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PODKARPACKIE VOIVODESHIP SITUATION ANALYSIS REPORT Within the Project Inter Ventures

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PODKARPACKIE VOIVODESHIP SITUATION ANALYSIS REPORT Within the Project Inter Ventures PODKARPACKIE VOIVODESHIP SITUATION ANALYSIS REPORT within the project Inter Ventures Rzeszów 15 June 2020 INTRODUCTION Podkarpackie Voivodeship is located in south-eastern Poland and is one of the EU's outermost regions with an area of over 17,800 km². From the south it borders with Slovakia and from the east with Ukraine, constituting the external border of the EU and the Schengen area. The capital of the district is Rzeszów. Podkarpackie is a region extremely attractive in terms of nature, as well as with a rich history and culture. The cross-border location offers great opportunities for socio-economic development. This Situation Analysis Report was aimed to examine the current socio-economic situation in the region with a particular focus on small and medium-sized enterprises (SMEs). The analysis presents the possibilities of internationalization of SMEs in the context of current legal solutions and support systems and programmes, institutions supporting SMEs in their internationalization as well as preliminary conclusions and recommendations. The report was based on, among others publicly available data, a survey conducted among SMEs, as well as interviews with local stakeholders, whose experience in supporting internationalization processes is a significant contribution to planning further activities. The report was prepared as part of the INTER VENTURES project "Policies to promote the internationalization of SMEs for more competitive regional ecosystems in border areas of the EU" co- financed by the Interreg Europe Programme. Nine partners from six European countries (Poland, Hungary, Spain, Lithuania, Italy and Germany) are involved in the project, sharing their knowledge and using each other's experience in designing possible solutions. The project also involves regional stakeholders from the public, private and non- governmental sectors. The Association of the Carpathian Euroregion Poland, which is a Polish partner in the project together with the Rzeszów Regional Development Agency, aims to develop the area of the Podkarpackie Voivodeship which, due to its location, has a great potential for internationalization of SMEs to EU and non-EU countries (especially Ukraine). The report is to be used to improve the existing instruments supporting SMEs (regional policies related to EU funds) and to develop recommendations for the next programming period adapted to the needs and specificity of the region, aimed at bringing about change and implementing solutions strengthening the competitiveness of local SMEs and improving the processes of their internationalization. 2 TABLE OF CONTENT List of charts ............................................................................................................................................ 4 List of maps.............................................................................................................................................. 6 CHAPTER 1: METHODOLOGY ................................................................................................................... 7 1.1. DESK RESEARCH ............................................................................................................................ 8 1.2. ONLINE SURVEY ............................................................................................................................ 8 1.3. INTERVIEWS .................................................................................................................................. 9 CHAPTER 2. PORTRAIT OF THE REGION ................................................................................................ 10 2.1. GENERAL INFORMATION ON THE PODKARPACKIE VOIVODESHIP ............................................. 10 2.2 ECONOMY .................................................................................................................................... 23 2.3. SMEs IN THE REGION .................................................................................................................. 57 CHAPTER 3: INTERNATIONALIZATION ENVIRONMENT ......................................................................... 66 3.1. LEGAL BACKGROUND ................................................................................................................. 72 3.2. MAIN NATIONAL AND REGIONAL STAKEHOLDERS ..................................................................... 90 3.3. MEASURES OFFERED TO SME INTERNATIONALIZATION SUPPORT ............................................ 96 3.4. BARRIERS TO AND DRIVERS FOR SME INTERNATIONALIZATION ............................................. 102 CHAPTER 4: SMEs CAPACITIES FOR INTERNATIONALIZATION ............................................................ 106 CHAPTER 5: IDENTIFIED GAPS BETWEEN POLICY INSTRUMENTS AND SMEs’ NEEDS ......................... 113 Conclusions and recommendations: ................................................................................................... 116 Bibliography ......................................................................................................................................... 119 3 LIST OF CHARTS Chart 1. Population in the Podkarpackie voivodship in 2019 ............................................................... 20 Chart 2. Birth-rate per 1000 people by voivodships in 2019 ................................................................ 21 Chart 3. Migration rate per 1000 people by voivodships in 2019. ........................................................ 22 Chart 4. Economic information about the region in the years 2015-2019 .......................................... 23 Chart 5. Gross domestic product per capita (current prices) relative deviations from the national average value ........................................................................................................................................ 24 Chart 6. Gross value added by PKD section........................................................................................... 25 Chart 7. Gross value added by PKD section and subregions (NUTS3) ................................................... 26 Chart 8. Gross value added by type of business in the Podkarpackie Voivodeship in 2017 ................. 27 Chart 9. Share of net revenues from the sale of products, goods and materials for export in the net revenues from the sale of products, goods and materials.................................................................... 30 Chart 10. Share of net revenues from the sale of products, goods and materials for export in the net revenues from the sale of products, goods and materials.................................................................... 32 Chart 11. Entities of the national economy according to selected sections ......................................... 37 Chart 12. Commercial companies by type of capital ............................................................................. 40 Chart 13. Internal expenditure on research and development ............................................................ 41 Chart 14. Share of revenues from the sale of products, goods and materials for export in the revenues from the sale of products, goods and materials.................................................................... 45 Chart 15. Entities with foreign capital in Poland and the Podkarpackie Voivodship in 2018 .............. 52 Chart 16. Foreign capital in the Podkarpackie Voivodship by selected countries of origin in 2018 ..... 53 Chart 17. Structure of employees in entities with foreign capital in the Podkarpackie Voivodeship in 2018 ....................................................................................................................................................... 54 Chart 18. Individual percentages of enterprises belonging to SMEs .................................................... 58 Chart 19. Dynamics of the number of enterprises by PKD sections in Podkarpackie voivodship in 2019 (2017 = 100)........................................................................................................................................... 58 Chart 20. Changes in the number of micro, small and medium enterprises in Podkarpackie in the years 2017-2019 ................................................................................................................................... 59 Chart 21. Number of microenterprises and employed per 1000 inhabitants by voivodship in 2018 .. 62 Chart 22. Structure of the number of micro-enterprises, employees and total revenues by voivodships in 2018 ............................................................................................................................... 62 Chart 23. Usage of non-financial support schemes within the last five years by surveyed enterprises (in %) .................................................................................................................................................... 100 Chart 24. Shortage of human resources for export activities as an internal barrier for SMEs internationalization according to the survey respondents ( in %) ...................................................... 103 Chart 25. Insufficient level of qualification and/or training of staff for internationalization as an internal barrier according to the survey respondents ( in %) ............................................................. 103 Chart 26. Difficulty in identifying foreign business opprtunites as an external barrier for SMEs internationalization according
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