
instrument
Selected policy
instrument
Operational Programme and
type of regioncountry
Descriptive information Specific reason for selection
for a TBIE Possible reasons for
rejection
SMEs mentioning that they will receive an invitation to a survey and inviting them to reply
YES Support for the development of technological and non-technological innovation
ldquoFinancing of individual projects for SMEsrdquo
National OP Poland Innovative Economy - Convergence country
- New Member State
The instrument provides grants to support the technological innovation of SMEs In particular it aims to stimulate the adoption of more risky and innovative solutions The instrument performed far better than expected 698 projects have been realised up to 2013 by approximately as many SMEs The instrument is delivered by a financial intermediary
- This instrument belongs to the OP which has provided the largest financial contribution to SMEs within the full sample of 50 OPs furthermore this is one of the core instrument of the programme as also reflected in the volume of public contribution which is among the highest of the OP (more than EUR 300 million fully targeted to SMEs)
- Opportunity to examine the role played by the intermediary according to the perceptions and opinions of beneficiary SMEs
- None
NO Support for RampD projects
ldquoRampD project grants for individual enterprisesrdquo
Germany regional OP Saxony - Convergence region
- Old Member State
The instrument provides grants to individual enterprises for supporting the implementation of RampD projects
- Evidence of achievement is already available since the instrument was subject of another evaluation study and enterprise survey a few years ago The TBIE would allow to better qualify the instrumentsrsquo achievements and the causal chain leading to the certain effects
- According to the country experts beneficiary SMEs may be reluctant to participate to another survey
- Less than 200 beneficiary SMEs a lower number as compared with other candidate policy instruments
- It is still uncertain whether it will be possible to get the email addresses of beneficiary SMEs
25
Proposed for
selection
Type of policy
instrument
Selected policy
instrument
Operational Programme and
type of regioncountry
Descriptive information Specific reason for selection
for a TBIE Possible reasons for
rejection
NO Support for the development of technological and non-technological innovation
ldquoSupport for technological upgrade - LEADER LTrdquo
Lithuania - Economic Growth - Convergence country
- New Member State
The instrument supports the increase of productivity in enterprises by supporting production technology upgrading The investment into the acquisition or upgrade of technologies and related internal engineering infrastructures are supported
- Email contacts particularly easy to be collected
- Result indicators are available due to an effective Structural Funds monitoring system and because the instrument was already subject of a previous evaluation study
- Very low number of beneficiary SMEs (69) which would make this instrument less suitable for launching an on-line survey as compared with other candidate instruments
NO Support for the development of technological and non-technological innovation
ldquoSupport for non-technological innovation - PROCESS LTrdquo
Lithuania - Economic Growth - Convergence country
- New Member State
The instrument aims to increase productivity in enterprises by implementing modern management methods and processes except of personnel management systems The purchase of external consulting services is supported in order to upgrade enterprises management processes
- Email contacts particularly easy to be collected
- Result indicators are available due to an effective Structural Funds monitoring system and because the instrument was already subject of a previous evaluation study
- The instrument is considered highly relevant by the target beneficiaries
- Very low number of beneficiary SMEs (119)
- As compared with other categories of policy instruments support for non-technological innovation is relatively less significant and representative of the typical forms of support provided to SMEs in the EU
NO Support for networking
ldquoInteraction on Innovationrdquo later merged with ldquoCluster relationshiprdquo
Denmark Innovation and Knowledge OP - Competitiveness and Employment country
- Old Member State
The policy instrument aims at analysing opportunities for creating clusters promoting networks and the formation of clusters of SMEs in particular as well as clusters of supplier networks for SMEs These objectives are pursued by providing grants to SMEs in partnership with universities (according to the triple helix model)
- Opportunity to better analyse the effects of a policy instrument on which a vast amount of literature has been produced
- Opportunity to dig into the collaboration mechanisms between SMEs and universities
- As compared with other categories of policy instruments support for networking is relatively less significant and representative of the typical forms of support provided to SMEs in the EU
- The number and characteristics of SMEs benefitting from this instrument remain unknown even after implementing the case
26
Proposed for
selection
Type of policy
instrument
Selected policy
instrument
Operational Programme and
type of regioncountry
Descriptive information Specific reason for selection
for a TBIE Possible reasons for
rejection
study The lack of data at policy instrument level prevents from identifying the beneficiary SMEs to which launching the on-line survey
27
4 ANNEX SEMINAR PARTICIPANTS
Name Description Organisation
DG REGIO Evaluation Unit
Rudolf Niessler Director DG REGIO B Policy
Veronica Gaffey Head of Evaluation Unit DG REGIO B2
Marielle Richeacute Evaluation Unit DG REGIO B2
Kai Stryczynski Deputy Head of Unit DG REGIO B2
Daniel Mouqueacute Evaluation Unit DG REGIO B2
CSIL Evaluation Team
Massimo Florio Evaluation team Director CSIL
Julie Pellegrin Evaluation team Project Manager CSIL
Silvia Vignetti Evaluation team CSIL
Emanuela Sirtori Evaluation team CSIL
Mike Coyne Evaluation team CSES
Malin Carlberg Evaluation team CSES
Anna-Maria Krarup Evaluation team CSES
Christian Koehler Case Study Saxony Centre for European Economic Research (ZEW)
Jaime del Castillo Case Study Castile amp Leon President INFYDE
Agnė Paliokaitė Case Study Lithuania Visionary Analytics
Elena Jarocinska Case Study Poland
Commission Officials
Katja Reppel Deputy Head of Unit Competence Centre Smart and Sustainable Growth
DG REGIO G1
Bernd Reichert Head of Unit H2020 SME EASME
Peter Wragg Head of Unit SME Access to Markets DG GROW F2
Jean David Malo Head of Unit SMEs Financial Instruments amp State Aid DG RTD B3
28
Istvan Nemeth Policy Officer - Enterprise Europe Network DG GROW F2
External Experts
Harvey Armstrong Professor Emeritus in the Department of Geography University of Sheffield
Robert Picciotto Visiting Professor Kings College London
Mark Sanders Professor University of Utrecht
Jiri Blazek Associate Professor Charles University Prague
Stakeholders ndash Case Studies
Adriana Agrimi Manager of RampI Policy Instrument Apulia Managing Authority
Kasper Westh Senior official Growth Forum Secretariat South Denmark
Simona Daukilaite
Deputy Head of the Economic Growth Operational Programme
Economic Growth OP Lithuania Managing Authority
Beatriz Casado Saenz Vice-General Director ADE (Development Agency Castile amp Leon)
Tomasz Kula Analysis and Evaluation Team Competitiveness and Innovation Department
Ministry of Infrastructure and Development (PL)
Representatives of other Work Packages
Terry Ward WP 1 Applica
Andreas Resch WP 3 Metis-Vienna
Anda Berenyi WP 4 KPMG
LEGAL NOTICE
This document has been prepared for the European Commission however it reflects the views only of the authors and the Commission cannot be held responsible for any use which may be made of the information
contained therein
More information on the European Union is available on the Internet (httpwwweuropaeu)
Luxembourg Publications Office of the European Union 2014
ISBN [number]
doi[number]
copy European Union 2015
Reproduction is authorised provided the source is acknowledged
Printed in [Country]
PRINTED ON ELEMENTAL CHLORINE-FREE BLEACHED PAPER (ECF)
PRINTED ON TOTALLY CHLORINE-FREE BLEACHED PAPER (TCF) PRINTED ON RECYCLED PAPER
PRINTED ON PROCESS CHLORINE-FREE RECYCLED PAPER (PCF)
Europe Direct is a service to help you find answers to your questions about the European Union
Freephone number ()
00 800 6 7 8 9 10 11
() The information given is free as are most calls (though some operators phone boxes or hotels may charge you)
EUROPEAN COMMISSION
Directorate-General for Regional and Urban Policy Directorate B - Policy
Unit B2 Evaluation and European Semester
Contact Marielle Richeacute
E-mail REGIO-EVALeceuropaeu
European Commission
B-1049 Brussels
3
Second Intermediate Report
September ndash 2015
4
This report is part of a study carried out by a Team selected by the Evaluation Unit DG
Regional and Urban Policy European Commission through a call for tenders by open
procedure No 2014CE16BAT002
The consortium selected comprises CSIL ndash Centre for Industrial Studies (lead partner
Italy) CSES ndash Centre for Strategy amp Evaluation Services (UK) and ZEW ndash Centre for
European Economic Research (Germany)
Subcontracting companies are CASE ndash Center for Social and Economic Research
(Poland) INFYDE ndash Informatioacuten y Desarrollo SL (Spain) Visionary Analytics (Lithuania)
and WIFO ndash OumlsterreichischesInstitutfuumlrWirtschaftsforschung (Austria)
The Core Team comprises
Scientific Director Massimo Florio CSIL and University of Milan
Project Manager Julie Pellegrin CSIL
Advisory Committee Brad Graeme Philip Astbury (University of Melbourne) Harvey Armstrong (University of Sheffield) David Audretsch (Indiana University) Mateja Dermastia (Anteja ECG) and Robert Picciotto (Kings College)
Senior experts Laura Delponte (CSIL) Georg Licht (ZEW) James Rampton (CSES) and Davide Sartori (CSIL)
Task managers Silvia Vignetti (CSIL) Mike Coye (CSES) Emanuela Sirtori (CSIL) Mark Whittle (CSES) Julie Pellegrin (CSIL)
Statistical Experts Donatella Cheri (CSIL) Stefania Pelizzari (CSIL) and Silvia Salini (CSIL and University of Milan)
Junior Experts Chiara Pancotti (CSIL)
Quality manager Paola Govoni (CSIL)
A network of Country Experts provides the geographical coverage for the field analysis Viktor Kveton (CZ) Anna-Maria Krarup (DK) Mike Coyne (DK) Christian Kohler (DE) Silke Haarich (ES) Julie Pellegrin (FR) Silvia Vignetti (IT) Simonas Gausas (LT) Agnė Paliokaitė (LT) Elena Jarocinka (PL) Jan Teresiński (PL) The authors express their gratitude to the stakeholders who agreed to provide data and information The authors are also grateful for the very helpful insights from the EC staff and particularly to Veronica Gaffey Marielle Richeacute Daniel Mouqueacute and Kai Stryczynski and other members of the Steering Group The authors are responsible for any remaining errors or omissions
Quotation is authorised as long as the source is acknowledged along with the fact that
the results are provisional
5
Second Intermediate Report
TABLE OF CONTENTS
LIST OF ABBREVIATIONS 6
FOREWORD 7
1 OVERVIEW OF THE SELECTED OPERATIONAL PROGRAMMES 8
2 RESULTS OF THE SEMINAR 16
21 Targeting high vs low tech firms 16
22 Promoting widespread vs selective instruments 16
23 ERDF and the regional policy mix 17
24 Synthesis 17
3 NEXT STEP THEORY-BASED IMPACT EVALUATIONS 22
4 ANNEX SEMINAR PARTICIPANTS 27
6
LIST OF ABBREVIATIONS
BERD Business Expenditure in Research and Development
CONV Convergence (Cohesion Policy objective)
COMP Competitiveness and Employment (Cohesion Policy objective)
CZ Czech Republic
DE Germany
DG REGIO Directorate-General for Regional and Urban Policy
DK Denmark
EC European Commission
ERDF European Regional Development Fund
ES Spain
EU European Union
EUR Euro
FDI Foreign Direct Investment
FR France
GDP Gross Domestic Product
GERD Gross Expenditure in Research and Development
GVA Gross Value Added
ICT Information and Communication Technology
IT Italy
LT Lithuania
M EUR Million Euro
MA Managing Authority
MS Member State
MULTIREG Multiregional
NACE Nomenclature statistique des activiteacutes eacuteconomiques (Statistical
classification for economic activities)
NAT National
NUTS Nomenclature of territorial units for statistics
OP Operational Programme
PL Poland
RampD Research and Development
RampTD Research and technological development
REG Regional
RTDI Research technological development and innovation
SF Structural Fund
SME Small and medium enterprise
TBIE Theory-based impact evaluation
ToR Terms of Reference
WP Work package
7
FOREWORD
This is the Second Intermediate Report of the ex-post evaluation of Support to Small and
Medium Enterprises (SMEs) ndash Increasing Research and Innovation in SMEs and SME
development The objective of the evaluation is to assess the effectiveness and the impact of
the European Regional Development Fund (ERDF) with regards to support for innovation and
the development of SMEs in the European Union over the 2007-2013 programming period
This report presents the results of Tasks 3 and 5 ie the eight case studies in selected
regions and the stakeholder seminar organised in Brussels the 29th of April 2015 to discuss
the findings from the different tasks and especially from the case studies The volume at hand
contains an overview of the eight selected case studies as well as an overview of the
organisation and results of the seminar while the eight case studies form separate self-
standing reports
8
1 OVERVIEW OF THE SELECTED OPERATIONAL PROGRAMMES
This Chapter provides an introductory overview of Operational Programmes (OPs) supporting
the growth and innovation processes of Small and Medium Enterprises (SMEs) which are
subject of the case studies included and discussed in this report
The Terms of Reference indicate a list of 50 Operational Programmes co-financed in the period
2007-2013 by the European Regional Development Fund (ERDF) in 23 EU Member States All
50 OPs and policy instruments targeted to SMEs included therein have been examined The
results of this preliminary analysis are included in the First Intermediate Report From the full
list of 50 OPs the evaluation team has selected 8 OPs for a more in-depth analysis which are
1 Italy ndash Apulia (2007IT161PO010) carried out as a pilot case study
2 France ndash Icircle-de-France (2007FR162PO012)
3 Germany ndash Sachsen (2007DE161PO004)
4 Denmark - Innovation and Knowledge (2007DK162PO001)
5 Spain ndash Castilla y Leoacuten (2007ES162PO009)
6 Czech Republic ndash Business and Innovation (2007CZ161PO004)
7 Poland ndash Innovative Economy (2007PL161PO001)
8 Lithuania ndash Economic Growth (2007LT161PO002)
These OPs have been selected in order to fulfil the following conditions
to ensure a balance between regional and national cases
to ensure a balance between Convergence and regional Competitiveness objectives
also between EU 12 and EU 15
to include territories with different SME typologies
to account for strategies based on different mixes of policy instruments
the presence of a collaborative Managing Authority in order to ease data collection
The result of the selection is a list of Programmes which constitute a purposeful set that
assures the greatest representativeness in terms of socio-economic context and regional
strategy and offers the opportunity to discover relevant lessons on mechanisms concerning
SME support
9
Figure 1 Map of OPs selected for in-depth study
Denmark ndash Innovation
and knowledge
(2007DK162PO001)
Germany ndash Saxony
(2007DE161PO004)
France ndash Icircle-de-France
(2007FR162PO012)
Spain ndash Castilla y Leoacuten
(2007ES162PO009)
Italy ndash Apulia
(2007IT161PO010)
Lithuania ndash Economic
Growth
(2007LT161PO002)
Czech Republic ndash
Business and Innovation
(2007CZ161PO004)
Poland ndash Innovative
Economy
(2007PL161PO001)
Source CSIL
These eight OPs have been evaluated in order to enrich the preliminary hypotheses derived in
Task 1 on the mix of policy instruments adopted to promote SME growth and innovation across
the EU and on their outcomes The diversity of OPs included in the sample allows to account
for different regional and national specificities thus bringing context variables more forcefully
into the picture
In particular the selection of OPs both at regional (such as Apulia or Saxony the former at
NUTS 2 level the latter at NUTS 1 level) and national level (such as the Polish or Danish
programme) in eight different countries allows providing a panorama of different institutional
context features and regional innovation systems in place which can play an important role on
the delivery mechanisms of support along with their effectiveness The analysis encompasses
areas which have been touched to a different extent by the economic recession and which
belong to different Cohesion Policy objectives which is likely to affect their capacity to react to
the crisis and overcome structural barriers hindering SME development and innovativeness
The number of SMEs based in the areas targeted by the OPs range from nearly two hundred
thousand as in Saxony or in small countries such as Denmark and Lithuania to almost or
more than 1 million as in the Czech Republic and Poland This variance is reflected in the
volume of ERDF contribution dedicated to SMEs which is highest in Poland and Czech Republic
However the sample includes also an example of OP which dedicates a relatively limited
amount of ERDF to SMEs in spite of the large number of SMEs in the region it is the OP of Icircle-
de-France
10
Table 1 Eight Operational Programmes observed
OP
Cohesion
Policy
objective
EU 12
(ldquoNewrdquo
Member
States) or
EU15 (ldquoOld
Member
States)
NUTS level
Volume of EU
contribution for WP2
themes (EUR
million)
of EU contribution
for WP2 themes over
total contrib for
the OP
Total
population
of the area
covered by
the OP
GDP (PPS)
per capita
(average
2007-2011)
(EUR)
Total
number of
SMEs ()
Total
intramural
expenditure
in RampD
(GERD) ndash
2007-2011
average
Business
expenditure
in RampD
(BERD) ndash
2007-2011
average
1 Italy ndash Apulia Convergence EU15 NUTS 2 region
645 25 4 million 16640 218 thousand
(in 2011)
075 of
GDP
017 of
GDP
2 France ndash Icircle-
de-France
Competitiveness
and Employment EU15
NUTS 2
region 60 42 118 million 43360
727 thousand
(in 2011)
298 of
GDP
198 of
GDP
3 Germany -
Saxony Convergence EU15
NUTS 2
region 846 29 42 million 21040
140 thousand
(in 2012)
277 of
GDP
131 of
GDP
4 Denmark - Innovation and
knowledge
Competitiveness and Employment
EU15 NUTS 0 country
203
82
55 million 30660 213 thousand
(in 2013)
274 of
GDP
187 of
GDP
5 Spain ndash Castilla
y Leoacuten
Competitiveness
and Employment EU15
NUTS 2
region 269 36 255 million 23860
131 thousand
(in 2013)
109 of
GDP
061 of
GDP
6 Czech Republic - Business and
Innovation
Convergence EU12
NUTS 0
(except capital city
region)
2282 73 105 million 16960 928 thousand
(in 2013)
112 of
GDP
078 of
GDP
7 Poland - Innovative
Economy
Convergence EU12 NUTS 0 country
5287 62 38 million 14740 15 million (in
2013)
066 of
GDP
020 of
GDP
8 Lithuania -
Economic
Growth
Convergence EU12 NUTS 0
country 760 25 3 million 15440
115 thousand
(in 2013)
085 of
GDP
024 of
GDP
Source Eurostat and EC Performance Review 2014
Note () CSIL elaboration of National Statistical Office data (NACE sectors B-N excl K)
11
As shown in Table 1 the heterogeneity of areas covered by the case studies can be highlighted
also if considering the total intramural RampD expenditure or business RampD expenditure
According to the Global Innovation Index 2014 (Cornell University INSEAD and WIPO 2014)1
which combines innovation input measures and output measures the EU areas of the sample
cover a wide range or ranking categories (see Table 2 below)
Table 2 Global Innovation Index ranking ndash 2014
Global Innovation Index 2014 ranking
Top 10 11-20 21-30 31-40 40-60
UK Ireland Austria Cyprus Croatia
Sweden Germany France Italy Bulgaria
Finland Belgium Portugal Poland
Netherlands Estonia Latvia Greece
Denmark Malta Hungary Romania
Luxembourg Czech Republic
Slovakia
Spain Lithuania
Slovenia
Note The eight case studies are indicated by the asterisks
Source CSIL based on Cornell University INSEAD and WIPO (2014)
A more focused picture can be obtained using data from the Innovation Union Scoreboard
2012 covering the years 2007 ndash 2011 which ranks not only Member States but also regions in
terms of their performance against a set of indicators of innovation2 Specifically it places
countries and regions in four categories distinguishing between lsquoleadersrsquo lsquofollowersrsquo those
with a moderate lsquoperformancersquo and those lsquocatching-uprsquo Table 3 shows the position attributed
by the Scoreboard to the target area that have been examined in case studies
Table 3 Innovation Scoreboard Attribution
Leader Follower Moderate Modest
Catching-up
Denmark
Icircle-de-France
Saxony
Castile amp Leoacuten
Czech Republic
Poland
Apulia
Lithuania
Source European Innovation Scoreboard 2007 amp Regional Innovation Scoreboard 2012 Note Convergence region
Other regions Competitiveness amp Employment
According to the analysis of the SME-related policy instruments performed as part of Task 1
the eight OPs account for different intervention strategies as reflected in the mix of policy
instruments implemented (Figure 2) and the mode of delivery of such instruments (Figure 3)
Actually the sample includes some OPs whose primary aim is to promote business creation
and development (such as the Czech Spain Italian and Lithuanian OPs) others where public
expenditure is more concentrated on support for RampD projects (such as the German and the
1 Cornell University INSEAD and WIPO (2014) The Global Innovation Index 2014 The Human Factor In innovation
Fontainebleau Ithaca and Geneva 2 The Regional Innovation Scoreboard 2012 applies the same methodology as far as it was possible to Member State
and regions Because of data availability problems at a regional level it was not possible to exactly replicate the
methodology but the results obtained were checked for consistency with the national level scoreboard One other
change was that those regions appearing in the last category were referred to as having lsquomodestrsquo innovation
performance
12
French OPs) for increasing technological and non-technological innovation (Polish OP) One OP
is focused on increasing networking and knowledge and technology transfer (Danish OP)
Figure 2 Paid amount by type of policy instruments in the eight OPs
0
10
20
30
40
50
60
70
80
90
100
CZ - CzechRepublic
DE - Saxony DK - Denmark ES - Castilla yLeoacuten
FR - Icircle deFrance
IT - Apulia LT - Lithuania PL - Poland
Support for RampD projects
Support for improving capacities
Networking
Knowledge and technology transfer
Internationalisation and visibility
Infrastructures and related services
Generic access to finance
Development of technological or non-technological innovation
Creation of innovative companies
Business creation and development
Access and diffusion of ICT
Note paid amount refers to both ERDF and public funds paid to beneficiaries
The public support has been largely delivered in the form of grants in five out of the eight
considered OPs which is in line with the predominance of traditional direct support across the
entire EU There are however some exceptions in Lithuania and especially Poland more
often public support has been conveyed through packages of support usually combining
grants with consulting services Equity finance is quite relevant in Icircle-de-France Lithuania and
Saxony while some preference for using repayable financial support can be observed in Apulia
and the Czech Republic
13
Figure 3 Paid amount by mode of delivery in the eight OPs
0 10 20 30 40 50 60 70 80 90 100
CZ - CzechRepublic
DE - Saxony
DK - Denmark
ES - Castilla yLeoacuten
FR - Icircle de France
IT - Apulia
LT - Lithuania
PL - Poland
Equity finance + Repayable financial support
Consulting services + training + search of businesspartnersConsulting advice technical assistance
Consulting advice technical assistance +Information campaing eventsEquity finance
Grants
Grants + consulting services + training
Grants + Consulting advice technical assistance
Grants + Loans + Information campaigns
Grants + Provision of infrastructure and services +Consulting advice technical assistanceGrants + training
Information campaign events seminars
Provision of infrastructure and services +Consulting advice technical assistanceProvision of infrastructures
Repayable financial support
Source CSIL elaboration Note Paid amount refers to both ERDF and public contributions
14
The eight OPs have provided of support to around 48 thousand SMEs representing 20 of the
total number of beneficiary SMEs ascribable to the full sample of 50 OPs The number of
beneficiary SMEs is the highest for the OPs of Poland and Lithuania with more than 10
thousand and 12 thousand beneficiaries on the other hand the French OP has supported less
than 300 SMEs
Figure 4 Number of beneficiary SMEs of the eight OPs
00
10
20
30
40
50
60
70
80
90
100
0
2000
4000
6000
8000
10000
12000
14000
PL - Poland LT - Lithuania IT - Apulia ES - Castilla yLeoacuten
CZ - CzechRepublic
DE - Saxony FR - Icircle de France
Number of beneficiary SMEs Share of beneficiary SMEs over the total number of SMEs in the target area
Source CSIL elaboration Note Missing data for Denmark since the exact number of beneficiary SMEs is not available
In order to assess the intervention strategy of the OPs besides the absolute number of
beneficiaries it is particularly interesting to look at the distribution of beneficiaries according to
their size and technology intensity The analysis on the 50 OPs has revealed that the micro
enterprises generally represent the large majority of SMEs benefiting from ERDF support
(54) followed by small (30) and medium enterprises (16) The analysis has documented
the predominantly low technological intensity of beneficiary SMEs the majority of SMEs (53)
belong to sectors with a low share of business RampD expenditure over the value added by
sector However it is also noted that almost one quarter of all beneficiaries (24) has a
medium-high technological level Medium low-tech or high tech companies represent a lower
share of all the identified beneficiaries ie 14 and 9 respectively
The proportion of beneficiary SMEs in the eight OPs provides a more diversified picture (Figure
5 and 6) The Czech OP Enterprise and Innovation has directed the public support mainly to
small and medium size companies with a fair distribution in terms of technology intensity
Conversely the regional Apulia OP target micro enterprises characterised by either a low or a
medium-high technology intensity The Lithuanian OP has mostly supported low-tech
companies without significant differentiation in terms of size
15
Figure 5 Share of beneficiary SMEs by size class in the eight OPs
0
10
20
30
40
50
60
70
80
90
100
CZ - Czech Republic(Innov)
ES - Castilla y Leoacuten FR - Icircle de France IT - Apulia LT - Lithuania PL - Poland
Micro enterprises Small enterprises Medium enterprises
Source CSIL elaboration Note Missing data for Saxony and Denmark since the size class of beneficiary SMEs is not
available
Figure 6 Share of beneficiary SMEs by technology intensity level in the eight OPs
0
10
20
30
40
50
60
70
80
90
100
CZ - CzechRepublic
DE - Saxony ES - Castilla yLeoacuten
FR - Icircle deFrance
IT - Apulia LT - Lithuania PL - Poland
Low tech
Medium-low tech
Medium-high tech
High tech
Source CSIL elaboration Missing data for Denmark since the level of technological intensity cannot be estimated due
to missing data on sectoral disaggregation of beneficiary SMEs
Whether the characteristics of beneficiary SMEs simply mirror the specific characteristics of the
population of SMEs in the area covered by the OPs or result from different logics of
intervention underneath the OPs or from a mix of the two possible reasons is investigated in
the case studies
16
2 RESULTS OF THE SEMINAR
The aim of a ldquostakeholder seminarrdquo held on 29th April 2015 was to present the preliminary
findings and the main issues identified in other tasks undertaken for this Work Package and
especially those emerging from the eight case studies of Operational Programmes and to
discuss the policy implications and main lessons with Commission staff the evaluation team
members (and representatives of other Work Packages) academic experts and people
involved in the implementation of the Operational Programmes on the ground (see list of
participants in Annex) The following provides an overview setting out the main highlights in
the results from the presentations of the eight case studies
The seminar was organised in relation to three themes as follows
1) Targeting high vs low tech firms the case studies of Lithuania Saxony and Poland
2) Promoting widespread vs selective instruments the case studies of Apulia Castile amp
Leon and the Czech Republic
3) ERDF and the regional policy mix the case studies of Icircle-de-France and Denmark
Other issues that it was intended to highlight during the course of the discussion included
The issue of direct versus indirect support
Economic development versus anti-cyclical intervention
Supporting enabling organisations
Supporting individual enterprises as against partnerships
21 Targeting high vs low tech firms
In Lithuania the challenge was to build competitive advantage on the basis of labour-intensive
technologies The traditional sectors were in need of upgrading and the majority of the funds
were allocated to low tech companies In Saxony there was a demand driven approach but
also a realisation that low tech firms can improve competitiveness through cost reduction
Technologyprocess upgrading as subset to innovation can be justified but concentration of
spending on RampD has established Saxony as one of the German RampD powerhouses and
contributed to market access an increase in turnover and employment growth In Poland it
was thought that for countries that are not leading technological change the returns from
innovation are particularly high in low-tech manufacturing sectors but that as a country
approaches the technological frontier the policy should focus on RampD and innovative start-up
In discussion a central question was posed where does the investment pay most
22 Promoting widespread vs selective instruments
In Apulia the strategy was adjusted through re-programming to provide broad support to
SMEs to allow them to survive during the crisis and recession a dual approach was adopted
with selective support for SMEs with the internal capacity to manage innovation processes
including demand-side measures In Castile amp Leon the impact of the crisis was also intense
and broadly-based support was necessary but there were also efforts to build up the support
infrastructure and to provide in-depth support to enterprises identified as capable of innovation
and growth In the Czech Republic there was again both broadly-based and selective support
especially to address the ldquoBranch-plant syndromerdquo (where branches of international firms allow
little room for independent development by local suppliers) There was a focus on transferring
RampD results into production by stimulating demand for RampD results with 13 of the funds
going to support for innovation activities
17
23 ERDF and the regional policy mix
The last two cases are examples of OPs for areas which are relatively prosperous and where
RampD and innovation are relatively strong The ERDF budgets however were relatively small
In the Icircle-de-France (IdF) there was a pragmatic and demand-driven implementation
palliating perceived gaps in regional public support and enlarging the available financial
support targeting high growth high tech sectors appears to pay off in the IdF context In
Denmark there was a more strategic approach which was well integrated into national
strategy but with flexible implementation with strong stakeholder involvement in 6 regional
programmes There were interesting applications of the triple helix model amp successful cluster
developments
In all cases there was comment on the strength of monitoring and evaluation systems These
varied considerably from a relatively under-developed system in Apulia to a relatively strong
one in Icircle-de-France Denmark had organised a counterfactual analysis of enterprises
supported by the OP as against similar enterprises not receiving support
24 Synthesis
241 Diversity across themes
The first impression made by the presentations was the diversity of the interventions in the
eight cases There are several dimensions to these differences beginning with the context in
which the OP was implemented where there were differences relating to
The size of the regionsMember States targeted The absolute and relative size of the Programmes within the regions and countries in which
they operated and the effects that could reasonably be expected from them The size and structure of the SME population its sectoral distribution and its capacities
and assets The economic context within which the OPs operated and especially the way that the
economic crisis impacted on each area over the course of the programming period The endowment of SME and innovation support infrastructure and culture determining the
base on which the OPs could build
In fact the detailed investigations have confirmed the importance of the specific context in
which each OP was conceived and implemented for the determination of the nature of the
policy instruments used and the results to be expected from them This context is important
for any fair assessment of the achievements or otherwise of each Programme
Nonetheless when it came to the processes used to promote SMEs and innovation the
differences could often be considered as involving variations around a series of central themes
In all the cases considered there was a strong emphasis on promoting innovation as a
central objective yet this was done in a variety of ways and had differing relationships with
the objective of SME promotion In a number of cases support for SMEs was itself very much
seen as part of this process of encouraging innovation including in the case of the Icircle-de-
France where it involved encouraging new forms of enterprise dedicated to pursuing social
innovation In other cases however there was a clear commitment to provide general support
to SMEs and especially after the extent of the economic crisis became apparent some re-
programming to ensure this
Consequently targeting policies were not as clear cut as might have been expected There
were cases where SMEs were targeted directly ndash Apulia and Castile amp Leon but even here
there was also an element of trying to ensure that enterprises that were capable of benefitting
from support were the one to receive it while elsewhere a subtle lsquosoft targetingrsquo was more
evident where the instruments were shaped to achieve a certain selectivity not by defining
exclusions but by requiring for instance a commitment to change and growth on the part of
18
participants In Denmark for example those encouraged to become members of cluster
organisations had to be interested in developing their growth potential if their participation
was to serve any purpose This in effect led to a self-exclusion by those not willing to play
along with the support offered
The nature of the instruments used to implement OPs were shaped by a number of factors
Just as the objectives of an OP must take into account a large variety of details relating to the
circumstances of the relevant region or country so the precise characteristics of the
instruments to be applied must reflect not only the particular purposes for which they are to be
used the nature of the target group to be addressed and the economic and social
circumstances of the area concerned but the legacy of past interventions as well in the form
of existing support infrastructure and the capabilities developed in preceding periods In other
words support instruments are built on past actions both for positive reasons (exploiting
existing assets) but also because of their familiarity or a certain institutional inertia In any
event the large variety of circumstances in which the particular features of instruments are
determined gives rise to a wide array of actual policy instruments The review of 50 OPs
conducted as part of the evaluation identified 648 different instruments
This large variety of specific instruments however is mainly accounted for in that they are
often designed as elaborations of well-established approaches but addressing particular needs
and circumstances and also a variety of potential targets So building capacities and
competences can be undertaken for enterprises and their managers of varying degrees of
sophistication and background knowledge and can relate to a variety of matters from technical
issues to general management marketing exporting or more specialised issues such as IP
management The process of capacity building can therefore take many forms
The extent of the provision of access to finance is complicated by the question of whether or
not the provision of direct grants counts as part of this function Some substantial sums were
provided in this form by some of the OPs However generally an expected move towards the
provision of more indirect finance ndash loans and equity through intermediaries - was not as
marked as may have been anticipated General access to finance measures (equity
guarantees and reduction of credit interest) accounted for 38 of the funds allocated by the
Lithuanian OP and repayable financial support for 26 of the Apulian OP equity finance 14
in the case of Icircle-de-France 23 for loans and 35 for equity finance in that of Saxony The
other OPs had rather small amounts devoted to indirect financial instruments if any at all An
explanation offered of the small allocations to these instruments in some OPs was that the
crisis discouraged experimentation in this area that it is relatively difficult and expensive to
manage financial instruments and outside the experience of most Managing Authorities that
relatively large sums are necessary to make any appreciable impact and that results can often
take a long time to materialise
There were considerable differences in the extent to which there was provision of direct
support to enterprises In Saxony over 90 of the funds were in the form of grants and in
Icircle-de-France and in Apulia grants largely paid directly to enterprises accounted for 56 and
41 respectively of the funds allocated In Denmark by contrast no grants were paid directly
to enterprises unless they were partners in projects receiving support for developing clusters
or relationships with universities or in a small number of cases where they received funds to
hire private sector business advisers
It is useful to distinguish between different types of direct support In Poland and in Saxony a
large proportion of the direct support was for investments in innovative undertakings In
Apulia although the main part of support went to individual enterprises or SMEs it was more
evenly split between support for investment (by micro and small firms) and investment in
research In Icircle-de-France the weight of the direct support was for research projects
19
It is also interesting that analysis of a wider group of 50 OPs shows that manufacturing firms
received 33 of support ndash much greater than their share in the economy as a whole It also
showed that more than 50 of support has been directed to low-tech firms
Different forms of business support were available across the OPs including access to public
and private sources of information and advice incubator services and assistance for exporters
Castile amp Leon targeted the improvement of management capacities and this approach was
implicit in a number of other OPs
Approaches to support for innovation also took different forms Overall in the broader range
of OPs examined 24 of support was for RampD and a similar amount for business development
and direct support for RampD in collaborative and non-collaborative projects was a significant
feature of the OPs for Apulia Castile amp Leon Icircle-de-France Lithuania Poland and Saxony but
not in the Czech Republic and Denmark where FP7 was thought to be the appropriate vehicle
In Saxony strengthening the research base of enterprises in the local economy and promoting
the exploitation of knowledge was central to the OP so that the majority of the funds were
provided for investment in fixed capital and in supporting RampD This implied a certain targeting
within the SME population In Icircle-de-France the bulk of the support also went to research
projects and support for technology transfer and incubators though there was also support for
SME creation in distressed areas for access to finance and for social innovation projects In
Denmark the focus was more on promoting clusters and encouraging links between enterprises
and science institutions
In some cases however the picture was more mixed In Lithuania where 38 of funding went
to access to finance measures a further 30 to up-grading technology and processes but
there was also direct support for RampD and RampD infrastructure and support for networking and
clusters promoting innovation Similarly in Apulia there was support for research by SMEs
and measures to promote consulting services for technical innovation regional innovation
partnerships and aid for access to ICT alongside aid to investment in micro and small firms
and credit guarantees and support for tourism
Knowledge transfer also featured in many of the OPs Building relationships between
knowledge institutions and enterprises was an important objective for Denmark as part of
developing regional innovation capacities though the results were mixed at least in part
because of an unresponsive culture in certain universities In other cases these relationships
were promoted by collaborative research projects (Icircle-de-France Saxony) and in the case of
Lithuania by the use of vouchers Overall however it is perhaps surprising that building
relationships between knowledge institutions and enterprises did not have a higher profile
The development of clusters was an instrument used in the Czech Republic Lithuania and
Denmark where in some regions it absorbed a large proportion of the available funds and
where the focus was on emerging sectors such as clean technology energy health and welfare
and the experience economy Cluster support in this case consisted of a relatively complex set
of services provided for cluster members In the Czech Republic and Lithuania cluster
development was itself less developed and related to low-tech sectors with potential for
innovation and growth
Underlying these differences between Programmes there were variations in the approach to
governance This has become an important issue for all of the regions and countries
considered In part this is linked to the aspiration at least to establish transparent evidence-
based policy processes which has brought in the development of monitoring and evaluation
systems but there are more central elements of governance to do with who is involved in
decision-making and how decisions are taken that are also part of the picture The
development of stakeholder involvement in strategy formation in the setting of priorities and
even in elements of implementation was apparent in many of the cases throughout the
20
programming period In Denmark the whole (national and EU) strategy was based from the
beginning on a national consensus established through political and open public debates and
implemented through regional bodies with a strong stakeholder representation In Apulia a
self-evaluation exercise led to new departures in response to the crisis
There were however other issues of governance alluded to in the seminar relating to but the
alignment of the OP with national strategies and the organisational mechanisms adopted to
implement the strategy chosen by each OP These can have considerable influence on the
degree to which the Managing Authority can directly influence the implementation
mechanisms
Finally account must be taken of the differential impacts of the recession In Apulia and
Castile amp Leon there was formal reprogramming largely as a result of the recession and
changes in the instrument set utilised To a certain extent this meant a scaling down of
ambitions when for many enterprises it was a matter of survival rather than developing new
ventures Even here though the story does not always move in the same direction In the case
of Apulia for instance while it was necessary in part to refocus support on the broad range of
enterprises suffering from the recession at the same time the crisis acted as a stimulus to new
thinking after the conduct of a self-evaluation exercise
242 A common framework
Overall it can be seen that within the diversity shown by the eight cases there are at least a
number of common themes which are belong addressed in different ways The question does
arise however of whether it might be possible to go further to offer an explanation of the
diversity
External experts at the seminar advised that a theoretical framework should be sought to
make greater sense of the quantitative material and provide the basis for a more deliberative
judgement on the effectiveness of policy and how support funds can be best spent
One possibility is to take the differing circumstances of the OPs as themselves being an
explanatory factor and in a further step see the differences in the nature of the instruments
deployed as being part of an evolutionary process This approach also has the merit of linking
a debate on instruments with broader considerations in the promotion of innovation and
competitiveness at a European level
The reference in section 1 above to the position of the countries covered by the case studies
and their innovation performance as characterised by the Innovation Union Scoreboard and
in further detail at a regional level by the Regional Innovation Scoreboard 2012 allows a
distinction to be made between countries and regions in four categories - lsquoleadersrsquo lsquofollowersrsquo
those with a moderate lsquoperformancersquo and those lsquocatching-uprsquo The respective positions of the
eight cases have been set out in section 1
The approach suggested at the seminar was essentially to explore the hypothesis that the
overall lsquoinnovationrsquo position of regionscountries determines the types of instrument
used their targeting and ultimately their relative performance It may be that the
categorisation help us explain the differences in the objectives set the instruments that are
appropriate and their targeting and that this in turn also influences the performance that can
be expected Regionscountries for instance that are in the lsquoless developedrsquo categories may
have to strengthen their basic support infrastructure and service provision and the
performance of the enterprise base and that of other important players such as knowledge
institutions public authorities etc The regionscountries in the more lsquoadvancedrsquo positions on
the other hand have to build on their strengths in order to maintain or enhance their position
by promoting more productive research and strengthening the links between the science base
and enterprises
21
This possible framework provides an interesting line of enquiry to be followed up in further
stages of the evaluation It does however also address other issues raised in the seminar
such as whether support should be directed to high-tech enterprises or as was argued in
relation to a number of the countries present the gains to be had from the improvement of
the performance of mid and low-tech firms are more relevant in certain stages of
development
22
3 NEXT STEP THEORY-BASED IMPACT EVALUATIONS
As the implementation of the evaluation study proceeds and the case studies (Task 3) are
being drafted the Team is in the course of identifying three policy instruments to be assessed
by as many theory-based impact evaluations as foreseen in Task 4 The three instruments
should be selected out of the long list of seven instruments suggested in the First Intermediate
Report and in consultation with the European Commission
The Team puts forward hereby a possible list of three policy instruments The main criteria
considered for their selection are
i The degree of representativeness of the typologies of policy instruments used in the 50
OPs as outlined in the First Intermediate Report the most significant categories of
policy instruments in terms of public expenditure are
Business creation and development ie instruments designed to stimulate
investments in the business sector without a predominant emphasis on RampD
and innovation
Support for RampD projects
Support for the development of technological and non-technological innovation
without any research and experimental development activities
ii The feasibility of a theory-based impact evaluation based on a survey of beneficiaries
which implies the availability of a sufficiently large number of beneficiaries and the
possibility to easily get their email contacts also with the help of the Managing
Authority or the implementing body the best option is to have at least some hundreds
beneficiary SMEs for each instrument
iii The importance of the policy instrument within the policy mix of the OP which ensures
the availability of a good amount of information resulting from the case study
regarding in particular its logic of intervention information about beneficiaries and
effectiveness
iv Preference is assigned to instruments on which no other surveys to beneficiaries have
been conducted so far in order not to put excessive burden on the same SMEs which
could undermine their willingness to contribute to our study
Based on these considerations the three policy instruments we propose for a theory-based
impact evaluation are presented in the table below It can be noticed that the list also ensures
geographical balance between Convergence and Competitiveness and Employment region as
well as Old and New Member States and regional and national OPs For the sake of
completeness and comparability for all the seven candidate instruments the pros and cons for
selecting each of them are detailed
23
Table 4 Comparison of the policy instruments and reasons for selection
Proposed for
selection
Type of policy
instrument
Selected policy
instrument
Operational Programme and
type of regioncountry
Descriptive information Specific reason for selection
for a TBIE Possible reasons for
rejection
YES Business creation and development
ldquoAid to investment projects by micro and small enterprisesrdquo
Regional OP Apulia (Italy) - Convergence region
- Old Member State
The instrument supports the purchase of machineries computer systems buildings construction works for enterprises in order to encourage the development of micro and small companies It benefitted more than 3 thousand SMEs For around 30 of beneficiaries grants have been combined with credit guarantees
- Very common type of SME support on which vast literature has been produced
- Very large number of beneficiary SMEs
- The strong relationship already established with local stakeholders and many SMEs would allow to easily and quickly test the surveyrsquos questionnaires before the launch of the three TBIEs
- For some SMEs opportunity to analyse the complimentary efforts of two forms of support (grants and a combination of grants and guarantees) and their respective effectiveness
- None
YES Support for RampD projects
ldquoGrants for Industrial Research and Experimental Developmentrdquo
Regional OP Castilla y Leon (Spain) - Competitiveness and Employment region
- Old Member State
The instrument encourages the development of RampD projects with the purpose of increasing the basis of number of innovative enterprises investment and personnel in RampD In total 759 projects of SMEs have been supported through grants 204 SMEs have conducted their project in collaboration with research organisations
- In analysing the achievement of beneficiary SMEs as well as the behavioural change opportunity to distinguish between SMEs which have realized their projects independently rather than in collaboration with a research centre
- According to the country expert among all the policy instruments of this OP this is the one for which it would be easier to get the contact details of beneficiary SMEs
- Possibility to get active collaboration by the regional authority ADE eg sending out an introductory letter to all
- None
24
Proposed for
selection
Type of policy
instrument
Selected policy
instrument
Operational Programme and
type of regioncountry
Descriptive information Specific reason for selection
for a TBIE Possible reasons for
rejection
SMEs mentioning that they will receive an invitation to a survey and inviting them to reply
YES Support for the development of technological and non-technological innovation
ldquoFinancing of individual projects for SMEsrdquo
National OP Poland Innovative Economy - Convergence country
- New Member State
The instrument provides grants to support the technological innovation of SMEs In particular it aims to stimulate the adoption of more risky and innovative solutions The instrument performed far better than expected 698 projects have been realised up to 2013 by approximately as many SMEs The instrument is delivered by a financial intermediary
- This instrument belongs to the OP which has provided the largest financial contribution to SMEs within the full sample of 50 OPs furthermore this is one of the core instrument of the programme as also reflected in the volume of public contribution which is among the highest of the OP (more than EUR 300 million fully targeted to SMEs)
- Opportunity to examine the role played by the intermediary according to the perceptions and opinions of beneficiary SMEs
- None
NO Support for RampD projects
ldquoRampD project grants for individual enterprisesrdquo
Germany regional OP Saxony - Convergence region
- Old Member State
The instrument provides grants to individual enterprises for supporting the implementation of RampD projects
- Evidence of achievement is already available since the instrument was subject of another evaluation study and enterprise survey a few years ago The TBIE would allow to better qualify the instrumentsrsquo achievements and the causal chain leading to the certain effects
- According to the country experts beneficiary SMEs may be reluctant to participate to another survey
- Less than 200 beneficiary SMEs a lower number as compared with other candidate policy instruments
- It is still uncertain whether it will be possible to get the email addresses of beneficiary SMEs
25
Proposed for
selection
Type of policy
instrument
Selected policy
instrument
Operational Programme and
type of regioncountry
Descriptive information Specific reason for selection
for a TBIE Possible reasons for
rejection
NO Support for the development of technological and non-technological innovation
ldquoSupport for technological upgrade - LEADER LTrdquo
Lithuania - Economic Growth - Convergence country
- New Member State
The instrument supports the increase of productivity in enterprises by supporting production technology upgrading The investment into the acquisition or upgrade of technologies and related internal engineering infrastructures are supported
- Email contacts particularly easy to be collected
- Result indicators are available due to an effective Structural Funds monitoring system and because the instrument was already subject of a previous evaluation study
- Very low number of beneficiary SMEs (69) which would make this instrument less suitable for launching an on-line survey as compared with other candidate instruments
NO Support for the development of technological and non-technological innovation
ldquoSupport for non-technological innovation - PROCESS LTrdquo
Lithuania - Economic Growth - Convergence country
- New Member State
The instrument aims to increase productivity in enterprises by implementing modern management methods and processes except of personnel management systems The purchase of external consulting services is supported in order to upgrade enterprises management processes
- Email contacts particularly easy to be collected
- Result indicators are available due to an effective Structural Funds monitoring system and because the instrument was already subject of a previous evaluation study
- The instrument is considered highly relevant by the target beneficiaries
- Very low number of beneficiary SMEs (119)
- As compared with other categories of policy instruments support for non-technological innovation is relatively less significant and representative of the typical forms of support provided to SMEs in the EU
NO Support for networking
ldquoInteraction on Innovationrdquo later merged with ldquoCluster relationshiprdquo
Denmark Innovation and Knowledge OP - Competitiveness and Employment country
- Old Member State
The policy instrument aims at analysing opportunities for creating clusters promoting networks and the formation of clusters of SMEs in particular as well as clusters of supplier networks for SMEs These objectives are pursued by providing grants to SMEs in partnership with universities (according to the triple helix model)
- Opportunity to better analyse the effects of a policy instrument on which a vast amount of literature has been produced
- Opportunity to dig into the collaboration mechanisms between SMEs and universities
- As compared with other categories of policy instruments support for networking is relatively less significant and representative of the typical forms of support provided to SMEs in the EU
- The number and characteristics of SMEs benefitting from this instrument remain unknown even after implementing the case
26
Proposed for
selection
Type of policy
instrument
Selected policy
instrument
Operational Programme and
type of regioncountry
Descriptive information Specific reason for selection
for a TBIE Possible reasons for
rejection
study The lack of data at policy instrument level prevents from identifying the beneficiary SMEs to which launching the on-line survey
27
4 ANNEX SEMINAR PARTICIPANTS
Name Description Organisation
DG REGIO Evaluation Unit
Rudolf Niessler Director DG REGIO B Policy
Veronica Gaffey Head of Evaluation Unit DG REGIO B2
Marielle Richeacute Evaluation Unit DG REGIO B2
Kai Stryczynski Deputy Head of Unit DG REGIO B2
Daniel Mouqueacute Evaluation Unit DG REGIO B2
CSIL Evaluation Team
Massimo Florio Evaluation team Director CSIL
Julie Pellegrin Evaluation team Project Manager CSIL
Silvia Vignetti Evaluation team CSIL
Emanuela Sirtori Evaluation team CSIL
Mike Coyne Evaluation team CSES
Malin Carlberg Evaluation team CSES
Anna-Maria Krarup Evaluation team CSES
Christian Koehler Case Study Saxony Centre for European Economic Research (ZEW)
Jaime del Castillo Case Study Castile amp Leon President INFYDE
Agnė Paliokaitė Case Study Lithuania Visionary Analytics
Elena Jarocinska Case Study Poland
Commission Officials
Katja Reppel Deputy Head of Unit Competence Centre Smart and Sustainable Growth
DG REGIO G1
Bernd Reichert Head of Unit H2020 SME EASME
Peter Wragg Head of Unit SME Access to Markets DG GROW F2
Jean David Malo Head of Unit SMEs Financial Instruments amp State Aid DG RTD B3
28
Istvan Nemeth Policy Officer - Enterprise Europe Network DG GROW F2
External Experts
Harvey Armstrong Professor Emeritus in the Department of Geography University of Sheffield
Robert Picciotto Visiting Professor Kings College London
Mark Sanders Professor University of Utrecht
Jiri Blazek Associate Professor Charles University Prague
Stakeholders ndash Case Studies
Adriana Agrimi Manager of RampI Policy Instrument Apulia Managing Authority
Kasper Westh Senior official Growth Forum Secretariat South Denmark
Simona Daukilaite
Deputy Head of the Economic Growth Operational Programme
Economic Growth OP Lithuania Managing Authority
Beatriz Casado Saenz Vice-General Director ADE (Development Agency Castile amp Leon)
Tomasz Kula Analysis and Evaluation Team Competitiveness and Innovation Department
Ministry of Infrastructure and Development (PL)
Representatives of other Work Packages
Terry Ward WP 1 Applica
Andreas Resch WP 3 Metis-Vienna
Anda Berenyi WP 4 KPMG
LEGAL NOTICE
This document has been prepared for the European Commission however it reflects the views only of the authors and the Commission cannot be held responsible for any use which may be made of the information
contained therein
More information on the European Union is available on the Internet (httpwwweuropaeu)
Luxembourg Publications Office of the European Union 2014
ISBN [number]
doi[number]
copy European Union 2015
Reproduction is authorised provided the source is acknowledged
Printed in [Country]
PRINTED ON ELEMENTAL CHLORINE-FREE BLEACHED PAPER (ECF)
PRINTED ON TOTALLY CHLORINE-FREE BLEACHED PAPER (TCF) PRINTED ON RECYCLED PAPER
PRINTED ON PROCESS CHLORINE-FREE RECYCLED PAPER (PCF)
Europe Direct is a service to help you find answers to your questions about the European Union
Freephone number ()
00 800 6 7 8 9 10 11
() The information given is free as are most calls (though some operators phone boxes or hotels may charge you)
3
Second Intermediate Report
September ndash 2015
4
This report is part of a study carried out by a Team selected by the Evaluation Unit DG
Regional and Urban Policy European Commission through a call for tenders by open
procedure No 2014CE16BAT002
The consortium selected comprises CSIL ndash Centre for Industrial Studies (lead partner
Italy) CSES ndash Centre for Strategy amp Evaluation Services (UK) and ZEW ndash Centre for
European Economic Research (Germany)
Subcontracting companies are CASE ndash Center for Social and Economic Research
(Poland) INFYDE ndash Informatioacuten y Desarrollo SL (Spain) Visionary Analytics (Lithuania)
and WIFO ndash OumlsterreichischesInstitutfuumlrWirtschaftsforschung (Austria)
The Core Team comprises
Scientific Director Massimo Florio CSIL and University of Milan
Project Manager Julie Pellegrin CSIL
Advisory Committee Brad Graeme Philip Astbury (University of Melbourne) Harvey Armstrong (University of Sheffield) David Audretsch (Indiana University) Mateja Dermastia (Anteja ECG) and Robert Picciotto (Kings College)
Senior experts Laura Delponte (CSIL) Georg Licht (ZEW) James Rampton (CSES) and Davide Sartori (CSIL)
Task managers Silvia Vignetti (CSIL) Mike Coye (CSES) Emanuela Sirtori (CSIL) Mark Whittle (CSES) Julie Pellegrin (CSIL)
Statistical Experts Donatella Cheri (CSIL) Stefania Pelizzari (CSIL) and Silvia Salini (CSIL and University of Milan)
Junior Experts Chiara Pancotti (CSIL)
Quality manager Paola Govoni (CSIL)
A network of Country Experts provides the geographical coverage for the field analysis Viktor Kveton (CZ) Anna-Maria Krarup (DK) Mike Coyne (DK) Christian Kohler (DE) Silke Haarich (ES) Julie Pellegrin (FR) Silvia Vignetti (IT) Simonas Gausas (LT) Agnė Paliokaitė (LT) Elena Jarocinka (PL) Jan Teresiński (PL) The authors express their gratitude to the stakeholders who agreed to provide data and information The authors are also grateful for the very helpful insights from the EC staff and particularly to Veronica Gaffey Marielle Richeacute Daniel Mouqueacute and Kai Stryczynski and other members of the Steering Group The authors are responsible for any remaining errors or omissions
Quotation is authorised as long as the source is acknowledged along with the fact that
the results are provisional
5
Second Intermediate Report
TABLE OF CONTENTS
LIST OF ABBREVIATIONS 6
FOREWORD 7
1 OVERVIEW OF THE SELECTED OPERATIONAL PROGRAMMES 8
2 RESULTS OF THE SEMINAR 16
21 Targeting high vs low tech firms 16
22 Promoting widespread vs selective instruments 16
23 ERDF and the regional policy mix 17
24 Synthesis 17
3 NEXT STEP THEORY-BASED IMPACT EVALUATIONS 22
4 ANNEX SEMINAR PARTICIPANTS 27
6
LIST OF ABBREVIATIONS
BERD Business Expenditure in Research and Development
CONV Convergence (Cohesion Policy objective)
COMP Competitiveness and Employment (Cohesion Policy objective)
CZ Czech Republic
DE Germany
DG REGIO Directorate-General for Regional and Urban Policy
DK Denmark
EC European Commission
ERDF European Regional Development Fund
ES Spain
EU European Union
EUR Euro
FDI Foreign Direct Investment
FR France
GDP Gross Domestic Product
GERD Gross Expenditure in Research and Development
GVA Gross Value Added
ICT Information and Communication Technology
IT Italy
LT Lithuania
M EUR Million Euro
MA Managing Authority
MS Member State
MULTIREG Multiregional
NACE Nomenclature statistique des activiteacutes eacuteconomiques (Statistical
classification for economic activities)
NAT National
NUTS Nomenclature of territorial units for statistics
OP Operational Programme
PL Poland
RampD Research and Development
RampTD Research and technological development
REG Regional
RTDI Research technological development and innovation
SF Structural Fund
SME Small and medium enterprise
TBIE Theory-based impact evaluation
ToR Terms of Reference
WP Work package
7
FOREWORD
This is the Second Intermediate Report of the ex-post evaluation of Support to Small and
Medium Enterprises (SMEs) ndash Increasing Research and Innovation in SMEs and SME
development The objective of the evaluation is to assess the effectiveness and the impact of
the European Regional Development Fund (ERDF) with regards to support for innovation and
the development of SMEs in the European Union over the 2007-2013 programming period
This report presents the results of Tasks 3 and 5 ie the eight case studies in selected
regions and the stakeholder seminar organised in Brussels the 29th of April 2015 to discuss
the findings from the different tasks and especially from the case studies The volume at hand
contains an overview of the eight selected case studies as well as an overview of the
organisation and results of the seminar while the eight case studies form separate self-
standing reports
8
1 OVERVIEW OF THE SELECTED OPERATIONAL PROGRAMMES
This Chapter provides an introductory overview of Operational Programmes (OPs) supporting
the growth and innovation processes of Small and Medium Enterprises (SMEs) which are
subject of the case studies included and discussed in this report
The Terms of Reference indicate a list of 50 Operational Programmes co-financed in the period
2007-2013 by the European Regional Development Fund (ERDF) in 23 EU Member States All
50 OPs and policy instruments targeted to SMEs included therein have been examined The
results of this preliminary analysis are included in the First Intermediate Report From the full
list of 50 OPs the evaluation team has selected 8 OPs for a more in-depth analysis which are
1 Italy ndash Apulia (2007IT161PO010) carried out as a pilot case study
2 France ndash Icircle-de-France (2007FR162PO012)
3 Germany ndash Sachsen (2007DE161PO004)
4 Denmark - Innovation and Knowledge (2007DK162PO001)
5 Spain ndash Castilla y Leoacuten (2007ES162PO009)
6 Czech Republic ndash Business and Innovation (2007CZ161PO004)
7 Poland ndash Innovative Economy (2007PL161PO001)
8 Lithuania ndash Economic Growth (2007LT161PO002)
These OPs have been selected in order to fulfil the following conditions
to ensure a balance between regional and national cases
to ensure a balance between Convergence and regional Competitiveness objectives
also between EU 12 and EU 15
to include territories with different SME typologies
to account for strategies based on different mixes of policy instruments
the presence of a collaborative Managing Authority in order to ease data collection
The result of the selection is a list of Programmes which constitute a purposeful set that
assures the greatest representativeness in terms of socio-economic context and regional
strategy and offers the opportunity to discover relevant lessons on mechanisms concerning
SME support
9
Figure 1 Map of OPs selected for in-depth study
Denmark ndash Innovation
and knowledge
(2007DK162PO001)
Germany ndash Saxony
(2007DE161PO004)
France ndash Icircle-de-France
(2007FR162PO012)
Spain ndash Castilla y Leoacuten
(2007ES162PO009)
Italy ndash Apulia
(2007IT161PO010)
Lithuania ndash Economic
Growth
(2007LT161PO002)
Czech Republic ndash
Business and Innovation
(2007CZ161PO004)
Poland ndash Innovative
Economy
(2007PL161PO001)
Source CSIL
These eight OPs have been evaluated in order to enrich the preliminary hypotheses derived in
Task 1 on the mix of policy instruments adopted to promote SME growth and innovation across
the EU and on their outcomes The diversity of OPs included in the sample allows to account
for different regional and national specificities thus bringing context variables more forcefully
into the picture
In particular the selection of OPs both at regional (such as Apulia or Saxony the former at
NUTS 2 level the latter at NUTS 1 level) and national level (such as the Polish or Danish
programme) in eight different countries allows providing a panorama of different institutional
context features and regional innovation systems in place which can play an important role on
the delivery mechanisms of support along with their effectiveness The analysis encompasses
areas which have been touched to a different extent by the economic recession and which
belong to different Cohesion Policy objectives which is likely to affect their capacity to react to
the crisis and overcome structural barriers hindering SME development and innovativeness
The number of SMEs based in the areas targeted by the OPs range from nearly two hundred
thousand as in Saxony or in small countries such as Denmark and Lithuania to almost or
more than 1 million as in the Czech Republic and Poland This variance is reflected in the
volume of ERDF contribution dedicated to SMEs which is highest in Poland and Czech Republic
However the sample includes also an example of OP which dedicates a relatively limited
amount of ERDF to SMEs in spite of the large number of SMEs in the region it is the OP of Icircle-
de-France
10
Table 1 Eight Operational Programmes observed
OP
Cohesion
Policy
objective
EU 12
(ldquoNewrdquo
Member
States) or
EU15 (ldquoOld
Member
States)
NUTS level
Volume of EU
contribution for WP2
themes (EUR
million)
of EU contribution
for WP2 themes over
total contrib for
the OP
Total
population
of the area
covered by
the OP
GDP (PPS)
per capita
(average
2007-2011)
(EUR)
Total
number of
SMEs ()
Total
intramural
expenditure
in RampD
(GERD) ndash
2007-2011
average
Business
expenditure
in RampD
(BERD) ndash
2007-2011
average
1 Italy ndash Apulia Convergence EU15 NUTS 2 region
645 25 4 million 16640 218 thousand
(in 2011)
075 of
GDP
017 of
GDP
2 France ndash Icircle-
de-France
Competitiveness
and Employment EU15
NUTS 2
region 60 42 118 million 43360
727 thousand
(in 2011)
298 of
GDP
198 of
GDP
3 Germany -
Saxony Convergence EU15
NUTS 2
region 846 29 42 million 21040
140 thousand
(in 2012)
277 of
GDP
131 of
GDP
4 Denmark - Innovation and
knowledge
Competitiveness and Employment
EU15 NUTS 0 country
203
82
55 million 30660 213 thousand
(in 2013)
274 of
GDP
187 of
GDP
5 Spain ndash Castilla
y Leoacuten
Competitiveness
and Employment EU15
NUTS 2
region 269 36 255 million 23860
131 thousand
(in 2013)
109 of
GDP
061 of
GDP
6 Czech Republic - Business and
Innovation
Convergence EU12
NUTS 0
(except capital city
region)
2282 73 105 million 16960 928 thousand
(in 2013)
112 of
GDP
078 of
GDP
7 Poland - Innovative
Economy
Convergence EU12 NUTS 0 country
5287 62 38 million 14740 15 million (in
2013)
066 of
GDP
020 of
GDP
8 Lithuania -
Economic
Growth
Convergence EU12 NUTS 0
country 760 25 3 million 15440
115 thousand
(in 2013)
085 of
GDP
024 of
GDP
Source Eurostat and EC Performance Review 2014
Note () CSIL elaboration of National Statistical Office data (NACE sectors B-N excl K)
11
As shown in Table 1 the heterogeneity of areas covered by the case studies can be highlighted
also if considering the total intramural RampD expenditure or business RampD expenditure
According to the Global Innovation Index 2014 (Cornell University INSEAD and WIPO 2014)1
which combines innovation input measures and output measures the EU areas of the sample
cover a wide range or ranking categories (see Table 2 below)
Table 2 Global Innovation Index ranking ndash 2014
Global Innovation Index 2014 ranking
Top 10 11-20 21-30 31-40 40-60
UK Ireland Austria Cyprus Croatia
Sweden Germany France Italy Bulgaria
Finland Belgium Portugal Poland
Netherlands Estonia Latvia Greece
Denmark Malta Hungary Romania
Luxembourg Czech Republic
Slovakia
Spain Lithuania
Slovenia
Note The eight case studies are indicated by the asterisks
Source CSIL based on Cornell University INSEAD and WIPO (2014)
A more focused picture can be obtained using data from the Innovation Union Scoreboard
2012 covering the years 2007 ndash 2011 which ranks not only Member States but also regions in
terms of their performance against a set of indicators of innovation2 Specifically it places
countries and regions in four categories distinguishing between lsquoleadersrsquo lsquofollowersrsquo those
with a moderate lsquoperformancersquo and those lsquocatching-uprsquo Table 3 shows the position attributed
by the Scoreboard to the target area that have been examined in case studies
Table 3 Innovation Scoreboard Attribution
Leader Follower Moderate Modest
Catching-up
Denmark
Icircle-de-France
Saxony
Castile amp Leoacuten
Czech Republic
Poland
Apulia
Lithuania
Source European Innovation Scoreboard 2007 amp Regional Innovation Scoreboard 2012 Note Convergence region
Other regions Competitiveness amp Employment
According to the analysis of the SME-related policy instruments performed as part of Task 1
the eight OPs account for different intervention strategies as reflected in the mix of policy
instruments implemented (Figure 2) and the mode of delivery of such instruments (Figure 3)
Actually the sample includes some OPs whose primary aim is to promote business creation
and development (such as the Czech Spain Italian and Lithuanian OPs) others where public
expenditure is more concentrated on support for RampD projects (such as the German and the
1 Cornell University INSEAD and WIPO (2014) The Global Innovation Index 2014 The Human Factor In innovation
Fontainebleau Ithaca and Geneva 2 The Regional Innovation Scoreboard 2012 applies the same methodology as far as it was possible to Member State
and regions Because of data availability problems at a regional level it was not possible to exactly replicate the
methodology but the results obtained were checked for consistency with the national level scoreboard One other
change was that those regions appearing in the last category were referred to as having lsquomodestrsquo innovation
performance
12
French OPs) for increasing technological and non-technological innovation (Polish OP) One OP
is focused on increasing networking and knowledge and technology transfer (Danish OP)
Figure 2 Paid amount by type of policy instruments in the eight OPs
0
10
20
30
40
50
60
70
80
90
100
CZ - CzechRepublic
DE - Saxony DK - Denmark ES - Castilla yLeoacuten
FR - Icircle deFrance
IT - Apulia LT - Lithuania PL - Poland
Support for RampD projects
Support for improving capacities
Networking
Knowledge and technology transfer
Internationalisation and visibility
Infrastructures and related services
Generic access to finance
Development of technological or non-technological innovation
Creation of innovative companies
Business creation and development
Access and diffusion of ICT
Note paid amount refers to both ERDF and public funds paid to beneficiaries
The public support has been largely delivered in the form of grants in five out of the eight
considered OPs which is in line with the predominance of traditional direct support across the
entire EU There are however some exceptions in Lithuania and especially Poland more
often public support has been conveyed through packages of support usually combining
grants with consulting services Equity finance is quite relevant in Icircle-de-France Lithuania and
Saxony while some preference for using repayable financial support can be observed in Apulia
and the Czech Republic
13
Figure 3 Paid amount by mode of delivery in the eight OPs
0 10 20 30 40 50 60 70 80 90 100
CZ - CzechRepublic
DE - Saxony
DK - Denmark
ES - Castilla yLeoacuten
FR - Icircle de France
IT - Apulia
LT - Lithuania
PL - Poland
Equity finance + Repayable financial support
Consulting services + training + search of businesspartnersConsulting advice technical assistance
Consulting advice technical assistance +Information campaing eventsEquity finance
Grants
Grants + consulting services + training
Grants + Consulting advice technical assistance
Grants + Loans + Information campaigns
Grants + Provision of infrastructure and services +Consulting advice technical assistanceGrants + training
Information campaign events seminars
Provision of infrastructure and services +Consulting advice technical assistanceProvision of infrastructures
Repayable financial support
Source CSIL elaboration Note Paid amount refers to both ERDF and public contributions
14
The eight OPs have provided of support to around 48 thousand SMEs representing 20 of the
total number of beneficiary SMEs ascribable to the full sample of 50 OPs The number of
beneficiary SMEs is the highest for the OPs of Poland and Lithuania with more than 10
thousand and 12 thousand beneficiaries on the other hand the French OP has supported less
than 300 SMEs
Figure 4 Number of beneficiary SMEs of the eight OPs
00
10
20
30
40
50
60
70
80
90
100
0
2000
4000
6000
8000
10000
12000
14000
PL - Poland LT - Lithuania IT - Apulia ES - Castilla yLeoacuten
CZ - CzechRepublic
DE - Saxony FR - Icircle de France
Number of beneficiary SMEs Share of beneficiary SMEs over the total number of SMEs in the target area
Source CSIL elaboration Note Missing data for Denmark since the exact number of beneficiary SMEs is not available
In order to assess the intervention strategy of the OPs besides the absolute number of
beneficiaries it is particularly interesting to look at the distribution of beneficiaries according to
their size and technology intensity The analysis on the 50 OPs has revealed that the micro
enterprises generally represent the large majority of SMEs benefiting from ERDF support
(54) followed by small (30) and medium enterprises (16) The analysis has documented
the predominantly low technological intensity of beneficiary SMEs the majority of SMEs (53)
belong to sectors with a low share of business RampD expenditure over the value added by
sector However it is also noted that almost one quarter of all beneficiaries (24) has a
medium-high technological level Medium low-tech or high tech companies represent a lower
share of all the identified beneficiaries ie 14 and 9 respectively
The proportion of beneficiary SMEs in the eight OPs provides a more diversified picture (Figure
5 and 6) The Czech OP Enterprise and Innovation has directed the public support mainly to
small and medium size companies with a fair distribution in terms of technology intensity
Conversely the regional Apulia OP target micro enterprises characterised by either a low or a
medium-high technology intensity The Lithuanian OP has mostly supported low-tech
companies without significant differentiation in terms of size
15
Figure 5 Share of beneficiary SMEs by size class in the eight OPs
0
10
20
30
40
50
60
70
80
90
100
CZ - Czech Republic(Innov)
ES - Castilla y Leoacuten FR - Icircle de France IT - Apulia LT - Lithuania PL - Poland
Micro enterprises Small enterprises Medium enterprises
Source CSIL elaboration Note Missing data for Saxony and Denmark since the size class of beneficiary SMEs is not
available
Figure 6 Share of beneficiary SMEs by technology intensity level in the eight OPs
0
10
20
30
40
50
60
70
80
90
100
CZ - CzechRepublic
DE - Saxony ES - Castilla yLeoacuten
FR - Icircle deFrance
IT - Apulia LT - Lithuania PL - Poland
Low tech
Medium-low tech
Medium-high tech
High tech
Source CSIL elaboration Missing data for Denmark since the level of technological intensity cannot be estimated due
to missing data on sectoral disaggregation of beneficiary SMEs
Whether the characteristics of beneficiary SMEs simply mirror the specific characteristics of the
population of SMEs in the area covered by the OPs or result from different logics of
intervention underneath the OPs or from a mix of the two possible reasons is investigated in
the case studies
16
2 RESULTS OF THE SEMINAR
The aim of a ldquostakeholder seminarrdquo held on 29th April 2015 was to present the preliminary
findings and the main issues identified in other tasks undertaken for this Work Package and
especially those emerging from the eight case studies of Operational Programmes and to
discuss the policy implications and main lessons with Commission staff the evaluation team
members (and representatives of other Work Packages) academic experts and people
involved in the implementation of the Operational Programmes on the ground (see list of
participants in Annex) The following provides an overview setting out the main highlights in
the results from the presentations of the eight case studies
The seminar was organised in relation to three themes as follows
1) Targeting high vs low tech firms the case studies of Lithuania Saxony and Poland
2) Promoting widespread vs selective instruments the case studies of Apulia Castile amp
Leon and the Czech Republic
3) ERDF and the regional policy mix the case studies of Icircle-de-France and Denmark
Other issues that it was intended to highlight during the course of the discussion included
The issue of direct versus indirect support
Economic development versus anti-cyclical intervention
Supporting enabling organisations
Supporting individual enterprises as against partnerships
21 Targeting high vs low tech firms
In Lithuania the challenge was to build competitive advantage on the basis of labour-intensive
technologies The traditional sectors were in need of upgrading and the majority of the funds
were allocated to low tech companies In Saxony there was a demand driven approach but
also a realisation that low tech firms can improve competitiveness through cost reduction
Technologyprocess upgrading as subset to innovation can be justified but concentration of
spending on RampD has established Saxony as one of the German RampD powerhouses and
contributed to market access an increase in turnover and employment growth In Poland it
was thought that for countries that are not leading technological change the returns from
innovation are particularly high in low-tech manufacturing sectors but that as a country
approaches the technological frontier the policy should focus on RampD and innovative start-up
In discussion a central question was posed where does the investment pay most
22 Promoting widespread vs selective instruments
In Apulia the strategy was adjusted through re-programming to provide broad support to
SMEs to allow them to survive during the crisis and recession a dual approach was adopted
with selective support for SMEs with the internal capacity to manage innovation processes
including demand-side measures In Castile amp Leon the impact of the crisis was also intense
and broadly-based support was necessary but there were also efforts to build up the support
infrastructure and to provide in-depth support to enterprises identified as capable of innovation
and growth In the Czech Republic there was again both broadly-based and selective support
especially to address the ldquoBranch-plant syndromerdquo (where branches of international firms allow
little room for independent development by local suppliers) There was a focus on transferring
RampD results into production by stimulating demand for RampD results with 13 of the funds
going to support for innovation activities
17
23 ERDF and the regional policy mix
The last two cases are examples of OPs for areas which are relatively prosperous and where
RampD and innovation are relatively strong The ERDF budgets however were relatively small
In the Icircle-de-France (IdF) there was a pragmatic and demand-driven implementation
palliating perceived gaps in regional public support and enlarging the available financial
support targeting high growth high tech sectors appears to pay off in the IdF context In
Denmark there was a more strategic approach which was well integrated into national
strategy but with flexible implementation with strong stakeholder involvement in 6 regional
programmes There were interesting applications of the triple helix model amp successful cluster
developments
In all cases there was comment on the strength of monitoring and evaluation systems These
varied considerably from a relatively under-developed system in Apulia to a relatively strong
one in Icircle-de-France Denmark had organised a counterfactual analysis of enterprises
supported by the OP as against similar enterprises not receiving support
24 Synthesis
241 Diversity across themes
The first impression made by the presentations was the diversity of the interventions in the
eight cases There are several dimensions to these differences beginning with the context in
which the OP was implemented where there were differences relating to
The size of the regionsMember States targeted The absolute and relative size of the Programmes within the regions and countries in which
they operated and the effects that could reasonably be expected from them The size and structure of the SME population its sectoral distribution and its capacities
and assets The economic context within which the OPs operated and especially the way that the
economic crisis impacted on each area over the course of the programming period The endowment of SME and innovation support infrastructure and culture determining the
base on which the OPs could build
In fact the detailed investigations have confirmed the importance of the specific context in
which each OP was conceived and implemented for the determination of the nature of the
policy instruments used and the results to be expected from them This context is important
for any fair assessment of the achievements or otherwise of each Programme
Nonetheless when it came to the processes used to promote SMEs and innovation the
differences could often be considered as involving variations around a series of central themes
In all the cases considered there was a strong emphasis on promoting innovation as a
central objective yet this was done in a variety of ways and had differing relationships with
the objective of SME promotion In a number of cases support for SMEs was itself very much
seen as part of this process of encouraging innovation including in the case of the Icircle-de-
France where it involved encouraging new forms of enterprise dedicated to pursuing social
innovation In other cases however there was a clear commitment to provide general support
to SMEs and especially after the extent of the economic crisis became apparent some re-
programming to ensure this
Consequently targeting policies were not as clear cut as might have been expected There
were cases where SMEs were targeted directly ndash Apulia and Castile amp Leon but even here
there was also an element of trying to ensure that enterprises that were capable of benefitting
from support were the one to receive it while elsewhere a subtle lsquosoft targetingrsquo was more
evident where the instruments were shaped to achieve a certain selectivity not by defining
exclusions but by requiring for instance a commitment to change and growth on the part of
18
participants In Denmark for example those encouraged to become members of cluster
organisations had to be interested in developing their growth potential if their participation
was to serve any purpose This in effect led to a self-exclusion by those not willing to play
along with the support offered
The nature of the instruments used to implement OPs were shaped by a number of factors
Just as the objectives of an OP must take into account a large variety of details relating to the
circumstances of the relevant region or country so the precise characteristics of the
instruments to be applied must reflect not only the particular purposes for which they are to be
used the nature of the target group to be addressed and the economic and social
circumstances of the area concerned but the legacy of past interventions as well in the form
of existing support infrastructure and the capabilities developed in preceding periods In other
words support instruments are built on past actions both for positive reasons (exploiting
existing assets) but also because of their familiarity or a certain institutional inertia In any
event the large variety of circumstances in which the particular features of instruments are
determined gives rise to a wide array of actual policy instruments The review of 50 OPs
conducted as part of the evaluation identified 648 different instruments
This large variety of specific instruments however is mainly accounted for in that they are
often designed as elaborations of well-established approaches but addressing particular needs
and circumstances and also a variety of potential targets So building capacities and
competences can be undertaken for enterprises and their managers of varying degrees of
sophistication and background knowledge and can relate to a variety of matters from technical
issues to general management marketing exporting or more specialised issues such as IP
management The process of capacity building can therefore take many forms
The extent of the provision of access to finance is complicated by the question of whether or
not the provision of direct grants counts as part of this function Some substantial sums were
provided in this form by some of the OPs However generally an expected move towards the
provision of more indirect finance ndash loans and equity through intermediaries - was not as
marked as may have been anticipated General access to finance measures (equity
guarantees and reduction of credit interest) accounted for 38 of the funds allocated by the
Lithuanian OP and repayable financial support for 26 of the Apulian OP equity finance 14
in the case of Icircle-de-France 23 for loans and 35 for equity finance in that of Saxony The
other OPs had rather small amounts devoted to indirect financial instruments if any at all An
explanation offered of the small allocations to these instruments in some OPs was that the
crisis discouraged experimentation in this area that it is relatively difficult and expensive to
manage financial instruments and outside the experience of most Managing Authorities that
relatively large sums are necessary to make any appreciable impact and that results can often
take a long time to materialise
There were considerable differences in the extent to which there was provision of direct
support to enterprises In Saxony over 90 of the funds were in the form of grants and in
Icircle-de-France and in Apulia grants largely paid directly to enterprises accounted for 56 and
41 respectively of the funds allocated In Denmark by contrast no grants were paid directly
to enterprises unless they were partners in projects receiving support for developing clusters
or relationships with universities or in a small number of cases where they received funds to
hire private sector business advisers
It is useful to distinguish between different types of direct support In Poland and in Saxony a
large proportion of the direct support was for investments in innovative undertakings In
Apulia although the main part of support went to individual enterprises or SMEs it was more
evenly split between support for investment (by micro and small firms) and investment in
research In Icircle-de-France the weight of the direct support was for research projects
19
It is also interesting that analysis of a wider group of 50 OPs shows that manufacturing firms
received 33 of support ndash much greater than their share in the economy as a whole It also
showed that more than 50 of support has been directed to low-tech firms
Different forms of business support were available across the OPs including access to public
and private sources of information and advice incubator services and assistance for exporters
Castile amp Leon targeted the improvement of management capacities and this approach was
implicit in a number of other OPs
Approaches to support for innovation also took different forms Overall in the broader range
of OPs examined 24 of support was for RampD and a similar amount for business development
and direct support for RampD in collaborative and non-collaborative projects was a significant
feature of the OPs for Apulia Castile amp Leon Icircle-de-France Lithuania Poland and Saxony but
not in the Czech Republic and Denmark where FP7 was thought to be the appropriate vehicle
In Saxony strengthening the research base of enterprises in the local economy and promoting
the exploitation of knowledge was central to the OP so that the majority of the funds were
provided for investment in fixed capital and in supporting RampD This implied a certain targeting
within the SME population In Icircle-de-France the bulk of the support also went to research
projects and support for technology transfer and incubators though there was also support for
SME creation in distressed areas for access to finance and for social innovation projects In
Denmark the focus was more on promoting clusters and encouraging links between enterprises
and science institutions
In some cases however the picture was more mixed In Lithuania where 38 of funding went
to access to finance measures a further 30 to up-grading technology and processes but
there was also direct support for RampD and RampD infrastructure and support for networking and
clusters promoting innovation Similarly in Apulia there was support for research by SMEs
and measures to promote consulting services for technical innovation regional innovation
partnerships and aid for access to ICT alongside aid to investment in micro and small firms
and credit guarantees and support for tourism
Knowledge transfer also featured in many of the OPs Building relationships between
knowledge institutions and enterprises was an important objective for Denmark as part of
developing regional innovation capacities though the results were mixed at least in part
because of an unresponsive culture in certain universities In other cases these relationships
were promoted by collaborative research projects (Icircle-de-France Saxony) and in the case of
Lithuania by the use of vouchers Overall however it is perhaps surprising that building
relationships between knowledge institutions and enterprises did not have a higher profile
The development of clusters was an instrument used in the Czech Republic Lithuania and
Denmark where in some regions it absorbed a large proportion of the available funds and
where the focus was on emerging sectors such as clean technology energy health and welfare
and the experience economy Cluster support in this case consisted of a relatively complex set
of services provided for cluster members In the Czech Republic and Lithuania cluster
development was itself less developed and related to low-tech sectors with potential for
innovation and growth
Underlying these differences between Programmes there were variations in the approach to
governance This has become an important issue for all of the regions and countries
considered In part this is linked to the aspiration at least to establish transparent evidence-
based policy processes which has brought in the development of monitoring and evaluation
systems but there are more central elements of governance to do with who is involved in
decision-making and how decisions are taken that are also part of the picture The
development of stakeholder involvement in strategy formation in the setting of priorities and
even in elements of implementation was apparent in many of the cases throughout the
20
programming period In Denmark the whole (national and EU) strategy was based from the
beginning on a national consensus established through political and open public debates and
implemented through regional bodies with a strong stakeholder representation In Apulia a
self-evaluation exercise led to new departures in response to the crisis
There were however other issues of governance alluded to in the seminar relating to but the
alignment of the OP with national strategies and the organisational mechanisms adopted to
implement the strategy chosen by each OP These can have considerable influence on the
degree to which the Managing Authority can directly influence the implementation
mechanisms
Finally account must be taken of the differential impacts of the recession In Apulia and
Castile amp Leon there was formal reprogramming largely as a result of the recession and
changes in the instrument set utilised To a certain extent this meant a scaling down of
ambitions when for many enterprises it was a matter of survival rather than developing new
ventures Even here though the story does not always move in the same direction In the case
of Apulia for instance while it was necessary in part to refocus support on the broad range of
enterprises suffering from the recession at the same time the crisis acted as a stimulus to new
thinking after the conduct of a self-evaluation exercise
242 A common framework
Overall it can be seen that within the diversity shown by the eight cases there are at least a
number of common themes which are belong addressed in different ways The question does
arise however of whether it might be possible to go further to offer an explanation of the
diversity
External experts at the seminar advised that a theoretical framework should be sought to
make greater sense of the quantitative material and provide the basis for a more deliberative
judgement on the effectiveness of policy and how support funds can be best spent
One possibility is to take the differing circumstances of the OPs as themselves being an
explanatory factor and in a further step see the differences in the nature of the instruments
deployed as being part of an evolutionary process This approach also has the merit of linking
a debate on instruments with broader considerations in the promotion of innovation and
competitiveness at a European level
The reference in section 1 above to the position of the countries covered by the case studies
and their innovation performance as characterised by the Innovation Union Scoreboard and
in further detail at a regional level by the Regional Innovation Scoreboard 2012 allows a
distinction to be made between countries and regions in four categories - lsquoleadersrsquo lsquofollowersrsquo
those with a moderate lsquoperformancersquo and those lsquocatching-uprsquo The respective positions of the
eight cases have been set out in section 1
The approach suggested at the seminar was essentially to explore the hypothesis that the
overall lsquoinnovationrsquo position of regionscountries determines the types of instrument
used their targeting and ultimately their relative performance It may be that the
categorisation help us explain the differences in the objectives set the instruments that are
appropriate and their targeting and that this in turn also influences the performance that can
be expected Regionscountries for instance that are in the lsquoless developedrsquo categories may
have to strengthen their basic support infrastructure and service provision and the
performance of the enterprise base and that of other important players such as knowledge
institutions public authorities etc The regionscountries in the more lsquoadvancedrsquo positions on
the other hand have to build on their strengths in order to maintain or enhance their position
by promoting more productive research and strengthening the links between the science base
and enterprises
21
This possible framework provides an interesting line of enquiry to be followed up in further
stages of the evaluation It does however also address other issues raised in the seminar
such as whether support should be directed to high-tech enterprises or as was argued in
relation to a number of the countries present the gains to be had from the improvement of
the performance of mid and low-tech firms are more relevant in certain stages of
development
22
3 NEXT STEP THEORY-BASED IMPACT EVALUATIONS
As the implementation of the evaluation study proceeds and the case studies (Task 3) are
being drafted the Team is in the course of identifying three policy instruments to be assessed
by as many theory-based impact evaluations as foreseen in Task 4 The three instruments
should be selected out of the long list of seven instruments suggested in the First Intermediate
Report and in consultation with the European Commission
The Team puts forward hereby a possible list of three policy instruments The main criteria
considered for their selection are
i The degree of representativeness of the typologies of policy instruments used in the 50
OPs as outlined in the First Intermediate Report the most significant categories of
policy instruments in terms of public expenditure are
Business creation and development ie instruments designed to stimulate
investments in the business sector without a predominant emphasis on RampD
and innovation
Support for RampD projects
Support for the development of technological and non-technological innovation
without any research and experimental development activities
ii The feasibility of a theory-based impact evaluation based on a survey of beneficiaries
which implies the availability of a sufficiently large number of beneficiaries and the
possibility to easily get their email contacts also with the help of the Managing
Authority or the implementing body the best option is to have at least some hundreds
beneficiary SMEs for each instrument
iii The importance of the policy instrument within the policy mix of the OP which ensures
the availability of a good amount of information resulting from the case study
regarding in particular its logic of intervention information about beneficiaries and
effectiveness
iv Preference is assigned to instruments on which no other surveys to beneficiaries have
been conducted so far in order not to put excessive burden on the same SMEs which
could undermine their willingness to contribute to our study
Based on these considerations the three policy instruments we propose for a theory-based
impact evaluation are presented in the table below It can be noticed that the list also ensures
geographical balance between Convergence and Competitiveness and Employment region as
well as Old and New Member States and regional and national OPs For the sake of
completeness and comparability for all the seven candidate instruments the pros and cons for
selecting each of them are detailed
23
Table 4 Comparison of the policy instruments and reasons for selection
Proposed for
selection
Type of policy
instrument
Selected policy
instrument
Operational Programme and
type of regioncountry
Descriptive information Specific reason for selection
for a TBIE Possible reasons for
rejection
YES Business creation and development
ldquoAid to investment projects by micro and small enterprisesrdquo
Regional OP Apulia (Italy) - Convergence region
- Old Member State
The instrument supports the purchase of machineries computer systems buildings construction works for enterprises in order to encourage the development of micro and small companies It benefitted more than 3 thousand SMEs For around 30 of beneficiaries grants have been combined with credit guarantees
- Very common type of SME support on which vast literature has been produced
- Very large number of beneficiary SMEs
- The strong relationship already established with local stakeholders and many SMEs would allow to easily and quickly test the surveyrsquos questionnaires before the launch of the three TBIEs
- For some SMEs opportunity to analyse the complimentary efforts of two forms of support (grants and a combination of grants and guarantees) and their respective effectiveness
- None
YES Support for RampD projects
ldquoGrants for Industrial Research and Experimental Developmentrdquo
Regional OP Castilla y Leon (Spain) - Competitiveness and Employment region
- Old Member State
The instrument encourages the development of RampD projects with the purpose of increasing the basis of number of innovative enterprises investment and personnel in RampD In total 759 projects of SMEs have been supported through grants 204 SMEs have conducted their project in collaboration with research organisations
- In analysing the achievement of beneficiary SMEs as well as the behavioural change opportunity to distinguish between SMEs which have realized their projects independently rather than in collaboration with a research centre
- According to the country expert among all the policy instruments of this OP this is the one for which it would be easier to get the contact details of beneficiary SMEs
- Possibility to get active collaboration by the regional authority ADE eg sending out an introductory letter to all
- None
24
Proposed for
selection
Type of policy
instrument
Selected policy
instrument
Operational Programme and
type of regioncountry
Descriptive information Specific reason for selection
for a TBIE Possible reasons for
rejection
SMEs mentioning that they will receive an invitation to a survey and inviting them to reply
YES Support for the development of technological and non-technological innovation
ldquoFinancing of individual projects for SMEsrdquo
National OP Poland Innovative Economy - Convergence country
- New Member State
The instrument provides grants to support the technological innovation of SMEs In particular it aims to stimulate the adoption of more risky and innovative solutions The instrument performed far better than expected 698 projects have been realised up to 2013 by approximately as many SMEs The instrument is delivered by a financial intermediary
- This instrument belongs to the OP which has provided the largest financial contribution to SMEs within the full sample of 50 OPs furthermore this is one of the core instrument of the programme as also reflected in the volume of public contribution which is among the highest of the OP (more than EUR 300 million fully targeted to SMEs)
- Opportunity to examine the role played by the intermediary according to the perceptions and opinions of beneficiary SMEs
- None
NO Support for RampD projects
ldquoRampD project grants for individual enterprisesrdquo
Germany regional OP Saxony - Convergence region
- Old Member State
The instrument provides grants to individual enterprises for supporting the implementation of RampD projects
- Evidence of achievement is already available since the instrument was subject of another evaluation study and enterprise survey a few years ago The TBIE would allow to better qualify the instrumentsrsquo achievements and the causal chain leading to the certain effects
- According to the country experts beneficiary SMEs may be reluctant to participate to another survey
- Less than 200 beneficiary SMEs a lower number as compared with other candidate policy instruments
- It is still uncertain whether it will be possible to get the email addresses of beneficiary SMEs
25
Proposed for
selection
Type of policy
instrument
Selected policy
instrument
Operational Programme and
type of regioncountry
Descriptive information Specific reason for selection
for a TBIE Possible reasons for
rejection
NO Support for the development of technological and non-technological innovation
ldquoSupport for technological upgrade - LEADER LTrdquo
Lithuania - Economic Growth - Convergence country
- New Member State
The instrument supports the increase of productivity in enterprises by supporting production technology upgrading The investment into the acquisition or upgrade of technologies and related internal engineering infrastructures are supported
- Email contacts particularly easy to be collected
- Result indicators are available due to an effective Structural Funds monitoring system and because the instrument was already subject of a previous evaluation study
- Very low number of beneficiary SMEs (69) which would make this instrument less suitable for launching an on-line survey as compared with other candidate instruments
NO Support for the development of technological and non-technological innovation
ldquoSupport for non-technological innovation - PROCESS LTrdquo
Lithuania - Economic Growth - Convergence country
- New Member State
The instrument aims to increase productivity in enterprises by implementing modern management methods and processes except of personnel management systems The purchase of external consulting services is supported in order to upgrade enterprises management processes
- Email contacts particularly easy to be collected
- Result indicators are available due to an effective Structural Funds monitoring system and because the instrument was already subject of a previous evaluation study
- The instrument is considered highly relevant by the target beneficiaries
- Very low number of beneficiary SMEs (119)
- As compared with other categories of policy instruments support for non-technological innovation is relatively less significant and representative of the typical forms of support provided to SMEs in the EU
NO Support for networking
ldquoInteraction on Innovationrdquo later merged with ldquoCluster relationshiprdquo
Denmark Innovation and Knowledge OP - Competitiveness and Employment country
- Old Member State
The policy instrument aims at analysing opportunities for creating clusters promoting networks and the formation of clusters of SMEs in particular as well as clusters of supplier networks for SMEs These objectives are pursued by providing grants to SMEs in partnership with universities (according to the triple helix model)
- Opportunity to better analyse the effects of a policy instrument on which a vast amount of literature has been produced
- Opportunity to dig into the collaboration mechanisms between SMEs and universities
- As compared with other categories of policy instruments support for networking is relatively less significant and representative of the typical forms of support provided to SMEs in the EU
- The number and characteristics of SMEs benefitting from this instrument remain unknown even after implementing the case
26
Proposed for
selection
Type of policy
instrument
Selected policy
instrument
Operational Programme and
type of regioncountry
Descriptive information Specific reason for selection
for a TBIE Possible reasons for
rejection
study The lack of data at policy instrument level prevents from identifying the beneficiary SMEs to which launching the on-line survey
27
4 ANNEX SEMINAR PARTICIPANTS
Name Description Organisation
DG REGIO Evaluation Unit
Rudolf Niessler Director DG REGIO B Policy
Veronica Gaffey Head of Evaluation Unit DG REGIO B2
Marielle Richeacute Evaluation Unit DG REGIO B2
Kai Stryczynski Deputy Head of Unit DG REGIO B2
Daniel Mouqueacute Evaluation Unit DG REGIO B2
CSIL Evaluation Team
Massimo Florio Evaluation team Director CSIL
Julie Pellegrin Evaluation team Project Manager CSIL
Silvia Vignetti Evaluation team CSIL
Emanuela Sirtori Evaluation team CSIL
Mike Coyne Evaluation team CSES
Malin Carlberg Evaluation team CSES
Anna-Maria Krarup Evaluation team CSES
Christian Koehler Case Study Saxony Centre for European Economic Research (ZEW)
Jaime del Castillo Case Study Castile amp Leon President INFYDE
Agnė Paliokaitė Case Study Lithuania Visionary Analytics
Elena Jarocinska Case Study Poland
Commission Officials
Katja Reppel Deputy Head of Unit Competence Centre Smart and Sustainable Growth
DG REGIO G1
Bernd Reichert Head of Unit H2020 SME EASME
Peter Wragg Head of Unit SME Access to Markets DG GROW F2
Jean David Malo Head of Unit SMEs Financial Instruments amp State Aid DG RTD B3
28
Istvan Nemeth Policy Officer - Enterprise Europe Network DG GROW F2
External Experts
Harvey Armstrong Professor Emeritus in the Department of Geography University of Sheffield
Robert Picciotto Visiting Professor Kings College London
Mark Sanders Professor University of Utrecht
Jiri Blazek Associate Professor Charles University Prague
Stakeholders ndash Case Studies
Adriana Agrimi Manager of RampI Policy Instrument Apulia Managing Authority
Kasper Westh Senior official Growth Forum Secretariat South Denmark
Simona Daukilaite
Deputy Head of the Economic Growth Operational Programme
Economic Growth OP Lithuania Managing Authority
Beatriz Casado Saenz Vice-General Director ADE (Development Agency Castile amp Leon)
Tomasz Kula Analysis and Evaluation Team Competitiveness and Innovation Department
Ministry of Infrastructure and Development (PL)
Representatives of other Work Packages
Terry Ward WP 1 Applica
Andreas Resch WP 3 Metis-Vienna
Anda Berenyi WP 4 KPMG
LEGAL NOTICE
This document has been prepared for the European Commission however it reflects the views only of the authors and the Commission cannot be held responsible for any use which may be made of the information
contained therein
More information on the European Union is available on the Internet (httpwwweuropaeu)
Luxembourg Publications Office of the European Union 2014
ISBN [number]
doi[number]
copy European Union 2015
Reproduction is authorised provided the source is acknowledged
Printed in [Country]
PRINTED ON ELEMENTAL CHLORINE-FREE BLEACHED PAPER (ECF)
PRINTED ON TOTALLY CHLORINE-FREE BLEACHED PAPER (TCF) PRINTED ON RECYCLED PAPER
PRINTED ON PROCESS CHLORINE-FREE RECYCLED PAPER (PCF)
Europe Direct is a service to help you find answers to your questions about the European Union
Freephone number ()
00 800 6 7 8 9 10 11
() The information given is free as are most calls (though some operators phone boxes or hotels may charge you)
4
This report is part of a study carried out by a Team selected by the Evaluation Unit DG
Regional and Urban Policy European Commission through a call for tenders by open
procedure No 2014CE16BAT002
The consortium selected comprises CSIL ndash Centre for Industrial Studies (lead partner
Italy) CSES ndash Centre for Strategy amp Evaluation Services (UK) and ZEW ndash Centre for
European Economic Research (Germany)
Subcontracting companies are CASE ndash Center for Social and Economic Research
(Poland) INFYDE ndash Informatioacuten y Desarrollo SL (Spain) Visionary Analytics (Lithuania)
and WIFO ndash OumlsterreichischesInstitutfuumlrWirtschaftsforschung (Austria)
The Core Team comprises
Scientific Director Massimo Florio CSIL and University of Milan
Project Manager Julie Pellegrin CSIL
Advisory Committee Brad Graeme Philip Astbury (University of Melbourne) Harvey Armstrong (University of Sheffield) David Audretsch (Indiana University) Mateja Dermastia (Anteja ECG) and Robert Picciotto (Kings College)
Senior experts Laura Delponte (CSIL) Georg Licht (ZEW) James Rampton (CSES) and Davide Sartori (CSIL)
Task managers Silvia Vignetti (CSIL) Mike Coye (CSES) Emanuela Sirtori (CSIL) Mark Whittle (CSES) Julie Pellegrin (CSIL)
Statistical Experts Donatella Cheri (CSIL) Stefania Pelizzari (CSIL) and Silvia Salini (CSIL and University of Milan)
Junior Experts Chiara Pancotti (CSIL)
Quality manager Paola Govoni (CSIL)
A network of Country Experts provides the geographical coverage for the field analysis Viktor Kveton (CZ) Anna-Maria Krarup (DK) Mike Coyne (DK) Christian Kohler (DE) Silke Haarich (ES) Julie Pellegrin (FR) Silvia Vignetti (IT) Simonas Gausas (LT) Agnė Paliokaitė (LT) Elena Jarocinka (PL) Jan Teresiński (PL) The authors express their gratitude to the stakeholders who agreed to provide data and information The authors are also grateful for the very helpful insights from the EC staff and particularly to Veronica Gaffey Marielle Richeacute Daniel Mouqueacute and Kai Stryczynski and other members of the Steering Group The authors are responsible for any remaining errors or omissions
Quotation is authorised as long as the source is acknowledged along with the fact that
the results are provisional
5
Second Intermediate Report
TABLE OF CONTENTS
LIST OF ABBREVIATIONS 6
FOREWORD 7
1 OVERVIEW OF THE SELECTED OPERATIONAL PROGRAMMES 8
2 RESULTS OF THE SEMINAR 16
21 Targeting high vs low tech firms 16
22 Promoting widespread vs selective instruments 16
23 ERDF and the regional policy mix 17
24 Synthesis 17
3 NEXT STEP THEORY-BASED IMPACT EVALUATIONS 22
4 ANNEX SEMINAR PARTICIPANTS 27
6
LIST OF ABBREVIATIONS
BERD Business Expenditure in Research and Development
CONV Convergence (Cohesion Policy objective)
COMP Competitiveness and Employment (Cohesion Policy objective)
CZ Czech Republic
DE Germany
DG REGIO Directorate-General for Regional and Urban Policy
DK Denmark
EC European Commission
ERDF European Regional Development Fund
ES Spain
EU European Union
EUR Euro
FDI Foreign Direct Investment
FR France
GDP Gross Domestic Product
GERD Gross Expenditure in Research and Development
GVA Gross Value Added
ICT Information and Communication Technology
IT Italy
LT Lithuania
M EUR Million Euro
MA Managing Authority
MS Member State
MULTIREG Multiregional
NACE Nomenclature statistique des activiteacutes eacuteconomiques (Statistical
classification for economic activities)
NAT National
NUTS Nomenclature of territorial units for statistics
OP Operational Programme
PL Poland
RampD Research and Development
RampTD Research and technological development
REG Regional
RTDI Research technological development and innovation
SF Structural Fund
SME Small and medium enterprise
TBIE Theory-based impact evaluation
ToR Terms of Reference
WP Work package
7
FOREWORD
This is the Second Intermediate Report of the ex-post evaluation of Support to Small and
Medium Enterprises (SMEs) ndash Increasing Research and Innovation in SMEs and SME
development The objective of the evaluation is to assess the effectiveness and the impact of
the European Regional Development Fund (ERDF) with regards to support for innovation and
the development of SMEs in the European Union over the 2007-2013 programming period
This report presents the results of Tasks 3 and 5 ie the eight case studies in selected
regions and the stakeholder seminar organised in Brussels the 29th of April 2015 to discuss
the findings from the different tasks and especially from the case studies The volume at hand
contains an overview of the eight selected case studies as well as an overview of the
organisation and results of the seminar while the eight case studies form separate self-
standing reports
8
1 OVERVIEW OF THE SELECTED OPERATIONAL PROGRAMMES
This Chapter provides an introductory overview of Operational Programmes (OPs) supporting
the growth and innovation processes of Small and Medium Enterprises (SMEs) which are
subject of the case studies included and discussed in this report
The Terms of Reference indicate a list of 50 Operational Programmes co-financed in the period
2007-2013 by the European Regional Development Fund (ERDF) in 23 EU Member States All
50 OPs and policy instruments targeted to SMEs included therein have been examined The
results of this preliminary analysis are included in the First Intermediate Report From the full
list of 50 OPs the evaluation team has selected 8 OPs for a more in-depth analysis which are
1 Italy ndash Apulia (2007IT161PO010) carried out as a pilot case study
2 France ndash Icircle-de-France (2007FR162PO012)
3 Germany ndash Sachsen (2007DE161PO004)
4 Denmark - Innovation and Knowledge (2007DK162PO001)
5 Spain ndash Castilla y Leoacuten (2007ES162PO009)
6 Czech Republic ndash Business and Innovation (2007CZ161PO004)
7 Poland ndash Innovative Economy (2007PL161PO001)
8 Lithuania ndash Economic Growth (2007LT161PO002)
These OPs have been selected in order to fulfil the following conditions
to ensure a balance between regional and national cases
to ensure a balance between Convergence and regional Competitiveness objectives
also between EU 12 and EU 15
to include territories with different SME typologies
to account for strategies based on different mixes of policy instruments
the presence of a collaborative Managing Authority in order to ease data collection
The result of the selection is a list of Programmes which constitute a purposeful set that
assures the greatest representativeness in terms of socio-economic context and regional
strategy and offers the opportunity to discover relevant lessons on mechanisms concerning
SME support
9
Figure 1 Map of OPs selected for in-depth study
Denmark ndash Innovation
and knowledge
(2007DK162PO001)
Germany ndash Saxony
(2007DE161PO004)
France ndash Icircle-de-France
(2007FR162PO012)
Spain ndash Castilla y Leoacuten
(2007ES162PO009)
Italy ndash Apulia
(2007IT161PO010)
Lithuania ndash Economic
Growth
(2007LT161PO002)
Czech Republic ndash
Business and Innovation
(2007CZ161PO004)
Poland ndash Innovative
Economy
(2007PL161PO001)
Source CSIL
These eight OPs have been evaluated in order to enrich the preliminary hypotheses derived in
Task 1 on the mix of policy instruments adopted to promote SME growth and innovation across
the EU and on their outcomes The diversity of OPs included in the sample allows to account
for different regional and national specificities thus bringing context variables more forcefully
into the picture
In particular the selection of OPs both at regional (such as Apulia or Saxony the former at
NUTS 2 level the latter at NUTS 1 level) and national level (such as the Polish or Danish
programme) in eight different countries allows providing a panorama of different institutional
context features and regional innovation systems in place which can play an important role on
the delivery mechanisms of support along with their effectiveness The analysis encompasses
areas which have been touched to a different extent by the economic recession and which
belong to different Cohesion Policy objectives which is likely to affect their capacity to react to
the crisis and overcome structural barriers hindering SME development and innovativeness
The number of SMEs based in the areas targeted by the OPs range from nearly two hundred
thousand as in Saxony or in small countries such as Denmark and Lithuania to almost or
more than 1 million as in the Czech Republic and Poland This variance is reflected in the
volume of ERDF contribution dedicated to SMEs which is highest in Poland and Czech Republic
However the sample includes also an example of OP which dedicates a relatively limited
amount of ERDF to SMEs in spite of the large number of SMEs in the region it is the OP of Icircle-
de-France
10
Table 1 Eight Operational Programmes observed
OP
Cohesion
Policy
objective
EU 12
(ldquoNewrdquo
Member
States) or
EU15 (ldquoOld
Member
States)
NUTS level
Volume of EU
contribution for WP2
themes (EUR
million)
of EU contribution
for WP2 themes over
total contrib for
the OP
Total
population
of the area
covered by
the OP
GDP (PPS)
per capita
(average
2007-2011)
(EUR)
Total
number of
SMEs ()
Total
intramural
expenditure
in RampD
(GERD) ndash
2007-2011
average
Business
expenditure
in RampD
(BERD) ndash
2007-2011
average
1 Italy ndash Apulia Convergence EU15 NUTS 2 region
645 25 4 million 16640 218 thousand
(in 2011)
075 of
GDP
017 of
GDP
2 France ndash Icircle-
de-France
Competitiveness
and Employment EU15
NUTS 2
region 60 42 118 million 43360
727 thousand
(in 2011)
298 of
GDP
198 of
GDP
3 Germany -
Saxony Convergence EU15
NUTS 2
region 846 29 42 million 21040
140 thousand
(in 2012)
277 of
GDP
131 of
GDP
4 Denmark - Innovation and
knowledge
Competitiveness and Employment
EU15 NUTS 0 country
203
82
55 million 30660 213 thousand
(in 2013)
274 of
GDP
187 of
GDP
5 Spain ndash Castilla
y Leoacuten
Competitiveness
and Employment EU15
NUTS 2
region 269 36 255 million 23860
131 thousand
(in 2013)
109 of
GDP
061 of
GDP
6 Czech Republic - Business and
Innovation
Convergence EU12
NUTS 0
(except capital city
region)
2282 73 105 million 16960 928 thousand
(in 2013)
112 of
GDP
078 of
GDP
7 Poland - Innovative
Economy
Convergence EU12 NUTS 0 country
5287 62 38 million 14740 15 million (in
2013)
066 of
GDP
020 of
GDP
8 Lithuania -
Economic
Growth
Convergence EU12 NUTS 0
country 760 25 3 million 15440
115 thousand
(in 2013)
085 of
GDP
024 of
GDP
Source Eurostat and EC Performance Review 2014
Note () CSIL elaboration of National Statistical Office data (NACE sectors B-N excl K)
11
As shown in Table 1 the heterogeneity of areas covered by the case studies can be highlighted
also if considering the total intramural RampD expenditure or business RampD expenditure
According to the Global Innovation Index 2014 (Cornell University INSEAD and WIPO 2014)1
which combines innovation input measures and output measures the EU areas of the sample
cover a wide range or ranking categories (see Table 2 below)
Table 2 Global Innovation Index ranking ndash 2014
Global Innovation Index 2014 ranking
Top 10 11-20 21-30 31-40 40-60
UK Ireland Austria Cyprus Croatia
Sweden Germany France Italy Bulgaria
Finland Belgium Portugal Poland
Netherlands Estonia Latvia Greece
Denmark Malta Hungary Romania
Luxembourg Czech Republic
Slovakia
Spain Lithuania
Slovenia
Note The eight case studies are indicated by the asterisks
Source CSIL based on Cornell University INSEAD and WIPO (2014)
A more focused picture can be obtained using data from the Innovation Union Scoreboard
2012 covering the years 2007 ndash 2011 which ranks not only Member States but also regions in
terms of their performance against a set of indicators of innovation2 Specifically it places
countries and regions in four categories distinguishing between lsquoleadersrsquo lsquofollowersrsquo those
with a moderate lsquoperformancersquo and those lsquocatching-uprsquo Table 3 shows the position attributed
by the Scoreboard to the target area that have been examined in case studies
Table 3 Innovation Scoreboard Attribution
Leader Follower Moderate Modest
Catching-up
Denmark
Icircle-de-France
Saxony
Castile amp Leoacuten
Czech Republic
Poland
Apulia
Lithuania
Source European Innovation Scoreboard 2007 amp Regional Innovation Scoreboard 2012 Note Convergence region
Other regions Competitiveness amp Employment
According to the analysis of the SME-related policy instruments performed as part of Task 1
the eight OPs account for different intervention strategies as reflected in the mix of policy
instruments implemented (Figure 2) and the mode of delivery of such instruments (Figure 3)
Actually the sample includes some OPs whose primary aim is to promote business creation
and development (such as the Czech Spain Italian and Lithuanian OPs) others where public
expenditure is more concentrated on support for RampD projects (such as the German and the
1 Cornell University INSEAD and WIPO (2014) The Global Innovation Index 2014 The Human Factor In innovation
Fontainebleau Ithaca and Geneva 2 The Regional Innovation Scoreboard 2012 applies the same methodology as far as it was possible to Member State
and regions Because of data availability problems at a regional level it was not possible to exactly replicate the
methodology but the results obtained were checked for consistency with the national level scoreboard One other
change was that those regions appearing in the last category were referred to as having lsquomodestrsquo innovation
performance
12
French OPs) for increasing technological and non-technological innovation (Polish OP) One OP
is focused on increasing networking and knowledge and technology transfer (Danish OP)
Figure 2 Paid amount by type of policy instruments in the eight OPs
0
10
20
30
40
50
60
70
80
90
100
CZ - CzechRepublic
DE - Saxony DK - Denmark ES - Castilla yLeoacuten
FR - Icircle deFrance
IT - Apulia LT - Lithuania PL - Poland
Support for RampD projects
Support for improving capacities
Networking
Knowledge and technology transfer
Internationalisation and visibility
Infrastructures and related services
Generic access to finance
Development of technological or non-technological innovation
Creation of innovative companies
Business creation and development
Access and diffusion of ICT
Note paid amount refers to both ERDF and public funds paid to beneficiaries
The public support has been largely delivered in the form of grants in five out of the eight
considered OPs which is in line with the predominance of traditional direct support across the
entire EU There are however some exceptions in Lithuania and especially Poland more
often public support has been conveyed through packages of support usually combining
grants with consulting services Equity finance is quite relevant in Icircle-de-France Lithuania and
Saxony while some preference for using repayable financial support can be observed in Apulia
and the Czech Republic
13
Figure 3 Paid amount by mode of delivery in the eight OPs
0 10 20 30 40 50 60 70 80 90 100
CZ - CzechRepublic
DE - Saxony
DK - Denmark
ES - Castilla yLeoacuten
FR - Icircle de France
IT - Apulia
LT - Lithuania
PL - Poland
Equity finance + Repayable financial support
Consulting services + training + search of businesspartnersConsulting advice technical assistance
Consulting advice technical assistance +Information campaing eventsEquity finance
Grants
Grants + consulting services + training
Grants + Consulting advice technical assistance
Grants + Loans + Information campaigns
Grants + Provision of infrastructure and services +Consulting advice technical assistanceGrants + training
Information campaign events seminars
Provision of infrastructure and services +Consulting advice technical assistanceProvision of infrastructures
Repayable financial support
Source CSIL elaboration Note Paid amount refers to both ERDF and public contributions
14
The eight OPs have provided of support to around 48 thousand SMEs representing 20 of the
total number of beneficiary SMEs ascribable to the full sample of 50 OPs The number of
beneficiary SMEs is the highest for the OPs of Poland and Lithuania with more than 10
thousand and 12 thousand beneficiaries on the other hand the French OP has supported less
than 300 SMEs
Figure 4 Number of beneficiary SMEs of the eight OPs
00
10
20
30
40
50
60
70
80
90
100
0
2000
4000
6000
8000
10000
12000
14000
PL - Poland LT - Lithuania IT - Apulia ES - Castilla yLeoacuten
CZ - CzechRepublic
DE - Saxony FR - Icircle de France
Number of beneficiary SMEs Share of beneficiary SMEs over the total number of SMEs in the target area
Source CSIL elaboration Note Missing data for Denmark since the exact number of beneficiary SMEs is not available
In order to assess the intervention strategy of the OPs besides the absolute number of
beneficiaries it is particularly interesting to look at the distribution of beneficiaries according to
their size and technology intensity The analysis on the 50 OPs has revealed that the micro
enterprises generally represent the large majority of SMEs benefiting from ERDF support
(54) followed by small (30) and medium enterprises (16) The analysis has documented
the predominantly low technological intensity of beneficiary SMEs the majority of SMEs (53)
belong to sectors with a low share of business RampD expenditure over the value added by
sector However it is also noted that almost one quarter of all beneficiaries (24) has a
medium-high technological level Medium low-tech or high tech companies represent a lower
share of all the identified beneficiaries ie 14 and 9 respectively
The proportion of beneficiary SMEs in the eight OPs provides a more diversified picture (Figure
5 and 6) The Czech OP Enterprise and Innovation has directed the public support mainly to
small and medium size companies with a fair distribution in terms of technology intensity
Conversely the regional Apulia OP target micro enterprises characterised by either a low or a
medium-high technology intensity The Lithuanian OP has mostly supported low-tech
companies without significant differentiation in terms of size
15
Figure 5 Share of beneficiary SMEs by size class in the eight OPs
0
10
20
30
40
50
60
70
80
90
100
CZ - Czech Republic(Innov)
ES - Castilla y Leoacuten FR - Icircle de France IT - Apulia LT - Lithuania PL - Poland
Micro enterprises Small enterprises Medium enterprises
Source CSIL elaboration Note Missing data for Saxony and Denmark since the size class of beneficiary SMEs is not
available
Figure 6 Share of beneficiary SMEs by technology intensity level in the eight OPs
0
10
20
30
40
50
60
70
80
90
100
CZ - CzechRepublic
DE - Saxony ES - Castilla yLeoacuten
FR - Icircle deFrance
IT - Apulia LT - Lithuania PL - Poland
Low tech
Medium-low tech
Medium-high tech
High tech
Source CSIL elaboration Missing data for Denmark since the level of technological intensity cannot be estimated due
to missing data on sectoral disaggregation of beneficiary SMEs
Whether the characteristics of beneficiary SMEs simply mirror the specific characteristics of the
population of SMEs in the area covered by the OPs or result from different logics of
intervention underneath the OPs or from a mix of the two possible reasons is investigated in
the case studies
16
2 RESULTS OF THE SEMINAR
The aim of a ldquostakeholder seminarrdquo held on 29th April 2015 was to present the preliminary
findings and the main issues identified in other tasks undertaken for this Work Package and
especially those emerging from the eight case studies of Operational Programmes and to
discuss the policy implications and main lessons with Commission staff the evaluation team
members (and representatives of other Work Packages) academic experts and people
involved in the implementation of the Operational Programmes on the ground (see list of
participants in Annex) The following provides an overview setting out the main highlights in
the results from the presentations of the eight case studies
The seminar was organised in relation to three themes as follows
1) Targeting high vs low tech firms the case studies of Lithuania Saxony and Poland
2) Promoting widespread vs selective instruments the case studies of Apulia Castile amp
Leon and the Czech Republic
3) ERDF and the regional policy mix the case studies of Icircle-de-France and Denmark
Other issues that it was intended to highlight during the course of the discussion included
The issue of direct versus indirect support
Economic development versus anti-cyclical intervention
Supporting enabling organisations
Supporting individual enterprises as against partnerships
21 Targeting high vs low tech firms
In Lithuania the challenge was to build competitive advantage on the basis of labour-intensive
technologies The traditional sectors were in need of upgrading and the majority of the funds
were allocated to low tech companies In Saxony there was a demand driven approach but
also a realisation that low tech firms can improve competitiveness through cost reduction
Technologyprocess upgrading as subset to innovation can be justified but concentration of
spending on RampD has established Saxony as one of the German RampD powerhouses and
contributed to market access an increase in turnover and employment growth In Poland it
was thought that for countries that are not leading technological change the returns from
innovation are particularly high in low-tech manufacturing sectors but that as a country
approaches the technological frontier the policy should focus on RampD and innovative start-up
In discussion a central question was posed where does the investment pay most
22 Promoting widespread vs selective instruments
In Apulia the strategy was adjusted through re-programming to provide broad support to
SMEs to allow them to survive during the crisis and recession a dual approach was adopted
with selective support for SMEs with the internal capacity to manage innovation processes
including demand-side measures In Castile amp Leon the impact of the crisis was also intense
and broadly-based support was necessary but there were also efforts to build up the support
infrastructure and to provide in-depth support to enterprises identified as capable of innovation
and growth In the Czech Republic there was again both broadly-based and selective support
especially to address the ldquoBranch-plant syndromerdquo (where branches of international firms allow
little room for independent development by local suppliers) There was a focus on transferring
RampD results into production by stimulating demand for RampD results with 13 of the funds
going to support for innovation activities
17
23 ERDF and the regional policy mix
The last two cases are examples of OPs for areas which are relatively prosperous and where
RampD and innovation are relatively strong The ERDF budgets however were relatively small
In the Icircle-de-France (IdF) there was a pragmatic and demand-driven implementation
palliating perceived gaps in regional public support and enlarging the available financial
support targeting high growth high tech sectors appears to pay off in the IdF context In
Denmark there was a more strategic approach which was well integrated into national
strategy but with flexible implementation with strong stakeholder involvement in 6 regional
programmes There were interesting applications of the triple helix model amp successful cluster
developments
In all cases there was comment on the strength of monitoring and evaluation systems These
varied considerably from a relatively under-developed system in Apulia to a relatively strong
one in Icircle-de-France Denmark had organised a counterfactual analysis of enterprises
supported by the OP as against similar enterprises not receiving support
24 Synthesis
241 Diversity across themes
The first impression made by the presentations was the diversity of the interventions in the
eight cases There are several dimensions to these differences beginning with the context in
which the OP was implemented where there were differences relating to
The size of the regionsMember States targeted The absolute and relative size of the Programmes within the regions and countries in which
they operated and the effects that could reasonably be expected from them The size and structure of the SME population its sectoral distribution and its capacities
and assets The economic context within which the OPs operated and especially the way that the
economic crisis impacted on each area over the course of the programming period The endowment of SME and innovation support infrastructure and culture determining the
base on which the OPs could build
In fact the detailed investigations have confirmed the importance of the specific context in
which each OP was conceived and implemented for the determination of the nature of the
policy instruments used and the results to be expected from them This context is important
for any fair assessment of the achievements or otherwise of each Programme
Nonetheless when it came to the processes used to promote SMEs and innovation the
differences could often be considered as involving variations around a series of central themes
In all the cases considered there was a strong emphasis on promoting innovation as a
central objective yet this was done in a variety of ways and had differing relationships with
the objective of SME promotion In a number of cases support for SMEs was itself very much
seen as part of this process of encouraging innovation including in the case of the Icircle-de-
France where it involved encouraging new forms of enterprise dedicated to pursuing social
innovation In other cases however there was a clear commitment to provide general support
to SMEs and especially after the extent of the economic crisis became apparent some re-
programming to ensure this
Consequently targeting policies were not as clear cut as might have been expected There
were cases where SMEs were targeted directly ndash Apulia and Castile amp Leon but even here
there was also an element of trying to ensure that enterprises that were capable of benefitting
from support were the one to receive it while elsewhere a subtle lsquosoft targetingrsquo was more
evident where the instruments were shaped to achieve a certain selectivity not by defining
exclusions but by requiring for instance a commitment to change and growth on the part of
18
participants In Denmark for example those encouraged to become members of cluster
organisations had to be interested in developing their growth potential if their participation
was to serve any purpose This in effect led to a self-exclusion by those not willing to play
along with the support offered
The nature of the instruments used to implement OPs were shaped by a number of factors
Just as the objectives of an OP must take into account a large variety of details relating to the
circumstances of the relevant region or country so the precise characteristics of the
instruments to be applied must reflect not only the particular purposes for which they are to be
used the nature of the target group to be addressed and the economic and social
circumstances of the area concerned but the legacy of past interventions as well in the form
of existing support infrastructure and the capabilities developed in preceding periods In other
words support instruments are built on past actions both for positive reasons (exploiting
existing assets) but also because of their familiarity or a certain institutional inertia In any
event the large variety of circumstances in which the particular features of instruments are
determined gives rise to a wide array of actual policy instruments The review of 50 OPs
conducted as part of the evaluation identified 648 different instruments
This large variety of specific instruments however is mainly accounted for in that they are
often designed as elaborations of well-established approaches but addressing particular needs
and circumstances and also a variety of potential targets So building capacities and
competences can be undertaken for enterprises and their managers of varying degrees of
sophistication and background knowledge and can relate to a variety of matters from technical
issues to general management marketing exporting or more specialised issues such as IP
management The process of capacity building can therefore take many forms
The extent of the provision of access to finance is complicated by the question of whether or
not the provision of direct grants counts as part of this function Some substantial sums were
provided in this form by some of the OPs However generally an expected move towards the
provision of more indirect finance ndash loans and equity through intermediaries - was not as
marked as may have been anticipated General access to finance measures (equity
guarantees and reduction of credit interest) accounted for 38 of the funds allocated by the
Lithuanian OP and repayable financial support for 26 of the Apulian OP equity finance 14
in the case of Icircle-de-France 23 for loans and 35 for equity finance in that of Saxony The
other OPs had rather small amounts devoted to indirect financial instruments if any at all An
explanation offered of the small allocations to these instruments in some OPs was that the
crisis discouraged experimentation in this area that it is relatively difficult and expensive to
manage financial instruments and outside the experience of most Managing Authorities that
relatively large sums are necessary to make any appreciable impact and that results can often
take a long time to materialise
There were considerable differences in the extent to which there was provision of direct
support to enterprises In Saxony over 90 of the funds were in the form of grants and in
Icircle-de-France and in Apulia grants largely paid directly to enterprises accounted for 56 and
41 respectively of the funds allocated In Denmark by contrast no grants were paid directly
to enterprises unless they were partners in projects receiving support for developing clusters
or relationships with universities or in a small number of cases where they received funds to
hire private sector business advisers
It is useful to distinguish between different types of direct support In Poland and in Saxony a
large proportion of the direct support was for investments in innovative undertakings In
Apulia although the main part of support went to individual enterprises or SMEs it was more
evenly split between support for investment (by micro and small firms) and investment in
research In Icircle-de-France the weight of the direct support was for research projects
19
It is also interesting that analysis of a wider group of 50 OPs shows that manufacturing firms
received 33 of support ndash much greater than their share in the economy as a whole It also
showed that more than 50 of support has been directed to low-tech firms
Different forms of business support were available across the OPs including access to public
and private sources of information and advice incubator services and assistance for exporters
Castile amp Leon targeted the improvement of management capacities and this approach was
implicit in a number of other OPs
Approaches to support for innovation also took different forms Overall in the broader range
of OPs examined 24 of support was for RampD and a similar amount for business development
and direct support for RampD in collaborative and non-collaborative projects was a significant
feature of the OPs for Apulia Castile amp Leon Icircle-de-France Lithuania Poland and Saxony but
not in the Czech Republic and Denmark where FP7 was thought to be the appropriate vehicle
In Saxony strengthening the research base of enterprises in the local economy and promoting
the exploitation of knowledge was central to the OP so that the majority of the funds were
provided for investment in fixed capital and in supporting RampD This implied a certain targeting
within the SME population In Icircle-de-France the bulk of the support also went to research
projects and support for technology transfer and incubators though there was also support for
SME creation in distressed areas for access to finance and for social innovation projects In
Denmark the focus was more on promoting clusters and encouraging links between enterprises
and science institutions
In some cases however the picture was more mixed In Lithuania where 38 of funding went
to access to finance measures a further 30 to up-grading technology and processes but
there was also direct support for RampD and RampD infrastructure and support for networking and
clusters promoting innovation Similarly in Apulia there was support for research by SMEs
and measures to promote consulting services for technical innovation regional innovation
partnerships and aid for access to ICT alongside aid to investment in micro and small firms
and credit guarantees and support for tourism
Knowledge transfer also featured in many of the OPs Building relationships between
knowledge institutions and enterprises was an important objective for Denmark as part of
developing regional innovation capacities though the results were mixed at least in part
because of an unresponsive culture in certain universities In other cases these relationships
were promoted by collaborative research projects (Icircle-de-France Saxony) and in the case of
Lithuania by the use of vouchers Overall however it is perhaps surprising that building
relationships between knowledge institutions and enterprises did not have a higher profile
The development of clusters was an instrument used in the Czech Republic Lithuania and
Denmark where in some regions it absorbed a large proportion of the available funds and
where the focus was on emerging sectors such as clean technology energy health and welfare
and the experience economy Cluster support in this case consisted of a relatively complex set
of services provided for cluster members In the Czech Republic and Lithuania cluster
development was itself less developed and related to low-tech sectors with potential for
innovation and growth
Underlying these differences between Programmes there were variations in the approach to
governance This has become an important issue for all of the regions and countries
considered In part this is linked to the aspiration at least to establish transparent evidence-
based policy processes which has brought in the development of monitoring and evaluation
systems but there are more central elements of governance to do with who is involved in
decision-making and how decisions are taken that are also part of the picture The
development of stakeholder involvement in strategy formation in the setting of priorities and
even in elements of implementation was apparent in many of the cases throughout the
20
programming period In Denmark the whole (national and EU) strategy was based from the
beginning on a national consensus established through political and open public debates and
implemented through regional bodies with a strong stakeholder representation In Apulia a
self-evaluation exercise led to new departures in response to the crisis
There were however other issues of governance alluded to in the seminar relating to but the
alignment of the OP with national strategies and the organisational mechanisms adopted to
implement the strategy chosen by each OP These can have considerable influence on the
degree to which the Managing Authority can directly influence the implementation
mechanisms
Finally account must be taken of the differential impacts of the recession In Apulia and
Castile amp Leon there was formal reprogramming largely as a result of the recession and
changes in the instrument set utilised To a certain extent this meant a scaling down of
ambitions when for many enterprises it was a matter of survival rather than developing new
ventures Even here though the story does not always move in the same direction In the case
of Apulia for instance while it was necessary in part to refocus support on the broad range of
enterprises suffering from the recession at the same time the crisis acted as a stimulus to new
thinking after the conduct of a self-evaluation exercise
242 A common framework
Overall it can be seen that within the diversity shown by the eight cases there are at least a
number of common themes which are belong addressed in different ways The question does
arise however of whether it might be possible to go further to offer an explanation of the
diversity
External experts at the seminar advised that a theoretical framework should be sought to
make greater sense of the quantitative material and provide the basis for a more deliberative
judgement on the effectiveness of policy and how support funds can be best spent
One possibility is to take the differing circumstances of the OPs as themselves being an
explanatory factor and in a further step see the differences in the nature of the instruments
deployed as being part of an evolutionary process This approach also has the merit of linking
a debate on instruments with broader considerations in the promotion of innovation and
competitiveness at a European level
The reference in section 1 above to the position of the countries covered by the case studies
and their innovation performance as characterised by the Innovation Union Scoreboard and
in further detail at a regional level by the Regional Innovation Scoreboard 2012 allows a
distinction to be made between countries and regions in four categories - lsquoleadersrsquo lsquofollowersrsquo
those with a moderate lsquoperformancersquo and those lsquocatching-uprsquo The respective positions of the
eight cases have been set out in section 1
The approach suggested at the seminar was essentially to explore the hypothesis that the
overall lsquoinnovationrsquo position of regionscountries determines the types of instrument
used their targeting and ultimately their relative performance It may be that the
categorisation help us explain the differences in the objectives set the instruments that are
appropriate and their targeting and that this in turn also influences the performance that can
be expected Regionscountries for instance that are in the lsquoless developedrsquo categories may
have to strengthen their basic support infrastructure and service provision and the
performance of the enterprise base and that of other important players such as knowledge
institutions public authorities etc The regionscountries in the more lsquoadvancedrsquo positions on
the other hand have to build on their strengths in order to maintain or enhance their position
by promoting more productive research and strengthening the links between the science base
and enterprises
21
This possible framework provides an interesting line of enquiry to be followed up in further
stages of the evaluation It does however also address other issues raised in the seminar
such as whether support should be directed to high-tech enterprises or as was argued in
relation to a number of the countries present the gains to be had from the improvement of
the performance of mid and low-tech firms are more relevant in certain stages of
development
22
3 NEXT STEP THEORY-BASED IMPACT EVALUATIONS
As the implementation of the evaluation study proceeds and the case studies (Task 3) are
being drafted the Team is in the course of identifying three policy instruments to be assessed
by as many theory-based impact evaluations as foreseen in Task 4 The three instruments
should be selected out of the long list of seven instruments suggested in the First Intermediate
Report and in consultation with the European Commission
The Team puts forward hereby a possible list of three policy instruments The main criteria
considered for their selection are
i The degree of representativeness of the typologies of policy instruments used in the 50
OPs as outlined in the First Intermediate Report the most significant categories of
policy instruments in terms of public expenditure are
Business creation and development ie instruments designed to stimulate
investments in the business sector without a predominant emphasis on RampD
and innovation
Support for RampD projects
Support for the development of technological and non-technological innovation
without any research and experimental development activities
ii The feasibility of a theory-based impact evaluation based on a survey of beneficiaries
which implies the availability of a sufficiently large number of beneficiaries and the
possibility to easily get their email contacts also with the help of the Managing
Authority or the implementing body the best option is to have at least some hundreds
beneficiary SMEs for each instrument
iii The importance of the policy instrument within the policy mix of the OP which ensures
the availability of a good amount of information resulting from the case study
regarding in particular its logic of intervention information about beneficiaries and
effectiveness
iv Preference is assigned to instruments on which no other surveys to beneficiaries have
been conducted so far in order not to put excessive burden on the same SMEs which
could undermine their willingness to contribute to our study
Based on these considerations the three policy instruments we propose for a theory-based
impact evaluation are presented in the table below It can be noticed that the list also ensures
geographical balance between Convergence and Competitiveness and Employment region as
well as Old and New Member States and regional and national OPs For the sake of
completeness and comparability for all the seven candidate instruments the pros and cons for
selecting each of them are detailed
23
Table 4 Comparison of the policy instruments and reasons for selection
Proposed for
selection
Type of policy
instrument
Selected policy
instrument
Operational Programme and
type of regioncountry
Descriptive information Specific reason for selection
for a TBIE Possible reasons for
rejection
YES Business creation and development
ldquoAid to investment projects by micro and small enterprisesrdquo
Regional OP Apulia (Italy) - Convergence region
- Old Member State
The instrument supports the purchase of machineries computer systems buildings construction works for enterprises in order to encourage the development of micro and small companies It benefitted more than 3 thousand SMEs For around 30 of beneficiaries grants have been combined with credit guarantees
- Very common type of SME support on which vast literature has been produced
- Very large number of beneficiary SMEs
- The strong relationship already established with local stakeholders and many SMEs would allow to easily and quickly test the surveyrsquos questionnaires before the launch of the three TBIEs
- For some SMEs opportunity to analyse the complimentary efforts of two forms of support (grants and a combination of grants and guarantees) and their respective effectiveness
- None
YES Support for RampD projects
ldquoGrants for Industrial Research and Experimental Developmentrdquo
Regional OP Castilla y Leon (Spain) - Competitiveness and Employment region
- Old Member State
The instrument encourages the development of RampD projects with the purpose of increasing the basis of number of innovative enterprises investment and personnel in RampD In total 759 projects of SMEs have been supported through grants 204 SMEs have conducted their project in collaboration with research organisations
- In analysing the achievement of beneficiary SMEs as well as the behavioural change opportunity to distinguish between SMEs which have realized their projects independently rather than in collaboration with a research centre
- According to the country expert among all the policy instruments of this OP this is the one for which it would be easier to get the contact details of beneficiary SMEs
- Possibility to get active collaboration by the regional authority ADE eg sending out an introductory letter to all
- None
24
Proposed for
selection
Type of policy
instrument
Selected policy
instrument
Operational Programme and
type of regioncountry
Descriptive information Specific reason for selection
for a TBIE Possible reasons for
rejection
SMEs mentioning that they will receive an invitation to a survey and inviting them to reply
YES Support for the development of technological and non-technological innovation
ldquoFinancing of individual projects for SMEsrdquo
National OP Poland Innovative Economy - Convergence country
- New Member State
The instrument provides grants to support the technological innovation of SMEs In particular it aims to stimulate the adoption of more risky and innovative solutions The instrument performed far better than expected 698 projects have been realised up to 2013 by approximately as many SMEs The instrument is delivered by a financial intermediary
- This instrument belongs to the OP which has provided the largest financial contribution to SMEs within the full sample of 50 OPs furthermore this is one of the core instrument of the programme as also reflected in the volume of public contribution which is among the highest of the OP (more than EUR 300 million fully targeted to SMEs)
- Opportunity to examine the role played by the intermediary according to the perceptions and opinions of beneficiary SMEs
- None
NO Support for RampD projects
ldquoRampD project grants for individual enterprisesrdquo
Germany regional OP Saxony - Convergence region
- Old Member State
The instrument provides grants to individual enterprises for supporting the implementation of RampD projects
- Evidence of achievement is already available since the instrument was subject of another evaluation study and enterprise survey a few years ago The TBIE would allow to better qualify the instrumentsrsquo achievements and the causal chain leading to the certain effects
- According to the country experts beneficiary SMEs may be reluctant to participate to another survey
- Less than 200 beneficiary SMEs a lower number as compared with other candidate policy instruments
- It is still uncertain whether it will be possible to get the email addresses of beneficiary SMEs
25
Proposed for
selection
Type of policy
instrument
Selected policy
instrument
Operational Programme and
type of regioncountry
Descriptive information Specific reason for selection
for a TBIE Possible reasons for
rejection
NO Support for the development of technological and non-technological innovation
ldquoSupport for technological upgrade - LEADER LTrdquo
Lithuania - Economic Growth - Convergence country
- New Member State
The instrument supports the increase of productivity in enterprises by supporting production technology upgrading The investment into the acquisition or upgrade of technologies and related internal engineering infrastructures are supported
- Email contacts particularly easy to be collected
- Result indicators are available due to an effective Structural Funds monitoring system and because the instrument was already subject of a previous evaluation study
- Very low number of beneficiary SMEs (69) which would make this instrument less suitable for launching an on-line survey as compared with other candidate instruments
NO Support for the development of technological and non-technological innovation
ldquoSupport for non-technological innovation - PROCESS LTrdquo
Lithuania - Economic Growth - Convergence country
- New Member State
The instrument aims to increase productivity in enterprises by implementing modern management methods and processes except of personnel management systems The purchase of external consulting services is supported in order to upgrade enterprises management processes
- Email contacts particularly easy to be collected
- Result indicators are available due to an effective Structural Funds monitoring system and because the instrument was already subject of a previous evaluation study
- The instrument is considered highly relevant by the target beneficiaries
- Very low number of beneficiary SMEs (119)
- As compared with other categories of policy instruments support for non-technological innovation is relatively less significant and representative of the typical forms of support provided to SMEs in the EU
NO Support for networking
ldquoInteraction on Innovationrdquo later merged with ldquoCluster relationshiprdquo
Denmark Innovation and Knowledge OP - Competitiveness and Employment country
- Old Member State
The policy instrument aims at analysing opportunities for creating clusters promoting networks and the formation of clusters of SMEs in particular as well as clusters of supplier networks for SMEs These objectives are pursued by providing grants to SMEs in partnership with universities (according to the triple helix model)
- Opportunity to better analyse the effects of a policy instrument on which a vast amount of literature has been produced
- Opportunity to dig into the collaboration mechanisms between SMEs and universities
- As compared with other categories of policy instruments support for networking is relatively less significant and representative of the typical forms of support provided to SMEs in the EU
- The number and characteristics of SMEs benefitting from this instrument remain unknown even after implementing the case
26
Proposed for
selection
Type of policy
instrument
Selected policy
instrument
Operational Programme and
type of regioncountry
Descriptive information Specific reason for selection
for a TBIE Possible reasons for
rejection
study The lack of data at policy instrument level prevents from identifying the beneficiary SMEs to which launching the on-line survey
27
4 ANNEX SEMINAR PARTICIPANTS
Name Description Organisation
DG REGIO Evaluation Unit
Rudolf Niessler Director DG REGIO B Policy
Veronica Gaffey Head of Evaluation Unit DG REGIO B2
Marielle Richeacute Evaluation Unit DG REGIO B2
Kai Stryczynski Deputy Head of Unit DG REGIO B2
Daniel Mouqueacute Evaluation Unit DG REGIO B2
CSIL Evaluation Team
Massimo Florio Evaluation team Director CSIL
Julie Pellegrin Evaluation team Project Manager CSIL
Silvia Vignetti Evaluation team CSIL
Emanuela Sirtori Evaluation team CSIL
Mike Coyne Evaluation team CSES
Malin Carlberg Evaluation team CSES
Anna-Maria Krarup Evaluation team CSES
Christian Koehler Case Study Saxony Centre for European Economic Research (ZEW)
Jaime del Castillo Case Study Castile amp Leon President INFYDE
Agnė Paliokaitė Case Study Lithuania Visionary Analytics
Elena Jarocinska Case Study Poland
Commission Officials
Katja Reppel Deputy Head of Unit Competence Centre Smart and Sustainable Growth
DG REGIO G1
Bernd Reichert Head of Unit H2020 SME EASME
Peter Wragg Head of Unit SME Access to Markets DG GROW F2
Jean David Malo Head of Unit SMEs Financial Instruments amp State Aid DG RTD B3
28
Istvan Nemeth Policy Officer - Enterprise Europe Network DG GROW F2
External Experts
Harvey Armstrong Professor Emeritus in the Department of Geography University of Sheffield
Robert Picciotto Visiting Professor Kings College London
Mark Sanders Professor University of Utrecht
Jiri Blazek Associate Professor Charles University Prague
Stakeholders ndash Case Studies
Adriana Agrimi Manager of RampI Policy Instrument Apulia Managing Authority
Kasper Westh Senior official Growth Forum Secretariat South Denmark
Simona Daukilaite
Deputy Head of the Economic Growth Operational Programme
Economic Growth OP Lithuania Managing Authority
Beatriz Casado Saenz Vice-General Director ADE (Development Agency Castile amp Leon)
Tomasz Kula Analysis and Evaluation Team Competitiveness and Innovation Department
Ministry of Infrastructure and Development (PL)
Representatives of other Work Packages
Terry Ward WP 1 Applica
Andreas Resch WP 3 Metis-Vienna
Anda Berenyi WP 4 KPMG
LEGAL NOTICE
This document has been prepared for the European Commission however it reflects the views only of the authors and the Commission cannot be held responsible for any use which may be made of the information
contained therein
More information on the European Union is available on the Internet (httpwwweuropaeu)
Luxembourg Publications Office of the European Union 2014
ISBN [number]
doi[number]
copy European Union 2015
Reproduction is authorised provided the source is acknowledged
Printed in [Country]
PRINTED ON ELEMENTAL CHLORINE-FREE BLEACHED PAPER (ECF)
PRINTED ON TOTALLY CHLORINE-FREE BLEACHED PAPER (TCF) PRINTED ON RECYCLED PAPER
PRINTED ON PROCESS CHLORINE-FREE RECYCLED PAPER (PCF)
Europe Direct is a service to help you find answers to your questions about the European Union
Freephone number ()
00 800 6 7 8 9 10 11
() The information given is free as are most calls (though some operators phone boxes or hotels may charge you)
5
Second Intermediate Report
TABLE OF CONTENTS
LIST OF ABBREVIATIONS 6
FOREWORD 7
1 OVERVIEW OF THE SELECTED OPERATIONAL PROGRAMMES 8
2 RESULTS OF THE SEMINAR 16
21 Targeting high vs low tech firms 16
22 Promoting widespread vs selective instruments 16
23 ERDF and the regional policy mix 17
24 Synthesis 17
3 NEXT STEP THEORY-BASED IMPACT EVALUATIONS 22
4 ANNEX SEMINAR PARTICIPANTS 27
6
LIST OF ABBREVIATIONS
BERD Business Expenditure in Research and Development
CONV Convergence (Cohesion Policy objective)
COMP Competitiveness and Employment (Cohesion Policy objective)
CZ Czech Republic
DE Germany
DG REGIO Directorate-General for Regional and Urban Policy
DK Denmark
EC European Commission
ERDF European Regional Development Fund
ES Spain
EU European Union
EUR Euro
FDI Foreign Direct Investment
FR France
GDP Gross Domestic Product
GERD Gross Expenditure in Research and Development
GVA Gross Value Added
ICT Information and Communication Technology
IT Italy
LT Lithuania
M EUR Million Euro
MA Managing Authority
MS Member State
MULTIREG Multiregional
NACE Nomenclature statistique des activiteacutes eacuteconomiques (Statistical
classification for economic activities)
NAT National
NUTS Nomenclature of territorial units for statistics
OP Operational Programme
PL Poland
RampD Research and Development
RampTD Research and technological development
REG Regional
RTDI Research technological development and innovation
SF Structural Fund
SME Small and medium enterprise
TBIE Theory-based impact evaluation
ToR Terms of Reference
WP Work package
7
FOREWORD
This is the Second Intermediate Report of the ex-post evaluation of Support to Small and
Medium Enterprises (SMEs) ndash Increasing Research and Innovation in SMEs and SME
development The objective of the evaluation is to assess the effectiveness and the impact of
the European Regional Development Fund (ERDF) with regards to support for innovation and
the development of SMEs in the European Union over the 2007-2013 programming period
This report presents the results of Tasks 3 and 5 ie the eight case studies in selected
regions and the stakeholder seminar organised in Brussels the 29th of April 2015 to discuss
the findings from the different tasks and especially from the case studies The volume at hand
contains an overview of the eight selected case studies as well as an overview of the
organisation and results of the seminar while the eight case studies form separate self-
standing reports
8
1 OVERVIEW OF THE SELECTED OPERATIONAL PROGRAMMES
This Chapter provides an introductory overview of Operational Programmes (OPs) supporting
the growth and innovation processes of Small and Medium Enterprises (SMEs) which are
subject of the case studies included and discussed in this report
The Terms of Reference indicate a list of 50 Operational Programmes co-financed in the period
2007-2013 by the European Regional Development Fund (ERDF) in 23 EU Member States All
50 OPs and policy instruments targeted to SMEs included therein have been examined The
results of this preliminary analysis are included in the First Intermediate Report From the full
list of 50 OPs the evaluation team has selected 8 OPs for a more in-depth analysis which are
1 Italy ndash Apulia (2007IT161PO010) carried out as a pilot case study
2 France ndash Icircle-de-France (2007FR162PO012)
3 Germany ndash Sachsen (2007DE161PO004)
4 Denmark - Innovation and Knowledge (2007DK162PO001)
5 Spain ndash Castilla y Leoacuten (2007ES162PO009)
6 Czech Republic ndash Business and Innovation (2007CZ161PO004)
7 Poland ndash Innovative Economy (2007PL161PO001)
8 Lithuania ndash Economic Growth (2007LT161PO002)
These OPs have been selected in order to fulfil the following conditions
to ensure a balance between regional and national cases
to ensure a balance between Convergence and regional Competitiveness objectives
also between EU 12 and EU 15
to include territories with different SME typologies
to account for strategies based on different mixes of policy instruments
the presence of a collaborative Managing Authority in order to ease data collection
The result of the selection is a list of Programmes which constitute a purposeful set that
assures the greatest representativeness in terms of socio-economic context and regional
strategy and offers the opportunity to discover relevant lessons on mechanisms concerning
SME support
9
Figure 1 Map of OPs selected for in-depth study
Denmark ndash Innovation
and knowledge
(2007DK162PO001)
Germany ndash Saxony
(2007DE161PO004)
France ndash Icircle-de-France
(2007FR162PO012)
Spain ndash Castilla y Leoacuten
(2007ES162PO009)
Italy ndash Apulia
(2007IT161PO010)
Lithuania ndash Economic
Growth
(2007LT161PO002)
Czech Republic ndash
Business and Innovation
(2007CZ161PO004)
Poland ndash Innovative
Economy
(2007PL161PO001)
Source CSIL
These eight OPs have been evaluated in order to enrich the preliminary hypotheses derived in
Task 1 on the mix of policy instruments adopted to promote SME growth and innovation across
the EU and on their outcomes The diversity of OPs included in the sample allows to account
for different regional and national specificities thus bringing context variables more forcefully
into the picture
In particular the selection of OPs both at regional (such as Apulia or Saxony the former at
NUTS 2 level the latter at NUTS 1 level) and national level (such as the Polish or Danish
programme) in eight different countries allows providing a panorama of different institutional
context features and regional innovation systems in place which can play an important role on
the delivery mechanisms of support along with their effectiveness The analysis encompasses
areas which have been touched to a different extent by the economic recession and which
belong to different Cohesion Policy objectives which is likely to affect their capacity to react to
the crisis and overcome structural barriers hindering SME development and innovativeness
The number of SMEs based in the areas targeted by the OPs range from nearly two hundred
thousand as in Saxony or in small countries such as Denmark and Lithuania to almost or
more than 1 million as in the Czech Republic and Poland This variance is reflected in the
volume of ERDF contribution dedicated to SMEs which is highest in Poland and Czech Republic
However the sample includes also an example of OP which dedicates a relatively limited
amount of ERDF to SMEs in spite of the large number of SMEs in the region it is the OP of Icircle-
de-France
10
Table 1 Eight Operational Programmes observed
OP
Cohesion
Policy
objective
EU 12
(ldquoNewrdquo
Member
States) or
EU15 (ldquoOld
Member
States)
NUTS level
Volume of EU
contribution for WP2
themes (EUR
million)
of EU contribution
for WP2 themes over
total contrib for
the OP
Total
population
of the area
covered by
the OP
GDP (PPS)
per capita
(average
2007-2011)
(EUR)
Total
number of
SMEs ()
Total
intramural
expenditure
in RampD
(GERD) ndash
2007-2011
average
Business
expenditure
in RampD
(BERD) ndash
2007-2011
average
1 Italy ndash Apulia Convergence EU15 NUTS 2 region
645 25 4 million 16640 218 thousand
(in 2011)
075 of
GDP
017 of
GDP
2 France ndash Icircle-
de-France
Competitiveness
and Employment EU15
NUTS 2
region 60 42 118 million 43360
727 thousand
(in 2011)
298 of
GDP
198 of
GDP
3 Germany -
Saxony Convergence EU15
NUTS 2
region 846 29 42 million 21040
140 thousand
(in 2012)
277 of
GDP
131 of
GDP
4 Denmark - Innovation and
knowledge
Competitiveness and Employment
EU15 NUTS 0 country
203
82
55 million 30660 213 thousand
(in 2013)
274 of
GDP
187 of
GDP
5 Spain ndash Castilla
y Leoacuten
Competitiveness
and Employment EU15
NUTS 2
region 269 36 255 million 23860
131 thousand
(in 2013)
109 of
GDP
061 of
GDP
6 Czech Republic - Business and
Innovation
Convergence EU12
NUTS 0
(except capital city
region)
2282 73 105 million 16960 928 thousand
(in 2013)
112 of
GDP
078 of
GDP
7 Poland - Innovative
Economy
Convergence EU12 NUTS 0 country
5287 62 38 million 14740 15 million (in
2013)
066 of
GDP
020 of
GDP
8 Lithuania -
Economic
Growth
Convergence EU12 NUTS 0
country 760 25 3 million 15440
115 thousand
(in 2013)
085 of
GDP
024 of
GDP
Source Eurostat and EC Performance Review 2014
Note () CSIL elaboration of National Statistical Office data (NACE sectors B-N excl K)
11
As shown in Table 1 the heterogeneity of areas covered by the case studies can be highlighted
also if considering the total intramural RampD expenditure or business RampD expenditure
According to the Global Innovation Index 2014 (Cornell University INSEAD and WIPO 2014)1
which combines innovation input measures and output measures the EU areas of the sample
cover a wide range or ranking categories (see Table 2 below)
Table 2 Global Innovation Index ranking ndash 2014
Global Innovation Index 2014 ranking
Top 10 11-20 21-30 31-40 40-60
UK Ireland Austria Cyprus Croatia
Sweden Germany France Italy Bulgaria
Finland Belgium Portugal Poland
Netherlands Estonia Latvia Greece
Denmark Malta Hungary Romania
Luxembourg Czech Republic
Slovakia
Spain Lithuania
Slovenia
Note The eight case studies are indicated by the asterisks
Source CSIL based on Cornell University INSEAD and WIPO (2014)
A more focused picture can be obtained using data from the Innovation Union Scoreboard
2012 covering the years 2007 ndash 2011 which ranks not only Member States but also regions in
terms of their performance against a set of indicators of innovation2 Specifically it places
countries and regions in four categories distinguishing between lsquoleadersrsquo lsquofollowersrsquo those
with a moderate lsquoperformancersquo and those lsquocatching-uprsquo Table 3 shows the position attributed
by the Scoreboard to the target area that have been examined in case studies
Table 3 Innovation Scoreboard Attribution
Leader Follower Moderate Modest
Catching-up
Denmark
Icircle-de-France
Saxony
Castile amp Leoacuten
Czech Republic
Poland
Apulia
Lithuania
Source European Innovation Scoreboard 2007 amp Regional Innovation Scoreboard 2012 Note Convergence region
Other regions Competitiveness amp Employment
According to the analysis of the SME-related policy instruments performed as part of Task 1
the eight OPs account for different intervention strategies as reflected in the mix of policy
instruments implemented (Figure 2) and the mode of delivery of such instruments (Figure 3)
Actually the sample includes some OPs whose primary aim is to promote business creation
and development (such as the Czech Spain Italian and Lithuanian OPs) others where public
expenditure is more concentrated on support for RampD projects (such as the German and the
1 Cornell University INSEAD and WIPO (2014) The Global Innovation Index 2014 The Human Factor In innovation
Fontainebleau Ithaca and Geneva 2 The Regional Innovation Scoreboard 2012 applies the same methodology as far as it was possible to Member State
and regions Because of data availability problems at a regional level it was not possible to exactly replicate the
methodology but the results obtained were checked for consistency with the national level scoreboard One other
change was that those regions appearing in the last category were referred to as having lsquomodestrsquo innovation
performance
12
French OPs) for increasing technological and non-technological innovation (Polish OP) One OP
is focused on increasing networking and knowledge and technology transfer (Danish OP)
Figure 2 Paid amount by type of policy instruments in the eight OPs
0
10
20
30
40
50
60
70
80
90
100
CZ - CzechRepublic
DE - Saxony DK - Denmark ES - Castilla yLeoacuten
FR - Icircle deFrance
IT - Apulia LT - Lithuania PL - Poland
Support for RampD projects
Support for improving capacities
Networking
Knowledge and technology transfer
Internationalisation and visibility
Infrastructures and related services
Generic access to finance
Development of technological or non-technological innovation
Creation of innovative companies
Business creation and development
Access and diffusion of ICT
Note paid amount refers to both ERDF and public funds paid to beneficiaries
The public support has been largely delivered in the form of grants in five out of the eight
considered OPs which is in line with the predominance of traditional direct support across the
entire EU There are however some exceptions in Lithuania and especially Poland more
often public support has been conveyed through packages of support usually combining
grants with consulting services Equity finance is quite relevant in Icircle-de-France Lithuania and
Saxony while some preference for using repayable financial support can be observed in Apulia
and the Czech Republic
13
Figure 3 Paid amount by mode of delivery in the eight OPs
0 10 20 30 40 50 60 70 80 90 100
CZ - CzechRepublic
DE - Saxony
DK - Denmark
ES - Castilla yLeoacuten
FR - Icircle de France
IT - Apulia
LT - Lithuania
PL - Poland
Equity finance + Repayable financial support
Consulting services + training + search of businesspartnersConsulting advice technical assistance
Consulting advice technical assistance +Information campaing eventsEquity finance
Grants
Grants + consulting services + training
Grants + Consulting advice technical assistance
Grants + Loans + Information campaigns
Grants + Provision of infrastructure and services +Consulting advice technical assistanceGrants + training
Information campaign events seminars
Provision of infrastructure and services +Consulting advice technical assistanceProvision of infrastructures
Repayable financial support
Source CSIL elaboration Note Paid amount refers to both ERDF and public contributions
14
The eight OPs have provided of support to around 48 thousand SMEs representing 20 of the
total number of beneficiary SMEs ascribable to the full sample of 50 OPs The number of
beneficiary SMEs is the highest for the OPs of Poland and Lithuania with more than 10
thousand and 12 thousand beneficiaries on the other hand the French OP has supported less
than 300 SMEs
Figure 4 Number of beneficiary SMEs of the eight OPs
00
10
20
30
40
50
60
70
80
90
100
0
2000
4000
6000
8000
10000
12000
14000
PL - Poland LT - Lithuania IT - Apulia ES - Castilla yLeoacuten
CZ - CzechRepublic
DE - Saxony FR - Icircle de France
Number of beneficiary SMEs Share of beneficiary SMEs over the total number of SMEs in the target area
Source CSIL elaboration Note Missing data for Denmark since the exact number of beneficiary SMEs is not available
In order to assess the intervention strategy of the OPs besides the absolute number of
beneficiaries it is particularly interesting to look at the distribution of beneficiaries according to
their size and technology intensity The analysis on the 50 OPs has revealed that the micro
enterprises generally represent the large majority of SMEs benefiting from ERDF support
(54) followed by small (30) and medium enterprises (16) The analysis has documented
the predominantly low technological intensity of beneficiary SMEs the majority of SMEs (53)
belong to sectors with a low share of business RampD expenditure over the value added by
sector However it is also noted that almost one quarter of all beneficiaries (24) has a
medium-high technological level Medium low-tech or high tech companies represent a lower
share of all the identified beneficiaries ie 14 and 9 respectively
The proportion of beneficiary SMEs in the eight OPs provides a more diversified picture (Figure
5 and 6) The Czech OP Enterprise and Innovation has directed the public support mainly to
small and medium size companies with a fair distribution in terms of technology intensity
Conversely the regional Apulia OP target micro enterprises characterised by either a low or a
medium-high technology intensity The Lithuanian OP has mostly supported low-tech
companies without significant differentiation in terms of size
15
Figure 5 Share of beneficiary SMEs by size class in the eight OPs
0
10
20
30
40
50
60
70
80
90
100
CZ - Czech Republic(Innov)
ES - Castilla y Leoacuten FR - Icircle de France IT - Apulia LT - Lithuania PL - Poland
Micro enterprises Small enterprises Medium enterprises
Source CSIL elaboration Note Missing data for Saxony and Denmark since the size class of beneficiary SMEs is not
available
Figure 6 Share of beneficiary SMEs by technology intensity level in the eight OPs
0
10
20
30
40
50
60
70
80
90
100
CZ - CzechRepublic
DE - Saxony ES - Castilla yLeoacuten
FR - Icircle deFrance
IT - Apulia LT - Lithuania PL - Poland
Low tech
Medium-low tech
Medium-high tech
High tech
Source CSIL elaboration Missing data for Denmark since the level of technological intensity cannot be estimated due
to missing data on sectoral disaggregation of beneficiary SMEs
Whether the characteristics of beneficiary SMEs simply mirror the specific characteristics of the
population of SMEs in the area covered by the OPs or result from different logics of
intervention underneath the OPs or from a mix of the two possible reasons is investigated in
the case studies
16
2 RESULTS OF THE SEMINAR
The aim of a ldquostakeholder seminarrdquo held on 29th April 2015 was to present the preliminary
findings and the main issues identified in other tasks undertaken for this Work Package and
especially those emerging from the eight case studies of Operational Programmes and to
discuss the policy implications and main lessons with Commission staff the evaluation team
members (and representatives of other Work Packages) academic experts and people
involved in the implementation of the Operational Programmes on the ground (see list of
participants in Annex) The following provides an overview setting out the main highlights in
the results from the presentations of the eight case studies
The seminar was organised in relation to three themes as follows
1) Targeting high vs low tech firms the case studies of Lithuania Saxony and Poland
2) Promoting widespread vs selective instruments the case studies of Apulia Castile amp
Leon and the Czech Republic
3) ERDF and the regional policy mix the case studies of Icircle-de-France and Denmark
Other issues that it was intended to highlight during the course of the discussion included
The issue of direct versus indirect support
Economic development versus anti-cyclical intervention
Supporting enabling organisations
Supporting individual enterprises as against partnerships
21 Targeting high vs low tech firms
In Lithuania the challenge was to build competitive advantage on the basis of labour-intensive
technologies The traditional sectors were in need of upgrading and the majority of the funds
were allocated to low tech companies In Saxony there was a demand driven approach but
also a realisation that low tech firms can improve competitiveness through cost reduction
Technologyprocess upgrading as subset to innovation can be justified but concentration of
spending on RampD has established Saxony as one of the German RampD powerhouses and
contributed to market access an increase in turnover and employment growth In Poland it
was thought that for countries that are not leading technological change the returns from
innovation are particularly high in low-tech manufacturing sectors but that as a country
approaches the technological frontier the policy should focus on RampD and innovative start-up
In discussion a central question was posed where does the investment pay most
22 Promoting widespread vs selective instruments
In Apulia the strategy was adjusted through re-programming to provide broad support to
SMEs to allow them to survive during the crisis and recession a dual approach was adopted
with selective support for SMEs with the internal capacity to manage innovation processes
including demand-side measures In Castile amp Leon the impact of the crisis was also intense
and broadly-based support was necessary but there were also efforts to build up the support
infrastructure and to provide in-depth support to enterprises identified as capable of innovation
and growth In the Czech Republic there was again both broadly-based and selective support
especially to address the ldquoBranch-plant syndromerdquo (where branches of international firms allow
little room for independent development by local suppliers) There was a focus on transferring
RampD results into production by stimulating demand for RampD results with 13 of the funds
going to support for innovation activities
17
23 ERDF and the regional policy mix
The last two cases are examples of OPs for areas which are relatively prosperous and where
RampD and innovation are relatively strong The ERDF budgets however were relatively small
In the Icircle-de-France (IdF) there was a pragmatic and demand-driven implementation
palliating perceived gaps in regional public support and enlarging the available financial
support targeting high growth high tech sectors appears to pay off in the IdF context In
Denmark there was a more strategic approach which was well integrated into national
strategy but with flexible implementation with strong stakeholder involvement in 6 regional
programmes There were interesting applications of the triple helix model amp successful cluster
developments
In all cases there was comment on the strength of monitoring and evaluation systems These
varied considerably from a relatively under-developed system in Apulia to a relatively strong
one in Icircle-de-France Denmark had organised a counterfactual analysis of enterprises
supported by the OP as against similar enterprises not receiving support
24 Synthesis
241 Diversity across themes
The first impression made by the presentations was the diversity of the interventions in the
eight cases There are several dimensions to these differences beginning with the context in
which the OP was implemented where there were differences relating to
The size of the regionsMember States targeted The absolute and relative size of the Programmes within the regions and countries in which
they operated and the effects that could reasonably be expected from them The size and structure of the SME population its sectoral distribution and its capacities
and assets The economic context within which the OPs operated and especially the way that the
economic crisis impacted on each area over the course of the programming period The endowment of SME and innovation support infrastructure and culture determining the
base on which the OPs could build
In fact the detailed investigations have confirmed the importance of the specific context in
which each OP was conceived and implemented for the determination of the nature of the
policy instruments used and the results to be expected from them This context is important
for any fair assessment of the achievements or otherwise of each Programme
Nonetheless when it came to the processes used to promote SMEs and innovation the
differences could often be considered as involving variations around a series of central themes
In all the cases considered there was a strong emphasis on promoting innovation as a
central objective yet this was done in a variety of ways and had differing relationships with
the objective of SME promotion In a number of cases support for SMEs was itself very much
seen as part of this process of encouraging innovation including in the case of the Icircle-de-
France where it involved encouraging new forms of enterprise dedicated to pursuing social
innovation In other cases however there was a clear commitment to provide general support
to SMEs and especially after the extent of the economic crisis became apparent some re-
programming to ensure this
Consequently targeting policies were not as clear cut as might have been expected There
were cases where SMEs were targeted directly ndash Apulia and Castile amp Leon but even here
there was also an element of trying to ensure that enterprises that were capable of benefitting
from support were the one to receive it while elsewhere a subtle lsquosoft targetingrsquo was more
evident where the instruments were shaped to achieve a certain selectivity not by defining
exclusions but by requiring for instance a commitment to change and growth on the part of
18
participants In Denmark for example those encouraged to become members of cluster
organisations had to be interested in developing their growth potential if their participation
was to serve any purpose This in effect led to a self-exclusion by those not willing to play
along with the support offered
The nature of the instruments used to implement OPs were shaped by a number of factors
Just as the objectives of an OP must take into account a large variety of details relating to the
circumstances of the relevant region or country so the precise characteristics of the
instruments to be applied must reflect not only the particular purposes for which they are to be
used the nature of the target group to be addressed and the economic and social
circumstances of the area concerned but the legacy of past interventions as well in the form
of existing support infrastructure and the capabilities developed in preceding periods In other
words support instruments are built on past actions both for positive reasons (exploiting
existing assets) but also because of their familiarity or a certain institutional inertia In any
event the large variety of circumstances in which the particular features of instruments are
determined gives rise to a wide array of actual policy instruments The review of 50 OPs
conducted as part of the evaluation identified 648 different instruments
This large variety of specific instruments however is mainly accounted for in that they are
often designed as elaborations of well-established approaches but addressing particular needs
and circumstances and also a variety of potential targets So building capacities and
competences can be undertaken for enterprises and their managers of varying degrees of
sophistication and background knowledge and can relate to a variety of matters from technical
issues to general management marketing exporting or more specialised issues such as IP
management The process of capacity building can therefore take many forms
The extent of the provision of access to finance is complicated by the question of whether or
not the provision of direct grants counts as part of this function Some substantial sums were
provided in this form by some of the OPs However generally an expected move towards the
provision of more indirect finance ndash loans and equity through intermediaries - was not as
marked as may have been anticipated General access to finance measures (equity
guarantees and reduction of credit interest) accounted for 38 of the funds allocated by the
Lithuanian OP and repayable financial support for 26 of the Apulian OP equity finance 14
in the case of Icircle-de-France 23 for loans and 35 for equity finance in that of Saxony The
other OPs had rather small amounts devoted to indirect financial instruments if any at all An
explanation offered of the small allocations to these instruments in some OPs was that the
crisis discouraged experimentation in this area that it is relatively difficult and expensive to
manage financial instruments and outside the experience of most Managing Authorities that
relatively large sums are necessary to make any appreciable impact and that results can often
take a long time to materialise
There were considerable differences in the extent to which there was provision of direct
support to enterprises In Saxony over 90 of the funds were in the form of grants and in
Icircle-de-France and in Apulia grants largely paid directly to enterprises accounted for 56 and
41 respectively of the funds allocated In Denmark by contrast no grants were paid directly
to enterprises unless they were partners in projects receiving support for developing clusters
or relationships with universities or in a small number of cases where they received funds to
hire private sector business advisers
It is useful to distinguish between different types of direct support In Poland and in Saxony a
large proportion of the direct support was for investments in innovative undertakings In
Apulia although the main part of support went to individual enterprises or SMEs it was more
evenly split between support for investment (by micro and small firms) and investment in
research In Icircle-de-France the weight of the direct support was for research projects
19
It is also interesting that analysis of a wider group of 50 OPs shows that manufacturing firms
received 33 of support ndash much greater than their share in the economy as a whole It also
showed that more than 50 of support has been directed to low-tech firms
Different forms of business support were available across the OPs including access to public
and private sources of information and advice incubator services and assistance for exporters
Castile amp Leon targeted the improvement of management capacities and this approach was
implicit in a number of other OPs
Approaches to support for innovation also took different forms Overall in the broader range
of OPs examined 24 of support was for RampD and a similar amount for business development
and direct support for RampD in collaborative and non-collaborative projects was a significant
feature of the OPs for Apulia Castile amp Leon Icircle-de-France Lithuania Poland and Saxony but
not in the Czech Republic and Denmark where FP7 was thought to be the appropriate vehicle
In Saxony strengthening the research base of enterprises in the local economy and promoting
the exploitation of knowledge was central to the OP so that the majority of the funds were
provided for investment in fixed capital and in supporting RampD This implied a certain targeting
within the SME population In Icircle-de-France the bulk of the support also went to research
projects and support for technology transfer and incubators though there was also support for
SME creation in distressed areas for access to finance and for social innovation projects In
Denmark the focus was more on promoting clusters and encouraging links between enterprises
and science institutions
In some cases however the picture was more mixed In Lithuania where 38 of funding went
to access to finance measures a further 30 to up-grading technology and processes but
there was also direct support for RampD and RampD infrastructure and support for networking and
clusters promoting innovation Similarly in Apulia there was support for research by SMEs
and measures to promote consulting services for technical innovation regional innovation
partnerships and aid for access to ICT alongside aid to investment in micro and small firms
and credit guarantees and support for tourism
Knowledge transfer also featured in many of the OPs Building relationships between
knowledge institutions and enterprises was an important objective for Denmark as part of
developing regional innovation capacities though the results were mixed at least in part
because of an unresponsive culture in certain universities In other cases these relationships
were promoted by collaborative research projects (Icircle-de-France Saxony) and in the case of
Lithuania by the use of vouchers Overall however it is perhaps surprising that building
relationships between knowledge institutions and enterprises did not have a higher profile
The development of clusters was an instrument used in the Czech Republic Lithuania and
Denmark where in some regions it absorbed a large proportion of the available funds and
where the focus was on emerging sectors such as clean technology energy health and welfare
and the experience economy Cluster support in this case consisted of a relatively complex set
of services provided for cluster members In the Czech Republic and Lithuania cluster
development was itself less developed and related to low-tech sectors with potential for
innovation and growth
Underlying these differences between Programmes there were variations in the approach to
governance This has become an important issue for all of the regions and countries
considered In part this is linked to the aspiration at least to establish transparent evidence-
based policy processes which has brought in the development of monitoring and evaluation
systems but there are more central elements of governance to do with who is involved in
decision-making and how decisions are taken that are also part of the picture The
development of stakeholder involvement in strategy formation in the setting of priorities and
even in elements of implementation was apparent in many of the cases throughout the
20
programming period In Denmark the whole (national and EU) strategy was based from the
beginning on a national consensus established through political and open public debates and
implemented through regional bodies with a strong stakeholder representation In Apulia a
self-evaluation exercise led to new departures in response to the crisis
There were however other issues of governance alluded to in the seminar relating to but the
alignment of the OP with national strategies and the organisational mechanisms adopted to
implement the strategy chosen by each OP These can have considerable influence on the
degree to which the Managing Authority can directly influence the implementation
mechanisms
Finally account must be taken of the differential impacts of the recession In Apulia and
Castile amp Leon there was formal reprogramming largely as a result of the recession and
changes in the instrument set utilised To a certain extent this meant a scaling down of
ambitions when for many enterprises it was a matter of survival rather than developing new
ventures Even here though the story does not always move in the same direction In the case
of Apulia for instance while it was necessary in part to refocus support on the broad range of
enterprises suffering from the recession at the same time the crisis acted as a stimulus to new
thinking after the conduct of a self-evaluation exercise
242 A common framework
Overall it can be seen that within the diversity shown by the eight cases there are at least a
number of common themes which are belong addressed in different ways The question does
arise however of whether it might be possible to go further to offer an explanation of the
diversity
External experts at the seminar advised that a theoretical framework should be sought to
make greater sense of the quantitative material and provide the basis for a more deliberative
judgement on the effectiveness of policy and how support funds can be best spent
One possibility is to take the differing circumstances of the OPs as themselves being an
explanatory factor and in a further step see the differences in the nature of the instruments
deployed as being part of an evolutionary process This approach also has the merit of linking
a debate on instruments with broader considerations in the promotion of innovation and
competitiveness at a European level
The reference in section 1 above to the position of the countries covered by the case studies
and their innovation performance as characterised by the Innovation Union Scoreboard and
in further detail at a regional level by the Regional Innovation Scoreboard 2012 allows a
distinction to be made between countries and regions in four categories - lsquoleadersrsquo lsquofollowersrsquo
those with a moderate lsquoperformancersquo and those lsquocatching-uprsquo The respective positions of the
eight cases have been set out in section 1
The approach suggested at the seminar was essentially to explore the hypothesis that the
overall lsquoinnovationrsquo position of regionscountries determines the types of instrument
used their targeting and ultimately their relative performance It may be that the
categorisation help us explain the differences in the objectives set the instruments that are
appropriate and their targeting and that this in turn also influences the performance that can
be expected Regionscountries for instance that are in the lsquoless developedrsquo categories may
have to strengthen their basic support infrastructure and service provision and the
performance of the enterprise base and that of other important players such as knowledge
institutions public authorities etc The regionscountries in the more lsquoadvancedrsquo positions on
the other hand have to build on their strengths in order to maintain or enhance their position
by promoting more productive research and strengthening the links between the science base
and enterprises
21
This possible framework provides an interesting line of enquiry to be followed up in further
stages of the evaluation It does however also address other issues raised in the seminar
such as whether support should be directed to high-tech enterprises or as was argued in
relation to a number of the countries present the gains to be had from the improvement of
the performance of mid and low-tech firms are more relevant in certain stages of
development
22
3 NEXT STEP THEORY-BASED IMPACT EVALUATIONS
As the implementation of the evaluation study proceeds and the case studies (Task 3) are
being drafted the Team is in the course of identifying three policy instruments to be assessed
by as many theory-based impact evaluations as foreseen in Task 4 The three instruments
should be selected out of the long list of seven instruments suggested in the First Intermediate
Report and in consultation with the European Commission
The Team puts forward hereby a possible list of three policy instruments The main criteria
considered for their selection are
i The degree of representativeness of the typologies of policy instruments used in the 50
OPs as outlined in the First Intermediate Report the most significant categories of
policy instruments in terms of public expenditure are
Business creation and development ie instruments designed to stimulate
investments in the business sector without a predominant emphasis on RampD
and innovation
Support for RampD projects
Support for the development of technological and non-technological innovation
without any research and experimental development activities
ii The feasibility of a theory-based impact evaluation based on a survey of beneficiaries
which implies the availability of a sufficiently large number of beneficiaries and the
possibility to easily get their email contacts also with the help of the Managing
Authority or the implementing body the best option is to have at least some hundreds
beneficiary SMEs for each instrument
iii The importance of the policy instrument within the policy mix of the OP which ensures
the availability of a good amount of information resulting from the case study
regarding in particular its logic of intervention information about beneficiaries and
effectiveness
iv Preference is assigned to instruments on which no other surveys to beneficiaries have
been conducted so far in order not to put excessive burden on the same SMEs which
could undermine their willingness to contribute to our study
Based on these considerations the three policy instruments we propose for a theory-based
impact evaluation are presented in the table below It can be noticed that the list also ensures
geographical balance between Convergence and Competitiveness and Employment region as
well as Old and New Member States and regional and national OPs For the sake of
completeness and comparability for all the seven candidate instruments the pros and cons for
selecting each of them are detailed
23
Table 4 Comparison of the policy instruments and reasons for selection
Proposed for
selection
Type of policy
instrument
Selected policy
instrument
Operational Programme and
type of regioncountry
Descriptive information Specific reason for selection
for a TBIE Possible reasons for
rejection
YES Business creation and development
ldquoAid to investment projects by micro and small enterprisesrdquo
Regional OP Apulia (Italy) - Convergence region
- Old Member State
The instrument supports the purchase of machineries computer systems buildings construction works for enterprises in order to encourage the development of micro and small companies It benefitted more than 3 thousand SMEs For around 30 of beneficiaries grants have been combined with credit guarantees
- Very common type of SME support on which vast literature has been produced
- Very large number of beneficiary SMEs
- The strong relationship already established with local stakeholders and many SMEs would allow to easily and quickly test the surveyrsquos questionnaires before the launch of the three TBIEs
- For some SMEs opportunity to analyse the complimentary efforts of two forms of support (grants and a combination of grants and guarantees) and their respective effectiveness
- None
YES Support for RampD projects
ldquoGrants for Industrial Research and Experimental Developmentrdquo
Regional OP Castilla y Leon (Spain) - Competitiveness and Employment region
- Old Member State
The instrument encourages the development of RampD projects with the purpose of increasing the basis of number of innovative enterprises investment and personnel in RampD In total 759 projects of SMEs have been supported through grants 204 SMEs have conducted their project in collaboration with research organisations
- In analysing the achievement of beneficiary SMEs as well as the behavioural change opportunity to distinguish between SMEs which have realized their projects independently rather than in collaboration with a research centre
- According to the country expert among all the policy instruments of this OP this is the one for which it would be easier to get the contact details of beneficiary SMEs
- Possibility to get active collaboration by the regional authority ADE eg sending out an introductory letter to all
- None
24
Proposed for
selection
Type of policy
instrument
Selected policy
instrument
Operational Programme and
type of regioncountry
Descriptive information Specific reason for selection
for a TBIE Possible reasons for
rejection
SMEs mentioning that they will receive an invitation to a survey and inviting them to reply
YES Support for the development of technological and non-technological innovation
ldquoFinancing of individual projects for SMEsrdquo
National OP Poland Innovative Economy - Convergence country
- New Member State
The instrument provides grants to support the technological innovation of SMEs In particular it aims to stimulate the adoption of more risky and innovative solutions The instrument performed far better than expected 698 projects have been realised up to 2013 by approximately as many SMEs The instrument is delivered by a financial intermediary
- This instrument belongs to the OP which has provided the largest financial contribution to SMEs within the full sample of 50 OPs furthermore this is one of the core instrument of the programme as also reflected in the volume of public contribution which is among the highest of the OP (more than EUR 300 million fully targeted to SMEs)
- Opportunity to examine the role played by the intermediary according to the perceptions and opinions of beneficiary SMEs
- None
NO Support for RampD projects
ldquoRampD project grants for individual enterprisesrdquo
Germany regional OP Saxony - Convergence region
- Old Member State
The instrument provides grants to individual enterprises for supporting the implementation of RampD projects
- Evidence of achievement is already available since the instrument was subject of another evaluation study and enterprise survey a few years ago The TBIE would allow to better qualify the instrumentsrsquo achievements and the causal chain leading to the certain effects
- According to the country experts beneficiary SMEs may be reluctant to participate to another survey
- Less than 200 beneficiary SMEs a lower number as compared with other candidate policy instruments
- It is still uncertain whether it will be possible to get the email addresses of beneficiary SMEs
25
Proposed for
selection
Type of policy
instrument
Selected policy
instrument
Operational Programme and
type of regioncountry
Descriptive information Specific reason for selection
for a TBIE Possible reasons for
rejection
NO Support for the development of technological and non-technological innovation
ldquoSupport for technological upgrade - LEADER LTrdquo
Lithuania - Economic Growth - Convergence country
- New Member State
The instrument supports the increase of productivity in enterprises by supporting production technology upgrading The investment into the acquisition or upgrade of technologies and related internal engineering infrastructures are supported
- Email contacts particularly easy to be collected
- Result indicators are available due to an effective Structural Funds monitoring system and because the instrument was already subject of a previous evaluation study
- Very low number of beneficiary SMEs (69) which would make this instrument less suitable for launching an on-line survey as compared with other candidate instruments
NO Support for the development of technological and non-technological innovation
ldquoSupport for non-technological innovation - PROCESS LTrdquo
Lithuania - Economic Growth - Convergence country
- New Member State
The instrument aims to increase productivity in enterprises by implementing modern management methods and processes except of personnel management systems The purchase of external consulting services is supported in order to upgrade enterprises management processes
- Email contacts particularly easy to be collected
- Result indicators are available due to an effective Structural Funds monitoring system and because the instrument was already subject of a previous evaluation study
- The instrument is considered highly relevant by the target beneficiaries
- Very low number of beneficiary SMEs (119)
- As compared with other categories of policy instruments support for non-technological innovation is relatively less significant and representative of the typical forms of support provided to SMEs in the EU
NO Support for networking
ldquoInteraction on Innovationrdquo later merged with ldquoCluster relationshiprdquo
Denmark Innovation and Knowledge OP - Competitiveness and Employment country
- Old Member State
The policy instrument aims at analysing opportunities for creating clusters promoting networks and the formation of clusters of SMEs in particular as well as clusters of supplier networks for SMEs These objectives are pursued by providing grants to SMEs in partnership with universities (according to the triple helix model)
- Opportunity to better analyse the effects of a policy instrument on which a vast amount of literature has been produced
- Opportunity to dig into the collaboration mechanisms between SMEs and universities
- As compared with other categories of policy instruments support for networking is relatively less significant and representative of the typical forms of support provided to SMEs in the EU
- The number and characteristics of SMEs benefitting from this instrument remain unknown even after implementing the case
26
Proposed for
selection
Type of policy
instrument
Selected policy
instrument
Operational Programme and
type of regioncountry
Descriptive information Specific reason for selection
for a TBIE Possible reasons for
rejection
study The lack of data at policy instrument level prevents from identifying the beneficiary SMEs to which launching the on-line survey
27
4 ANNEX SEMINAR PARTICIPANTS
Name Description Organisation
DG REGIO Evaluation Unit
Rudolf Niessler Director DG REGIO B Policy
Veronica Gaffey Head of Evaluation Unit DG REGIO B2
Marielle Richeacute Evaluation Unit DG REGIO B2
Kai Stryczynski Deputy Head of Unit DG REGIO B2
Daniel Mouqueacute Evaluation Unit DG REGIO B2
CSIL Evaluation Team
Massimo Florio Evaluation team Director CSIL
Julie Pellegrin Evaluation team Project Manager CSIL
Silvia Vignetti Evaluation team CSIL
Emanuela Sirtori Evaluation team CSIL
Mike Coyne Evaluation team CSES
Malin Carlberg Evaluation team CSES
Anna-Maria Krarup Evaluation team CSES
Christian Koehler Case Study Saxony Centre for European Economic Research (ZEW)
Jaime del Castillo Case Study Castile amp Leon President INFYDE
Agnė Paliokaitė Case Study Lithuania Visionary Analytics
Elena Jarocinska Case Study Poland
Commission Officials
Katja Reppel Deputy Head of Unit Competence Centre Smart and Sustainable Growth
DG REGIO G1
Bernd Reichert Head of Unit H2020 SME EASME
Peter Wragg Head of Unit SME Access to Markets DG GROW F2
Jean David Malo Head of Unit SMEs Financial Instruments amp State Aid DG RTD B3
28
Istvan Nemeth Policy Officer - Enterprise Europe Network DG GROW F2
External Experts
Harvey Armstrong Professor Emeritus in the Department of Geography University of Sheffield
Robert Picciotto Visiting Professor Kings College London
Mark Sanders Professor University of Utrecht
Jiri Blazek Associate Professor Charles University Prague
Stakeholders ndash Case Studies
Adriana Agrimi Manager of RampI Policy Instrument Apulia Managing Authority
Kasper Westh Senior official Growth Forum Secretariat South Denmark
Simona Daukilaite
Deputy Head of the Economic Growth Operational Programme
Economic Growth OP Lithuania Managing Authority
Beatriz Casado Saenz Vice-General Director ADE (Development Agency Castile amp Leon)
Tomasz Kula Analysis and Evaluation Team Competitiveness and Innovation Department
Ministry of Infrastructure and Development (PL)
Representatives of other Work Packages
Terry Ward WP 1 Applica
Andreas Resch WP 3 Metis-Vienna
Anda Berenyi WP 4 KPMG
LEGAL NOTICE
This document has been prepared for the European Commission however it reflects the views only of the authors and the Commission cannot be held responsible for any use which may be made of the information
contained therein
More information on the European Union is available on the Internet (httpwwweuropaeu)
Luxembourg Publications Office of the European Union 2014
ISBN [number]
doi[number]
copy European Union 2015
Reproduction is authorised provided the source is acknowledged
Printed in [Country]
PRINTED ON ELEMENTAL CHLORINE-FREE BLEACHED PAPER (ECF)
PRINTED ON TOTALLY CHLORINE-FREE BLEACHED PAPER (TCF) PRINTED ON RECYCLED PAPER
PRINTED ON PROCESS CHLORINE-FREE RECYCLED PAPER (PCF)
Europe Direct is a service to help you find answers to your questions about the European Union
Freephone number ()
00 800 6 7 8 9 10 11
() The information given is free as are most calls (though some operators phone boxes or hotels may charge you)
6
LIST OF ABBREVIATIONS
BERD Business Expenditure in Research and Development
CONV Convergence (Cohesion Policy objective)
COMP Competitiveness and Employment (Cohesion Policy objective)
CZ Czech Republic
DE Germany
DG REGIO Directorate-General for Regional and Urban Policy
DK Denmark
EC European Commission
ERDF European Regional Development Fund
ES Spain
EU European Union
EUR Euro
FDI Foreign Direct Investment
FR France
GDP Gross Domestic Product
GERD Gross Expenditure in Research and Development
GVA Gross Value Added
ICT Information and Communication Technology
IT Italy
LT Lithuania
M EUR Million Euro
MA Managing Authority
MS Member State
MULTIREG Multiregional
NACE Nomenclature statistique des activiteacutes eacuteconomiques (Statistical
classification for economic activities)
NAT National
NUTS Nomenclature of territorial units for statistics
OP Operational Programme
PL Poland
RampD Research and Development
RampTD Research and technological development
REG Regional
RTDI Research technological development and innovation
SF Structural Fund
SME Small and medium enterprise
TBIE Theory-based impact evaluation
ToR Terms of Reference
WP Work package
7
FOREWORD
This is the Second Intermediate Report of the ex-post evaluation of Support to Small and
Medium Enterprises (SMEs) ndash Increasing Research and Innovation in SMEs and SME
development The objective of the evaluation is to assess the effectiveness and the impact of
the European Regional Development Fund (ERDF) with regards to support for innovation and
the development of SMEs in the European Union over the 2007-2013 programming period
This report presents the results of Tasks 3 and 5 ie the eight case studies in selected
regions and the stakeholder seminar organised in Brussels the 29th of April 2015 to discuss
the findings from the different tasks and especially from the case studies The volume at hand
contains an overview of the eight selected case studies as well as an overview of the
organisation and results of the seminar while the eight case studies form separate self-
standing reports
8
1 OVERVIEW OF THE SELECTED OPERATIONAL PROGRAMMES
This Chapter provides an introductory overview of Operational Programmes (OPs) supporting
the growth and innovation processes of Small and Medium Enterprises (SMEs) which are
subject of the case studies included and discussed in this report
The Terms of Reference indicate a list of 50 Operational Programmes co-financed in the period
2007-2013 by the European Regional Development Fund (ERDF) in 23 EU Member States All
50 OPs and policy instruments targeted to SMEs included therein have been examined The
results of this preliminary analysis are included in the First Intermediate Report From the full
list of 50 OPs the evaluation team has selected 8 OPs for a more in-depth analysis which are
1 Italy ndash Apulia (2007IT161PO010) carried out as a pilot case study
2 France ndash Icircle-de-France (2007FR162PO012)
3 Germany ndash Sachsen (2007DE161PO004)
4 Denmark - Innovation and Knowledge (2007DK162PO001)
5 Spain ndash Castilla y Leoacuten (2007ES162PO009)
6 Czech Republic ndash Business and Innovation (2007CZ161PO004)
7 Poland ndash Innovative Economy (2007PL161PO001)
8 Lithuania ndash Economic Growth (2007LT161PO002)
These OPs have been selected in order to fulfil the following conditions
to ensure a balance between regional and national cases
to ensure a balance between Convergence and regional Competitiveness objectives
also between EU 12 and EU 15
to include territories with different SME typologies
to account for strategies based on different mixes of policy instruments
the presence of a collaborative Managing Authority in order to ease data collection
The result of the selection is a list of Programmes which constitute a purposeful set that
assures the greatest representativeness in terms of socio-economic context and regional
strategy and offers the opportunity to discover relevant lessons on mechanisms concerning
SME support
9
Figure 1 Map of OPs selected for in-depth study
Denmark ndash Innovation
and knowledge
(2007DK162PO001)
Germany ndash Saxony
(2007DE161PO004)
France ndash Icircle-de-France
(2007FR162PO012)
Spain ndash Castilla y Leoacuten
(2007ES162PO009)
Italy ndash Apulia
(2007IT161PO010)
Lithuania ndash Economic
Growth
(2007LT161PO002)
Czech Republic ndash
Business and Innovation
(2007CZ161PO004)
Poland ndash Innovative
Economy
(2007PL161PO001)
Source CSIL
These eight OPs have been evaluated in order to enrich the preliminary hypotheses derived in
Task 1 on the mix of policy instruments adopted to promote SME growth and innovation across
the EU and on their outcomes The diversity of OPs included in the sample allows to account
for different regional and national specificities thus bringing context variables more forcefully
into the picture
In particular the selection of OPs both at regional (such as Apulia or Saxony the former at
NUTS 2 level the latter at NUTS 1 level) and national level (such as the Polish or Danish
programme) in eight different countries allows providing a panorama of different institutional
context features and regional innovation systems in place which can play an important role on
the delivery mechanisms of support along with their effectiveness The analysis encompasses
areas which have been touched to a different extent by the economic recession and which
belong to different Cohesion Policy objectives which is likely to affect their capacity to react to
the crisis and overcome structural barriers hindering SME development and innovativeness
The number of SMEs based in the areas targeted by the OPs range from nearly two hundred
thousand as in Saxony or in small countries such as Denmark and Lithuania to almost or
more than 1 million as in the Czech Republic and Poland This variance is reflected in the
volume of ERDF contribution dedicated to SMEs which is highest in Poland and Czech Republic
However the sample includes also an example of OP which dedicates a relatively limited
amount of ERDF to SMEs in spite of the large number of SMEs in the region it is the OP of Icircle-
de-France
10
Table 1 Eight Operational Programmes observed
OP
Cohesion
Policy
objective
EU 12
(ldquoNewrdquo
Member
States) or
EU15 (ldquoOld
Member
States)
NUTS level
Volume of EU
contribution for WP2
themes (EUR
million)
of EU contribution
for WP2 themes over
total contrib for
the OP
Total
population
of the area
covered by
the OP
GDP (PPS)
per capita
(average
2007-2011)
(EUR)
Total
number of
SMEs ()
Total
intramural
expenditure
in RampD
(GERD) ndash
2007-2011
average
Business
expenditure
in RampD
(BERD) ndash
2007-2011
average
1 Italy ndash Apulia Convergence EU15 NUTS 2 region
645 25 4 million 16640 218 thousand
(in 2011)
075 of
GDP
017 of
GDP
2 France ndash Icircle-
de-France
Competitiveness
and Employment EU15
NUTS 2
region 60 42 118 million 43360
727 thousand
(in 2011)
298 of
GDP
198 of
GDP
3 Germany -
Saxony Convergence EU15
NUTS 2
region 846 29 42 million 21040
140 thousand
(in 2012)
277 of
GDP
131 of
GDP
4 Denmark - Innovation and
knowledge
Competitiveness and Employment
EU15 NUTS 0 country
203
82
55 million 30660 213 thousand
(in 2013)
274 of
GDP
187 of
GDP
5 Spain ndash Castilla
y Leoacuten
Competitiveness
and Employment EU15
NUTS 2
region 269 36 255 million 23860
131 thousand
(in 2013)
109 of
GDP
061 of
GDP
6 Czech Republic - Business and
Innovation
Convergence EU12
NUTS 0
(except capital city
region)
2282 73 105 million 16960 928 thousand
(in 2013)
112 of
GDP
078 of
GDP
7 Poland - Innovative
Economy
Convergence EU12 NUTS 0 country
5287 62 38 million 14740 15 million (in
2013)
066 of
GDP
020 of
GDP
8 Lithuania -
Economic
Growth
Convergence EU12 NUTS 0
country 760 25 3 million 15440
115 thousand
(in 2013)
085 of
GDP
024 of
GDP
Source Eurostat and EC Performance Review 2014
Note () CSIL elaboration of National Statistical Office data (NACE sectors B-N excl K)
11
As shown in Table 1 the heterogeneity of areas covered by the case studies can be highlighted
also if considering the total intramural RampD expenditure or business RampD expenditure
According to the Global Innovation Index 2014 (Cornell University INSEAD and WIPO 2014)1
which combines innovation input measures and output measures the EU areas of the sample
cover a wide range or ranking categories (see Table 2 below)
Table 2 Global Innovation Index ranking ndash 2014
Global Innovation Index 2014 ranking
Top 10 11-20 21-30 31-40 40-60
UK Ireland Austria Cyprus Croatia
Sweden Germany France Italy Bulgaria
Finland Belgium Portugal Poland
Netherlands Estonia Latvia Greece
Denmark Malta Hungary Romania
Luxembourg Czech Republic
Slovakia
Spain Lithuania
Slovenia
Note The eight case studies are indicated by the asterisks
Source CSIL based on Cornell University INSEAD and WIPO (2014)
A more focused picture can be obtained using data from the Innovation Union Scoreboard
2012 covering the years 2007 ndash 2011 which ranks not only Member States but also regions in
terms of their performance against a set of indicators of innovation2 Specifically it places
countries and regions in four categories distinguishing between lsquoleadersrsquo lsquofollowersrsquo those
with a moderate lsquoperformancersquo and those lsquocatching-uprsquo Table 3 shows the position attributed
by the Scoreboard to the target area that have been examined in case studies
Table 3 Innovation Scoreboard Attribution
Leader Follower Moderate Modest
Catching-up
Denmark
Icircle-de-France
Saxony
Castile amp Leoacuten
Czech Republic
Poland
Apulia
Lithuania
Source European Innovation Scoreboard 2007 amp Regional Innovation Scoreboard 2012 Note Convergence region
Other regions Competitiveness amp Employment
According to the analysis of the SME-related policy instruments performed as part of Task 1
the eight OPs account for different intervention strategies as reflected in the mix of policy
instruments implemented (Figure 2) and the mode of delivery of such instruments (Figure 3)
Actually the sample includes some OPs whose primary aim is to promote business creation
and development (such as the Czech Spain Italian and Lithuanian OPs) others where public
expenditure is more concentrated on support for RampD projects (such as the German and the
1 Cornell University INSEAD and WIPO (2014) The Global Innovation Index 2014 The Human Factor In innovation
Fontainebleau Ithaca and Geneva 2 The Regional Innovation Scoreboard 2012 applies the same methodology as far as it was possible to Member State
and regions Because of data availability problems at a regional level it was not possible to exactly replicate the
methodology but the results obtained were checked for consistency with the national level scoreboard One other
change was that those regions appearing in the last category were referred to as having lsquomodestrsquo innovation
performance
12
French OPs) for increasing technological and non-technological innovation (Polish OP) One OP
is focused on increasing networking and knowledge and technology transfer (Danish OP)
Figure 2 Paid amount by type of policy instruments in the eight OPs
0
10
20
30
40
50
60
70
80
90
100
CZ - CzechRepublic
DE - Saxony DK - Denmark ES - Castilla yLeoacuten
FR - Icircle deFrance
IT - Apulia LT - Lithuania PL - Poland
Support for RampD projects
Support for improving capacities
Networking
Knowledge and technology transfer
Internationalisation and visibility
Infrastructures and related services
Generic access to finance
Development of technological or non-technological innovation
Creation of innovative companies
Business creation and development
Access and diffusion of ICT
Note paid amount refers to both ERDF and public funds paid to beneficiaries
The public support has been largely delivered in the form of grants in five out of the eight
considered OPs which is in line with the predominance of traditional direct support across the
entire EU There are however some exceptions in Lithuania and especially Poland more
often public support has been conveyed through packages of support usually combining
grants with consulting services Equity finance is quite relevant in Icircle-de-France Lithuania and
Saxony while some preference for using repayable financial support can be observed in Apulia
and the Czech Republic
13
Figure 3 Paid amount by mode of delivery in the eight OPs
0 10 20 30 40 50 60 70 80 90 100
CZ - CzechRepublic
DE - Saxony
DK - Denmark
ES - Castilla yLeoacuten
FR - Icircle de France
IT - Apulia
LT - Lithuania
PL - Poland
Equity finance + Repayable financial support
Consulting services + training + search of businesspartnersConsulting advice technical assistance
Consulting advice technical assistance +Information campaing eventsEquity finance
Grants
Grants + consulting services + training
Grants + Consulting advice technical assistance
Grants + Loans + Information campaigns
Grants + Provision of infrastructure and services +Consulting advice technical assistanceGrants + training
Information campaign events seminars
Provision of infrastructure and services +Consulting advice technical assistanceProvision of infrastructures
Repayable financial support
Source CSIL elaboration Note Paid amount refers to both ERDF and public contributions
14
The eight OPs have provided of support to around 48 thousand SMEs representing 20 of the
total number of beneficiary SMEs ascribable to the full sample of 50 OPs The number of
beneficiary SMEs is the highest for the OPs of Poland and Lithuania with more than 10
thousand and 12 thousand beneficiaries on the other hand the French OP has supported less
than 300 SMEs
Figure 4 Number of beneficiary SMEs of the eight OPs
00
10
20
30
40
50
60
70
80
90
100
0
2000
4000
6000
8000
10000
12000
14000
PL - Poland LT - Lithuania IT - Apulia ES - Castilla yLeoacuten
CZ - CzechRepublic
DE - Saxony FR - Icircle de France
Number of beneficiary SMEs Share of beneficiary SMEs over the total number of SMEs in the target area
Source CSIL elaboration Note Missing data for Denmark since the exact number of beneficiary SMEs is not available
In order to assess the intervention strategy of the OPs besides the absolute number of
beneficiaries it is particularly interesting to look at the distribution of beneficiaries according to
their size and technology intensity The analysis on the 50 OPs has revealed that the micro
enterprises generally represent the large majority of SMEs benefiting from ERDF support
(54) followed by small (30) and medium enterprises (16) The analysis has documented
the predominantly low technological intensity of beneficiary SMEs the majority of SMEs (53)
belong to sectors with a low share of business RampD expenditure over the value added by
sector However it is also noted that almost one quarter of all beneficiaries (24) has a
medium-high technological level Medium low-tech or high tech companies represent a lower
share of all the identified beneficiaries ie 14 and 9 respectively
The proportion of beneficiary SMEs in the eight OPs provides a more diversified picture (Figure
5 and 6) The Czech OP Enterprise and Innovation has directed the public support mainly to
small and medium size companies with a fair distribution in terms of technology intensity
Conversely the regional Apulia OP target micro enterprises characterised by either a low or a
medium-high technology intensity The Lithuanian OP has mostly supported low-tech
companies without significant differentiation in terms of size
15
Figure 5 Share of beneficiary SMEs by size class in the eight OPs
0
10
20
30
40
50
60
70
80
90
100
CZ - Czech Republic(Innov)
ES - Castilla y Leoacuten FR - Icircle de France IT - Apulia LT - Lithuania PL - Poland
Micro enterprises Small enterprises Medium enterprises
Source CSIL elaboration Note Missing data for Saxony and Denmark since the size class of beneficiary SMEs is not
available
Figure 6 Share of beneficiary SMEs by technology intensity level in the eight OPs
0
10
20
30
40
50
60
70
80
90
100
CZ - CzechRepublic
DE - Saxony ES - Castilla yLeoacuten
FR - Icircle deFrance
IT - Apulia LT - Lithuania PL - Poland
Low tech
Medium-low tech
Medium-high tech
High tech
Source CSIL elaboration Missing data for Denmark since the level of technological intensity cannot be estimated due
to missing data on sectoral disaggregation of beneficiary SMEs
Whether the characteristics of beneficiary SMEs simply mirror the specific characteristics of the
population of SMEs in the area covered by the OPs or result from different logics of
intervention underneath the OPs or from a mix of the two possible reasons is investigated in
the case studies
16
2 RESULTS OF THE SEMINAR
The aim of a ldquostakeholder seminarrdquo held on 29th April 2015 was to present the preliminary
findings and the main issues identified in other tasks undertaken for this Work Package and
especially those emerging from the eight case studies of Operational Programmes and to
discuss the policy implications and main lessons with Commission staff the evaluation team
members (and representatives of other Work Packages) academic experts and people
involved in the implementation of the Operational Programmes on the ground (see list of
participants in Annex) The following provides an overview setting out the main highlights in
the results from the presentations of the eight case studies
The seminar was organised in relation to three themes as follows
1) Targeting high vs low tech firms the case studies of Lithuania Saxony and Poland
2) Promoting widespread vs selective instruments the case studies of Apulia Castile amp
Leon and the Czech Republic
3) ERDF and the regional policy mix the case studies of Icircle-de-France and Denmark
Other issues that it was intended to highlight during the course of the discussion included
The issue of direct versus indirect support
Economic development versus anti-cyclical intervention
Supporting enabling organisations
Supporting individual enterprises as against partnerships
21 Targeting high vs low tech firms
In Lithuania the challenge was to build competitive advantage on the basis of labour-intensive
technologies The traditional sectors were in need of upgrading and the majority of the funds
were allocated to low tech companies In Saxony there was a demand driven approach but
also a realisation that low tech firms can improve competitiveness through cost reduction
Technologyprocess upgrading as subset to innovation can be justified but concentration of
spending on RampD has established Saxony as one of the German RampD powerhouses and
contributed to market access an increase in turnover and employment growth In Poland it
was thought that for countries that are not leading technological change the returns from
innovation are particularly high in low-tech manufacturing sectors but that as a country
approaches the technological frontier the policy should focus on RampD and innovative start-up
In discussion a central question was posed where does the investment pay most
22 Promoting widespread vs selective instruments
In Apulia the strategy was adjusted through re-programming to provide broad support to
SMEs to allow them to survive during the crisis and recession a dual approach was adopted
with selective support for SMEs with the internal capacity to manage innovation processes
including demand-side measures In Castile amp Leon the impact of the crisis was also intense
and broadly-based support was necessary but there were also efforts to build up the support
infrastructure and to provide in-depth support to enterprises identified as capable of innovation
and growth In the Czech Republic there was again both broadly-based and selective support
especially to address the ldquoBranch-plant syndromerdquo (where branches of international firms allow
little room for independent development by local suppliers) There was a focus on transferring
RampD results into production by stimulating demand for RampD results with 13 of the funds
going to support for innovation activities
17
23 ERDF and the regional policy mix
The last two cases are examples of OPs for areas which are relatively prosperous and where
RampD and innovation are relatively strong The ERDF budgets however were relatively small
In the Icircle-de-France (IdF) there was a pragmatic and demand-driven implementation
palliating perceived gaps in regional public support and enlarging the available financial
support targeting high growth high tech sectors appears to pay off in the IdF context In
Denmark there was a more strategic approach which was well integrated into national
strategy but with flexible implementation with strong stakeholder involvement in 6 regional
programmes There were interesting applications of the triple helix model amp successful cluster
developments
In all cases there was comment on the strength of monitoring and evaluation systems These
varied considerably from a relatively under-developed system in Apulia to a relatively strong
one in Icircle-de-France Denmark had organised a counterfactual analysis of enterprises
supported by the OP as against similar enterprises not receiving support
24 Synthesis
241 Diversity across themes
The first impression made by the presentations was the diversity of the interventions in the
eight cases There are several dimensions to these differences beginning with the context in
which the OP was implemented where there were differences relating to
The size of the regionsMember States targeted The absolute and relative size of the Programmes within the regions and countries in which
they operated and the effects that could reasonably be expected from them The size and structure of the SME population its sectoral distribution and its capacities
and assets The economic context within which the OPs operated and especially the way that the
economic crisis impacted on each area over the course of the programming period The endowment of SME and innovation support infrastructure and culture determining the
base on which the OPs could build
In fact the detailed investigations have confirmed the importance of the specific context in
which each OP was conceived and implemented for the determination of the nature of the
policy instruments used and the results to be expected from them This context is important
for any fair assessment of the achievements or otherwise of each Programme
Nonetheless when it came to the processes used to promote SMEs and innovation the
differences could often be considered as involving variations around a series of central themes
In all the cases considered there was a strong emphasis on promoting innovation as a
central objective yet this was done in a variety of ways and had differing relationships with
the objective of SME promotion In a number of cases support for SMEs was itself very much
seen as part of this process of encouraging innovation including in the case of the Icircle-de-
France where it involved encouraging new forms of enterprise dedicated to pursuing social
innovation In other cases however there was a clear commitment to provide general support
to SMEs and especially after the extent of the economic crisis became apparent some re-
programming to ensure this
Consequently targeting policies were not as clear cut as might have been expected There
were cases where SMEs were targeted directly ndash Apulia and Castile amp Leon but even here
there was also an element of trying to ensure that enterprises that were capable of benefitting
from support were the one to receive it while elsewhere a subtle lsquosoft targetingrsquo was more
evident where the instruments were shaped to achieve a certain selectivity not by defining
exclusions but by requiring for instance a commitment to change and growth on the part of
18
participants In Denmark for example those encouraged to become members of cluster
organisations had to be interested in developing their growth potential if their participation
was to serve any purpose This in effect led to a self-exclusion by those not willing to play
along with the support offered
The nature of the instruments used to implement OPs were shaped by a number of factors
Just as the objectives of an OP must take into account a large variety of details relating to the
circumstances of the relevant region or country so the precise characteristics of the
instruments to be applied must reflect not only the particular purposes for which they are to be
used the nature of the target group to be addressed and the economic and social
circumstances of the area concerned but the legacy of past interventions as well in the form
of existing support infrastructure and the capabilities developed in preceding periods In other
words support instruments are built on past actions both for positive reasons (exploiting
existing assets) but also because of their familiarity or a certain institutional inertia In any
event the large variety of circumstances in which the particular features of instruments are
determined gives rise to a wide array of actual policy instruments The review of 50 OPs
conducted as part of the evaluation identified 648 different instruments
This large variety of specific instruments however is mainly accounted for in that they are
often designed as elaborations of well-established approaches but addressing particular needs
and circumstances and also a variety of potential targets So building capacities and
competences can be undertaken for enterprises and their managers of varying degrees of
sophistication and background knowledge and can relate to a variety of matters from technical
issues to general management marketing exporting or more specialised issues such as IP
management The process of capacity building can therefore take many forms
The extent of the provision of access to finance is complicated by the question of whether or
not the provision of direct grants counts as part of this function Some substantial sums were
provided in this form by some of the OPs However generally an expected move towards the
provision of more indirect finance ndash loans and equity through intermediaries - was not as
marked as may have been anticipated General access to finance measures (equity
guarantees and reduction of credit interest) accounted for 38 of the funds allocated by the
Lithuanian OP and repayable financial support for 26 of the Apulian OP equity finance 14
in the case of Icircle-de-France 23 for loans and 35 for equity finance in that of Saxony The
other OPs had rather small amounts devoted to indirect financial instruments if any at all An
explanation offered of the small allocations to these instruments in some OPs was that the
crisis discouraged experimentation in this area that it is relatively difficult and expensive to
manage financial instruments and outside the experience of most Managing Authorities that
relatively large sums are necessary to make any appreciable impact and that results can often
take a long time to materialise
There were considerable differences in the extent to which there was provision of direct
support to enterprises In Saxony over 90 of the funds were in the form of grants and in
Icircle-de-France and in Apulia grants largely paid directly to enterprises accounted for 56 and
41 respectively of the funds allocated In Denmark by contrast no grants were paid directly
to enterprises unless they were partners in projects receiving support for developing clusters
or relationships with universities or in a small number of cases where they received funds to
hire private sector business advisers
It is useful to distinguish between different types of direct support In Poland and in Saxony a
large proportion of the direct support was for investments in innovative undertakings In
Apulia although the main part of support went to individual enterprises or SMEs it was more
evenly split between support for investment (by micro and small firms) and investment in
research In Icircle-de-France the weight of the direct support was for research projects
19
It is also interesting that analysis of a wider group of 50 OPs shows that manufacturing firms
received 33 of support ndash much greater than their share in the economy as a whole It also
showed that more than 50 of support has been directed to low-tech firms
Different forms of business support were available across the OPs including access to public
and private sources of information and advice incubator services and assistance for exporters
Castile amp Leon targeted the improvement of management capacities and this approach was
implicit in a number of other OPs
Approaches to support for innovation also took different forms Overall in the broader range
of OPs examined 24 of support was for RampD and a similar amount for business development
and direct support for RampD in collaborative and non-collaborative projects was a significant
feature of the OPs for Apulia Castile amp Leon Icircle-de-France Lithuania Poland and Saxony but
not in the Czech Republic and Denmark where FP7 was thought to be the appropriate vehicle
In Saxony strengthening the research base of enterprises in the local economy and promoting
the exploitation of knowledge was central to the OP so that the majority of the funds were
provided for investment in fixed capital and in supporting RampD This implied a certain targeting
within the SME population In Icircle-de-France the bulk of the support also went to research
projects and support for technology transfer and incubators though there was also support for
SME creation in distressed areas for access to finance and for social innovation projects In
Denmark the focus was more on promoting clusters and encouraging links between enterprises
and science institutions
In some cases however the picture was more mixed In Lithuania where 38 of funding went
to access to finance measures a further 30 to up-grading technology and processes but
there was also direct support for RampD and RampD infrastructure and support for networking and
clusters promoting innovation Similarly in Apulia there was support for research by SMEs
and measures to promote consulting services for technical innovation regional innovation
partnerships and aid for access to ICT alongside aid to investment in micro and small firms
and credit guarantees and support for tourism
Knowledge transfer also featured in many of the OPs Building relationships between
knowledge institutions and enterprises was an important objective for Denmark as part of
developing regional innovation capacities though the results were mixed at least in part
because of an unresponsive culture in certain universities In other cases these relationships
were promoted by collaborative research projects (Icircle-de-France Saxony) and in the case of
Lithuania by the use of vouchers Overall however it is perhaps surprising that building
relationships between knowledge institutions and enterprises did not have a higher profile
The development of clusters was an instrument used in the Czech Republic Lithuania and
Denmark where in some regions it absorbed a large proportion of the available funds and
where the focus was on emerging sectors such as clean technology energy health and welfare
and the experience economy Cluster support in this case consisted of a relatively complex set
of services provided for cluster members In the Czech Republic and Lithuania cluster
development was itself less developed and related to low-tech sectors with potential for
innovation and growth
Underlying these differences between Programmes there were variations in the approach to
governance This has become an important issue for all of the regions and countries
considered In part this is linked to the aspiration at least to establish transparent evidence-
based policy processes which has brought in the development of monitoring and evaluation
systems but there are more central elements of governance to do with who is involved in
decision-making and how decisions are taken that are also part of the picture The
development of stakeholder involvement in strategy formation in the setting of priorities and
even in elements of implementation was apparent in many of the cases throughout the
20
programming period In Denmark the whole (national and EU) strategy was based from the
beginning on a national consensus established through political and open public debates and
implemented through regional bodies with a strong stakeholder representation In Apulia a
self-evaluation exercise led to new departures in response to the crisis
There were however other issues of governance alluded to in the seminar relating to but the
alignment of the OP with national strategies and the organisational mechanisms adopted to
implement the strategy chosen by each OP These can have considerable influence on the
degree to which the Managing Authority can directly influence the implementation
mechanisms
Finally account must be taken of the differential impacts of the recession In Apulia and
Castile amp Leon there was formal reprogramming largely as a result of the recession and
changes in the instrument set utilised To a certain extent this meant a scaling down of
ambitions when for many enterprises it was a matter of survival rather than developing new
ventures Even here though the story does not always move in the same direction In the case
of Apulia for instance while it was necessary in part to refocus support on the broad range of
enterprises suffering from the recession at the same time the crisis acted as a stimulus to new
thinking after the conduct of a self-evaluation exercise
242 A common framework
Overall it can be seen that within the diversity shown by the eight cases there are at least a
number of common themes which are belong addressed in different ways The question does
arise however of whether it might be possible to go further to offer an explanation of the
diversity
External experts at the seminar advised that a theoretical framework should be sought to
make greater sense of the quantitative material and provide the basis for a more deliberative
judgement on the effectiveness of policy and how support funds can be best spent
One possibility is to take the differing circumstances of the OPs as themselves being an
explanatory factor and in a further step see the differences in the nature of the instruments
deployed as being part of an evolutionary process This approach also has the merit of linking
a debate on instruments with broader considerations in the promotion of innovation and
competitiveness at a European level
The reference in section 1 above to the position of the countries covered by the case studies
and their innovation performance as characterised by the Innovation Union Scoreboard and
in further detail at a regional level by the Regional Innovation Scoreboard 2012 allows a
distinction to be made between countries and regions in four categories - lsquoleadersrsquo lsquofollowersrsquo
those with a moderate lsquoperformancersquo and those lsquocatching-uprsquo The respective positions of the
eight cases have been set out in section 1
The approach suggested at the seminar was essentially to explore the hypothesis that the
overall lsquoinnovationrsquo position of regionscountries determines the types of instrument
used their targeting and ultimately their relative performance It may be that the
categorisation help us explain the differences in the objectives set the instruments that are
appropriate and their targeting and that this in turn also influences the performance that can
be expected Regionscountries for instance that are in the lsquoless developedrsquo categories may
have to strengthen their basic support infrastructure and service provision and the
performance of the enterprise base and that of other important players such as knowledge
institutions public authorities etc The regionscountries in the more lsquoadvancedrsquo positions on
the other hand have to build on their strengths in order to maintain or enhance their position
by promoting more productive research and strengthening the links between the science base
and enterprises
21
This possible framework provides an interesting line of enquiry to be followed up in further
stages of the evaluation It does however also address other issues raised in the seminar
such as whether support should be directed to high-tech enterprises or as was argued in
relation to a number of the countries present the gains to be had from the improvement of
the performance of mid and low-tech firms are more relevant in certain stages of
development
22
3 NEXT STEP THEORY-BASED IMPACT EVALUATIONS
As the implementation of the evaluation study proceeds and the case studies (Task 3) are
being drafted the Team is in the course of identifying three policy instruments to be assessed
by as many theory-based impact evaluations as foreseen in Task 4 The three instruments
should be selected out of the long list of seven instruments suggested in the First Intermediate
Report and in consultation with the European Commission
The Team puts forward hereby a possible list of three policy instruments The main criteria
considered for their selection are
i The degree of representativeness of the typologies of policy instruments used in the 50
OPs as outlined in the First Intermediate Report the most significant categories of
policy instruments in terms of public expenditure are
Business creation and development ie instruments designed to stimulate
investments in the business sector without a predominant emphasis on RampD
and innovation
Support for RampD projects
Support for the development of technological and non-technological innovation
without any research and experimental development activities
ii The feasibility of a theory-based impact evaluation based on a survey of beneficiaries
which implies the availability of a sufficiently large number of beneficiaries and the
possibility to easily get their email contacts also with the help of the Managing
Authority or the implementing body the best option is to have at least some hundreds
beneficiary SMEs for each instrument
iii The importance of the policy instrument within the policy mix of the OP which ensures
the availability of a good amount of information resulting from the case study
regarding in particular its logic of intervention information about beneficiaries and
effectiveness
iv Preference is assigned to instruments on which no other surveys to beneficiaries have
been conducted so far in order not to put excessive burden on the same SMEs which
could undermine their willingness to contribute to our study
Based on these considerations the three policy instruments we propose for a theory-based
impact evaluation are presented in the table below It can be noticed that the list also ensures
geographical balance between Convergence and Competitiveness and Employment region as
well as Old and New Member States and regional and national OPs For the sake of
completeness and comparability for all the seven candidate instruments the pros and cons for
selecting each of them are detailed
23
Table 4 Comparison of the policy instruments and reasons for selection
Proposed for
selection
Type of policy
instrument
Selected policy
instrument
Operational Programme and
type of regioncountry
Descriptive information Specific reason for selection
for a TBIE Possible reasons for
rejection
YES Business creation and development
ldquoAid to investment projects by micro and small enterprisesrdquo
Regional OP Apulia (Italy) - Convergence region
- Old Member State
The instrument supports the purchase of machineries computer systems buildings construction works for enterprises in order to encourage the development of micro and small companies It benefitted more than 3 thousand SMEs For around 30 of beneficiaries grants have been combined with credit guarantees
- Very common type of SME support on which vast literature has been produced
- Very large number of beneficiary SMEs
- The strong relationship already established with local stakeholders and many SMEs would allow to easily and quickly test the surveyrsquos questionnaires before the launch of the three TBIEs
- For some SMEs opportunity to analyse the complimentary efforts of two forms of support (grants and a combination of grants and guarantees) and their respective effectiveness
- None
YES Support for RampD projects
ldquoGrants for Industrial Research and Experimental Developmentrdquo
Regional OP Castilla y Leon (Spain) - Competitiveness and Employment region
- Old Member State
The instrument encourages the development of RampD projects with the purpose of increasing the basis of number of innovative enterprises investment and personnel in RampD In total 759 projects of SMEs have been supported through grants 204 SMEs have conducted their project in collaboration with research organisations
- In analysing the achievement of beneficiary SMEs as well as the behavioural change opportunity to distinguish between SMEs which have realized their projects independently rather than in collaboration with a research centre
- According to the country expert among all the policy instruments of this OP this is the one for which it would be easier to get the contact details of beneficiary SMEs
- Possibility to get active collaboration by the regional authority ADE eg sending out an introductory letter to all
- None
24
Proposed for
selection
Type of policy
instrument
Selected policy
instrument
Operational Programme and
type of regioncountry
Descriptive information Specific reason for selection
for a TBIE Possible reasons for
rejection
SMEs mentioning that they will receive an invitation to a survey and inviting them to reply
YES Support for the development of technological and non-technological innovation
ldquoFinancing of individual projects for SMEsrdquo
National OP Poland Innovative Economy - Convergence country
- New Member State
The instrument provides grants to support the technological innovation of SMEs In particular it aims to stimulate the adoption of more risky and innovative solutions The instrument performed far better than expected 698 projects have been realised up to 2013 by approximately as many SMEs The instrument is delivered by a financial intermediary
- This instrument belongs to the OP which has provided the largest financial contribution to SMEs within the full sample of 50 OPs furthermore this is one of the core instrument of the programme as also reflected in the volume of public contribution which is among the highest of the OP (more than EUR 300 million fully targeted to SMEs)
- Opportunity to examine the role played by the intermediary according to the perceptions and opinions of beneficiary SMEs
- None
NO Support for RampD projects
ldquoRampD project grants for individual enterprisesrdquo
Germany regional OP Saxony - Convergence region
- Old Member State
The instrument provides grants to individual enterprises for supporting the implementation of RampD projects
- Evidence of achievement is already available since the instrument was subject of another evaluation study and enterprise survey a few years ago The TBIE would allow to better qualify the instrumentsrsquo achievements and the causal chain leading to the certain effects
- According to the country experts beneficiary SMEs may be reluctant to participate to another survey
- Less than 200 beneficiary SMEs a lower number as compared with other candidate policy instruments
- It is still uncertain whether it will be possible to get the email addresses of beneficiary SMEs
25
Proposed for
selection
Type of policy
instrument
Selected policy
instrument
Operational Programme and
type of regioncountry
Descriptive information Specific reason for selection
for a TBIE Possible reasons for
rejection
NO Support for the development of technological and non-technological innovation
ldquoSupport for technological upgrade - LEADER LTrdquo
Lithuania - Economic Growth - Convergence country
- New Member State
The instrument supports the increase of productivity in enterprises by supporting production technology upgrading The investment into the acquisition or upgrade of technologies and related internal engineering infrastructures are supported
- Email contacts particularly easy to be collected
- Result indicators are available due to an effective Structural Funds monitoring system and because the instrument was already subject of a previous evaluation study
- Very low number of beneficiary SMEs (69) which would make this instrument less suitable for launching an on-line survey as compared with other candidate instruments
NO Support for the development of technological and non-technological innovation
ldquoSupport for non-technological innovation - PROCESS LTrdquo
Lithuania - Economic Growth - Convergence country
- New Member State
The instrument aims to increase productivity in enterprises by implementing modern management methods and processes except of personnel management systems The purchase of external consulting services is supported in order to upgrade enterprises management processes
- Email contacts particularly easy to be collected
- Result indicators are available due to an effective Structural Funds monitoring system and because the instrument was already subject of a previous evaluation study
- The instrument is considered highly relevant by the target beneficiaries
- Very low number of beneficiary SMEs (119)
- As compared with other categories of policy instruments support for non-technological innovation is relatively less significant and representative of the typical forms of support provided to SMEs in the EU
NO Support for networking
ldquoInteraction on Innovationrdquo later merged with ldquoCluster relationshiprdquo
Denmark Innovation and Knowledge OP - Competitiveness and Employment country
- Old Member State
The policy instrument aims at analysing opportunities for creating clusters promoting networks and the formation of clusters of SMEs in particular as well as clusters of supplier networks for SMEs These objectives are pursued by providing grants to SMEs in partnership with universities (according to the triple helix model)
- Opportunity to better analyse the effects of a policy instrument on which a vast amount of literature has been produced
- Opportunity to dig into the collaboration mechanisms between SMEs and universities
- As compared with other categories of policy instruments support for networking is relatively less significant and representative of the typical forms of support provided to SMEs in the EU
- The number and characteristics of SMEs benefitting from this instrument remain unknown even after implementing the case
26
Proposed for
selection
Type of policy
instrument
Selected policy
instrument
Operational Programme and
type of regioncountry
Descriptive information Specific reason for selection
for a TBIE Possible reasons for
rejection
study The lack of data at policy instrument level prevents from identifying the beneficiary SMEs to which launching the on-line survey
27
4 ANNEX SEMINAR PARTICIPANTS
Name Description Organisation
DG REGIO Evaluation Unit
Rudolf Niessler Director DG REGIO B Policy
Veronica Gaffey Head of Evaluation Unit DG REGIO B2
Marielle Richeacute Evaluation Unit DG REGIO B2
Kai Stryczynski Deputy Head of Unit DG REGIO B2
Daniel Mouqueacute Evaluation Unit DG REGIO B2
CSIL Evaluation Team
Massimo Florio Evaluation team Director CSIL
Julie Pellegrin Evaluation team Project Manager CSIL
Silvia Vignetti Evaluation team CSIL
Emanuela Sirtori Evaluation team CSIL
Mike Coyne Evaluation team CSES
Malin Carlberg Evaluation team CSES
Anna-Maria Krarup Evaluation team CSES
Christian Koehler Case Study Saxony Centre for European Economic Research (ZEW)
Jaime del Castillo Case Study Castile amp Leon President INFYDE
Agnė Paliokaitė Case Study Lithuania Visionary Analytics
Elena Jarocinska Case Study Poland
Commission Officials
Katja Reppel Deputy Head of Unit Competence Centre Smart and Sustainable Growth
DG REGIO G1
Bernd Reichert Head of Unit H2020 SME EASME
Peter Wragg Head of Unit SME Access to Markets DG GROW F2
Jean David Malo Head of Unit SMEs Financial Instruments amp State Aid DG RTD B3
28
Istvan Nemeth Policy Officer - Enterprise Europe Network DG GROW F2
External Experts
Harvey Armstrong Professor Emeritus in the Department of Geography University of Sheffield
Robert Picciotto Visiting Professor Kings College London
Mark Sanders Professor University of Utrecht
Jiri Blazek Associate Professor Charles University Prague
Stakeholders ndash Case Studies
Adriana Agrimi Manager of RampI Policy Instrument Apulia Managing Authority
Kasper Westh Senior official Growth Forum Secretariat South Denmark
Simona Daukilaite
Deputy Head of the Economic Growth Operational Programme
Economic Growth OP Lithuania Managing Authority
Beatriz Casado Saenz Vice-General Director ADE (Development Agency Castile amp Leon)
Tomasz Kula Analysis and Evaluation Team Competitiveness and Innovation Department
Ministry of Infrastructure and Development (PL)
Representatives of other Work Packages
Terry Ward WP 1 Applica
Andreas Resch WP 3 Metis-Vienna
Anda Berenyi WP 4 KPMG
LEGAL NOTICE
This document has been prepared for the European Commission however it reflects the views only of the authors and the Commission cannot be held responsible for any use which may be made of the information
contained therein
More information on the European Union is available on the Internet (httpwwweuropaeu)
Luxembourg Publications Office of the European Union 2014
ISBN [number]
doi[number]
copy European Union 2015
Reproduction is authorised provided the source is acknowledged
Printed in [Country]
PRINTED ON ELEMENTAL CHLORINE-FREE BLEACHED PAPER (ECF)
PRINTED ON TOTALLY CHLORINE-FREE BLEACHED PAPER (TCF) PRINTED ON RECYCLED PAPER
PRINTED ON PROCESS CHLORINE-FREE RECYCLED PAPER (PCF)
Europe Direct is a service to help you find answers to your questions about the European Union
Freephone number ()
00 800 6 7 8 9 10 11
() The information given is free as are most calls (though some operators phone boxes or hotels may charge you)
7
FOREWORD
This is the Second Intermediate Report of the ex-post evaluation of Support to Small and
Medium Enterprises (SMEs) ndash Increasing Research and Innovation in SMEs and SME
development The objective of the evaluation is to assess the effectiveness and the impact of
the European Regional Development Fund (ERDF) with regards to support for innovation and
the development of SMEs in the European Union over the 2007-2013 programming period
This report presents the results of Tasks 3 and 5 ie the eight case studies in selected
regions and the stakeholder seminar organised in Brussels the 29th of April 2015 to discuss
the findings from the different tasks and especially from the case studies The volume at hand
contains an overview of the eight selected case studies as well as an overview of the
organisation and results of the seminar while the eight case studies form separate self-
standing reports
8
1 OVERVIEW OF THE SELECTED OPERATIONAL PROGRAMMES
This Chapter provides an introductory overview of Operational Programmes (OPs) supporting
the growth and innovation processes of Small and Medium Enterprises (SMEs) which are
subject of the case studies included and discussed in this report
The Terms of Reference indicate a list of 50 Operational Programmes co-financed in the period
2007-2013 by the European Regional Development Fund (ERDF) in 23 EU Member States All
50 OPs and policy instruments targeted to SMEs included therein have been examined The
results of this preliminary analysis are included in the First Intermediate Report From the full
list of 50 OPs the evaluation team has selected 8 OPs for a more in-depth analysis which are
1 Italy ndash Apulia (2007IT161PO010) carried out as a pilot case study
2 France ndash Icircle-de-France (2007FR162PO012)
3 Germany ndash Sachsen (2007DE161PO004)
4 Denmark - Innovation and Knowledge (2007DK162PO001)
5 Spain ndash Castilla y Leoacuten (2007ES162PO009)
6 Czech Republic ndash Business and Innovation (2007CZ161PO004)
7 Poland ndash Innovative Economy (2007PL161PO001)
8 Lithuania ndash Economic Growth (2007LT161PO002)
These OPs have been selected in order to fulfil the following conditions
to ensure a balance between regional and national cases
to ensure a balance between Convergence and regional Competitiveness objectives
also between EU 12 and EU 15
to include territories with different SME typologies
to account for strategies based on different mixes of policy instruments
the presence of a collaborative Managing Authority in order to ease data collection
The result of the selection is a list of Programmes which constitute a purposeful set that
assures the greatest representativeness in terms of socio-economic context and regional
strategy and offers the opportunity to discover relevant lessons on mechanisms concerning
SME support
9
Figure 1 Map of OPs selected for in-depth study
Denmark ndash Innovation
and knowledge
(2007DK162PO001)
Germany ndash Saxony
(2007DE161PO004)
France ndash Icircle-de-France
(2007FR162PO012)
Spain ndash Castilla y Leoacuten
(2007ES162PO009)
Italy ndash Apulia
(2007IT161PO010)
Lithuania ndash Economic
Growth
(2007LT161PO002)
Czech Republic ndash
Business and Innovation
(2007CZ161PO004)
Poland ndash Innovative
Economy
(2007PL161PO001)
Source CSIL
These eight OPs have been evaluated in order to enrich the preliminary hypotheses derived in
Task 1 on the mix of policy instruments adopted to promote SME growth and innovation across
the EU and on their outcomes The diversity of OPs included in the sample allows to account
for different regional and national specificities thus bringing context variables more forcefully
into the picture
In particular the selection of OPs both at regional (such as Apulia or Saxony the former at
NUTS 2 level the latter at NUTS 1 level) and national level (such as the Polish or Danish
programme) in eight different countries allows providing a panorama of different institutional
context features and regional innovation systems in place which can play an important role on
the delivery mechanisms of support along with their effectiveness The analysis encompasses
areas which have been touched to a different extent by the economic recession and which
belong to different Cohesion Policy objectives which is likely to affect their capacity to react to
the crisis and overcome structural barriers hindering SME development and innovativeness
The number of SMEs based in the areas targeted by the OPs range from nearly two hundred
thousand as in Saxony or in small countries such as Denmark and Lithuania to almost or
more than 1 million as in the Czech Republic and Poland This variance is reflected in the
volume of ERDF contribution dedicated to SMEs which is highest in Poland and Czech Republic
However the sample includes also an example of OP which dedicates a relatively limited
amount of ERDF to SMEs in spite of the large number of SMEs in the region it is the OP of Icircle-
de-France
10
Table 1 Eight Operational Programmes observed
OP
Cohesion
Policy
objective
EU 12
(ldquoNewrdquo
Member
States) or
EU15 (ldquoOld
Member
States)
NUTS level
Volume of EU
contribution for WP2
themes (EUR
million)
of EU contribution
for WP2 themes over
total contrib for
the OP
Total
population
of the area
covered by
the OP
GDP (PPS)
per capita
(average
2007-2011)
(EUR)
Total
number of
SMEs ()
Total
intramural
expenditure
in RampD
(GERD) ndash
2007-2011
average
Business
expenditure
in RampD
(BERD) ndash
2007-2011
average
1 Italy ndash Apulia Convergence EU15 NUTS 2 region
645 25 4 million 16640 218 thousand
(in 2011)
075 of
GDP
017 of
GDP
2 France ndash Icircle-
de-France
Competitiveness
and Employment EU15
NUTS 2
region 60 42 118 million 43360
727 thousand
(in 2011)
298 of
GDP
198 of
GDP
3 Germany -
Saxony Convergence EU15
NUTS 2
region 846 29 42 million 21040
140 thousand
(in 2012)
277 of
GDP
131 of
GDP
4 Denmark - Innovation and
knowledge
Competitiveness and Employment
EU15 NUTS 0 country
203
82
55 million 30660 213 thousand
(in 2013)
274 of
GDP
187 of
GDP
5 Spain ndash Castilla
y Leoacuten
Competitiveness
and Employment EU15
NUTS 2
region 269 36 255 million 23860
131 thousand
(in 2013)
109 of
GDP
061 of
GDP
6 Czech Republic - Business and
Innovation
Convergence EU12
NUTS 0
(except capital city
region)
2282 73 105 million 16960 928 thousand
(in 2013)
112 of
GDP
078 of
GDP
7 Poland - Innovative
Economy
Convergence EU12 NUTS 0 country
5287 62 38 million 14740 15 million (in
2013)
066 of
GDP
020 of
GDP
8 Lithuania -
Economic
Growth
Convergence EU12 NUTS 0
country 760 25 3 million 15440
115 thousand
(in 2013)
085 of
GDP
024 of
GDP
Source Eurostat and EC Performance Review 2014
Note () CSIL elaboration of National Statistical Office data (NACE sectors B-N excl K)
11
As shown in Table 1 the heterogeneity of areas covered by the case studies can be highlighted
also if considering the total intramural RampD expenditure or business RampD expenditure
According to the Global Innovation Index 2014 (Cornell University INSEAD and WIPO 2014)1
which combines innovation input measures and output measures the EU areas of the sample
cover a wide range or ranking categories (see Table 2 below)
Table 2 Global Innovation Index ranking ndash 2014
Global Innovation Index 2014 ranking
Top 10 11-20 21-30 31-40 40-60
UK Ireland Austria Cyprus Croatia
Sweden Germany France Italy Bulgaria
Finland Belgium Portugal Poland
Netherlands Estonia Latvia Greece
Denmark Malta Hungary Romania
Luxembourg Czech Republic
Slovakia
Spain Lithuania
Slovenia
Note The eight case studies are indicated by the asterisks
Source CSIL based on Cornell University INSEAD and WIPO (2014)
A more focused picture can be obtained using data from the Innovation Union Scoreboard
2012 covering the years 2007 ndash 2011 which ranks not only Member States but also regions in
terms of their performance against a set of indicators of innovation2 Specifically it places
countries and regions in four categories distinguishing between lsquoleadersrsquo lsquofollowersrsquo those
with a moderate lsquoperformancersquo and those lsquocatching-uprsquo Table 3 shows the position attributed
by the Scoreboard to the target area that have been examined in case studies
Table 3 Innovation Scoreboard Attribution
Leader Follower Moderate Modest
Catching-up
Denmark
Icircle-de-France
Saxony
Castile amp Leoacuten
Czech Republic
Poland
Apulia
Lithuania
Source European Innovation Scoreboard 2007 amp Regional Innovation Scoreboard 2012 Note Convergence region
Other regions Competitiveness amp Employment
According to the analysis of the SME-related policy instruments performed as part of Task 1
the eight OPs account for different intervention strategies as reflected in the mix of policy
instruments implemented (Figure 2) and the mode of delivery of such instruments (Figure 3)
Actually the sample includes some OPs whose primary aim is to promote business creation
and development (such as the Czech Spain Italian and Lithuanian OPs) others where public
expenditure is more concentrated on support for RampD projects (such as the German and the
1 Cornell University INSEAD and WIPO (2014) The Global Innovation Index 2014 The Human Factor In innovation
Fontainebleau Ithaca and Geneva 2 The Regional Innovation Scoreboard 2012 applies the same methodology as far as it was possible to Member State
and regions Because of data availability problems at a regional level it was not possible to exactly replicate the
methodology but the results obtained were checked for consistency with the national level scoreboard One other
change was that those regions appearing in the last category were referred to as having lsquomodestrsquo innovation
performance
12
French OPs) for increasing technological and non-technological innovation (Polish OP) One OP
is focused on increasing networking and knowledge and technology transfer (Danish OP)
Figure 2 Paid amount by type of policy instruments in the eight OPs
0
10
20
30
40
50
60
70
80
90
100
CZ - CzechRepublic
DE - Saxony DK - Denmark ES - Castilla yLeoacuten
FR - Icircle deFrance
IT - Apulia LT - Lithuania PL - Poland
Support for RampD projects
Support for improving capacities
Networking
Knowledge and technology transfer
Internationalisation and visibility
Infrastructures and related services
Generic access to finance
Development of technological or non-technological innovation
Creation of innovative companies
Business creation and development
Access and diffusion of ICT
Note paid amount refers to both ERDF and public funds paid to beneficiaries
The public support has been largely delivered in the form of grants in five out of the eight
considered OPs which is in line with the predominance of traditional direct support across the
entire EU There are however some exceptions in Lithuania and especially Poland more
often public support has been conveyed through packages of support usually combining
grants with consulting services Equity finance is quite relevant in Icircle-de-France Lithuania and
Saxony while some preference for using repayable financial support can be observed in Apulia
and the Czech Republic
13
Figure 3 Paid amount by mode of delivery in the eight OPs
0 10 20 30 40 50 60 70 80 90 100
CZ - CzechRepublic
DE - Saxony
DK - Denmark
ES - Castilla yLeoacuten
FR - Icircle de France
IT - Apulia
LT - Lithuania
PL - Poland
Equity finance + Repayable financial support
Consulting services + training + search of businesspartnersConsulting advice technical assistance
Consulting advice technical assistance +Information campaing eventsEquity finance
Grants
Grants + consulting services + training
Grants + Consulting advice technical assistance
Grants + Loans + Information campaigns
Grants + Provision of infrastructure and services +Consulting advice technical assistanceGrants + training
Information campaign events seminars
Provision of infrastructure and services +Consulting advice technical assistanceProvision of infrastructures
Repayable financial support
Source CSIL elaboration Note Paid amount refers to both ERDF and public contributions
14
The eight OPs have provided of support to around 48 thousand SMEs representing 20 of the
total number of beneficiary SMEs ascribable to the full sample of 50 OPs The number of
beneficiary SMEs is the highest for the OPs of Poland and Lithuania with more than 10
thousand and 12 thousand beneficiaries on the other hand the French OP has supported less
than 300 SMEs
Figure 4 Number of beneficiary SMEs of the eight OPs
00
10
20
30
40
50
60
70
80
90
100
0
2000
4000
6000
8000
10000
12000
14000
PL - Poland LT - Lithuania IT - Apulia ES - Castilla yLeoacuten
CZ - CzechRepublic
DE - Saxony FR - Icircle de France
Number of beneficiary SMEs Share of beneficiary SMEs over the total number of SMEs in the target area
Source CSIL elaboration Note Missing data for Denmark since the exact number of beneficiary SMEs is not available
In order to assess the intervention strategy of the OPs besides the absolute number of
beneficiaries it is particularly interesting to look at the distribution of beneficiaries according to
their size and technology intensity The analysis on the 50 OPs has revealed that the micro
enterprises generally represent the large majority of SMEs benefiting from ERDF support
(54) followed by small (30) and medium enterprises (16) The analysis has documented
the predominantly low technological intensity of beneficiary SMEs the majority of SMEs (53)
belong to sectors with a low share of business RampD expenditure over the value added by
sector However it is also noted that almost one quarter of all beneficiaries (24) has a
medium-high technological level Medium low-tech or high tech companies represent a lower
share of all the identified beneficiaries ie 14 and 9 respectively
The proportion of beneficiary SMEs in the eight OPs provides a more diversified picture (Figure
5 and 6) The Czech OP Enterprise and Innovation has directed the public support mainly to
small and medium size companies with a fair distribution in terms of technology intensity
Conversely the regional Apulia OP target micro enterprises characterised by either a low or a
medium-high technology intensity The Lithuanian OP has mostly supported low-tech
companies without significant differentiation in terms of size
15
Figure 5 Share of beneficiary SMEs by size class in the eight OPs
0
10
20
30
40
50
60
70
80
90
100
CZ - Czech Republic(Innov)
ES - Castilla y Leoacuten FR - Icircle de France IT - Apulia LT - Lithuania PL - Poland
Micro enterprises Small enterprises Medium enterprises
Source CSIL elaboration Note Missing data for Saxony and Denmark since the size class of beneficiary SMEs is not
available
Figure 6 Share of beneficiary SMEs by technology intensity level in the eight OPs
0
10
20
30
40
50
60
70
80
90
100
CZ - CzechRepublic
DE - Saxony ES - Castilla yLeoacuten
FR - Icircle deFrance
IT - Apulia LT - Lithuania PL - Poland
Low tech
Medium-low tech
Medium-high tech
High tech
Source CSIL elaboration Missing data for Denmark since the level of technological intensity cannot be estimated due
to missing data on sectoral disaggregation of beneficiary SMEs
Whether the characteristics of beneficiary SMEs simply mirror the specific characteristics of the
population of SMEs in the area covered by the OPs or result from different logics of
intervention underneath the OPs or from a mix of the two possible reasons is investigated in
the case studies
16
2 RESULTS OF THE SEMINAR
The aim of a ldquostakeholder seminarrdquo held on 29th April 2015 was to present the preliminary
findings and the main issues identified in other tasks undertaken for this Work Package and
especially those emerging from the eight case studies of Operational Programmes and to
discuss the policy implications and main lessons with Commission staff the evaluation team
members (and representatives of other Work Packages) academic experts and people
involved in the implementation of the Operational Programmes on the ground (see list of
participants in Annex) The following provides an overview setting out the main highlights in
the results from the presentations of the eight case studies
The seminar was organised in relation to three themes as follows
1) Targeting high vs low tech firms the case studies of Lithuania Saxony and Poland
2) Promoting widespread vs selective instruments the case studies of Apulia Castile amp
Leon and the Czech Republic
3) ERDF and the regional policy mix the case studies of Icircle-de-France and Denmark
Other issues that it was intended to highlight during the course of the discussion included
The issue of direct versus indirect support
Economic development versus anti-cyclical intervention
Supporting enabling organisations
Supporting individual enterprises as against partnerships
21 Targeting high vs low tech firms
In Lithuania the challenge was to build competitive advantage on the basis of labour-intensive
technologies The traditional sectors were in need of upgrading and the majority of the funds
were allocated to low tech companies In Saxony there was a demand driven approach but
also a realisation that low tech firms can improve competitiveness through cost reduction
Technologyprocess upgrading as subset to innovation can be justified but concentration of
spending on RampD has established Saxony as one of the German RampD powerhouses and
contributed to market access an increase in turnover and employment growth In Poland it
was thought that for countries that are not leading technological change the returns from
innovation are particularly high in low-tech manufacturing sectors but that as a country
approaches the technological frontier the policy should focus on RampD and innovative start-up
In discussion a central question was posed where does the investment pay most
22 Promoting widespread vs selective instruments
In Apulia the strategy was adjusted through re-programming to provide broad support to
SMEs to allow them to survive during the crisis and recession a dual approach was adopted
with selective support for SMEs with the internal capacity to manage innovation processes
including demand-side measures In Castile amp Leon the impact of the crisis was also intense
and broadly-based support was necessary but there were also efforts to build up the support
infrastructure and to provide in-depth support to enterprises identified as capable of innovation
and growth In the Czech Republic there was again both broadly-based and selective support
especially to address the ldquoBranch-plant syndromerdquo (where branches of international firms allow
little room for independent development by local suppliers) There was a focus on transferring
RampD results into production by stimulating demand for RampD results with 13 of the funds
going to support for innovation activities
17
23 ERDF and the regional policy mix
The last two cases are examples of OPs for areas which are relatively prosperous and where
RampD and innovation are relatively strong The ERDF budgets however were relatively small
In the Icircle-de-France (IdF) there was a pragmatic and demand-driven implementation
palliating perceived gaps in regional public support and enlarging the available financial
support targeting high growth high tech sectors appears to pay off in the IdF context In
Denmark there was a more strategic approach which was well integrated into national
strategy but with flexible implementation with strong stakeholder involvement in 6 regional
programmes There were interesting applications of the triple helix model amp successful cluster
developments
In all cases there was comment on the strength of monitoring and evaluation systems These
varied considerably from a relatively under-developed system in Apulia to a relatively strong
one in Icircle-de-France Denmark had organised a counterfactual analysis of enterprises
supported by the OP as against similar enterprises not receiving support
24 Synthesis
241 Diversity across themes
The first impression made by the presentations was the diversity of the interventions in the
eight cases There are several dimensions to these differences beginning with the context in
which the OP was implemented where there were differences relating to
The size of the regionsMember States targeted The absolute and relative size of the Programmes within the regions and countries in which
they operated and the effects that could reasonably be expected from them The size and structure of the SME population its sectoral distribution and its capacities
and assets The economic context within which the OPs operated and especially the way that the
economic crisis impacted on each area over the course of the programming period The endowment of SME and innovation support infrastructure and culture determining the
base on which the OPs could build
In fact the detailed investigations have confirmed the importance of the specific context in
which each OP was conceived and implemented for the determination of the nature of the
policy instruments used and the results to be expected from them This context is important
for any fair assessment of the achievements or otherwise of each Programme
Nonetheless when it came to the processes used to promote SMEs and innovation the
differences could often be considered as involving variations around a series of central themes
In all the cases considered there was a strong emphasis on promoting innovation as a
central objective yet this was done in a variety of ways and had differing relationships with
the objective of SME promotion In a number of cases support for SMEs was itself very much
seen as part of this process of encouraging innovation including in the case of the Icircle-de-
France where it involved encouraging new forms of enterprise dedicated to pursuing social
innovation In other cases however there was a clear commitment to provide general support
to SMEs and especially after the extent of the economic crisis became apparent some re-
programming to ensure this
Consequently targeting policies were not as clear cut as might have been expected There
were cases where SMEs were targeted directly ndash Apulia and Castile amp Leon but even here
there was also an element of trying to ensure that enterprises that were capable of benefitting
from support were the one to receive it while elsewhere a subtle lsquosoft targetingrsquo was more
evident where the instruments were shaped to achieve a certain selectivity not by defining
exclusions but by requiring for instance a commitment to change and growth on the part of
18
participants In Denmark for example those encouraged to become members of cluster
organisations had to be interested in developing their growth potential if their participation
was to serve any purpose This in effect led to a self-exclusion by those not willing to play
along with the support offered
The nature of the instruments used to implement OPs were shaped by a number of factors
Just as the objectives of an OP must take into account a large variety of details relating to the
circumstances of the relevant region or country so the precise characteristics of the
instruments to be applied must reflect not only the particular purposes for which they are to be
used the nature of the target group to be addressed and the economic and social
circumstances of the area concerned but the legacy of past interventions as well in the form
of existing support infrastructure and the capabilities developed in preceding periods In other
words support instruments are built on past actions both for positive reasons (exploiting
existing assets) but also because of their familiarity or a certain institutional inertia In any
event the large variety of circumstances in which the particular features of instruments are
determined gives rise to a wide array of actual policy instruments The review of 50 OPs
conducted as part of the evaluation identified 648 different instruments
This large variety of specific instruments however is mainly accounted for in that they are
often designed as elaborations of well-established approaches but addressing particular needs
and circumstances and also a variety of potential targets So building capacities and
competences can be undertaken for enterprises and their managers of varying degrees of
sophistication and background knowledge and can relate to a variety of matters from technical
issues to general management marketing exporting or more specialised issues such as IP
management The process of capacity building can therefore take many forms
The extent of the provision of access to finance is complicated by the question of whether or
not the provision of direct grants counts as part of this function Some substantial sums were
provided in this form by some of the OPs However generally an expected move towards the
provision of more indirect finance ndash loans and equity through intermediaries - was not as
marked as may have been anticipated General access to finance measures (equity
guarantees and reduction of credit interest) accounted for 38 of the funds allocated by the
Lithuanian OP and repayable financial support for 26 of the Apulian OP equity finance 14
in the case of Icircle-de-France 23 for loans and 35 for equity finance in that of Saxony The
other OPs had rather small amounts devoted to indirect financial instruments if any at all An
explanation offered of the small allocations to these instruments in some OPs was that the
crisis discouraged experimentation in this area that it is relatively difficult and expensive to
manage financial instruments and outside the experience of most Managing Authorities that
relatively large sums are necessary to make any appreciable impact and that results can often
take a long time to materialise
There were considerable differences in the extent to which there was provision of direct
support to enterprises In Saxony over 90 of the funds were in the form of grants and in
Icircle-de-France and in Apulia grants largely paid directly to enterprises accounted for 56 and
41 respectively of the funds allocated In Denmark by contrast no grants were paid directly
to enterprises unless they were partners in projects receiving support for developing clusters
or relationships with universities or in a small number of cases where they received funds to
hire private sector business advisers
It is useful to distinguish between different types of direct support In Poland and in Saxony a
large proportion of the direct support was for investments in innovative undertakings In
Apulia although the main part of support went to individual enterprises or SMEs it was more
evenly split between support for investment (by micro and small firms) and investment in
research In Icircle-de-France the weight of the direct support was for research projects
19
It is also interesting that analysis of a wider group of 50 OPs shows that manufacturing firms
received 33 of support ndash much greater than their share in the economy as a whole It also
showed that more than 50 of support has been directed to low-tech firms
Different forms of business support were available across the OPs including access to public
and private sources of information and advice incubator services and assistance for exporters
Castile amp Leon targeted the improvement of management capacities and this approach was
implicit in a number of other OPs
Approaches to support for innovation also took different forms Overall in the broader range
of OPs examined 24 of support was for RampD and a similar amount for business development
and direct support for RampD in collaborative and non-collaborative projects was a significant
feature of the OPs for Apulia Castile amp Leon Icircle-de-France Lithuania Poland and Saxony but
not in the Czech Republic and Denmark where FP7 was thought to be the appropriate vehicle
In Saxony strengthening the research base of enterprises in the local economy and promoting
the exploitation of knowledge was central to the OP so that the majority of the funds were
provided for investment in fixed capital and in supporting RampD This implied a certain targeting
within the SME population In Icircle-de-France the bulk of the support also went to research
projects and support for technology transfer and incubators though there was also support for
SME creation in distressed areas for access to finance and for social innovation projects In
Denmark the focus was more on promoting clusters and encouraging links between enterprises
and science institutions
In some cases however the picture was more mixed In Lithuania where 38 of funding went
to access to finance measures a further 30 to up-grading technology and processes but
there was also direct support for RampD and RampD infrastructure and support for networking and
clusters promoting innovation Similarly in Apulia there was support for research by SMEs
and measures to promote consulting services for technical innovation regional innovation
partnerships and aid for access to ICT alongside aid to investment in micro and small firms
and credit guarantees and support for tourism
Knowledge transfer also featured in many of the OPs Building relationships between
knowledge institutions and enterprises was an important objective for Denmark as part of
developing regional innovation capacities though the results were mixed at least in part
because of an unresponsive culture in certain universities In other cases these relationships
were promoted by collaborative research projects (Icircle-de-France Saxony) and in the case of
Lithuania by the use of vouchers Overall however it is perhaps surprising that building
relationships between knowledge institutions and enterprises did not have a higher profile
The development of clusters was an instrument used in the Czech Republic Lithuania and
Denmark where in some regions it absorbed a large proportion of the available funds and
where the focus was on emerging sectors such as clean technology energy health and welfare
and the experience economy Cluster support in this case consisted of a relatively complex set
of services provided for cluster members In the Czech Republic and Lithuania cluster
development was itself less developed and related to low-tech sectors with potential for
innovation and growth
Underlying these differences between Programmes there were variations in the approach to
governance This has become an important issue for all of the regions and countries
considered In part this is linked to the aspiration at least to establish transparent evidence-
based policy processes which has brought in the development of monitoring and evaluation
systems but there are more central elements of governance to do with who is involved in
decision-making and how decisions are taken that are also part of the picture The
development of stakeholder involvement in strategy formation in the setting of priorities and
even in elements of implementation was apparent in many of the cases throughout the
20
programming period In Denmark the whole (national and EU) strategy was based from the
beginning on a national consensus established through political and open public debates and
implemented through regional bodies with a strong stakeholder representation In Apulia a
self-evaluation exercise led to new departures in response to the crisis
There were however other issues of governance alluded to in the seminar relating to but the
alignment of the OP with national strategies and the organisational mechanisms adopted to
implement the strategy chosen by each OP These can have considerable influence on the
degree to which the Managing Authority can directly influence the implementation
mechanisms
Finally account must be taken of the differential impacts of the recession In Apulia and
Castile amp Leon there was formal reprogramming largely as a result of the recession and
changes in the instrument set utilised To a certain extent this meant a scaling down of
ambitions when for many enterprises it was a matter of survival rather than developing new
ventures Even here though the story does not always move in the same direction In the case
of Apulia for instance while it was necessary in part to refocus support on the broad range of
enterprises suffering from the recession at the same time the crisis acted as a stimulus to new
thinking after the conduct of a self-evaluation exercise
242 A common framework
Overall it can be seen that within the diversity shown by the eight cases there are at least a
number of common themes which are belong addressed in different ways The question does
arise however of whether it might be possible to go further to offer an explanation of the
diversity
External experts at the seminar advised that a theoretical framework should be sought to
make greater sense of the quantitative material and provide the basis for a more deliberative
judgement on the effectiveness of policy and how support funds can be best spent
One possibility is to take the differing circumstances of the OPs as themselves being an
explanatory factor and in a further step see the differences in the nature of the instruments
deployed as being part of an evolutionary process This approach also has the merit of linking
a debate on instruments with broader considerations in the promotion of innovation and
competitiveness at a European level
The reference in section 1 above to the position of the countries covered by the case studies
and their innovation performance as characterised by the Innovation Union Scoreboard and
in further detail at a regional level by the Regional Innovation Scoreboard 2012 allows a
distinction to be made between countries and regions in four categories - lsquoleadersrsquo lsquofollowersrsquo
those with a moderate lsquoperformancersquo and those lsquocatching-uprsquo The respective positions of the
eight cases have been set out in section 1
The approach suggested at the seminar was essentially to explore the hypothesis that the
overall lsquoinnovationrsquo position of regionscountries determines the types of instrument
used their targeting and ultimately their relative performance It may be that the
categorisation help us explain the differences in the objectives set the instruments that are
appropriate and their targeting and that this in turn also influences the performance that can
be expected Regionscountries for instance that are in the lsquoless developedrsquo categories may
have to strengthen their basic support infrastructure and service provision and the
performance of the enterprise base and that of other important players such as knowledge
institutions public authorities etc The regionscountries in the more lsquoadvancedrsquo positions on
the other hand have to build on their strengths in order to maintain or enhance their position
by promoting more productive research and strengthening the links between the science base
and enterprises
21
This possible framework provides an interesting line of enquiry to be followed up in further
stages of the evaluation It does however also address other issues raised in the seminar
such as whether support should be directed to high-tech enterprises or as was argued in
relation to a number of the countries present the gains to be had from the improvement of
the performance of mid and low-tech firms are more relevant in certain stages of
development
22
3 NEXT STEP THEORY-BASED IMPACT EVALUATIONS
As the implementation of the evaluation study proceeds and the case studies (Task 3) are
being drafted the Team is in the course of identifying three policy instruments to be assessed
by as many theory-based impact evaluations as foreseen in Task 4 The three instruments
should be selected out of the long list of seven instruments suggested in the First Intermediate
Report and in consultation with the European Commission
The Team puts forward hereby a possible list of three policy instruments The main criteria
considered for their selection are
i The degree of representativeness of the typologies of policy instruments used in the 50
OPs as outlined in the First Intermediate Report the most significant categories of
policy instruments in terms of public expenditure are
Business creation and development ie instruments designed to stimulate
investments in the business sector without a predominant emphasis on RampD
and innovation
Support for RampD projects
Support for the development of technological and non-technological innovation
without any research and experimental development activities
ii The feasibility of a theory-based impact evaluation based on a survey of beneficiaries
which implies the availability of a sufficiently large number of beneficiaries and the
possibility to easily get their email contacts also with the help of the Managing
Authority or the implementing body the best option is to have at least some hundreds
beneficiary SMEs for each instrument
iii The importance of the policy instrument within the policy mix of the OP which ensures
the availability of a good amount of information resulting from the case study
regarding in particular its logic of intervention information about beneficiaries and
effectiveness
iv Preference is assigned to instruments on which no other surveys to beneficiaries have
been conducted so far in order not to put excessive burden on the same SMEs which
could undermine their willingness to contribute to our study
Based on these considerations the three policy instruments we propose for a theory-based
impact evaluation are presented in the table below It can be noticed that the list also ensures
geographical balance between Convergence and Competitiveness and Employment region as
well as Old and New Member States and regional and national OPs For the sake of
completeness and comparability for all the seven candidate instruments the pros and cons for
selecting each of them are detailed
23
Table 4 Comparison of the policy instruments and reasons for selection
Proposed for
selection
Type of policy
instrument
Selected policy
instrument
Operational Programme and
type of regioncountry
Descriptive information Specific reason for selection
for a TBIE Possible reasons for
rejection
YES Business creation and development
ldquoAid to investment projects by micro and small enterprisesrdquo
Regional OP Apulia (Italy) - Convergence region
- Old Member State
The instrument supports the purchase of machineries computer systems buildings construction works for enterprises in order to encourage the development of micro and small companies It benefitted more than 3 thousand SMEs For around 30 of beneficiaries grants have been combined with credit guarantees
- Very common type of SME support on which vast literature has been produced
- Very large number of beneficiary SMEs
- The strong relationship already established with local stakeholders and many SMEs would allow to easily and quickly test the surveyrsquos questionnaires before the launch of the three TBIEs
- For some SMEs opportunity to analyse the complimentary efforts of two forms of support (grants and a combination of grants and guarantees) and their respective effectiveness
- None
YES Support for RampD projects
ldquoGrants for Industrial Research and Experimental Developmentrdquo
Regional OP Castilla y Leon (Spain) - Competitiveness and Employment region
- Old Member State
The instrument encourages the development of RampD projects with the purpose of increasing the basis of number of innovative enterprises investment and personnel in RampD In total 759 projects of SMEs have been supported through grants 204 SMEs have conducted their project in collaboration with research organisations
- In analysing the achievement of beneficiary SMEs as well as the behavioural change opportunity to distinguish between SMEs which have realized their projects independently rather than in collaboration with a research centre
- According to the country expert among all the policy instruments of this OP this is the one for which it would be easier to get the contact details of beneficiary SMEs
- Possibility to get active collaboration by the regional authority ADE eg sending out an introductory letter to all
- None
24
Proposed for
selection
Type of policy
instrument
Selected policy
instrument
Operational Programme and
type of regioncountry
Descriptive information Specific reason for selection
for a TBIE Possible reasons for
rejection
SMEs mentioning that they will receive an invitation to a survey and inviting them to reply
YES Support for the development of technological and non-technological innovation
ldquoFinancing of individual projects for SMEsrdquo
National OP Poland Innovative Economy - Convergence country
- New Member State
The instrument provides grants to support the technological innovation of SMEs In particular it aims to stimulate the adoption of more risky and innovative solutions The instrument performed far better than expected 698 projects have been realised up to 2013 by approximately as many SMEs The instrument is delivered by a financial intermediary
- This instrument belongs to the OP which has provided the largest financial contribution to SMEs within the full sample of 50 OPs furthermore this is one of the core instrument of the programme as also reflected in the volume of public contribution which is among the highest of the OP (more than EUR 300 million fully targeted to SMEs)
- Opportunity to examine the role played by the intermediary according to the perceptions and opinions of beneficiary SMEs
- None
NO Support for RampD projects
ldquoRampD project grants for individual enterprisesrdquo
Germany regional OP Saxony - Convergence region
- Old Member State
The instrument provides grants to individual enterprises for supporting the implementation of RampD projects
- Evidence of achievement is already available since the instrument was subject of another evaluation study and enterprise survey a few years ago The TBIE would allow to better qualify the instrumentsrsquo achievements and the causal chain leading to the certain effects
- According to the country experts beneficiary SMEs may be reluctant to participate to another survey
- Less than 200 beneficiary SMEs a lower number as compared with other candidate policy instruments
- It is still uncertain whether it will be possible to get the email addresses of beneficiary SMEs
25
Proposed for
selection
Type of policy
instrument
Selected policy
instrument
Operational Programme and
type of regioncountry
Descriptive information Specific reason for selection
for a TBIE Possible reasons for
rejection
NO Support for the development of technological and non-technological innovation
ldquoSupport for technological upgrade - LEADER LTrdquo
Lithuania - Economic Growth - Convergence country
- New Member State
The instrument supports the increase of productivity in enterprises by supporting production technology upgrading The investment into the acquisition or upgrade of technologies and related internal engineering infrastructures are supported
- Email contacts particularly easy to be collected
- Result indicators are available due to an effective Structural Funds monitoring system and because the instrument was already subject of a previous evaluation study
- Very low number of beneficiary SMEs (69) which would make this instrument less suitable for launching an on-line survey as compared with other candidate instruments
NO Support for the development of technological and non-technological innovation
ldquoSupport for non-technological innovation - PROCESS LTrdquo
Lithuania - Economic Growth - Convergence country
- New Member State
The instrument aims to increase productivity in enterprises by implementing modern management methods and processes except of personnel management systems The purchase of external consulting services is supported in order to upgrade enterprises management processes
- Email contacts particularly easy to be collected
- Result indicators are available due to an effective Structural Funds monitoring system and because the instrument was already subject of a previous evaluation study
- The instrument is considered highly relevant by the target beneficiaries
- Very low number of beneficiary SMEs (119)
- As compared with other categories of policy instruments support for non-technological innovation is relatively less significant and representative of the typical forms of support provided to SMEs in the EU
NO Support for networking
ldquoInteraction on Innovationrdquo later merged with ldquoCluster relationshiprdquo
Denmark Innovation and Knowledge OP - Competitiveness and Employment country
- Old Member State
The policy instrument aims at analysing opportunities for creating clusters promoting networks and the formation of clusters of SMEs in particular as well as clusters of supplier networks for SMEs These objectives are pursued by providing grants to SMEs in partnership with universities (according to the triple helix model)
- Opportunity to better analyse the effects of a policy instrument on which a vast amount of literature has been produced
- Opportunity to dig into the collaboration mechanisms between SMEs and universities
- As compared with other categories of policy instruments support for networking is relatively less significant and representative of the typical forms of support provided to SMEs in the EU
- The number and characteristics of SMEs benefitting from this instrument remain unknown even after implementing the case
26
Proposed for
selection
Type of policy
instrument
Selected policy
instrument
Operational Programme and
type of regioncountry
Descriptive information Specific reason for selection
for a TBIE Possible reasons for
rejection
study The lack of data at policy instrument level prevents from identifying the beneficiary SMEs to which launching the on-line survey
27
4 ANNEX SEMINAR PARTICIPANTS
Name Description Organisation
DG REGIO Evaluation Unit
Rudolf Niessler Director DG REGIO B Policy
Veronica Gaffey Head of Evaluation Unit DG REGIO B2
Marielle Richeacute Evaluation Unit DG REGIO B2
Kai Stryczynski Deputy Head of Unit DG REGIO B2
Daniel Mouqueacute Evaluation Unit DG REGIO B2
CSIL Evaluation Team
Massimo Florio Evaluation team Director CSIL
Julie Pellegrin Evaluation team Project Manager CSIL
Silvia Vignetti Evaluation team CSIL
Emanuela Sirtori Evaluation team CSIL
Mike Coyne Evaluation team CSES
Malin Carlberg Evaluation team CSES
Anna-Maria Krarup Evaluation team CSES
Christian Koehler Case Study Saxony Centre for European Economic Research (ZEW)
Jaime del Castillo Case Study Castile amp Leon President INFYDE
Agnė Paliokaitė Case Study Lithuania Visionary Analytics
Elena Jarocinska Case Study Poland
Commission Officials
Katja Reppel Deputy Head of Unit Competence Centre Smart and Sustainable Growth
DG REGIO G1
Bernd Reichert Head of Unit H2020 SME EASME
Peter Wragg Head of Unit SME Access to Markets DG GROW F2
Jean David Malo Head of Unit SMEs Financial Instruments amp State Aid DG RTD B3
28
Istvan Nemeth Policy Officer - Enterprise Europe Network DG GROW F2
External Experts
Harvey Armstrong Professor Emeritus in the Department of Geography University of Sheffield
Robert Picciotto Visiting Professor Kings College London
Mark Sanders Professor University of Utrecht
Jiri Blazek Associate Professor Charles University Prague
Stakeholders ndash Case Studies
Adriana Agrimi Manager of RampI Policy Instrument Apulia Managing Authority
Kasper Westh Senior official Growth Forum Secretariat South Denmark
Simona Daukilaite
Deputy Head of the Economic Growth Operational Programme
Economic Growth OP Lithuania Managing Authority
Beatriz Casado Saenz Vice-General Director ADE (Development Agency Castile amp Leon)
Tomasz Kula Analysis and Evaluation Team Competitiveness and Innovation Department
Ministry of Infrastructure and Development (PL)
Representatives of other Work Packages
Terry Ward WP 1 Applica
Andreas Resch WP 3 Metis-Vienna
Anda Berenyi WP 4 KPMG
LEGAL NOTICE
This document has been prepared for the European Commission however it reflects the views only of the authors and the Commission cannot be held responsible for any use which may be made of the information
contained therein
More information on the European Union is available on the Internet (httpwwweuropaeu)
Luxembourg Publications Office of the European Union 2014
ISBN [number]
doi[number]
copy European Union 2015
Reproduction is authorised provided the source is acknowledged
Printed in [Country]
PRINTED ON ELEMENTAL CHLORINE-FREE BLEACHED PAPER (ECF)
PRINTED ON TOTALLY CHLORINE-FREE BLEACHED PAPER (TCF) PRINTED ON RECYCLED PAPER
PRINTED ON PROCESS CHLORINE-FREE RECYCLED PAPER (PCF)
Europe Direct is a service to help you find answers to your questions about the European Union
Freephone number ()
00 800 6 7 8 9 10 11
() The information given is free as are most calls (though some operators phone boxes or hotels may charge you)
8
1 OVERVIEW OF THE SELECTED OPERATIONAL PROGRAMMES
This Chapter provides an introductory overview of Operational Programmes (OPs) supporting
the growth and innovation processes of Small and Medium Enterprises (SMEs) which are
subject of the case studies included and discussed in this report
The Terms of Reference indicate a list of 50 Operational Programmes co-financed in the period
2007-2013 by the European Regional Development Fund (ERDF) in 23 EU Member States All
50 OPs and policy instruments targeted to SMEs included therein have been examined The
results of this preliminary analysis are included in the First Intermediate Report From the full
list of 50 OPs the evaluation team has selected 8 OPs for a more in-depth analysis which are
1 Italy ndash Apulia (2007IT161PO010) carried out as a pilot case study
2 France ndash Icircle-de-France (2007FR162PO012)
3 Germany ndash Sachsen (2007DE161PO004)
4 Denmark - Innovation and Knowledge (2007DK162PO001)
5 Spain ndash Castilla y Leoacuten (2007ES162PO009)
6 Czech Republic ndash Business and Innovation (2007CZ161PO004)
7 Poland ndash Innovative Economy (2007PL161PO001)
8 Lithuania ndash Economic Growth (2007LT161PO002)
These OPs have been selected in order to fulfil the following conditions
to ensure a balance between regional and national cases
to ensure a balance between Convergence and regional Competitiveness objectives
also between EU 12 and EU 15
to include territories with different SME typologies
to account for strategies based on different mixes of policy instruments
the presence of a collaborative Managing Authority in order to ease data collection
The result of the selection is a list of Programmes which constitute a purposeful set that
assures the greatest representativeness in terms of socio-economic context and regional
strategy and offers the opportunity to discover relevant lessons on mechanisms concerning
SME support
9
Figure 1 Map of OPs selected for in-depth study
Denmark ndash Innovation
and knowledge
(2007DK162PO001)
Germany ndash Saxony
(2007DE161PO004)
France ndash Icircle-de-France
(2007FR162PO012)
Spain ndash Castilla y Leoacuten
(2007ES162PO009)
Italy ndash Apulia
(2007IT161PO010)
Lithuania ndash Economic
Growth
(2007LT161PO002)
Czech Republic ndash
Business and Innovation
(2007CZ161PO004)
Poland ndash Innovative
Economy
(2007PL161PO001)
Source CSIL
These eight OPs have been evaluated in order to enrich the preliminary hypotheses derived in
Task 1 on the mix of policy instruments adopted to promote SME growth and innovation across
the EU and on their outcomes The diversity of OPs included in the sample allows to account
for different regional and national specificities thus bringing context variables more forcefully
into the picture
In particular the selection of OPs both at regional (such as Apulia or Saxony the former at
NUTS 2 level the latter at NUTS 1 level) and national level (such as the Polish or Danish
programme) in eight different countries allows providing a panorama of different institutional
context features and regional innovation systems in place which can play an important role on
the delivery mechanisms of support along with their effectiveness The analysis encompasses
areas which have been touched to a different extent by the economic recession and which
belong to different Cohesion Policy objectives which is likely to affect their capacity to react to
the crisis and overcome structural barriers hindering SME development and innovativeness
The number of SMEs based in the areas targeted by the OPs range from nearly two hundred
thousand as in Saxony or in small countries such as Denmark and Lithuania to almost or
more than 1 million as in the Czech Republic and Poland This variance is reflected in the
volume of ERDF contribution dedicated to SMEs which is highest in Poland and Czech Republic
However the sample includes also an example of OP which dedicates a relatively limited
amount of ERDF to SMEs in spite of the large number of SMEs in the region it is the OP of Icircle-
de-France
10
Table 1 Eight Operational Programmes observed
OP
Cohesion
Policy
objective
EU 12
(ldquoNewrdquo
Member
States) or
EU15 (ldquoOld
Member
States)
NUTS level
Volume of EU
contribution for WP2
themes (EUR
million)
of EU contribution
for WP2 themes over
total contrib for
the OP
Total
population
of the area
covered by
the OP
GDP (PPS)
per capita
(average
2007-2011)
(EUR)
Total
number of
SMEs ()
Total
intramural
expenditure
in RampD
(GERD) ndash
2007-2011
average
Business
expenditure
in RampD
(BERD) ndash
2007-2011
average
1 Italy ndash Apulia Convergence EU15 NUTS 2 region
645 25 4 million 16640 218 thousand
(in 2011)
075 of
GDP
017 of
GDP
2 France ndash Icircle-
de-France
Competitiveness
and Employment EU15
NUTS 2
region 60 42 118 million 43360
727 thousand
(in 2011)
298 of
GDP
198 of
GDP
3 Germany -
Saxony Convergence EU15
NUTS 2
region 846 29 42 million 21040
140 thousand
(in 2012)
277 of
GDP
131 of
GDP
4 Denmark - Innovation and
knowledge
Competitiveness and Employment
EU15 NUTS 0 country
203
82
55 million 30660 213 thousand
(in 2013)
274 of
GDP
187 of
GDP
5 Spain ndash Castilla
y Leoacuten
Competitiveness
and Employment EU15
NUTS 2
region 269 36 255 million 23860
131 thousand
(in 2013)
109 of
GDP
061 of
GDP
6 Czech Republic - Business and
Innovation
Convergence EU12
NUTS 0
(except capital city
region)
2282 73 105 million 16960 928 thousand
(in 2013)
112 of
GDP
078 of
GDP
7 Poland - Innovative
Economy
Convergence EU12 NUTS 0 country
5287 62 38 million 14740 15 million (in
2013)
066 of
GDP
020 of
GDP
8 Lithuania -
Economic
Growth
Convergence EU12 NUTS 0
country 760 25 3 million 15440
115 thousand
(in 2013)
085 of
GDP
024 of
GDP
Source Eurostat and EC Performance Review 2014
Note () CSIL elaboration of National Statistical Office data (NACE sectors B-N excl K)
11
As shown in Table 1 the heterogeneity of areas covered by the case studies can be highlighted
also if considering the total intramural RampD expenditure or business RampD expenditure
According to the Global Innovation Index 2014 (Cornell University INSEAD and WIPO 2014)1
which combines innovation input measures and output measures the EU areas of the sample
cover a wide range or ranking categories (see Table 2 below)
Table 2 Global Innovation Index ranking ndash 2014
Global Innovation Index 2014 ranking
Top 10 11-20 21-30 31-40 40-60
UK Ireland Austria Cyprus Croatia
Sweden Germany France Italy Bulgaria
Finland Belgium Portugal Poland
Netherlands Estonia Latvia Greece
Denmark Malta Hungary Romania
Luxembourg Czech Republic
Slovakia
Spain Lithuania
Slovenia
Note The eight case studies are indicated by the asterisks
Source CSIL based on Cornell University INSEAD and WIPO (2014)
A more focused picture can be obtained using data from the Innovation Union Scoreboard
2012 covering the years 2007 ndash 2011 which ranks not only Member States but also regions in
terms of their performance against a set of indicators of innovation2 Specifically it places
countries and regions in four categories distinguishing between lsquoleadersrsquo lsquofollowersrsquo those
with a moderate lsquoperformancersquo and those lsquocatching-uprsquo Table 3 shows the position attributed
by the Scoreboard to the target area that have been examined in case studies
Table 3 Innovation Scoreboard Attribution
Leader Follower Moderate Modest
Catching-up
Denmark
Icircle-de-France
Saxony
Castile amp Leoacuten
Czech Republic
Poland
Apulia
Lithuania
Source European Innovation Scoreboard 2007 amp Regional Innovation Scoreboard 2012 Note Convergence region
Other regions Competitiveness amp Employment
According to the analysis of the SME-related policy instruments performed as part of Task 1
the eight OPs account for different intervention strategies as reflected in the mix of policy
instruments implemented (Figure 2) and the mode of delivery of such instruments (Figure 3)
Actually the sample includes some OPs whose primary aim is to promote business creation
and development (such as the Czech Spain Italian and Lithuanian OPs) others where public
expenditure is more concentrated on support for RampD projects (such as the German and the
1 Cornell University INSEAD and WIPO (2014) The Global Innovation Index 2014 The Human Factor In innovation
Fontainebleau Ithaca and Geneva 2 The Regional Innovation Scoreboard 2012 applies the same methodology as far as it was possible to Member State
and regions Because of data availability problems at a regional level it was not possible to exactly replicate the
methodology but the results obtained were checked for consistency with the national level scoreboard One other
change was that those regions appearing in the last category were referred to as having lsquomodestrsquo innovation
performance
12
French OPs) for increasing technological and non-technological innovation (Polish OP) One OP
is focused on increasing networking and knowledge and technology transfer (Danish OP)
Figure 2 Paid amount by type of policy instruments in the eight OPs
0
10
20
30
40
50
60
70
80
90
100
CZ - CzechRepublic
DE - Saxony DK - Denmark ES - Castilla yLeoacuten
FR - Icircle deFrance
IT - Apulia LT - Lithuania PL - Poland
Support for RampD projects
Support for improving capacities
Networking
Knowledge and technology transfer
Internationalisation and visibility
Infrastructures and related services
Generic access to finance
Development of technological or non-technological innovation
Creation of innovative companies
Business creation and development
Access and diffusion of ICT
Note paid amount refers to both ERDF and public funds paid to beneficiaries
The public support has been largely delivered in the form of grants in five out of the eight
considered OPs which is in line with the predominance of traditional direct support across the
entire EU There are however some exceptions in Lithuania and especially Poland more
often public support has been conveyed through packages of support usually combining
grants with consulting services Equity finance is quite relevant in Icircle-de-France Lithuania and
Saxony while some preference for using repayable financial support can be observed in Apulia
and the Czech Republic
13
Figure 3 Paid amount by mode of delivery in the eight OPs
0 10 20 30 40 50 60 70 80 90 100
CZ - CzechRepublic
DE - Saxony
DK - Denmark
ES - Castilla yLeoacuten
FR - Icircle de France
IT - Apulia
LT - Lithuania
PL - Poland
Equity finance + Repayable financial support
Consulting services + training + search of businesspartnersConsulting advice technical assistance
Consulting advice technical assistance +Information campaing eventsEquity finance
Grants
Grants + consulting services + training
Grants + Consulting advice technical assistance
Grants + Loans + Information campaigns
Grants + Provision of infrastructure and services +Consulting advice technical assistanceGrants + training
Information campaign events seminars
Provision of infrastructure and services +Consulting advice technical assistanceProvision of infrastructures
Repayable financial support
Source CSIL elaboration Note Paid amount refers to both ERDF and public contributions
14
The eight OPs have provided of support to around 48 thousand SMEs representing 20 of the
total number of beneficiary SMEs ascribable to the full sample of 50 OPs The number of
beneficiary SMEs is the highest for the OPs of Poland and Lithuania with more than 10
thousand and 12 thousand beneficiaries on the other hand the French OP has supported less
than 300 SMEs
Figure 4 Number of beneficiary SMEs of the eight OPs
00
10
20
30
40
50
60
70
80
90
100
0
2000
4000
6000
8000
10000
12000
14000
PL - Poland LT - Lithuania IT - Apulia ES - Castilla yLeoacuten
CZ - CzechRepublic
DE - Saxony FR - Icircle de France
Number of beneficiary SMEs Share of beneficiary SMEs over the total number of SMEs in the target area
Source CSIL elaboration Note Missing data for Denmark since the exact number of beneficiary SMEs is not available
In order to assess the intervention strategy of the OPs besides the absolute number of
beneficiaries it is particularly interesting to look at the distribution of beneficiaries according to
their size and technology intensity The analysis on the 50 OPs has revealed that the micro
enterprises generally represent the large majority of SMEs benefiting from ERDF support
(54) followed by small (30) and medium enterprises (16) The analysis has documented
the predominantly low technological intensity of beneficiary SMEs the majority of SMEs (53)
belong to sectors with a low share of business RampD expenditure over the value added by
sector However it is also noted that almost one quarter of all beneficiaries (24) has a
medium-high technological level Medium low-tech or high tech companies represent a lower
share of all the identified beneficiaries ie 14 and 9 respectively
The proportion of beneficiary SMEs in the eight OPs provides a more diversified picture (Figure
5 and 6) The Czech OP Enterprise and Innovation has directed the public support mainly to
small and medium size companies with a fair distribution in terms of technology intensity
Conversely the regional Apulia OP target micro enterprises characterised by either a low or a
medium-high technology intensity The Lithuanian OP has mostly supported low-tech
companies without significant differentiation in terms of size
15
Figure 5 Share of beneficiary SMEs by size class in the eight OPs
0
10
20
30
40
50
60
70
80
90
100
CZ - Czech Republic(Innov)
ES - Castilla y Leoacuten FR - Icircle de France IT - Apulia LT - Lithuania PL - Poland
Micro enterprises Small enterprises Medium enterprises
Source CSIL elaboration Note Missing data for Saxony and Denmark since the size class of beneficiary SMEs is not
available
Figure 6 Share of beneficiary SMEs by technology intensity level in the eight OPs
0
10
20
30
40
50
60
70
80
90
100
CZ - CzechRepublic
DE - Saxony ES - Castilla yLeoacuten
FR - Icircle deFrance
IT - Apulia LT - Lithuania PL - Poland
Low tech
Medium-low tech
Medium-high tech
High tech
Source CSIL elaboration Missing data for Denmark since the level of technological intensity cannot be estimated due
to missing data on sectoral disaggregation of beneficiary SMEs
Whether the characteristics of beneficiary SMEs simply mirror the specific characteristics of the
population of SMEs in the area covered by the OPs or result from different logics of
intervention underneath the OPs or from a mix of the two possible reasons is investigated in
the case studies
16
2 RESULTS OF THE SEMINAR
The aim of a ldquostakeholder seminarrdquo held on 29th April 2015 was to present the preliminary
findings and the main issues identified in other tasks undertaken for this Work Package and
especially those emerging from the eight case studies of Operational Programmes and to
discuss the policy implications and main lessons with Commission staff the evaluation team
members (and representatives of other Work Packages) academic experts and people
involved in the implementation of the Operational Programmes on the ground (see list of
participants in Annex) The following provides an overview setting out the main highlights in
the results from the presentations of the eight case studies
The seminar was organised in relation to three themes as follows
1) Targeting high vs low tech firms the case studies of Lithuania Saxony and Poland
2) Promoting widespread vs selective instruments the case studies of Apulia Castile amp
Leon and the Czech Republic
3) ERDF and the regional policy mix the case studies of Icircle-de-France and Denmark
Other issues that it was intended to highlight during the course of the discussion included
The issue of direct versus indirect support
Economic development versus anti-cyclical intervention
Supporting enabling organisations
Supporting individual enterprises as against partnerships
21 Targeting high vs low tech firms
In Lithuania the challenge was to build competitive advantage on the basis of labour-intensive
technologies The traditional sectors were in need of upgrading and the majority of the funds
were allocated to low tech companies In Saxony there was a demand driven approach but
also a realisation that low tech firms can improve competitiveness through cost reduction
Technologyprocess upgrading as subset to innovation can be justified but concentration of
spending on RampD has established Saxony as one of the German RampD powerhouses and
contributed to market access an increase in turnover and employment growth In Poland it
was thought that for countries that are not leading technological change the returns from
innovation are particularly high in low-tech manufacturing sectors but that as a country
approaches the technological frontier the policy should focus on RampD and innovative start-up
In discussion a central question was posed where does the investment pay most
22 Promoting widespread vs selective instruments
In Apulia the strategy was adjusted through re-programming to provide broad support to
SMEs to allow them to survive during the crisis and recession a dual approach was adopted
with selective support for SMEs with the internal capacity to manage innovation processes
including demand-side measures In Castile amp Leon the impact of the crisis was also intense
and broadly-based support was necessary but there were also efforts to build up the support
infrastructure and to provide in-depth support to enterprises identified as capable of innovation
and growth In the Czech Republic there was again both broadly-based and selective support
especially to address the ldquoBranch-plant syndromerdquo (where branches of international firms allow
little room for independent development by local suppliers) There was a focus on transferring
RampD results into production by stimulating demand for RampD results with 13 of the funds
going to support for innovation activities
17
23 ERDF and the regional policy mix
The last two cases are examples of OPs for areas which are relatively prosperous and where
RampD and innovation are relatively strong The ERDF budgets however were relatively small
In the Icircle-de-France (IdF) there was a pragmatic and demand-driven implementation
palliating perceived gaps in regional public support and enlarging the available financial
support targeting high growth high tech sectors appears to pay off in the IdF context In
Denmark there was a more strategic approach which was well integrated into national
strategy but with flexible implementation with strong stakeholder involvement in 6 regional
programmes There were interesting applications of the triple helix model amp successful cluster
developments
In all cases there was comment on the strength of monitoring and evaluation systems These
varied considerably from a relatively under-developed system in Apulia to a relatively strong
one in Icircle-de-France Denmark had organised a counterfactual analysis of enterprises
supported by the OP as against similar enterprises not receiving support
24 Synthesis
241 Diversity across themes
The first impression made by the presentations was the diversity of the interventions in the
eight cases There are several dimensions to these differences beginning with the context in
which the OP was implemented where there were differences relating to
The size of the regionsMember States targeted The absolute and relative size of the Programmes within the regions and countries in which
they operated and the effects that could reasonably be expected from them The size and structure of the SME population its sectoral distribution and its capacities
and assets The economic context within which the OPs operated and especially the way that the
economic crisis impacted on each area over the course of the programming period The endowment of SME and innovation support infrastructure and culture determining the
base on which the OPs could build
In fact the detailed investigations have confirmed the importance of the specific context in
which each OP was conceived and implemented for the determination of the nature of the
policy instruments used and the results to be expected from them This context is important
for any fair assessment of the achievements or otherwise of each Programme
Nonetheless when it came to the processes used to promote SMEs and innovation the
differences could often be considered as involving variations around a series of central themes
In all the cases considered there was a strong emphasis on promoting innovation as a
central objective yet this was done in a variety of ways and had differing relationships with
the objective of SME promotion In a number of cases support for SMEs was itself very much
seen as part of this process of encouraging innovation including in the case of the Icircle-de-
France where it involved encouraging new forms of enterprise dedicated to pursuing social
innovation In other cases however there was a clear commitment to provide general support
to SMEs and especially after the extent of the economic crisis became apparent some re-
programming to ensure this
Consequently targeting policies were not as clear cut as might have been expected There
were cases where SMEs were targeted directly ndash Apulia and Castile amp Leon but even here
there was also an element of trying to ensure that enterprises that were capable of benefitting
from support were the one to receive it while elsewhere a subtle lsquosoft targetingrsquo was more
evident where the instruments were shaped to achieve a certain selectivity not by defining
exclusions but by requiring for instance a commitment to change and growth on the part of
18
participants In Denmark for example those encouraged to become members of cluster
organisations had to be interested in developing their growth potential if their participation
was to serve any purpose This in effect led to a self-exclusion by those not willing to play
along with the support offered
The nature of the instruments used to implement OPs were shaped by a number of factors
Just as the objectives of an OP must take into account a large variety of details relating to the
circumstances of the relevant region or country so the precise characteristics of the
instruments to be applied must reflect not only the particular purposes for which they are to be
used the nature of the target group to be addressed and the economic and social
circumstances of the area concerned but the legacy of past interventions as well in the form
of existing support infrastructure and the capabilities developed in preceding periods In other
words support instruments are built on past actions both for positive reasons (exploiting
existing assets) but also because of their familiarity or a certain institutional inertia In any
event the large variety of circumstances in which the particular features of instruments are
determined gives rise to a wide array of actual policy instruments The review of 50 OPs
conducted as part of the evaluation identified 648 different instruments
This large variety of specific instruments however is mainly accounted for in that they are
often designed as elaborations of well-established approaches but addressing particular needs
and circumstances and also a variety of potential targets So building capacities and
competences can be undertaken for enterprises and their managers of varying degrees of
sophistication and background knowledge and can relate to a variety of matters from technical
issues to general management marketing exporting or more specialised issues such as IP
management The process of capacity building can therefore take many forms
The extent of the provision of access to finance is complicated by the question of whether or
not the provision of direct grants counts as part of this function Some substantial sums were
provided in this form by some of the OPs However generally an expected move towards the
provision of more indirect finance ndash loans and equity through intermediaries - was not as
marked as may have been anticipated General access to finance measures (equity
guarantees and reduction of credit interest) accounted for 38 of the funds allocated by the
Lithuanian OP and repayable financial support for 26 of the Apulian OP equity finance 14
in the case of Icircle-de-France 23 for loans and 35 for equity finance in that of Saxony The
other OPs had rather small amounts devoted to indirect financial instruments if any at all An
explanation offered of the small allocations to these instruments in some OPs was that the
crisis discouraged experimentation in this area that it is relatively difficult and expensive to
manage financial instruments and outside the experience of most Managing Authorities that
relatively large sums are necessary to make any appreciable impact and that results can often
take a long time to materialise
There were considerable differences in the extent to which there was provision of direct
support to enterprises In Saxony over 90 of the funds were in the form of grants and in
Icircle-de-France and in Apulia grants largely paid directly to enterprises accounted for 56 and
41 respectively of the funds allocated In Denmark by contrast no grants were paid directly
to enterprises unless they were partners in projects receiving support for developing clusters
or relationships with universities or in a small number of cases where they received funds to
hire private sector business advisers
It is useful to distinguish between different types of direct support In Poland and in Saxony a
large proportion of the direct support was for investments in innovative undertakings In
Apulia although the main part of support went to individual enterprises or SMEs it was more
evenly split between support for investment (by micro and small firms) and investment in
research In Icircle-de-France the weight of the direct support was for research projects
19
It is also interesting that analysis of a wider group of 50 OPs shows that manufacturing firms
received 33 of support ndash much greater than their share in the economy as a whole It also
showed that more than 50 of support has been directed to low-tech firms
Different forms of business support were available across the OPs including access to public
and private sources of information and advice incubator services and assistance for exporters
Castile amp Leon targeted the improvement of management capacities and this approach was
implicit in a number of other OPs
Approaches to support for innovation also took different forms Overall in the broader range
of OPs examined 24 of support was for RampD and a similar amount for business development
and direct support for RampD in collaborative and non-collaborative projects was a significant
feature of the OPs for Apulia Castile amp Leon Icircle-de-France Lithuania Poland and Saxony but
not in the Czech Republic and Denmark where FP7 was thought to be the appropriate vehicle
In Saxony strengthening the research base of enterprises in the local economy and promoting
the exploitation of knowledge was central to the OP so that the majority of the funds were
provided for investment in fixed capital and in supporting RampD This implied a certain targeting
within the SME population In Icircle-de-France the bulk of the support also went to research
projects and support for technology transfer and incubators though there was also support for
SME creation in distressed areas for access to finance and for social innovation projects In
Denmark the focus was more on promoting clusters and encouraging links between enterprises
and science institutions
In some cases however the picture was more mixed In Lithuania where 38 of funding went
to access to finance measures a further 30 to up-grading technology and processes but
there was also direct support for RampD and RampD infrastructure and support for networking and
clusters promoting innovation Similarly in Apulia there was support for research by SMEs
and measures to promote consulting services for technical innovation regional innovation
partnerships and aid for access to ICT alongside aid to investment in micro and small firms
and credit guarantees and support for tourism
Knowledge transfer also featured in many of the OPs Building relationships between
knowledge institutions and enterprises was an important objective for Denmark as part of
developing regional innovation capacities though the results were mixed at least in part
because of an unresponsive culture in certain universities In other cases these relationships
were promoted by collaborative research projects (Icircle-de-France Saxony) and in the case of
Lithuania by the use of vouchers Overall however it is perhaps surprising that building
relationships between knowledge institutions and enterprises did not have a higher profile
The development of clusters was an instrument used in the Czech Republic Lithuania and
Denmark where in some regions it absorbed a large proportion of the available funds and
where the focus was on emerging sectors such as clean technology energy health and welfare
and the experience economy Cluster support in this case consisted of a relatively complex set
of services provided for cluster members In the Czech Republic and Lithuania cluster
development was itself less developed and related to low-tech sectors with potential for
innovation and growth
Underlying these differences between Programmes there were variations in the approach to
governance This has become an important issue for all of the regions and countries
considered In part this is linked to the aspiration at least to establish transparent evidence-
based policy processes which has brought in the development of monitoring and evaluation
systems but there are more central elements of governance to do with who is involved in
decision-making and how decisions are taken that are also part of the picture The
development of stakeholder involvement in strategy formation in the setting of priorities and
even in elements of implementation was apparent in many of the cases throughout the
20
programming period In Denmark the whole (national and EU) strategy was based from the
beginning on a national consensus established through political and open public debates and
implemented through regional bodies with a strong stakeholder representation In Apulia a
self-evaluation exercise led to new departures in response to the crisis
There were however other issues of governance alluded to in the seminar relating to but the
alignment of the OP with national strategies and the organisational mechanisms adopted to
implement the strategy chosen by each OP These can have considerable influence on the
degree to which the Managing Authority can directly influence the implementation
mechanisms
Finally account must be taken of the differential impacts of the recession In Apulia and
Castile amp Leon there was formal reprogramming largely as a result of the recession and
changes in the instrument set utilised To a certain extent this meant a scaling down of
ambitions when for many enterprises it was a matter of survival rather than developing new
ventures Even here though the story does not always move in the same direction In the case
of Apulia for instance while it was necessary in part to refocus support on the broad range of
enterprises suffering from the recession at the same time the crisis acted as a stimulus to new
thinking after the conduct of a self-evaluation exercise
242 A common framework
Overall it can be seen that within the diversity shown by the eight cases there are at least a
number of common themes which are belong addressed in different ways The question does
arise however of whether it might be possible to go further to offer an explanation of the
diversity
External experts at the seminar advised that a theoretical framework should be sought to
make greater sense of the quantitative material and provide the basis for a more deliberative
judgement on the effectiveness of policy and how support funds can be best spent
One possibility is to take the differing circumstances of the OPs as themselves being an
explanatory factor and in a further step see the differences in the nature of the instruments
deployed as being part of an evolutionary process This approach also has the merit of linking
a debate on instruments with broader considerations in the promotion of innovation and
competitiveness at a European level
The reference in section 1 above to the position of the countries covered by the case studies
and their innovation performance as characterised by the Innovation Union Scoreboard and
in further detail at a regional level by the Regional Innovation Scoreboard 2012 allows a
distinction to be made between countries and regions in four categories - lsquoleadersrsquo lsquofollowersrsquo
those with a moderate lsquoperformancersquo and those lsquocatching-uprsquo The respective positions of the
eight cases have been set out in section 1
The approach suggested at the seminar was essentially to explore the hypothesis that the
overall lsquoinnovationrsquo position of regionscountries determines the types of instrument
used their targeting and ultimately their relative performance It may be that the
categorisation help us explain the differences in the objectives set the instruments that are
appropriate and their targeting and that this in turn also influences the performance that can
be expected Regionscountries for instance that are in the lsquoless developedrsquo categories may
have to strengthen their basic support infrastructure and service provision and the
performance of the enterprise base and that of other important players such as knowledge
institutions public authorities etc The regionscountries in the more lsquoadvancedrsquo positions on
the other hand have to build on their strengths in order to maintain or enhance their position
by promoting more productive research and strengthening the links between the science base
and enterprises
21
This possible framework provides an interesting line of enquiry to be followed up in further
stages of the evaluation It does however also address other issues raised in the seminar
such as whether support should be directed to high-tech enterprises or as was argued in
relation to a number of the countries present the gains to be had from the improvement of
the performance of mid and low-tech firms are more relevant in certain stages of
development
22
3 NEXT STEP THEORY-BASED IMPACT EVALUATIONS
As the implementation of the evaluation study proceeds and the case studies (Task 3) are
being drafted the Team is in the course of identifying three policy instruments to be assessed
by as many theory-based impact evaluations as foreseen in Task 4 The three instruments
should be selected out of the long list of seven instruments suggested in the First Intermediate
Report and in consultation with the European Commission
The Team puts forward hereby a possible list of three policy instruments The main criteria
considered for their selection are
i The degree of representativeness of the typologies of policy instruments used in the 50
OPs as outlined in the First Intermediate Report the most significant categories of
policy instruments in terms of public expenditure are
Business creation and development ie instruments designed to stimulate
investments in the business sector without a predominant emphasis on RampD
and innovation
Support for RampD projects
Support for the development of technological and non-technological innovation
without any research and experimental development activities
ii The feasibility of a theory-based impact evaluation based on a survey of beneficiaries
which implies the availability of a sufficiently large number of beneficiaries and the
possibility to easily get their email contacts also with the help of the Managing
Authority or the implementing body the best option is to have at least some hundreds
beneficiary SMEs for each instrument
iii The importance of the policy instrument within the policy mix of the OP which ensures
the availability of a good amount of information resulting from the case study
regarding in particular its logic of intervention information about beneficiaries and
effectiveness
iv Preference is assigned to instruments on which no other surveys to beneficiaries have
been conducted so far in order not to put excessive burden on the same SMEs which
could undermine their willingness to contribute to our study
Based on these considerations the three policy instruments we propose for a theory-based
impact evaluation are presented in the table below It can be noticed that the list also ensures
geographical balance between Convergence and Competitiveness and Employment region as
well as Old and New Member States and regional and national OPs For the sake of
completeness and comparability for all the seven candidate instruments the pros and cons for
selecting each of them are detailed
23
Table 4 Comparison of the policy instruments and reasons for selection
Proposed for
selection
Type of policy
instrument
Selected policy
instrument
Operational Programme and
type of regioncountry
Descriptive information Specific reason for selection
for a TBIE Possible reasons for
rejection
YES Business creation and development
ldquoAid to investment projects by micro and small enterprisesrdquo
Regional OP Apulia (Italy) - Convergence region
- Old Member State
The instrument supports the purchase of machineries computer systems buildings construction works for enterprises in order to encourage the development of micro and small companies It benefitted more than 3 thousand SMEs For around 30 of beneficiaries grants have been combined with credit guarantees
- Very common type of SME support on which vast literature has been produced
- Very large number of beneficiary SMEs
- The strong relationship already established with local stakeholders and many SMEs would allow to easily and quickly test the surveyrsquos questionnaires before the launch of the three TBIEs
- For some SMEs opportunity to analyse the complimentary efforts of two forms of support (grants and a combination of grants and guarantees) and their respective effectiveness
- None
YES Support for RampD projects
ldquoGrants for Industrial Research and Experimental Developmentrdquo
Regional OP Castilla y Leon (Spain) - Competitiveness and Employment region
- Old Member State
The instrument encourages the development of RampD projects with the purpose of increasing the basis of number of innovative enterprises investment and personnel in RampD In total 759 projects of SMEs have been supported through grants 204 SMEs have conducted their project in collaboration with research organisations
- In analysing the achievement of beneficiary SMEs as well as the behavioural change opportunity to distinguish between SMEs which have realized their projects independently rather than in collaboration with a research centre
- According to the country expert among all the policy instruments of this OP this is the one for which it would be easier to get the contact details of beneficiary SMEs
- Possibility to get active collaboration by the regional authority ADE eg sending out an introductory letter to all
- None
24
Proposed for
selection
Type of policy
instrument
Selected policy
instrument
Operational Programme and
type of regioncountry
Descriptive information Specific reason for selection
for a TBIE Possible reasons for
rejection
SMEs mentioning that they will receive an invitation to a survey and inviting them to reply
YES Support for the development of technological and non-technological innovation
ldquoFinancing of individual projects for SMEsrdquo
National OP Poland Innovative Economy - Convergence country
- New Member State
The instrument provides grants to support the technological innovation of SMEs In particular it aims to stimulate the adoption of more risky and innovative solutions The instrument performed far better than expected 698 projects have been realised up to 2013 by approximately as many SMEs The instrument is delivered by a financial intermediary
- This instrument belongs to the OP which has provided the largest financial contribution to SMEs within the full sample of 50 OPs furthermore this is one of the core instrument of the programme as also reflected in the volume of public contribution which is among the highest of the OP (more than EUR 300 million fully targeted to SMEs)
- Opportunity to examine the role played by the intermediary according to the perceptions and opinions of beneficiary SMEs
- None
NO Support for RampD projects
ldquoRampD project grants for individual enterprisesrdquo
Germany regional OP Saxony - Convergence region
- Old Member State
The instrument provides grants to individual enterprises for supporting the implementation of RampD projects
- Evidence of achievement is already available since the instrument was subject of another evaluation study and enterprise survey a few years ago The TBIE would allow to better qualify the instrumentsrsquo achievements and the causal chain leading to the certain effects
- According to the country experts beneficiary SMEs may be reluctant to participate to another survey
- Less than 200 beneficiary SMEs a lower number as compared with other candidate policy instruments
- It is still uncertain whether it will be possible to get the email addresses of beneficiary SMEs
25
Proposed for
selection
Type of policy
instrument
Selected policy
instrument
Operational Programme and
type of regioncountry
Descriptive information Specific reason for selection
for a TBIE Possible reasons for
rejection
NO Support for the development of technological and non-technological innovation
ldquoSupport for technological upgrade - LEADER LTrdquo
Lithuania - Economic Growth - Convergence country
- New Member State
The instrument supports the increase of productivity in enterprises by supporting production technology upgrading The investment into the acquisition or upgrade of technologies and related internal engineering infrastructures are supported
- Email contacts particularly easy to be collected
- Result indicators are available due to an effective Structural Funds monitoring system and because the instrument was already subject of a previous evaluation study
- Very low number of beneficiary SMEs (69) which would make this instrument less suitable for launching an on-line survey as compared with other candidate instruments
NO Support for the development of technological and non-technological innovation
ldquoSupport for non-technological innovation - PROCESS LTrdquo
Lithuania - Economic Growth - Convergence country
- New Member State
The instrument aims to increase productivity in enterprises by implementing modern management methods and processes except of personnel management systems The purchase of external consulting services is supported in order to upgrade enterprises management processes
- Email contacts particularly easy to be collected
- Result indicators are available due to an effective Structural Funds monitoring system and because the instrument was already subject of a previous evaluation study
- The instrument is considered highly relevant by the target beneficiaries
- Very low number of beneficiary SMEs (119)
- As compared with other categories of policy instruments support for non-technological innovation is relatively less significant and representative of the typical forms of support provided to SMEs in the EU
NO Support for networking
ldquoInteraction on Innovationrdquo later merged with ldquoCluster relationshiprdquo
Denmark Innovation and Knowledge OP - Competitiveness and Employment country
- Old Member State
The policy instrument aims at analysing opportunities for creating clusters promoting networks and the formation of clusters of SMEs in particular as well as clusters of supplier networks for SMEs These objectives are pursued by providing grants to SMEs in partnership with universities (according to the triple helix model)
- Opportunity to better analyse the effects of a policy instrument on which a vast amount of literature has been produced
- Opportunity to dig into the collaboration mechanisms between SMEs and universities
- As compared with other categories of policy instruments support for networking is relatively less significant and representative of the typical forms of support provided to SMEs in the EU
- The number and characteristics of SMEs benefitting from this instrument remain unknown even after implementing the case
26
Proposed for
selection
Type of policy
instrument
Selected policy
instrument
Operational Programme and
type of regioncountry
Descriptive information Specific reason for selection
for a TBIE Possible reasons for
rejection
study The lack of data at policy instrument level prevents from identifying the beneficiary SMEs to which launching the on-line survey
27
4 ANNEX SEMINAR PARTICIPANTS
Name Description Organisation
DG REGIO Evaluation Unit
Rudolf Niessler Director DG REGIO B Policy
Veronica Gaffey Head of Evaluation Unit DG REGIO B2
Marielle Richeacute Evaluation Unit DG REGIO B2
Kai Stryczynski Deputy Head of Unit DG REGIO B2
Daniel Mouqueacute Evaluation Unit DG REGIO B2
CSIL Evaluation Team
Massimo Florio Evaluation team Director CSIL
Julie Pellegrin Evaluation team Project Manager CSIL
Silvia Vignetti Evaluation team CSIL
Emanuela Sirtori Evaluation team CSIL
Mike Coyne Evaluation team CSES
Malin Carlberg Evaluation team CSES
Anna-Maria Krarup Evaluation team CSES
Christian Koehler Case Study Saxony Centre for European Economic Research (ZEW)
Jaime del Castillo Case Study Castile amp Leon President INFYDE
Agnė Paliokaitė Case Study Lithuania Visionary Analytics
Elena Jarocinska Case Study Poland
Commission Officials
Katja Reppel Deputy Head of Unit Competence Centre Smart and Sustainable Growth
DG REGIO G1
Bernd Reichert Head of Unit H2020 SME EASME
Peter Wragg Head of Unit SME Access to Markets DG GROW F2
Jean David Malo Head of Unit SMEs Financial Instruments amp State Aid DG RTD B3
28
Istvan Nemeth Policy Officer - Enterprise Europe Network DG GROW F2
External Experts
Harvey Armstrong Professor Emeritus in the Department of Geography University of Sheffield
Robert Picciotto Visiting Professor Kings College London
Mark Sanders Professor University of Utrecht
Jiri Blazek Associate Professor Charles University Prague
Stakeholders ndash Case Studies
Adriana Agrimi Manager of RampI Policy Instrument Apulia Managing Authority
Kasper Westh Senior official Growth Forum Secretariat South Denmark
Simona Daukilaite
Deputy Head of the Economic Growth Operational Programme
Economic Growth OP Lithuania Managing Authority
Beatriz Casado Saenz Vice-General Director ADE (Development Agency Castile amp Leon)
Tomasz Kula Analysis and Evaluation Team Competitiveness and Innovation Department
Ministry of Infrastructure and Development (PL)
Representatives of other Work Packages
Terry Ward WP 1 Applica
Andreas Resch WP 3 Metis-Vienna
Anda Berenyi WP 4 KPMG
LEGAL NOTICE
This document has been prepared for the European Commission however it reflects the views only of the authors and the Commission cannot be held responsible for any use which may be made of the information
contained therein
More information on the European Union is available on the Internet (httpwwweuropaeu)
Luxembourg Publications Office of the European Union 2014
ISBN [number]
doi[number]
copy European Union 2015
Reproduction is authorised provided the source is acknowledged
Printed in [Country]
PRINTED ON ELEMENTAL CHLORINE-FREE BLEACHED PAPER (ECF)
PRINTED ON TOTALLY CHLORINE-FREE BLEACHED PAPER (TCF) PRINTED ON RECYCLED PAPER
PRINTED ON PROCESS CHLORINE-FREE RECYCLED PAPER (PCF)
Europe Direct is a service to help you find answers to your questions about the European Union
Freephone number ()
00 800 6 7 8 9 10 11
() The information given is free as are most calls (though some operators phone boxes or hotels may charge you)
9
Figure 1 Map of OPs selected for in-depth study
Denmark ndash Innovation
and knowledge
(2007DK162PO001)
Germany ndash Saxony
(2007DE161PO004)
France ndash Icircle-de-France
(2007FR162PO012)
Spain ndash Castilla y Leoacuten
(2007ES162PO009)
Italy ndash Apulia
(2007IT161PO010)
Lithuania ndash Economic
Growth
(2007LT161PO002)
Czech Republic ndash
Business and Innovation
(2007CZ161PO004)
Poland ndash Innovative
Economy
(2007PL161PO001)
Source CSIL
These eight OPs have been evaluated in order to enrich the preliminary hypotheses derived in
Task 1 on the mix of policy instruments adopted to promote SME growth and innovation across
the EU and on their outcomes The diversity of OPs included in the sample allows to account
for different regional and national specificities thus bringing context variables more forcefully
into the picture
In particular the selection of OPs both at regional (such as Apulia or Saxony the former at
NUTS 2 level the latter at NUTS 1 level) and national level (such as the Polish or Danish
programme) in eight different countries allows providing a panorama of different institutional
context features and regional innovation systems in place which can play an important role on
the delivery mechanisms of support along with their effectiveness The analysis encompasses
areas which have been touched to a different extent by the economic recession and which
belong to different Cohesion Policy objectives which is likely to affect their capacity to react to
the crisis and overcome structural barriers hindering SME development and innovativeness
The number of SMEs based in the areas targeted by the OPs range from nearly two hundred
thousand as in Saxony or in small countries such as Denmark and Lithuania to almost or
more than 1 million as in the Czech Republic and Poland This variance is reflected in the
volume of ERDF contribution dedicated to SMEs which is highest in Poland and Czech Republic
However the sample includes also an example of OP which dedicates a relatively limited
amount of ERDF to SMEs in spite of the large number of SMEs in the region it is the OP of Icircle-
de-France
10
Table 1 Eight Operational Programmes observed
OP
Cohesion
Policy
objective
EU 12
(ldquoNewrdquo
Member
States) or
EU15 (ldquoOld
Member
States)
NUTS level
Volume of EU
contribution for WP2
themes (EUR
million)
of EU contribution
for WP2 themes over
total contrib for
the OP
Total
population
of the area
covered by
the OP
GDP (PPS)
per capita
(average
2007-2011)
(EUR)
Total
number of
SMEs ()
Total
intramural
expenditure
in RampD
(GERD) ndash
2007-2011
average
Business
expenditure
in RampD
(BERD) ndash
2007-2011
average
1 Italy ndash Apulia Convergence EU15 NUTS 2 region
645 25 4 million 16640 218 thousand
(in 2011)
075 of
GDP
017 of
GDP
2 France ndash Icircle-
de-France
Competitiveness
and Employment EU15
NUTS 2
region 60 42 118 million 43360
727 thousand
(in 2011)
298 of
GDP
198 of
GDP
3 Germany -
Saxony Convergence EU15
NUTS 2
region 846 29 42 million 21040
140 thousand
(in 2012)
277 of
GDP
131 of
GDP
4 Denmark - Innovation and
knowledge
Competitiveness and Employment
EU15 NUTS 0 country
203
82
55 million 30660 213 thousand
(in 2013)
274 of
GDP
187 of
GDP
5 Spain ndash Castilla
y Leoacuten
Competitiveness
and Employment EU15
NUTS 2
region 269 36 255 million 23860
131 thousand
(in 2013)
109 of
GDP
061 of
GDP
6 Czech Republic - Business and
Innovation
Convergence EU12
NUTS 0
(except capital city
region)
2282 73 105 million 16960 928 thousand
(in 2013)
112 of
GDP
078 of
GDP
7 Poland - Innovative
Economy
Convergence EU12 NUTS 0 country
5287 62 38 million 14740 15 million (in
2013)
066 of
GDP
020 of
GDP
8 Lithuania -
Economic
Growth
Convergence EU12 NUTS 0
country 760 25 3 million 15440
115 thousand
(in 2013)
085 of
GDP
024 of
GDP
Source Eurostat and EC Performance Review 2014
Note () CSIL elaboration of National Statistical Office data (NACE sectors B-N excl K)
11
As shown in Table 1 the heterogeneity of areas covered by the case studies can be highlighted
also if considering the total intramural RampD expenditure or business RampD expenditure
According to the Global Innovation Index 2014 (Cornell University INSEAD and WIPO 2014)1
which combines innovation input measures and output measures the EU areas of the sample
cover a wide range or ranking categories (see Table 2 below)
Table 2 Global Innovation Index ranking ndash 2014
Global Innovation Index 2014 ranking
Top 10 11-20 21-30 31-40 40-60
UK Ireland Austria Cyprus Croatia
Sweden Germany France Italy Bulgaria
Finland Belgium Portugal Poland
Netherlands Estonia Latvia Greece
Denmark Malta Hungary Romania
Luxembourg Czech Republic
Slovakia
Spain Lithuania
Slovenia
Note The eight case studies are indicated by the asterisks
Source CSIL based on Cornell University INSEAD and WIPO (2014)
A more focused picture can be obtained using data from the Innovation Union Scoreboard
2012 covering the years 2007 ndash 2011 which ranks not only Member States but also regions in
terms of their performance against a set of indicators of innovation2 Specifically it places
countries and regions in four categories distinguishing between lsquoleadersrsquo lsquofollowersrsquo those
with a moderate lsquoperformancersquo and those lsquocatching-uprsquo Table 3 shows the position attributed
by the Scoreboard to the target area that have been examined in case studies
Table 3 Innovation Scoreboard Attribution
Leader Follower Moderate Modest
Catching-up
Denmark
Icircle-de-France
Saxony
Castile amp Leoacuten
Czech Republic
Poland
Apulia
Lithuania
Source European Innovation Scoreboard 2007 amp Regional Innovation Scoreboard 2012 Note Convergence region
Other regions Competitiveness amp Employment
According to the analysis of the SME-related policy instruments performed as part of Task 1
the eight OPs account for different intervention strategies as reflected in the mix of policy
instruments implemented (Figure 2) and the mode of delivery of such instruments (Figure 3)
Actually the sample includes some OPs whose primary aim is to promote business creation
and development (such as the Czech Spain Italian and Lithuanian OPs) others where public
expenditure is more concentrated on support for RampD projects (such as the German and the
1 Cornell University INSEAD and WIPO (2014) The Global Innovation Index 2014 The Human Factor In innovation
Fontainebleau Ithaca and Geneva 2 The Regional Innovation Scoreboard 2012 applies the same methodology as far as it was possible to Member State
and regions Because of data availability problems at a regional level it was not possible to exactly replicate the
methodology but the results obtained were checked for consistency with the national level scoreboard One other
change was that those regions appearing in the last category were referred to as having lsquomodestrsquo innovation
performance
12
French OPs) for increasing technological and non-technological innovation (Polish OP) One OP
is focused on increasing networking and knowledge and technology transfer (Danish OP)
Figure 2 Paid amount by type of policy instruments in the eight OPs
0
10
20
30
40
50
60
70
80
90
100
CZ - CzechRepublic
DE - Saxony DK - Denmark ES - Castilla yLeoacuten
FR - Icircle deFrance
IT - Apulia LT - Lithuania PL - Poland
Support for RampD projects
Support for improving capacities
Networking
Knowledge and technology transfer
Internationalisation and visibility
Infrastructures and related services
Generic access to finance
Development of technological or non-technological innovation
Creation of innovative companies
Business creation and development
Access and diffusion of ICT
Note paid amount refers to both ERDF and public funds paid to beneficiaries
The public support has been largely delivered in the form of grants in five out of the eight
considered OPs which is in line with the predominance of traditional direct support across the
entire EU There are however some exceptions in Lithuania and especially Poland more
often public support has been conveyed through packages of support usually combining
grants with consulting services Equity finance is quite relevant in Icircle-de-France Lithuania and
Saxony while some preference for using repayable financial support can be observed in Apulia
and the Czech Republic
13
Figure 3 Paid amount by mode of delivery in the eight OPs
0 10 20 30 40 50 60 70 80 90 100
CZ - CzechRepublic
DE - Saxony
DK - Denmark
ES - Castilla yLeoacuten
FR - Icircle de France
IT - Apulia
LT - Lithuania
PL - Poland
Equity finance + Repayable financial support
Consulting services + training + search of businesspartnersConsulting advice technical assistance
Consulting advice technical assistance +Information campaing eventsEquity finance
Grants
Grants + consulting services + training
Grants + Consulting advice technical assistance
Grants + Loans + Information campaigns
Grants + Provision of infrastructure and services +Consulting advice technical assistanceGrants + training
Information campaign events seminars
Provision of infrastructure and services +Consulting advice technical assistanceProvision of infrastructures
Repayable financial support
Source CSIL elaboration Note Paid amount refers to both ERDF and public contributions
14
The eight OPs have provided of support to around 48 thousand SMEs representing 20 of the
total number of beneficiary SMEs ascribable to the full sample of 50 OPs The number of
beneficiary SMEs is the highest for the OPs of Poland and Lithuania with more than 10
thousand and 12 thousand beneficiaries on the other hand the French OP has supported less
than 300 SMEs
Figure 4 Number of beneficiary SMEs of the eight OPs
00
10
20
30
40
50
60
70
80
90
100
0
2000
4000
6000
8000
10000
12000
14000
PL - Poland LT - Lithuania IT - Apulia ES - Castilla yLeoacuten
CZ - CzechRepublic
DE - Saxony FR - Icircle de France
Number of beneficiary SMEs Share of beneficiary SMEs over the total number of SMEs in the target area
Source CSIL elaboration Note Missing data for Denmark since the exact number of beneficiary SMEs is not available
In order to assess the intervention strategy of the OPs besides the absolute number of
beneficiaries it is particularly interesting to look at the distribution of beneficiaries according to
their size and technology intensity The analysis on the 50 OPs has revealed that the micro
enterprises generally represent the large majority of SMEs benefiting from ERDF support
(54) followed by small (30) and medium enterprises (16) The analysis has documented
the predominantly low technological intensity of beneficiary SMEs the majority of SMEs (53)
belong to sectors with a low share of business RampD expenditure over the value added by
sector However it is also noted that almost one quarter of all beneficiaries (24) has a
medium-high technological level Medium low-tech or high tech companies represent a lower
share of all the identified beneficiaries ie 14 and 9 respectively
The proportion of beneficiary SMEs in the eight OPs provides a more diversified picture (Figure
5 and 6) The Czech OP Enterprise and Innovation has directed the public support mainly to
small and medium size companies with a fair distribution in terms of technology intensity
Conversely the regional Apulia OP target micro enterprises characterised by either a low or a
medium-high technology intensity The Lithuanian OP has mostly supported low-tech
companies without significant differentiation in terms of size
15
Figure 5 Share of beneficiary SMEs by size class in the eight OPs
0
10
20
30
40
50
60
70
80
90
100
CZ - Czech Republic(Innov)
ES - Castilla y Leoacuten FR - Icircle de France IT - Apulia LT - Lithuania PL - Poland
Micro enterprises Small enterprises Medium enterprises
Source CSIL elaboration Note Missing data for Saxony and Denmark since the size class of beneficiary SMEs is not
available
Figure 6 Share of beneficiary SMEs by technology intensity level in the eight OPs
0
10
20
30
40
50
60
70
80
90
100
CZ - CzechRepublic
DE - Saxony ES - Castilla yLeoacuten
FR - Icircle deFrance
IT - Apulia LT - Lithuania PL - Poland
Low tech
Medium-low tech
Medium-high tech
High tech
Source CSIL elaboration Missing data for Denmark since the level of technological intensity cannot be estimated due
to missing data on sectoral disaggregation of beneficiary SMEs
Whether the characteristics of beneficiary SMEs simply mirror the specific characteristics of the
population of SMEs in the area covered by the OPs or result from different logics of
intervention underneath the OPs or from a mix of the two possible reasons is investigated in
the case studies
16
2 RESULTS OF THE SEMINAR
The aim of a ldquostakeholder seminarrdquo held on 29th April 2015 was to present the preliminary
findings and the main issues identified in other tasks undertaken for this Work Package and
especially those emerging from the eight case studies of Operational Programmes and to
discuss the policy implications and main lessons with Commission staff the evaluation team
members (and representatives of other Work Packages) academic experts and people
involved in the implementation of the Operational Programmes on the ground (see list of
participants in Annex) The following provides an overview setting out the main highlights in
the results from the presentations of the eight case studies
The seminar was organised in relation to three themes as follows
1) Targeting high vs low tech firms the case studies of Lithuania Saxony and Poland
2) Promoting widespread vs selective instruments the case studies of Apulia Castile amp
Leon and the Czech Republic
3) ERDF and the regional policy mix the case studies of Icircle-de-France and Denmark
Other issues that it was intended to highlight during the course of the discussion included
The issue of direct versus indirect support
Economic development versus anti-cyclical intervention
Supporting enabling organisations
Supporting individual enterprises as against partnerships
21 Targeting high vs low tech firms
In Lithuania the challenge was to build competitive advantage on the basis of labour-intensive
technologies The traditional sectors were in need of upgrading and the majority of the funds
were allocated to low tech companies In Saxony there was a demand driven approach but
also a realisation that low tech firms can improve competitiveness through cost reduction
Technologyprocess upgrading as subset to innovation can be justified but concentration of
spending on RampD has established Saxony as one of the German RampD powerhouses and
contributed to market access an increase in turnover and employment growth In Poland it
was thought that for countries that are not leading technological change the returns from
innovation are particularly high in low-tech manufacturing sectors but that as a country
approaches the technological frontier the policy should focus on RampD and innovative start-up
In discussion a central question was posed where does the investment pay most
22 Promoting widespread vs selective instruments
In Apulia the strategy was adjusted through re-programming to provide broad support to
SMEs to allow them to survive during the crisis and recession a dual approach was adopted
with selective support for SMEs with the internal capacity to manage innovation processes
including demand-side measures In Castile amp Leon the impact of the crisis was also intense
and broadly-based support was necessary but there were also efforts to build up the support
infrastructure and to provide in-depth support to enterprises identified as capable of innovation
and growth In the Czech Republic there was again both broadly-based and selective support
especially to address the ldquoBranch-plant syndromerdquo (where branches of international firms allow
little room for independent development by local suppliers) There was a focus on transferring
RampD results into production by stimulating demand for RampD results with 13 of the funds
going to support for innovation activities
17
23 ERDF and the regional policy mix
The last two cases are examples of OPs for areas which are relatively prosperous and where
RampD and innovation are relatively strong The ERDF budgets however were relatively small
In the Icircle-de-France (IdF) there was a pragmatic and demand-driven implementation
palliating perceived gaps in regional public support and enlarging the available financial
support targeting high growth high tech sectors appears to pay off in the IdF context In
Denmark there was a more strategic approach which was well integrated into national
strategy but with flexible implementation with strong stakeholder involvement in 6 regional
programmes There were interesting applications of the triple helix model amp successful cluster
developments
In all cases there was comment on the strength of monitoring and evaluation systems These
varied considerably from a relatively under-developed system in Apulia to a relatively strong
one in Icircle-de-France Denmark had organised a counterfactual analysis of enterprises
supported by the OP as against similar enterprises not receiving support
24 Synthesis
241 Diversity across themes
The first impression made by the presentations was the diversity of the interventions in the
eight cases There are several dimensions to these differences beginning with the context in
which the OP was implemented where there were differences relating to
The size of the regionsMember States targeted The absolute and relative size of the Programmes within the regions and countries in which
they operated and the effects that could reasonably be expected from them The size and structure of the SME population its sectoral distribution and its capacities
and assets The economic context within which the OPs operated and especially the way that the
economic crisis impacted on each area over the course of the programming period The endowment of SME and innovation support infrastructure and culture determining the
base on which the OPs could build
In fact the detailed investigations have confirmed the importance of the specific context in
which each OP was conceived and implemented for the determination of the nature of the
policy instruments used and the results to be expected from them This context is important
for any fair assessment of the achievements or otherwise of each Programme
Nonetheless when it came to the processes used to promote SMEs and innovation the
differences could often be considered as involving variations around a series of central themes
In all the cases considered there was a strong emphasis on promoting innovation as a
central objective yet this was done in a variety of ways and had differing relationships with
the objective of SME promotion In a number of cases support for SMEs was itself very much
seen as part of this process of encouraging innovation including in the case of the Icircle-de-
France where it involved encouraging new forms of enterprise dedicated to pursuing social
innovation In other cases however there was a clear commitment to provide general support
to SMEs and especially after the extent of the economic crisis became apparent some re-
programming to ensure this
Consequently targeting policies were not as clear cut as might have been expected There
were cases where SMEs were targeted directly ndash Apulia and Castile amp Leon but even here
there was also an element of trying to ensure that enterprises that were capable of benefitting
from support were the one to receive it while elsewhere a subtle lsquosoft targetingrsquo was more
evident where the instruments were shaped to achieve a certain selectivity not by defining
exclusions but by requiring for instance a commitment to change and growth on the part of
18
participants In Denmark for example those encouraged to become members of cluster
organisations had to be interested in developing their growth potential if their participation
was to serve any purpose This in effect led to a self-exclusion by those not willing to play
along with the support offered
The nature of the instruments used to implement OPs were shaped by a number of factors
Just as the objectives of an OP must take into account a large variety of details relating to the
circumstances of the relevant region or country so the precise characteristics of the
instruments to be applied must reflect not only the particular purposes for which they are to be
used the nature of the target group to be addressed and the economic and social
circumstances of the area concerned but the legacy of past interventions as well in the form
of existing support infrastructure and the capabilities developed in preceding periods In other
words support instruments are built on past actions both for positive reasons (exploiting
existing assets) but also because of their familiarity or a certain institutional inertia In any
event the large variety of circumstances in which the particular features of instruments are
determined gives rise to a wide array of actual policy instruments The review of 50 OPs
conducted as part of the evaluation identified 648 different instruments
This large variety of specific instruments however is mainly accounted for in that they are
often designed as elaborations of well-established approaches but addressing particular needs
and circumstances and also a variety of potential targets So building capacities and
competences can be undertaken for enterprises and their managers of varying degrees of
sophistication and background knowledge and can relate to a variety of matters from technical
issues to general management marketing exporting or more specialised issues such as IP
management The process of capacity building can therefore take many forms
The extent of the provision of access to finance is complicated by the question of whether or
not the provision of direct grants counts as part of this function Some substantial sums were
provided in this form by some of the OPs However generally an expected move towards the
provision of more indirect finance ndash loans and equity through intermediaries - was not as
marked as may have been anticipated General access to finance measures (equity
guarantees and reduction of credit interest) accounted for 38 of the funds allocated by the
Lithuanian OP and repayable financial support for 26 of the Apulian OP equity finance 14
in the case of Icircle-de-France 23 for loans and 35 for equity finance in that of Saxony The
other OPs had rather small amounts devoted to indirect financial instruments if any at all An
explanation offered of the small allocations to these instruments in some OPs was that the
crisis discouraged experimentation in this area that it is relatively difficult and expensive to
manage financial instruments and outside the experience of most Managing Authorities that
relatively large sums are necessary to make any appreciable impact and that results can often
take a long time to materialise
There were considerable differences in the extent to which there was provision of direct
support to enterprises In Saxony over 90 of the funds were in the form of grants and in
Icircle-de-France and in Apulia grants largely paid directly to enterprises accounted for 56 and
41 respectively of the funds allocated In Denmark by contrast no grants were paid directly
to enterprises unless they were partners in projects receiving support for developing clusters
or relationships with universities or in a small number of cases where they received funds to
hire private sector business advisers
It is useful to distinguish between different types of direct support In Poland and in Saxony a
large proportion of the direct support was for investments in innovative undertakings In
Apulia although the main part of support went to individual enterprises or SMEs it was more
evenly split between support for investment (by micro and small firms) and investment in
research In Icircle-de-France the weight of the direct support was for research projects
19
It is also interesting that analysis of a wider group of 50 OPs shows that manufacturing firms
received 33 of support ndash much greater than their share in the economy as a whole It also
showed that more than 50 of support has been directed to low-tech firms
Different forms of business support were available across the OPs including access to public
and private sources of information and advice incubator services and assistance for exporters
Castile amp Leon targeted the improvement of management capacities and this approach was
implicit in a number of other OPs
Approaches to support for innovation also took different forms Overall in the broader range
of OPs examined 24 of support was for RampD and a similar amount for business development
and direct support for RampD in collaborative and non-collaborative projects was a significant
feature of the OPs for Apulia Castile amp Leon Icircle-de-France Lithuania Poland and Saxony but
not in the Czech Republic and Denmark where FP7 was thought to be the appropriate vehicle
In Saxony strengthening the research base of enterprises in the local economy and promoting
the exploitation of knowledge was central to the OP so that the majority of the funds were
provided for investment in fixed capital and in supporting RampD This implied a certain targeting
within the SME population In Icircle-de-France the bulk of the support also went to research
projects and support for technology transfer and incubators though there was also support for
SME creation in distressed areas for access to finance and for social innovation projects In
Denmark the focus was more on promoting clusters and encouraging links between enterprises
and science institutions
In some cases however the picture was more mixed In Lithuania where 38 of funding went
to access to finance measures a further 30 to up-grading technology and processes but
there was also direct support for RampD and RampD infrastructure and support for networking and
clusters promoting innovation Similarly in Apulia there was support for research by SMEs
and measures to promote consulting services for technical innovation regional innovation
partnerships and aid for access to ICT alongside aid to investment in micro and small firms
and credit guarantees and support for tourism
Knowledge transfer also featured in many of the OPs Building relationships between
knowledge institutions and enterprises was an important objective for Denmark as part of
developing regional innovation capacities though the results were mixed at least in part
because of an unresponsive culture in certain universities In other cases these relationships
were promoted by collaborative research projects (Icircle-de-France Saxony) and in the case of
Lithuania by the use of vouchers Overall however it is perhaps surprising that building
relationships between knowledge institutions and enterprises did not have a higher profile
The development of clusters was an instrument used in the Czech Republic Lithuania and
Denmark where in some regions it absorbed a large proportion of the available funds and
where the focus was on emerging sectors such as clean technology energy health and welfare
and the experience economy Cluster support in this case consisted of a relatively complex set
of services provided for cluster members In the Czech Republic and Lithuania cluster
development was itself less developed and related to low-tech sectors with potential for
innovation and growth
Underlying these differences between Programmes there were variations in the approach to
governance This has become an important issue for all of the regions and countries
considered In part this is linked to the aspiration at least to establish transparent evidence-
based policy processes which has brought in the development of monitoring and evaluation
systems but there are more central elements of governance to do with who is involved in
decision-making and how decisions are taken that are also part of the picture The
development of stakeholder involvement in strategy formation in the setting of priorities and
even in elements of implementation was apparent in many of the cases throughout the
20
programming period In Denmark the whole (national and EU) strategy was based from the
beginning on a national consensus established through political and open public debates and
implemented through regional bodies with a strong stakeholder representation In Apulia a
self-evaluation exercise led to new departures in response to the crisis
There were however other issues of governance alluded to in the seminar relating to but the
alignment of the OP with national strategies and the organisational mechanisms adopted to
implement the strategy chosen by each OP These can have considerable influence on the
degree to which the Managing Authority can directly influence the implementation
mechanisms
Finally account must be taken of the differential impacts of the recession In Apulia and
Castile amp Leon there was formal reprogramming largely as a result of the recession and
changes in the instrument set utilised To a certain extent this meant a scaling down of
ambitions when for many enterprises it was a matter of survival rather than developing new
ventures Even here though the story does not always move in the same direction In the case
of Apulia for instance while it was necessary in part to refocus support on the broad range of
enterprises suffering from the recession at the same time the crisis acted as a stimulus to new
thinking after the conduct of a self-evaluation exercise
242 A common framework
Overall it can be seen that within the diversity shown by the eight cases there are at least a
number of common themes which are belong addressed in different ways The question does
arise however of whether it might be possible to go further to offer an explanation of the
diversity
External experts at the seminar advised that a theoretical framework should be sought to
make greater sense of the quantitative material and provide the basis for a more deliberative
judgement on the effectiveness of policy and how support funds can be best spent
One possibility is to take the differing circumstances of the OPs as themselves being an
explanatory factor and in a further step see the differences in the nature of the instruments
deployed as being part of an evolutionary process This approach also has the merit of linking
a debate on instruments with broader considerations in the promotion of innovation and
competitiveness at a European level
The reference in section 1 above to the position of the countries covered by the case studies
and their innovation performance as characterised by the Innovation Union Scoreboard and
in further detail at a regional level by the Regional Innovation Scoreboard 2012 allows a
distinction to be made between countries and regions in four categories - lsquoleadersrsquo lsquofollowersrsquo
those with a moderate lsquoperformancersquo and those lsquocatching-uprsquo The respective positions of the
eight cases have been set out in section 1
The approach suggested at the seminar was essentially to explore the hypothesis that the
overall lsquoinnovationrsquo position of regionscountries determines the types of instrument
used their targeting and ultimately their relative performance It may be that the
categorisation help us explain the differences in the objectives set the instruments that are
appropriate and their targeting and that this in turn also influences the performance that can
be expected Regionscountries for instance that are in the lsquoless developedrsquo categories may
have to strengthen their basic support infrastructure and service provision and the
performance of the enterprise base and that of other important players such as knowledge
institutions public authorities etc The regionscountries in the more lsquoadvancedrsquo positions on
the other hand have to build on their strengths in order to maintain or enhance their position
by promoting more productive research and strengthening the links between the science base
and enterprises
21
This possible framework provides an interesting line of enquiry to be followed up in further
stages of the evaluation It does however also address other issues raised in the seminar
such as whether support should be directed to high-tech enterprises or as was argued in
relation to a number of the countries present the gains to be had from the improvement of
the performance of mid and low-tech firms are more relevant in certain stages of
development
22
3 NEXT STEP THEORY-BASED IMPACT EVALUATIONS
As the implementation of the evaluation study proceeds and the case studies (Task 3) are
being drafted the Team is in the course of identifying three policy instruments to be assessed
by as many theory-based impact evaluations as foreseen in Task 4 The three instruments
should be selected out of the long list of seven instruments suggested in the First Intermediate
Report and in consultation with the European Commission
The Team puts forward hereby a possible list of three policy instruments The main criteria
considered for their selection are
i The degree of representativeness of the typologies of policy instruments used in the 50
OPs as outlined in the First Intermediate Report the most significant categories of
policy instruments in terms of public expenditure are
Business creation and development ie instruments designed to stimulate
investments in the business sector without a predominant emphasis on RampD
and innovation
Support for RampD projects
Support for the development of technological and non-technological innovation
without any research and experimental development activities
ii The feasibility of a theory-based impact evaluation based on a survey of beneficiaries
which implies the availability of a sufficiently large number of beneficiaries and the
possibility to easily get their email contacts also with the help of the Managing
Authority or the implementing body the best option is to have at least some hundreds
beneficiary SMEs for each instrument
iii The importance of the policy instrument within the policy mix of the OP which ensures
the availability of a good amount of information resulting from the case study
regarding in particular its logic of intervention information about beneficiaries and
effectiveness
iv Preference is assigned to instruments on which no other surveys to beneficiaries have
been conducted so far in order not to put excessive burden on the same SMEs which
could undermine their willingness to contribute to our study
Based on these considerations the three policy instruments we propose for a theory-based
impact evaluation are presented in the table below It can be noticed that the list also ensures
geographical balance between Convergence and Competitiveness and Employment region as
well as Old and New Member States and regional and national OPs For the sake of
completeness and comparability for all the seven candidate instruments the pros and cons for
selecting each of them are detailed
23
Table 4 Comparison of the policy instruments and reasons for selection
Proposed for
selection
Type of policy
instrument
Selected policy
instrument
Operational Programme and
type of regioncountry
Descriptive information Specific reason for selection
for a TBIE Possible reasons for
rejection
YES Business creation and development
ldquoAid to investment projects by micro and small enterprisesrdquo
Regional OP Apulia (Italy) - Convergence region
- Old Member State
The instrument supports the purchase of machineries computer systems buildings construction works for enterprises in order to encourage the development of micro and small companies It benefitted more than 3 thousand SMEs For around 30 of beneficiaries grants have been combined with credit guarantees
- Very common type of SME support on which vast literature has been produced
- Very large number of beneficiary SMEs
- The strong relationship already established with local stakeholders and many SMEs would allow to easily and quickly test the surveyrsquos questionnaires before the launch of the three TBIEs
- For some SMEs opportunity to analyse the complimentary efforts of two forms of support (grants and a combination of grants and guarantees) and their respective effectiveness
- None
YES Support for RampD projects
ldquoGrants for Industrial Research and Experimental Developmentrdquo
Regional OP Castilla y Leon (Spain) - Competitiveness and Employment region
- Old Member State
The instrument encourages the development of RampD projects with the purpose of increasing the basis of number of innovative enterprises investment and personnel in RampD In total 759 projects of SMEs have been supported through grants 204 SMEs have conducted their project in collaboration with research organisations
- In analysing the achievement of beneficiary SMEs as well as the behavioural change opportunity to distinguish between SMEs which have realized their projects independently rather than in collaboration with a research centre
- According to the country expert among all the policy instruments of this OP this is the one for which it would be easier to get the contact details of beneficiary SMEs
- Possibility to get active collaboration by the regional authority ADE eg sending out an introductory letter to all
- None
24
Proposed for
selection
Type of policy
instrument
Selected policy
instrument
Operational Programme and
type of regioncountry
Descriptive information Specific reason for selection
for a TBIE Possible reasons for
rejection
SMEs mentioning that they will receive an invitation to a survey and inviting them to reply
YES Support for the development of technological and non-technological innovation
ldquoFinancing of individual projects for SMEsrdquo
National OP Poland Innovative Economy - Convergence country
- New Member State
The instrument provides grants to support the technological innovation of SMEs In particular it aims to stimulate the adoption of more risky and innovative solutions The instrument performed far better than expected 698 projects have been realised up to 2013 by approximately as many SMEs The instrument is delivered by a financial intermediary
- This instrument belongs to the OP which has provided the largest financial contribution to SMEs within the full sample of 50 OPs furthermore this is one of the core instrument of the programme as also reflected in the volume of public contribution which is among the highest of the OP (more than EUR 300 million fully targeted to SMEs)
- Opportunity to examine the role played by the intermediary according to the perceptions and opinions of beneficiary SMEs
- None
NO Support for RampD projects
ldquoRampD project grants for individual enterprisesrdquo
Germany regional OP Saxony - Convergence region
- Old Member State
The instrument provides grants to individual enterprises for supporting the implementation of RampD projects
- Evidence of achievement is already available since the instrument was subject of another evaluation study and enterprise survey a few years ago The TBIE would allow to better qualify the instrumentsrsquo achievements and the causal chain leading to the certain effects
- According to the country experts beneficiary SMEs may be reluctant to participate to another survey
- Less than 200 beneficiary SMEs a lower number as compared with other candidate policy instruments
- It is still uncertain whether it will be possible to get the email addresses of beneficiary SMEs
25
Proposed for
selection
Type of policy
instrument
Selected policy
instrument
Operational Programme and
type of regioncountry
Descriptive information Specific reason for selection
for a TBIE Possible reasons for
rejection
NO Support for the development of technological and non-technological innovation
ldquoSupport for technological upgrade - LEADER LTrdquo
Lithuania - Economic Growth - Convergence country
- New Member State
The instrument supports the increase of productivity in enterprises by supporting production technology upgrading The investment into the acquisition or upgrade of technologies and related internal engineering infrastructures are supported
- Email contacts particularly easy to be collected
- Result indicators are available due to an effective Structural Funds monitoring system and because the instrument was already subject of a previous evaluation study
- Very low number of beneficiary SMEs (69) which would make this instrument less suitable for launching an on-line survey as compared with other candidate instruments
NO Support for the development of technological and non-technological innovation
ldquoSupport for non-technological innovation - PROCESS LTrdquo
Lithuania - Economic Growth - Convergence country
- New Member State
The instrument aims to increase productivity in enterprises by implementing modern management methods and processes except of personnel management systems The purchase of external consulting services is supported in order to upgrade enterprises management processes
- Email contacts particularly easy to be collected
- Result indicators are available due to an effective Structural Funds monitoring system and because the instrument was already subject of a previous evaluation study
- The instrument is considered highly relevant by the target beneficiaries
- Very low number of beneficiary SMEs (119)
- As compared with other categories of policy instruments support for non-technological innovation is relatively less significant and representative of the typical forms of support provided to SMEs in the EU
NO Support for networking
ldquoInteraction on Innovationrdquo later merged with ldquoCluster relationshiprdquo
Denmark Innovation and Knowledge OP - Competitiveness and Employment country
- Old Member State
The policy instrument aims at analysing opportunities for creating clusters promoting networks and the formation of clusters of SMEs in particular as well as clusters of supplier networks for SMEs These objectives are pursued by providing grants to SMEs in partnership with universities (according to the triple helix model)
- Opportunity to better analyse the effects of a policy instrument on which a vast amount of literature has been produced
- Opportunity to dig into the collaboration mechanisms between SMEs and universities
- As compared with other categories of policy instruments support for networking is relatively less significant and representative of the typical forms of support provided to SMEs in the EU
- The number and characteristics of SMEs benefitting from this instrument remain unknown even after implementing the case
26
Proposed for
selection
Type of policy
instrument
Selected policy
instrument
Operational Programme and
type of regioncountry
Descriptive information Specific reason for selection
for a TBIE Possible reasons for
rejection
study The lack of data at policy instrument level prevents from identifying the beneficiary SMEs to which launching the on-line survey
27
4 ANNEX SEMINAR PARTICIPANTS
Name Description Organisation
DG REGIO Evaluation Unit
Rudolf Niessler Director DG REGIO B Policy
Veronica Gaffey Head of Evaluation Unit DG REGIO B2
Marielle Richeacute Evaluation Unit DG REGIO B2
Kai Stryczynski Deputy Head of Unit DG REGIO B2
Daniel Mouqueacute Evaluation Unit DG REGIO B2
CSIL Evaluation Team
Massimo Florio Evaluation team Director CSIL
Julie Pellegrin Evaluation team Project Manager CSIL
Silvia Vignetti Evaluation team CSIL
Emanuela Sirtori Evaluation team CSIL
Mike Coyne Evaluation team CSES
Malin Carlberg Evaluation team CSES
Anna-Maria Krarup Evaluation team CSES
Christian Koehler Case Study Saxony Centre for European Economic Research (ZEW)
Jaime del Castillo Case Study Castile amp Leon President INFYDE
Agnė Paliokaitė Case Study Lithuania Visionary Analytics
Elena Jarocinska Case Study Poland
Commission Officials
Katja Reppel Deputy Head of Unit Competence Centre Smart and Sustainable Growth
DG REGIO G1
Bernd Reichert Head of Unit H2020 SME EASME
Peter Wragg Head of Unit SME Access to Markets DG GROW F2
Jean David Malo Head of Unit SMEs Financial Instruments amp State Aid DG RTD B3
28
Istvan Nemeth Policy Officer - Enterprise Europe Network DG GROW F2
External Experts
Harvey Armstrong Professor Emeritus in the Department of Geography University of Sheffield
Robert Picciotto Visiting Professor Kings College London
Mark Sanders Professor University of Utrecht
Jiri Blazek Associate Professor Charles University Prague
Stakeholders ndash Case Studies
Adriana Agrimi Manager of RampI Policy Instrument Apulia Managing Authority
Kasper Westh Senior official Growth Forum Secretariat South Denmark
Simona Daukilaite
Deputy Head of the Economic Growth Operational Programme
Economic Growth OP Lithuania Managing Authority
Beatriz Casado Saenz Vice-General Director ADE (Development Agency Castile amp Leon)
Tomasz Kula Analysis and Evaluation Team Competitiveness and Innovation Department
Ministry of Infrastructure and Development (PL)
Representatives of other Work Packages
Terry Ward WP 1 Applica
Andreas Resch WP 3 Metis-Vienna
Anda Berenyi WP 4 KPMG
LEGAL NOTICE
This document has been prepared for the European Commission however it reflects the views only of the authors and the Commission cannot be held responsible for any use which may be made of the information
contained therein
More information on the European Union is available on the Internet (httpwwweuropaeu)
Luxembourg Publications Office of the European Union 2014
ISBN [number]
doi[number]
copy European Union 2015
Reproduction is authorised provided the source is acknowledged
Printed in [Country]
PRINTED ON ELEMENTAL CHLORINE-FREE BLEACHED PAPER (ECF)
PRINTED ON TOTALLY CHLORINE-FREE BLEACHED PAPER (TCF) PRINTED ON RECYCLED PAPER
PRINTED ON PROCESS CHLORINE-FREE RECYCLED PAPER (PCF)
Europe Direct is a service to help you find answers to your questions about the European Union
Freephone number ()
00 800 6 7 8 9 10 11
() The information given is free as are most calls (though some operators phone boxes or hotels may charge you)
10
Table 1 Eight Operational Programmes observed
OP
Cohesion
Policy
objective
EU 12
(ldquoNewrdquo
Member
States) or
EU15 (ldquoOld
Member
States)
NUTS level
Volume of EU
contribution for WP2
themes (EUR
million)
of EU contribution
for WP2 themes over
total contrib for
the OP
Total
population
of the area
covered by
the OP
GDP (PPS)
per capita
(average
2007-2011)
(EUR)
Total
number of
SMEs ()
Total
intramural
expenditure
in RampD
(GERD) ndash
2007-2011
average
Business
expenditure
in RampD
(BERD) ndash
2007-2011
average
1 Italy ndash Apulia Convergence EU15 NUTS 2 region
645 25 4 million 16640 218 thousand
(in 2011)
075 of
GDP
017 of
GDP
2 France ndash Icircle-
de-France
Competitiveness
and Employment EU15
NUTS 2
region 60 42 118 million 43360
727 thousand
(in 2011)
298 of
GDP
198 of
GDP
3 Germany -
Saxony Convergence EU15
NUTS 2
region 846 29 42 million 21040
140 thousand
(in 2012)
277 of
GDP
131 of
GDP
4 Denmark - Innovation and
knowledge
Competitiveness and Employment
EU15 NUTS 0 country
203
82
55 million 30660 213 thousand
(in 2013)
274 of
GDP
187 of
GDP
5 Spain ndash Castilla
y Leoacuten
Competitiveness
and Employment EU15
NUTS 2
region 269 36 255 million 23860
131 thousand
(in 2013)
109 of
GDP
061 of
GDP
6 Czech Republic - Business and
Innovation
Convergence EU12
NUTS 0
(except capital city
region)
2282 73 105 million 16960 928 thousand
(in 2013)
112 of
GDP
078 of
GDP
7 Poland - Innovative
Economy
Convergence EU12 NUTS 0 country
5287 62 38 million 14740 15 million (in
2013)
066 of
GDP
020 of
GDP
8 Lithuania -
Economic
Growth
Convergence EU12 NUTS 0
country 760 25 3 million 15440
115 thousand
(in 2013)
085 of
GDP
024 of
GDP
Source Eurostat and EC Performance Review 2014
Note () CSIL elaboration of National Statistical Office data (NACE sectors B-N excl K)
11
As shown in Table 1 the heterogeneity of areas covered by the case studies can be highlighted
also if considering the total intramural RampD expenditure or business RampD expenditure
According to the Global Innovation Index 2014 (Cornell University INSEAD and WIPO 2014)1
which combines innovation input measures and output measures the EU areas of the sample
cover a wide range or ranking categories (see Table 2 below)
Table 2 Global Innovation Index ranking ndash 2014
Global Innovation Index 2014 ranking
Top 10 11-20 21-30 31-40 40-60
UK Ireland Austria Cyprus Croatia
Sweden Germany France Italy Bulgaria
Finland Belgium Portugal Poland
Netherlands Estonia Latvia Greece
Denmark Malta Hungary Romania
Luxembourg Czech Republic
Slovakia
Spain Lithuania
Slovenia
Note The eight case studies are indicated by the asterisks
Source CSIL based on Cornell University INSEAD and WIPO (2014)
A more focused picture can be obtained using data from the Innovation Union Scoreboard
2012 covering the years 2007 ndash 2011 which ranks not only Member States but also regions in
terms of their performance against a set of indicators of innovation2 Specifically it places
countries and regions in four categories distinguishing between lsquoleadersrsquo lsquofollowersrsquo those
with a moderate lsquoperformancersquo and those lsquocatching-uprsquo Table 3 shows the position attributed
by the Scoreboard to the target area that have been examined in case studies
Table 3 Innovation Scoreboard Attribution
Leader Follower Moderate Modest
Catching-up
Denmark
Icircle-de-France
Saxony
Castile amp Leoacuten
Czech Republic
Poland
Apulia
Lithuania
Source European Innovation Scoreboard 2007 amp Regional Innovation Scoreboard 2012 Note Convergence region
Other regions Competitiveness amp Employment
According to the analysis of the SME-related policy instruments performed as part of Task 1
the eight OPs account for different intervention strategies as reflected in the mix of policy
instruments implemented (Figure 2) and the mode of delivery of such instruments (Figure 3)
Actually the sample includes some OPs whose primary aim is to promote business creation
and development (such as the Czech Spain Italian and Lithuanian OPs) others where public
expenditure is more concentrated on support for RampD projects (such as the German and the
1 Cornell University INSEAD and WIPO (2014) The Global Innovation Index 2014 The Human Factor In innovation
Fontainebleau Ithaca and Geneva 2 The Regional Innovation Scoreboard 2012 applies the same methodology as far as it was possible to Member State
and regions Because of data availability problems at a regional level it was not possible to exactly replicate the
methodology but the results obtained were checked for consistency with the national level scoreboard One other
change was that those regions appearing in the last category were referred to as having lsquomodestrsquo innovation
performance
12
French OPs) for increasing technological and non-technological innovation (Polish OP) One OP
is focused on increasing networking and knowledge and technology transfer (Danish OP)
Figure 2 Paid amount by type of policy instruments in the eight OPs
0
10
20
30
40
50
60
70
80
90
100
CZ - CzechRepublic
DE - Saxony DK - Denmark ES - Castilla yLeoacuten
FR - Icircle deFrance
IT - Apulia LT - Lithuania PL - Poland
Support for RampD projects
Support for improving capacities
Networking
Knowledge and technology transfer
Internationalisation and visibility
Infrastructures and related services
Generic access to finance
Development of technological or non-technological innovation
Creation of innovative companies
Business creation and development
Access and diffusion of ICT
Note paid amount refers to both ERDF and public funds paid to beneficiaries
The public support has been largely delivered in the form of grants in five out of the eight
considered OPs which is in line with the predominance of traditional direct support across the
entire EU There are however some exceptions in Lithuania and especially Poland more
often public support has been conveyed through packages of support usually combining
grants with consulting services Equity finance is quite relevant in Icircle-de-France Lithuania and
Saxony while some preference for using repayable financial support can be observed in Apulia
and the Czech Republic
13
Figure 3 Paid amount by mode of delivery in the eight OPs
0 10 20 30 40 50 60 70 80 90 100
CZ - CzechRepublic
DE - Saxony
DK - Denmark
ES - Castilla yLeoacuten
FR - Icircle de France
IT - Apulia
LT - Lithuania
PL - Poland
Equity finance + Repayable financial support
Consulting services + training + search of businesspartnersConsulting advice technical assistance
Consulting advice technical assistance +Information campaing eventsEquity finance
Grants
Grants + consulting services + training
Grants + Consulting advice technical assistance
Grants + Loans + Information campaigns
Grants + Provision of infrastructure and services +Consulting advice technical assistanceGrants + training
Information campaign events seminars
Provision of infrastructure and services +Consulting advice technical assistanceProvision of infrastructures
Repayable financial support
Source CSIL elaboration Note Paid amount refers to both ERDF and public contributions
14
The eight OPs have provided of support to around 48 thousand SMEs representing 20 of the
total number of beneficiary SMEs ascribable to the full sample of 50 OPs The number of
beneficiary SMEs is the highest for the OPs of Poland and Lithuania with more than 10
thousand and 12 thousand beneficiaries on the other hand the French OP has supported less
than 300 SMEs
Figure 4 Number of beneficiary SMEs of the eight OPs
00
10
20
30
40
50
60
70
80
90
100
0
2000
4000
6000
8000
10000
12000
14000
PL - Poland LT - Lithuania IT - Apulia ES - Castilla yLeoacuten
CZ - CzechRepublic
DE - Saxony FR - Icircle de France
Number of beneficiary SMEs Share of beneficiary SMEs over the total number of SMEs in the target area
Source CSIL elaboration Note Missing data for Denmark since the exact number of beneficiary SMEs is not available
In order to assess the intervention strategy of the OPs besides the absolute number of
beneficiaries it is particularly interesting to look at the distribution of beneficiaries according to
their size and technology intensity The analysis on the 50 OPs has revealed that the micro
enterprises generally represent the large majority of SMEs benefiting from ERDF support
(54) followed by small (30) and medium enterprises (16) The analysis has documented
the predominantly low technological intensity of beneficiary SMEs the majority of SMEs (53)
belong to sectors with a low share of business RampD expenditure over the value added by
sector However it is also noted that almost one quarter of all beneficiaries (24) has a
medium-high technological level Medium low-tech or high tech companies represent a lower
share of all the identified beneficiaries ie 14 and 9 respectively
The proportion of beneficiary SMEs in the eight OPs provides a more diversified picture (Figure
5 and 6) The Czech OP Enterprise and Innovation has directed the public support mainly to
small and medium size companies with a fair distribution in terms of technology intensity
Conversely the regional Apulia OP target micro enterprises characterised by either a low or a
medium-high technology intensity The Lithuanian OP has mostly supported low-tech
companies without significant differentiation in terms of size
15
Figure 5 Share of beneficiary SMEs by size class in the eight OPs
0
10
20
30
40
50
60
70
80
90
100
CZ - Czech Republic(Innov)
ES - Castilla y Leoacuten FR - Icircle de France IT - Apulia LT - Lithuania PL - Poland
Micro enterprises Small enterprises Medium enterprises
Source CSIL elaboration Note Missing data for Saxony and Denmark since the size class of beneficiary SMEs is not
available
Figure 6 Share of beneficiary SMEs by technology intensity level in the eight OPs
0
10
20
30
40
50
60
70
80
90
100
CZ - CzechRepublic
DE - Saxony ES - Castilla yLeoacuten
FR - Icircle deFrance
IT - Apulia LT - Lithuania PL - Poland
Low tech
Medium-low tech
Medium-high tech
High tech
Source CSIL elaboration Missing data for Denmark since the level of technological intensity cannot be estimated due
to missing data on sectoral disaggregation of beneficiary SMEs
Whether the characteristics of beneficiary SMEs simply mirror the specific characteristics of the
population of SMEs in the area covered by the OPs or result from different logics of
intervention underneath the OPs or from a mix of the two possible reasons is investigated in
the case studies
16
2 RESULTS OF THE SEMINAR
The aim of a ldquostakeholder seminarrdquo held on 29th April 2015 was to present the preliminary
findings and the main issues identified in other tasks undertaken for this Work Package and
especially those emerging from the eight case studies of Operational Programmes and to
discuss the policy implications and main lessons with Commission staff the evaluation team
members (and representatives of other Work Packages) academic experts and people
involved in the implementation of the Operational Programmes on the ground (see list of
participants in Annex) The following provides an overview setting out the main highlights in
the results from the presentations of the eight case studies
The seminar was organised in relation to three themes as follows
1) Targeting high vs low tech firms the case studies of Lithuania Saxony and Poland
2) Promoting widespread vs selective instruments the case studies of Apulia Castile amp
Leon and the Czech Republic
3) ERDF and the regional policy mix the case studies of Icircle-de-France and Denmark
Other issues that it was intended to highlight during the course of the discussion included
The issue of direct versus indirect support
Economic development versus anti-cyclical intervention
Supporting enabling organisations
Supporting individual enterprises as against partnerships
21 Targeting high vs low tech firms
In Lithuania the challenge was to build competitive advantage on the basis of labour-intensive
technologies The traditional sectors were in need of upgrading and the majority of the funds
were allocated to low tech companies In Saxony there was a demand driven approach but
also a realisation that low tech firms can improve competitiveness through cost reduction
Technologyprocess upgrading as subset to innovation can be justified but concentration of
spending on RampD has established Saxony as one of the German RampD powerhouses and
contributed to market access an increase in turnover and employment growth In Poland it
was thought that for countries that are not leading technological change the returns from
innovation are particularly high in low-tech manufacturing sectors but that as a country
approaches the technological frontier the policy should focus on RampD and innovative start-up
In discussion a central question was posed where does the investment pay most
22 Promoting widespread vs selective instruments
In Apulia the strategy was adjusted through re-programming to provide broad support to
SMEs to allow them to survive during the crisis and recession a dual approach was adopted
with selective support for SMEs with the internal capacity to manage innovation processes
including demand-side measures In Castile amp Leon the impact of the crisis was also intense
and broadly-based support was necessary but there were also efforts to build up the support
infrastructure and to provide in-depth support to enterprises identified as capable of innovation
and growth In the Czech Republic there was again both broadly-based and selective support
especially to address the ldquoBranch-plant syndromerdquo (where branches of international firms allow
little room for independent development by local suppliers) There was a focus on transferring
RampD results into production by stimulating demand for RampD results with 13 of the funds
going to support for innovation activities
17
23 ERDF and the regional policy mix
The last two cases are examples of OPs for areas which are relatively prosperous and where
RampD and innovation are relatively strong The ERDF budgets however were relatively small
In the Icircle-de-France (IdF) there was a pragmatic and demand-driven implementation
palliating perceived gaps in regional public support and enlarging the available financial
support targeting high growth high tech sectors appears to pay off in the IdF context In
Denmark there was a more strategic approach which was well integrated into national
strategy but with flexible implementation with strong stakeholder involvement in 6 regional
programmes There were interesting applications of the triple helix model amp successful cluster
developments
In all cases there was comment on the strength of monitoring and evaluation systems These
varied considerably from a relatively under-developed system in Apulia to a relatively strong
one in Icircle-de-France Denmark had organised a counterfactual analysis of enterprises
supported by the OP as against similar enterprises not receiving support
24 Synthesis
241 Diversity across themes
The first impression made by the presentations was the diversity of the interventions in the
eight cases There are several dimensions to these differences beginning with the context in
which the OP was implemented where there were differences relating to
The size of the regionsMember States targeted The absolute and relative size of the Programmes within the regions and countries in which
they operated and the effects that could reasonably be expected from them The size and structure of the SME population its sectoral distribution and its capacities
and assets The economic context within which the OPs operated and especially the way that the
economic crisis impacted on each area over the course of the programming period The endowment of SME and innovation support infrastructure and culture determining the
base on which the OPs could build
In fact the detailed investigations have confirmed the importance of the specific context in
which each OP was conceived and implemented for the determination of the nature of the
policy instruments used and the results to be expected from them This context is important
for any fair assessment of the achievements or otherwise of each Programme
Nonetheless when it came to the processes used to promote SMEs and innovation the
differences could often be considered as involving variations around a series of central themes
In all the cases considered there was a strong emphasis on promoting innovation as a
central objective yet this was done in a variety of ways and had differing relationships with
the objective of SME promotion In a number of cases support for SMEs was itself very much
seen as part of this process of encouraging innovation including in the case of the Icircle-de-
France where it involved encouraging new forms of enterprise dedicated to pursuing social
innovation In other cases however there was a clear commitment to provide general support
to SMEs and especially after the extent of the economic crisis became apparent some re-
programming to ensure this
Consequently targeting policies were not as clear cut as might have been expected There
were cases where SMEs were targeted directly ndash Apulia and Castile amp Leon but even here
there was also an element of trying to ensure that enterprises that were capable of benefitting
from support were the one to receive it while elsewhere a subtle lsquosoft targetingrsquo was more
evident where the instruments were shaped to achieve a certain selectivity not by defining
exclusions but by requiring for instance a commitment to change and growth on the part of
18
participants In Denmark for example those encouraged to become members of cluster
organisations had to be interested in developing their growth potential if their participation
was to serve any purpose This in effect led to a self-exclusion by those not willing to play
along with the support offered
The nature of the instruments used to implement OPs were shaped by a number of factors
Just as the objectives of an OP must take into account a large variety of details relating to the
circumstances of the relevant region or country so the precise characteristics of the
instruments to be applied must reflect not only the particular purposes for which they are to be
used the nature of the target group to be addressed and the economic and social
circumstances of the area concerned but the legacy of past interventions as well in the form
of existing support infrastructure and the capabilities developed in preceding periods In other
words support instruments are built on past actions both for positive reasons (exploiting
existing assets) but also because of their familiarity or a certain institutional inertia In any
event the large variety of circumstances in which the particular features of instruments are
determined gives rise to a wide array of actual policy instruments The review of 50 OPs
conducted as part of the evaluation identified 648 different instruments
This large variety of specific instruments however is mainly accounted for in that they are
often designed as elaborations of well-established approaches but addressing particular needs
and circumstances and also a variety of potential targets So building capacities and
competences can be undertaken for enterprises and their managers of varying degrees of
sophistication and background knowledge and can relate to a variety of matters from technical
issues to general management marketing exporting or more specialised issues such as IP
management The process of capacity building can therefore take many forms
The extent of the provision of access to finance is complicated by the question of whether or
not the provision of direct grants counts as part of this function Some substantial sums were
provided in this form by some of the OPs However generally an expected move towards the
provision of more indirect finance ndash loans and equity through intermediaries - was not as
marked as may have been anticipated General access to finance measures (equity
guarantees and reduction of credit interest) accounted for 38 of the funds allocated by the
Lithuanian OP and repayable financial support for 26 of the Apulian OP equity finance 14
in the case of Icircle-de-France 23 for loans and 35 for equity finance in that of Saxony The
other OPs had rather small amounts devoted to indirect financial instruments if any at all An
explanation offered of the small allocations to these instruments in some OPs was that the
crisis discouraged experimentation in this area that it is relatively difficult and expensive to
manage financial instruments and outside the experience of most Managing Authorities that
relatively large sums are necessary to make any appreciable impact and that results can often
take a long time to materialise
There were considerable differences in the extent to which there was provision of direct
support to enterprises In Saxony over 90 of the funds were in the form of grants and in
Icircle-de-France and in Apulia grants largely paid directly to enterprises accounted for 56 and
41 respectively of the funds allocated In Denmark by contrast no grants were paid directly
to enterprises unless they were partners in projects receiving support for developing clusters
or relationships with universities or in a small number of cases where they received funds to
hire private sector business advisers
It is useful to distinguish between different types of direct support In Poland and in Saxony a
large proportion of the direct support was for investments in innovative undertakings In
Apulia although the main part of support went to individual enterprises or SMEs it was more
evenly split between support for investment (by micro and small firms) and investment in
research In Icircle-de-France the weight of the direct support was for research projects
19
It is also interesting that analysis of a wider group of 50 OPs shows that manufacturing firms
received 33 of support ndash much greater than their share in the economy as a whole It also
showed that more than 50 of support has been directed to low-tech firms
Different forms of business support were available across the OPs including access to public
and private sources of information and advice incubator services and assistance for exporters
Castile amp Leon targeted the improvement of management capacities and this approach was
implicit in a number of other OPs
Approaches to support for innovation also took different forms Overall in the broader range
of OPs examined 24 of support was for RampD and a similar amount for business development
and direct support for RampD in collaborative and non-collaborative projects was a significant
feature of the OPs for Apulia Castile amp Leon Icircle-de-France Lithuania Poland and Saxony but
not in the Czech Republic and Denmark where FP7 was thought to be the appropriate vehicle
In Saxony strengthening the research base of enterprises in the local economy and promoting
the exploitation of knowledge was central to the OP so that the majority of the funds were
provided for investment in fixed capital and in supporting RampD This implied a certain targeting
within the SME population In Icircle-de-France the bulk of the support also went to research
projects and support for technology transfer and incubators though there was also support for
SME creation in distressed areas for access to finance and for social innovation projects In
Denmark the focus was more on promoting clusters and encouraging links between enterprises
and science institutions
In some cases however the picture was more mixed In Lithuania where 38 of funding went
to access to finance measures a further 30 to up-grading technology and processes but
there was also direct support for RampD and RampD infrastructure and support for networking and
clusters promoting innovation Similarly in Apulia there was support for research by SMEs
and measures to promote consulting services for technical innovation regional innovation
partnerships and aid for access to ICT alongside aid to investment in micro and small firms
and credit guarantees and support for tourism
Knowledge transfer also featured in many of the OPs Building relationships between
knowledge institutions and enterprises was an important objective for Denmark as part of
developing regional innovation capacities though the results were mixed at least in part
because of an unresponsive culture in certain universities In other cases these relationships
were promoted by collaborative research projects (Icircle-de-France Saxony) and in the case of
Lithuania by the use of vouchers Overall however it is perhaps surprising that building
relationships between knowledge institutions and enterprises did not have a higher profile
The development of clusters was an instrument used in the Czech Republic Lithuania and
Denmark where in some regions it absorbed a large proportion of the available funds and
where the focus was on emerging sectors such as clean technology energy health and welfare
and the experience economy Cluster support in this case consisted of a relatively complex set
of services provided for cluster members In the Czech Republic and Lithuania cluster
development was itself less developed and related to low-tech sectors with potential for
innovation and growth
Underlying these differences between Programmes there were variations in the approach to
governance This has become an important issue for all of the regions and countries
considered In part this is linked to the aspiration at least to establish transparent evidence-
based policy processes which has brought in the development of monitoring and evaluation
systems but there are more central elements of governance to do with who is involved in
decision-making and how decisions are taken that are also part of the picture The
development of stakeholder involvement in strategy formation in the setting of priorities and
even in elements of implementation was apparent in many of the cases throughout the
20
programming period In Denmark the whole (national and EU) strategy was based from the
beginning on a national consensus established through political and open public debates and
implemented through regional bodies with a strong stakeholder representation In Apulia a
self-evaluation exercise led to new departures in response to the crisis
There were however other issues of governance alluded to in the seminar relating to but the
alignment of the OP with national strategies and the organisational mechanisms adopted to
implement the strategy chosen by each OP These can have considerable influence on the
degree to which the Managing Authority can directly influence the implementation
mechanisms
Finally account must be taken of the differential impacts of the recession In Apulia and
Castile amp Leon there was formal reprogramming largely as a result of the recession and
changes in the instrument set utilised To a certain extent this meant a scaling down of
ambitions when for many enterprises it was a matter of survival rather than developing new
ventures Even here though the story does not always move in the same direction In the case
of Apulia for instance while it was necessary in part to refocus support on the broad range of
enterprises suffering from the recession at the same time the crisis acted as a stimulus to new
thinking after the conduct of a self-evaluation exercise
242 A common framework
Overall it can be seen that within the diversity shown by the eight cases there are at least a
number of common themes which are belong addressed in different ways The question does
arise however of whether it might be possible to go further to offer an explanation of the
diversity
External experts at the seminar advised that a theoretical framework should be sought to
make greater sense of the quantitative material and provide the basis for a more deliberative
judgement on the effectiveness of policy and how support funds can be best spent
One possibility is to take the differing circumstances of the OPs as themselves being an
explanatory factor and in a further step see the differences in the nature of the instruments
deployed as being part of an evolutionary process This approach also has the merit of linking
a debate on instruments with broader considerations in the promotion of innovation and
competitiveness at a European level
The reference in section 1 above to the position of the countries covered by the case studies
and their innovation performance as characterised by the Innovation Union Scoreboard and
in further detail at a regional level by the Regional Innovation Scoreboard 2012 allows a
distinction to be made between countries and regions in four categories - lsquoleadersrsquo lsquofollowersrsquo
those with a moderate lsquoperformancersquo and those lsquocatching-uprsquo The respective positions of the
eight cases have been set out in section 1
The approach suggested at the seminar was essentially to explore the hypothesis that the
overall lsquoinnovationrsquo position of regionscountries determines the types of instrument
used their targeting and ultimately their relative performance It may be that the
categorisation help us explain the differences in the objectives set the instruments that are
appropriate and their targeting and that this in turn also influences the performance that can
be expected Regionscountries for instance that are in the lsquoless developedrsquo categories may
have to strengthen their basic support infrastructure and service provision and the
performance of the enterprise base and that of other important players such as knowledge
institutions public authorities etc The regionscountries in the more lsquoadvancedrsquo positions on
the other hand have to build on their strengths in order to maintain or enhance their position
by promoting more productive research and strengthening the links between the science base
and enterprises
21
This possible framework provides an interesting line of enquiry to be followed up in further
stages of the evaluation It does however also address other issues raised in the seminar
such as whether support should be directed to high-tech enterprises or as was argued in
relation to a number of the countries present the gains to be had from the improvement of
the performance of mid and low-tech firms are more relevant in certain stages of
development
22
3 NEXT STEP THEORY-BASED IMPACT EVALUATIONS
As the implementation of the evaluation study proceeds and the case studies (Task 3) are
being drafted the Team is in the course of identifying three policy instruments to be assessed
by as many theory-based impact evaluations as foreseen in Task 4 The three instruments
should be selected out of the long list of seven instruments suggested in the First Intermediate
Report and in consultation with the European Commission
The Team puts forward hereby a possible list of three policy instruments The main criteria
considered for their selection are
i The degree of representativeness of the typologies of policy instruments used in the 50
OPs as outlined in the First Intermediate Report the most significant categories of
policy instruments in terms of public expenditure are
Business creation and development ie instruments designed to stimulate
investments in the business sector without a predominant emphasis on RampD
and innovation
Support for RampD projects
Support for the development of technological and non-technological innovation
without any research and experimental development activities
ii The feasibility of a theory-based impact evaluation based on a survey of beneficiaries
which implies the availability of a sufficiently large number of beneficiaries and the
possibility to easily get their email contacts also with the help of the Managing
Authority or the implementing body the best option is to have at least some hundreds
beneficiary SMEs for each instrument
iii The importance of the policy instrument within the policy mix of the OP which ensures
the availability of a good amount of information resulting from the case study
regarding in particular its logic of intervention information about beneficiaries and
effectiveness
iv Preference is assigned to instruments on which no other surveys to beneficiaries have
been conducted so far in order not to put excessive burden on the same SMEs which
could undermine their willingness to contribute to our study
Based on these considerations the three policy instruments we propose for a theory-based
impact evaluation are presented in the table below It can be noticed that the list also ensures
geographical balance between Convergence and Competitiveness and Employment region as
well as Old and New Member States and regional and national OPs For the sake of
completeness and comparability for all the seven candidate instruments the pros and cons for
selecting each of them are detailed
23
Table 4 Comparison of the policy instruments and reasons for selection
Proposed for
selection
Type of policy
instrument
Selected policy
instrument
Operational Programme and
type of regioncountry
Descriptive information Specific reason for selection
for a TBIE Possible reasons for
rejection
YES Business creation and development
ldquoAid to investment projects by micro and small enterprisesrdquo
Regional OP Apulia (Italy) - Convergence region
- Old Member State
The instrument supports the purchase of machineries computer systems buildings construction works for enterprises in order to encourage the development of micro and small companies It benefitted more than 3 thousand SMEs For around 30 of beneficiaries grants have been combined with credit guarantees
- Very common type of SME support on which vast literature has been produced
- Very large number of beneficiary SMEs
- The strong relationship already established with local stakeholders and many SMEs would allow to easily and quickly test the surveyrsquos questionnaires before the launch of the three TBIEs
- For some SMEs opportunity to analyse the complimentary efforts of two forms of support (grants and a combination of grants and guarantees) and their respective effectiveness
- None
YES Support for RampD projects
ldquoGrants for Industrial Research and Experimental Developmentrdquo
Regional OP Castilla y Leon (Spain) - Competitiveness and Employment region
- Old Member State
The instrument encourages the development of RampD projects with the purpose of increasing the basis of number of innovative enterprises investment and personnel in RampD In total 759 projects of SMEs have been supported through grants 204 SMEs have conducted their project in collaboration with research organisations
- In analysing the achievement of beneficiary SMEs as well as the behavioural change opportunity to distinguish between SMEs which have realized their projects independently rather than in collaboration with a research centre
- According to the country expert among all the policy instruments of this OP this is the one for which it would be easier to get the contact details of beneficiary SMEs
- Possibility to get active collaboration by the regional authority ADE eg sending out an introductory letter to all
- None
24
Proposed for
selection
Type of policy
instrument
Selected policy
instrument
Operational Programme and
type of regioncountry
Descriptive information Specific reason for selection
for a TBIE Possible reasons for
rejection
SMEs mentioning that they will receive an invitation to a survey and inviting them to reply
YES Support for the development of technological and non-technological innovation
ldquoFinancing of individual projects for SMEsrdquo
National OP Poland Innovative Economy - Convergence country
- New Member State
The instrument provides grants to support the technological innovation of SMEs In particular it aims to stimulate the adoption of more risky and innovative solutions The instrument performed far better than expected 698 projects have been realised up to 2013 by approximately as many SMEs The instrument is delivered by a financial intermediary
- This instrument belongs to the OP which has provided the largest financial contribution to SMEs within the full sample of 50 OPs furthermore this is one of the core instrument of the programme as also reflected in the volume of public contribution which is among the highest of the OP (more than EUR 300 million fully targeted to SMEs)
- Opportunity to examine the role played by the intermediary according to the perceptions and opinions of beneficiary SMEs
- None
NO Support for RampD projects
ldquoRampD project grants for individual enterprisesrdquo
Germany regional OP Saxony - Convergence region
- Old Member State
The instrument provides grants to individual enterprises for supporting the implementation of RampD projects
- Evidence of achievement is already available since the instrument was subject of another evaluation study and enterprise survey a few years ago The TBIE would allow to better qualify the instrumentsrsquo achievements and the causal chain leading to the certain effects
- According to the country experts beneficiary SMEs may be reluctant to participate to another survey
- Less than 200 beneficiary SMEs a lower number as compared with other candidate policy instruments
- It is still uncertain whether it will be possible to get the email addresses of beneficiary SMEs
25
Proposed for
selection
Type of policy
instrument
Selected policy
instrument
Operational Programme and
type of regioncountry
Descriptive information Specific reason for selection
for a TBIE Possible reasons for
rejection
NO Support for the development of technological and non-technological innovation
ldquoSupport for technological upgrade - LEADER LTrdquo
Lithuania - Economic Growth - Convergence country
- New Member State
The instrument supports the increase of productivity in enterprises by supporting production technology upgrading The investment into the acquisition or upgrade of technologies and related internal engineering infrastructures are supported
- Email contacts particularly easy to be collected
- Result indicators are available due to an effective Structural Funds monitoring system and because the instrument was already subject of a previous evaluation study
- Very low number of beneficiary SMEs (69) which would make this instrument less suitable for launching an on-line survey as compared with other candidate instruments
NO Support for the development of technological and non-technological innovation
ldquoSupport for non-technological innovation - PROCESS LTrdquo
Lithuania - Economic Growth - Convergence country
- New Member State
The instrument aims to increase productivity in enterprises by implementing modern management methods and processes except of personnel management systems The purchase of external consulting services is supported in order to upgrade enterprises management processes
- Email contacts particularly easy to be collected
- Result indicators are available due to an effective Structural Funds monitoring system and because the instrument was already subject of a previous evaluation study
- The instrument is considered highly relevant by the target beneficiaries
- Very low number of beneficiary SMEs (119)
- As compared with other categories of policy instruments support for non-technological innovation is relatively less significant and representative of the typical forms of support provided to SMEs in the EU
NO Support for networking
ldquoInteraction on Innovationrdquo later merged with ldquoCluster relationshiprdquo
Denmark Innovation and Knowledge OP - Competitiveness and Employment country
- Old Member State
The policy instrument aims at analysing opportunities for creating clusters promoting networks and the formation of clusters of SMEs in particular as well as clusters of supplier networks for SMEs These objectives are pursued by providing grants to SMEs in partnership with universities (according to the triple helix model)
- Opportunity to better analyse the effects of a policy instrument on which a vast amount of literature has been produced
- Opportunity to dig into the collaboration mechanisms between SMEs and universities
- As compared with other categories of policy instruments support for networking is relatively less significant and representative of the typical forms of support provided to SMEs in the EU
- The number and characteristics of SMEs benefitting from this instrument remain unknown even after implementing the case
26
Proposed for
selection
Type of policy
instrument
Selected policy
instrument
Operational Programme and
type of regioncountry
Descriptive information Specific reason for selection
for a TBIE Possible reasons for
rejection
study The lack of data at policy instrument level prevents from identifying the beneficiary SMEs to which launching the on-line survey
27
4 ANNEX SEMINAR PARTICIPANTS
Name Description Organisation
DG REGIO Evaluation Unit
Rudolf Niessler Director DG REGIO B Policy
Veronica Gaffey Head of Evaluation Unit DG REGIO B2
Marielle Richeacute Evaluation Unit DG REGIO B2
Kai Stryczynski Deputy Head of Unit DG REGIO B2
Daniel Mouqueacute Evaluation Unit DG REGIO B2
CSIL Evaluation Team
Massimo Florio Evaluation team Director CSIL
Julie Pellegrin Evaluation team Project Manager CSIL
Silvia Vignetti Evaluation team CSIL
Emanuela Sirtori Evaluation team CSIL
Mike Coyne Evaluation team CSES
Malin Carlberg Evaluation team CSES
Anna-Maria Krarup Evaluation team CSES
Christian Koehler Case Study Saxony Centre for European Economic Research (ZEW)
Jaime del Castillo Case Study Castile amp Leon President INFYDE
Agnė Paliokaitė Case Study Lithuania Visionary Analytics
Elena Jarocinska Case Study Poland
Commission Officials
Katja Reppel Deputy Head of Unit Competence Centre Smart and Sustainable Growth
DG REGIO G1
Bernd Reichert Head of Unit H2020 SME EASME
Peter Wragg Head of Unit SME Access to Markets DG GROW F2
Jean David Malo Head of Unit SMEs Financial Instruments amp State Aid DG RTD B3
28
Istvan Nemeth Policy Officer - Enterprise Europe Network DG GROW F2
External Experts
Harvey Armstrong Professor Emeritus in the Department of Geography University of Sheffield
Robert Picciotto Visiting Professor Kings College London
Mark Sanders Professor University of Utrecht
Jiri Blazek Associate Professor Charles University Prague
Stakeholders ndash Case Studies
Adriana Agrimi Manager of RampI Policy Instrument Apulia Managing Authority
Kasper Westh Senior official Growth Forum Secretariat South Denmark
Simona Daukilaite
Deputy Head of the Economic Growth Operational Programme
Economic Growth OP Lithuania Managing Authority
Beatriz Casado Saenz Vice-General Director ADE (Development Agency Castile amp Leon)
Tomasz Kula Analysis and Evaluation Team Competitiveness and Innovation Department
Ministry of Infrastructure and Development (PL)
Representatives of other Work Packages
Terry Ward WP 1 Applica
Andreas Resch WP 3 Metis-Vienna
Anda Berenyi WP 4 KPMG
LEGAL NOTICE
This document has been prepared for the European Commission however it reflects the views only of the authors and the Commission cannot be held responsible for any use which may be made of the information
contained therein
More information on the European Union is available on the Internet (httpwwweuropaeu)
Luxembourg Publications Office of the European Union 2014
ISBN [number]
doi[number]
copy European Union 2015
Reproduction is authorised provided the source is acknowledged
Printed in [Country]
PRINTED ON ELEMENTAL CHLORINE-FREE BLEACHED PAPER (ECF)
PRINTED ON TOTALLY CHLORINE-FREE BLEACHED PAPER (TCF) PRINTED ON RECYCLED PAPER
PRINTED ON PROCESS CHLORINE-FREE RECYCLED PAPER (PCF)
Europe Direct is a service to help you find answers to your questions about the European Union
Freephone number ()
00 800 6 7 8 9 10 11
() The information given is free as are most calls (though some operators phone boxes or hotels may charge you)
11
As shown in Table 1 the heterogeneity of areas covered by the case studies can be highlighted
also if considering the total intramural RampD expenditure or business RampD expenditure
According to the Global Innovation Index 2014 (Cornell University INSEAD and WIPO 2014)1
which combines innovation input measures and output measures the EU areas of the sample
cover a wide range or ranking categories (see Table 2 below)
Table 2 Global Innovation Index ranking ndash 2014
Global Innovation Index 2014 ranking
Top 10 11-20 21-30 31-40 40-60
UK Ireland Austria Cyprus Croatia
Sweden Germany France Italy Bulgaria
Finland Belgium Portugal Poland
Netherlands Estonia Latvia Greece
Denmark Malta Hungary Romania
Luxembourg Czech Republic
Slovakia
Spain Lithuania
Slovenia
Note The eight case studies are indicated by the asterisks
Source CSIL based on Cornell University INSEAD and WIPO (2014)
A more focused picture can be obtained using data from the Innovation Union Scoreboard
2012 covering the years 2007 ndash 2011 which ranks not only Member States but also regions in
terms of their performance against a set of indicators of innovation2 Specifically it places
countries and regions in four categories distinguishing between lsquoleadersrsquo lsquofollowersrsquo those
with a moderate lsquoperformancersquo and those lsquocatching-uprsquo Table 3 shows the position attributed
by the Scoreboard to the target area that have been examined in case studies
Table 3 Innovation Scoreboard Attribution
Leader Follower Moderate Modest
Catching-up
Denmark
Icircle-de-France
Saxony
Castile amp Leoacuten
Czech Republic
Poland
Apulia
Lithuania
Source European Innovation Scoreboard 2007 amp Regional Innovation Scoreboard 2012 Note Convergence region
Other regions Competitiveness amp Employment
According to the analysis of the SME-related policy instruments performed as part of Task 1
the eight OPs account for different intervention strategies as reflected in the mix of policy
instruments implemented (Figure 2) and the mode of delivery of such instruments (Figure 3)
Actually the sample includes some OPs whose primary aim is to promote business creation
and development (such as the Czech Spain Italian and Lithuanian OPs) others where public
expenditure is more concentrated on support for RampD projects (such as the German and the
1 Cornell University INSEAD and WIPO (2014) The Global Innovation Index 2014 The Human Factor In innovation
Fontainebleau Ithaca and Geneva 2 The Regional Innovation Scoreboard 2012 applies the same methodology as far as it was possible to Member State
and regions Because of data availability problems at a regional level it was not possible to exactly replicate the
methodology but the results obtained were checked for consistency with the national level scoreboard One other
change was that those regions appearing in the last category were referred to as having lsquomodestrsquo innovation
performance
12
French OPs) for increasing technological and non-technological innovation (Polish OP) One OP
is focused on increasing networking and knowledge and technology transfer (Danish OP)
Figure 2 Paid amount by type of policy instruments in the eight OPs
0
10
20
30
40
50
60
70
80
90
100
CZ - CzechRepublic
DE - Saxony DK - Denmark ES - Castilla yLeoacuten
FR - Icircle deFrance
IT - Apulia LT - Lithuania PL - Poland
Support for RampD projects
Support for improving capacities
Networking
Knowledge and technology transfer
Internationalisation and visibility
Infrastructures and related services
Generic access to finance
Development of technological or non-technological innovation
Creation of innovative companies
Business creation and development
Access and diffusion of ICT
Note paid amount refers to both ERDF and public funds paid to beneficiaries
The public support has been largely delivered in the form of grants in five out of the eight
considered OPs which is in line with the predominance of traditional direct support across the
entire EU There are however some exceptions in Lithuania and especially Poland more
often public support has been conveyed through packages of support usually combining
grants with consulting services Equity finance is quite relevant in Icircle-de-France Lithuania and
Saxony while some preference for using repayable financial support can be observed in Apulia
and the Czech Republic
13
Figure 3 Paid amount by mode of delivery in the eight OPs
0 10 20 30 40 50 60 70 80 90 100
CZ - CzechRepublic
DE - Saxony
DK - Denmark
ES - Castilla yLeoacuten
FR - Icircle de France
IT - Apulia
LT - Lithuania
PL - Poland
Equity finance + Repayable financial support
Consulting services + training + search of businesspartnersConsulting advice technical assistance
Consulting advice technical assistance +Information campaing eventsEquity finance
Grants
Grants + consulting services + training
Grants + Consulting advice technical assistance
Grants + Loans + Information campaigns
Grants + Provision of infrastructure and services +Consulting advice technical assistanceGrants + training
Information campaign events seminars
Provision of infrastructure and services +Consulting advice technical assistanceProvision of infrastructures
Repayable financial support
Source CSIL elaboration Note Paid amount refers to both ERDF and public contributions
14
The eight OPs have provided of support to around 48 thousand SMEs representing 20 of the
total number of beneficiary SMEs ascribable to the full sample of 50 OPs The number of
beneficiary SMEs is the highest for the OPs of Poland and Lithuania with more than 10
thousand and 12 thousand beneficiaries on the other hand the French OP has supported less
than 300 SMEs
Figure 4 Number of beneficiary SMEs of the eight OPs
00
10
20
30
40
50
60
70
80
90
100
0
2000
4000
6000
8000
10000
12000
14000
PL - Poland LT - Lithuania IT - Apulia ES - Castilla yLeoacuten
CZ - CzechRepublic
DE - Saxony FR - Icircle de France
Number of beneficiary SMEs Share of beneficiary SMEs over the total number of SMEs in the target area
Source CSIL elaboration Note Missing data for Denmark since the exact number of beneficiary SMEs is not available
In order to assess the intervention strategy of the OPs besides the absolute number of
beneficiaries it is particularly interesting to look at the distribution of beneficiaries according to
their size and technology intensity The analysis on the 50 OPs has revealed that the micro
enterprises generally represent the large majority of SMEs benefiting from ERDF support
(54) followed by small (30) and medium enterprises (16) The analysis has documented
the predominantly low technological intensity of beneficiary SMEs the majority of SMEs (53)
belong to sectors with a low share of business RampD expenditure over the value added by
sector However it is also noted that almost one quarter of all beneficiaries (24) has a
medium-high technological level Medium low-tech or high tech companies represent a lower
share of all the identified beneficiaries ie 14 and 9 respectively
The proportion of beneficiary SMEs in the eight OPs provides a more diversified picture (Figure
5 and 6) The Czech OP Enterprise and Innovation has directed the public support mainly to
small and medium size companies with a fair distribution in terms of technology intensity
Conversely the regional Apulia OP target micro enterprises characterised by either a low or a
medium-high technology intensity The Lithuanian OP has mostly supported low-tech
companies without significant differentiation in terms of size
15
Figure 5 Share of beneficiary SMEs by size class in the eight OPs
0
10
20
30
40
50
60
70
80
90
100
CZ - Czech Republic(Innov)
ES - Castilla y Leoacuten FR - Icircle de France IT - Apulia LT - Lithuania PL - Poland
Micro enterprises Small enterprises Medium enterprises
Source CSIL elaboration Note Missing data for Saxony and Denmark since the size class of beneficiary SMEs is not
available
Figure 6 Share of beneficiary SMEs by technology intensity level in the eight OPs
0
10
20
30
40
50
60
70
80
90
100
CZ - CzechRepublic
DE - Saxony ES - Castilla yLeoacuten
FR - Icircle deFrance
IT - Apulia LT - Lithuania PL - Poland
Low tech
Medium-low tech
Medium-high tech
High tech
Source CSIL elaboration Missing data for Denmark since the level of technological intensity cannot be estimated due
to missing data on sectoral disaggregation of beneficiary SMEs
Whether the characteristics of beneficiary SMEs simply mirror the specific characteristics of the
population of SMEs in the area covered by the OPs or result from different logics of
intervention underneath the OPs or from a mix of the two possible reasons is investigated in
the case studies
16
2 RESULTS OF THE SEMINAR
The aim of a ldquostakeholder seminarrdquo held on 29th April 2015 was to present the preliminary
findings and the main issues identified in other tasks undertaken for this Work Package and
especially those emerging from the eight case studies of Operational Programmes and to
discuss the policy implications and main lessons with Commission staff the evaluation team
members (and representatives of other Work Packages) academic experts and people
involved in the implementation of the Operational Programmes on the ground (see list of
participants in Annex) The following provides an overview setting out the main highlights in
the results from the presentations of the eight case studies
The seminar was organised in relation to three themes as follows
1) Targeting high vs low tech firms the case studies of Lithuania Saxony and Poland
2) Promoting widespread vs selective instruments the case studies of Apulia Castile amp
Leon and the Czech Republic
3) ERDF and the regional policy mix the case studies of Icircle-de-France and Denmark
Other issues that it was intended to highlight during the course of the discussion included
The issue of direct versus indirect support
Economic development versus anti-cyclical intervention
Supporting enabling organisations
Supporting individual enterprises as against partnerships
21 Targeting high vs low tech firms
In Lithuania the challenge was to build competitive advantage on the basis of labour-intensive
technologies The traditional sectors were in need of upgrading and the majority of the funds
were allocated to low tech companies In Saxony there was a demand driven approach but
also a realisation that low tech firms can improve competitiveness through cost reduction
Technologyprocess upgrading as subset to innovation can be justified but concentration of
spending on RampD has established Saxony as one of the German RampD powerhouses and
contributed to market access an increase in turnover and employment growth In Poland it
was thought that for countries that are not leading technological change the returns from
innovation are particularly high in low-tech manufacturing sectors but that as a country
approaches the technological frontier the policy should focus on RampD and innovative start-up
In discussion a central question was posed where does the investment pay most
22 Promoting widespread vs selective instruments
In Apulia the strategy was adjusted through re-programming to provide broad support to
SMEs to allow them to survive during the crisis and recession a dual approach was adopted
with selective support for SMEs with the internal capacity to manage innovation processes
including demand-side measures In Castile amp Leon the impact of the crisis was also intense
and broadly-based support was necessary but there were also efforts to build up the support
infrastructure and to provide in-depth support to enterprises identified as capable of innovation
and growth In the Czech Republic there was again both broadly-based and selective support
especially to address the ldquoBranch-plant syndromerdquo (where branches of international firms allow
little room for independent development by local suppliers) There was a focus on transferring
RampD results into production by stimulating demand for RampD results with 13 of the funds
going to support for innovation activities
17
23 ERDF and the regional policy mix
The last two cases are examples of OPs for areas which are relatively prosperous and where
RampD and innovation are relatively strong The ERDF budgets however were relatively small
In the Icircle-de-France (IdF) there was a pragmatic and demand-driven implementation
palliating perceived gaps in regional public support and enlarging the available financial
support targeting high growth high tech sectors appears to pay off in the IdF context In
Denmark there was a more strategic approach which was well integrated into national
strategy but with flexible implementation with strong stakeholder involvement in 6 regional
programmes There were interesting applications of the triple helix model amp successful cluster
developments
In all cases there was comment on the strength of monitoring and evaluation systems These
varied considerably from a relatively under-developed system in Apulia to a relatively strong
one in Icircle-de-France Denmark had organised a counterfactual analysis of enterprises
supported by the OP as against similar enterprises not receiving support
24 Synthesis
241 Diversity across themes
The first impression made by the presentations was the diversity of the interventions in the
eight cases There are several dimensions to these differences beginning with the context in
which the OP was implemented where there were differences relating to
The size of the regionsMember States targeted The absolute and relative size of the Programmes within the regions and countries in which
they operated and the effects that could reasonably be expected from them The size and structure of the SME population its sectoral distribution and its capacities
and assets The economic context within which the OPs operated and especially the way that the
economic crisis impacted on each area over the course of the programming period The endowment of SME and innovation support infrastructure and culture determining the
base on which the OPs could build
In fact the detailed investigations have confirmed the importance of the specific context in
which each OP was conceived and implemented for the determination of the nature of the
policy instruments used and the results to be expected from them This context is important
for any fair assessment of the achievements or otherwise of each Programme
Nonetheless when it came to the processes used to promote SMEs and innovation the
differences could often be considered as involving variations around a series of central themes
In all the cases considered there was a strong emphasis on promoting innovation as a
central objective yet this was done in a variety of ways and had differing relationships with
the objective of SME promotion In a number of cases support for SMEs was itself very much
seen as part of this process of encouraging innovation including in the case of the Icircle-de-
France where it involved encouraging new forms of enterprise dedicated to pursuing social
innovation In other cases however there was a clear commitment to provide general support
to SMEs and especially after the extent of the economic crisis became apparent some re-
programming to ensure this
Consequently targeting policies were not as clear cut as might have been expected There
were cases where SMEs were targeted directly ndash Apulia and Castile amp Leon but even here
there was also an element of trying to ensure that enterprises that were capable of benefitting
from support were the one to receive it while elsewhere a subtle lsquosoft targetingrsquo was more
evident where the instruments were shaped to achieve a certain selectivity not by defining
exclusions but by requiring for instance a commitment to change and growth on the part of
18
participants In Denmark for example those encouraged to become members of cluster
organisations had to be interested in developing their growth potential if their participation
was to serve any purpose This in effect led to a self-exclusion by those not willing to play
along with the support offered
The nature of the instruments used to implement OPs were shaped by a number of factors
Just as the objectives of an OP must take into account a large variety of details relating to the
circumstances of the relevant region or country so the precise characteristics of the
instruments to be applied must reflect not only the particular purposes for which they are to be
used the nature of the target group to be addressed and the economic and social
circumstances of the area concerned but the legacy of past interventions as well in the form
of existing support infrastructure and the capabilities developed in preceding periods In other
words support instruments are built on past actions both for positive reasons (exploiting
existing assets) but also because of their familiarity or a certain institutional inertia In any
event the large variety of circumstances in which the particular features of instruments are
determined gives rise to a wide array of actual policy instruments The review of 50 OPs
conducted as part of the evaluation identified 648 different instruments
This large variety of specific instruments however is mainly accounted for in that they are
often designed as elaborations of well-established approaches but addressing particular needs
and circumstances and also a variety of potential targets So building capacities and
competences can be undertaken for enterprises and their managers of varying degrees of
sophistication and background knowledge and can relate to a variety of matters from technical
issues to general management marketing exporting or more specialised issues such as IP
management The process of capacity building can therefore take many forms
The extent of the provision of access to finance is complicated by the question of whether or
not the provision of direct grants counts as part of this function Some substantial sums were
provided in this form by some of the OPs However generally an expected move towards the
provision of more indirect finance ndash loans and equity through intermediaries - was not as
marked as may have been anticipated General access to finance measures (equity
guarantees and reduction of credit interest) accounted for 38 of the funds allocated by the
Lithuanian OP and repayable financial support for 26 of the Apulian OP equity finance 14
in the case of Icircle-de-France 23 for loans and 35 for equity finance in that of Saxony The
other OPs had rather small amounts devoted to indirect financial instruments if any at all An
explanation offered of the small allocations to these instruments in some OPs was that the
crisis discouraged experimentation in this area that it is relatively difficult and expensive to
manage financial instruments and outside the experience of most Managing Authorities that
relatively large sums are necessary to make any appreciable impact and that results can often
take a long time to materialise
There were considerable differences in the extent to which there was provision of direct
support to enterprises In Saxony over 90 of the funds were in the form of grants and in
Icircle-de-France and in Apulia grants largely paid directly to enterprises accounted for 56 and
41 respectively of the funds allocated In Denmark by contrast no grants were paid directly
to enterprises unless they were partners in projects receiving support for developing clusters
or relationships with universities or in a small number of cases where they received funds to
hire private sector business advisers
It is useful to distinguish between different types of direct support In Poland and in Saxony a
large proportion of the direct support was for investments in innovative undertakings In
Apulia although the main part of support went to individual enterprises or SMEs it was more
evenly split between support for investment (by micro and small firms) and investment in
research In Icircle-de-France the weight of the direct support was for research projects
19
It is also interesting that analysis of a wider group of 50 OPs shows that manufacturing firms
received 33 of support ndash much greater than their share in the economy as a whole It also
showed that more than 50 of support has been directed to low-tech firms
Different forms of business support were available across the OPs including access to public
and private sources of information and advice incubator services and assistance for exporters
Castile amp Leon targeted the improvement of management capacities and this approach was
implicit in a number of other OPs
Approaches to support for innovation also took different forms Overall in the broader range
of OPs examined 24 of support was for RampD and a similar amount for business development
and direct support for RampD in collaborative and non-collaborative projects was a significant
feature of the OPs for Apulia Castile amp Leon Icircle-de-France Lithuania Poland and Saxony but
not in the Czech Republic and Denmark where FP7 was thought to be the appropriate vehicle
In Saxony strengthening the research base of enterprises in the local economy and promoting
the exploitation of knowledge was central to the OP so that the majority of the funds were
provided for investment in fixed capital and in supporting RampD This implied a certain targeting
within the SME population In Icircle-de-France the bulk of the support also went to research
projects and support for technology transfer and incubators though there was also support for
SME creation in distressed areas for access to finance and for social innovation projects In
Denmark the focus was more on promoting clusters and encouraging links between enterprises
and science institutions
In some cases however the picture was more mixed In Lithuania where 38 of funding went
to access to finance measures a further 30 to up-grading technology and processes but
there was also direct support for RampD and RampD infrastructure and support for networking and
clusters promoting innovation Similarly in Apulia there was support for research by SMEs
and measures to promote consulting services for technical innovation regional innovation
partnerships and aid for access to ICT alongside aid to investment in micro and small firms
and credit guarantees and support for tourism
Knowledge transfer also featured in many of the OPs Building relationships between
knowledge institutions and enterprises was an important objective for Denmark as part of
developing regional innovation capacities though the results were mixed at least in part
because of an unresponsive culture in certain universities In other cases these relationships
were promoted by collaborative research projects (Icircle-de-France Saxony) and in the case of
Lithuania by the use of vouchers Overall however it is perhaps surprising that building
relationships between knowledge institutions and enterprises did not have a higher profile
The development of clusters was an instrument used in the Czech Republic Lithuania and
Denmark where in some regions it absorbed a large proportion of the available funds and
where the focus was on emerging sectors such as clean technology energy health and welfare
and the experience economy Cluster support in this case consisted of a relatively complex set
of services provided for cluster members In the Czech Republic and Lithuania cluster
development was itself less developed and related to low-tech sectors with potential for
innovation and growth
Underlying these differences between Programmes there were variations in the approach to
governance This has become an important issue for all of the regions and countries
considered In part this is linked to the aspiration at least to establish transparent evidence-
based policy processes which has brought in the development of monitoring and evaluation
systems but there are more central elements of governance to do with who is involved in
decision-making and how decisions are taken that are also part of the picture The
development of stakeholder involvement in strategy formation in the setting of priorities and
even in elements of implementation was apparent in many of the cases throughout the
20
programming period In Denmark the whole (national and EU) strategy was based from the
beginning on a national consensus established through political and open public debates and
implemented through regional bodies with a strong stakeholder representation In Apulia a
self-evaluation exercise led to new departures in response to the crisis
There were however other issues of governance alluded to in the seminar relating to but the
alignment of the OP with national strategies and the organisational mechanisms adopted to
implement the strategy chosen by each OP These can have considerable influence on the
degree to which the Managing Authority can directly influence the implementation
mechanisms
Finally account must be taken of the differential impacts of the recession In Apulia and
Castile amp Leon there was formal reprogramming largely as a result of the recession and
changes in the instrument set utilised To a certain extent this meant a scaling down of
ambitions when for many enterprises it was a matter of survival rather than developing new
ventures Even here though the story does not always move in the same direction In the case
of Apulia for instance while it was necessary in part to refocus support on the broad range of
enterprises suffering from the recession at the same time the crisis acted as a stimulus to new
thinking after the conduct of a self-evaluation exercise
242 A common framework
Overall it can be seen that within the diversity shown by the eight cases there are at least a
number of common themes which are belong addressed in different ways The question does
arise however of whether it might be possible to go further to offer an explanation of the
diversity
External experts at the seminar advised that a theoretical framework should be sought to
make greater sense of the quantitative material and provide the basis for a more deliberative
judgement on the effectiveness of policy and how support funds can be best spent
One possibility is to take the differing circumstances of the OPs as themselves being an
explanatory factor and in a further step see the differences in the nature of the instruments
deployed as being part of an evolutionary process This approach also has the merit of linking
a debate on instruments with broader considerations in the promotion of innovation and
competitiveness at a European level
The reference in section 1 above to the position of the countries covered by the case studies
and their innovation performance as characterised by the Innovation Union Scoreboard and
in further detail at a regional level by the Regional Innovation Scoreboard 2012 allows a
distinction to be made between countries and regions in four categories - lsquoleadersrsquo lsquofollowersrsquo
those with a moderate lsquoperformancersquo and those lsquocatching-uprsquo The respective positions of the
eight cases have been set out in section 1
The approach suggested at the seminar was essentially to explore the hypothesis that the
overall lsquoinnovationrsquo position of regionscountries determines the types of instrument
used their targeting and ultimately their relative performance It may be that the
categorisation help us explain the differences in the objectives set the instruments that are
appropriate and their targeting and that this in turn also influences the performance that can
be expected Regionscountries for instance that are in the lsquoless developedrsquo categories may
have to strengthen their basic support infrastructure and service provision and the
performance of the enterprise base and that of other important players such as knowledge
institutions public authorities etc The regionscountries in the more lsquoadvancedrsquo positions on
the other hand have to build on their strengths in order to maintain or enhance their position
by promoting more productive research and strengthening the links between the science base
and enterprises
21
This possible framework provides an interesting line of enquiry to be followed up in further
stages of the evaluation It does however also address other issues raised in the seminar
such as whether support should be directed to high-tech enterprises or as was argued in
relation to a number of the countries present the gains to be had from the improvement of
the performance of mid and low-tech firms are more relevant in certain stages of
development
22
3 NEXT STEP THEORY-BASED IMPACT EVALUATIONS
As the implementation of the evaluation study proceeds and the case studies (Task 3) are
being drafted the Team is in the course of identifying three policy instruments to be assessed
by as many theory-based impact evaluations as foreseen in Task 4 The three instruments
should be selected out of the long list of seven instruments suggested in the First Intermediate
Report and in consultation with the European Commission
The Team puts forward hereby a possible list of three policy instruments The main criteria
considered for their selection are
i The degree of representativeness of the typologies of policy instruments used in the 50
OPs as outlined in the First Intermediate Report the most significant categories of
policy instruments in terms of public expenditure are
Business creation and development ie instruments designed to stimulate
investments in the business sector without a predominant emphasis on RampD
and innovation
Support for RampD projects
Support for the development of technological and non-technological innovation
without any research and experimental development activities
ii The feasibility of a theory-based impact evaluation based on a survey of beneficiaries
which implies the availability of a sufficiently large number of beneficiaries and the
possibility to easily get their email contacts also with the help of the Managing
Authority or the implementing body the best option is to have at least some hundreds
beneficiary SMEs for each instrument
iii The importance of the policy instrument within the policy mix of the OP which ensures
the availability of a good amount of information resulting from the case study
regarding in particular its logic of intervention information about beneficiaries and
effectiveness
iv Preference is assigned to instruments on which no other surveys to beneficiaries have
been conducted so far in order not to put excessive burden on the same SMEs which
could undermine their willingness to contribute to our study
Based on these considerations the three policy instruments we propose for a theory-based
impact evaluation are presented in the table below It can be noticed that the list also ensures
geographical balance between Convergence and Competitiveness and Employment region as
well as Old and New Member States and regional and national OPs For the sake of
completeness and comparability for all the seven candidate instruments the pros and cons for
selecting each of them are detailed
23
Table 4 Comparison of the policy instruments and reasons for selection
Proposed for
selection
Type of policy
instrument
Selected policy
instrument
Operational Programme and
type of regioncountry
Descriptive information Specific reason for selection
for a TBIE Possible reasons for
rejection
YES Business creation and development
ldquoAid to investment projects by micro and small enterprisesrdquo
Regional OP Apulia (Italy) - Convergence region
- Old Member State
The instrument supports the purchase of machineries computer systems buildings construction works for enterprises in order to encourage the development of micro and small companies It benefitted more than 3 thousand SMEs For around 30 of beneficiaries grants have been combined with credit guarantees
- Very common type of SME support on which vast literature has been produced
- Very large number of beneficiary SMEs
- The strong relationship already established with local stakeholders and many SMEs would allow to easily and quickly test the surveyrsquos questionnaires before the launch of the three TBIEs
- For some SMEs opportunity to analyse the complimentary efforts of two forms of support (grants and a combination of grants and guarantees) and their respective effectiveness
- None
YES Support for RampD projects
ldquoGrants for Industrial Research and Experimental Developmentrdquo
Regional OP Castilla y Leon (Spain) - Competitiveness and Employment region
- Old Member State
The instrument encourages the development of RampD projects with the purpose of increasing the basis of number of innovative enterprises investment and personnel in RampD In total 759 projects of SMEs have been supported through grants 204 SMEs have conducted their project in collaboration with research organisations
- In analysing the achievement of beneficiary SMEs as well as the behavioural change opportunity to distinguish between SMEs which have realized their projects independently rather than in collaboration with a research centre
- According to the country expert among all the policy instruments of this OP this is the one for which it would be easier to get the contact details of beneficiary SMEs
- Possibility to get active collaboration by the regional authority ADE eg sending out an introductory letter to all
- None
24
Proposed for
selection
Type of policy
instrument
Selected policy
instrument
Operational Programme and
type of regioncountry
Descriptive information Specific reason for selection
for a TBIE Possible reasons for
rejection
SMEs mentioning that they will receive an invitation to a survey and inviting them to reply
YES Support for the development of technological and non-technological innovation
ldquoFinancing of individual projects for SMEsrdquo
National OP Poland Innovative Economy - Convergence country
- New Member State
The instrument provides grants to support the technological innovation of SMEs In particular it aims to stimulate the adoption of more risky and innovative solutions The instrument performed far better than expected 698 projects have been realised up to 2013 by approximately as many SMEs The instrument is delivered by a financial intermediary
- This instrument belongs to the OP which has provided the largest financial contribution to SMEs within the full sample of 50 OPs furthermore this is one of the core instrument of the programme as also reflected in the volume of public contribution which is among the highest of the OP (more than EUR 300 million fully targeted to SMEs)
- Opportunity to examine the role played by the intermediary according to the perceptions and opinions of beneficiary SMEs
- None
NO Support for RampD projects
ldquoRampD project grants for individual enterprisesrdquo
Germany regional OP Saxony - Convergence region
- Old Member State
The instrument provides grants to individual enterprises for supporting the implementation of RampD projects
- Evidence of achievement is already available since the instrument was subject of another evaluation study and enterprise survey a few years ago The TBIE would allow to better qualify the instrumentsrsquo achievements and the causal chain leading to the certain effects
- According to the country experts beneficiary SMEs may be reluctant to participate to another survey
- Less than 200 beneficiary SMEs a lower number as compared with other candidate policy instruments
- It is still uncertain whether it will be possible to get the email addresses of beneficiary SMEs
25
Proposed for
selection
Type of policy
instrument
Selected policy
instrument
Operational Programme and
type of regioncountry
Descriptive information Specific reason for selection
for a TBIE Possible reasons for
rejection
NO Support for the development of technological and non-technological innovation
ldquoSupport for technological upgrade - LEADER LTrdquo
Lithuania - Economic Growth - Convergence country
- New Member State
The instrument supports the increase of productivity in enterprises by supporting production technology upgrading The investment into the acquisition or upgrade of technologies and related internal engineering infrastructures are supported
- Email contacts particularly easy to be collected
- Result indicators are available due to an effective Structural Funds monitoring system and because the instrument was already subject of a previous evaluation study
- Very low number of beneficiary SMEs (69) which would make this instrument less suitable for launching an on-line survey as compared with other candidate instruments
NO Support for the development of technological and non-technological innovation
ldquoSupport for non-technological innovation - PROCESS LTrdquo
Lithuania - Economic Growth - Convergence country
- New Member State
The instrument aims to increase productivity in enterprises by implementing modern management methods and processes except of personnel management systems The purchase of external consulting services is supported in order to upgrade enterprises management processes
- Email contacts particularly easy to be collected
- Result indicators are available due to an effective Structural Funds monitoring system and because the instrument was already subject of a previous evaluation study
- The instrument is considered highly relevant by the target beneficiaries
- Very low number of beneficiary SMEs (119)
- As compared with other categories of policy instruments support for non-technological innovation is relatively less significant and representative of the typical forms of support provided to SMEs in the EU
NO Support for networking
ldquoInteraction on Innovationrdquo later merged with ldquoCluster relationshiprdquo
Denmark Innovation and Knowledge OP - Competitiveness and Employment country
- Old Member State
The policy instrument aims at analysing opportunities for creating clusters promoting networks and the formation of clusters of SMEs in particular as well as clusters of supplier networks for SMEs These objectives are pursued by providing grants to SMEs in partnership with universities (according to the triple helix model)
- Opportunity to better analyse the effects of a policy instrument on which a vast amount of literature has been produced
- Opportunity to dig into the collaboration mechanisms between SMEs and universities
- As compared with other categories of policy instruments support for networking is relatively less significant and representative of the typical forms of support provided to SMEs in the EU
- The number and characteristics of SMEs benefitting from this instrument remain unknown even after implementing the case
26
Proposed for
selection
Type of policy
instrument
Selected policy
instrument
Operational Programme and
type of regioncountry
Descriptive information Specific reason for selection
for a TBIE Possible reasons for
rejection
study The lack of data at policy instrument level prevents from identifying the beneficiary SMEs to which launching the on-line survey
27
4 ANNEX SEMINAR PARTICIPANTS
Name Description Organisation
DG REGIO Evaluation Unit
Rudolf Niessler Director DG REGIO B Policy
Veronica Gaffey Head of Evaluation Unit DG REGIO B2
Marielle Richeacute Evaluation Unit DG REGIO B2
Kai Stryczynski Deputy Head of Unit DG REGIO B2
Daniel Mouqueacute Evaluation Unit DG REGIO B2
CSIL Evaluation Team
Massimo Florio Evaluation team Director CSIL
Julie Pellegrin Evaluation team Project Manager CSIL
Silvia Vignetti Evaluation team CSIL
Emanuela Sirtori Evaluation team CSIL
Mike Coyne Evaluation team CSES
Malin Carlberg Evaluation team CSES
Anna-Maria Krarup Evaluation team CSES
Christian Koehler Case Study Saxony Centre for European Economic Research (ZEW)
Jaime del Castillo Case Study Castile amp Leon President INFYDE
Agnė Paliokaitė Case Study Lithuania Visionary Analytics
Elena Jarocinska Case Study Poland
Commission Officials
Katja Reppel Deputy Head of Unit Competence Centre Smart and Sustainable Growth
DG REGIO G1
Bernd Reichert Head of Unit H2020 SME EASME
Peter Wragg Head of Unit SME Access to Markets DG GROW F2
Jean David Malo Head of Unit SMEs Financial Instruments amp State Aid DG RTD B3
28
Istvan Nemeth Policy Officer - Enterprise Europe Network DG GROW F2
External Experts
Harvey Armstrong Professor Emeritus in the Department of Geography University of Sheffield
Robert Picciotto Visiting Professor Kings College London
Mark Sanders Professor University of Utrecht
Jiri Blazek Associate Professor Charles University Prague
Stakeholders ndash Case Studies
Adriana Agrimi Manager of RampI Policy Instrument Apulia Managing Authority
Kasper Westh Senior official Growth Forum Secretariat South Denmark
Simona Daukilaite
Deputy Head of the Economic Growth Operational Programme
Economic Growth OP Lithuania Managing Authority
Beatriz Casado Saenz Vice-General Director ADE (Development Agency Castile amp Leon)
Tomasz Kula Analysis and Evaluation Team Competitiveness and Innovation Department
Ministry of Infrastructure and Development (PL)
Representatives of other Work Packages
Terry Ward WP 1 Applica
Andreas Resch WP 3 Metis-Vienna
Anda Berenyi WP 4 KPMG
LEGAL NOTICE
This document has been prepared for the European Commission however it reflects the views only of the authors and the Commission cannot be held responsible for any use which may be made of the information
contained therein
More information on the European Union is available on the Internet (httpwwweuropaeu)
Luxembourg Publications Office of the European Union 2014
ISBN [number]
doi[number]
copy European Union 2015
Reproduction is authorised provided the source is acknowledged
Printed in [Country]
PRINTED ON ELEMENTAL CHLORINE-FREE BLEACHED PAPER (ECF)
PRINTED ON TOTALLY CHLORINE-FREE BLEACHED PAPER (TCF) PRINTED ON RECYCLED PAPER
PRINTED ON PROCESS CHLORINE-FREE RECYCLED PAPER (PCF)
Europe Direct is a service to help you find answers to your questions about the European Union
Freephone number ()
00 800 6 7 8 9 10 11
() The information given is free as are most calls (though some operators phone boxes or hotels may charge you)
12
French OPs) for increasing technological and non-technological innovation (Polish OP) One OP
is focused on increasing networking and knowledge and technology transfer (Danish OP)
Figure 2 Paid amount by type of policy instruments in the eight OPs
0
10
20
30
40
50
60
70
80
90
100
CZ - CzechRepublic
DE - Saxony DK - Denmark ES - Castilla yLeoacuten
FR - Icircle deFrance
IT - Apulia LT - Lithuania PL - Poland
Support for RampD projects
Support for improving capacities
Networking
Knowledge and technology transfer
Internationalisation and visibility
Infrastructures and related services
Generic access to finance
Development of technological or non-technological innovation
Creation of innovative companies
Business creation and development
Access and diffusion of ICT
Note paid amount refers to both ERDF and public funds paid to beneficiaries
The public support has been largely delivered in the form of grants in five out of the eight
considered OPs which is in line with the predominance of traditional direct support across the
entire EU There are however some exceptions in Lithuania and especially Poland more
often public support has been conveyed through packages of support usually combining
grants with consulting services Equity finance is quite relevant in Icircle-de-France Lithuania and
Saxony while some preference for using repayable financial support can be observed in Apulia
and the Czech Republic
13
Figure 3 Paid amount by mode of delivery in the eight OPs
0 10 20 30 40 50 60 70 80 90 100
CZ - CzechRepublic
DE - Saxony
DK - Denmark
ES - Castilla yLeoacuten
FR - Icircle de France
IT - Apulia
LT - Lithuania
PL - Poland
Equity finance + Repayable financial support
Consulting services + training + search of businesspartnersConsulting advice technical assistance
Consulting advice technical assistance +Information campaing eventsEquity finance
Grants
Grants + consulting services + training
Grants + Consulting advice technical assistance
Grants + Loans + Information campaigns
Grants + Provision of infrastructure and services +Consulting advice technical assistanceGrants + training
Information campaign events seminars
Provision of infrastructure and services +Consulting advice technical assistanceProvision of infrastructures
Repayable financial support
Source CSIL elaboration Note Paid amount refers to both ERDF and public contributions
14
The eight OPs have provided of support to around 48 thousand SMEs representing 20 of the
total number of beneficiary SMEs ascribable to the full sample of 50 OPs The number of
beneficiary SMEs is the highest for the OPs of Poland and Lithuania with more than 10
thousand and 12 thousand beneficiaries on the other hand the French OP has supported less
than 300 SMEs
Figure 4 Number of beneficiary SMEs of the eight OPs
00
10
20
30
40
50
60
70
80
90
100
0
2000
4000
6000
8000
10000
12000
14000
PL - Poland LT - Lithuania IT - Apulia ES - Castilla yLeoacuten
CZ - CzechRepublic
DE - Saxony FR - Icircle de France
Number of beneficiary SMEs Share of beneficiary SMEs over the total number of SMEs in the target area
Source CSIL elaboration Note Missing data for Denmark since the exact number of beneficiary SMEs is not available
In order to assess the intervention strategy of the OPs besides the absolute number of
beneficiaries it is particularly interesting to look at the distribution of beneficiaries according to
their size and technology intensity The analysis on the 50 OPs has revealed that the micro
enterprises generally represent the large majority of SMEs benefiting from ERDF support
(54) followed by small (30) and medium enterprises (16) The analysis has documented
the predominantly low technological intensity of beneficiary SMEs the majority of SMEs (53)
belong to sectors with a low share of business RampD expenditure over the value added by
sector However it is also noted that almost one quarter of all beneficiaries (24) has a
medium-high technological level Medium low-tech or high tech companies represent a lower
share of all the identified beneficiaries ie 14 and 9 respectively
The proportion of beneficiary SMEs in the eight OPs provides a more diversified picture (Figure
5 and 6) The Czech OP Enterprise and Innovation has directed the public support mainly to
small and medium size companies with a fair distribution in terms of technology intensity
Conversely the regional Apulia OP target micro enterprises characterised by either a low or a
medium-high technology intensity The Lithuanian OP has mostly supported low-tech
companies without significant differentiation in terms of size
15
Figure 5 Share of beneficiary SMEs by size class in the eight OPs
0
10
20
30
40
50
60
70
80
90
100
CZ - Czech Republic(Innov)
ES - Castilla y Leoacuten FR - Icircle de France IT - Apulia LT - Lithuania PL - Poland
Micro enterprises Small enterprises Medium enterprises
Source CSIL elaboration Note Missing data for Saxony and Denmark since the size class of beneficiary SMEs is not
available
Figure 6 Share of beneficiary SMEs by technology intensity level in the eight OPs
0
10
20
30
40
50
60
70
80
90
100
CZ - CzechRepublic
DE - Saxony ES - Castilla yLeoacuten
FR - Icircle deFrance
IT - Apulia LT - Lithuania PL - Poland
Low tech
Medium-low tech
Medium-high tech
High tech
Source CSIL elaboration Missing data for Denmark since the level of technological intensity cannot be estimated due
to missing data on sectoral disaggregation of beneficiary SMEs
Whether the characteristics of beneficiary SMEs simply mirror the specific characteristics of the
population of SMEs in the area covered by the OPs or result from different logics of
intervention underneath the OPs or from a mix of the two possible reasons is investigated in
the case studies
16
2 RESULTS OF THE SEMINAR
The aim of a ldquostakeholder seminarrdquo held on 29th April 2015 was to present the preliminary
findings and the main issues identified in other tasks undertaken for this Work Package and
especially those emerging from the eight case studies of Operational Programmes and to
discuss the policy implications and main lessons with Commission staff the evaluation team
members (and representatives of other Work Packages) academic experts and people
involved in the implementation of the Operational Programmes on the ground (see list of
participants in Annex) The following provides an overview setting out the main highlights in
the results from the presentations of the eight case studies
The seminar was organised in relation to three themes as follows
1) Targeting high vs low tech firms the case studies of Lithuania Saxony and Poland
2) Promoting widespread vs selective instruments the case studies of Apulia Castile amp
Leon and the Czech Republic
3) ERDF and the regional policy mix the case studies of Icircle-de-France and Denmark
Other issues that it was intended to highlight during the course of the discussion included
The issue of direct versus indirect support
Economic development versus anti-cyclical intervention
Supporting enabling organisations
Supporting individual enterprises as against partnerships
21 Targeting high vs low tech firms
In Lithuania the challenge was to build competitive advantage on the basis of labour-intensive
technologies The traditional sectors were in need of upgrading and the majority of the funds
were allocated to low tech companies In Saxony there was a demand driven approach but
also a realisation that low tech firms can improve competitiveness through cost reduction
Technologyprocess upgrading as subset to innovation can be justified but concentration of
spending on RampD has established Saxony as one of the German RampD powerhouses and
contributed to market access an increase in turnover and employment growth In Poland it
was thought that for countries that are not leading technological change the returns from
innovation are particularly high in low-tech manufacturing sectors but that as a country
approaches the technological frontier the policy should focus on RampD and innovative start-up
In discussion a central question was posed where does the investment pay most
22 Promoting widespread vs selective instruments
In Apulia the strategy was adjusted through re-programming to provide broad support to
SMEs to allow them to survive during the crisis and recession a dual approach was adopted
with selective support for SMEs with the internal capacity to manage innovation processes
including demand-side measures In Castile amp Leon the impact of the crisis was also intense
and broadly-based support was necessary but there were also efforts to build up the support
infrastructure and to provide in-depth support to enterprises identified as capable of innovation
and growth In the Czech Republic there was again both broadly-based and selective support
especially to address the ldquoBranch-plant syndromerdquo (where branches of international firms allow
little room for independent development by local suppliers) There was a focus on transferring
RampD results into production by stimulating demand for RampD results with 13 of the funds
going to support for innovation activities
17
23 ERDF and the regional policy mix
The last two cases are examples of OPs for areas which are relatively prosperous and where
RampD and innovation are relatively strong The ERDF budgets however were relatively small
In the Icircle-de-France (IdF) there was a pragmatic and demand-driven implementation
palliating perceived gaps in regional public support and enlarging the available financial
support targeting high growth high tech sectors appears to pay off in the IdF context In
Denmark there was a more strategic approach which was well integrated into national
strategy but with flexible implementation with strong stakeholder involvement in 6 regional
programmes There were interesting applications of the triple helix model amp successful cluster
developments
In all cases there was comment on the strength of monitoring and evaluation systems These
varied considerably from a relatively under-developed system in Apulia to a relatively strong
one in Icircle-de-France Denmark had organised a counterfactual analysis of enterprises
supported by the OP as against similar enterprises not receiving support
24 Synthesis
241 Diversity across themes
The first impression made by the presentations was the diversity of the interventions in the
eight cases There are several dimensions to these differences beginning with the context in
which the OP was implemented where there were differences relating to
The size of the regionsMember States targeted The absolute and relative size of the Programmes within the regions and countries in which
they operated and the effects that could reasonably be expected from them The size and structure of the SME population its sectoral distribution and its capacities
and assets The economic context within which the OPs operated and especially the way that the
economic crisis impacted on each area over the course of the programming period The endowment of SME and innovation support infrastructure and culture determining the
base on which the OPs could build
In fact the detailed investigations have confirmed the importance of the specific context in
which each OP was conceived and implemented for the determination of the nature of the
policy instruments used and the results to be expected from them This context is important
for any fair assessment of the achievements or otherwise of each Programme
Nonetheless when it came to the processes used to promote SMEs and innovation the
differences could often be considered as involving variations around a series of central themes
In all the cases considered there was a strong emphasis on promoting innovation as a
central objective yet this was done in a variety of ways and had differing relationships with
the objective of SME promotion In a number of cases support for SMEs was itself very much
seen as part of this process of encouraging innovation including in the case of the Icircle-de-
France where it involved encouraging new forms of enterprise dedicated to pursuing social
innovation In other cases however there was a clear commitment to provide general support
to SMEs and especially after the extent of the economic crisis became apparent some re-
programming to ensure this
Consequently targeting policies were not as clear cut as might have been expected There
were cases where SMEs were targeted directly ndash Apulia and Castile amp Leon but even here
there was also an element of trying to ensure that enterprises that were capable of benefitting
from support were the one to receive it while elsewhere a subtle lsquosoft targetingrsquo was more
evident where the instruments were shaped to achieve a certain selectivity not by defining
exclusions but by requiring for instance a commitment to change and growth on the part of
18
participants In Denmark for example those encouraged to become members of cluster
organisations had to be interested in developing their growth potential if their participation
was to serve any purpose This in effect led to a self-exclusion by those not willing to play
along with the support offered
The nature of the instruments used to implement OPs were shaped by a number of factors
Just as the objectives of an OP must take into account a large variety of details relating to the
circumstances of the relevant region or country so the precise characteristics of the
instruments to be applied must reflect not only the particular purposes for which they are to be
used the nature of the target group to be addressed and the economic and social
circumstances of the area concerned but the legacy of past interventions as well in the form
of existing support infrastructure and the capabilities developed in preceding periods In other
words support instruments are built on past actions both for positive reasons (exploiting
existing assets) but also because of their familiarity or a certain institutional inertia In any
event the large variety of circumstances in which the particular features of instruments are
determined gives rise to a wide array of actual policy instruments The review of 50 OPs
conducted as part of the evaluation identified 648 different instruments
This large variety of specific instruments however is mainly accounted for in that they are
often designed as elaborations of well-established approaches but addressing particular needs
and circumstances and also a variety of potential targets So building capacities and
competences can be undertaken for enterprises and their managers of varying degrees of
sophistication and background knowledge and can relate to a variety of matters from technical
issues to general management marketing exporting or more specialised issues such as IP
management The process of capacity building can therefore take many forms
The extent of the provision of access to finance is complicated by the question of whether or
not the provision of direct grants counts as part of this function Some substantial sums were
provided in this form by some of the OPs However generally an expected move towards the
provision of more indirect finance ndash loans and equity through intermediaries - was not as
marked as may have been anticipated General access to finance measures (equity
guarantees and reduction of credit interest) accounted for 38 of the funds allocated by the
Lithuanian OP and repayable financial support for 26 of the Apulian OP equity finance 14
in the case of Icircle-de-France 23 for loans and 35 for equity finance in that of Saxony The
other OPs had rather small amounts devoted to indirect financial instruments if any at all An
explanation offered of the small allocations to these instruments in some OPs was that the
crisis discouraged experimentation in this area that it is relatively difficult and expensive to
manage financial instruments and outside the experience of most Managing Authorities that
relatively large sums are necessary to make any appreciable impact and that results can often
take a long time to materialise
There were considerable differences in the extent to which there was provision of direct
support to enterprises In Saxony over 90 of the funds were in the form of grants and in
Icircle-de-France and in Apulia grants largely paid directly to enterprises accounted for 56 and
41 respectively of the funds allocated In Denmark by contrast no grants were paid directly
to enterprises unless they were partners in projects receiving support for developing clusters
or relationships with universities or in a small number of cases where they received funds to
hire private sector business advisers
It is useful to distinguish between different types of direct support In Poland and in Saxony a
large proportion of the direct support was for investments in innovative undertakings In
Apulia although the main part of support went to individual enterprises or SMEs it was more
evenly split between support for investment (by micro and small firms) and investment in
research In Icircle-de-France the weight of the direct support was for research projects
19
It is also interesting that analysis of a wider group of 50 OPs shows that manufacturing firms
received 33 of support ndash much greater than their share in the economy as a whole It also
showed that more than 50 of support has been directed to low-tech firms
Different forms of business support were available across the OPs including access to public
and private sources of information and advice incubator services and assistance for exporters
Castile amp Leon targeted the improvement of management capacities and this approach was
implicit in a number of other OPs
Approaches to support for innovation also took different forms Overall in the broader range
of OPs examined 24 of support was for RampD and a similar amount for business development
and direct support for RampD in collaborative and non-collaborative projects was a significant
feature of the OPs for Apulia Castile amp Leon Icircle-de-France Lithuania Poland and Saxony but
not in the Czech Republic and Denmark where FP7 was thought to be the appropriate vehicle
In Saxony strengthening the research base of enterprises in the local economy and promoting
the exploitation of knowledge was central to the OP so that the majority of the funds were
provided for investment in fixed capital and in supporting RampD This implied a certain targeting
within the SME population In Icircle-de-France the bulk of the support also went to research
projects and support for technology transfer and incubators though there was also support for
SME creation in distressed areas for access to finance and for social innovation projects In
Denmark the focus was more on promoting clusters and encouraging links between enterprises
and science institutions
In some cases however the picture was more mixed In Lithuania where 38 of funding went
to access to finance measures a further 30 to up-grading technology and processes but
there was also direct support for RampD and RampD infrastructure and support for networking and
clusters promoting innovation Similarly in Apulia there was support for research by SMEs
and measures to promote consulting services for technical innovation regional innovation
partnerships and aid for access to ICT alongside aid to investment in micro and small firms
and credit guarantees and support for tourism
Knowledge transfer also featured in many of the OPs Building relationships between
knowledge institutions and enterprises was an important objective for Denmark as part of
developing regional innovation capacities though the results were mixed at least in part
because of an unresponsive culture in certain universities In other cases these relationships
were promoted by collaborative research projects (Icircle-de-France Saxony) and in the case of
Lithuania by the use of vouchers Overall however it is perhaps surprising that building
relationships between knowledge institutions and enterprises did not have a higher profile
The development of clusters was an instrument used in the Czech Republic Lithuania and
Denmark where in some regions it absorbed a large proportion of the available funds and
where the focus was on emerging sectors such as clean technology energy health and welfare
and the experience economy Cluster support in this case consisted of a relatively complex set
of services provided for cluster members In the Czech Republic and Lithuania cluster
development was itself less developed and related to low-tech sectors with potential for
innovation and growth
Underlying these differences between Programmes there were variations in the approach to
governance This has become an important issue for all of the regions and countries
considered In part this is linked to the aspiration at least to establish transparent evidence-
based policy processes which has brought in the development of monitoring and evaluation
systems but there are more central elements of governance to do with who is involved in
decision-making and how decisions are taken that are also part of the picture The
development of stakeholder involvement in strategy formation in the setting of priorities and
even in elements of implementation was apparent in many of the cases throughout the
20
programming period In Denmark the whole (national and EU) strategy was based from the
beginning on a national consensus established through political and open public debates and
implemented through regional bodies with a strong stakeholder representation In Apulia a
self-evaluation exercise led to new departures in response to the crisis
There were however other issues of governance alluded to in the seminar relating to but the
alignment of the OP with national strategies and the organisational mechanisms adopted to
implement the strategy chosen by each OP These can have considerable influence on the
degree to which the Managing Authority can directly influence the implementation
mechanisms
Finally account must be taken of the differential impacts of the recession In Apulia and
Castile amp Leon there was formal reprogramming largely as a result of the recession and
changes in the instrument set utilised To a certain extent this meant a scaling down of
ambitions when for many enterprises it was a matter of survival rather than developing new
ventures Even here though the story does not always move in the same direction In the case
of Apulia for instance while it was necessary in part to refocus support on the broad range of
enterprises suffering from the recession at the same time the crisis acted as a stimulus to new
thinking after the conduct of a self-evaluation exercise
242 A common framework
Overall it can be seen that within the diversity shown by the eight cases there are at least a
number of common themes which are belong addressed in different ways The question does
arise however of whether it might be possible to go further to offer an explanation of the
diversity
External experts at the seminar advised that a theoretical framework should be sought to
make greater sense of the quantitative material and provide the basis for a more deliberative
judgement on the effectiveness of policy and how support funds can be best spent
One possibility is to take the differing circumstances of the OPs as themselves being an
explanatory factor and in a further step see the differences in the nature of the instruments
deployed as being part of an evolutionary process This approach also has the merit of linking
a debate on instruments with broader considerations in the promotion of innovation and
competitiveness at a European level
The reference in section 1 above to the position of the countries covered by the case studies
and their innovation performance as characterised by the Innovation Union Scoreboard and
in further detail at a regional level by the Regional Innovation Scoreboard 2012 allows a
distinction to be made between countries and regions in four categories - lsquoleadersrsquo lsquofollowersrsquo
those with a moderate lsquoperformancersquo and those lsquocatching-uprsquo The respective positions of the
eight cases have been set out in section 1
The approach suggested at the seminar was essentially to explore the hypothesis that the
overall lsquoinnovationrsquo position of regionscountries determines the types of instrument
used their targeting and ultimately their relative performance It may be that the
categorisation help us explain the differences in the objectives set the instruments that are
appropriate and their targeting and that this in turn also influences the performance that can
be expected Regionscountries for instance that are in the lsquoless developedrsquo categories may
have to strengthen their basic support infrastructure and service provision and the
performance of the enterprise base and that of other important players such as knowledge
institutions public authorities etc The regionscountries in the more lsquoadvancedrsquo positions on
the other hand have to build on their strengths in order to maintain or enhance their position
by promoting more productive research and strengthening the links between the science base
and enterprises
21
This possible framework provides an interesting line of enquiry to be followed up in further
stages of the evaluation It does however also address other issues raised in the seminar
such as whether support should be directed to high-tech enterprises or as was argued in
relation to a number of the countries present the gains to be had from the improvement of
the performance of mid and low-tech firms are more relevant in certain stages of
development
22
3 NEXT STEP THEORY-BASED IMPACT EVALUATIONS
As the implementation of the evaluation study proceeds and the case studies (Task 3) are
being drafted the Team is in the course of identifying three policy instruments to be assessed
by as many theory-based impact evaluations as foreseen in Task 4 The three instruments
should be selected out of the long list of seven instruments suggested in the First Intermediate
Report and in consultation with the European Commission
The Team puts forward hereby a possible list of three policy instruments The main criteria
considered for their selection are
i The degree of representativeness of the typologies of policy instruments used in the 50
OPs as outlined in the First Intermediate Report the most significant categories of
policy instruments in terms of public expenditure are
Business creation and development ie instruments designed to stimulate
investments in the business sector without a predominant emphasis on RampD
and innovation
Support for RampD projects
Support for the development of technological and non-technological innovation
without any research and experimental development activities
ii The feasibility of a theory-based impact evaluation based on a survey of beneficiaries
which implies the availability of a sufficiently large number of beneficiaries and the
possibility to easily get their email contacts also with the help of the Managing
Authority or the implementing body the best option is to have at least some hundreds
beneficiary SMEs for each instrument
iii The importance of the policy instrument within the policy mix of the OP which ensures
the availability of a good amount of information resulting from the case study
regarding in particular its logic of intervention information about beneficiaries and
effectiveness
iv Preference is assigned to instruments on which no other surveys to beneficiaries have
been conducted so far in order not to put excessive burden on the same SMEs which
could undermine their willingness to contribute to our study
Based on these considerations the three policy instruments we propose for a theory-based
impact evaluation are presented in the table below It can be noticed that the list also ensures
geographical balance between Convergence and Competitiveness and Employment region as
well as Old and New Member States and regional and national OPs For the sake of
completeness and comparability for all the seven candidate instruments the pros and cons for
selecting each of them are detailed
23
Table 4 Comparison of the policy instruments and reasons for selection
Proposed for
selection
Type of policy
instrument
Selected policy
instrument
Operational Programme and
type of regioncountry
Descriptive information Specific reason for selection
for a TBIE Possible reasons for
rejection
YES Business creation and development
ldquoAid to investment projects by micro and small enterprisesrdquo
Regional OP Apulia (Italy) - Convergence region
- Old Member State
The instrument supports the purchase of machineries computer systems buildings construction works for enterprises in order to encourage the development of micro and small companies It benefitted more than 3 thousand SMEs For around 30 of beneficiaries grants have been combined with credit guarantees
- Very common type of SME support on which vast literature has been produced
- Very large number of beneficiary SMEs
- The strong relationship already established with local stakeholders and many SMEs would allow to easily and quickly test the surveyrsquos questionnaires before the launch of the three TBIEs
- For some SMEs opportunity to analyse the complimentary efforts of two forms of support (grants and a combination of grants and guarantees) and their respective effectiveness
- None
YES Support for RampD projects
ldquoGrants for Industrial Research and Experimental Developmentrdquo
Regional OP Castilla y Leon (Spain) - Competitiveness and Employment region
- Old Member State
The instrument encourages the development of RampD projects with the purpose of increasing the basis of number of innovative enterprises investment and personnel in RampD In total 759 projects of SMEs have been supported through grants 204 SMEs have conducted their project in collaboration with research organisations
- In analysing the achievement of beneficiary SMEs as well as the behavioural change opportunity to distinguish between SMEs which have realized their projects independently rather than in collaboration with a research centre
- According to the country expert among all the policy instruments of this OP this is the one for which it would be easier to get the contact details of beneficiary SMEs
- Possibility to get active collaboration by the regional authority ADE eg sending out an introductory letter to all
- None
24
Proposed for
selection
Type of policy
instrument
Selected policy
instrument
Operational Programme and
type of regioncountry
Descriptive information Specific reason for selection
for a TBIE Possible reasons for
rejection
SMEs mentioning that they will receive an invitation to a survey and inviting them to reply
YES Support for the development of technological and non-technological innovation
ldquoFinancing of individual projects for SMEsrdquo
National OP Poland Innovative Economy - Convergence country
- New Member State
The instrument provides grants to support the technological innovation of SMEs In particular it aims to stimulate the adoption of more risky and innovative solutions The instrument performed far better than expected 698 projects have been realised up to 2013 by approximately as many SMEs The instrument is delivered by a financial intermediary
- This instrument belongs to the OP which has provided the largest financial contribution to SMEs within the full sample of 50 OPs furthermore this is one of the core instrument of the programme as also reflected in the volume of public contribution which is among the highest of the OP (more than EUR 300 million fully targeted to SMEs)
- Opportunity to examine the role played by the intermediary according to the perceptions and opinions of beneficiary SMEs
- None
NO Support for RampD projects
ldquoRampD project grants for individual enterprisesrdquo
Germany regional OP Saxony - Convergence region
- Old Member State
The instrument provides grants to individual enterprises for supporting the implementation of RampD projects
- Evidence of achievement is already available since the instrument was subject of another evaluation study and enterprise survey a few years ago The TBIE would allow to better qualify the instrumentsrsquo achievements and the causal chain leading to the certain effects
- According to the country experts beneficiary SMEs may be reluctant to participate to another survey
- Less than 200 beneficiary SMEs a lower number as compared with other candidate policy instruments
- It is still uncertain whether it will be possible to get the email addresses of beneficiary SMEs
25
Proposed for
selection
Type of policy
instrument
Selected policy
instrument
Operational Programme and
type of regioncountry
Descriptive information Specific reason for selection
for a TBIE Possible reasons for
rejection
NO Support for the development of technological and non-technological innovation
ldquoSupport for technological upgrade - LEADER LTrdquo
Lithuania - Economic Growth - Convergence country
- New Member State
The instrument supports the increase of productivity in enterprises by supporting production technology upgrading The investment into the acquisition or upgrade of technologies and related internal engineering infrastructures are supported
- Email contacts particularly easy to be collected
- Result indicators are available due to an effective Structural Funds monitoring system and because the instrument was already subject of a previous evaluation study
- Very low number of beneficiary SMEs (69) which would make this instrument less suitable for launching an on-line survey as compared with other candidate instruments
NO Support for the development of technological and non-technological innovation
ldquoSupport for non-technological innovation - PROCESS LTrdquo
Lithuania - Economic Growth - Convergence country
- New Member State
The instrument aims to increase productivity in enterprises by implementing modern management methods and processes except of personnel management systems The purchase of external consulting services is supported in order to upgrade enterprises management processes
- Email contacts particularly easy to be collected
- Result indicators are available due to an effective Structural Funds monitoring system and because the instrument was already subject of a previous evaluation study
- The instrument is considered highly relevant by the target beneficiaries
- Very low number of beneficiary SMEs (119)
- As compared with other categories of policy instruments support for non-technological innovation is relatively less significant and representative of the typical forms of support provided to SMEs in the EU
NO Support for networking
ldquoInteraction on Innovationrdquo later merged with ldquoCluster relationshiprdquo
Denmark Innovation and Knowledge OP - Competitiveness and Employment country
- Old Member State
The policy instrument aims at analysing opportunities for creating clusters promoting networks and the formation of clusters of SMEs in particular as well as clusters of supplier networks for SMEs These objectives are pursued by providing grants to SMEs in partnership with universities (according to the triple helix model)
- Opportunity to better analyse the effects of a policy instrument on which a vast amount of literature has been produced
- Opportunity to dig into the collaboration mechanisms between SMEs and universities
- As compared with other categories of policy instruments support for networking is relatively less significant and representative of the typical forms of support provided to SMEs in the EU
- The number and characteristics of SMEs benefitting from this instrument remain unknown even after implementing the case
26
Proposed for
selection
Type of policy
instrument
Selected policy
instrument
Operational Programme and
type of regioncountry
Descriptive information Specific reason for selection
for a TBIE Possible reasons for
rejection
study The lack of data at policy instrument level prevents from identifying the beneficiary SMEs to which launching the on-line survey
27
4 ANNEX SEMINAR PARTICIPANTS
Name Description Organisation
DG REGIO Evaluation Unit
Rudolf Niessler Director DG REGIO B Policy
Veronica Gaffey Head of Evaluation Unit DG REGIO B2
Marielle Richeacute Evaluation Unit DG REGIO B2
Kai Stryczynski Deputy Head of Unit DG REGIO B2
Daniel Mouqueacute Evaluation Unit DG REGIO B2
CSIL Evaluation Team
Massimo Florio Evaluation team Director CSIL
Julie Pellegrin Evaluation team Project Manager CSIL
Silvia Vignetti Evaluation team CSIL
Emanuela Sirtori Evaluation team CSIL
Mike Coyne Evaluation team CSES
Malin Carlberg Evaluation team CSES
Anna-Maria Krarup Evaluation team CSES
Christian Koehler Case Study Saxony Centre for European Economic Research (ZEW)
Jaime del Castillo Case Study Castile amp Leon President INFYDE
Agnė Paliokaitė Case Study Lithuania Visionary Analytics
Elena Jarocinska Case Study Poland
Commission Officials
Katja Reppel Deputy Head of Unit Competence Centre Smart and Sustainable Growth
DG REGIO G1
Bernd Reichert Head of Unit H2020 SME EASME
Peter Wragg Head of Unit SME Access to Markets DG GROW F2
Jean David Malo Head of Unit SMEs Financial Instruments amp State Aid DG RTD B3
28
Istvan Nemeth Policy Officer - Enterprise Europe Network DG GROW F2
External Experts
Harvey Armstrong Professor Emeritus in the Department of Geography University of Sheffield
Robert Picciotto Visiting Professor Kings College London
Mark Sanders Professor University of Utrecht
Jiri Blazek Associate Professor Charles University Prague
Stakeholders ndash Case Studies
Adriana Agrimi Manager of RampI Policy Instrument Apulia Managing Authority
Kasper Westh Senior official Growth Forum Secretariat South Denmark
Simona Daukilaite
Deputy Head of the Economic Growth Operational Programme
Economic Growth OP Lithuania Managing Authority
Beatriz Casado Saenz Vice-General Director ADE (Development Agency Castile amp Leon)
Tomasz Kula Analysis and Evaluation Team Competitiveness and Innovation Department
Ministry of Infrastructure and Development (PL)
Representatives of other Work Packages
Terry Ward WP 1 Applica
Andreas Resch WP 3 Metis-Vienna
Anda Berenyi WP 4 KPMG
LEGAL NOTICE
This document has been prepared for the European Commission however it reflects the views only of the authors and the Commission cannot be held responsible for any use which may be made of the information
contained therein
More information on the European Union is available on the Internet (httpwwweuropaeu)
Luxembourg Publications Office of the European Union 2014
ISBN [number]
doi[number]
copy European Union 2015
Reproduction is authorised provided the source is acknowledged
Printed in [Country]
PRINTED ON ELEMENTAL CHLORINE-FREE BLEACHED PAPER (ECF)
PRINTED ON TOTALLY CHLORINE-FREE BLEACHED PAPER (TCF) PRINTED ON RECYCLED PAPER
PRINTED ON PROCESS CHLORINE-FREE RECYCLED PAPER (PCF)
Europe Direct is a service to help you find answers to your questions about the European Union
Freephone number ()
00 800 6 7 8 9 10 11
() The information given is free as are most calls (though some operators phone boxes or hotels may charge you)
13
Figure 3 Paid amount by mode of delivery in the eight OPs
0 10 20 30 40 50 60 70 80 90 100
CZ - CzechRepublic
DE - Saxony
DK - Denmark
ES - Castilla yLeoacuten
FR - Icircle de France
IT - Apulia
LT - Lithuania
PL - Poland
Equity finance + Repayable financial support
Consulting services + training + search of businesspartnersConsulting advice technical assistance
Consulting advice technical assistance +Information campaing eventsEquity finance
Grants
Grants + consulting services + training
Grants + Consulting advice technical assistance
Grants + Loans + Information campaigns
Grants + Provision of infrastructure and services +Consulting advice technical assistanceGrants + training
Information campaign events seminars
Provision of infrastructure and services +Consulting advice technical assistanceProvision of infrastructures
Repayable financial support
Source CSIL elaboration Note Paid amount refers to both ERDF and public contributions
14
The eight OPs have provided of support to around 48 thousand SMEs representing 20 of the
total number of beneficiary SMEs ascribable to the full sample of 50 OPs The number of
beneficiary SMEs is the highest for the OPs of Poland and Lithuania with more than 10
thousand and 12 thousand beneficiaries on the other hand the French OP has supported less
than 300 SMEs
Figure 4 Number of beneficiary SMEs of the eight OPs
00
10
20
30
40
50
60
70
80
90
100
0
2000
4000
6000
8000
10000
12000
14000
PL - Poland LT - Lithuania IT - Apulia ES - Castilla yLeoacuten
CZ - CzechRepublic
DE - Saxony FR - Icircle de France
Number of beneficiary SMEs Share of beneficiary SMEs over the total number of SMEs in the target area
Source CSIL elaboration Note Missing data for Denmark since the exact number of beneficiary SMEs is not available
In order to assess the intervention strategy of the OPs besides the absolute number of
beneficiaries it is particularly interesting to look at the distribution of beneficiaries according to
their size and technology intensity The analysis on the 50 OPs has revealed that the micro
enterprises generally represent the large majority of SMEs benefiting from ERDF support
(54) followed by small (30) and medium enterprises (16) The analysis has documented
the predominantly low technological intensity of beneficiary SMEs the majority of SMEs (53)
belong to sectors with a low share of business RampD expenditure over the value added by
sector However it is also noted that almost one quarter of all beneficiaries (24) has a
medium-high technological level Medium low-tech or high tech companies represent a lower
share of all the identified beneficiaries ie 14 and 9 respectively
The proportion of beneficiary SMEs in the eight OPs provides a more diversified picture (Figure
5 and 6) The Czech OP Enterprise and Innovation has directed the public support mainly to
small and medium size companies with a fair distribution in terms of technology intensity
Conversely the regional Apulia OP target micro enterprises characterised by either a low or a
medium-high technology intensity The Lithuanian OP has mostly supported low-tech
companies without significant differentiation in terms of size
15
Figure 5 Share of beneficiary SMEs by size class in the eight OPs
0
10
20
30
40
50
60
70
80
90
100
CZ - Czech Republic(Innov)
ES - Castilla y Leoacuten FR - Icircle de France IT - Apulia LT - Lithuania PL - Poland
Micro enterprises Small enterprises Medium enterprises
Source CSIL elaboration Note Missing data for Saxony and Denmark since the size class of beneficiary SMEs is not
available
Figure 6 Share of beneficiary SMEs by technology intensity level in the eight OPs
0
10
20
30
40
50
60
70
80
90
100
CZ - CzechRepublic
DE - Saxony ES - Castilla yLeoacuten
FR - Icircle deFrance
IT - Apulia LT - Lithuania PL - Poland
Low tech
Medium-low tech
Medium-high tech
High tech
Source CSIL elaboration Missing data for Denmark since the level of technological intensity cannot be estimated due
to missing data on sectoral disaggregation of beneficiary SMEs
Whether the characteristics of beneficiary SMEs simply mirror the specific characteristics of the
population of SMEs in the area covered by the OPs or result from different logics of
intervention underneath the OPs or from a mix of the two possible reasons is investigated in
the case studies
16
2 RESULTS OF THE SEMINAR
The aim of a ldquostakeholder seminarrdquo held on 29th April 2015 was to present the preliminary
findings and the main issues identified in other tasks undertaken for this Work Package and
especially those emerging from the eight case studies of Operational Programmes and to
discuss the policy implications and main lessons with Commission staff the evaluation team
members (and representatives of other Work Packages) academic experts and people
involved in the implementation of the Operational Programmes on the ground (see list of
participants in Annex) The following provides an overview setting out the main highlights in
the results from the presentations of the eight case studies
The seminar was organised in relation to three themes as follows
1) Targeting high vs low tech firms the case studies of Lithuania Saxony and Poland
2) Promoting widespread vs selective instruments the case studies of Apulia Castile amp
Leon and the Czech Republic
3) ERDF and the regional policy mix the case studies of Icircle-de-France and Denmark
Other issues that it was intended to highlight during the course of the discussion included
The issue of direct versus indirect support
Economic development versus anti-cyclical intervention
Supporting enabling organisations
Supporting individual enterprises as against partnerships
21 Targeting high vs low tech firms
In Lithuania the challenge was to build competitive advantage on the basis of labour-intensive
technologies The traditional sectors were in need of upgrading and the majority of the funds
were allocated to low tech companies In Saxony there was a demand driven approach but
also a realisation that low tech firms can improve competitiveness through cost reduction
Technologyprocess upgrading as subset to innovation can be justified but concentration of
spending on RampD has established Saxony as one of the German RampD powerhouses and
contributed to market access an increase in turnover and employment growth In Poland it
was thought that for countries that are not leading technological change the returns from
innovation are particularly high in low-tech manufacturing sectors but that as a country
approaches the technological frontier the policy should focus on RampD and innovative start-up
In discussion a central question was posed where does the investment pay most
22 Promoting widespread vs selective instruments
In Apulia the strategy was adjusted through re-programming to provide broad support to
SMEs to allow them to survive during the crisis and recession a dual approach was adopted
with selective support for SMEs with the internal capacity to manage innovation processes
including demand-side measures In Castile amp Leon the impact of the crisis was also intense
and broadly-based support was necessary but there were also efforts to build up the support
infrastructure and to provide in-depth support to enterprises identified as capable of innovation
and growth In the Czech Republic there was again both broadly-based and selective support
especially to address the ldquoBranch-plant syndromerdquo (where branches of international firms allow
little room for independent development by local suppliers) There was a focus on transferring
RampD results into production by stimulating demand for RampD results with 13 of the funds
going to support for innovation activities
17
23 ERDF and the regional policy mix
The last two cases are examples of OPs for areas which are relatively prosperous and where
RampD and innovation are relatively strong The ERDF budgets however were relatively small
In the Icircle-de-France (IdF) there was a pragmatic and demand-driven implementation
palliating perceived gaps in regional public support and enlarging the available financial
support targeting high growth high tech sectors appears to pay off in the IdF context In
Denmark there was a more strategic approach which was well integrated into national
strategy but with flexible implementation with strong stakeholder involvement in 6 regional
programmes There were interesting applications of the triple helix model amp successful cluster
developments
In all cases there was comment on the strength of monitoring and evaluation systems These
varied considerably from a relatively under-developed system in Apulia to a relatively strong
one in Icircle-de-France Denmark had organised a counterfactual analysis of enterprises
supported by the OP as against similar enterprises not receiving support
24 Synthesis
241 Diversity across themes
The first impression made by the presentations was the diversity of the interventions in the
eight cases There are several dimensions to these differences beginning with the context in
which the OP was implemented where there were differences relating to
The size of the regionsMember States targeted The absolute and relative size of the Programmes within the regions and countries in which
they operated and the effects that could reasonably be expected from them The size and structure of the SME population its sectoral distribution and its capacities
and assets The economic context within which the OPs operated and especially the way that the
economic crisis impacted on each area over the course of the programming period The endowment of SME and innovation support infrastructure and culture determining the
base on which the OPs could build
In fact the detailed investigations have confirmed the importance of the specific context in
which each OP was conceived and implemented for the determination of the nature of the
policy instruments used and the results to be expected from them This context is important
for any fair assessment of the achievements or otherwise of each Programme
Nonetheless when it came to the processes used to promote SMEs and innovation the
differences could often be considered as involving variations around a series of central themes
In all the cases considered there was a strong emphasis on promoting innovation as a
central objective yet this was done in a variety of ways and had differing relationships with
the objective of SME promotion In a number of cases support for SMEs was itself very much
seen as part of this process of encouraging innovation including in the case of the Icircle-de-
France where it involved encouraging new forms of enterprise dedicated to pursuing social
innovation In other cases however there was a clear commitment to provide general support
to SMEs and especially after the extent of the economic crisis became apparent some re-
programming to ensure this
Consequently targeting policies were not as clear cut as might have been expected There
were cases where SMEs were targeted directly ndash Apulia and Castile amp Leon but even here
there was also an element of trying to ensure that enterprises that were capable of benefitting
from support were the one to receive it while elsewhere a subtle lsquosoft targetingrsquo was more
evident where the instruments were shaped to achieve a certain selectivity not by defining
exclusions but by requiring for instance a commitment to change and growth on the part of
18
participants In Denmark for example those encouraged to become members of cluster
organisations had to be interested in developing their growth potential if their participation
was to serve any purpose This in effect led to a self-exclusion by those not willing to play
along with the support offered
The nature of the instruments used to implement OPs were shaped by a number of factors
Just as the objectives of an OP must take into account a large variety of details relating to the
circumstances of the relevant region or country so the precise characteristics of the
instruments to be applied must reflect not only the particular purposes for which they are to be
used the nature of the target group to be addressed and the economic and social
circumstances of the area concerned but the legacy of past interventions as well in the form
of existing support infrastructure and the capabilities developed in preceding periods In other
words support instruments are built on past actions both for positive reasons (exploiting
existing assets) but also because of their familiarity or a certain institutional inertia In any
event the large variety of circumstances in which the particular features of instruments are
determined gives rise to a wide array of actual policy instruments The review of 50 OPs
conducted as part of the evaluation identified 648 different instruments
This large variety of specific instruments however is mainly accounted for in that they are
often designed as elaborations of well-established approaches but addressing particular needs
and circumstances and also a variety of potential targets So building capacities and
competences can be undertaken for enterprises and their managers of varying degrees of
sophistication and background knowledge and can relate to a variety of matters from technical
issues to general management marketing exporting or more specialised issues such as IP
management The process of capacity building can therefore take many forms
The extent of the provision of access to finance is complicated by the question of whether or
not the provision of direct grants counts as part of this function Some substantial sums were
provided in this form by some of the OPs However generally an expected move towards the
provision of more indirect finance ndash loans and equity through intermediaries - was not as
marked as may have been anticipated General access to finance measures (equity
guarantees and reduction of credit interest) accounted for 38 of the funds allocated by the
Lithuanian OP and repayable financial support for 26 of the Apulian OP equity finance 14
in the case of Icircle-de-France 23 for loans and 35 for equity finance in that of Saxony The
other OPs had rather small amounts devoted to indirect financial instruments if any at all An
explanation offered of the small allocations to these instruments in some OPs was that the
crisis discouraged experimentation in this area that it is relatively difficult and expensive to
manage financial instruments and outside the experience of most Managing Authorities that
relatively large sums are necessary to make any appreciable impact and that results can often
take a long time to materialise
There were considerable differences in the extent to which there was provision of direct
support to enterprises In Saxony over 90 of the funds were in the form of grants and in
Icircle-de-France and in Apulia grants largely paid directly to enterprises accounted for 56 and
41 respectively of the funds allocated In Denmark by contrast no grants were paid directly
to enterprises unless they were partners in projects receiving support for developing clusters
or relationships with universities or in a small number of cases where they received funds to
hire private sector business advisers
It is useful to distinguish between different types of direct support In Poland and in Saxony a
large proportion of the direct support was for investments in innovative undertakings In
Apulia although the main part of support went to individual enterprises or SMEs it was more
evenly split between support for investment (by micro and small firms) and investment in
research In Icircle-de-France the weight of the direct support was for research projects
19
It is also interesting that analysis of a wider group of 50 OPs shows that manufacturing firms
received 33 of support ndash much greater than their share in the economy as a whole It also
showed that more than 50 of support has been directed to low-tech firms
Different forms of business support were available across the OPs including access to public
and private sources of information and advice incubator services and assistance for exporters
Castile amp Leon targeted the improvement of management capacities and this approach was
implicit in a number of other OPs
Approaches to support for innovation also took different forms Overall in the broader range
of OPs examined 24 of support was for RampD and a similar amount for business development
and direct support for RampD in collaborative and non-collaborative projects was a significant
feature of the OPs for Apulia Castile amp Leon Icircle-de-France Lithuania Poland and Saxony but
not in the Czech Republic and Denmark where FP7 was thought to be the appropriate vehicle
In Saxony strengthening the research base of enterprises in the local economy and promoting
the exploitation of knowledge was central to the OP so that the majority of the funds were
provided for investment in fixed capital and in supporting RampD This implied a certain targeting
within the SME population In Icircle-de-France the bulk of the support also went to research
projects and support for technology transfer and incubators though there was also support for
SME creation in distressed areas for access to finance and for social innovation projects In
Denmark the focus was more on promoting clusters and encouraging links between enterprises
and science institutions
In some cases however the picture was more mixed In Lithuania where 38 of funding went
to access to finance measures a further 30 to up-grading technology and processes but
there was also direct support for RampD and RampD infrastructure and support for networking and
clusters promoting innovation Similarly in Apulia there was support for research by SMEs
and measures to promote consulting services for technical innovation regional innovation
partnerships and aid for access to ICT alongside aid to investment in micro and small firms
and credit guarantees and support for tourism
Knowledge transfer also featured in many of the OPs Building relationships between
knowledge institutions and enterprises was an important objective for Denmark as part of
developing regional innovation capacities though the results were mixed at least in part
because of an unresponsive culture in certain universities In other cases these relationships
were promoted by collaborative research projects (Icircle-de-France Saxony) and in the case of
Lithuania by the use of vouchers Overall however it is perhaps surprising that building
relationships between knowledge institutions and enterprises did not have a higher profile
The development of clusters was an instrument used in the Czech Republic Lithuania and
Denmark where in some regions it absorbed a large proportion of the available funds and
where the focus was on emerging sectors such as clean technology energy health and welfare
and the experience economy Cluster support in this case consisted of a relatively complex set
of services provided for cluster members In the Czech Republic and Lithuania cluster
development was itself less developed and related to low-tech sectors with potential for
innovation and growth
Underlying these differences between Programmes there were variations in the approach to
governance This has become an important issue for all of the regions and countries
considered In part this is linked to the aspiration at least to establish transparent evidence-
based policy processes which has brought in the development of monitoring and evaluation
systems but there are more central elements of governance to do with who is involved in
decision-making and how decisions are taken that are also part of the picture The
development of stakeholder involvement in strategy formation in the setting of priorities and
even in elements of implementation was apparent in many of the cases throughout the
20
programming period In Denmark the whole (national and EU) strategy was based from the
beginning on a national consensus established through political and open public debates and
implemented through regional bodies with a strong stakeholder representation In Apulia a
self-evaluation exercise led to new departures in response to the crisis
There were however other issues of governance alluded to in the seminar relating to but the
alignment of the OP with national strategies and the organisational mechanisms adopted to
implement the strategy chosen by each OP These can have considerable influence on the
degree to which the Managing Authority can directly influence the implementation
mechanisms
Finally account must be taken of the differential impacts of the recession In Apulia and
Castile amp Leon there was formal reprogramming largely as a result of the recession and
changes in the instrument set utilised To a certain extent this meant a scaling down of
ambitions when for many enterprises it was a matter of survival rather than developing new
ventures Even here though the story does not always move in the same direction In the case
of Apulia for instance while it was necessary in part to refocus support on the broad range of
enterprises suffering from the recession at the same time the crisis acted as a stimulus to new
thinking after the conduct of a self-evaluation exercise
242 A common framework
Overall it can be seen that within the diversity shown by the eight cases there are at least a
number of common themes which are belong addressed in different ways The question does
arise however of whether it might be possible to go further to offer an explanation of the
diversity
External experts at the seminar advised that a theoretical framework should be sought to
make greater sense of the quantitative material and provide the basis for a more deliberative
judgement on the effectiveness of policy and how support funds can be best spent
One possibility is to take the differing circumstances of the OPs as themselves being an
explanatory factor and in a further step see the differences in the nature of the instruments
deployed as being part of an evolutionary process This approach also has the merit of linking
a debate on instruments with broader considerations in the promotion of innovation and
competitiveness at a European level
The reference in section 1 above to the position of the countries covered by the case studies
and their innovation performance as characterised by the Innovation Union Scoreboard and
in further detail at a regional level by the Regional Innovation Scoreboard 2012 allows a
distinction to be made between countries and regions in four categories - lsquoleadersrsquo lsquofollowersrsquo
those with a moderate lsquoperformancersquo and those lsquocatching-uprsquo The respective positions of the
eight cases have been set out in section 1
The approach suggested at the seminar was essentially to explore the hypothesis that the
overall lsquoinnovationrsquo position of regionscountries determines the types of instrument
used their targeting and ultimately their relative performance It may be that the
categorisation help us explain the differences in the objectives set the instruments that are
appropriate and their targeting and that this in turn also influences the performance that can
be expected Regionscountries for instance that are in the lsquoless developedrsquo categories may
have to strengthen their basic support infrastructure and service provision and the
performance of the enterprise base and that of other important players such as knowledge
institutions public authorities etc The regionscountries in the more lsquoadvancedrsquo positions on
the other hand have to build on their strengths in order to maintain or enhance their position
by promoting more productive research and strengthening the links between the science base
and enterprises
21
This possible framework provides an interesting line of enquiry to be followed up in further
stages of the evaluation It does however also address other issues raised in the seminar
such as whether support should be directed to high-tech enterprises or as was argued in
relation to a number of the countries present the gains to be had from the improvement of
the performance of mid and low-tech firms are more relevant in certain stages of
development
22
3 NEXT STEP THEORY-BASED IMPACT EVALUATIONS
As the implementation of the evaluation study proceeds and the case studies (Task 3) are
being drafted the Team is in the course of identifying three policy instruments to be assessed
by as many theory-based impact evaluations as foreseen in Task 4 The three instruments
should be selected out of the long list of seven instruments suggested in the First Intermediate
Report and in consultation with the European Commission
The Team puts forward hereby a possible list of three policy instruments The main criteria
considered for their selection are
i The degree of representativeness of the typologies of policy instruments used in the 50
OPs as outlined in the First Intermediate Report the most significant categories of
policy instruments in terms of public expenditure are
Business creation and development ie instruments designed to stimulate
investments in the business sector without a predominant emphasis on RampD
and innovation
Support for RampD projects
Support for the development of technological and non-technological innovation
without any research and experimental development activities
ii The feasibility of a theory-based impact evaluation based on a survey of beneficiaries
which implies the availability of a sufficiently large number of beneficiaries and the
possibility to easily get their email contacts also with the help of the Managing
Authority or the implementing body the best option is to have at least some hundreds
beneficiary SMEs for each instrument
iii The importance of the policy instrument within the policy mix of the OP which ensures
the availability of a good amount of information resulting from the case study
regarding in particular its logic of intervention information about beneficiaries and
effectiveness
iv Preference is assigned to instruments on which no other surveys to beneficiaries have
been conducted so far in order not to put excessive burden on the same SMEs which
could undermine their willingness to contribute to our study
Based on these considerations the three policy instruments we propose for a theory-based
impact evaluation are presented in the table below It can be noticed that the list also ensures
geographical balance between Convergence and Competitiveness and Employment region as
well as Old and New Member States and regional and national OPs For the sake of
completeness and comparability for all the seven candidate instruments the pros and cons for
selecting each of them are detailed
23
Table 4 Comparison of the policy instruments and reasons for selection
Proposed for
selection
Type of policy
instrument
Selected policy
instrument
Operational Programme and
type of regioncountry
Descriptive information Specific reason for selection
for a TBIE Possible reasons for
rejection
YES Business creation and development
ldquoAid to investment projects by micro and small enterprisesrdquo
Regional OP Apulia (Italy) - Convergence region
- Old Member State
The instrument supports the purchase of machineries computer systems buildings construction works for enterprises in order to encourage the development of micro and small companies It benefitted more than 3 thousand SMEs For around 30 of beneficiaries grants have been combined with credit guarantees
- Very common type of SME support on which vast literature has been produced
- Very large number of beneficiary SMEs
- The strong relationship already established with local stakeholders and many SMEs would allow to easily and quickly test the surveyrsquos questionnaires before the launch of the three TBIEs
- For some SMEs opportunity to analyse the complimentary efforts of two forms of support (grants and a combination of grants and guarantees) and their respective effectiveness
- None
YES Support for RampD projects
ldquoGrants for Industrial Research and Experimental Developmentrdquo
Regional OP Castilla y Leon (Spain) - Competitiveness and Employment region
- Old Member State
The instrument encourages the development of RampD projects with the purpose of increasing the basis of number of innovative enterprises investment and personnel in RampD In total 759 projects of SMEs have been supported through grants 204 SMEs have conducted their project in collaboration with research organisations
- In analysing the achievement of beneficiary SMEs as well as the behavioural change opportunity to distinguish between SMEs which have realized their projects independently rather than in collaboration with a research centre
- According to the country expert among all the policy instruments of this OP this is the one for which it would be easier to get the contact details of beneficiary SMEs
- Possibility to get active collaboration by the regional authority ADE eg sending out an introductory letter to all
- None
24
Proposed for
selection
Type of policy
instrument
Selected policy
instrument
Operational Programme and
type of regioncountry
Descriptive information Specific reason for selection
for a TBIE Possible reasons for
rejection
SMEs mentioning that they will receive an invitation to a survey and inviting them to reply
YES Support for the development of technological and non-technological innovation
ldquoFinancing of individual projects for SMEsrdquo
National OP Poland Innovative Economy - Convergence country
- New Member State
The instrument provides grants to support the technological innovation of SMEs In particular it aims to stimulate the adoption of more risky and innovative solutions The instrument performed far better than expected 698 projects have been realised up to 2013 by approximately as many SMEs The instrument is delivered by a financial intermediary
- This instrument belongs to the OP which has provided the largest financial contribution to SMEs within the full sample of 50 OPs furthermore this is one of the core instrument of the programme as also reflected in the volume of public contribution which is among the highest of the OP (more than EUR 300 million fully targeted to SMEs)
- Opportunity to examine the role played by the intermediary according to the perceptions and opinions of beneficiary SMEs
- None
NO Support for RampD projects
ldquoRampD project grants for individual enterprisesrdquo
Germany regional OP Saxony - Convergence region
- Old Member State
The instrument provides grants to individual enterprises for supporting the implementation of RampD projects
- Evidence of achievement is already available since the instrument was subject of another evaluation study and enterprise survey a few years ago The TBIE would allow to better qualify the instrumentsrsquo achievements and the causal chain leading to the certain effects
- According to the country experts beneficiary SMEs may be reluctant to participate to another survey
- Less than 200 beneficiary SMEs a lower number as compared with other candidate policy instruments
- It is still uncertain whether it will be possible to get the email addresses of beneficiary SMEs
25
Proposed for
selection
Type of policy
instrument
Selected policy
instrument
Operational Programme and
type of regioncountry
Descriptive information Specific reason for selection
for a TBIE Possible reasons for
rejection
NO Support for the development of technological and non-technological innovation
ldquoSupport for technological upgrade - LEADER LTrdquo
Lithuania - Economic Growth - Convergence country
- New Member State
The instrument supports the increase of productivity in enterprises by supporting production technology upgrading The investment into the acquisition or upgrade of technologies and related internal engineering infrastructures are supported
- Email contacts particularly easy to be collected
- Result indicators are available due to an effective Structural Funds monitoring system and because the instrument was already subject of a previous evaluation study
- Very low number of beneficiary SMEs (69) which would make this instrument less suitable for launching an on-line survey as compared with other candidate instruments
NO Support for the development of technological and non-technological innovation
ldquoSupport for non-technological innovation - PROCESS LTrdquo
Lithuania - Economic Growth - Convergence country
- New Member State
The instrument aims to increase productivity in enterprises by implementing modern management methods and processes except of personnel management systems The purchase of external consulting services is supported in order to upgrade enterprises management processes
- Email contacts particularly easy to be collected
- Result indicators are available due to an effective Structural Funds monitoring system and because the instrument was already subject of a previous evaluation study
- The instrument is considered highly relevant by the target beneficiaries
- Very low number of beneficiary SMEs (119)
- As compared with other categories of policy instruments support for non-technological innovation is relatively less significant and representative of the typical forms of support provided to SMEs in the EU
NO Support for networking
ldquoInteraction on Innovationrdquo later merged with ldquoCluster relationshiprdquo
Denmark Innovation and Knowledge OP - Competitiveness and Employment country
- Old Member State
The policy instrument aims at analysing opportunities for creating clusters promoting networks and the formation of clusters of SMEs in particular as well as clusters of supplier networks for SMEs These objectives are pursued by providing grants to SMEs in partnership with universities (according to the triple helix model)
- Opportunity to better analyse the effects of a policy instrument on which a vast amount of literature has been produced
- Opportunity to dig into the collaboration mechanisms between SMEs and universities
- As compared with other categories of policy instruments support for networking is relatively less significant and representative of the typical forms of support provided to SMEs in the EU
- The number and characteristics of SMEs benefitting from this instrument remain unknown even after implementing the case
26
Proposed for
selection
Type of policy
instrument
Selected policy
instrument
Operational Programme and
type of regioncountry
Descriptive information Specific reason for selection
for a TBIE Possible reasons for
rejection
study The lack of data at policy instrument level prevents from identifying the beneficiary SMEs to which launching the on-line survey
27
4 ANNEX SEMINAR PARTICIPANTS
Name Description Organisation
DG REGIO Evaluation Unit
Rudolf Niessler Director DG REGIO B Policy
Veronica Gaffey Head of Evaluation Unit DG REGIO B2
Marielle Richeacute Evaluation Unit DG REGIO B2
Kai Stryczynski Deputy Head of Unit DG REGIO B2
Daniel Mouqueacute Evaluation Unit DG REGIO B2
CSIL Evaluation Team
Massimo Florio Evaluation team Director CSIL
Julie Pellegrin Evaluation team Project Manager CSIL
Silvia Vignetti Evaluation team CSIL
Emanuela Sirtori Evaluation team CSIL
Mike Coyne Evaluation team CSES
Malin Carlberg Evaluation team CSES
Anna-Maria Krarup Evaluation team CSES
Christian Koehler Case Study Saxony Centre for European Economic Research (ZEW)
Jaime del Castillo Case Study Castile amp Leon President INFYDE
Agnė Paliokaitė Case Study Lithuania Visionary Analytics
Elena Jarocinska Case Study Poland
Commission Officials
Katja Reppel Deputy Head of Unit Competence Centre Smart and Sustainable Growth
DG REGIO G1
Bernd Reichert Head of Unit H2020 SME EASME
Peter Wragg Head of Unit SME Access to Markets DG GROW F2
Jean David Malo Head of Unit SMEs Financial Instruments amp State Aid DG RTD B3
28
Istvan Nemeth Policy Officer - Enterprise Europe Network DG GROW F2
External Experts
Harvey Armstrong Professor Emeritus in the Department of Geography University of Sheffield
Robert Picciotto Visiting Professor Kings College London
Mark Sanders Professor University of Utrecht
Jiri Blazek Associate Professor Charles University Prague
Stakeholders ndash Case Studies
Adriana Agrimi Manager of RampI Policy Instrument Apulia Managing Authority
Kasper Westh Senior official Growth Forum Secretariat South Denmark
Simona Daukilaite
Deputy Head of the Economic Growth Operational Programme
Economic Growth OP Lithuania Managing Authority
Beatriz Casado Saenz Vice-General Director ADE (Development Agency Castile amp Leon)
Tomasz Kula Analysis and Evaluation Team Competitiveness and Innovation Department
Ministry of Infrastructure and Development (PL)
Representatives of other Work Packages
Terry Ward WP 1 Applica
Andreas Resch WP 3 Metis-Vienna
Anda Berenyi WP 4 KPMG
LEGAL NOTICE
This document has been prepared for the European Commission however it reflects the views only of the authors and the Commission cannot be held responsible for any use which may be made of the information
contained therein
More information on the European Union is available on the Internet (httpwwweuropaeu)
Luxembourg Publications Office of the European Union 2014
ISBN [number]
doi[number]
copy European Union 2015
Reproduction is authorised provided the source is acknowledged
Printed in [Country]
PRINTED ON ELEMENTAL CHLORINE-FREE BLEACHED PAPER (ECF)
PRINTED ON TOTALLY CHLORINE-FREE BLEACHED PAPER (TCF) PRINTED ON RECYCLED PAPER
PRINTED ON PROCESS CHLORINE-FREE RECYCLED PAPER (PCF)
Europe Direct is a service to help you find answers to your questions about the European Union
Freephone number ()
00 800 6 7 8 9 10 11
() The information given is free as are most calls (though some operators phone boxes or hotels may charge you)
14
The eight OPs have provided of support to around 48 thousand SMEs representing 20 of the
total number of beneficiary SMEs ascribable to the full sample of 50 OPs The number of
beneficiary SMEs is the highest for the OPs of Poland and Lithuania with more than 10
thousand and 12 thousand beneficiaries on the other hand the French OP has supported less
than 300 SMEs
Figure 4 Number of beneficiary SMEs of the eight OPs
00
10
20
30
40
50
60
70
80
90
100
0
2000
4000
6000
8000
10000
12000
14000
PL - Poland LT - Lithuania IT - Apulia ES - Castilla yLeoacuten
CZ - CzechRepublic
DE - Saxony FR - Icircle de France
Number of beneficiary SMEs Share of beneficiary SMEs over the total number of SMEs in the target area
Source CSIL elaboration Note Missing data for Denmark since the exact number of beneficiary SMEs is not available
In order to assess the intervention strategy of the OPs besides the absolute number of
beneficiaries it is particularly interesting to look at the distribution of beneficiaries according to
their size and technology intensity The analysis on the 50 OPs has revealed that the micro
enterprises generally represent the large majority of SMEs benefiting from ERDF support
(54) followed by small (30) and medium enterprises (16) The analysis has documented
the predominantly low technological intensity of beneficiary SMEs the majority of SMEs (53)
belong to sectors with a low share of business RampD expenditure over the value added by
sector However it is also noted that almost one quarter of all beneficiaries (24) has a
medium-high technological level Medium low-tech or high tech companies represent a lower
share of all the identified beneficiaries ie 14 and 9 respectively
The proportion of beneficiary SMEs in the eight OPs provides a more diversified picture (Figure
5 and 6) The Czech OP Enterprise and Innovation has directed the public support mainly to
small and medium size companies with a fair distribution in terms of technology intensity
Conversely the regional Apulia OP target micro enterprises characterised by either a low or a
medium-high technology intensity The Lithuanian OP has mostly supported low-tech
companies without significant differentiation in terms of size
15
Figure 5 Share of beneficiary SMEs by size class in the eight OPs
0
10
20
30
40
50
60
70
80
90
100
CZ - Czech Republic(Innov)
ES - Castilla y Leoacuten FR - Icircle de France IT - Apulia LT - Lithuania PL - Poland
Micro enterprises Small enterprises Medium enterprises
Source CSIL elaboration Note Missing data for Saxony and Denmark since the size class of beneficiary SMEs is not
available
Figure 6 Share of beneficiary SMEs by technology intensity level in the eight OPs
0
10
20
30
40
50
60
70
80
90
100
CZ - CzechRepublic
DE - Saxony ES - Castilla yLeoacuten
FR - Icircle deFrance
IT - Apulia LT - Lithuania PL - Poland
Low tech
Medium-low tech
Medium-high tech
High tech
Source CSIL elaboration Missing data for Denmark since the level of technological intensity cannot be estimated due
to missing data on sectoral disaggregation of beneficiary SMEs
Whether the characteristics of beneficiary SMEs simply mirror the specific characteristics of the
population of SMEs in the area covered by the OPs or result from different logics of
intervention underneath the OPs or from a mix of the two possible reasons is investigated in
the case studies
16
2 RESULTS OF THE SEMINAR
The aim of a ldquostakeholder seminarrdquo held on 29th April 2015 was to present the preliminary
findings and the main issues identified in other tasks undertaken for this Work Package and
especially those emerging from the eight case studies of Operational Programmes and to
discuss the policy implications and main lessons with Commission staff the evaluation team
members (and representatives of other Work Packages) academic experts and people
involved in the implementation of the Operational Programmes on the ground (see list of
participants in Annex) The following provides an overview setting out the main highlights in
the results from the presentations of the eight case studies
The seminar was organised in relation to three themes as follows
1) Targeting high vs low tech firms the case studies of Lithuania Saxony and Poland
2) Promoting widespread vs selective instruments the case studies of Apulia Castile amp
Leon and the Czech Republic
3) ERDF and the regional policy mix the case studies of Icircle-de-France and Denmark
Other issues that it was intended to highlight during the course of the discussion included
The issue of direct versus indirect support
Economic development versus anti-cyclical intervention
Supporting enabling organisations
Supporting individual enterprises as against partnerships
21 Targeting high vs low tech firms
In Lithuania the challenge was to build competitive advantage on the basis of labour-intensive
technologies The traditional sectors were in need of upgrading and the majority of the funds
were allocated to low tech companies In Saxony there was a demand driven approach but
also a realisation that low tech firms can improve competitiveness through cost reduction
Technologyprocess upgrading as subset to innovation can be justified but concentration of
spending on RampD has established Saxony as one of the German RampD powerhouses and
contributed to market access an increase in turnover and employment growth In Poland it
was thought that for countries that are not leading technological change the returns from
innovation are particularly high in low-tech manufacturing sectors but that as a country
approaches the technological frontier the policy should focus on RampD and innovative start-up
In discussion a central question was posed where does the investment pay most
22 Promoting widespread vs selective instruments
In Apulia the strategy was adjusted through re-programming to provide broad support to
SMEs to allow them to survive during the crisis and recession a dual approach was adopted
with selective support for SMEs with the internal capacity to manage innovation processes
including demand-side measures In Castile amp Leon the impact of the crisis was also intense
and broadly-based support was necessary but there were also efforts to build up the support
infrastructure and to provide in-depth support to enterprises identified as capable of innovation
and growth In the Czech Republic there was again both broadly-based and selective support
especially to address the ldquoBranch-plant syndromerdquo (where branches of international firms allow
little room for independent development by local suppliers) There was a focus on transferring
RampD results into production by stimulating demand for RampD results with 13 of the funds
going to support for innovation activities
17
23 ERDF and the regional policy mix
The last two cases are examples of OPs for areas which are relatively prosperous and where
RampD and innovation are relatively strong The ERDF budgets however were relatively small
In the Icircle-de-France (IdF) there was a pragmatic and demand-driven implementation
palliating perceived gaps in regional public support and enlarging the available financial
support targeting high growth high tech sectors appears to pay off in the IdF context In
Denmark there was a more strategic approach which was well integrated into national
strategy but with flexible implementation with strong stakeholder involvement in 6 regional
programmes There were interesting applications of the triple helix model amp successful cluster
developments
In all cases there was comment on the strength of monitoring and evaluation systems These
varied considerably from a relatively under-developed system in Apulia to a relatively strong
one in Icircle-de-France Denmark had organised a counterfactual analysis of enterprises
supported by the OP as against similar enterprises not receiving support
24 Synthesis
241 Diversity across themes
The first impression made by the presentations was the diversity of the interventions in the
eight cases There are several dimensions to these differences beginning with the context in
which the OP was implemented where there were differences relating to
The size of the regionsMember States targeted The absolute and relative size of the Programmes within the regions and countries in which
they operated and the effects that could reasonably be expected from them The size and structure of the SME population its sectoral distribution and its capacities
and assets The economic context within which the OPs operated and especially the way that the
economic crisis impacted on each area over the course of the programming period The endowment of SME and innovation support infrastructure and culture determining the
base on which the OPs could build
In fact the detailed investigations have confirmed the importance of the specific context in
which each OP was conceived and implemented for the determination of the nature of the
policy instruments used and the results to be expected from them This context is important
for any fair assessment of the achievements or otherwise of each Programme
Nonetheless when it came to the processes used to promote SMEs and innovation the
differences could often be considered as involving variations around a series of central themes
In all the cases considered there was a strong emphasis on promoting innovation as a
central objective yet this was done in a variety of ways and had differing relationships with
the objective of SME promotion In a number of cases support for SMEs was itself very much
seen as part of this process of encouraging innovation including in the case of the Icircle-de-
France where it involved encouraging new forms of enterprise dedicated to pursuing social
innovation In other cases however there was a clear commitment to provide general support
to SMEs and especially after the extent of the economic crisis became apparent some re-
programming to ensure this
Consequently targeting policies were not as clear cut as might have been expected There
were cases where SMEs were targeted directly ndash Apulia and Castile amp Leon but even here
there was also an element of trying to ensure that enterprises that were capable of benefitting
from support were the one to receive it while elsewhere a subtle lsquosoft targetingrsquo was more
evident where the instruments were shaped to achieve a certain selectivity not by defining
exclusions but by requiring for instance a commitment to change and growth on the part of
18
participants In Denmark for example those encouraged to become members of cluster
organisations had to be interested in developing their growth potential if their participation
was to serve any purpose This in effect led to a self-exclusion by those not willing to play
along with the support offered
The nature of the instruments used to implement OPs were shaped by a number of factors
Just as the objectives of an OP must take into account a large variety of details relating to the
circumstances of the relevant region or country so the precise characteristics of the
instruments to be applied must reflect not only the particular purposes for which they are to be
used the nature of the target group to be addressed and the economic and social
circumstances of the area concerned but the legacy of past interventions as well in the form
of existing support infrastructure and the capabilities developed in preceding periods In other
words support instruments are built on past actions both for positive reasons (exploiting
existing assets) but also because of their familiarity or a certain institutional inertia In any
event the large variety of circumstances in which the particular features of instruments are
determined gives rise to a wide array of actual policy instruments The review of 50 OPs
conducted as part of the evaluation identified 648 different instruments
This large variety of specific instruments however is mainly accounted for in that they are
often designed as elaborations of well-established approaches but addressing particular needs
and circumstances and also a variety of potential targets So building capacities and
competences can be undertaken for enterprises and their managers of varying degrees of
sophistication and background knowledge and can relate to a variety of matters from technical
issues to general management marketing exporting or more specialised issues such as IP
management The process of capacity building can therefore take many forms
The extent of the provision of access to finance is complicated by the question of whether or
not the provision of direct grants counts as part of this function Some substantial sums were
provided in this form by some of the OPs However generally an expected move towards the
provision of more indirect finance ndash loans and equity through intermediaries - was not as
marked as may have been anticipated General access to finance measures (equity
guarantees and reduction of credit interest) accounted for 38 of the funds allocated by the
Lithuanian OP and repayable financial support for 26 of the Apulian OP equity finance 14
in the case of Icircle-de-France 23 for loans and 35 for equity finance in that of Saxony The
other OPs had rather small amounts devoted to indirect financial instruments if any at all An
explanation offered of the small allocations to these instruments in some OPs was that the
crisis discouraged experimentation in this area that it is relatively difficult and expensive to
manage financial instruments and outside the experience of most Managing Authorities that
relatively large sums are necessary to make any appreciable impact and that results can often
take a long time to materialise
There were considerable differences in the extent to which there was provision of direct
support to enterprises In Saxony over 90 of the funds were in the form of grants and in
Icircle-de-France and in Apulia grants largely paid directly to enterprises accounted for 56 and
41 respectively of the funds allocated In Denmark by contrast no grants were paid directly
to enterprises unless they were partners in projects receiving support for developing clusters
or relationships with universities or in a small number of cases where they received funds to
hire private sector business advisers
It is useful to distinguish between different types of direct support In Poland and in Saxony a
large proportion of the direct support was for investments in innovative undertakings In
Apulia although the main part of support went to individual enterprises or SMEs it was more
evenly split between support for investment (by micro and small firms) and investment in
research In Icircle-de-France the weight of the direct support was for research projects
19
It is also interesting that analysis of a wider group of 50 OPs shows that manufacturing firms
received 33 of support ndash much greater than their share in the economy as a whole It also
showed that more than 50 of support has been directed to low-tech firms
Different forms of business support were available across the OPs including access to public
and private sources of information and advice incubator services and assistance for exporters
Castile amp Leon targeted the improvement of management capacities and this approach was
implicit in a number of other OPs
Approaches to support for innovation also took different forms Overall in the broader range
of OPs examined 24 of support was for RampD and a similar amount for business development
and direct support for RampD in collaborative and non-collaborative projects was a significant
feature of the OPs for Apulia Castile amp Leon Icircle-de-France Lithuania Poland and Saxony but
not in the Czech Republic and Denmark where FP7 was thought to be the appropriate vehicle
In Saxony strengthening the research base of enterprises in the local economy and promoting
the exploitation of knowledge was central to the OP so that the majority of the funds were
provided for investment in fixed capital and in supporting RampD This implied a certain targeting
within the SME population In Icircle-de-France the bulk of the support also went to research
projects and support for technology transfer and incubators though there was also support for
SME creation in distressed areas for access to finance and for social innovation projects In
Denmark the focus was more on promoting clusters and encouraging links between enterprises
and science institutions
In some cases however the picture was more mixed In Lithuania where 38 of funding went
to access to finance measures a further 30 to up-grading technology and processes but
there was also direct support for RampD and RampD infrastructure and support for networking and
clusters promoting innovation Similarly in Apulia there was support for research by SMEs
and measures to promote consulting services for technical innovation regional innovation
partnerships and aid for access to ICT alongside aid to investment in micro and small firms
and credit guarantees and support for tourism
Knowledge transfer also featured in many of the OPs Building relationships between
knowledge institutions and enterprises was an important objective for Denmark as part of
developing regional innovation capacities though the results were mixed at least in part
because of an unresponsive culture in certain universities In other cases these relationships
were promoted by collaborative research projects (Icircle-de-France Saxony) and in the case of
Lithuania by the use of vouchers Overall however it is perhaps surprising that building
relationships between knowledge institutions and enterprises did not have a higher profile
The development of clusters was an instrument used in the Czech Republic Lithuania and
Denmark where in some regions it absorbed a large proportion of the available funds and
where the focus was on emerging sectors such as clean technology energy health and welfare
and the experience economy Cluster support in this case consisted of a relatively complex set
of services provided for cluster members In the Czech Republic and Lithuania cluster
development was itself less developed and related to low-tech sectors with potential for
innovation and growth
Underlying these differences between Programmes there were variations in the approach to
governance This has become an important issue for all of the regions and countries
considered In part this is linked to the aspiration at least to establish transparent evidence-
based policy processes which has brought in the development of monitoring and evaluation
systems but there are more central elements of governance to do with who is involved in
decision-making and how decisions are taken that are also part of the picture The
development of stakeholder involvement in strategy formation in the setting of priorities and
even in elements of implementation was apparent in many of the cases throughout the
20
programming period In Denmark the whole (national and EU) strategy was based from the
beginning on a national consensus established through political and open public debates and
implemented through regional bodies with a strong stakeholder representation In Apulia a
self-evaluation exercise led to new departures in response to the crisis
There were however other issues of governance alluded to in the seminar relating to but the
alignment of the OP with national strategies and the organisational mechanisms adopted to
implement the strategy chosen by each OP These can have considerable influence on the
degree to which the Managing Authority can directly influence the implementation
mechanisms
Finally account must be taken of the differential impacts of the recession In Apulia and
Castile amp Leon there was formal reprogramming largely as a result of the recession and
changes in the instrument set utilised To a certain extent this meant a scaling down of
ambitions when for many enterprises it was a matter of survival rather than developing new
ventures Even here though the story does not always move in the same direction In the case
of Apulia for instance while it was necessary in part to refocus support on the broad range of
enterprises suffering from the recession at the same time the crisis acted as a stimulus to new
thinking after the conduct of a self-evaluation exercise
242 A common framework
Overall it can be seen that within the diversity shown by the eight cases there are at least a
number of common themes which are belong addressed in different ways The question does
arise however of whether it might be possible to go further to offer an explanation of the
diversity
External experts at the seminar advised that a theoretical framework should be sought to
make greater sense of the quantitative material and provide the basis for a more deliberative
judgement on the effectiveness of policy and how support funds can be best spent
One possibility is to take the differing circumstances of the OPs as themselves being an
explanatory factor and in a further step see the differences in the nature of the instruments
deployed as being part of an evolutionary process This approach also has the merit of linking
a debate on instruments with broader considerations in the promotion of innovation and
competitiveness at a European level
The reference in section 1 above to the position of the countries covered by the case studies
and their innovation performance as characterised by the Innovation Union Scoreboard and
in further detail at a regional level by the Regional Innovation Scoreboard 2012 allows a
distinction to be made between countries and regions in four categories - lsquoleadersrsquo lsquofollowersrsquo
those with a moderate lsquoperformancersquo and those lsquocatching-uprsquo The respective positions of the
eight cases have been set out in section 1
The approach suggested at the seminar was essentially to explore the hypothesis that the
overall lsquoinnovationrsquo position of regionscountries determines the types of instrument
used their targeting and ultimately their relative performance It may be that the
categorisation help us explain the differences in the objectives set the instruments that are
appropriate and their targeting and that this in turn also influences the performance that can
be expected Regionscountries for instance that are in the lsquoless developedrsquo categories may
have to strengthen their basic support infrastructure and service provision and the
performance of the enterprise base and that of other important players such as knowledge
institutions public authorities etc The regionscountries in the more lsquoadvancedrsquo positions on
the other hand have to build on their strengths in order to maintain or enhance their position
by promoting more productive research and strengthening the links between the science base
and enterprises
21
This possible framework provides an interesting line of enquiry to be followed up in further
stages of the evaluation It does however also address other issues raised in the seminar
such as whether support should be directed to high-tech enterprises or as was argued in
relation to a number of the countries present the gains to be had from the improvement of
the performance of mid and low-tech firms are more relevant in certain stages of
development
22
3 NEXT STEP THEORY-BASED IMPACT EVALUATIONS
As the implementation of the evaluation study proceeds and the case studies (Task 3) are
being drafted the Team is in the course of identifying three policy instruments to be assessed
by as many theory-based impact evaluations as foreseen in Task 4 The three instruments
should be selected out of the long list of seven instruments suggested in the First Intermediate
Report and in consultation with the European Commission
The Team puts forward hereby a possible list of three policy instruments The main criteria
considered for their selection are
i The degree of representativeness of the typologies of policy instruments used in the 50
OPs as outlined in the First Intermediate Report the most significant categories of
policy instruments in terms of public expenditure are
Business creation and development ie instruments designed to stimulate
investments in the business sector without a predominant emphasis on RampD
and innovation
Support for RampD projects
Support for the development of technological and non-technological innovation
without any research and experimental development activities
ii The feasibility of a theory-based impact evaluation based on a survey of beneficiaries
which implies the availability of a sufficiently large number of beneficiaries and the
possibility to easily get their email contacts also with the help of the Managing
Authority or the implementing body the best option is to have at least some hundreds
beneficiary SMEs for each instrument
iii The importance of the policy instrument within the policy mix of the OP which ensures
the availability of a good amount of information resulting from the case study
regarding in particular its logic of intervention information about beneficiaries and
effectiveness
iv Preference is assigned to instruments on which no other surveys to beneficiaries have
been conducted so far in order not to put excessive burden on the same SMEs which
could undermine their willingness to contribute to our study
Based on these considerations the three policy instruments we propose for a theory-based
impact evaluation are presented in the table below It can be noticed that the list also ensures
geographical balance between Convergence and Competitiveness and Employment region as
well as Old and New Member States and regional and national OPs For the sake of
completeness and comparability for all the seven candidate instruments the pros and cons for
selecting each of them are detailed
23
Table 4 Comparison of the policy instruments and reasons for selection
Proposed for
selection
Type of policy
instrument
Selected policy
instrument
Operational Programme and
type of regioncountry
Descriptive information Specific reason for selection
for a TBIE Possible reasons for
rejection
YES Business creation and development
ldquoAid to investment projects by micro and small enterprisesrdquo
Regional OP Apulia (Italy) - Convergence region
- Old Member State
The instrument supports the purchase of machineries computer systems buildings construction works for enterprises in order to encourage the development of micro and small companies It benefitted more than 3 thousand SMEs For around 30 of beneficiaries grants have been combined with credit guarantees
- Very common type of SME support on which vast literature has been produced
- Very large number of beneficiary SMEs
- The strong relationship already established with local stakeholders and many SMEs would allow to easily and quickly test the surveyrsquos questionnaires before the launch of the three TBIEs
- For some SMEs opportunity to analyse the complimentary efforts of two forms of support (grants and a combination of grants and guarantees) and their respective effectiveness
- None
YES Support for RampD projects
ldquoGrants for Industrial Research and Experimental Developmentrdquo
Regional OP Castilla y Leon (Spain) - Competitiveness and Employment region
- Old Member State
The instrument encourages the development of RampD projects with the purpose of increasing the basis of number of innovative enterprises investment and personnel in RampD In total 759 projects of SMEs have been supported through grants 204 SMEs have conducted their project in collaboration with research organisations
- In analysing the achievement of beneficiary SMEs as well as the behavioural change opportunity to distinguish between SMEs which have realized their projects independently rather than in collaboration with a research centre
- According to the country expert among all the policy instruments of this OP this is the one for which it would be easier to get the contact details of beneficiary SMEs
- Possibility to get active collaboration by the regional authority ADE eg sending out an introductory letter to all
- None
24
Proposed for
selection
Type of policy
instrument
Selected policy
instrument
Operational Programme and
type of regioncountry
Descriptive information Specific reason for selection
for a TBIE Possible reasons for
rejection
SMEs mentioning that they will receive an invitation to a survey and inviting them to reply
YES Support for the development of technological and non-technological innovation
ldquoFinancing of individual projects for SMEsrdquo
National OP Poland Innovative Economy - Convergence country
- New Member State
The instrument provides grants to support the technological innovation of SMEs In particular it aims to stimulate the adoption of more risky and innovative solutions The instrument performed far better than expected 698 projects have been realised up to 2013 by approximately as many SMEs The instrument is delivered by a financial intermediary
- This instrument belongs to the OP which has provided the largest financial contribution to SMEs within the full sample of 50 OPs furthermore this is one of the core instrument of the programme as also reflected in the volume of public contribution which is among the highest of the OP (more than EUR 300 million fully targeted to SMEs)
- Opportunity to examine the role played by the intermediary according to the perceptions and opinions of beneficiary SMEs
- None
NO Support for RampD projects
ldquoRampD project grants for individual enterprisesrdquo
Germany regional OP Saxony - Convergence region
- Old Member State
The instrument provides grants to individual enterprises for supporting the implementation of RampD projects
- Evidence of achievement is already available since the instrument was subject of another evaluation study and enterprise survey a few years ago The TBIE would allow to better qualify the instrumentsrsquo achievements and the causal chain leading to the certain effects
- According to the country experts beneficiary SMEs may be reluctant to participate to another survey
- Less than 200 beneficiary SMEs a lower number as compared with other candidate policy instruments
- It is still uncertain whether it will be possible to get the email addresses of beneficiary SMEs
25
Proposed for
selection
Type of policy
instrument
Selected policy
instrument
Operational Programme and
type of regioncountry
Descriptive information Specific reason for selection
for a TBIE Possible reasons for
rejection
NO Support for the development of technological and non-technological innovation
ldquoSupport for technological upgrade - LEADER LTrdquo
Lithuania - Economic Growth - Convergence country
- New Member State
The instrument supports the increase of productivity in enterprises by supporting production technology upgrading The investment into the acquisition or upgrade of technologies and related internal engineering infrastructures are supported
- Email contacts particularly easy to be collected
- Result indicators are available due to an effective Structural Funds monitoring system and because the instrument was already subject of a previous evaluation study
- Very low number of beneficiary SMEs (69) which would make this instrument less suitable for launching an on-line survey as compared with other candidate instruments
NO Support for the development of technological and non-technological innovation
ldquoSupport for non-technological innovation - PROCESS LTrdquo
Lithuania - Economic Growth - Convergence country
- New Member State
The instrument aims to increase productivity in enterprises by implementing modern management methods and processes except of personnel management systems The purchase of external consulting services is supported in order to upgrade enterprises management processes
- Email contacts particularly easy to be collected
- Result indicators are available due to an effective Structural Funds monitoring system and because the instrument was already subject of a previous evaluation study
- The instrument is considered highly relevant by the target beneficiaries
- Very low number of beneficiary SMEs (119)
- As compared with other categories of policy instruments support for non-technological innovation is relatively less significant and representative of the typical forms of support provided to SMEs in the EU
NO Support for networking
ldquoInteraction on Innovationrdquo later merged with ldquoCluster relationshiprdquo
Denmark Innovation and Knowledge OP - Competitiveness and Employment country
- Old Member State
The policy instrument aims at analysing opportunities for creating clusters promoting networks and the formation of clusters of SMEs in particular as well as clusters of supplier networks for SMEs These objectives are pursued by providing grants to SMEs in partnership with universities (according to the triple helix model)
- Opportunity to better analyse the effects of a policy instrument on which a vast amount of literature has been produced
- Opportunity to dig into the collaboration mechanisms between SMEs and universities
- As compared with other categories of policy instruments support for networking is relatively less significant and representative of the typical forms of support provided to SMEs in the EU
- The number and characteristics of SMEs benefitting from this instrument remain unknown even after implementing the case
26
Proposed for
selection
Type of policy
instrument
Selected policy
instrument
Operational Programme and
type of regioncountry
Descriptive information Specific reason for selection
for a TBIE Possible reasons for
rejection
study The lack of data at policy instrument level prevents from identifying the beneficiary SMEs to which launching the on-line survey
27
4 ANNEX SEMINAR PARTICIPANTS
Name Description Organisation
DG REGIO Evaluation Unit
Rudolf Niessler Director DG REGIO B Policy
Veronica Gaffey Head of Evaluation Unit DG REGIO B2
Marielle Richeacute Evaluation Unit DG REGIO B2
Kai Stryczynski Deputy Head of Unit DG REGIO B2
Daniel Mouqueacute Evaluation Unit DG REGIO B2
CSIL Evaluation Team
Massimo Florio Evaluation team Director CSIL
Julie Pellegrin Evaluation team Project Manager CSIL
Silvia Vignetti Evaluation team CSIL
Emanuela Sirtori Evaluation team CSIL
Mike Coyne Evaluation team CSES
Malin Carlberg Evaluation team CSES
Anna-Maria Krarup Evaluation team CSES
Christian Koehler Case Study Saxony Centre for European Economic Research (ZEW)
Jaime del Castillo Case Study Castile amp Leon President INFYDE
Agnė Paliokaitė Case Study Lithuania Visionary Analytics
Elena Jarocinska Case Study Poland
Commission Officials
Katja Reppel Deputy Head of Unit Competence Centre Smart and Sustainable Growth
DG REGIO G1
Bernd Reichert Head of Unit H2020 SME EASME
Peter Wragg Head of Unit SME Access to Markets DG GROW F2
Jean David Malo Head of Unit SMEs Financial Instruments amp State Aid DG RTD B3
28
Istvan Nemeth Policy Officer - Enterprise Europe Network DG GROW F2
External Experts
Harvey Armstrong Professor Emeritus in the Department of Geography University of Sheffield
Robert Picciotto Visiting Professor Kings College London
Mark Sanders Professor University of Utrecht
Jiri Blazek Associate Professor Charles University Prague
Stakeholders ndash Case Studies
Adriana Agrimi Manager of RampI Policy Instrument Apulia Managing Authority
Kasper Westh Senior official Growth Forum Secretariat South Denmark
Simona Daukilaite
Deputy Head of the Economic Growth Operational Programme
Economic Growth OP Lithuania Managing Authority
Beatriz Casado Saenz Vice-General Director ADE (Development Agency Castile amp Leon)
Tomasz Kula Analysis and Evaluation Team Competitiveness and Innovation Department
Ministry of Infrastructure and Development (PL)
Representatives of other Work Packages
Terry Ward WP 1 Applica
Andreas Resch WP 3 Metis-Vienna
Anda Berenyi WP 4 KPMG
LEGAL NOTICE
This document has been prepared for the European Commission however it reflects the views only of the authors and the Commission cannot be held responsible for any use which may be made of the information
contained therein
More information on the European Union is available on the Internet (httpwwweuropaeu)
Luxembourg Publications Office of the European Union 2014
ISBN [number]
doi[number]
copy European Union 2015
Reproduction is authorised provided the source is acknowledged
Printed in [Country]
PRINTED ON ELEMENTAL CHLORINE-FREE BLEACHED PAPER (ECF)
PRINTED ON TOTALLY CHLORINE-FREE BLEACHED PAPER (TCF) PRINTED ON RECYCLED PAPER
PRINTED ON PROCESS CHLORINE-FREE RECYCLED PAPER (PCF)
Europe Direct is a service to help you find answers to your questions about the European Union
Freephone number ()
00 800 6 7 8 9 10 11
() The information given is free as are most calls (though some operators phone boxes or hotels may charge you)
15
Figure 5 Share of beneficiary SMEs by size class in the eight OPs
0
10
20
30
40
50
60
70
80
90
100
CZ - Czech Republic(Innov)
ES - Castilla y Leoacuten FR - Icircle de France IT - Apulia LT - Lithuania PL - Poland
Micro enterprises Small enterprises Medium enterprises
Source CSIL elaboration Note Missing data for Saxony and Denmark since the size class of beneficiary SMEs is not
available
Figure 6 Share of beneficiary SMEs by technology intensity level in the eight OPs
0
10
20
30
40
50
60
70
80
90
100
CZ - CzechRepublic
DE - Saxony ES - Castilla yLeoacuten
FR - Icircle deFrance
IT - Apulia LT - Lithuania PL - Poland
Low tech
Medium-low tech
Medium-high tech
High tech
Source CSIL elaboration Missing data for Denmark since the level of technological intensity cannot be estimated due
to missing data on sectoral disaggregation of beneficiary SMEs
Whether the characteristics of beneficiary SMEs simply mirror the specific characteristics of the
population of SMEs in the area covered by the OPs or result from different logics of
intervention underneath the OPs or from a mix of the two possible reasons is investigated in
the case studies
16
2 RESULTS OF THE SEMINAR
The aim of a ldquostakeholder seminarrdquo held on 29th April 2015 was to present the preliminary
findings and the main issues identified in other tasks undertaken for this Work Package and
especially those emerging from the eight case studies of Operational Programmes and to
discuss the policy implications and main lessons with Commission staff the evaluation team
members (and representatives of other Work Packages) academic experts and people
involved in the implementation of the Operational Programmes on the ground (see list of
participants in Annex) The following provides an overview setting out the main highlights in
the results from the presentations of the eight case studies
The seminar was organised in relation to three themes as follows
1) Targeting high vs low tech firms the case studies of Lithuania Saxony and Poland
2) Promoting widespread vs selective instruments the case studies of Apulia Castile amp
Leon and the Czech Republic
3) ERDF and the regional policy mix the case studies of Icircle-de-France and Denmark
Other issues that it was intended to highlight during the course of the discussion included
The issue of direct versus indirect support
Economic development versus anti-cyclical intervention
Supporting enabling organisations
Supporting individual enterprises as against partnerships
21 Targeting high vs low tech firms
In Lithuania the challenge was to build competitive advantage on the basis of labour-intensive
technologies The traditional sectors were in need of upgrading and the majority of the funds
were allocated to low tech companies In Saxony there was a demand driven approach but
also a realisation that low tech firms can improve competitiveness through cost reduction
Technologyprocess upgrading as subset to innovation can be justified but concentration of
spending on RampD has established Saxony as one of the German RampD powerhouses and
contributed to market access an increase in turnover and employment growth In Poland it
was thought that for countries that are not leading technological change the returns from
innovation are particularly high in low-tech manufacturing sectors but that as a country
approaches the technological frontier the policy should focus on RampD and innovative start-up
In discussion a central question was posed where does the investment pay most
22 Promoting widespread vs selective instruments
In Apulia the strategy was adjusted through re-programming to provide broad support to
SMEs to allow them to survive during the crisis and recession a dual approach was adopted
with selective support for SMEs with the internal capacity to manage innovation processes
including demand-side measures In Castile amp Leon the impact of the crisis was also intense
and broadly-based support was necessary but there were also efforts to build up the support
infrastructure and to provide in-depth support to enterprises identified as capable of innovation
and growth In the Czech Republic there was again both broadly-based and selective support
especially to address the ldquoBranch-plant syndromerdquo (where branches of international firms allow
little room for independent development by local suppliers) There was a focus on transferring
RampD results into production by stimulating demand for RampD results with 13 of the funds
going to support for innovation activities
17
23 ERDF and the regional policy mix
The last two cases are examples of OPs for areas which are relatively prosperous and where
RampD and innovation are relatively strong The ERDF budgets however were relatively small
In the Icircle-de-France (IdF) there was a pragmatic and demand-driven implementation
palliating perceived gaps in regional public support and enlarging the available financial
support targeting high growth high tech sectors appears to pay off in the IdF context In
Denmark there was a more strategic approach which was well integrated into national
strategy but with flexible implementation with strong stakeholder involvement in 6 regional
programmes There were interesting applications of the triple helix model amp successful cluster
developments
In all cases there was comment on the strength of monitoring and evaluation systems These
varied considerably from a relatively under-developed system in Apulia to a relatively strong
one in Icircle-de-France Denmark had organised a counterfactual analysis of enterprises
supported by the OP as against similar enterprises not receiving support
24 Synthesis
241 Diversity across themes
The first impression made by the presentations was the diversity of the interventions in the
eight cases There are several dimensions to these differences beginning with the context in
which the OP was implemented where there were differences relating to
The size of the regionsMember States targeted The absolute and relative size of the Programmes within the regions and countries in which
they operated and the effects that could reasonably be expected from them The size and structure of the SME population its sectoral distribution and its capacities
and assets The economic context within which the OPs operated and especially the way that the
economic crisis impacted on each area over the course of the programming period The endowment of SME and innovation support infrastructure and culture determining the
base on which the OPs could build
In fact the detailed investigations have confirmed the importance of the specific context in
which each OP was conceived and implemented for the determination of the nature of the
policy instruments used and the results to be expected from them This context is important
for any fair assessment of the achievements or otherwise of each Programme
Nonetheless when it came to the processes used to promote SMEs and innovation the
differences could often be considered as involving variations around a series of central themes
In all the cases considered there was a strong emphasis on promoting innovation as a
central objective yet this was done in a variety of ways and had differing relationships with
the objective of SME promotion In a number of cases support for SMEs was itself very much
seen as part of this process of encouraging innovation including in the case of the Icircle-de-
France where it involved encouraging new forms of enterprise dedicated to pursuing social
innovation In other cases however there was a clear commitment to provide general support
to SMEs and especially after the extent of the economic crisis became apparent some re-
programming to ensure this
Consequently targeting policies were not as clear cut as might have been expected There
were cases where SMEs were targeted directly ndash Apulia and Castile amp Leon but even here
there was also an element of trying to ensure that enterprises that were capable of benefitting
from support were the one to receive it while elsewhere a subtle lsquosoft targetingrsquo was more
evident where the instruments were shaped to achieve a certain selectivity not by defining
exclusions but by requiring for instance a commitment to change and growth on the part of
18
participants In Denmark for example those encouraged to become members of cluster
organisations had to be interested in developing their growth potential if their participation
was to serve any purpose This in effect led to a self-exclusion by those not willing to play
along with the support offered
The nature of the instruments used to implement OPs were shaped by a number of factors
Just as the objectives of an OP must take into account a large variety of details relating to the
circumstances of the relevant region or country so the precise characteristics of the
instruments to be applied must reflect not only the particular purposes for which they are to be
used the nature of the target group to be addressed and the economic and social
circumstances of the area concerned but the legacy of past interventions as well in the form
of existing support infrastructure and the capabilities developed in preceding periods In other
words support instruments are built on past actions both for positive reasons (exploiting
existing assets) but also because of their familiarity or a certain institutional inertia In any
event the large variety of circumstances in which the particular features of instruments are
determined gives rise to a wide array of actual policy instruments The review of 50 OPs
conducted as part of the evaluation identified 648 different instruments
This large variety of specific instruments however is mainly accounted for in that they are
often designed as elaborations of well-established approaches but addressing particular needs
and circumstances and also a variety of potential targets So building capacities and
competences can be undertaken for enterprises and their managers of varying degrees of
sophistication and background knowledge and can relate to a variety of matters from technical
issues to general management marketing exporting or more specialised issues such as IP
management The process of capacity building can therefore take many forms
The extent of the provision of access to finance is complicated by the question of whether or
not the provision of direct grants counts as part of this function Some substantial sums were
provided in this form by some of the OPs However generally an expected move towards the
provision of more indirect finance ndash loans and equity through intermediaries - was not as
marked as may have been anticipated General access to finance measures (equity
guarantees and reduction of credit interest) accounted for 38 of the funds allocated by the
Lithuanian OP and repayable financial support for 26 of the Apulian OP equity finance 14
in the case of Icircle-de-France 23 for loans and 35 for equity finance in that of Saxony The
other OPs had rather small amounts devoted to indirect financial instruments if any at all An
explanation offered of the small allocations to these instruments in some OPs was that the
crisis discouraged experimentation in this area that it is relatively difficult and expensive to
manage financial instruments and outside the experience of most Managing Authorities that
relatively large sums are necessary to make any appreciable impact and that results can often
take a long time to materialise
There were considerable differences in the extent to which there was provision of direct
support to enterprises In Saxony over 90 of the funds were in the form of grants and in
Icircle-de-France and in Apulia grants largely paid directly to enterprises accounted for 56 and
41 respectively of the funds allocated In Denmark by contrast no grants were paid directly
to enterprises unless they were partners in projects receiving support for developing clusters
or relationships with universities or in a small number of cases where they received funds to
hire private sector business advisers
It is useful to distinguish between different types of direct support In Poland and in Saxony a
large proportion of the direct support was for investments in innovative undertakings In
Apulia although the main part of support went to individual enterprises or SMEs it was more
evenly split between support for investment (by micro and small firms) and investment in
research In Icircle-de-France the weight of the direct support was for research projects
19
It is also interesting that analysis of a wider group of 50 OPs shows that manufacturing firms
received 33 of support ndash much greater than their share in the economy as a whole It also
showed that more than 50 of support has been directed to low-tech firms
Different forms of business support were available across the OPs including access to public
and private sources of information and advice incubator services and assistance for exporters
Castile amp Leon targeted the improvement of management capacities and this approach was
implicit in a number of other OPs
Approaches to support for innovation also took different forms Overall in the broader range
of OPs examined 24 of support was for RampD and a similar amount for business development
and direct support for RampD in collaborative and non-collaborative projects was a significant
feature of the OPs for Apulia Castile amp Leon Icircle-de-France Lithuania Poland and Saxony but
not in the Czech Republic and Denmark where FP7 was thought to be the appropriate vehicle
In Saxony strengthening the research base of enterprises in the local economy and promoting
the exploitation of knowledge was central to the OP so that the majority of the funds were
provided for investment in fixed capital and in supporting RampD This implied a certain targeting
within the SME population In Icircle-de-France the bulk of the support also went to research
projects and support for technology transfer and incubators though there was also support for
SME creation in distressed areas for access to finance and for social innovation projects In
Denmark the focus was more on promoting clusters and encouraging links between enterprises
and science institutions
In some cases however the picture was more mixed In Lithuania where 38 of funding went
to access to finance measures a further 30 to up-grading technology and processes but
there was also direct support for RampD and RampD infrastructure and support for networking and
clusters promoting innovation Similarly in Apulia there was support for research by SMEs
and measures to promote consulting services for technical innovation regional innovation
partnerships and aid for access to ICT alongside aid to investment in micro and small firms
and credit guarantees and support for tourism
Knowledge transfer also featured in many of the OPs Building relationships between
knowledge institutions and enterprises was an important objective for Denmark as part of
developing regional innovation capacities though the results were mixed at least in part
because of an unresponsive culture in certain universities In other cases these relationships
were promoted by collaborative research projects (Icircle-de-France Saxony) and in the case of
Lithuania by the use of vouchers Overall however it is perhaps surprising that building
relationships between knowledge institutions and enterprises did not have a higher profile
The development of clusters was an instrument used in the Czech Republic Lithuania and
Denmark where in some regions it absorbed a large proportion of the available funds and
where the focus was on emerging sectors such as clean technology energy health and welfare
and the experience economy Cluster support in this case consisted of a relatively complex set
of services provided for cluster members In the Czech Republic and Lithuania cluster
development was itself less developed and related to low-tech sectors with potential for
innovation and growth
Underlying these differences between Programmes there were variations in the approach to
governance This has become an important issue for all of the regions and countries
considered In part this is linked to the aspiration at least to establish transparent evidence-
based policy processes which has brought in the development of monitoring and evaluation
systems but there are more central elements of governance to do with who is involved in
decision-making and how decisions are taken that are also part of the picture The
development of stakeholder involvement in strategy formation in the setting of priorities and
even in elements of implementation was apparent in many of the cases throughout the
20
programming period In Denmark the whole (national and EU) strategy was based from the
beginning on a national consensus established through political and open public debates and
implemented through regional bodies with a strong stakeholder representation In Apulia a
self-evaluation exercise led to new departures in response to the crisis
There were however other issues of governance alluded to in the seminar relating to but the
alignment of the OP with national strategies and the organisational mechanisms adopted to
implement the strategy chosen by each OP These can have considerable influence on the
degree to which the Managing Authority can directly influence the implementation
mechanisms
Finally account must be taken of the differential impacts of the recession In Apulia and
Castile amp Leon there was formal reprogramming largely as a result of the recession and
changes in the instrument set utilised To a certain extent this meant a scaling down of
ambitions when for many enterprises it was a matter of survival rather than developing new
ventures Even here though the story does not always move in the same direction In the case
of Apulia for instance while it was necessary in part to refocus support on the broad range of
enterprises suffering from the recession at the same time the crisis acted as a stimulus to new
thinking after the conduct of a self-evaluation exercise
242 A common framework
Overall it can be seen that within the diversity shown by the eight cases there are at least a
number of common themes which are belong addressed in different ways The question does
arise however of whether it might be possible to go further to offer an explanation of the
diversity
External experts at the seminar advised that a theoretical framework should be sought to
make greater sense of the quantitative material and provide the basis for a more deliberative
judgement on the effectiveness of policy and how support funds can be best spent
One possibility is to take the differing circumstances of the OPs as themselves being an
explanatory factor and in a further step see the differences in the nature of the instruments
deployed as being part of an evolutionary process This approach also has the merit of linking
a debate on instruments with broader considerations in the promotion of innovation and
competitiveness at a European level
The reference in section 1 above to the position of the countries covered by the case studies
and their innovation performance as characterised by the Innovation Union Scoreboard and
in further detail at a regional level by the Regional Innovation Scoreboard 2012 allows a
distinction to be made between countries and regions in four categories - lsquoleadersrsquo lsquofollowersrsquo
those with a moderate lsquoperformancersquo and those lsquocatching-uprsquo The respective positions of the
eight cases have been set out in section 1
The approach suggested at the seminar was essentially to explore the hypothesis that the
overall lsquoinnovationrsquo position of regionscountries determines the types of instrument
used their targeting and ultimately their relative performance It may be that the
categorisation help us explain the differences in the objectives set the instruments that are
appropriate and their targeting and that this in turn also influences the performance that can
be expected Regionscountries for instance that are in the lsquoless developedrsquo categories may
have to strengthen their basic support infrastructure and service provision and the
performance of the enterprise base and that of other important players such as knowledge
institutions public authorities etc The regionscountries in the more lsquoadvancedrsquo positions on
the other hand have to build on their strengths in order to maintain or enhance their position
by promoting more productive research and strengthening the links between the science base
and enterprises
21
This possible framework provides an interesting line of enquiry to be followed up in further
stages of the evaluation It does however also address other issues raised in the seminar
such as whether support should be directed to high-tech enterprises or as was argued in
relation to a number of the countries present the gains to be had from the improvement of
the performance of mid and low-tech firms are more relevant in certain stages of
development
22
3 NEXT STEP THEORY-BASED IMPACT EVALUATIONS
As the implementation of the evaluation study proceeds and the case studies (Task 3) are
being drafted the Team is in the course of identifying three policy instruments to be assessed
by as many theory-based impact evaluations as foreseen in Task 4 The three instruments
should be selected out of the long list of seven instruments suggested in the First Intermediate
Report and in consultation with the European Commission
The Team puts forward hereby a possible list of three policy instruments The main criteria
considered for their selection are
i The degree of representativeness of the typologies of policy instruments used in the 50
OPs as outlined in the First Intermediate Report the most significant categories of
policy instruments in terms of public expenditure are
Business creation and development ie instruments designed to stimulate
investments in the business sector without a predominant emphasis on RampD
and innovation
Support for RampD projects
Support for the development of technological and non-technological innovation
without any research and experimental development activities
ii The feasibility of a theory-based impact evaluation based on a survey of beneficiaries
which implies the availability of a sufficiently large number of beneficiaries and the
possibility to easily get their email contacts also with the help of the Managing
Authority or the implementing body the best option is to have at least some hundreds
beneficiary SMEs for each instrument
iii The importance of the policy instrument within the policy mix of the OP which ensures
the availability of a good amount of information resulting from the case study
regarding in particular its logic of intervention information about beneficiaries and
effectiveness
iv Preference is assigned to instruments on which no other surveys to beneficiaries have
been conducted so far in order not to put excessive burden on the same SMEs which
could undermine their willingness to contribute to our study
Based on these considerations the three policy instruments we propose for a theory-based
impact evaluation are presented in the table below It can be noticed that the list also ensures
geographical balance between Convergence and Competitiveness and Employment region as
well as Old and New Member States and regional and national OPs For the sake of
completeness and comparability for all the seven candidate instruments the pros and cons for
selecting each of them are detailed
23
Table 4 Comparison of the policy instruments and reasons for selection
Proposed for
selection
Type of policy
instrument
Selected policy
instrument
Operational Programme and
type of regioncountry
Descriptive information Specific reason for selection
for a TBIE Possible reasons for
rejection
YES Business creation and development
ldquoAid to investment projects by micro and small enterprisesrdquo
Regional OP Apulia (Italy) - Convergence region
- Old Member State
The instrument supports the purchase of machineries computer systems buildings construction works for enterprises in order to encourage the development of micro and small companies It benefitted more than 3 thousand SMEs For around 30 of beneficiaries grants have been combined with credit guarantees
- Very common type of SME support on which vast literature has been produced
- Very large number of beneficiary SMEs
- The strong relationship already established with local stakeholders and many SMEs would allow to easily and quickly test the surveyrsquos questionnaires before the launch of the three TBIEs
- For some SMEs opportunity to analyse the complimentary efforts of two forms of support (grants and a combination of grants and guarantees) and their respective effectiveness
- None
YES Support for RampD projects
ldquoGrants for Industrial Research and Experimental Developmentrdquo
Regional OP Castilla y Leon (Spain) - Competitiveness and Employment region
- Old Member State
The instrument encourages the development of RampD projects with the purpose of increasing the basis of number of innovative enterprises investment and personnel in RampD In total 759 projects of SMEs have been supported through grants 204 SMEs have conducted their project in collaboration with research organisations
- In analysing the achievement of beneficiary SMEs as well as the behavioural change opportunity to distinguish between SMEs which have realized their projects independently rather than in collaboration with a research centre
- According to the country expert among all the policy instruments of this OP this is the one for which it would be easier to get the contact details of beneficiary SMEs
- Possibility to get active collaboration by the regional authority ADE eg sending out an introductory letter to all
- None
24
Proposed for
selection
Type of policy
instrument
Selected policy
instrument
Operational Programme and
type of regioncountry
Descriptive information Specific reason for selection
for a TBIE Possible reasons for
rejection
SMEs mentioning that they will receive an invitation to a survey and inviting them to reply
YES Support for the development of technological and non-technological innovation
ldquoFinancing of individual projects for SMEsrdquo
National OP Poland Innovative Economy - Convergence country
- New Member State
The instrument provides grants to support the technological innovation of SMEs In particular it aims to stimulate the adoption of more risky and innovative solutions The instrument performed far better than expected 698 projects have been realised up to 2013 by approximately as many SMEs The instrument is delivered by a financial intermediary
- This instrument belongs to the OP which has provided the largest financial contribution to SMEs within the full sample of 50 OPs furthermore this is one of the core instrument of the programme as also reflected in the volume of public contribution which is among the highest of the OP (more than EUR 300 million fully targeted to SMEs)
- Opportunity to examine the role played by the intermediary according to the perceptions and opinions of beneficiary SMEs
- None
NO Support for RampD projects
ldquoRampD project grants for individual enterprisesrdquo
Germany regional OP Saxony - Convergence region
- Old Member State
The instrument provides grants to individual enterprises for supporting the implementation of RampD projects
- Evidence of achievement is already available since the instrument was subject of another evaluation study and enterprise survey a few years ago The TBIE would allow to better qualify the instrumentsrsquo achievements and the causal chain leading to the certain effects
- According to the country experts beneficiary SMEs may be reluctant to participate to another survey
- Less than 200 beneficiary SMEs a lower number as compared with other candidate policy instruments
- It is still uncertain whether it will be possible to get the email addresses of beneficiary SMEs
25
Proposed for
selection
Type of policy
instrument
Selected policy
instrument
Operational Programme and
type of regioncountry
Descriptive information Specific reason for selection
for a TBIE Possible reasons for
rejection
NO Support for the development of technological and non-technological innovation
ldquoSupport for technological upgrade - LEADER LTrdquo
Lithuania - Economic Growth - Convergence country
- New Member State
The instrument supports the increase of productivity in enterprises by supporting production technology upgrading The investment into the acquisition or upgrade of technologies and related internal engineering infrastructures are supported
- Email contacts particularly easy to be collected
- Result indicators are available due to an effective Structural Funds monitoring system and because the instrument was already subject of a previous evaluation study
- Very low number of beneficiary SMEs (69) which would make this instrument less suitable for launching an on-line survey as compared with other candidate instruments
NO Support for the development of technological and non-technological innovation
ldquoSupport for non-technological innovation - PROCESS LTrdquo
Lithuania - Economic Growth - Convergence country
- New Member State
The instrument aims to increase productivity in enterprises by implementing modern management methods and processes except of personnel management systems The purchase of external consulting services is supported in order to upgrade enterprises management processes
- Email contacts particularly easy to be collected
- Result indicators are available due to an effective Structural Funds monitoring system and because the instrument was already subject of a previous evaluation study
- The instrument is considered highly relevant by the target beneficiaries
- Very low number of beneficiary SMEs (119)
- As compared with other categories of policy instruments support for non-technological innovation is relatively less significant and representative of the typical forms of support provided to SMEs in the EU
NO Support for networking
ldquoInteraction on Innovationrdquo later merged with ldquoCluster relationshiprdquo
Denmark Innovation and Knowledge OP - Competitiveness and Employment country
- Old Member State
The policy instrument aims at analysing opportunities for creating clusters promoting networks and the formation of clusters of SMEs in particular as well as clusters of supplier networks for SMEs These objectives are pursued by providing grants to SMEs in partnership with universities (according to the triple helix model)
- Opportunity to better analyse the effects of a policy instrument on which a vast amount of literature has been produced
- Opportunity to dig into the collaboration mechanisms between SMEs and universities
- As compared with other categories of policy instruments support for networking is relatively less significant and representative of the typical forms of support provided to SMEs in the EU
- The number and characteristics of SMEs benefitting from this instrument remain unknown even after implementing the case
26
Proposed for
selection
Type of policy
instrument
Selected policy
instrument
Operational Programme and
type of regioncountry
Descriptive information Specific reason for selection
for a TBIE Possible reasons for
rejection
study The lack of data at policy instrument level prevents from identifying the beneficiary SMEs to which launching the on-line survey
27
4 ANNEX SEMINAR PARTICIPANTS
Name Description Organisation
DG REGIO Evaluation Unit
Rudolf Niessler Director DG REGIO B Policy
Veronica Gaffey Head of Evaluation Unit DG REGIO B2
Marielle Richeacute Evaluation Unit DG REGIO B2
Kai Stryczynski Deputy Head of Unit DG REGIO B2
Daniel Mouqueacute Evaluation Unit DG REGIO B2
CSIL Evaluation Team
Massimo Florio Evaluation team Director CSIL
Julie Pellegrin Evaluation team Project Manager CSIL
Silvia Vignetti Evaluation team CSIL
Emanuela Sirtori Evaluation team CSIL
Mike Coyne Evaluation team CSES
Malin Carlberg Evaluation team CSES
Anna-Maria Krarup Evaluation team CSES
Christian Koehler Case Study Saxony Centre for European Economic Research (ZEW)
Jaime del Castillo Case Study Castile amp Leon President INFYDE
Agnė Paliokaitė Case Study Lithuania Visionary Analytics
Elena Jarocinska Case Study Poland
Commission Officials
Katja Reppel Deputy Head of Unit Competence Centre Smart and Sustainable Growth
DG REGIO G1
Bernd Reichert Head of Unit H2020 SME EASME
Peter Wragg Head of Unit SME Access to Markets DG GROW F2
Jean David Malo Head of Unit SMEs Financial Instruments amp State Aid DG RTD B3
28
Istvan Nemeth Policy Officer - Enterprise Europe Network DG GROW F2
External Experts
Harvey Armstrong Professor Emeritus in the Department of Geography University of Sheffield
Robert Picciotto Visiting Professor Kings College London
Mark Sanders Professor University of Utrecht
Jiri Blazek Associate Professor Charles University Prague
Stakeholders ndash Case Studies
Adriana Agrimi Manager of RampI Policy Instrument Apulia Managing Authority
Kasper Westh Senior official Growth Forum Secretariat South Denmark
Simona Daukilaite
Deputy Head of the Economic Growth Operational Programme
Economic Growth OP Lithuania Managing Authority
Beatriz Casado Saenz Vice-General Director ADE (Development Agency Castile amp Leon)
Tomasz Kula Analysis and Evaluation Team Competitiveness and Innovation Department
Ministry of Infrastructure and Development (PL)
Representatives of other Work Packages
Terry Ward WP 1 Applica
Andreas Resch WP 3 Metis-Vienna
Anda Berenyi WP 4 KPMG
LEGAL NOTICE
This document has been prepared for the European Commission however it reflects the views only of the authors and the Commission cannot be held responsible for any use which may be made of the information
contained therein
More information on the European Union is available on the Internet (httpwwweuropaeu)
Luxembourg Publications Office of the European Union 2014
ISBN [number]
doi[number]
copy European Union 2015
Reproduction is authorised provided the source is acknowledged
Printed in [Country]
PRINTED ON ELEMENTAL CHLORINE-FREE BLEACHED PAPER (ECF)
PRINTED ON TOTALLY CHLORINE-FREE BLEACHED PAPER (TCF) PRINTED ON RECYCLED PAPER
PRINTED ON PROCESS CHLORINE-FREE RECYCLED PAPER (PCF)
Europe Direct is a service to help you find answers to your questions about the European Union
Freephone number ()
00 800 6 7 8 9 10 11
() The information given is free as are most calls (though some operators phone boxes or hotels may charge you)
16
2 RESULTS OF THE SEMINAR
The aim of a ldquostakeholder seminarrdquo held on 29th April 2015 was to present the preliminary
findings and the main issues identified in other tasks undertaken for this Work Package and
especially those emerging from the eight case studies of Operational Programmes and to
discuss the policy implications and main lessons with Commission staff the evaluation team
members (and representatives of other Work Packages) academic experts and people
involved in the implementation of the Operational Programmes on the ground (see list of
participants in Annex) The following provides an overview setting out the main highlights in
the results from the presentations of the eight case studies
The seminar was organised in relation to three themes as follows
1) Targeting high vs low tech firms the case studies of Lithuania Saxony and Poland
2) Promoting widespread vs selective instruments the case studies of Apulia Castile amp
Leon and the Czech Republic
3) ERDF and the regional policy mix the case studies of Icircle-de-France and Denmark
Other issues that it was intended to highlight during the course of the discussion included
The issue of direct versus indirect support
Economic development versus anti-cyclical intervention
Supporting enabling organisations
Supporting individual enterprises as against partnerships
21 Targeting high vs low tech firms
In Lithuania the challenge was to build competitive advantage on the basis of labour-intensive
technologies The traditional sectors were in need of upgrading and the majority of the funds
were allocated to low tech companies In Saxony there was a demand driven approach but
also a realisation that low tech firms can improve competitiveness through cost reduction
Technologyprocess upgrading as subset to innovation can be justified but concentration of
spending on RampD has established Saxony as one of the German RampD powerhouses and
contributed to market access an increase in turnover and employment growth In Poland it
was thought that for countries that are not leading technological change the returns from
innovation are particularly high in low-tech manufacturing sectors but that as a country
approaches the technological frontier the policy should focus on RampD and innovative start-up
In discussion a central question was posed where does the investment pay most
22 Promoting widespread vs selective instruments
In Apulia the strategy was adjusted through re-programming to provide broad support to
SMEs to allow them to survive during the crisis and recession a dual approach was adopted
with selective support for SMEs with the internal capacity to manage innovation processes
including demand-side measures In Castile amp Leon the impact of the crisis was also intense
and broadly-based support was necessary but there were also efforts to build up the support
infrastructure and to provide in-depth support to enterprises identified as capable of innovation
and growth In the Czech Republic there was again both broadly-based and selective support
especially to address the ldquoBranch-plant syndromerdquo (where branches of international firms allow
little room for independent development by local suppliers) There was a focus on transferring
RampD results into production by stimulating demand for RampD results with 13 of the funds
going to support for innovation activities
17
23 ERDF and the regional policy mix
The last two cases are examples of OPs for areas which are relatively prosperous and where
RampD and innovation are relatively strong The ERDF budgets however were relatively small
In the Icircle-de-France (IdF) there was a pragmatic and demand-driven implementation
palliating perceived gaps in regional public support and enlarging the available financial
support targeting high growth high tech sectors appears to pay off in the IdF context In
Denmark there was a more strategic approach which was well integrated into national
strategy but with flexible implementation with strong stakeholder involvement in 6 regional
programmes There were interesting applications of the triple helix model amp successful cluster
developments
In all cases there was comment on the strength of monitoring and evaluation systems These
varied considerably from a relatively under-developed system in Apulia to a relatively strong
one in Icircle-de-France Denmark had organised a counterfactual analysis of enterprises
supported by the OP as against similar enterprises not receiving support
24 Synthesis
241 Diversity across themes
The first impression made by the presentations was the diversity of the interventions in the
eight cases There are several dimensions to these differences beginning with the context in
which the OP was implemented where there were differences relating to
The size of the regionsMember States targeted The absolute and relative size of the Programmes within the regions and countries in which
they operated and the effects that could reasonably be expected from them The size and structure of the SME population its sectoral distribution and its capacities
and assets The economic context within which the OPs operated and especially the way that the
economic crisis impacted on each area over the course of the programming period The endowment of SME and innovation support infrastructure and culture determining the
base on which the OPs could build
In fact the detailed investigations have confirmed the importance of the specific context in
which each OP was conceived and implemented for the determination of the nature of the
policy instruments used and the results to be expected from them This context is important
for any fair assessment of the achievements or otherwise of each Programme
Nonetheless when it came to the processes used to promote SMEs and innovation the
differences could often be considered as involving variations around a series of central themes
In all the cases considered there was a strong emphasis on promoting innovation as a
central objective yet this was done in a variety of ways and had differing relationships with
the objective of SME promotion In a number of cases support for SMEs was itself very much
seen as part of this process of encouraging innovation including in the case of the Icircle-de-
France where it involved encouraging new forms of enterprise dedicated to pursuing social
innovation In other cases however there was a clear commitment to provide general support
to SMEs and especially after the extent of the economic crisis became apparent some re-
programming to ensure this
Consequently targeting policies were not as clear cut as might have been expected There
were cases where SMEs were targeted directly ndash Apulia and Castile amp Leon but even here
there was also an element of trying to ensure that enterprises that were capable of benefitting
from support were the one to receive it while elsewhere a subtle lsquosoft targetingrsquo was more
evident where the instruments were shaped to achieve a certain selectivity not by defining
exclusions but by requiring for instance a commitment to change and growth on the part of
18
participants In Denmark for example those encouraged to become members of cluster
organisations had to be interested in developing their growth potential if their participation
was to serve any purpose This in effect led to a self-exclusion by those not willing to play
along with the support offered
The nature of the instruments used to implement OPs were shaped by a number of factors
Just as the objectives of an OP must take into account a large variety of details relating to the
circumstances of the relevant region or country so the precise characteristics of the
instruments to be applied must reflect not only the particular purposes for which they are to be
used the nature of the target group to be addressed and the economic and social
circumstances of the area concerned but the legacy of past interventions as well in the form
of existing support infrastructure and the capabilities developed in preceding periods In other
words support instruments are built on past actions both for positive reasons (exploiting
existing assets) but also because of their familiarity or a certain institutional inertia In any
event the large variety of circumstances in which the particular features of instruments are
determined gives rise to a wide array of actual policy instruments The review of 50 OPs
conducted as part of the evaluation identified 648 different instruments
This large variety of specific instruments however is mainly accounted for in that they are
often designed as elaborations of well-established approaches but addressing particular needs
and circumstances and also a variety of potential targets So building capacities and
competences can be undertaken for enterprises and their managers of varying degrees of
sophistication and background knowledge and can relate to a variety of matters from technical
issues to general management marketing exporting or more specialised issues such as IP
management The process of capacity building can therefore take many forms
The extent of the provision of access to finance is complicated by the question of whether or
not the provision of direct grants counts as part of this function Some substantial sums were
provided in this form by some of the OPs However generally an expected move towards the
provision of more indirect finance ndash loans and equity through intermediaries - was not as
marked as may have been anticipated General access to finance measures (equity
guarantees and reduction of credit interest) accounted for 38 of the funds allocated by the
Lithuanian OP and repayable financial support for 26 of the Apulian OP equity finance 14
in the case of Icircle-de-France 23 for loans and 35 for equity finance in that of Saxony The
other OPs had rather small amounts devoted to indirect financial instruments if any at all An
explanation offered of the small allocations to these instruments in some OPs was that the
crisis discouraged experimentation in this area that it is relatively difficult and expensive to
manage financial instruments and outside the experience of most Managing Authorities that
relatively large sums are necessary to make any appreciable impact and that results can often
take a long time to materialise
There were considerable differences in the extent to which there was provision of direct
support to enterprises In Saxony over 90 of the funds were in the form of grants and in
Icircle-de-France and in Apulia grants largely paid directly to enterprises accounted for 56 and
41 respectively of the funds allocated In Denmark by contrast no grants were paid directly
to enterprises unless they were partners in projects receiving support for developing clusters
or relationships with universities or in a small number of cases where they received funds to
hire private sector business advisers
It is useful to distinguish between different types of direct support In Poland and in Saxony a
large proportion of the direct support was for investments in innovative undertakings In
Apulia although the main part of support went to individual enterprises or SMEs it was more
evenly split between support for investment (by micro and small firms) and investment in
research In Icircle-de-France the weight of the direct support was for research projects
19
It is also interesting that analysis of a wider group of 50 OPs shows that manufacturing firms
received 33 of support ndash much greater than their share in the economy as a whole It also
showed that more than 50 of support has been directed to low-tech firms
Different forms of business support were available across the OPs including access to public
and private sources of information and advice incubator services and assistance for exporters
Castile amp Leon targeted the improvement of management capacities and this approach was
implicit in a number of other OPs
Approaches to support for innovation also took different forms Overall in the broader range
of OPs examined 24 of support was for RampD and a similar amount for business development
and direct support for RampD in collaborative and non-collaborative projects was a significant
feature of the OPs for Apulia Castile amp Leon Icircle-de-France Lithuania Poland and Saxony but
not in the Czech Republic and Denmark where FP7 was thought to be the appropriate vehicle
In Saxony strengthening the research base of enterprises in the local economy and promoting
the exploitation of knowledge was central to the OP so that the majority of the funds were
provided for investment in fixed capital and in supporting RampD This implied a certain targeting
within the SME population In Icircle-de-France the bulk of the support also went to research
projects and support for technology transfer and incubators though there was also support for
SME creation in distressed areas for access to finance and for social innovation projects In
Denmark the focus was more on promoting clusters and encouraging links between enterprises
and science institutions
In some cases however the picture was more mixed In Lithuania where 38 of funding went
to access to finance measures a further 30 to up-grading technology and processes but
there was also direct support for RampD and RampD infrastructure and support for networking and
clusters promoting innovation Similarly in Apulia there was support for research by SMEs
and measures to promote consulting services for technical innovation regional innovation
partnerships and aid for access to ICT alongside aid to investment in micro and small firms
and credit guarantees and support for tourism
Knowledge transfer also featured in many of the OPs Building relationships between
knowledge institutions and enterprises was an important objective for Denmark as part of
developing regional innovation capacities though the results were mixed at least in part
because of an unresponsive culture in certain universities In other cases these relationships
were promoted by collaborative research projects (Icircle-de-France Saxony) and in the case of
Lithuania by the use of vouchers Overall however it is perhaps surprising that building
relationships between knowledge institutions and enterprises did not have a higher profile
The development of clusters was an instrument used in the Czech Republic Lithuania and
Denmark where in some regions it absorbed a large proportion of the available funds and
where the focus was on emerging sectors such as clean technology energy health and welfare
and the experience economy Cluster support in this case consisted of a relatively complex set
of services provided for cluster members In the Czech Republic and Lithuania cluster
development was itself less developed and related to low-tech sectors with potential for
innovation and growth
Underlying these differences between Programmes there were variations in the approach to
governance This has become an important issue for all of the regions and countries
considered In part this is linked to the aspiration at least to establish transparent evidence-
based policy processes which has brought in the development of monitoring and evaluation
systems but there are more central elements of governance to do with who is involved in
decision-making and how decisions are taken that are also part of the picture The
development of stakeholder involvement in strategy formation in the setting of priorities and
even in elements of implementation was apparent in many of the cases throughout the
20
programming period In Denmark the whole (national and EU) strategy was based from the
beginning on a national consensus established through political and open public debates and
implemented through regional bodies with a strong stakeholder representation In Apulia a
self-evaluation exercise led to new departures in response to the crisis
There were however other issues of governance alluded to in the seminar relating to but the
alignment of the OP with national strategies and the organisational mechanisms adopted to
implement the strategy chosen by each OP These can have considerable influence on the
degree to which the Managing Authority can directly influence the implementation
mechanisms
Finally account must be taken of the differential impacts of the recession In Apulia and
Castile amp Leon there was formal reprogramming largely as a result of the recession and
changes in the instrument set utilised To a certain extent this meant a scaling down of
ambitions when for many enterprises it was a matter of survival rather than developing new
ventures Even here though the story does not always move in the same direction In the case
of Apulia for instance while it was necessary in part to refocus support on the broad range of
enterprises suffering from the recession at the same time the crisis acted as a stimulus to new
thinking after the conduct of a self-evaluation exercise
242 A common framework
Overall it can be seen that within the diversity shown by the eight cases there are at least a
number of common themes which are belong addressed in different ways The question does
arise however of whether it might be possible to go further to offer an explanation of the
diversity
External experts at the seminar advised that a theoretical framework should be sought to
make greater sense of the quantitative material and provide the basis for a more deliberative
judgement on the effectiveness of policy and how support funds can be best spent
One possibility is to take the differing circumstances of the OPs as themselves being an
explanatory factor and in a further step see the differences in the nature of the instruments
deployed as being part of an evolutionary process This approach also has the merit of linking
a debate on instruments with broader considerations in the promotion of innovation and
competitiveness at a European level
The reference in section 1 above to the position of the countries covered by the case studies
and their innovation performance as characterised by the Innovation Union Scoreboard and
in further detail at a regional level by the Regional Innovation Scoreboard 2012 allows a
distinction to be made between countries and regions in four categories - lsquoleadersrsquo lsquofollowersrsquo
those with a moderate lsquoperformancersquo and those lsquocatching-uprsquo The respective positions of the
eight cases have been set out in section 1
The approach suggested at the seminar was essentially to explore the hypothesis that the
overall lsquoinnovationrsquo position of regionscountries determines the types of instrument
used their targeting and ultimately their relative performance It may be that the
categorisation help us explain the differences in the objectives set the instruments that are
appropriate and their targeting and that this in turn also influences the performance that can
be expected Regionscountries for instance that are in the lsquoless developedrsquo categories may
have to strengthen their basic support infrastructure and service provision and the
performance of the enterprise base and that of other important players such as knowledge
institutions public authorities etc The regionscountries in the more lsquoadvancedrsquo positions on
the other hand have to build on their strengths in order to maintain or enhance their position
by promoting more productive research and strengthening the links between the science base
and enterprises
21
This possible framework provides an interesting line of enquiry to be followed up in further
stages of the evaluation It does however also address other issues raised in the seminar
such as whether support should be directed to high-tech enterprises or as was argued in
relation to a number of the countries present the gains to be had from the improvement of
the performance of mid and low-tech firms are more relevant in certain stages of
development
22
3 NEXT STEP THEORY-BASED IMPACT EVALUATIONS
As the implementation of the evaluation study proceeds and the case studies (Task 3) are
being drafted the Team is in the course of identifying three policy instruments to be assessed
by as many theory-based impact evaluations as foreseen in Task 4 The three instruments
should be selected out of the long list of seven instruments suggested in the First Intermediate
Report and in consultation with the European Commission
The Team puts forward hereby a possible list of three policy instruments The main criteria
considered for their selection are
i The degree of representativeness of the typologies of policy instruments used in the 50
OPs as outlined in the First Intermediate Report the most significant categories of
policy instruments in terms of public expenditure are
Business creation and development ie instruments designed to stimulate
investments in the business sector without a predominant emphasis on RampD
and innovation
Support for RampD projects
Support for the development of technological and non-technological innovation
without any research and experimental development activities
ii The feasibility of a theory-based impact evaluation based on a survey of beneficiaries
which implies the availability of a sufficiently large number of beneficiaries and the
possibility to easily get their email contacts also with the help of the Managing
Authority or the implementing body the best option is to have at least some hundreds
beneficiary SMEs for each instrument
iii The importance of the policy instrument within the policy mix of the OP which ensures
the availability of a good amount of information resulting from the case study
regarding in particular its logic of intervention information about beneficiaries and
effectiveness
iv Preference is assigned to instruments on which no other surveys to beneficiaries have
been conducted so far in order not to put excessive burden on the same SMEs which
could undermine their willingness to contribute to our study
Based on these considerations the three policy instruments we propose for a theory-based
impact evaluation are presented in the table below It can be noticed that the list also ensures
geographical balance between Convergence and Competitiveness and Employment region as
well as Old and New Member States and regional and national OPs For the sake of
completeness and comparability for all the seven candidate instruments the pros and cons for
selecting each of them are detailed
23
Table 4 Comparison of the policy instruments and reasons for selection
Proposed for
selection
Type of policy
instrument
Selected policy
instrument
Operational Programme and
type of regioncountry
Descriptive information Specific reason for selection
for a TBIE Possible reasons for
rejection
YES Business creation and development
ldquoAid to investment projects by micro and small enterprisesrdquo
Regional OP Apulia (Italy) - Convergence region
- Old Member State
The instrument supports the purchase of machineries computer systems buildings construction works for enterprises in order to encourage the development of micro and small companies It benefitted more than 3 thousand SMEs For around 30 of beneficiaries grants have been combined with credit guarantees
- Very common type of SME support on which vast literature has been produced
- Very large number of beneficiary SMEs
- The strong relationship already established with local stakeholders and many SMEs would allow to easily and quickly test the surveyrsquos questionnaires before the launch of the three TBIEs
- For some SMEs opportunity to analyse the complimentary efforts of two forms of support (grants and a combination of grants and guarantees) and their respective effectiveness
- None
YES Support for RampD projects
ldquoGrants for Industrial Research and Experimental Developmentrdquo
Regional OP Castilla y Leon (Spain) - Competitiveness and Employment region
- Old Member State
The instrument encourages the development of RampD projects with the purpose of increasing the basis of number of innovative enterprises investment and personnel in RampD In total 759 projects of SMEs have been supported through grants 204 SMEs have conducted their project in collaboration with research organisations
- In analysing the achievement of beneficiary SMEs as well as the behavioural change opportunity to distinguish between SMEs which have realized their projects independently rather than in collaboration with a research centre
- According to the country expert among all the policy instruments of this OP this is the one for which it would be easier to get the contact details of beneficiary SMEs
- Possibility to get active collaboration by the regional authority ADE eg sending out an introductory letter to all
- None
24
Proposed for
selection
Type of policy
instrument
Selected policy
instrument
Operational Programme and
type of regioncountry
Descriptive information Specific reason for selection
for a TBIE Possible reasons for
rejection
SMEs mentioning that they will receive an invitation to a survey and inviting them to reply
YES Support for the development of technological and non-technological innovation
ldquoFinancing of individual projects for SMEsrdquo
National OP Poland Innovative Economy - Convergence country
- New Member State
The instrument provides grants to support the technological innovation of SMEs In particular it aims to stimulate the adoption of more risky and innovative solutions The instrument performed far better than expected 698 projects have been realised up to 2013 by approximately as many SMEs The instrument is delivered by a financial intermediary
- This instrument belongs to the OP which has provided the largest financial contribution to SMEs within the full sample of 50 OPs furthermore this is one of the core instrument of the programme as also reflected in the volume of public contribution which is among the highest of the OP (more than EUR 300 million fully targeted to SMEs)
- Opportunity to examine the role played by the intermediary according to the perceptions and opinions of beneficiary SMEs
- None
NO Support for RampD projects
ldquoRampD project grants for individual enterprisesrdquo
Germany regional OP Saxony - Convergence region
- Old Member State
The instrument provides grants to individual enterprises for supporting the implementation of RampD projects
- Evidence of achievement is already available since the instrument was subject of another evaluation study and enterprise survey a few years ago The TBIE would allow to better qualify the instrumentsrsquo achievements and the causal chain leading to the certain effects
- According to the country experts beneficiary SMEs may be reluctant to participate to another survey
- Less than 200 beneficiary SMEs a lower number as compared with other candidate policy instruments
- It is still uncertain whether it will be possible to get the email addresses of beneficiary SMEs
25
Proposed for
selection
Type of policy
instrument
Selected policy
instrument
Operational Programme and
type of regioncountry
Descriptive information Specific reason for selection
for a TBIE Possible reasons for
rejection
NO Support for the development of technological and non-technological innovation
ldquoSupport for technological upgrade - LEADER LTrdquo
Lithuania - Economic Growth - Convergence country
- New Member State
The instrument supports the increase of productivity in enterprises by supporting production technology upgrading The investment into the acquisition or upgrade of technologies and related internal engineering infrastructures are supported
- Email contacts particularly easy to be collected
- Result indicators are available due to an effective Structural Funds monitoring system and because the instrument was already subject of a previous evaluation study
- Very low number of beneficiary SMEs (69) which would make this instrument less suitable for launching an on-line survey as compared with other candidate instruments
NO Support for the development of technological and non-technological innovation
ldquoSupport for non-technological innovation - PROCESS LTrdquo
Lithuania - Economic Growth - Convergence country
- New Member State
The instrument aims to increase productivity in enterprises by implementing modern management methods and processes except of personnel management systems The purchase of external consulting services is supported in order to upgrade enterprises management processes
- Email contacts particularly easy to be collected
- Result indicators are available due to an effective Structural Funds monitoring system and because the instrument was already subject of a previous evaluation study
- The instrument is considered highly relevant by the target beneficiaries
- Very low number of beneficiary SMEs (119)
- As compared with other categories of policy instruments support for non-technological innovation is relatively less significant and representative of the typical forms of support provided to SMEs in the EU
NO Support for networking
ldquoInteraction on Innovationrdquo later merged with ldquoCluster relationshiprdquo
Denmark Innovation and Knowledge OP - Competitiveness and Employment country
- Old Member State
The policy instrument aims at analysing opportunities for creating clusters promoting networks and the formation of clusters of SMEs in particular as well as clusters of supplier networks for SMEs These objectives are pursued by providing grants to SMEs in partnership with universities (according to the triple helix model)
- Opportunity to better analyse the effects of a policy instrument on which a vast amount of literature has been produced
- Opportunity to dig into the collaboration mechanisms between SMEs and universities
- As compared with other categories of policy instruments support for networking is relatively less significant and representative of the typical forms of support provided to SMEs in the EU
- The number and characteristics of SMEs benefitting from this instrument remain unknown even after implementing the case
26
Proposed for
selection
Type of policy
instrument
Selected policy
instrument
Operational Programme and
type of regioncountry
Descriptive information Specific reason for selection
for a TBIE Possible reasons for
rejection
study The lack of data at policy instrument level prevents from identifying the beneficiary SMEs to which launching the on-line survey
27
4 ANNEX SEMINAR PARTICIPANTS
Name Description Organisation
DG REGIO Evaluation Unit
Rudolf Niessler Director DG REGIO B Policy
Veronica Gaffey Head of Evaluation Unit DG REGIO B2
Marielle Richeacute Evaluation Unit DG REGIO B2
Kai Stryczynski Deputy Head of Unit DG REGIO B2
Daniel Mouqueacute Evaluation Unit DG REGIO B2
CSIL Evaluation Team
Massimo Florio Evaluation team Director CSIL
Julie Pellegrin Evaluation team Project Manager CSIL
Silvia Vignetti Evaluation team CSIL
Emanuela Sirtori Evaluation team CSIL
Mike Coyne Evaluation team CSES
Malin Carlberg Evaluation team CSES
Anna-Maria Krarup Evaluation team CSES
Christian Koehler Case Study Saxony Centre for European Economic Research (ZEW)
Jaime del Castillo Case Study Castile amp Leon President INFYDE
Agnė Paliokaitė Case Study Lithuania Visionary Analytics
Elena Jarocinska Case Study Poland
Commission Officials
Katja Reppel Deputy Head of Unit Competence Centre Smart and Sustainable Growth
DG REGIO G1
Bernd Reichert Head of Unit H2020 SME EASME
Peter Wragg Head of Unit SME Access to Markets DG GROW F2
Jean David Malo Head of Unit SMEs Financial Instruments amp State Aid DG RTD B3
28
Istvan Nemeth Policy Officer - Enterprise Europe Network DG GROW F2
External Experts
Harvey Armstrong Professor Emeritus in the Department of Geography University of Sheffield
Robert Picciotto Visiting Professor Kings College London
Mark Sanders Professor University of Utrecht
Jiri Blazek Associate Professor Charles University Prague
Stakeholders ndash Case Studies
Adriana Agrimi Manager of RampI Policy Instrument Apulia Managing Authority
Kasper Westh Senior official Growth Forum Secretariat South Denmark
Simona Daukilaite
Deputy Head of the Economic Growth Operational Programme
Economic Growth OP Lithuania Managing Authority
Beatriz Casado Saenz Vice-General Director ADE (Development Agency Castile amp Leon)
Tomasz Kula Analysis and Evaluation Team Competitiveness and Innovation Department
Ministry of Infrastructure and Development (PL)
Representatives of other Work Packages
Terry Ward WP 1 Applica
Andreas Resch WP 3 Metis-Vienna
Anda Berenyi WP 4 KPMG
LEGAL NOTICE
This document has been prepared for the European Commission however it reflects the views only of the authors and the Commission cannot be held responsible for any use which may be made of the information
contained therein
More information on the European Union is available on the Internet (httpwwweuropaeu)
Luxembourg Publications Office of the European Union 2014
ISBN [number]
doi[number]
copy European Union 2015
Reproduction is authorised provided the source is acknowledged
Printed in [Country]
PRINTED ON ELEMENTAL CHLORINE-FREE BLEACHED PAPER (ECF)
PRINTED ON TOTALLY CHLORINE-FREE BLEACHED PAPER (TCF) PRINTED ON RECYCLED PAPER
PRINTED ON PROCESS CHLORINE-FREE RECYCLED PAPER (PCF)
Europe Direct is a service to help you find answers to your questions about the European Union
Freephone number ()
00 800 6 7 8 9 10 11
() The information given is free as are most calls (though some operators phone boxes or hotels may charge you)
17
23 ERDF and the regional policy mix
The last two cases are examples of OPs for areas which are relatively prosperous and where
RampD and innovation are relatively strong The ERDF budgets however were relatively small
In the Icircle-de-France (IdF) there was a pragmatic and demand-driven implementation
palliating perceived gaps in regional public support and enlarging the available financial
support targeting high growth high tech sectors appears to pay off in the IdF context In
Denmark there was a more strategic approach which was well integrated into national
strategy but with flexible implementation with strong stakeholder involvement in 6 regional
programmes There were interesting applications of the triple helix model amp successful cluster
developments
In all cases there was comment on the strength of monitoring and evaluation systems These
varied considerably from a relatively under-developed system in Apulia to a relatively strong
one in Icircle-de-France Denmark had organised a counterfactual analysis of enterprises
supported by the OP as against similar enterprises not receiving support
24 Synthesis
241 Diversity across themes
The first impression made by the presentations was the diversity of the interventions in the
eight cases There are several dimensions to these differences beginning with the context in
which the OP was implemented where there were differences relating to
The size of the regionsMember States targeted The absolute and relative size of the Programmes within the regions and countries in which
they operated and the effects that could reasonably be expected from them The size and structure of the SME population its sectoral distribution and its capacities
and assets The economic context within which the OPs operated and especially the way that the
economic crisis impacted on each area over the course of the programming period The endowment of SME and innovation support infrastructure and culture determining the
base on which the OPs could build
In fact the detailed investigations have confirmed the importance of the specific context in
which each OP was conceived and implemented for the determination of the nature of the
policy instruments used and the results to be expected from them This context is important
for any fair assessment of the achievements or otherwise of each Programme
Nonetheless when it came to the processes used to promote SMEs and innovation the
differences could often be considered as involving variations around a series of central themes
In all the cases considered there was a strong emphasis on promoting innovation as a
central objective yet this was done in a variety of ways and had differing relationships with
the objective of SME promotion In a number of cases support for SMEs was itself very much
seen as part of this process of encouraging innovation including in the case of the Icircle-de-
France where it involved encouraging new forms of enterprise dedicated to pursuing social
innovation In other cases however there was a clear commitment to provide general support
to SMEs and especially after the extent of the economic crisis became apparent some re-
programming to ensure this
Consequently targeting policies were not as clear cut as might have been expected There
were cases where SMEs were targeted directly ndash Apulia and Castile amp Leon but even here
there was also an element of trying to ensure that enterprises that were capable of benefitting
from support were the one to receive it while elsewhere a subtle lsquosoft targetingrsquo was more
evident where the instruments were shaped to achieve a certain selectivity not by defining
exclusions but by requiring for instance a commitment to change and growth on the part of
18
participants In Denmark for example those encouraged to become members of cluster
organisations had to be interested in developing their growth potential if their participation
was to serve any purpose This in effect led to a self-exclusion by those not willing to play
along with the support offered
The nature of the instruments used to implement OPs were shaped by a number of factors
Just as the objectives of an OP must take into account a large variety of details relating to the
circumstances of the relevant region or country so the precise characteristics of the
instruments to be applied must reflect not only the particular purposes for which they are to be
used the nature of the target group to be addressed and the economic and social
circumstances of the area concerned but the legacy of past interventions as well in the form
of existing support infrastructure and the capabilities developed in preceding periods In other
words support instruments are built on past actions both for positive reasons (exploiting
existing assets) but also because of their familiarity or a certain institutional inertia In any
event the large variety of circumstances in which the particular features of instruments are
determined gives rise to a wide array of actual policy instruments The review of 50 OPs
conducted as part of the evaluation identified 648 different instruments
This large variety of specific instruments however is mainly accounted for in that they are
often designed as elaborations of well-established approaches but addressing particular needs
and circumstances and also a variety of potential targets So building capacities and
competences can be undertaken for enterprises and their managers of varying degrees of
sophistication and background knowledge and can relate to a variety of matters from technical
issues to general management marketing exporting or more specialised issues such as IP
management The process of capacity building can therefore take many forms
The extent of the provision of access to finance is complicated by the question of whether or
not the provision of direct grants counts as part of this function Some substantial sums were
provided in this form by some of the OPs However generally an expected move towards the
provision of more indirect finance ndash loans and equity through intermediaries - was not as
marked as may have been anticipated General access to finance measures (equity
guarantees and reduction of credit interest) accounted for 38 of the funds allocated by the
Lithuanian OP and repayable financial support for 26 of the Apulian OP equity finance 14
in the case of Icircle-de-France 23 for loans and 35 for equity finance in that of Saxony The
other OPs had rather small amounts devoted to indirect financial instruments if any at all An
explanation offered of the small allocations to these instruments in some OPs was that the
crisis discouraged experimentation in this area that it is relatively difficult and expensive to
manage financial instruments and outside the experience of most Managing Authorities that
relatively large sums are necessary to make any appreciable impact and that results can often
take a long time to materialise
There were considerable differences in the extent to which there was provision of direct
support to enterprises In Saxony over 90 of the funds were in the form of grants and in
Icircle-de-France and in Apulia grants largely paid directly to enterprises accounted for 56 and
41 respectively of the funds allocated In Denmark by contrast no grants were paid directly
to enterprises unless they were partners in projects receiving support for developing clusters
or relationships with universities or in a small number of cases where they received funds to
hire private sector business advisers
It is useful to distinguish between different types of direct support In Poland and in Saxony a
large proportion of the direct support was for investments in innovative undertakings In
Apulia although the main part of support went to individual enterprises or SMEs it was more
evenly split between support for investment (by micro and small firms) and investment in
research In Icircle-de-France the weight of the direct support was for research projects
19
It is also interesting that analysis of a wider group of 50 OPs shows that manufacturing firms
received 33 of support ndash much greater than their share in the economy as a whole It also
showed that more than 50 of support has been directed to low-tech firms
Different forms of business support were available across the OPs including access to public
and private sources of information and advice incubator services and assistance for exporters
Castile amp Leon targeted the improvement of management capacities and this approach was
implicit in a number of other OPs
Approaches to support for innovation also took different forms Overall in the broader range
of OPs examined 24 of support was for RampD and a similar amount for business development
and direct support for RampD in collaborative and non-collaborative projects was a significant
feature of the OPs for Apulia Castile amp Leon Icircle-de-France Lithuania Poland and Saxony but
not in the Czech Republic and Denmark where FP7 was thought to be the appropriate vehicle
In Saxony strengthening the research base of enterprises in the local economy and promoting
the exploitation of knowledge was central to the OP so that the majority of the funds were
provided for investment in fixed capital and in supporting RampD This implied a certain targeting
within the SME population In Icircle-de-France the bulk of the support also went to research
projects and support for technology transfer and incubators though there was also support for
SME creation in distressed areas for access to finance and for social innovation projects In
Denmark the focus was more on promoting clusters and encouraging links between enterprises
and science institutions
In some cases however the picture was more mixed In Lithuania where 38 of funding went
to access to finance measures a further 30 to up-grading technology and processes but
there was also direct support for RampD and RampD infrastructure and support for networking and
clusters promoting innovation Similarly in Apulia there was support for research by SMEs
and measures to promote consulting services for technical innovation regional innovation
partnerships and aid for access to ICT alongside aid to investment in micro and small firms
and credit guarantees and support for tourism
Knowledge transfer also featured in many of the OPs Building relationships between
knowledge institutions and enterprises was an important objective for Denmark as part of
developing regional innovation capacities though the results were mixed at least in part
because of an unresponsive culture in certain universities In other cases these relationships
were promoted by collaborative research projects (Icircle-de-France Saxony) and in the case of
Lithuania by the use of vouchers Overall however it is perhaps surprising that building
relationships between knowledge institutions and enterprises did not have a higher profile
The development of clusters was an instrument used in the Czech Republic Lithuania and
Denmark where in some regions it absorbed a large proportion of the available funds and
where the focus was on emerging sectors such as clean technology energy health and welfare
and the experience economy Cluster support in this case consisted of a relatively complex set
of services provided for cluster members In the Czech Republic and Lithuania cluster
development was itself less developed and related to low-tech sectors with potential for
innovation and growth
Underlying these differences between Programmes there were variations in the approach to
governance This has become an important issue for all of the regions and countries
considered In part this is linked to the aspiration at least to establish transparent evidence-
based policy processes which has brought in the development of monitoring and evaluation
systems but there are more central elements of governance to do with who is involved in
decision-making and how decisions are taken that are also part of the picture The
development of stakeholder involvement in strategy formation in the setting of priorities and
even in elements of implementation was apparent in many of the cases throughout the
20
programming period In Denmark the whole (national and EU) strategy was based from the
beginning on a national consensus established through political and open public debates and
implemented through regional bodies with a strong stakeholder representation In Apulia a
self-evaluation exercise led to new departures in response to the crisis
There were however other issues of governance alluded to in the seminar relating to but the
alignment of the OP with national strategies and the organisational mechanisms adopted to
implement the strategy chosen by each OP These can have considerable influence on the
degree to which the Managing Authority can directly influence the implementation
mechanisms
Finally account must be taken of the differential impacts of the recession In Apulia and
Castile amp Leon there was formal reprogramming largely as a result of the recession and
changes in the instrument set utilised To a certain extent this meant a scaling down of
ambitions when for many enterprises it was a matter of survival rather than developing new
ventures Even here though the story does not always move in the same direction In the case
of Apulia for instance while it was necessary in part to refocus support on the broad range of
enterprises suffering from the recession at the same time the crisis acted as a stimulus to new
thinking after the conduct of a self-evaluation exercise
242 A common framework
Overall it can be seen that within the diversity shown by the eight cases there are at least a
number of common themes which are belong addressed in different ways The question does
arise however of whether it might be possible to go further to offer an explanation of the
diversity
External experts at the seminar advised that a theoretical framework should be sought to
make greater sense of the quantitative material and provide the basis for a more deliberative
judgement on the effectiveness of policy and how support funds can be best spent
One possibility is to take the differing circumstances of the OPs as themselves being an
explanatory factor and in a further step see the differences in the nature of the instruments
deployed as being part of an evolutionary process This approach also has the merit of linking
a debate on instruments with broader considerations in the promotion of innovation and
competitiveness at a European level
The reference in section 1 above to the position of the countries covered by the case studies
and their innovation performance as characterised by the Innovation Union Scoreboard and
in further detail at a regional level by the Regional Innovation Scoreboard 2012 allows a
distinction to be made between countries and regions in four categories - lsquoleadersrsquo lsquofollowersrsquo
those with a moderate lsquoperformancersquo and those lsquocatching-uprsquo The respective positions of the
eight cases have been set out in section 1
The approach suggested at the seminar was essentially to explore the hypothesis that the
overall lsquoinnovationrsquo position of regionscountries determines the types of instrument
used their targeting and ultimately their relative performance It may be that the
categorisation help us explain the differences in the objectives set the instruments that are
appropriate and their targeting and that this in turn also influences the performance that can
be expected Regionscountries for instance that are in the lsquoless developedrsquo categories may
have to strengthen their basic support infrastructure and service provision and the
performance of the enterprise base and that of other important players such as knowledge
institutions public authorities etc The regionscountries in the more lsquoadvancedrsquo positions on
the other hand have to build on their strengths in order to maintain or enhance their position
by promoting more productive research and strengthening the links between the science base
and enterprises
21
This possible framework provides an interesting line of enquiry to be followed up in further
stages of the evaluation It does however also address other issues raised in the seminar
such as whether support should be directed to high-tech enterprises or as was argued in
relation to a number of the countries present the gains to be had from the improvement of
the performance of mid and low-tech firms are more relevant in certain stages of
development
22
3 NEXT STEP THEORY-BASED IMPACT EVALUATIONS
As the implementation of the evaluation study proceeds and the case studies (Task 3) are
being drafted the Team is in the course of identifying three policy instruments to be assessed
by as many theory-based impact evaluations as foreseen in Task 4 The three instruments
should be selected out of the long list of seven instruments suggested in the First Intermediate
Report and in consultation with the European Commission
The Team puts forward hereby a possible list of three policy instruments The main criteria
considered for their selection are
i The degree of representativeness of the typologies of policy instruments used in the 50
OPs as outlined in the First Intermediate Report the most significant categories of
policy instruments in terms of public expenditure are
Business creation and development ie instruments designed to stimulate
investments in the business sector without a predominant emphasis on RampD
and innovation
Support for RampD projects
Support for the development of technological and non-technological innovation
without any research and experimental development activities
ii The feasibility of a theory-based impact evaluation based on a survey of beneficiaries
which implies the availability of a sufficiently large number of beneficiaries and the
possibility to easily get their email contacts also with the help of the Managing
Authority or the implementing body the best option is to have at least some hundreds
beneficiary SMEs for each instrument
iii The importance of the policy instrument within the policy mix of the OP which ensures
the availability of a good amount of information resulting from the case study
regarding in particular its logic of intervention information about beneficiaries and
effectiveness
iv Preference is assigned to instruments on which no other surveys to beneficiaries have
been conducted so far in order not to put excessive burden on the same SMEs which
could undermine their willingness to contribute to our study
Based on these considerations the three policy instruments we propose for a theory-based
impact evaluation are presented in the table below It can be noticed that the list also ensures
geographical balance between Convergence and Competitiveness and Employment region as
well as Old and New Member States and regional and national OPs For the sake of
completeness and comparability for all the seven candidate instruments the pros and cons for
selecting each of them are detailed
23
Table 4 Comparison of the policy instruments and reasons for selection
Proposed for
selection
Type of policy
instrument
Selected policy
instrument
Operational Programme and
type of regioncountry
Descriptive information Specific reason for selection
for a TBIE Possible reasons for
rejection
YES Business creation and development
ldquoAid to investment projects by micro and small enterprisesrdquo
Regional OP Apulia (Italy) - Convergence region
- Old Member State
The instrument supports the purchase of machineries computer systems buildings construction works for enterprises in order to encourage the development of micro and small companies It benefitted more than 3 thousand SMEs For around 30 of beneficiaries grants have been combined with credit guarantees
- Very common type of SME support on which vast literature has been produced
- Very large number of beneficiary SMEs
- The strong relationship already established with local stakeholders and many SMEs would allow to easily and quickly test the surveyrsquos questionnaires before the launch of the three TBIEs
- For some SMEs opportunity to analyse the complimentary efforts of two forms of support (grants and a combination of grants and guarantees) and their respective effectiveness
- None
YES Support for RampD projects
ldquoGrants for Industrial Research and Experimental Developmentrdquo
Regional OP Castilla y Leon (Spain) - Competitiveness and Employment region
- Old Member State
The instrument encourages the development of RampD projects with the purpose of increasing the basis of number of innovative enterprises investment and personnel in RampD In total 759 projects of SMEs have been supported through grants 204 SMEs have conducted their project in collaboration with research organisations
- In analysing the achievement of beneficiary SMEs as well as the behavioural change opportunity to distinguish between SMEs which have realized their projects independently rather than in collaboration with a research centre
- According to the country expert among all the policy instruments of this OP this is the one for which it would be easier to get the contact details of beneficiary SMEs
- Possibility to get active collaboration by the regional authority ADE eg sending out an introductory letter to all
- None
24
Proposed for
selection
Type of policy
instrument
Selected policy
instrument
Operational Programme and
type of regioncountry
Descriptive information Specific reason for selection
for a TBIE Possible reasons for
rejection
SMEs mentioning that they will receive an invitation to a survey and inviting them to reply
YES Support for the development of technological and non-technological innovation
ldquoFinancing of individual projects for SMEsrdquo
National OP Poland Innovative Economy - Convergence country
- New Member State
The instrument provides grants to support the technological innovation of SMEs In particular it aims to stimulate the adoption of more risky and innovative solutions The instrument performed far better than expected 698 projects have been realised up to 2013 by approximately as many SMEs The instrument is delivered by a financial intermediary
- This instrument belongs to the OP which has provided the largest financial contribution to SMEs within the full sample of 50 OPs furthermore this is one of the core instrument of the programme as also reflected in the volume of public contribution which is among the highest of the OP (more than EUR 300 million fully targeted to SMEs)
- Opportunity to examine the role played by the intermediary according to the perceptions and opinions of beneficiary SMEs
- None
NO Support for RampD projects
ldquoRampD project grants for individual enterprisesrdquo
Germany regional OP Saxony - Convergence region
- Old Member State
The instrument provides grants to individual enterprises for supporting the implementation of RampD projects
- Evidence of achievement is already available since the instrument was subject of another evaluation study and enterprise survey a few years ago The TBIE would allow to better qualify the instrumentsrsquo achievements and the causal chain leading to the certain effects
- According to the country experts beneficiary SMEs may be reluctant to participate to another survey
- Less than 200 beneficiary SMEs a lower number as compared with other candidate policy instruments
- It is still uncertain whether it will be possible to get the email addresses of beneficiary SMEs
25
Proposed for
selection
Type of policy
instrument
Selected policy
instrument
Operational Programme and
type of regioncountry
Descriptive information Specific reason for selection
for a TBIE Possible reasons for
rejection
NO Support for the development of technological and non-technological innovation
ldquoSupport for technological upgrade - LEADER LTrdquo
Lithuania - Economic Growth - Convergence country
- New Member State
The instrument supports the increase of productivity in enterprises by supporting production technology upgrading The investment into the acquisition or upgrade of technologies and related internal engineering infrastructures are supported
- Email contacts particularly easy to be collected
- Result indicators are available due to an effective Structural Funds monitoring system and because the instrument was already subject of a previous evaluation study
- Very low number of beneficiary SMEs (69) which would make this instrument less suitable for launching an on-line survey as compared with other candidate instruments
NO Support for the development of technological and non-technological innovation
ldquoSupport for non-technological innovation - PROCESS LTrdquo
Lithuania - Economic Growth - Convergence country
- New Member State
The instrument aims to increase productivity in enterprises by implementing modern management methods and processes except of personnel management systems The purchase of external consulting services is supported in order to upgrade enterprises management processes
- Email contacts particularly easy to be collected
- Result indicators are available due to an effective Structural Funds monitoring system and because the instrument was already subject of a previous evaluation study
- The instrument is considered highly relevant by the target beneficiaries
- Very low number of beneficiary SMEs (119)
- As compared with other categories of policy instruments support for non-technological innovation is relatively less significant and representative of the typical forms of support provided to SMEs in the EU
NO Support for networking
ldquoInteraction on Innovationrdquo later merged with ldquoCluster relationshiprdquo
Denmark Innovation and Knowledge OP - Competitiveness and Employment country
- Old Member State
The policy instrument aims at analysing opportunities for creating clusters promoting networks and the formation of clusters of SMEs in particular as well as clusters of supplier networks for SMEs These objectives are pursued by providing grants to SMEs in partnership with universities (according to the triple helix model)
- Opportunity to better analyse the effects of a policy instrument on which a vast amount of literature has been produced
- Opportunity to dig into the collaboration mechanisms between SMEs and universities
- As compared with other categories of policy instruments support for networking is relatively less significant and representative of the typical forms of support provided to SMEs in the EU
- The number and characteristics of SMEs benefitting from this instrument remain unknown even after implementing the case
26
Proposed for
selection
Type of policy
instrument
Selected policy
instrument
Operational Programme and
type of regioncountry
Descriptive information Specific reason for selection
for a TBIE Possible reasons for
rejection
study The lack of data at policy instrument level prevents from identifying the beneficiary SMEs to which launching the on-line survey
27
4 ANNEX SEMINAR PARTICIPANTS
Name Description Organisation
DG REGIO Evaluation Unit
Rudolf Niessler Director DG REGIO B Policy
Veronica Gaffey Head of Evaluation Unit DG REGIO B2
Marielle Richeacute Evaluation Unit DG REGIO B2
Kai Stryczynski Deputy Head of Unit DG REGIO B2
Daniel Mouqueacute Evaluation Unit DG REGIO B2
CSIL Evaluation Team
Massimo Florio Evaluation team Director CSIL
Julie Pellegrin Evaluation team Project Manager CSIL
Silvia Vignetti Evaluation team CSIL
Emanuela Sirtori Evaluation team CSIL
Mike Coyne Evaluation team CSES
Malin Carlberg Evaluation team CSES
Anna-Maria Krarup Evaluation team CSES
Christian Koehler Case Study Saxony Centre for European Economic Research (ZEW)
Jaime del Castillo Case Study Castile amp Leon President INFYDE
Agnė Paliokaitė Case Study Lithuania Visionary Analytics
Elena Jarocinska Case Study Poland
Commission Officials
Katja Reppel Deputy Head of Unit Competence Centre Smart and Sustainable Growth
DG REGIO G1
Bernd Reichert Head of Unit H2020 SME EASME
Peter Wragg Head of Unit SME Access to Markets DG GROW F2
Jean David Malo Head of Unit SMEs Financial Instruments amp State Aid DG RTD B3
28
Istvan Nemeth Policy Officer - Enterprise Europe Network DG GROW F2
External Experts
Harvey Armstrong Professor Emeritus in the Department of Geography University of Sheffield
Robert Picciotto Visiting Professor Kings College London
Mark Sanders Professor University of Utrecht
Jiri Blazek Associate Professor Charles University Prague
Stakeholders ndash Case Studies
Adriana Agrimi Manager of RampI Policy Instrument Apulia Managing Authority
Kasper Westh Senior official Growth Forum Secretariat South Denmark
Simona Daukilaite
Deputy Head of the Economic Growth Operational Programme
Economic Growth OP Lithuania Managing Authority
Beatriz Casado Saenz Vice-General Director ADE (Development Agency Castile amp Leon)
Tomasz Kula Analysis and Evaluation Team Competitiveness and Innovation Department
Ministry of Infrastructure and Development (PL)
Representatives of other Work Packages
Terry Ward WP 1 Applica
Andreas Resch WP 3 Metis-Vienna
Anda Berenyi WP 4 KPMG
LEGAL NOTICE
This document has been prepared for the European Commission however it reflects the views only of the authors and the Commission cannot be held responsible for any use which may be made of the information
contained therein
More information on the European Union is available on the Internet (httpwwweuropaeu)
Luxembourg Publications Office of the European Union 2014
ISBN [number]
doi[number]
copy European Union 2015
Reproduction is authorised provided the source is acknowledged
Printed in [Country]
PRINTED ON ELEMENTAL CHLORINE-FREE BLEACHED PAPER (ECF)
PRINTED ON TOTALLY CHLORINE-FREE BLEACHED PAPER (TCF) PRINTED ON RECYCLED PAPER
PRINTED ON PROCESS CHLORINE-FREE RECYCLED PAPER (PCF)
Europe Direct is a service to help you find answers to your questions about the European Union
Freephone number ()
00 800 6 7 8 9 10 11
() The information given is free as are most calls (though some operators phone boxes or hotels may charge you)
18
participants In Denmark for example those encouraged to become members of cluster
organisations had to be interested in developing their growth potential if their participation
was to serve any purpose This in effect led to a self-exclusion by those not willing to play
along with the support offered
The nature of the instruments used to implement OPs were shaped by a number of factors
Just as the objectives of an OP must take into account a large variety of details relating to the
circumstances of the relevant region or country so the precise characteristics of the
instruments to be applied must reflect not only the particular purposes for which they are to be
used the nature of the target group to be addressed and the economic and social
circumstances of the area concerned but the legacy of past interventions as well in the form
of existing support infrastructure and the capabilities developed in preceding periods In other
words support instruments are built on past actions both for positive reasons (exploiting
existing assets) but also because of their familiarity or a certain institutional inertia In any
event the large variety of circumstances in which the particular features of instruments are
determined gives rise to a wide array of actual policy instruments The review of 50 OPs
conducted as part of the evaluation identified 648 different instruments
This large variety of specific instruments however is mainly accounted for in that they are
often designed as elaborations of well-established approaches but addressing particular needs
and circumstances and also a variety of potential targets So building capacities and
competences can be undertaken for enterprises and their managers of varying degrees of
sophistication and background knowledge and can relate to a variety of matters from technical
issues to general management marketing exporting or more specialised issues such as IP
management The process of capacity building can therefore take many forms
The extent of the provision of access to finance is complicated by the question of whether or
not the provision of direct grants counts as part of this function Some substantial sums were
provided in this form by some of the OPs However generally an expected move towards the
provision of more indirect finance ndash loans and equity through intermediaries - was not as
marked as may have been anticipated General access to finance measures (equity
guarantees and reduction of credit interest) accounted for 38 of the funds allocated by the
Lithuanian OP and repayable financial support for 26 of the Apulian OP equity finance 14
in the case of Icircle-de-France 23 for loans and 35 for equity finance in that of Saxony The
other OPs had rather small amounts devoted to indirect financial instruments if any at all An
explanation offered of the small allocations to these instruments in some OPs was that the
crisis discouraged experimentation in this area that it is relatively difficult and expensive to
manage financial instruments and outside the experience of most Managing Authorities that
relatively large sums are necessary to make any appreciable impact and that results can often
take a long time to materialise
There were considerable differences in the extent to which there was provision of direct
support to enterprises In Saxony over 90 of the funds were in the form of grants and in
Icircle-de-France and in Apulia grants largely paid directly to enterprises accounted for 56 and
41 respectively of the funds allocated In Denmark by contrast no grants were paid directly
to enterprises unless they were partners in projects receiving support for developing clusters
or relationships with universities or in a small number of cases where they received funds to
hire private sector business advisers
It is useful to distinguish between different types of direct support In Poland and in Saxony a
large proportion of the direct support was for investments in innovative undertakings In
Apulia although the main part of support went to individual enterprises or SMEs it was more
evenly split between support for investment (by micro and small firms) and investment in
research In Icircle-de-France the weight of the direct support was for research projects
19
It is also interesting that analysis of a wider group of 50 OPs shows that manufacturing firms
received 33 of support ndash much greater than their share in the economy as a whole It also
showed that more than 50 of support has been directed to low-tech firms
Different forms of business support were available across the OPs including access to public
and private sources of information and advice incubator services and assistance for exporters
Castile amp Leon targeted the improvement of management capacities and this approach was
implicit in a number of other OPs
Approaches to support for innovation also took different forms Overall in the broader range
of OPs examined 24 of support was for RampD and a similar amount for business development
and direct support for RampD in collaborative and non-collaborative projects was a significant
feature of the OPs for Apulia Castile amp Leon Icircle-de-France Lithuania Poland and Saxony but
not in the Czech Republic and Denmark where FP7 was thought to be the appropriate vehicle
In Saxony strengthening the research base of enterprises in the local economy and promoting
the exploitation of knowledge was central to the OP so that the majority of the funds were
provided for investment in fixed capital and in supporting RampD This implied a certain targeting
within the SME population In Icircle-de-France the bulk of the support also went to research
projects and support for technology transfer and incubators though there was also support for
SME creation in distressed areas for access to finance and for social innovation projects In
Denmark the focus was more on promoting clusters and encouraging links between enterprises
and science institutions
In some cases however the picture was more mixed In Lithuania where 38 of funding went
to access to finance measures a further 30 to up-grading technology and processes but
there was also direct support for RampD and RampD infrastructure and support for networking and
clusters promoting innovation Similarly in Apulia there was support for research by SMEs
and measures to promote consulting services for technical innovation regional innovation
partnerships and aid for access to ICT alongside aid to investment in micro and small firms
and credit guarantees and support for tourism
Knowledge transfer also featured in many of the OPs Building relationships between
knowledge institutions and enterprises was an important objective for Denmark as part of
developing regional innovation capacities though the results were mixed at least in part
because of an unresponsive culture in certain universities In other cases these relationships
were promoted by collaborative research projects (Icircle-de-France Saxony) and in the case of
Lithuania by the use of vouchers Overall however it is perhaps surprising that building
relationships between knowledge institutions and enterprises did not have a higher profile
The development of clusters was an instrument used in the Czech Republic Lithuania and
Denmark where in some regions it absorbed a large proportion of the available funds and
where the focus was on emerging sectors such as clean technology energy health and welfare
and the experience economy Cluster support in this case consisted of a relatively complex set
of services provided for cluster members In the Czech Republic and Lithuania cluster
development was itself less developed and related to low-tech sectors with potential for
innovation and growth
Underlying these differences between Programmes there were variations in the approach to
governance This has become an important issue for all of the regions and countries
considered In part this is linked to the aspiration at least to establish transparent evidence-
based policy processes which has brought in the development of monitoring and evaluation
systems but there are more central elements of governance to do with who is involved in
decision-making and how decisions are taken that are also part of the picture The
development of stakeholder involvement in strategy formation in the setting of priorities and
even in elements of implementation was apparent in many of the cases throughout the
20
programming period In Denmark the whole (national and EU) strategy was based from the
beginning on a national consensus established through political and open public debates and
implemented through regional bodies with a strong stakeholder representation In Apulia a
self-evaluation exercise led to new departures in response to the crisis
There were however other issues of governance alluded to in the seminar relating to but the
alignment of the OP with national strategies and the organisational mechanisms adopted to
implement the strategy chosen by each OP These can have considerable influence on the
degree to which the Managing Authority can directly influence the implementation
mechanisms
Finally account must be taken of the differential impacts of the recession In Apulia and
Castile amp Leon there was formal reprogramming largely as a result of the recession and
changes in the instrument set utilised To a certain extent this meant a scaling down of
ambitions when for many enterprises it was a matter of survival rather than developing new
ventures Even here though the story does not always move in the same direction In the case
of Apulia for instance while it was necessary in part to refocus support on the broad range of
enterprises suffering from the recession at the same time the crisis acted as a stimulus to new
thinking after the conduct of a self-evaluation exercise
242 A common framework
Overall it can be seen that within the diversity shown by the eight cases there are at least a
number of common themes which are belong addressed in different ways The question does
arise however of whether it might be possible to go further to offer an explanation of the
diversity
External experts at the seminar advised that a theoretical framework should be sought to
make greater sense of the quantitative material and provide the basis for a more deliberative
judgement on the effectiveness of policy and how support funds can be best spent
One possibility is to take the differing circumstances of the OPs as themselves being an
explanatory factor and in a further step see the differences in the nature of the instruments
deployed as being part of an evolutionary process This approach also has the merit of linking
a debate on instruments with broader considerations in the promotion of innovation and
competitiveness at a European level
The reference in section 1 above to the position of the countries covered by the case studies
and their innovation performance as characterised by the Innovation Union Scoreboard and
in further detail at a regional level by the Regional Innovation Scoreboard 2012 allows a
distinction to be made between countries and regions in four categories - lsquoleadersrsquo lsquofollowersrsquo
those with a moderate lsquoperformancersquo and those lsquocatching-uprsquo The respective positions of the
eight cases have been set out in section 1
The approach suggested at the seminar was essentially to explore the hypothesis that the
overall lsquoinnovationrsquo position of regionscountries determines the types of instrument
used their targeting and ultimately their relative performance It may be that the
categorisation help us explain the differences in the objectives set the instruments that are
appropriate and their targeting and that this in turn also influences the performance that can
be expected Regionscountries for instance that are in the lsquoless developedrsquo categories may
have to strengthen their basic support infrastructure and service provision and the
performance of the enterprise base and that of other important players such as knowledge
institutions public authorities etc The regionscountries in the more lsquoadvancedrsquo positions on
the other hand have to build on their strengths in order to maintain or enhance their position
by promoting more productive research and strengthening the links between the science base
and enterprises
21
This possible framework provides an interesting line of enquiry to be followed up in further
stages of the evaluation It does however also address other issues raised in the seminar
such as whether support should be directed to high-tech enterprises or as was argued in
relation to a number of the countries present the gains to be had from the improvement of
the performance of mid and low-tech firms are more relevant in certain stages of
development
22
3 NEXT STEP THEORY-BASED IMPACT EVALUATIONS
As the implementation of the evaluation study proceeds and the case studies (Task 3) are
being drafted the Team is in the course of identifying three policy instruments to be assessed
by as many theory-based impact evaluations as foreseen in Task 4 The three instruments
should be selected out of the long list of seven instruments suggested in the First Intermediate
Report and in consultation with the European Commission
The Team puts forward hereby a possible list of three policy instruments The main criteria
considered for their selection are
i The degree of representativeness of the typologies of policy instruments used in the 50
OPs as outlined in the First Intermediate Report the most significant categories of
policy instruments in terms of public expenditure are
Business creation and development ie instruments designed to stimulate
investments in the business sector without a predominant emphasis on RampD
and innovation
Support for RampD projects
Support for the development of technological and non-technological innovation
without any research and experimental development activities
ii The feasibility of a theory-based impact evaluation based on a survey of beneficiaries
which implies the availability of a sufficiently large number of beneficiaries and the
possibility to easily get their email contacts also with the help of the Managing
Authority or the implementing body the best option is to have at least some hundreds
beneficiary SMEs for each instrument
iii The importance of the policy instrument within the policy mix of the OP which ensures
the availability of a good amount of information resulting from the case study
regarding in particular its logic of intervention information about beneficiaries and
effectiveness
iv Preference is assigned to instruments on which no other surveys to beneficiaries have
been conducted so far in order not to put excessive burden on the same SMEs which
could undermine their willingness to contribute to our study
Based on these considerations the three policy instruments we propose for a theory-based
impact evaluation are presented in the table below It can be noticed that the list also ensures
geographical balance between Convergence and Competitiveness and Employment region as
well as Old and New Member States and regional and national OPs For the sake of
completeness and comparability for all the seven candidate instruments the pros and cons for
selecting each of them are detailed
23
Table 4 Comparison of the policy instruments and reasons for selection
Proposed for
selection
Type of policy
instrument
Selected policy
instrument
Operational Programme and
type of regioncountry
Descriptive information Specific reason for selection
for a TBIE Possible reasons for
rejection
YES Business creation and development
ldquoAid to investment projects by micro and small enterprisesrdquo
Regional OP Apulia (Italy) - Convergence region
- Old Member State
The instrument supports the purchase of machineries computer systems buildings construction works for enterprises in order to encourage the development of micro and small companies It benefitted more than 3 thousand SMEs For around 30 of beneficiaries grants have been combined with credit guarantees
- Very common type of SME support on which vast literature has been produced
- Very large number of beneficiary SMEs
- The strong relationship already established with local stakeholders and many SMEs would allow to easily and quickly test the surveyrsquos questionnaires before the launch of the three TBIEs
- For some SMEs opportunity to analyse the complimentary efforts of two forms of support (grants and a combination of grants and guarantees) and their respective effectiveness
- None
YES Support for RampD projects
ldquoGrants for Industrial Research and Experimental Developmentrdquo
Regional OP Castilla y Leon (Spain) - Competitiveness and Employment region
- Old Member State
The instrument encourages the development of RampD projects with the purpose of increasing the basis of number of innovative enterprises investment and personnel in RampD In total 759 projects of SMEs have been supported through grants 204 SMEs have conducted their project in collaboration with research organisations
- In analysing the achievement of beneficiary SMEs as well as the behavioural change opportunity to distinguish between SMEs which have realized their projects independently rather than in collaboration with a research centre
- According to the country expert among all the policy instruments of this OP this is the one for which it would be easier to get the contact details of beneficiary SMEs
- Possibility to get active collaboration by the regional authority ADE eg sending out an introductory letter to all
- None
24
Proposed for
selection
Type of policy
instrument
Selected policy
instrument
Operational Programme and
type of regioncountry
Descriptive information Specific reason for selection
for a TBIE Possible reasons for
rejection
SMEs mentioning that they will receive an invitation to a survey and inviting them to reply
YES Support for the development of technological and non-technological innovation
ldquoFinancing of individual projects for SMEsrdquo
National OP Poland Innovative Economy - Convergence country
- New Member State
The instrument provides grants to support the technological innovation of SMEs In particular it aims to stimulate the adoption of more risky and innovative solutions The instrument performed far better than expected 698 projects have been realised up to 2013 by approximately as many SMEs The instrument is delivered by a financial intermediary
- This instrument belongs to the OP which has provided the largest financial contribution to SMEs within the full sample of 50 OPs furthermore this is one of the core instrument of the programme as also reflected in the volume of public contribution which is among the highest of the OP (more than EUR 300 million fully targeted to SMEs)
- Opportunity to examine the role played by the intermediary according to the perceptions and opinions of beneficiary SMEs
- None
NO Support for RampD projects
ldquoRampD project grants for individual enterprisesrdquo
Germany regional OP Saxony - Convergence region
- Old Member State
The instrument provides grants to individual enterprises for supporting the implementation of RampD projects
- Evidence of achievement is already available since the instrument was subject of another evaluation study and enterprise survey a few years ago The TBIE would allow to better qualify the instrumentsrsquo achievements and the causal chain leading to the certain effects
- According to the country experts beneficiary SMEs may be reluctant to participate to another survey
- Less than 200 beneficiary SMEs a lower number as compared with other candidate policy instruments
- It is still uncertain whether it will be possible to get the email addresses of beneficiary SMEs
25
Proposed for
selection
Type of policy
instrument
Selected policy
instrument
Operational Programme and
type of regioncountry
Descriptive information Specific reason for selection
for a TBIE Possible reasons for
rejection
NO Support for the development of technological and non-technological innovation
ldquoSupport for technological upgrade - LEADER LTrdquo
Lithuania - Economic Growth - Convergence country
- New Member State
The instrument supports the increase of productivity in enterprises by supporting production technology upgrading The investment into the acquisition or upgrade of technologies and related internal engineering infrastructures are supported
- Email contacts particularly easy to be collected
- Result indicators are available due to an effective Structural Funds monitoring system and because the instrument was already subject of a previous evaluation study
- Very low number of beneficiary SMEs (69) which would make this instrument less suitable for launching an on-line survey as compared with other candidate instruments
NO Support for the development of technological and non-technological innovation
ldquoSupport for non-technological innovation - PROCESS LTrdquo
Lithuania - Economic Growth - Convergence country
- New Member State
The instrument aims to increase productivity in enterprises by implementing modern management methods and processes except of personnel management systems The purchase of external consulting services is supported in order to upgrade enterprises management processes
- Email contacts particularly easy to be collected
- Result indicators are available due to an effective Structural Funds monitoring system and because the instrument was already subject of a previous evaluation study
- The instrument is considered highly relevant by the target beneficiaries
- Very low number of beneficiary SMEs (119)
- As compared with other categories of policy instruments support for non-technological innovation is relatively less significant and representative of the typical forms of support provided to SMEs in the EU
NO Support for networking
ldquoInteraction on Innovationrdquo later merged with ldquoCluster relationshiprdquo
Denmark Innovation and Knowledge OP - Competitiveness and Employment country
- Old Member State
The policy instrument aims at analysing opportunities for creating clusters promoting networks and the formation of clusters of SMEs in particular as well as clusters of supplier networks for SMEs These objectives are pursued by providing grants to SMEs in partnership with universities (according to the triple helix model)
- Opportunity to better analyse the effects of a policy instrument on which a vast amount of literature has been produced
- Opportunity to dig into the collaboration mechanisms between SMEs and universities
- As compared with other categories of policy instruments support for networking is relatively less significant and representative of the typical forms of support provided to SMEs in the EU
- The number and characteristics of SMEs benefitting from this instrument remain unknown even after implementing the case
26
Proposed for
selection
Type of policy
instrument
Selected policy
instrument
Operational Programme and
type of regioncountry
Descriptive information Specific reason for selection
for a TBIE Possible reasons for
rejection
study The lack of data at policy instrument level prevents from identifying the beneficiary SMEs to which launching the on-line survey
27
4 ANNEX SEMINAR PARTICIPANTS
Name Description Organisation
DG REGIO Evaluation Unit
Rudolf Niessler Director DG REGIO B Policy
Veronica Gaffey Head of Evaluation Unit DG REGIO B2
Marielle Richeacute Evaluation Unit DG REGIO B2
Kai Stryczynski Deputy Head of Unit DG REGIO B2
Daniel Mouqueacute Evaluation Unit DG REGIO B2
CSIL Evaluation Team
Massimo Florio Evaluation team Director CSIL
Julie Pellegrin Evaluation team Project Manager CSIL
Silvia Vignetti Evaluation team CSIL
Emanuela Sirtori Evaluation team CSIL
Mike Coyne Evaluation team CSES
Malin Carlberg Evaluation team CSES
Anna-Maria Krarup Evaluation team CSES
Christian Koehler Case Study Saxony Centre for European Economic Research (ZEW)
Jaime del Castillo Case Study Castile amp Leon President INFYDE
Agnė Paliokaitė Case Study Lithuania Visionary Analytics
Elena Jarocinska Case Study Poland
Commission Officials
Katja Reppel Deputy Head of Unit Competence Centre Smart and Sustainable Growth
DG REGIO G1
Bernd Reichert Head of Unit H2020 SME EASME
Peter Wragg Head of Unit SME Access to Markets DG GROW F2
Jean David Malo Head of Unit SMEs Financial Instruments amp State Aid DG RTD B3
28
Istvan Nemeth Policy Officer - Enterprise Europe Network DG GROW F2
External Experts
Harvey Armstrong Professor Emeritus in the Department of Geography University of Sheffield
Robert Picciotto Visiting Professor Kings College London
Mark Sanders Professor University of Utrecht
Jiri Blazek Associate Professor Charles University Prague
Stakeholders ndash Case Studies
Adriana Agrimi Manager of RampI Policy Instrument Apulia Managing Authority
Kasper Westh Senior official Growth Forum Secretariat South Denmark
Simona Daukilaite
Deputy Head of the Economic Growth Operational Programme
Economic Growth OP Lithuania Managing Authority
Beatriz Casado Saenz Vice-General Director ADE (Development Agency Castile amp Leon)
Tomasz Kula Analysis and Evaluation Team Competitiveness and Innovation Department
Ministry of Infrastructure and Development (PL)
Representatives of other Work Packages
Terry Ward WP 1 Applica
Andreas Resch WP 3 Metis-Vienna
Anda Berenyi WP 4 KPMG
LEGAL NOTICE
This document has been prepared for the European Commission however it reflects the views only of the authors and the Commission cannot be held responsible for any use which may be made of the information
contained therein
More information on the European Union is available on the Internet (httpwwweuropaeu)
Luxembourg Publications Office of the European Union 2014
ISBN [number]
doi[number]
copy European Union 2015
Reproduction is authorised provided the source is acknowledged
Printed in [Country]
PRINTED ON ELEMENTAL CHLORINE-FREE BLEACHED PAPER (ECF)
PRINTED ON TOTALLY CHLORINE-FREE BLEACHED PAPER (TCF) PRINTED ON RECYCLED PAPER
PRINTED ON PROCESS CHLORINE-FREE RECYCLED PAPER (PCF)
Europe Direct is a service to help you find answers to your questions about the European Union
Freephone number ()
00 800 6 7 8 9 10 11
() The information given is free as are most calls (though some operators phone boxes or hotels may charge you)
19
It is also interesting that analysis of a wider group of 50 OPs shows that manufacturing firms
received 33 of support ndash much greater than their share in the economy as a whole It also
showed that more than 50 of support has been directed to low-tech firms
Different forms of business support were available across the OPs including access to public
and private sources of information and advice incubator services and assistance for exporters
Castile amp Leon targeted the improvement of management capacities and this approach was
implicit in a number of other OPs
Approaches to support for innovation also took different forms Overall in the broader range
of OPs examined 24 of support was for RampD and a similar amount for business development
and direct support for RampD in collaborative and non-collaborative projects was a significant
feature of the OPs for Apulia Castile amp Leon Icircle-de-France Lithuania Poland and Saxony but
not in the Czech Republic and Denmark where FP7 was thought to be the appropriate vehicle
In Saxony strengthening the research base of enterprises in the local economy and promoting
the exploitation of knowledge was central to the OP so that the majority of the funds were
provided for investment in fixed capital and in supporting RampD This implied a certain targeting
within the SME population In Icircle-de-France the bulk of the support also went to research
projects and support for technology transfer and incubators though there was also support for
SME creation in distressed areas for access to finance and for social innovation projects In
Denmark the focus was more on promoting clusters and encouraging links between enterprises
and science institutions
In some cases however the picture was more mixed In Lithuania where 38 of funding went
to access to finance measures a further 30 to up-grading technology and processes but
there was also direct support for RampD and RampD infrastructure and support for networking and
clusters promoting innovation Similarly in Apulia there was support for research by SMEs
and measures to promote consulting services for technical innovation regional innovation
partnerships and aid for access to ICT alongside aid to investment in micro and small firms
and credit guarantees and support for tourism
Knowledge transfer also featured in many of the OPs Building relationships between
knowledge institutions and enterprises was an important objective for Denmark as part of
developing regional innovation capacities though the results were mixed at least in part
because of an unresponsive culture in certain universities In other cases these relationships
were promoted by collaborative research projects (Icircle-de-France Saxony) and in the case of
Lithuania by the use of vouchers Overall however it is perhaps surprising that building
relationships between knowledge institutions and enterprises did not have a higher profile
The development of clusters was an instrument used in the Czech Republic Lithuania and
Denmark where in some regions it absorbed a large proportion of the available funds and
where the focus was on emerging sectors such as clean technology energy health and welfare
and the experience economy Cluster support in this case consisted of a relatively complex set
of services provided for cluster members In the Czech Republic and Lithuania cluster
development was itself less developed and related to low-tech sectors with potential for
innovation and growth
Underlying these differences between Programmes there were variations in the approach to
governance This has become an important issue for all of the regions and countries
considered In part this is linked to the aspiration at least to establish transparent evidence-
based policy processes which has brought in the development of monitoring and evaluation
systems but there are more central elements of governance to do with who is involved in
decision-making and how decisions are taken that are also part of the picture The
development of stakeholder involvement in strategy formation in the setting of priorities and
even in elements of implementation was apparent in many of the cases throughout the
20
programming period In Denmark the whole (national and EU) strategy was based from the
beginning on a national consensus established through political and open public debates and
implemented through regional bodies with a strong stakeholder representation In Apulia a
self-evaluation exercise led to new departures in response to the crisis
There were however other issues of governance alluded to in the seminar relating to but the
alignment of the OP with national strategies and the organisational mechanisms adopted to
implement the strategy chosen by each OP These can have considerable influence on the
degree to which the Managing Authority can directly influence the implementation
mechanisms
Finally account must be taken of the differential impacts of the recession In Apulia and
Castile amp Leon there was formal reprogramming largely as a result of the recession and
changes in the instrument set utilised To a certain extent this meant a scaling down of
ambitions when for many enterprises it was a matter of survival rather than developing new
ventures Even here though the story does not always move in the same direction In the case
of Apulia for instance while it was necessary in part to refocus support on the broad range of
enterprises suffering from the recession at the same time the crisis acted as a stimulus to new
thinking after the conduct of a self-evaluation exercise
242 A common framework
Overall it can be seen that within the diversity shown by the eight cases there are at least a
number of common themes which are belong addressed in different ways The question does
arise however of whether it might be possible to go further to offer an explanation of the
diversity
External experts at the seminar advised that a theoretical framework should be sought to
make greater sense of the quantitative material and provide the basis for a more deliberative
judgement on the effectiveness of policy and how support funds can be best spent
One possibility is to take the differing circumstances of the OPs as themselves being an
explanatory factor and in a further step see the differences in the nature of the instruments
deployed as being part of an evolutionary process This approach also has the merit of linking
a debate on instruments with broader considerations in the promotion of innovation and
competitiveness at a European level
The reference in section 1 above to the position of the countries covered by the case studies
and their innovation performance as characterised by the Innovation Union Scoreboard and
in further detail at a regional level by the Regional Innovation Scoreboard 2012 allows a
distinction to be made between countries and regions in four categories - lsquoleadersrsquo lsquofollowersrsquo
those with a moderate lsquoperformancersquo and those lsquocatching-uprsquo The respective positions of the
eight cases have been set out in section 1
The approach suggested at the seminar was essentially to explore the hypothesis that the
overall lsquoinnovationrsquo position of regionscountries determines the types of instrument
used their targeting and ultimately their relative performance It may be that the
categorisation help us explain the differences in the objectives set the instruments that are
appropriate and their targeting and that this in turn also influences the performance that can
be expected Regionscountries for instance that are in the lsquoless developedrsquo categories may
have to strengthen their basic support infrastructure and service provision and the
performance of the enterprise base and that of other important players such as knowledge
institutions public authorities etc The regionscountries in the more lsquoadvancedrsquo positions on
the other hand have to build on their strengths in order to maintain or enhance their position
by promoting more productive research and strengthening the links between the science base
and enterprises
21
This possible framework provides an interesting line of enquiry to be followed up in further
stages of the evaluation It does however also address other issues raised in the seminar
such as whether support should be directed to high-tech enterprises or as was argued in
relation to a number of the countries present the gains to be had from the improvement of
the performance of mid and low-tech firms are more relevant in certain stages of
development
22
3 NEXT STEP THEORY-BASED IMPACT EVALUATIONS
As the implementation of the evaluation study proceeds and the case studies (Task 3) are
being drafted the Team is in the course of identifying three policy instruments to be assessed
by as many theory-based impact evaluations as foreseen in Task 4 The three instruments
should be selected out of the long list of seven instruments suggested in the First Intermediate
Report and in consultation with the European Commission
The Team puts forward hereby a possible list of three policy instruments The main criteria
considered for their selection are
i The degree of representativeness of the typologies of policy instruments used in the 50
OPs as outlined in the First Intermediate Report the most significant categories of
policy instruments in terms of public expenditure are
Business creation and development ie instruments designed to stimulate
investments in the business sector without a predominant emphasis on RampD
and innovation
Support for RampD projects
Support for the development of technological and non-technological innovation
without any research and experimental development activities
ii The feasibility of a theory-based impact evaluation based on a survey of beneficiaries
which implies the availability of a sufficiently large number of beneficiaries and the
possibility to easily get their email contacts also with the help of the Managing
Authority or the implementing body the best option is to have at least some hundreds
beneficiary SMEs for each instrument
iii The importance of the policy instrument within the policy mix of the OP which ensures
the availability of a good amount of information resulting from the case study
regarding in particular its logic of intervention information about beneficiaries and
effectiveness
iv Preference is assigned to instruments on which no other surveys to beneficiaries have
been conducted so far in order not to put excessive burden on the same SMEs which
could undermine their willingness to contribute to our study
Based on these considerations the three policy instruments we propose for a theory-based
impact evaluation are presented in the table below It can be noticed that the list also ensures
geographical balance between Convergence and Competitiveness and Employment region as
well as Old and New Member States and regional and national OPs For the sake of
completeness and comparability for all the seven candidate instruments the pros and cons for
selecting each of them are detailed
23
Table 4 Comparison of the policy instruments and reasons for selection
Proposed for
selection
Type of policy
instrument
Selected policy
instrument
Operational Programme and
type of regioncountry
Descriptive information Specific reason for selection
for a TBIE Possible reasons for
rejection
YES Business creation and development
ldquoAid to investment projects by micro and small enterprisesrdquo
Regional OP Apulia (Italy) - Convergence region
- Old Member State
The instrument supports the purchase of machineries computer systems buildings construction works for enterprises in order to encourage the development of micro and small companies It benefitted more than 3 thousand SMEs For around 30 of beneficiaries grants have been combined with credit guarantees
- Very common type of SME support on which vast literature has been produced
- Very large number of beneficiary SMEs
- The strong relationship already established with local stakeholders and many SMEs would allow to easily and quickly test the surveyrsquos questionnaires before the launch of the three TBIEs
- For some SMEs opportunity to analyse the complimentary efforts of two forms of support (grants and a combination of grants and guarantees) and their respective effectiveness
- None
YES Support for RampD projects
ldquoGrants for Industrial Research and Experimental Developmentrdquo
Regional OP Castilla y Leon (Spain) - Competitiveness and Employment region
- Old Member State
The instrument encourages the development of RampD projects with the purpose of increasing the basis of number of innovative enterprises investment and personnel in RampD In total 759 projects of SMEs have been supported through grants 204 SMEs have conducted their project in collaboration with research organisations
- In analysing the achievement of beneficiary SMEs as well as the behavioural change opportunity to distinguish between SMEs which have realized their projects independently rather than in collaboration with a research centre
- According to the country expert among all the policy instruments of this OP this is the one for which it would be easier to get the contact details of beneficiary SMEs
- Possibility to get active collaboration by the regional authority ADE eg sending out an introductory letter to all
- None
24
Proposed for
selection
Type of policy
instrument
Selected policy
instrument
Operational Programme and
type of regioncountry
Descriptive information Specific reason for selection
for a TBIE Possible reasons for
rejection
SMEs mentioning that they will receive an invitation to a survey and inviting them to reply
YES Support for the development of technological and non-technological innovation
ldquoFinancing of individual projects for SMEsrdquo
National OP Poland Innovative Economy - Convergence country
- New Member State
The instrument provides grants to support the technological innovation of SMEs In particular it aims to stimulate the adoption of more risky and innovative solutions The instrument performed far better than expected 698 projects have been realised up to 2013 by approximately as many SMEs The instrument is delivered by a financial intermediary
- This instrument belongs to the OP which has provided the largest financial contribution to SMEs within the full sample of 50 OPs furthermore this is one of the core instrument of the programme as also reflected in the volume of public contribution which is among the highest of the OP (more than EUR 300 million fully targeted to SMEs)
- Opportunity to examine the role played by the intermediary according to the perceptions and opinions of beneficiary SMEs
- None
NO Support for RampD projects
ldquoRampD project grants for individual enterprisesrdquo
Germany regional OP Saxony - Convergence region
- Old Member State
The instrument provides grants to individual enterprises for supporting the implementation of RampD projects
- Evidence of achievement is already available since the instrument was subject of another evaluation study and enterprise survey a few years ago The TBIE would allow to better qualify the instrumentsrsquo achievements and the causal chain leading to the certain effects
- According to the country experts beneficiary SMEs may be reluctant to participate to another survey
- Less than 200 beneficiary SMEs a lower number as compared with other candidate policy instruments
- It is still uncertain whether it will be possible to get the email addresses of beneficiary SMEs
25
Proposed for
selection
Type of policy
instrument
Selected policy
instrument
Operational Programme and
type of regioncountry
Descriptive information Specific reason for selection
for a TBIE Possible reasons for
rejection
NO Support for the development of technological and non-technological innovation
ldquoSupport for technological upgrade - LEADER LTrdquo
Lithuania - Economic Growth - Convergence country
- New Member State
The instrument supports the increase of productivity in enterprises by supporting production technology upgrading The investment into the acquisition or upgrade of technologies and related internal engineering infrastructures are supported
- Email contacts particularly easy to be collected
- Result indicators are available due to an effective Structural Funds monitoring system and because the instrument was already subject of a previous evaluation study
- Very low number of beneficiary SMEs (69) which would make this instrument less suitable for launching an on-line survey as compared with other candidate instruments
NO Support for the development of technological and non-technological innovation
ldquoSupport for non-technological innovation - PROCESS LTrdquo
Lithuania - Economic Growth - Convergence country
- New Member State
The instrument aims to increase productivity in enterprises by implementing modern management methods and processes except of personnel management systems The purchase of external consulting services is supported in order to upgrade enterprises management processes
- Email contacts particularly easy to be collected
- Result indicators are available due to an effective Structural Funds monitoring system and because the instrument was already subject of a previous evaluation study
- The instrument is considered highly relevant by the target beneficiaries
- Very low number of beneficiary SMEs (119)
- As compared with other categories of policy instruments support for non-technological innovation is relatively less significant and representative of the typical forms of support provided to SMEs in the EU
NO Support for networking
ldquoInteraction on Innovationrdquo later merged with ldquoCluster relationshiprdquo
Denmark Innovation and Knowledge OP - Competitiveness and Employment country
- Old Member State
The policy instrument aims at analysing opportunities for creating clusters promoting networks and the formation of clusters of SMEs in particular as well as clusters of supplier networks for SMEs These objectives are pursued by providing grants to SMEs in partnership with universities (according to the triple helix model)
- Opportunity to better analyse the effects of a policy instrument on which a vast amount of literature has been produced
- Opportunity to dig into the collaboration mechanisms between SMEs and universities
- As compared with other categories of policy instruments support for networking is relatively less significant and representative of the typical forms of support provided to SMEs in the EU
- The number and characteristics of SMEs benefitting from this instrument remain unknown even after implementing the case
26
Proposed for
selection
Type of policy
instrument
Selected policy
instrument
Operational Programme and
type of regioncountry
Descriptive information Specific reason for selection
for a TBIE Possible reasons for
rejection
study The lack of data at policy instrument level prevents from identifying the beneficiary SMEs to which launching the on-line survey
27
4 ANNEX SEMINAR PARTICIPANTS
Name Description Organisation
DG REGIO Evaluation Unit
Rudolf Niessler Director DG REGIO B Policy
Veronica Gaffey Head of Evaluation Unit DG REGIO B2
Marielle Richeacute Evaluation Unit DG REGIO B2
Kai Stryczynski Deputy Head of Unit DG REGIO B2
Daniel Mouqueacute Evaluation Unit DG REGIO B2
CSIL Evaluation Team
Massimo Florio Evaluation team Director CSIL
Julie Pellegrin Evaluation team Project Manager CSIL
Silvia Vignetti Evaluation team CSIL
Emanuela Sirtori Evaluation team CSIL
Mike Coyne Evaluation team CSES
Malin Carlberg Evaluation team CSES
Anna-Maria Krarup Evaluation team CSES
Christian Koehler Case Study Saxony Centre for European Economic Research (ZEW)
Jaime del Castillo Case Study Castile amp Leon President INFYDE
Agnė Paliokaitė Case Study Lithuania Visionary Analytics
Elena Jarocinska Case Study Poland
Commission Officials
Katja Reppel Deputy Head of Unit Competence Centre Smart and Sustainable Growth
DG REGIO G1
Bernd Reichert Head of Unit H2020 SME EASME
Peter Wragg Head of Unit SME Access to Markets DG GROW F2
Jean David Malo Head of Unit SMEs Financial Instruments amp State Aid DG RTD B3
28
Istvan Nemeth Policy Officer - Enterprise Europe Network DG GROW F2
External Experts
Harvey Armstrong Professor Emeritus in the Department of Geography University of Sheffield
Robert Picciotto Visiting Professor Kings College London
Mark Sanders Professor University of Utrecht
Jiri Blazek Associate Professor Charles University Prague
Stakeholders ndash Case Studies
Adriana Agrimi Manager of RampI Policy Instrument Apulia Managing Authority
Kasper Westh Senior official Growth Forum Secretariat South Denmark
Simona Daukilaite
Deputy Head of the Economic Growth Operational Programme
Economic Growth OP Lithuania Managing Authority
Beatriz Casado Saenz Vice-General Director ADE (Development Agency Castile amp Leon)
Tomasz Kula Analysis and Evaluation Team Competitiveness and Innovation Department
Ministry of Infrastructure and Development (PL)
Representatives of other Work Packages
Terry Ward WP 1 Applica
Andreas Resch WP 3 Metis-Vienna
Anda Berenyi WP 4 KPMG
LEGAL NOTICE
This document has been prepared for the European Commission however it reflects the views only of the authors and the Commission cannot be held responsible for any use which may be made of the information
contained therein
More information on the European Union is available on the Internet (httpwwweuropaeu)
Luxembourg Publications Office of the European Union 2014
ISBN [number]
doi[number]
copy European Union 2015
Reproduction is authorised provided the source is acknowledged
Printed in [Country]
PRINTED ON ELEMENTAL CHLORINE-FREE BLEACHED PAPER (ECF)
PRINTED ON TOTALLY CHLORINE-FREE BLEACHED PAPER (TCF) PRINTED ON RECYCLED PAPER
PRINTED ON PROCESS CHLORINE-FREE RECYCLED PAPER (PCF)
Europe Direct is a service to help you find answers to your questions about the European Union
Freephone number ()
00 800 6 7 8 9 10 11
() The information given is free as are most calls (though some operators phone boxes or hotels may charge you)
20
programming period In Denmark the whole (national and EU) strategy was based from the
beginning on a national consensus established through political and open public debates and
implemented through regional bodies with a strong stakeholder representation In Apulia a
self-evaluation exercise led to new departures in response to the crisis
There were however other issues of governance alluded to in the seminar relating to but the
alignment of the OP with national strategies and the organisational mechanisms adopted to
implement the strategy chosen by each OP These can have considerable influence on the
degree to which the Managing Authority can directly influence the implementation
mechanisms
Finally account must be taken of the differential impacts of the recession In Apulia and
Castile amp Leon there was formal reprogramming largely as a result of the recession and
changes in the instrument set utilised To a certain extent this meant a scaling down of
ambitions when for many enterprises it was a matter of survival rather than developing new
ventures Even here though the story does not always move in the same direction In the case
of Apulia for instance while it was necessary in part to refocus support on the broad range of
enterprises suffering from the recession at the same time the crisis acted as a stimulus to new
thinking after the conduct of a self-evaluation exercise
242 A common framework
Overall it can be seen that within the diversity shown by the eight cases there are at least a
number of common themes which are belong addressed in different ways The question does
arise however of whether it might be possible to go further to offer an explanation of the
diversity
External experts at the seminar advised that a theoretical framework should be sought to
make greater sense of the quantitative material and provide the basis for a more deliberative
judgement on the effectiveness of policy and how support funds can be best spent
One possibility is to take the differing circumstances of the OPs as themselves being an
explanatory factor and in a further step see the differences in the nature of the instruments
deployed as being part of an evolutionary process This approach also has the merit of linking
a debate on instruments with broader considerations in the promotion of innovation and
competitiveness at a European level
The reference in section 1 above to the position of the countries covered by the case studies
and their innovation performance as characterised by the Innovation Union Scoreboard and
in further detail at a regional level by the Regional Innovation Scoreboard 2012 allows a
distinction to be made between countries and regions in four categories - lsquoleadersrsquo lsquofollowersrsquo
those with a moderate lsquoperformancersquo and those lsquocatching-uprsquo The respective positions of the
eight cases have been set out in section 1
The approach suggested at the seminar was essentially to explore the hypothesis that the
overall lsquoinnovationrsquo position of regionscountries determines the types of instrument
used their targeting and ultimately their relative performance It may be that the
categorisation help us explain the differences in the objectives set the instruments that are
appropriate and their targeting and that this in turn also influences the performance that can
be expected Regionscountries for instance that are in the lsquoless developedrsquo categories may
have to strengthen their basic support infrastructure and service provision and the
performance of the enterprise base and that of other important players such as knowledge
institutions public authorities etc The regionscountries in the more lsquoadvancedrsquo positions on
the other hand have to build on their strengths in order to maintain or enhance their position
by promoting more productive research and strengthening the links between the science base
and enterprises
21
This possible framework provides an interesting line of enquiry to be followed up in further
stages of the evaluation It does however also address other issues raised in the seminar
such as whether support should be directed to high-tech enterprises or as was argued in
relation to a number of the countries present the gains to be had from the improvement of
the performance of mid and low-tech firms are more relevant in certain stages of
development
22
3 NEXT STEP THEORY-BASED IMPACT EVALUATIONS
As the implementation of the evaluation study proceeds and the case studies (Task 3) are
being drafted the Team is in the course of identifying three policy instruments to be assessed
by as many theory-based impact evaluations as foreseen in Task 4 The three instruments
should be selected out of the long list of seven instruments suggested in the First Intermediate
Report and in consultation with the European Commission
The Team puts forward hereby a possible list of three policy instruments The main criteria
considered for their selection are
i The degree of representativeness of the typologies of policy instruments used in the 50
OPs as outlined in the First Intermediate Report the most significant categories of
policy instruments in terms of public expenditure are
Business creation and development ie instruments designed to stimulate
investments in the business sector without a predominant emphasis on RampD
and innovation
Support for RampD projects
Support for the development of technological and non-technological innovation
without any research and experimental development activities
ii The feasibility of a theory-based impact evaluation based on a survey of beneficiaries
which implies the availability of a sufficiently large number of beneficiaries and the
possibility to easily get their email contacts also with the help of the Managing
Authority or the implementing body the best option is to have at least some hundreds
beneficiary SMEs for each instrument
iii The importance of the policy instrument within the policy mix of the OP which ensures
the availability of a good amount of information resulting from the case study
regarding in particular its logic of intervention information about beneficiaries and
effectiveness
iv Preference is assigned to instruments on which no other surveys to beneficiaries have
been conducted so far in order not to put excessive burden on the same SMEs which
could undermine their willingness to contribute to our study
Based on these considerations the three policy instruments we propose for a theory-based
impact evaluation are presented in the table below It can be noticed that the list also ensures
geographical balance between Convergence and Competitiveness and Employment region as
well as Old and New Member States and regional and national OPs For the sake of
completeness and comparability for all the seven candidate instruments the pros and cons for
selecting each of them are detailed
23
Table 4 Comparison of the policy instruments and reasons for selection
Proposed for
selection
Type of policy
instrument
Selected policy
instrument
Operational Programme and
type of regioncountry
Descriptive information Specific reason for selection
for a TBIE Possible reasons for
rejection
YES Business creation and development
ldquoAid to investment projects by micro and small enterprisesrdquo
Regional OP Apulia (Italy) - Convergence region
- Old Member State
The instrument supports the purchase of machineries computer systems buildings construction works for enterprises in order to encourage the development of micro and small companies It benefitted more than 3 thousand SMEs For around 30 of beneficiaries grants have been combined with credit guarantees
- Very common type of SME support on which vast literature has been produced
- Very large number of beneficiary SMEs
- The strong relationship already established with local stakeholders and many SMEs would allow to easily and quickly test the surveyrsquos questionnaires before the launch of the three TBIEs
- For some SMEs opportunity to analyse the complimentary efforts of two forms of support (grants and a combination of grants and guarantees) and their respective effectiveness
- None
YES Support for RampD projects
ldquoGrants for Industrial Research and Experimental Developmentrdquo
Regional OP Castilla y Leon (Spain) - Competitiveness and Employment region
- Old Member State
The instrument encourages the development of RampD projects with the purpose of increasing the basis of number of innovative enterprises investment and personnel in RampD In total 759 projects of SMEs have been supported through grants 204 SMEs have conducted their project in collaboration with research organisations
- In analysing the achievement of beneficiary SMEs as well as the behavioural change opportunity to distinguish between SMEs which have realized their projects independently rather than in collaboration with a research centre
- According to the country expert among all the policy instruments of this OP this is the one for which it would be easier to get the contact details of beneficiary SMEs
- Possibility to get active collaboration by the regional authority ADE eg sending out an introductory letter to all
- None
24
Proposed for
selection
Type of policy
instrument
Selected policy
instrument
Operational Programme and
type of regioncountry
Descriptive information Specific reason for selection
for a TBIE Possible reasons for
rejection
SMEs mentioning that they will receive an invitation to a survey and inviting them to reply
YES Support for the development of technological and non-technological innovation
ldquoFinancing of individual projects for SMEsrdquo
National OP Poland Innovative Economy - Convergence country
- New Member State
The instrument provides grants to support the technological innovation of SMEs In particular it aims to stimulate the adoption of more risky and innovative solutions The instrument performed far better than expected 698 projects have been realised up to 2013 by approximately as many SMEs The instrument is delivered by a financial intermediary
- This instrument belongs to the OP which has provided the largest financial contribution to SMEs within the full sample of 50 OPs furthermore this is one of the core instrument of the programme as also reflected in the volume of public contribution which is among the highest of the OP (more than EUR 300 million fully targeted to SMEs)
- Opportunity to examine the role played by the intermediary according to the perceptions and opinions of beneficiary SMEs
- None
NO Support for RampD projects
ldquoRampD project grants for individual enterprisesrdquo
Germany regional OP Saxony - Convergence region
- Old Member State
The instrument provides grants to individual enterprises for supporting the implementation of RampD projects
- Evidence of achievement is already available since the instrument was subject of another evaluation study and enterprise survey a few years ago The TBIE would allow to better qualify the instrumentsrsquo achievements and the causal chain leading to the certain effects
- According to the country experts beneficiary SMEs may be reluctant to participate to another survey
- Less than 200 beneficiary SMEs a lower number as compared with other candidate policy instruments
- It is still uncertain whether it will be possible to get the email addresses of beneficiary SMEs
25
Proposed for
selection
Type of policy
instrument
Selected policy
instrument
Operational Programme and
type of regioncountry
Descriptive information Specific reason for selection
for a TBIE Possible reasons for
rejection
NO Support for the development of technological and non-technological innovation
ldquoSupport for technological upgrade - LEADER LTrdquo
Lithuania - Economic Growth - Convergence country
- New Member State
The instrument supports the increase of productivity in enterprises by supporting production technology upgrading The investment into the acquisition or upgrade of technologies and related internal engineering infrastructures are supported
- Email contacts particularly easy to be collected
- Result indicators are available due to an effective Structural Funds monitoring system and because the instrument was already subject of a previous evaluation study
- Very low number of beneficiary SMEs (69) which would make this instrument less suitable for launching an on-line survey as compared with other candidate instruments
NO Support for the development of technological and non-technological innovation
ldquoSupport for non-technological innovation - PROCESS LTrdquo
Lithuania - Economic Growth - Convergence country
- New Member State
The instrument aims to increase productivity in enterprises by implementing modern management methods and processes except of personnel management systems The purchase of external consulting services is supported in order to upgrade enterprises management processes
- Email contacts particularly easy to be collected
- Result indicators are available due to an effective Structural Funds monitoring system and because the instrument was already subject of a previous evaluation study
- The instrument is considered highly relevant by the target beneficiaries
- Very low number of beneficiary SMEs (119)
- As compared with other categories of policy instruments support for non-technological innovation is relatively less significant and representative of the typical forms of support provided to SMEs in the EU
NO Support for networking
ldquoInteraction on Innovationrdquo later merged with ldquoCluster relationshiprdquo
Denmark Innovation and Knowledge OP - Competitiveness and Employment country
- Old Member State
The policy instrument aims at analysing opportunities for creating clusters promoting networks and the formation of clusters of SMEs in particular as well as clusters of supplier networks for SMEs These objectives are pursued by providing grants to SMEs in partnership with universities (according to the triple helix model)
- Opportunity to better analyse the effects of a policy instrument on which a vast amount of literature has been produced
- Opportunity to dig into the collaboration mechanisms between SMEs and universities
- As compared with other categories of policy instruments support for networking is relatively less significant and representative of the typical forms of support provided to SMEs in the EU
- The number and characteristics of SMEs benefitting from this instrument remain unknown even after implementing the case
26
Proposed for
selection
Type of policy
instrument
Selected policy
instrument
Operational Programme and
type of regioncountry
Descriptive information Specific reason for selection
for a TBIE Possible reasons for
rejection
study The lack of data at policy instrument level prevents from identifying the beneficiary SMEs to which launching the on-line survey
27
4 ANNEX SEMINAR PARTICIPANTS
Name Description Organisation
DG REGIO Evaluation Unit
Rudolf Niessler Director DG REGIO B Policy
Veronica Gaffey Head of Evaluation Unit DG REGIO B2
Marielle Richeacute Evaluation Unit DG REGIO B2
Kai Stryczynski Deputy Head of Unit DG REGIO B2
Daniel Mouqueacute Evaluation Unit DG REGIO B2
CSIL Evaluation Team
Massimo Florio Evaluation team Director CSIL
Julie Pellegrin Evaluation team Project Manager CSIL
Silvia Vignetti Evaluation team CSIL
Emanuela Sirtori Evaluation team CSIL
Mike Coyne Evaluation team CSES
Malin Carlberg Evaluation team CSES
Anna-Maria Krarup Evaluation team CSES
Christian Koehler Case Study Saxony Centre for European Economic Research (ZEW)
Jaime del Castillo Case Study Castile amp Leon President INFYDE
Agnė Paliokaitė Case Study Lithuania Visionary Analytics
Elena Jarocinska Case Study Poland
Commission Officials
Katja Reppel Deputy Head of Unit Competence Centre Smart and Sustainable Growth
DG REGIO G1
Bernd Reichert Head of Unit H2020 SME EASME
Peter Wragg Head of Unit SME Access to Markets DG GROW F2
Jean David Malo Head of Unit SMEs Financial Instruments amp State Aid DG RTD B3
28
Istvan Nemeth Policy Officer - Enterprise Europe Network DG GROW F2
External Experts
Harvey Armstrong Professor Emeritus in the Department of Geography University of Sheffield
Robert Picciotto Visiting Professor Kings College London
Mark Sanders Professor University of Utrecht
Jiri Blazek Associate Professor Charles University Prague
Stakeholders ndash Case Studies
Adriana Agrimi Manager of RampI Policy Instrument Apulia Managing Authority
Kasper Westh Senior official Growth Forum Secretariat South Denmark
Simona Daukilaite
Deputy Head of the Economic Growth Operational Programme
Economic Growth OP Lithuania Managing Authority
Beatriz Casado Saenz Vice-General Director ADE (Development Agency Castile amp Leon)
Tomasz Kula Analysis and Evaluation Team Competitiveness and Innovation Department
Ministry of Infrastructure and Development (PL)
Representatives of other Work Packages
Terry Ward WP 1 Applica
Andreas Resch WP 3 Metis-Vienna
Anda Berenyi WP 4 KPMG
LEGAL NOTICE
This document has been prepared for the European Commission however it reflects the views only of the authors and the Commission cannot be held responsible for any use which may be made of the information
contained therein
More information on the European Union is available on the Internet (httpwwweuropaeu)
Luxembourg Publications Office of the European Union 2014
ISBN [number]
doi[number]
copy European Union 2015
Reproduction is authorised provided the source is acknowledged
Printed in [Country]
PRINTED ON ELEMENTAL CHLORINE-FREE BLEACHED PAPER (ECF)
PRINTED ON TOTALLY CHLORINE-FREE BLEACHED PAPER (TCF) PRINTED ON RECYCLED PAPER
PRINTED ON PROCESS CHLORINE-FREE RECYCLED PAPER (PCF)
Europe Direct is a service to help you find answers to your questions about the European Union
Freephone number ()
00 800 6 7 8 9 10 11
() The information given is free as are most calls (though some operators phone boxes or hotels may charge you)
21
This possible framework provides an interesting line of enquiry to be followed up in further
stages of the evaluation It does however also address other issues raised in the seminar
such as whether support should be directed to high-tech enterprises or as was argued in
relation to a number of the countries present the gains to be had from the improvement of
the performance of mid and low-tech firms are more relevant in certain stages of
development
22
3 NEXT STEP THEORY-BASED IMPACT EVALUATIONS
As the implementation of the evaluation study proceeds and the case studies (Task 3) are
being drafted the Team is in the course of identifying three policy instruments to be assessed
by as many theory-based impact evaluations as foreseen in Task 4 The three instruments
should be selected out of the long list of seven instruments suggested in the First Intermediate
Report and in consultation with the European Commission
The Team puts forward hereby a possible list of three policy instruments The main criteria
considered for their selection are
i The degree of representativeness of the typologies of policy instruments used in the 50
OPs as outlined in the First Intermediate Report the most significant categories of
policy instruments in terms of public expenditure are
Business creation and development ie instruments designed to stimulate
investments in the business sector without a predominant emphasis on RampD
and innovation
Support for RampD projects
Support for the development of technological and non-technological innovation
without any research and experimental development activities
ii The feasibility of a theory-based impact evaluation based on a survey of beneficiaries
which implies the availability of a sufficiently large number of beneficiaries and the
possibility to easily get their email contacts also with the help of the Managing
Authority or the implementing body the best option is to have at least some hundreds
beneficiary SMEs for each instrument
iii The importance of the policy instrument within the policy mix of the OP which ensures
the availability of a good amount of information resulting from the case study
regarding in particular its logic of intervention information about beneficiaries and
effectiveness
iv Preference is assigned to instruments on which no other surveys to beneficiaries have
been conducted so far in order not to put excessive burden on the same SMEs which
could undermine their willingness to contribute to our study
Based on these considerations the three policy instruments we propose for a theory-based
impact evaluation are presented in the table below It can be noticed that the list also ensures
geographical balance between Convergence and Competitiveness and Employment region as
well as Old and New Member States and regional and national OPs For the sake of
completeness and comparability for all the seven candidate instruments the pros and cons for
selecting each of them are detailed
23
Table 4 Comparison of the policy instruments and reasons for selection
Proposed for
selection
Type of policy
instrument
Selected policy
instrument
Operational Programme and
type of regioncountry
Descriptive information Specific reason for selection
for a TBIE Possible reasons for
rejection
YES Business creation and development
ldquoAid to investment projects by micro and small enterprisesrdquo
Regional OP Apulia (Italy) - Convergence region
- Old Member State
The instrument supports the purchase of machineries computer systems buildings construction works for enterprises in order to encourage the development of micro and small companies It benefitted more than 3 thousand SMEs For around 30 of beneficiaries grants have been combined with credit guarantees
- Very common type of SME support on which vast literature has been produced
- Very large number of beneficiary SMEs
- The strong relationship already established with local stakeholders and many SMEs would allow to easily and quickly test the surveyrsquos questionnaires before the launch of the three TBIEs
- For some SMEs opportunity to analyse the complimentary efforts of two forms of support (grants and a combination of grants and guarantees) and their respective effectiveness
- None
YES Support for RampD projects
ldquoGrants for Industrial Research and Experimental Developmentrdquo
Regional OP Castilla y Leon (Spain) - Competitiveness and Employment region
- Old Member State
The instrument encourages the development of RampD projects with the purpose of increasing the basis of number of innovative enterprises investment and personnel in RampD In total 759 projects of SMEs have been supported through grants 204 SMEs have conducted their project in collaboration with research organisations
- In analysing the achievement of beneficiary SMEs as well as the behavioural change opportunity to distinguish between SMEs which have realized their projects independently rather than in collaboration with a research centre
- According to the country expert among all the policy instruments of this OP this is the one for which it would be easier to get the contact details of beneficiary SMEs
- Possibility to get active collaboration by the regional authority ADE eg sending out an introductory letter to all
- None
24
Proposed for
selection
Type of policy
instrument
Selected policy
instrument
Operational Programme and
type of regioncountry
Descriptive information Specific reason for selection
for a TBIE Possible reasons for
rejection
SMEs mentioning that they will receive an invitation to a survey and inviting them to reply
YES Support for the development of technological and non-technological innovation
ldquoFinancing of individual projects for SMEsrdquo
National OP Poland Innovative Economy - Convergence country
- New Member State
The instrument provides grants to support the technological innovation of SMEs In particular it aims to stimulate the adoption of more risky and innovative solutions The instrument performed far better than expected 698 projects have been realised up to 2013 by approximately as many SMEs The instrument is delivered by a financial intermediary
- This instrument belongs to the OP which has provided the largest financial contribution to SMEs within the full sample of 50 OPs furthermore this is one of the core instrument of the programme as also reflected in the volume of public contribution which is among the highest of the OP (more than EUR 300 million fully targeted to SMEs)
- Opportunity to examine the role played by the intermediary according to the perceptions and opinions of beneficiary SMEs
- None
NO Support for RampD projects
ldquoRampD project grants for individual enterprisesrdquo
Germany regional OP Saxony - Convergence region
- Old Member State
The instrument provides grants to individual enterprises for supporting the implementation of RampD projects
- Evidence of achievement is already available since the instrument was subject of another evaluation study and enterprise survey a few years ago The TBIE would allow to better qualify the instrumentsrsquo achievements and the causal chain leading to the certain effects
- According to the country experts beneficiary SMEs may be reluctant to participate to another survey
- Less than 200 beneficiary SMEs a lower number as compared with other candidate policy instruments
- It is still uncertain whether it will be possible to get the email addresses of beneficiary SMEs
25
Proposed for
selection
Type of policy
instrument
Selected policy
instrument
Operational Programme and
type of regioncountry
Descriptive information Specific reason for selection
for a TBIE Possible reasons for
rejection
NO Support for the development of technological and non-technological innovation
ldquoSupport for technological upgrade - LEADER LTrdquo
Lithuania - Economic Growth - Convergence country
- New Member State
The instrument supports the increase of productivity in enterprises by supporting production technology upgrading The investment into the acquisition or upgrade of technologies and related internal engineering infrastructures are supported
- Email contacts particularly easy to be collected
- Result indicators are available due to an effective Structural Funds monitoring system and because the instrument was already subject of a previous evaluation study
- Very low number of beneficiary SMEs (69) which would make this instrument less suitable for launching an on-line survey as compared with other candidate instruments
NO Support for the development of technological and non-technological innovation
ldquoSupport for non-technological innovation - PROCESS LTrdquo
Lithuania - Economic Growth - Convergence country
- New Member State
The instrument aims to increase productivity in enterprises by implementing modern management methods and processes except of personnel management systems The purchase of external consulting services is supported in order to upgrade enterprises management processes
- Email contacts particularly easy to be collected
- Result indicators are available due to an effective Structural Funds monitoring system and because the instrument was already subject of a previous evaluation study
- The instrument is considered highly relevant by the target beneficiaries
- Very low number of beneficiary SMEs (119)
- As compared with other categories of policy instruments support for non-technological innovation is relatively less significant and representative of the typical forms of support provided to SMEs in the EU
NO Support for networking
ldquoInteraction on Innovationrdquo later merged with ldquoCluster relationshiprdquo
Denmark Innovation and Knowledge OP - Competitiveness and Employment country
- Old Member State
The policy instrument aims at analysing opportunities for creating clusters promoting networks and the formation of clusters of SMEs in particular as well as clusters of supplier networks for SMEs These objectives are pursued by providing grants to SMEs in partnership with universities (according to the triple helix model)
- Opportunity to better analyse the effects of a policy instrument on which a vast amount of literature has been produced
- Opportunity to dig into the collaboration mechanisms between SMEs and universities
- As compared with other categories of policy instruments support for networking is relatively less significant and representative of the typical forms of support provided to SMEs in the EU
- The number and characteristics of SMEs benefitting from this instrument remain unknown even after implementing the case
26
Proposed for
selection
Type of policy
instrument
Selected policy
instrument
Operational Programme and
type of regioncountry
Descriptive information Specific reason for selection
for a TBIE Possible reasons for
rejection
study The lack of data at policy instrument level prevents from identifying the beneficiary SMEs to which launching the on-line survey
27
4 ANNEX SEMINAR PARTICIPANTS
Name Description Organisation
DG REGIO Evaluation Unit
Rudolf Niessler Director DG REGIO B Policy
Veronica Gaffey Head of Evaluation Unit DG REGIO B2
Marielle Richeacute Evaluation Unit DG REGIO B2
Kai Stryczynski Deputy Head of Unit DG REGIO B2
Daniel Mouqueacute Evaluation Unit DG REGIO B2
CSIL Evaluation Team
Massimo Florio Evaluation team Director CSIL
Julie Pellegrin Evaluation team Project Manager CSIL
Silvia Vignetti Evaluation team CSIL
Emanuela Sirtori Evaluation team CSIL
Mike Coyne Evaluation team CSES
Malin Carlberg Evaluation team CSES
Anna-Maria Krarup Evaluation team CSES
Christian Koehler Case Study Saxony Centre for European Economic Research (ZEW)
Jaime del Castillo Case Study Castile amp Leon President INFYDE
Agnė Paliokaitė Case Study Lithuania Visionary Analytics
Elena Jarocinska Case Study Poland
Commission Officials
Katja Reppel Deputy Head of Unit Competence Centre Smart and Sustainable Growth
DG REGIO G1
Bernd Reichert Head of Unit H2020 SME EASME
Peter Wragg Head of Unit SME Access to Markets DG GROW F2
Jean David Malo Head of Unit SMEs Financial Instruments amp State Aid DG RTD B3
28
Istvan Nemeth Policy Officer - Enterprise Europe Network DG GROW F2
External Experts
Harvey Armstrong Professor Emeritus in the Department of Geography University of Sheffield
Robert Picciotto Visiting Professor Kings College London
Mark Sanders Professor University of Utrecht
Jiri Blazek Associate Professor Charles University Prague
Stakeholders ndash Case Studies
Adriana Agrimi Manager of RampI Policy Instrument Apulia Managing Authority
Kasper Westh Senior official Growth Forum Secretariat South Denmark
Simona Daukilaite
Deputy Head of the Economic Growth Operational Programme
Economic Growth OP Lithuania Managing Authority
Beatriz Casado Saenz Vice-General Director ADE (Development Agency Castile amp Leon)
Tomasz Kula Analysis and Evaluation Team Competitiveness and Innovation Department
Ministry of Infrastructure and Development (PL)
Representatives of other Work Packages
Terry Ward WP 1 Applica
Andreas Resch WP 3 Metis-Vienna
Anda Berenyi WP 4 KPMG
LEGAL NOTICE
This document has been prepared for the European Commission however it reflects the views only of the authors and the Commission cannot be held responsible for any use which may be made of the information
contained therein
More information on the European Union is available on the Internet (httpwwweuropaeu)
Luxembourg Publications Office of the European Union 2014
ISBN [number]
doi[number]
copy European Union 2015
Reproduction is authorised provided the source is acknowledged
Printed in [Country]
PRINTED ON ELEMENTAL CHLORINE-FREE BLEACHED PAPER (ECF)
PRINTED ON TOTALLY CHLORINE-FREE BLEACHED PAPER (TCF) PRINTED ON RECYCLED PAPER
PRINTED ON PROCESS CHLORINE-FREE RECYCLED PAPER (PCF)
Europe Direct is a service to help you find answers to your questions about the European Union
Freephone number ()
00 800 6 7 8 9 10 11
() The information given is free as are most calls (though some operators phone boxes or hotels may charge you)
22
3 NEXT STEP THEORY-BASED IMPACT EVALUATIONS
As the implementation of the evaluation study proceeds and the case studies (Task 3) are
being drafted the Team is in the course of identifying three policy instruments to be assessed
by as many theory-based impact evaluations as foreseen in Task 4 The three instruments
should be selected out of the long list of seven instruments suggested in the First Intermediate
Report and in consultation with the European Commission
The Team puts forward hereby a possible list of three policy instruments The main criteria
considered for their selection are
i The degree of representativeness of the typologies of policy instruments used in the 50
OPs as outlined in the First Intermediate Report the most significant categories of
policy instruments in terms of public expenditure are
Business creation and development ie instruments designed to stimulate
investments in the business sector without a predominant emphasis on RampD
and innovation
Support for RampD projects
Support for the development of technological and non-technological innovation
without any research and experimental development activities
ii The feasibility of a theory-based impact evaluation based on a survey of beneficiaries
which implies the availability of a sufficiently large number of beneficiaries and the
possibility to easily get their email contacts also with the help of the Managing
Authority or the implementing body the best option is to have at least some hundreds
beneficiary SMEs for each instrument
iii The importance of the policy instrument within the policy mix of the OP which ensures
the availability of a good amount of information resulting from the case study
regarding in particular its logic of intervention information about beneficiaries and
effectiveness
iv Preference is assigned to instruments on which no other surveys to beneficiaries have
been conducted so far in order not to put excessive burden on the same SMEs which
could undermine their willingness to contribute to our study
Based on these considerations the three policy instruments we propose for a theory-based
impact evaluation are presented in the table below It can be noticed that the list also ensures
geographical balance between Convergence and Competitiveness and Employment region as
well as Old and New Member States and regional and national OPs For the sake of
completeness and comparability for all the seven candidate instruments the pros and cons for
selecting each of them are detailed
23
Table 4 Comparison of the policy instruments and reasons for selection
Proposed for
selection
Type of policy
instrument
Selected policy
instrument
Operational Programme and
type of regioncountry
Descriptive information Specific reason for selection
for a TBIE Possible reasons for
rejection
YES Business creation and development
ldquoAid to investment projects by micro and small enterprisesrdquo
Regional OP Apulia (Italy) - Convergence region
- Old Member State
The instrument supports the purchase of machineries computer systems buildings construction works for enterprises in order to encourage the development of micro and small companies It benefitted more than 3 thousand SMEs For around 30 of beneficiaries grants have been combined with credit guarantees
- Very common type of SME support on which vast literature has been produced
- Very large number of beneficiary SMEs
- The strong relationship already established with local stakeholders and many SMEs would allow to easily and quickly test the surveyrsquos questionnaires before the launch of the three TBIEs
- For some SMEs opportunity to analyse the complimentary efforts of two forms of support (grants and a combination of grants and guarantees) and their respective effectiveness
- None
YES Support for RampD projects
ldquoGrants for Industrial Research and Experimental Developmentrdquo
Regional OP Castilla y Leon (Spain) - Competitiveness and Employment region
- Old Member State
The instrument encourages the development of RampD projects with the purpose of increasing the basis of number of innovative enterprises investment and personnel in RampD In total 759 projects of SMEs have been supported through grants 204 SMEs have conducted their project in collaboration with research organisations
- In analysing the achievement of beneficiary SMEs as well as the behavioural change opportunity to distinguish between SMEs which have realized their projects independently rather than in collaboration with a research centre
- According to the country expert among all the policy instruments of this OP this is the one for which it would be easier to get the contact details of beneficiary SMEs
- Possibility to get active collaboration by the regional authority ADE eg sending out an introductory letter to all
- None
24
Proposed for
selection
Type of policy
instrument
Selected policy
instrument
Operational Programme and
type of regioncountry
Descriptive information Specific reason for selection
for a TBIE Possible reasons for
rejection
SMEs mentioning that they will receive an invitation to a survey and inviting them to reply
YES Support for the development of technological and non-technological innovation
ldquoFinancing of individual projects for SMEsrdquo
National OP Poland Innovative Economy - Convergence country
- New Member State
The instrument provides grants to support the technological innovation of SMEs In particular it aims to stimulate the adoption of more risky and innovative solutions The instrument performed far better than expected 698 projects have been realised up to 2013 by approximately as many SMEs The instrument is delivered by a financial intermediary
- This instrument belongs to the OP which has provided the largest financial contribution to SMEs within the full sample of 50 OPs furthermore this is one of the core instrument of the programme as also reflected in the volume of public contribution which is among the highest of the OP (more than EUR 300 million fully targeted to SMEs)
- Opportunity to examine the role played by the intermediary according to the perceptions and opinions of beneficiary SMEs
- None
NO Support for RampD projects
ldquoRampD project grants for individual enterprisesrdquo
Germany regional OP Saxony - Convergence region
- Old Member State
The instrument provides grants to individual enterprises for supporting the implementation of RampD projects
- Evidence of achievement is already available since the instrument was subject of another evaluation study and enterprise survey a few years ago The TBIE would allow to better qualify the instrumentsrsquo achievements and the causal chain leading to the certain effects
- According to the country experts beneficiary SMEs may be reluctant to participate to another survey
- Less than 200 beneficiary SMEs a lower number as compared with other candidate policy instruments
- It is still uncertain whether it will be possible to get the email addresses of beneficiary SMEs
25
Proposed for
selection
Type of policy
instrument
Selected policy
instrument
Operational Programme and
type of regioncountry
Descriptive information Specific reason for selection
for a TBIE Possible reasons for
rejection
NO Support for the development of technological and non-technological innovation
ldquoSupport for technological upgrade - LEADER LTrdquo
Lithuania - Economic Growth - Convergence country
- New Member State
The instrument supports the increase of productivity in enterprises by supporting production technology upgrading The investment into the acquisition or upgrade of technologies and related internal engineering infrastructures are supported
- Email contacts particularly easy to be collected
- Result indicators are available due to an effective Structural Funds monitoring system and because the instrument was already subject of a previous evaluation study
- Very low number of beneficiary SMEs (69) which would make this instrument less suitable for launching an on-line survey as compared with other candidate instruments
NO Support for the development of technological and non-technological innovation
ldquoSupport for non-technological innovation - PROCESS LTrdquo
Lithuania - Economic Growth - Convergence country
- New Member State
The instrument aims to increase productivity in enterprises by implementing modern management methods and processes except of personnel management systems The purchase of external consulting services is supported in order to upgrade enterprises management processes
- Email contacts particularly easy to be collected
- Result indicators are available due to an effective Structural Funds monitoring system and because the instrument was already subject of a previous evaluation study
- The instrument is considered highly relevant by the target beneficiaries
- Very low number of beneficiary SMEs (119)
- As compared with other categories of policy instruments support for non-technological innovation is relatively less significant and representative of the typical forms of support provided to SMEs in the EU
NO Support for networking
ldquoInteraction on Innovationrdquo later merged with ldquoCluster relationshiprdquo
Denmark Innovation and Knowledge OP - Competitiveness and Employment country
- Old Member State
The policy instrument aims at analysing opportunities for creating clusters promoting networks and the formation of clusters of SMEs in particular as well as clusters of supplier networks for SMEs These objectives are pursued by providing grants to SMEs in partnership with universities (according to the triple helix model)
- Opportunity to better analyse the effects of a policy instrument on which a vast amount of literature has been produced
- Opportunity to dig into the collaboration mechanisms between SMEs and universities
- As compared with other categories of policy instruments support for networking is relatively less significant and representative of the typical forms of support provided to SMEs in the EU
- The number and characteristics of SMEs benefitting from this instrument remain unknown even after implementing the case
26
Proposed for
selection
Type of policy
instrument
Selected policy
instrument
Operational Programme and
type of regioncountry
Descriptive information Specific reason for selection
for a TBIE Possible reasons for
rejection
study The lack of data at policy instrument level prevents from identifying the beneficiary SMEs to which launching the on-line survey
27
4 ANNEX SEMINAR PARTICIPANTS
Name Description Organisation
DG REGIO Evaluation Unit
Rudolf Niessler Director DG REGIO B Policy
Veronica Gaffey Head of Evaluation Unit DG REGIO B2
Marielle Richeacute Evaluation Unit DG REGIO B2
Kai Stryczynski Deputy Head of Unit DG REGIO B2
Daniel Mouqueacute Evaluation Unit DG REGIO B2
CSIL Evaluation Team
Massimo Florio Evaluation team Director CSIL
Julie Pellegrin Evaluation team Project Manager CSIL
Silvia Vignetti Evaluation team CSIL
Emanuela Sirtori Evaluation team CSIL
Mike Coyne Evaluation team CSES
Malin Carlberg Evaluation team CSES
Anna-Maria Krarup Evaluation team CSES
Christian Koehler Case Study Saxony Centre for European Economic Research (ZEW)
Jaime del Castillo Case Study Castile amp Leon President INFYDE
Agnė Paliokaitė Case Study Lithuania Visionary Analytics
Elena Jarocinska Case Study Poland
Commission Officials
Katja Reppel Deputy Head of Unit Competence Centre Smart and Sustainable Growth
DG REGIO G1
Bernd Reichert Head of Unit H2020 SME EASME
Peter Wragg Head of Unit SME Access to Markets DG GROW F2
Jean David Malo Head of Unit SMEs Financial Instruments amp State Aid DG RTD B3
28
Istvan Nemeth Policy Officer - Enterprise Europe Network DG GROW F2
External Experts
Harvey Armstrong Professor Emeritus in the Department of Geography University of Sheffield
Robert Picciotto Visiting Professor Kings College London
Mark Sanders Professor University of Utrecht
Jiri Blazek Associate Professor Charles University Prague
Stakeholders ndash Case Studies
Adriana Agrimi Manager of RampI Policy Instrument Apulia Managing Authority
Kasper Westh Senior official Growth Forum Secretariat South Denmark
Simona Daukilaite
Deputy Head of the Economic Growth Operational Programme
Economic Growth OP Lithuania Managing Authority
Beatriz Casado Saenz Vice-General Director ADE (Development Agency Castile amp Leon)
Tomasz Kula Analysis and Evaluation Team Competitiveness and Innovation Department
Ministry of Infrastructure and Development (PL)
Representatives of other Work Packages
Terry Ward WP 1 Applica
Andreas Resch WP 3 Metis-Vienna
Anda Berenyi WP 4 KPMG
LEGAL NOTICE
This document has been prepared for the European Commission however it reflects the views only of the authors and the Commission cannot be held responsible for any use which may be made of the information
contained therein
More information on the European Union is available on the Internet (httpwwweuropaeu)
Luxembourg Publications Office of the European Union 2014
ISBN [number]
doi[number]
copy European Union 2015
Reproduction is authorised provided the source is acknowledged
Printed in [Country]
PRINTED ON ELEMENTAL CHLORINE-FREE BLEACHED PAPER (ECF)
PRINTED ON TOTALLY CHLORINE-FREE BLEACHED PAPER (TCF) PRINTED ON RECYCLED PAPER
PRINTED ON PROCESS CHLORINE-FREE RECYCLED PAPER (PCF)
Europe Direct is a service to help you find answers to your questions about the European Union
Freephone number ()
00 800 6 7 8 9 10 11
() The information given is free as are most calls (though some operators phone boxes or hotels may charge you)
23
Table 4 Comparison of the policy instruments and reasons for selection
Proposed for
selection
Type of policy
instrument
Selected policy
instrument
Operational Programme and
type of regioncountry
Descriptive information Specific reason for selection
for a TBIE Possible reasons for
rejection
YES Business creation and development
ldquoAid to investment projects by micro and small enterprisesrdquo
Regional OP Apulia (Italy) - Convergence region
- Old Member State
The instrument supports the purchase of machineries computer systems buildings construction works for enterprises in order to encourage the development of micro and small companies It benefitted more than 3 thousand SMEs For around 30 of beneficiaries grants have been combined with credit guarantees
- Very common type of SME support on which vast literature has been produced
- Very large number of beneficiary SMEs
- The strong relationship already established with local stakeholders and many SMEs would allow to easily and quickly test the surveyrsquos questionnaires before the launch of the three TBIEs
- For some SMEs opportunity to analyse the complimentary efforts of two forms of support (grants and a combination of grants and guarantees) and their respective effectiveness
- None
YES Support for RampD projects
ldquoGrants for Industrial Research and Experimental Developmentrdquo
Regional OP Castilla y Leon (Spain) - Competitiveness and Employment region
- Old Member State
The instrument encourages the development of RampD projects with the purpose of increasing the basis of number of innovative enterprises investment and personnel in RampD In total 759 projects of SMEs have been supported through grants 204 SMEs have conducted their project in collaboration with research organisations
- In analysing the achievement of beneficiary SMEs as well as the behavioural change opportunity to distinguish between SMEs which have realized their projects independently rather than in collaboration with a research centre
- According to the country expert among all the policy instruments of this OP this is the one for which it would be easier to get the contact details of beneficiary SMEs
- Possibility to get active collaboration by the regional authority ADE eg sending out an introductory letter to all
- None
24
Proposed for
selection
Type of policy
instrument
Selected policy
instrument
Operational Programme and
type of regioncountry
Descriptive information Specific reason for selection
for a TBIE Possible reasons for
rejection
SMEs mentioning that they will receive an invitation to a survey and inviting them to reply
YES Support for the development of technological and non-technological innovation
ldquoFinancing of individual projects for SMEsrdquo
National OP Poland Innovative Economy - Convergence country
- New Member State
The instrument provides grants to support the technological innovation of SMEs In particular it aims to stimulate the adoption of more risky and innovative solutions The instrument performed far better than expected 698 projects have been realised up to 2013 by approximately as many SMEs The instrument is delivered by a financial intermediary
- This instrument belongs to the OP which has provided the largest financial contribution to SMEs within the full sample of 50 OPs furthermore this is one of the core instrument of the programme as also reflected in the volume of public contribution which is among the highest of the OP (more than EUR 300 million fully targeted to SMEs)
- Opportunity to examine the role played by the intermediary according to the perceptions and opinions of beneficiary SMEs
- None
NO Support for RampD projects
ldquoRampD project grants for individual enterprisesrdquo
Germany regional OP Saxony - Convergence region
- Old Member State
The instrument provides grants to individual enterprises for supporting the implementation of RampD projects
- Evidence of achievement is already available since the instrument was subject of another evaluation study and enterprise survey a few years ago The TBIE would allow to better qualify the instrumentsrsquo achievements and the causal chain leading to the certain effects
- According to the country experts beneficiary SMEs may be reluctant to participate to another survey
- Less than 200 beneficiary SMEs a lower number as compared with other candidate policy instruments
- It is still uncertain whether it will be possible to get the email addresses of beneficiary SMEs
25
Proposed for
selection
Type of policy
instrument
Selected policy
instrument
Operational Programme and
type of regioncountry
Descriptive information Specific reason for selection
for a TBIE Possible reasons for
rejection
NO Support for the development of technological and non-technological innovation
ldquoSupport for technological upgrade - LEADER LTrdquo
Lithuania - Economic Growth - Convergence country
- New Member State
The instrument supports the increase of productivity in enterprises by supporting production technology upgrading The investment into the acquisition or upgrade of technologies and related internal engineering infrastructures are supported
- Email contacts particularly easy to be collected
- Result indicators are available due to an effective Structural Funds monitoring system and because the instrument was already subject of a previous evaluation study
- Very low number of beneficiary SMEs (69) which would make this instrument less suitable for launching an on-line survey as compared with other candidate instruments
NO Support for the development of technological and non-technological innovation
ldquoSupport for non-technological innovation - PROCESS LTrdquo
Lithuania - Economic Growth - Convergence country
- New Member State
The instrument aims to increase productivity in enterprises by implementing modern management methods and processes except of personnel management systems The purchase of external consulting services is supported in order to upgrade enterprises management processes
- Email contacts particularly easy to be collected
- Result indicators are available due to an effective Structural Funds monitoring system and because the instrument was already subject of a previous evaluation study
- The instrument is considered highly relevant by the target beneficiaries
- Very low number of beneficiary SMEs (119)
- As compared with other categories of policy instruments support for non-technological innovation is relatively less significant and representative of the typical forms of support provided to SMEs in the EU
NO Support for networking
ldquoInteraction on Innovationrdquo later merged with ldquoCluster relationshiprdquo
Denmark Innovation and Knowledge OP - Competitiveness and Employment country
- Old Member State
The policy instrument aims at analysing opportunities for creating clusters promoting networks and the formation of clusters of SMEs in particular as well as clusters of supplier networks for SMEs These objectives are pursued by providing grants to SMEs in partnership with universities (according to the triple helix model)
- Opportunity to better analyse the effects of a policy instrument on which a vast amount of literature has been produced
- Opportunity to dig into the collaboration mechanisms between SMEs and universities
- As compared with other categories of policy instruments support for networking is relatively less significant and representative of the typical forms of support provided to SMEs in the EU
- The number and characteristics of SMEs benefitting from this instrument remain unknown even after implementing the case
26
Proposed for
selection
Type of policy
instrument
Selected policy
instrument
Operational Programme and
type of regioncountry
Descriptive information Specific reason for selection
for a TBIE Possible reasons for
rejection
study The lack of data at policy instrument level prevents from identifying the beneficiary SMEs to which launching the on-line survey
27
4 ANNEX SEMINAR PARTICIPANTS
Name Description Organisation
DG REGIO Evaluation Unit
Rudolf Niessler Director DG REGIO B Policy
Veronica Gaffey Head of Evaluation Unit DG REGIO B2
Marielle Richeacute Evaluation Unit DG REGIO B2
Kai Stryczynski Deputy Head of Unit DG REGIO B2
Daniel Mouqueacute Evaluation Unit DG REGIO B2
CSIL Evaluation Team
Massimo Florio Evaluation team Director CSIL
Julie Pellegrin Evaluation team Project Manager CSIL
Silvia Vignetti Evaluation team CSIL
Emanuela Sirtori Evaluation team CSIL
Mike Coyne Evaluation team CSES
Malin Carlberg Evaluation team CSES
Anna-Maria Krarup Evaluation team CSES
Christian Koehler Case Study Saxony Centre for European Economic Research (ZEW)
Jaime del Castillo Case Study Castile amp Leon President INFYDE
Agnė Paliokaitė Case Study Lithuania Visionary Analytics
Elena Jarocinska Case Study Poland
Commission Officials
Katja Reppel Deputy Head of Unit Competence Centre Smart and Sustainable Growth
DG REGIO G1
Bernd Reichert Head of Unit H2020 SME EASME
Peter Wragg Head of Unit SME Access to Markets DG GROW F2
Jean David Malo Head of Unit SMEs Financial Instruments amp State Aid DG RTD B3
28
Istvan Nemeth Policy Officer - Enterprise Europe Network DG GROW F2
External Experts
Harvey Armstrong Professor Emeritus in the Department of Geography University of Sheffield
Robert Picciotto Visiting Professor Kings College London
Mark Sanders Professor University of Utrecht
Jiri Blazek Associate Professor Charles University Prague
Stakeholders ndash Case Studies
Adriana Agrimi Manager of RampI Policy Instrument Apulia Managing Authority
Kasper Westh Senior official Growth Forum Secretariat South Denmark
Simona Daukilaite
Deputy Head of the Economic Growth Operational Programme
Economic Growth OP Lithuania Managing Authority
Beatriz Casado Saenz Vice-General Director ADE (Development Agency Castile amp Leon)
Tomasz Kula Analysis and Evaluation Team Competitiveness and Innovation Department
Ministry of Infrastructure and Development (PL)
Representatives of other Work Packages
Terry Ward WP 1 Applica
Andreas Resch WP 3 Metis-Vienna
Anda Berenyi WP 4 KPMG
LEGAL NOTICE
This document has been prepared for the European Commission however it reflects the views only of the authors and the Commission cannot be held responsible for any use which may be made of the information
contained therein
More information on the European Union is available on the Internet (httpwwweuropaeu)
Luxembourg Publications Office of the European Union 2014
ISBN [number]
doi[number]
copy European Union 2015
Reproduction is authorised provided the source is acknowledged
Printed in [Country]
PRINTED ON ELEMENTAL CHLORINE-FREE BLEACHED PAPER (ECF)
PRINTED ON TOTALLY CHLORINE-FREE BLEACHED PAPER (TCF) PRINTED ON RECYCLED PAPER
PRINTED ON PROCESS CHLORINE-FREE RECYCLED PAPER (PCF)
Europe Direct is a service to help you find answers to your questions about the European Union
Freephone number ()
00 800 6 7 8 9 10 11
() The information given is free as are most calls (though some operators phone boxes or hotels may charge you)
24
Proposed for
selection
Type of policy
instrument
Selected policy
instrument
Operational Programme and
type of regioncountry
Descriptive information Specific reason for selection
for a TBIE Possible reasons for
rejection
SMEs mentioning that they will receive an invitation to a survey and inviting them to reply
YES Support for the development of technological and non-technological innovation
ldquoFinancing of individual projects for SMEsrdquo
National OP Poland Innovative Economy - Convergence country
- New Member State
The instrument provides grants to support the technological innovation of SMEs In particular it aims to stimulate the adoption of more risky and innovative solutions The instrument performed far better than expected 698 projects have been realised up to 2013 by approximately as many SMEs The instrument is delivered by a financial intermediary
- This instrument belongs to the OP which has provided the largest financial contribution to SMEs within the full sample of 50 OPs furthermore this is one of the core instrument of the programme as also reflected in the volume of public contribution which is among the highest of the OP (more than EUR 300 million fully targeted to SMEs)
- Opportunity to examine the role played by the intermediary according to the perceptions and opinions of beneficiary SMEs
- None
NO Support for RampD projects
ldquoRampD project grants for individual enterprisesrdquo
Germany regional OP Saxony - Convergence region
- Old Member State
The instrument provides grants to individual enterprises for supporting the implementation of RampD projects
- Evidence of achievement is already available since the instrument was subject of another evaluation study and enterprise survey a few years ago The TBIE would allow to better qualify the instrumentsrsquo achievements and the causal chain leading to the certain effects
- According to the country experts beneficiary SMEs may be reluctant to participate to another survey
- Less than 200 beneficiary SMEs a lower number as compared with other candidate policy instruments
- It is still uncertain whether it will be possible to get the email addresses of beneficiary SMEs
25
Proposed for
selection
Type of policy
instrument
Selected policy
instrument
Operational Programme and
type of regioncountry
Descriptive information Specific reason for selection
for a TBIE Possible reasons for
rejection
NO Support for the development of technological and non-technological innovation
ldquoSupport for technological upgrade - LEADER LTrdquo
Lithuania - Economic Growth - Convergence country
- New Member State
The instrument supports the increase of productivity in enterprises by supporting production technology upgrading The investment into the acquisition or upgrade of technologies and related internal engineering infrastructures are supported
- Email contacts particularly easy to be collected
- Result indicators are available due to an effective Structural Funds monitoring system and because the instrument was already subject of a previous evaluation study
- Very low number of beneficiary SMEs (69) which would make this instrument less suitable for launching an on-line survey as compared with other candidate instruments
NO Support for the development of technological and non-technological innovation
ldquoSupport for non-technological innovation - PROCESS LTrdquo
Lithuania - Economic Growth - Convergence country
- New Member State
The instrument aims to increase productivity in enterprises by implementing modern management methods and processes except of personnel management systems The purchase of external consulting services is supported in order to upgrade enterprises management processes
- Email contacts particularly easy to be collected
- Result indicators are available due to an effective Structural Funds monitoring system and because the instrument was already subject of a previous evaluation study
- The instrument is considered highly relevant by the target beneficiaries
- Very low number of beneficiary SMEs (119)
- As compared with other categories of policy instruments support for non-technological innovation is relatively less significant and representative of the typical forms of support provided to SMEs in the EU
NO Support for networking
ldquoInteraction on Innovationrdquo later merged with ldquoCluster relationshiprdquo
Denmark Innovation and Knowledge OP - Competitiveness and Employment country
- Old Member State
The policy instrument aims at analysing opportunities for creating clusters promoting networks and the formation of clusters of SMEs in particular as well as clusters of supplier networks for SMEs These objectives are pursued by providing grants to SMEs in partnership with universities (according to the triple helix model)
- Opportunity to better analyse the effects of a policy instrument on which a vast amount of literature has been produced
- Opportunity to dig into the collaboration mechanisms between SMEs and universities
- As compared with other categories of policy instruments support for networking is relatively less significant and representative of the typical forms of support provided to SMEs in the EU
- The number and characteristics of SMEs benefitting from this instrument remain unknown even after implementing the case
26
Proposed for
selection
Type of policy
instrument
Selected policy
instrument
Operational Programme and
type of regioncountry
Descriptive information Specific reason for selection
for a TBIE Possible reasons for
rejection
study The lack of data at policy instrument level prevents from identifying the beneficiary SMEs to which launching the on-line survey
27
4 ANNEX SEMINAR PARTICIPANTS
Name Description Organisation
DG REGIO Evaluation Unit
Rudolf Niessler Director DG REGIO B Policy
Veronica Gaffey Head of Evaluation Unit DG REGIO B2
Marielle Richeacute Evaluation Unit DG REGIO B2
Kai Stryczynski Deputy Head of Unit DG REGIO B2
Daniel Mouqueacute Evaluation Unit DG REGIO B2
CSIL Evaluation Team
Massimo Florio Evaluation team Director CSIL
Julie Pellegrin Evaluation team Project Manager CSIL
Silvia Vignetti Evaluation team CSIL
Emanuela Sirtori Evaluation team CSIL
Mike Coyne Evaluation team CSES
Malin Carlberg Evaluation team CSES
Anna-Maria Krarup Evaluation team CSES
Christian Koehler Case Study Saxony Centre for European Economic Research (ZEW)
Jaime del Castillo Case Study Castile amp Leon President INFYDE
Agnė Paliokaitė Case Study Lithuania Visionary Analytics
Elena Jarocinska Case Study Poland
Commission Officials
Katja Reppel Deputy Head of Unit Competence Centre Smart and Sustainable Growth
DG REGIO G1
Bernd Reichert Head of Unit H2020 SME EASME
Peter Wragg Head of Unit SME Access to Markets DG GROW F2
Jean David Malo Head of Unit SMEs Financial Instruments amp State Aid DG RTD B3
28
Istvan Nemeth Policy Officer - Enterprise Europe Network DG GROW F2
External Experts
Harvey Armstrong Professor Emeritus in the Department of Geography University of Sheffield
Robert Picciotto Visiting Professor Kings College London
Mark Sanders Professor University of Utrecht
Jiri Blazek Associate Professor Charles University Prague
Stakeholders ndash Case Studies
Adriana Agrimi Manager of RampI Policy Instrument Apulia Managing Authority
Kasper Westh Senior official Growth Forum Secretariat South Denmark
Simona Daukilaite
Deputy Head of the Economic Growth Operational Programme
Economic Growth OP Lithuania Managing Authority
Beatriz Casado Saenz Vice-General Director ADE (Development Agency Castile amp Leon)
Tomasz Kula Analysis and Evaluation Team Competitiveness and Innovation Department
Ministry of Infrastructure and Development (PL)
Representatives of other Work Packages
Terry Ward WP 1 Applica
Andreas Resch WP 3 Metis-Vienna
Anda Berenyi WP 4 KPMG
LEGAL NOTICE
This document has been prepared for the European Commission however it reflects the views only of the authors and the Commission cannot be held responsible for any use which may be made of the information
contained therein
More information on the European Union is available on the Internet (httpwwweuropaeu)
Luxembourg Publications Office of the European Union 2014
ISBN [number]
doi[number]
copy European Union 2015
Reproduction is authorised provided the source is acknowledged
Printed in [Country]
PRINTED ON ELEMENTAL CHLORINE-FREE BLEACHED PAPER (ECF)
PRINTED ON TOTALLY CHLORINE-FREE BLEACHED PAPER (TCF) PRINTED ON RECYCLED PAPER
PRINTED ON PROCESS CHLORINE-FREE RECYCLED PAPER (PCF)
Europe Direct is a service to help you find answers to your questions about the European Union
Freephone number ()
00 800 6 7 8 9 10 11
() The information given is free as are most calls (though some operators phone boxes or hotels may charge you)
25
Proposed for
selection
Type of policy
instrument
Selected policy
instrument
Operational Programme and
type of regioncountry
Descriptive information Specific reason for selection
for a TBIE Possible reasons for
rejection
NO Support for the development of technological and non-technological innovation
ldquoSupport for technological upgrade - LEADER LTrdquo
Lithuania - Economic Growth - Convergence country
- New Member State
The instrument supports the increase of productivity in enterprises by supporting production technology upgrading The investment into the acquisition or upgrade of technologies and related internal engineering infrastructures are supported
- Email contacts particularly easy to be collected
- Result indicators are available due to an effective Structural Funds monitoring system and because the instrument was already subject of a previous evaluation study
- Very low number of beneficiary SMEs (69) which would make this instrument less suitable for launching an on-line survey as compared with other candidate instruments
NO Support for the development of technological and non-technological innovation
ldquoSupport for non-technological innovation - PROCESS LTrdquo
Lithuania - Economic Growth - Convergence country
- New Member State
The instrument aims to increase productivity in enterprises by implementing modern management methods and processes except of personnel management systems The purchase of external consulting services is supported in order to upgrade enterprises management processes
- Email contacts particularly easy to be collected
- Result indicators are available due to an effective Structural Funds monitoring system and because the instrument was already subject of a previous evaluation study
- The instrument is considered highly relevant by the target beneficiaries
- Very low number of beneficiary SMEs (119)
- As compared with other categories of policy instruments support for non-technological innovation is relatively less significant and representative of the typical forms of support provided to SMEs in the EU
NO Support for networking
ldquoInteraction on Innovationrdquo later merged with ldquoCluster relationshiprdquo
Denmark Innovation and Knowledge OP - Competitiveness and Employment country
- Old Member State
The policy instrument aims at analysing opportunities for creating clusters promoting networks and the formation of clusters of SMEs in particular as well as clusters of supplier networks for SMEs These objectives are pursued by providing grants to SMEs in partnership with universities (according to the triple helix model)
- Opportunity to better analyse the effects of a policy instrument on which a vast amount of literature has been produced
- Opportunity to dig into the collaboration mechanisms between SMEs and universities
- As compared with other categories of policy instruments support for networking is relatively less significant and representative of the typical forms of support provided to SMEs in the EU
- The number and characteristics of SMEs benefitting from this instrument remain unknown even after implementing the case
26
Proposed for
selection
Type of policy
instrument
Selected policy
instrument
Operational Programme and
type of regioncountry
Descriptive information Specific reason for selection
for a TBIE Possible reasons for
rejection
study The lack of data at policy instrument level prevents from identifying the beneficiary SMEs to which launching the on-line survey
27
4 ANNEX SEMINAR PARTICIPANTS
Name Description Organisation
DG REGIO Evaluation Unit
Rudolf Niessler Director DG REGIO B Policy
Veronica Gaffey Head of Evaluation Unit DG REGIO B2
Marielle Richeacute Evaluation Unit DG REGIO B2
Kai Stryczynski Deputy Head of Unit DG REGIO B2
Daniel Mouqueacute Evaluation Unit DG REGIO B2
CSIL Evaluation Team
Massimo Florio Evaluation team Director CSIL
Julie Pellegrin Evaluation team Project Manager CSIL
Silvia Vignetti Evaluation team CSIL
Emanuela Sirtori Evaluation team CSIL
Mike Coyne Evaluation team CSES
Malin Carlberg Evaluation team CSES
Anna-Maria Krarup Evaluation team CSES
Christian Koehler Case Study Saxony Centre for European Economic Research (ZEW)
Jaime del Castillo Case Study Castile amp Leon President INFYDE
Agnė Paliokaitė Case Study Lithuania Visionary Analytics
Elena Jarocinska Case Study Poland
Commission Officials
Katja Reppel Deputy Head of Unit Competence Centre Smart and Sustainable Growth
DG REGIO G1
Bernd Reichert Head of Unit H2020 SME EASME
Peter Wragg Head of Unit SME Access to Markets DG GROW F2
Jean David Malo Head of Unit SMEs Financial Instruments amp State Aid DG RTD B3
28
Istvan Nemeth Policy Officer - Enterprise Europe Network DG GROW F2
External Experts
Harvey Armstrong Professor Emeritus in the Department of Geography University of Sheffield
Robert Picciotto Visiting Professor Kings College London
Mark Sanders Professor University of Utrecht
Jiri Blazek Associate Professor Charles University Prague
Stakeholders ndash Case Studies
Adriana Agrimi Manager of RampI Policy Instrument Apulia Managing Authority
Kasper Westh Senior official Growth Forum Secretariat South Denmark
Simona Daukilaite
Deputy Head of the Economic Growth Operational Programme
Economic Growth OP Lithuania Managing Authority
Beatriz Casado Saenz Vice-General Director ADE (Development Agency Castile amp Leon)
Tomasz Kula Analysis and Evaluation Team Competitiveness and Innovation Department
Ministry of Infrastructure and Development (PL)
Representatives of other Work Packages
Terry Ward WP 1 Applica
Andreas Resch WP 3 Metis-Vienna
Anda Berenyi WP 4 KPMG
LEGAL NOTICE
This document has been prepared for the European Commission however it reflects the views only of the authors and the Commission cannot be held responsible for any use which may be made of the information
contained therein
More information on the European Union is available on the Internet (httpwwweuropaeu)
Luxembourg Publications Office of the European Union 2014
ISBN [number]
doi[number]
copy European Union 2015
Reproduction is authorised provided the source is acknowledged
Printed in [Country]
PRINTED ON ELEMENTAL CHLORINE-FREE BLEACHED PAPER (ECF)
PRINTED ON TOTALLY CHLORINE-FREE BLEACHED PAPER (TCF) PRINTED ON RECYCLED PAPER
PRINTED ON PROCESS CHLORINE-FREE RECYCLED PAPER (PCF)
Europe Direct is a service to help you find answers to your questions about the European Union
Freephone number ()
00 800 6 7 8 9 10 11
() The information given is free as are most calls (though some operators phone boxes or hotels may charge you)
26
Proposed for
selection
Type of policy
instrument
Selected policy
instrument
Operational Programme and
type of regioncountry
Descriptive information Specific reason for selection
for a TBIE Possible reasons for
rejection
study The lack of data at policy instrument level prevents from identifying the beneficiary SMEs to which launching the on-line survey
27
4 ANNEX SEMINAR PARTICIPANTS
Name Description Organisation
DG REGIO Evaluation Unit
Rudolf Niessler Director DG REGIO B Policy
Veronica Gaffey Head of Evaluation Unit DG REGIO B2
Marielle Richeacute Evaluation Unit DG REGIO B2
Kai Stryczynski Deputy Head of Unit DG REGIO B2
Daniel Mouqueacute Evaluation Unit DG REGIO B2
CSIL Evaluation Team
Massimo Florio Evaluation team Director CSIL
Julie Pellegrin Evaluation team Project Manager CSIL
Silvia Vignetti Evaluation team CSIL
Emanuela Sirtori Evaluation team CSIL
Mike Coyne Evaluation team CSES
Malin Carlberg Evaluation team CSES
Anna-Maria Krarup Evaluation team CSES
Christian Koehler Case Study Saxony Centre for European Economic Research (ZEW)
Jaime del Castillo Case Study Castile amp Leon President INFYDE
Agnė Paliokaitė Case Study Lithuania Visionary Analytics
Elena Jarocinska Case Study Poland
Commission Officials
Katja Reppel Deputy Head of Unit Competence Centre Smart and Sustainable Growth
DG REGIO G1
Bernd Reichert Head of Unit H2020 SME EASME
Peter Wragg Head of Unit SME Access to Markets DG GROW F2
Jean David Malo Head of Unit SMEs Financial Instruments amp State Aid DG RTD B3
28
Istvan Nemeth Policy Officer - Enterprise Europe Network DG GROW F2
External Experts
Harvey Armstrong Professor Emeritus in the Department of Geography University of Sheffield
Robert Picciotto Visiting Professor Kings College London
Mark Sanders Professor University of Utrecht
Jiri Blazek Associate Professor Charles University Prague
Stakeholders ndash Case Studies
Adriana Agrimi Manager of RampI Policy Instrument Apulia Managing Authority
Kasper Westh Senior official Growth Forum Secretariat South Denmark
Simona Daukilaite
Deputy Head of the Economic Growth Operational Programme
Economic Growth OP Lithuania Managing Authority
Beatriz Casado Saenz Vice-General Director ADE (Development Agency Castile amp Leon)
Tomasz Kula Analysis and Evaluation Team Competitiveness and Innovation Department
Ministry of Infrastructure and Development (PL)
Representatives of other Work Packages
Terry Ward WP 1 Applica
Andreas Resch WP 3 Metis-Vienna
Anda Berenyi WP 4 KPMG
LEGAL NOTICE
This document has been prepared for the European Commission however it reflects the views only of the authors and the Commission cannot be held responsible for any use which may be made of the information
contained therein
More information on the European Union is available on the Internet (httpwwweuropaeu)
Luxembourg Publications Office of the European Union 2014
ISBN [number]
doi[number]
copy European Union 2015
Reproduction is authorised provided the source is acknowledged
Printed in [Country]
PRINTED ON ELEMENTAL CHLORINE-FREE BLEACHED PAPER (ECF)
PRINTED ON TOTALLY CHLORINE-FREE BLEACHED PAPER (TCF) PRINTED ON RECYCLED PAPER
PRINTED ON PROCESS CHLORINE-FREE RECYCLED PAPER (PCF)
Europe Direct is a service to help you find answers to your questions about the European Union
Freephone number ()
00 800 6 7 8 9 10 11
() The information given is free as are most calls (though some operators phone boxes or hotels may charge you)
27
4 ANNEX SEMINAR PARTICIPANTS
Name Description Organisation
DG REGIO Evaluation Unit
Rudolf Niessler Director DG REGIO B Policy
Veronica Gaffey Head of Evaluation Unit DG REGIO B2
Marielle Richeacute Evaluation Unit DG REGIO B2
Kai Stryczynski Deputy Head of Unit DG REGIO B2
Daniel Mouqueacute Evaluation Unit DG REGIO B2
CSIL Evaluation Team
Massimo Florio Evaluation team Director CSIL
Julie Pellegrin Evaluation team Project Manager CSIL
Silvia Vignetti Evaluation team CSIL
Emanuela Sirtori Evaluation team CSIL
Mike Coyne Evaluation team CSES
Malin Carlberg Evaluation team CSES
Anna-Maria Krarup Evaluation team CSES
Christian Koehler Case Study Saxony Centre for European Economic Research (ZEW)
Jaime del Castillo Case Study Castile amp Leon President INFYDE
Agnė Paliokaitė Case Study Lithuania Visionary Analytics
Elena Jarocinska Case Study Poland
Commission Officials
Katja Reppel Deputy Head of Unit Competence Centre Smart and Sustainable Growth
DG REGIO G1
Bernd Reichert Head of Unit H2020 SME EASME
Peter Wragg Head of Unit SME Access to Markets DG GROW F2
Jean David Malo Head of Unit SMEs Financial Instruments amp State Aid DG RTD B3
28
Istvan Nemeth Policy Officer - Enterprise Europe Network DG GROW F2
External Experts
Harvey Armstrong Professor Emeritus in the Department of Geography University of Sheffield
Robert Picciotto Visiting Professor Kings College London
Mark Sanders Professor University of Utrecht
Jiri Blazek Associate Professor Charles University Prague
Stakeholders ndash Case Studies
Adriana Agrimi Manager of RampI Policy Instrument Apulia Managing Authority
Kasper Westh Senior official Growth Forum Secretariat South Denmark
Simona Daukilaite
Deputy Head of the Economic Growth Operational Programme
Economic Growth OP Lithuania Managing Authority
Beatriz Casado Saenz Vice-General Director ADE (Development Agency Castile amp Leon)
Tomasz Kula Analysis and Evaluation Team Competitiveness and Innovation Department
Ministry of Infrastructure and Development (PL)
Representatives of other Work Packages
Terry Ward WP 1 Applica
Andreas Resch WP 3 Metis-Vienna
Anda Berenyi WP 4 KPMG
LEGAL NOTICE
This document has been prepared for the European Commission however it reflects the views only of the authors and the Commission cannot be held responsible for any use which may be made of the information
contained therein
More information on the European Union is available on the Internet (httpwwweuropaeu)
Luxembourg Publications Office of the European Union 2014
ISBN [number]
doi[number]
copy European Union 2015
Reproduction is authorised provided the source is acknowledged
Printed in [Country]
PRINTED ON ELEMENTAL CHLORINE-FREE BLEACHED PAPER (ECF)
PRINTED ON TOTALLY CHLORINE-FREE BLEACHED PAPER (TCF) PRINTED ON RECYCLED PAPER
PRINTED ON PROCESS CHLORINE-FREE RECYCLED PAPER (PCF)
Europe Direct is a service to help you find answers to your questions about the European Union
Freephone number ()
00 800 6 7 8 9 10 11
() The information given is free as are most calls (though some operators phone boxes or hotels may charge you)
28
Istvan Nemeth Policy Officer - Enterprise Europe Network DG GROW F2
External Experts
Harvey Armstrong Professor Emeritus in the Department of Geography University of Sheffield
Robert Picciotto Visiting Professor Kings College London
Mark Sanders Professor University of Utrecht
Jiri Blazek Associate Professor Charles University Prague
Stakeholders ndash Case Studies
Adriana Agrimi Manager of RampI Policy Instrument Apulia Managing Authority
Kasper Westh Senior official Growth Forum Secretariat South Denmark
Simona Daukilaite
Deputy Head of the Economic Growth Operational Programme
Economic Growth OP Lithuania Managing Authority
Beatriz Casado Saenz Vice-General Director ADE (Development Agency Castile amp Leon)
Tomasz Kula Analysis and Evaluation Team Competitiveness and Innovation Department
Ministry of Infrastructure and Development (PL)
Representatives of other Work Packages
Terry Ward WP 1 Applica
Andreas Resch WP 3 Metis-Vienna
Anda Berenyi WP 4 KPMG
LEGAL NOTICE
This document has been prepared for the European Commission however it reflects the views only of the authors and the Commission cannot be held responsible for any use which may be made of the information
contained therein
More information on the European Union is available on the Internet (httpwwweuropaeu)
Luxembourg Publications Office of the European Union 2014
ISBN [number]
doi[number]
copy European Union 2015
Reproduction is authorised provided the source is acknowledged
Printed in [Country]
PRINTED ON ELEMENTAL CHLORINE-FREE BLEACHED PAPER (ECF)
PRINTED ON TOTALLY CHLORINE-FREE BLEACHED PAPER (TCF) PRINTED ON RECYCLED PAPER
PRINTED ON PROCESS CHLORINE-FREE RECYCLED PAPER (PCF)
Europe Direct is a service to help you find answers to your questions about the European Union
Freephone number ()
00 800 6 7 8 9 10 11
() The information given is free as are most calls (though some operators phone boxes or hotels may charge you)
LEGAL NOTICE
This document has been prepared for the European Commission however it reflects the views only of the authors and the Commission cannot be held responsible for any use which may be made of the information
contained therein
More information on the European Union is available on the Internet (httpwwweuropaeu)
Luxembourg Publications Office of the European Union 2014
ISBN [number]
doi[number]
copy European Union 2015
Reproduction is authorised provided the source is acknowledged
Printed in [Country]
PRINTED ON ELEMENTAL CHLORINE-FREE BLEACHED PAPER (ECF)
PRINTED ON TOTALLY CHLORINE-FREE BLEACHED PAPER (TCF) PRINTED ON RECYCLED PAPER
PRINTED ON PROCESS CHLORINE-FREE RECYCLED PAPER (PCF)
Europe Direct is a service to help you find answers to your questions about the European Union
Freephone number ()
00 800 6 7 8 9 10 11
() The information given is free as are most calls (though some operators phone boxes or hotels may charge you)