Economic Development Management Tools

ECONOMIC DEVELOPMENT MANAGEMENT TOOLS

Definition : A series of mechanisms adopted by local/regional authorities to design and enforce an economic development strategy at the appropriate level. Development may be endogenous, exogenous, or a mix thereof.

Advantages : · Definition of a territorial development vision · Rationalisation of action · Mobilisation of all actors · Building a consensus regarding a region's strategic vision

Promoters : Public sector

Beneficiaries : Authorities and socio-economic actors in the area

Circulation : Wide

Transferability : Requires a political willingness and skills in technical analysis and priority identification

Experience centre :

Initial investment :

EU support : Mandatory in Structural-Fund eligible areas

First seen :

Prerequisites for success : · Quality and relevance of analyses · Mobilisation of actors · Consensus regarding the objectives

1 2 REGIONAL DEVELOPMENT PLANS (PLAN IMPLEMENTATION AGREEMENTS, CSF, ETC.)

Definition : Reference document specifying objectives and tools for public – and sometimes private – economic operator intervention, generally for a period of three to six years. It is the materialisation of public regional development strategies.

Advantages : Formulation of development priorities for the defined period.

Promoters : Public : state/region

Beneficiaries : Enterprises, intermediary structures, local and regional authorities, associations

Intervention area : NUTS II

Circulation at regional level : Large and mandatory for European regions receiving Structural Funds support.

Transferability : Easy and even imposed by the European Union for access to the Structural Funds.

Experience centre : France: State/Region or State/City plan implementation agreements European Union : areas that are structurally behind, suffering from industrial decline, and rural areas eligible to the Structural Funds.

First seen : France : 1984 (State/Region plan implementation agreement) European Union : 1988

Prerequisites for success: · Consensus among regional actors as to the priorities of the development plan · Match between measures and the requirements of local actors through a consultation or a consensus of the local/regional socioeconomic actors

3 Benchmarking features

· At tool level · Degree of implementation of the plan · Evaluation of the efficiency of the measures included in the plan · Number of jobs created

· Between regions · Partnership during both planning and implementation stages · Method used to identify priority action · Method used to select eligible projects · Method used to evaluate plans · Nature of public/private partnerships, ratio between private and public funding · Ratio of the budgets invested respectively in enterprise and infrastructure support measures · Mechanisms used to enforce measures · Value for money

4 INTEGRATED REGIONAL DEVELOPMENT OPERATION

Definition : Pooling of financial resources from several sources to finance a predefined regional development strategy.

Advantages : Concentration of financial means to achieve a pre-defined objective, generally after it is approved by the social and economic actors of the region.

Promoters : Public.

Beneficiaries : Enterprises, intermediary structures, local and regional authorities, associations

Circulation : Limited.

Transferability : Willingness a regional government level.

Experience centre :

EU support : Supported – and experimented with – by the ERDF, namely under the IMP (Integrated Mediterranean Programme).

First seen :

Prerequisites for success: Consensus, among all social and economic actors and authorities in the region as to the regional strategic vision.

· At tool level · Degree of completion · Evaluation of the efficiency of the various measures included such plans · Number of jobs created

· Between regions · Partnership during both planning and implementation stages · Method used to identify priority action · Method used to select eligible projects · Method used to evaluate plans · Nature of the public/private partnership, ratio between private and public funding · Ratio of the budgets invested respectively in enterprise and infrastructure support measures · Mechanisms used to enforce measures · Value for money

6 RIS - RITTS - RISI

Definition : Regional Innovation and Technology Transfer Strategies (RIS-RITTS) and Regional Information Society Introduction strategies (RISI) are developed on the basis of a standard model which calls for (a) the setting up of a steering committee, (b) consensus building, (c) an analysis of SME needs, (d) an analysis of the offer of services and (e) the production of a strategic plan.

Advantages : · Strategic vision in the field of innovation and technology transfer · Analysis of offer and demand of innovation in a region · Consensus on strategic requirements · Stimulation of innovation as a company culture · Organisation of regional – and possibly transnational – partnerships

Promoters : Public sector, in co-operation with industry

Beneficiaries : Companies. Local/regional authorities for their part have a strategic tool at their disposal.

Intervention layer : NUTS II

Circulation : Around 100 regions in the European Union

Transferability : No major problem, as a method has been developed and tested thanks to support from the European Commission.

Experience centre : RITTS-RIS : Wales (UK), Thessaloniki (GR), Limburg (NL), Flevoland (NL) RISI : Wales (UK), Nord-Pas de Calais (F), Shannon (IRL)

Initial investment : ECU 400,000 to 500,000

EU support : Eligible for funding under the ERDF and the Innovation Programme (DG XIII) First seen : Within the European Union : 1995

7 Prerequisites for success: · Mobilising as many actors as possible from the public and private sectors as well as from research, higher education and intermediate organisations · Capacity to build a consensus among the actors · Availability of funds to implement the strategy once it is developed · Use and co-ordination of consultants in the region and abroad

Benchmarking features

· At tool level · Membership of the steering committee · Method used to analyse SME needs and offer · Communication with regional actors · Number of SMEs consulted

· Between regions · Typology of proposed measures · Mobilisation of financial resources to implement the strategy · Capacity to carry out pilot projects

Book references : Practical guide to regional innovation actions : RIS and RITTS - Office of Publications / DG XVI

Contacts : RITTS/RIS Network of RITTS-RIS Regions : CM International - Nicolas Kandel - Tel. +33 1 30 67 23 19 DG XIII - Michael Busch - Tel. +352 4301 38 082 DG XVI - Mikel Landabaso - Tel. +32 2 296 52 56 RISI Innovation 2000 - Tel. +32 2 743 83 24

8 REGIONAL AID SCHEMES

Definition : Package of support measures and financial advantages granted to companies being created or installed in a region. Support consists in investment or job-creation premiums, sometimes in scientific sectors : RTD, environment, etc. It can take several forms : subsidies and/or tax relief.

Advantages : · Reduction of investment for companies. · Creation/attraction of companies, leading to job creation.

Promoters : Public sector.

Beneficiaries : SMEs

Circulation : Very wide.

Transferability : Easy, based on promoter budget, but limited because of a risk of unfair competition against existing companies or other regions.

Experience centre :

EU support : Eligible to ERDF, under DG IV (“Competition Policy”) control, pursuant of articles 92 through 94 of the Treaty of Rome. The maximum aid level depends on the geographical areas. The latter are determined according to the GDP per inhabitant, the rate of unemployment, the level of periphericity, ...

9 First seen :

Prerequisites for success: Selectivity of interventions.

· At tool level · Number of companies receiving support · Number of jobs created · Cost per job created · Job retention

· Between regions · Criteria of eligibility to subsidies · Selectivity of support · Specialisation of support · Duration of support mechanisms

10 PUBLIC / PRIVATE PARTNERSHIP

Definition : Establishment of contacts between the private sector and the authorities to define common strategies or carry out joint financial or infrastructure investments.

Advantages : · Mobilisation of additional financial resources. · Better match between resources and the needs of the private sector. · Consensus on a vision of industrial or productive development.

Promoters : Private or public sector

Beneficiaries : Local and regional authorities, enterprises, intermediary structures

Intervention area : NUTS II, III and even IV according to the objective pursued

Circulation : Variable

Transferability : Depends on partnership culture.

Experience centre : Economic development agencies; public/private companies; semi-public companies.

Initial investment : Variable.

EU support : Sometimes directly under the ERDF for infrastructure investment.

First seen :

11 Prerequisites for success: · Climate of mutual trust among partners · Consensus on the objectives of the partnership

· At tool level · Number of public partners involved · Volume of private co-financing mobilised per project · Public Vs private funding · Duration of partnerships

· Between regions · Number of effective partnerships · Partnership organisation methods · Nature / objective of partnerships · Method used to mobilise private partners · Legal framework developed · Role of public and private partners in partnership management · Partnership retention

12 GLOBAL GRANT

Definition : Method used to implement some of the building-blocks of a regional development policy whereby the authorities sign a contract with an intermediate structure to perform the tasks involved in this part of the development strategy.

Advantages : · Improvement and simplification of the administrative management of files or projects. · Shortening of the delays involved in project eligibility assessments.

Beneficiaries : Enterprises

Circulation : Limited

Transferability : Unlimited, if appropriate assessment or control mechanisms can be agreed with intermediate structures.

Experience centre : Instituto de Fomento de la Región de Murcia (E), Instituto de Fomento de Andalucia (E).

EU support : Measures specified in the Structural Funds regulations.

First seen : Within the European Union in 1990.

Prerequisites for success: · Trust in and credibility of the intermediate organisation chosen · Acceptation of the concept by the supervisory public authorities

· At tool level · Number of companies supported · project assessment delays · Average amounts granted · Number of jobs created

· Between regions · Total subsidies · Leverage generated by subsidies · Global subsidy management partnership · Criteria for eligibility to subsidies

14 REGIONAL SWOT ANALYSIS / STUDY

Definition : Method which consists in analysing the strengths, weaknesses, opportunities and threats in a region, prior to designing a multi-annual regional development plan.

Advantages : Ex-ante evaluation tool which makes it possible to get input and opinions from all social and economic actors in a region – provided that the study is transparent and built on a consensus.

Beneficiaries : Local and regional authorities

Intervention area : Variable. NUTS II, III and even IV according to the local/regional level being the subject of the working out of a strategic plan.

Circulation : Becoming a standard management tool.

Transferability : Depends on regional/local authority willingness.

Experience centre : GOM Vlaams-Brabant (B), GOM Limburg (B)

Initial investment : Variable according to the fact that the analysis is being internalised by an intermediate structure or that an external consultant is being called on.

EU support :

First seen :

15 Prerequisites for success: · Quality of the local partnership called upon to perform the studies · Local consensus regarding strengths and weaknesses

· At tool level · Number of partners involved as a percentage of total living strength and social and economic actors of the region · Relevance of the objectives

· Between regions · Method of analysis · Sources of information gathered / used / queried · Partnerships in place · Consultation process

16 INTERMEDIATE STRUCTURES

Definition : Private-law, sometimes public-law, organisations pursuing objectives of public interest by means of interfaces between the public and private sectors. Their mission is to implement regional public policies partly or totally. Can be considered intermediate structures : development agencies, technology transfer organisations, chambers of commerce, businessmen associations, development “intercommunales”, associations of municipalities etc.

Advantages : · Private sector flexibility applied to public missions, which often enables the public-policy implementation mechanisms to be improved · Implementation of public/private partnerships · Proximity of the regional reality

Promoters : Public sector.

Beneficiaries : SMEs, local and regional authorities

Intervention area : Variable. NUTS II, III and even IV according to the mission entrusted by its partners.

Circulation : Generally, wide.

Transferability : No particular problem, except the need for an appropriate legal framework and the recognition of the role of the public sector with regard to economic development

Experience centre : Shannon Development (IRL), Scottish Enterprise (UK), CDDE Haute-Garonne CDDE (F), Nord-Pas de Calais RDA (F), GOM (B), Idelux (B) ...

17 EU support : Under certain conditions, eligibility to the Structural Funds and use of Community funding earmarked for the implementation of company support measures.

First seen : Development agencies : late '50s and early '60s.

Prerequisites for success: · Genuine and efficient private sector representation in management and decision-making bodies. · Institutional recognition of the structure · Sharp analysis of the needs of the socio-economic fabric · Partnership culture · Ability to develop new services or to fill the gaps left by the private sector

· At tool level · Number of jobs created · Number of companies supported · Public/private partnerships · Nature of the missions

· Between regions · Composition of decision-making and management bodies · Complementarity with existing organisations · Intervention mechanisms · Variety of missions · Budget involved · Role vis-à-vis the private and merchant sectors · Rate of self-financing · Mechanism established in order to implement the missions entrusted to the organisation

18 NEIGHBOURHOOD INFRASCTRUCTURES

Definition : Land and buildings made available to companies in a region, often complemented by company support services.

Advantages : · Increased level of activity for companies in a region · Job creations

Promoters : Public, and sometimes private, sector

Beneficiaries : Companies, possibly local/regional authorities

Intervention area : Variable. NUTS III or IV

Circulation : Very wide

Transferability : No major problem

Experience centre :

Initial investment : Variable, depends on the type of infrastructure and proposed support measures

EU support : Eligibility to the Structural Funds

First seen :

Prerequisites for success : · Good location for the infrastructure · Additional advantages · Infrastructure marketing

· At tool level · Number of companies accommodated · Number of jobs created · Average occupation/utilisation rate

· Between regions · Range of available infrastructures · Percentage of companies using this infrastructure · Percentage of new companies using this infrastructure · Marketing tools used to disseminate the information

20 REGIONAL TECHNOLOGICAL CENTRES

Definition : Organisations specialising in technological services for companies. Such services are geared toward support to RTD activities such as applied research, testing, conformity certification, calibration, information, technological advice and training.

Advantages : Concentration of specialised services in technology and research.

Promoters : Public sector, as a complement to the private sector. The private sector often invests in sectoral initiatives (e.g. leather, ceramics, toys, textile ...)

Negative effects : When the centres are private, the favour big enterprises to the detriment of SMEs

Circulation : Quite wide.

Transferability :

Experience centre : Technopol Bruxelles (B), AGIT (Aachen, D)

EU support : Eligible to ERDF. Support is also possible within the framework of the 'Innovation' programme.

First seen :

21 Prerequisites for success : · Technological basis in the region · Co-operation spirit · SME awareness raising to use the centres’ services · Specificity of the offer of services in the field of technology · Protection of intellectual property · Confidentiality of research/development

· At tool level · Number of jobs created · Number of companies supported · Public/private partnership · Nature of the missions

· Between regions · Composition of decision-making and management bodies · Complementarity of existing organisations · Intervention mechanisms · Variety of missions · Budget involved · Role vis-à-vis the private and public sectors · Rate of self-financing

22 INDUSTRIAL PARKS / TRADE AREAS

Definition : Land intended for the settlement of companies in plots, generally with basic infrastructure equipment (water mains, electricity, energy, telecommunications), and sometimes with company buildings. A distinction is often made between areas recently dedicated to industrial/commercial activities and rehabilitated industrial sites. Certain areas can be thematic, e.g. seaside, airport or agri-foodstuffs areas.

Advantages : · Attractiveness for the area. · Concentration of companies within pre-established limits · Makes it easier to accommodate new companies. · Availability of special services · Possible interactions between the users · Enables selectivity in the activities

Promoters : Public authorities. Sometimes private sector initiatives, within the broader framework of real estate plans close to dynamic urban centres.

Beneficiaries : The enterprises which use them and the local and regional authorities which have a development tool at their disposal

Intervention area : NUTS IV

Transferability : Easy, except for the growing need to enforce environmental standards.

Experience centre : SPI+ in Liège (B), Comité d’Expansion Economique de la Loire – Loire Economic Expansion Committee (F)

23 EU support : ERDF eligible.

First seen :

Prerequisites for success : · Quality of available infrastructure · Marketing and management of parks · Plot-size range (small, mid-sized and large plots) · Land planning · Diversity of the formulas for acquiring or renting land · Administrative facility for granting the various authorizations

· At tool level · Available m² · Cost of infrastructure · Price per m² · Flexibility of the offer (sales Vs rental) · Degree of equipment in parks · Number of companies settled · Number of jobs

· Between regions · Number of hectares available · Revenue generated (total turnover and wages/salaries) · Cost of investment · Public awareness regarding such parks · Marketing expenses · Local/outside company ratio · Quality of and access to means of transport · Distance with prospects (end-user customers or main contractors) · Company satisfaction · Quality of the environment

24 REHABILITATION OF DERELICT INDUSTRIAL AREAS

Definition : Action aimed at the renovation of industrial buildings or rehabilitation of derelict industrial land after a large company closed down. The rehabilitation can pursue economic and/or environmental objectives

Advantages : · Reclaiming industrial space · Renewed attractiveness for the region both at the environmental level and at the level of the available space · Provision of buildings or land for new activities or public parks · Increase in the offer of land, which enables to welcome new companies

Promoters : Public sector and sometimes, private sector within the framework of real estate operations.

Beneficiaries : enterprises, municipalities in their effort of urban rehabilitation

Circulation : Wide.

Transferability : Easy.

Experience centre : LIOF in Dutch Limbourg (NL), Nord-Pas de Calais (F), Wales (UK), Lancashire (UK), Great Western Enterprise (UK)

Initial investment : Depends on the degradation of the site

EU support : ERDF eligible

First seen : Derelict Act, UK, 1992

25 Prerequisites for success: · Knowledge of the level of pollution · Legal status of the land · Technique used to reclaim the land · Quality ofthe heritage · Availability of finances

· At tool level · Number of hectares reclaimed · New use of the land · Cost per hectare of derelict land rehabilitated · Jobs created in the area

· Between regions · Promotion of the land · Assignment of the land

26 FREE TRADE ZONES

Definition : Industrial area with a particularly favourable fiscal environment for companies. The fiscal status concerns the storage and processing of products, with customs duties exemptions.

Advantages : · Reduction of cost for companies installed in such an area · Attracting investors

Negative effects : The economic development of contiguous areas can be negativelly affected

Promoters : Public authorities at national level

Circulation : Limited because of concerns regarding possible obstacles to free competition.

Transferability : Linked to decisions regarding the types of tax incentives to offer in the area.

Experience centre : Shannon (IRL) - Dunkerque (F), La Ciotat (F)

EU support : Eligible to regional policy funding, under legislative control (Articles 92 through 94 of the treaty of Rome regarding regional subsidies).

First seen : Shannon :1959; Liverpool, Isle of Man, Southampton : 1984; Tilburg : 1992; Corsica :

27 Prerequisites for success: · Continuation of tax incentives initially offered · Quality of the services offered to companies · Quality of marketing policy vis-à-vis investors · Viability of the area without any subsidies · Simplified administrative constraints and procedures · Diversity of the offer in square meters · Diversity of the formulas for the acquisition or renting of company buildings or of land

· At tool level · Number of companies installed in the area · Number of jobs created · Cost per job created · Average rate of occupancy in the area · Match between estimated and actual job creations · Job retention after subsidies are terminated

· Between regions · Degree of mobility among companies · Surface covered by free trade areas · Types of tax incentives offered · Average duration and extent of tax incentives offered · Total turnover and salaries/wages paid by companies installed in the area · Efforts made to promote the area · "After-sales" services provided to companies in the area · Degree of satisfaction among companies.

28 URBAN FREE TRADE ZONES

Definition : Urban area with a specific fiscal or legal status (tax exemption and public aids), extremely interesting for companies hiring local labour belonging to target – marginal or excluded – populations living in the urban free trade zone.

Advantages : · Social approach to long-term solutions for unemployment and exclusion · Keeping activities in urban areas in difficulties · Cost reductions for the enterprises

Promoters : Public authorities, involving partnerships with companies.

Negative effects : Relocations. Competition with neighbouring areas.

Beneficiaries : Enterprises and inhabitants of the neighbourhoods in difficulties composing the urban free zone.

Circulation : Mainly in France.

Transferability : Depends on the nature and magnitude of incentives offered.

Experience centre :

EU support :

29 First seen : 1980 in the United Kingdom under the name “Enteprise Zones” 1996 in France : 44 areas. Within 18 months, 6000 new net employments created.

Prerequisites for success: · Quality and retention of advantages offered (10 years for the Enterprise Zones in the UK) · Commitment by the private sector · Quality of the programming / planning of the zone, i.e. the definition of the advantages offered · Quality of the marketing and management of the zone

· At tool level · Number of companies installed · Number of jobs created · Cost per job created

· Between regions · Degree of mobility among companies · Surface covered by free trade areas · Types of tax incentives offered · Average duration and extent of tax incentives offered · Total turnover and salaries/wages paid by companies installed in the area · Efforts made to promote the area · "After-sales" services provided to companies in the area · Degree of satisfaction among companies.

30 TECHNOLOGICAL PARKS / SCIENCE PARKS

Definition : Industrial park specialising in technological companies, generally on a university campus (science park) or in a larger economic activity zone comprising the university, the research centre and industrial and tertiary units (technological park).

Advantages : Direct advantages in terms of company set-up and re-location. Association and networking activities, close contacts with research and academic circles, quality of life, financing, neighbouring outlets, catalyst for endogenous and exogenous innovation potentials.

Promoters : Private sector, Public sector or a mixture of both, university, public research centre.

Beneficiaries : The enterprises which use them and the local and regional authorities which have a development tool at their disposal

Circulation : Widespread concept, sometimes involving sector-based approaches. Some technological parks are called "technopolis" but do not radiate outward significantly enough to deserve that name.

Transferability : Limited by company culture and low academic awareness.

Experience centre : Sophia Antipolis (F), Inno Pole in Toulouse-Labège (F), ontpellier (F), Louvain-la-Neuve (B), Aston (UK), Warwick (UK)

Initial investment : ECU 5,000,000 in Aalborg (Novi Park) - ECU 46,000,000 in Malaga - ECU 6,300,000 in Cumbria (UK)

EU support : · In the past, via the SPRINT programme. · ERDF eligible.

31 First seen : Sophia Antipolis (F) 1975; Cambridge Science Park (UK) 1970; Stanford Research Park (USA) 1951

Prerequisites for success: · Quality of interaction between companies and universities · Reputation of academic circles · Integration of the scientific park in local economies · Regional capacity for innovation

· At tool level · Number of companies installed in such parks · Number of university spinoffs generated · Number or researchers on sight compared to total employment · Local/outside – regional, national – company ratio

· Between regions · Formal/informal organisation of partnerships · Parameters used to accept/refuse prospect companies · Marketing tools used by parks · Park management · Total tax revenue generated by companies installed in such parks · Cost of public subsidies · Quality of infrastructure made available · Sector specialisation of the park · Total turnover and salaries/wages paid by companies installed in such parks · Number of patents registered by companies · Number of licenses issued by companies · Total venture capital invested in companies installed in such parks · Impact of those parks on the local economy (spin-off effect)

32 CONFERENCE CENTRE / EXHIBITION CENTRE / FAIR CENTRE

Definition : A place where events such as exhibitions, fairs, congresses and conferences can be held.

Advantages : · Services to companies · Animation in a city / region · Dynamic image for a city/region · Development of congress/business tourism

Promoters : Public / Private / Mix

Beneficiaries : Companies

Intervention area : Important city / Regional capital city

Transferability : No major problem, provided the needs are accurately identified (to avoid excessive/insufficient response to customer requirements)

Experience centre : Hannover (D), Cannes (F)

Initial investment : Important + high maintenance costs

EU support : Eligibility to the Structural Funds

First seen :

Prerequisites for success : · Adequation between the accommodating capacity and the demand · Existence of a major recurrent event

33 · Marketing policy · Availability of subsidies or of sponsors for certain major events.

Benchmarking features · At tool level · Number of events organised per year · Square footage used per event

· Between regions · Event popularity · Nature of events (open / professionals only) · Number of visitors per year · Number of hotel nights per participant · Frequency of meetings · Ratio between foreign and domestic visitors

34 RECREATION PARKS

Definition : Leisure parks featuring a number of entertainment rides (Euro-Disney, Walibi, Warner Bros.) or theme parks : scientific (Futuroscope, Cité de la Science), Miniature cities (Mini Europe, Legoland, Madurodam), historical re-creations (Bokrijck, Puy du Fou, Skansen-Stockholm, Bunratty-Shannon). In some cases, theme parks superimpose on existing towns (Redu (B), village du livre).

Advantages : Attracts tourists in vast numbers, even though it may be seasonal or attract only one-day tourists. The enterprises can benefit from the positive image acquire by the region.

Promoters : Private, public or a mixture thereof. Authorities often play a part in a company's decision to settle in their area by offering subsidised investment or by being directly involved as an operator (Bunratti, Futuroscope, Eurodisney etc.).

Beneficiaires : operators of the tourism sector, employment

Intervention area : Variable. NUTS I or NUTS II

Circulation : Variable.

Transferability : Limited by the market or by the size of investments involved.

Experience centre : Disneyland Paris (F), Legoland Billund (DK), Walibi Wavre (B), Futuroscope Poitiers (F), Madurodam Den Haag (NL)

EU support :

First seen : Madurodam (196.) - Futuroscope (1987)

Prerequisites for success: Quality and innovation of the programme of attractions of the park Benchmarking features

35 · At tool level · Number of visitors · Average duration of visitor stay in the region · Number of jobs created · Volume of yearly modernisation / development investment

· Between regions · Degree of integration in local economies (suppliers, jobs) · Tax revenue generated · Indirect investment Vs activity generated (hotels, conferences, etc.) · Park marketing policy Vs regional marketing policy

36 BUSINESS INCUBATORS

Definition : Industrial or mixed building in which space is leased on flexible terms (easy entry and exit) to new companies, minimum common services included. The incubator can pursue general objectives : promote regional economic growth through developing the enterprise creation rate or specialise in the development of companies with a strong technological basis (technological incubators or innovation centres (see below).

Advantages : · Services offered to companies : general management advice, secretarial and marketing support, access to financing, accounting, technological and legal advice, etc. · Stimulus to start-ups · Increases the rate of survival of nex enterprises

Promoters : Public sector. Sometimes private sector within the framework of real estate operations. Public finance has often a lever effect in order to attract private finance.

Beneficiaries : Nascent or newly created SMEs

Transferability : Fairly easy, depending on local company culture.

Experience centre : Incubators networks in Flanders (B), Nord-Pas de Calais (F) : Régie Départementale des Ruches d’Entreprises; Réseau des Directeurs de Pépinières d’Entreprises

EU support : ERDF eligible First seen :

37 Prerequisites for success: · Start-up culture in the region · Quality of services offered to companies · Attractiveness of accommodation · Incubator’s location · Capability to develop formal and informal entrepreneurs’ networks · Installagion of management tools in order to control the costs of the services offered

· At tool level1 · Number of companies accommodated · Rate of company survival after three and five years · Average yearly occupancy rate in the building (except for failed start-ups) · Rate of self-financing (revenue generated by installations Vs total revenue) · Average price billed against companies Vs market prices · Diversity and complexity of services offered to businessmen · Degree of awareness as to the existence of such business incubators · Average number of months spent by companies in the business incubator

· Between regions · Number of business incubators per inhabitant and/or companies set up per year · Number of m² available in the region · Cost of initial investment · Cost of subsidisation per business incubator · Composition of business incubator managing bodies · Range of services offered by incubators · Billing policy in business incubators · Maximum duration of stay for companies · Total turnover and salaries/wages paid by companies installed in the business incubator · Occupancy trends per year

1 In France, there is an AFNOR standard Ref. NF X 50 - 770 dated 20.8.97 which can be used as a “Quality Charter”

38 BUSINESS AND INNOVATION CENTRES

Definition : business incubators specialising in innovative or high-tech companies.

Advantages : · Specialised advice tailored for companies and/or businessmen · Favourable environment for enterprise creation · Improvement of the region’s technological basis · Raises the rate of survival of new enterprises · Diversification of local economy

Beneficiaries : Young enterprises and innovative SMEs

Intervention area : NUTS II or III

Circulation : Rather wide, as there are currently 140 CICs in the European Union.

Transferability : Depends on local company culture.

Experience centre : SOCRAN (Liège, B), BIC Liguria (Genova, I), Twente (NL)

Initial investment : Around ECU 500,000/year during the first three years.

EU support : ad-hoc regional policy programme.

First seen : 1984, in terms of financial support by the European Commission.

Prerequisites for success: · Stimulation of a start-up culture for technological or innovative companies · Quality of the services and support provided to would-be entrepreneurs · Formal and informal contacts between businessmen installed in the same CIC

· At tool level · Number of companies accommodated · Rate of company survival after three and five years · Average yearly occupancy rate (except for failed start-ups) · Rate of self-financing · Average price billed against companies Vs market prices · Diversity and complexity of services offered to businessmen · Degree of awareness as to the existence of such business incubators · Contacts among businessmen · Degree of technological innovation among companies · Average number of months spent by companies in CICs

· Between regions · Number of business incubators per inhabitant and/or companies set up per year · Space (in m²) available in the region · Cost of initial investment · Cost of subsidisation per CIC · Membership of CIC managing bodies · Range of services offered by CICs · Billing policy in CICs · Synergies between CICs and other regional intermediate bodies and organisations in charge of managing the offer of innovation services · Total turnover and salaries/wages paid by companies installed in CICs · Occupancy trends per year in CICs

Bibliographic references : OECD “Technology incubators : Nurturing small firms” - OECD/DG (97) 202 - 1997

Useful address : European Business and Innovation Centre Network (EBN) - 188A avenue de Tervuren - B-1150 Bruxelles Tel. +32 2 772 89 00 - Fax. +32 2 772 95 74

40 I.T. CENTRE

Definition : Business centres with both intranet and Internet capabilities. Designed specifically for information technology-related activities. I.T. Centres can also be used as showcases to present information and communication technologies.

Advantages : · Excellency centre in a region · Awareness among companies and possibly among other socio-economic actors · Dissemination of innovation with companies

Promoters : Public

Beneficiaries : Companies, citizens, students

Circulation : Still relatively low, except in the UK and Ireland (through telecottages) as well as in Scandinavia.

Transferability : No major problem if the telecommunication infrastructure is available.

Experience centre :

EU support : Eligibility to ERDF

First seen :

Prerequisites for success : · Availability of telecommunication infrastructure · Quality of the services

· At tool level · Number of users · Types of users · Cost per utilisation · Types of services offered · Available expertise

· Between regions · Quality of services and equipment · Number of centres per inhabitant · Types of infrastructure available · Cost of access to services · Location of I.T. Centres · Degree of accessibility · Types of services available (showcases, test, training, etc.)

42 TELEPORTS

Definition : Telecommunications services centre for companies and researchers.

Advantages : · Investment costs are shared by several users (economies of scale are generated). · Technological movement through access to leading-edge infrastructure in a region.

Promoters : Public, Private or a mix thereof.

Circulation : Limited, as recent developments in information technologies have rendered this concept completely obsolete after a while.

Transferability : Limited because of the need for a critical mass.

Experience centre : Louvain-la-Neuve (B), Sachsen (D), Roubaix (F).

EU support :

First seen : Early in 1990.

Prerequisites for success: ·Quality of telecommunication infrastructures

· At tool level · Number of companies covered by a teleport · Nature and quality of available infrastructure

· Between regions · Development of clusters or chains of telecommunication companies · Average cost of use of such services · Nature of the promoters

44 CALL CENTRE HOTELS

Definition : Principle of the enterprise centre, but specialising in contacts between companies and the outside world using telephone lines. Call centres can be divided into inbound-call centres and outbound-call centres. Typical examples are help desks and hot lines for inbound call centres, and telemarketing or surveys for outbound call centres.

Advantages : Savings on phone bills for companies and creation of jobs in a region.

Promoters : Private / Public.

Intervention area : NUTS I or II

Circulation : Low.

Transferability : Depends on call rates and on the quality of the telecommunication infrastructure.

Experience centre : Ireland, Scotland.

EU support :

First seen : The middle of 1990 in Ireland and Scotland.

Prerequisites for success: · Tariff policy (operators) · Quality of infrastructure · Cost of labour · Language training for the workforce or availability of native speakers

· At tool level · Number of active companies · Number of jobs created · Number of phones (and/or phone lines) available

· Between regions · Competitiveness of phone rates · Quality of telecommunication infrastructure · Available office space

46 MULTIMODAL FREIGHT CENTRES

Definition : Centres offering a wide range of administrative, technical, etc., services to transport companies. Some centres can offer multimodal features, i.e. allow for transfer of freight from/to several means of transport.

Advantages :Creation of new activity – and hence jobs – in the transport sector and related services.

Promoters : Private / Public.

Beneficiaries : Enterprises specialising in the transport and handling sectors

Intervention area : NUTS II located at a node of communication networks (road / rail / air / waterway)

Transferability : Depends on the market and geographical location and on the availability of transport means (rail, road, waterways)

Experience centre : Athus (B), La Louvière (B), Toulouse Eurocentre (F)

EU support : Possible for feasibility studies on multimodal platforms under the Transport Policy (DG VII). Infrastructure financing is eligible under the Structural Funds.

First seen :

Prerequisites for success: · Existing transport nodes · Quality of the services provided · Variety of types of transport infrastructure

· At tool level · Number of companies present in the freight centre · Number of jobs created · Tonnage of freight handled · Shipment lead times (immobilisation)

· Between regions · Quality of infrastructures · Interconnection of infrastructures with European networks

48 MULTI-SERVICES CENTRE

Definition : In depopulated rural areas, concentration of a number of public – e.g. post office – and private services (e.g. shops) at one location.

Advantages : · Keeps rural areas populated · Meets public needs

Promoters : Public sector, in co-operation with the private sector

Beneficiaries : Population as a whole

Intervention layer : NUTS IV

Circulation : Wide in France, namely in rural municipalities with fewer than 2,000 inhabitants

Transferability :

Experience centre :

EU support : Eligible to EAGGF-Guidance

First seen : Early 1990 in France

Prerequisites for success: Quality of the offer of public and private services

· At tool level · Nature of the services offered · Number of consumers · Degree of public satisfaction

· Between regions · Number of multi-services centres · Average population serviced per centre · Average public spending per centre

50 FACTORY OUTLETS

Definition : Outlet selling branded products from surpluses and oddments dating back to at least one year. In some cities, such outlets are grouped in one or more shopping areas. The traditional local trade does not suffer from the direct competition of these outlets since it sells the products of the current year.

Advantages : Economic impetus, job creations.

Negative effects : Direct competition for shops selling low-price articles.

Promoters : Private sector.

Circulation : Relatively low. Essentially in some Northern European countries.

Transferability : Depends or market absorption rates and how this competition is met by traditional retail in the region.

Experience centre :Troyes (F), Swindon (UK), Paris (F), Roubaix (F)

EU support : None

First seen :

Prerequisites for success: · Critical mass of outlets in order to ensure a substantial flow of potential buyers · Safety of supply to outlets

· At tool level · Number of brands · Number of visitors · Number of jobs created · Outlet surface · Turnover/m² · Rate of occupancy in shopping centres

· Between regions · Impact on traditional retail · Tax revenue generated

52 MOBILISATION OF THE ENDOGENOUS POTENTIAL

Definition : A series of actions undertaken to trigger economic growth by making the best use the human, natural and financial resources available in a specific area.

Advantages : · Mobilisation of local resources · Improvement of the economic environment · Creation of companies and jobs

Beneficiaries : Enterprises, associations

Intervention area : Variable. From NUTS IV to NUTS II

Circulation : Wide, but with variable results.

Transferability : No major problem.

Experience centre :

EU support : Under the Structural Funds. Was the focus of the LEDA Research/Action financed by DG V.

First seen :

53 Prerequisites for success: · Definition and endorsement of a regional strategy by elected representatives and social and economic actors at regional level · Public/private partnership · Leadership

· At tool level · Number of jobs created ·

· Between regions · Method used to define strategies · Quality of strategies · Partnerships implemented

54 STIMULATION OF ENTREPRENEURSHIP

Definition : Actions undertaken in favour of would-be entrepreneurs. Actions are often required to identify potential entrepreneurs and to train them as company managers. In some regions, action is taken as early as mainstream school. In others, actions target specific groups : youth, women, the unemployed, etc.

Advantages : · Increase in the number of start-ups · Job creations · Renewed dynamism for local economies

Promoters : Public and private sectors

Beneficiaries : Entrepreneurs

Intervention area : Variable. NUTS III or IV

Circulation : Rather wide

Transferability : No problem

Experience centre : Scottish Enterprise (UK), Nord-Pas de Calais RDA (F)

EU support : Eligible to the Structural Funds. Has also been the subject of a concerted action of DG XXIII.

First seen :

Prerequisites for success : · Entrepreneurial culture in the population · Awareness campaigns · Capacity of foreseing the needs for activities of the geographical area at the middle term · Existence of accompanying measures for the potential enterprise creators

· At tool level · Number of individuals reached · Number of companies created per year

· Between regions · Awareness raising method adapted to each target public · Targeting the target publics of the awareness campaigns · Teachers’ training · Nature and quality of the accompanying measures for the creators

56 COMPANY BUY-OUT / TRANSFER

Definition : Support for a buyer or for the head of a company willing to transfer ownership in order to retire. Support can consist in finding a new owner or in training him/her to ensure company survival.

Advantages : · Company survival · Activities and jobs are saved

Promoters : Public and private sectors

Beneficiaries : Entrepreneurs

Circulation :

Transferability : No major problem, except in countries where companies are mainly family businesses and inheritance problems may crop up.

Experience centre : Nord-Pas de Calais RDA (F). Flanders (B) has adopted in 1996 a reduced tax on the death duties applied to family enterprises.

EU support :

First seen :

Prerequisites for success : · Sufficient number of companies · Entrepreneurial spirit in the region

· At tool level · Number of companies supported · Number of potential new owners identified

· Between regions · Number of companies that may have to be transferred · Type of support provided

58 REGIONAL SECTORAL INDUSTRIAL NETWORKS

Definition : High concentration of companies operating prior to and after the production stage in the same – often high-tech – economic sector.

Advantages : Renewed dynamism of the social and economic fabric of society around a production network.

Promoters : Private. The public sector can play a major role as a catalyst by targeting its support or actions to attract or help set up new companies. It is an avenue worth investigating to convert traditional industrial areas or to stimulate developing regions.

Circulation : Quite wide in certain industrial regions.

Transferability : Depends on market niches.

Experience centre : Silicon Valley (USA), Scotland's Silicon Valley (UK), Language Valley (region d’Ypres, B), M4 (UK), Plastic Valley (Oyonnax, F), Aeronautics (Toulouse, F), Mutuelle d’assurance (Niort, F)

EU support : Indirect.

First seen : Scotland's Silicon Valley : Silicon Valley in the United States : Prerequisites for success: · Concentration of companies · Sectoral support policy for companies

59 · Presence of a centre of attraction, either a (big) pioneer enterprise or a research centre

· At tool level · Number of active companies in such networks · Number of new companies set up every year · Number of jobs in such networks · Yearly rate of job growth

· Between regions · Public/private partnership set up to support/develop networks · Type/nature of support provided for target sectors · Type of non-financial services developed

60 CLUSTERS Local production systems

Definition : Sectoral networks of SMEs set up in a given geographic area in order to maximise synergies among companies, joint services (research, innovation, design, marketing, etc.) and connected services (advice, manufacturing of machines, tools, banks, etc.).

Advantages : · Strengthens SME competitiveness (production, exports, creation of companies and jobs, skills, company culture). · Rate of SME growth and development above average. · Propensity to innovate.

Promoters : Private / Public. The role of the public sector is essentially as a catalyst and financial support for a number of joint local infrastructures.

Intervention area : NUTS II and even NUTS II

Circulation : Each region can potentially set up one or more of those clusters (industry or services).

Transferability : Depends on company culture in a region and especially on businessmen's willingness to co-operate with local competitors

Experience centre : Emilia-Romagna : ERVET (I); Valencia : IMPIVA (E); Pais Vasco (E); Oyonnax (F); Yorkshire & Humberside : Medilink (UK); Rotterdam (NL) : Transport; Vallée de l’Arve (F), Choletais (F)

61 EU support : This phenomenon is being studied by EBN and has been the theme of several conferences organised by various Dgs.

First seen : 1975 in Emilia-Romagna (I)

Prerequisites for success: · Concentration of jobs in one sector · Organisations offering joint services · Tradition of co-operation among companies · Quality of services offered to companies · High degree of industrial specialisation around one sector/network · Driving and growing sectors or activities · Presence of a “champion” company · Presence of a charismatic leader or of a strong structure · Critical mass of skills · Existence of a wide market

· At tool level · Number of companies per cluster · range of joint services offered

· Between regions · Number of clusters · Cluster organisational features · Type of partnership within clusters · Quality of promoters

62 INDUSTRIAL OR UNIVERSITY SPINOFFS

Definition : Technique aimed at fostering SME creations based on potential projects or activities identified within a company, or based on university-led research projects. The action to promote the spin off is sometimes complemented by the creation of a seed capital fund or a venture capital fund.

Advantages : · Development of new activities, materialisation of potential projects. · Directly in terms of new companies being set up, sometimes in high-tech sectors

Promoters : Private / Public. The public sector must provide a favourable environment and act as a catalyst for its development or allow access to start-up capital.

Beneficiaries : Enterprise creators and developing enterprises

Intervention area : University regions or cities

Transferability : Depends on local entrepreneurial spirit.

Experience centre : Industrial : University : University of Twente (NL); Leuven Research and Development (B)

EU support : This phenomenon is being studied by EBN.

First seen : Twente 1985 Prerequisites for success: · Awareness among students / researchers as to start-ups · Quality of contact networks between universities and business

63 · Availability of venture capital, principally seed capital

· At tool level · Number of start-ups/year · Number of jobs created · Cost per job created

· Between regions · Awareness policy for potential company creators · Degree of involvement among universities / research centres · Degree of popular support for the concept · Support for heads of new companies

64 LOCAL SUPPLY CHAINS

Definition : A method to help large companies identify potential reliable local suppliers. A database of local companies is needed. The companies have to be audited in terms of their capacity to work to the specifications of large companies. They also need to be informed of the strategies regarding their relationship with the local supply chain.

Advantages : · Support to local companies · Increased share of components bought locally by large companies

Promoters : Public intermediate organisations

Intervention layer : NUTS II or III

Transferability : Easy

Experience centre : East Midlands (UK), through the East Midlands Regional Supply Office (RSO)

First seen :

65 Prerequisites for success: · Co-operation among companies · Quality and reliability of the audits

· At tool level · Number of companies in the database · Number of large companies in the partnership · Number of deals brokered

· Between regions · Degree of sectoral / international specialisation of the supply chains · Method used to raise awareness among large and local companies

66 ALTERNATIVE (GREEN, CULTURAL, ETC.) TOURISM

Definition : Tourism products targeted toward specific prospects based on local resources. By way of examples, here are a few products developed in rural areas (green tourism) : visit of craft SMEs, tours for bicycle tourists, for hikers, discovering country cooking, educative or sportive practices, tourist railways, thematic routes, tourism and stays in farms, hunting and fishing stays ...

Advantages : Job creations, longer seasons, attraction of new prospects, diversification of regional activities, use of endogenous potential, valorisation of the image / attractiveness of the area, possibility of multi-activities for the farmers.

Promoters : Public / private sector.

Beneficiaries : Operators of the tourism sector

Intervention area : NUTS III

Circulation : Wider with time.

Transferability : No major problem, except in identifying a theme or even a market niche.

Experience centre :

EU support : Eligibility to the Structural Funds and to Community initiative LEADER.

First seen :

67 Prerequisites for success: · Good product definition · Quality of tourist management · Promotional efforts · Quality of the site

· At tool level · Number of tourists · Origin of tourists · Average number of days spent in the region · Average spending per tourist · Quality of the services offered · Seasonal character of the product · Number of jobs created

· Between regions · Nature and diversity of the offer · Product promotion / marketing techniques · Partnership with the hotel / restaurant sector · Targeting of customers · Regularity of offer · Interest of the media in the region’s products

68 REGIONAL NATURAL PARK

Definition : An area with environmental assets where activities are regulated, namely in terms of the balance between farming and/or tourism and environmental concerns

Advantages : · Protection of the environment · Tourism products

Promoters : Authorities

Beneficiaries : Enterprises, farmers

Transferability : Depends on the value of the site

Experience centre : Aosta (I), Camargue (F)

EU support : Eligibility to the structural funds

First seen :

69 Prerequisites for success : · Consensus among the population · Control over activities · Value of the area

· At tool level · Number of jobs created · Number of visitors

· Between regions · Related tourism activities created · Tourism activities generated · Improving the environmental protection (safeguard of threatened species, introduction of new production methods ...)

70 HERITAGE CENTRES

Definition : A museum, the mission of which is to preserve, valorise and raise awareness as to, the industrial or craft heritage and traditions of a region.

Advantages : · Valorisation of the endogenous potential · Tourism product

Promoters : Public

Beneficiaries : Tourists

Intervention layer : NUTS IV or III

Experience centre :

EU support :

First seen :

Prerequisites for success: · Quality traditions

· At tool level · Number of visitors · Origin of the visitors · Area covered by the heritage centre

· Between regions · Number of such centres in the region · Themes covered by the centres

72 REGIONAL MARKETING / INWARD INVESTMENT

Definition : Efforts made to improve a region's image, principally so at to attract "foreign" investors.

Advantages : · Economic contribution from outside the area · Creation of jobs and added value in the region

Promoters : Public sector, also in association with the private sector and the local authorities

Negative effects : Enterprise’s withdrawal. Sites’ closure for a better location.

Intervention area : NUTS IV, III or II

Transferability : Wide

Experience centre : Welsh Development Agency (UK); Scottish Enterprise (UK)

EU support : Eligible for ERDF

First seen :

73 Prerequisites for success: · Diagnosis of the territory with a view to defining the local strengths and weaknesses and so targeting the activity sectors to be attracted · Quality of the message · Consensus among all partners and cooperation between them · Competitive edge in the region (infrastructures, subsidies for companies, attractiveness for potential investors, availability of skilled labour, environment, good standards of living, etc.). · Cooperation between the national organisations (Invest in France ...) and the local/regional actors · Capacity to manage the contacts and demands of the potential investors

· At tool level · Number of companies attracted · Number of jobs created · Promotional budget per year · Number of articles published in regional newspapers · Number of companies contacted

· Between regions · Number of exploratory missions · Targets of promotional actions · Method used to approach companies · Type of media used for the marketing campaigns · Type of relations between the local/regional partners between themselves · Type of relations of the local/regional intermediary structures with the national organisations specialised in attracting inward investment · Place and number of offices established abroad.

74 BUSINESS SERVICES

Definition : A series of actions aimed at supporting existing or starting companies. This notion includes a wide variety of both financial and mentoring activities for companies. Some activities are linked to the services sector as such : management advice, consulting, IT services, contract research, recruitment and other operational services. Others are more specifically geared toward local services : support to start-ups, to companies going international, to expansion, etc.

Advantages : · Improves company competitiveness. · Supports company expansion · Increases the rate of survival of young enterprises

Promoters : Private and public sectors. The authorities often provide financial support when the private sector fails to do so. It can also create demand for new services.

Intervention area : NUTS III or IV

Circulation : Variable, both in terms of services to the private sector and in terms of local support.

Transferability : No major problem. However, questions may arise regarding the limits of public intervention in this field.

Experience centre : ERVET (I) et IMPIVA (E) : genuine services to companies. All other development agencies and intermediate organisations.

EU support : Eligible to the ERDF and in some cases to other Community policies (SME policy, innovation, etc.).

75 First seen :

Prerequisites for success: · Quality of the services offered · Professional quality of the structures

· At tool level · Number of companies supported · Cost of services · Paying Vs Free services · Stable offer of services

· Between regions · Nature of services · Quality of the organisations offering the services · Competition among services providers · Substitution for private sector failure · Complementarity of private and public offer · Accessibility of services for companies · Marketing policy for the services · Rate of use by companies · Limits to the services offered · Stimulation of the demand for new services by the enterprises · Method to analyse the enterprises’ needs

76 AUDIT / COUNSELLING / ADVICE

Definition : Measures aimed at identifying and removing obstacles to growth or new product development by SMEs. Audits can sometimes be very specific : technology, language, environment and even energy audit. Further to the audits, the SMEs can receive an experts’ technical assistance with a view to remedying the weaknesses revealed by the audits. Several methods of financing the counsellors have been set up (subsidies, counselling-vouchers ....)

Advantages : Improves SME competitiveness. Company and –possibly – job growth.

Promoters : Public sector, sometimes as a complement to or substitute for private offer of such services.

Circulation : Quite wide.

Experience centre : IGRETEC (B), GOM Vlaams-Brabant (B) : energy audit

EU support : Eligibility to the Structural Funds and to DG XXIII actions, namely Euromanagement.

First seen :

Prerequisites for success: · Quality and relevance of the services offered · Cost of the services

77 · Awareness as to the existence of such services among heads of companies

· At tool level · Number of companies supported · Average cost of support per company · Average number of days of consultancy offered (number of hours per day)

· Between regions · Match between offer of and demand for such services · Mechanisms to raise company awareness · Types of services offered · Nature of the services offered (management, marketing, innovation, etc.) · Complementarity of private and public offer · Method used in selecting companies · Method used to evaluate results · Available budget · Number of consultants involved · Consultant profile

78 BANKRUPTCY PREVENTION CENTRES

Definition : Cells which produce financial diagnoses for companies based on annual accounts. These centres then try to solve any problem, if required. Their conclusions are not binding and their work is privileged information.

Advantages : Lower bankruptcy rates

Promoters : Public sector, private sector, and even entrepreneurs’ associations

Transferability : Depends on the availability of financial data from companies

Experience centre : Antwerpen (B); Murcia University (E)

Initial investment : ECU 200,000 ECU / year in Antwerpen (B)

EU support :

First seen : Antwerpen 1996

Prerequisites for success : · Availability of financial data · Confidentiality of interventions · Speed of intervention · Co-operation / readiness among companies

· At tool level · Number of interventions per year · Cost per intervention

· Between regions · Method used to identify the financial danger zone in companies · Quality of interventions with SMEs

80 MENTORING

Definition : Technical assistance to SMEs by intermediate structures or large companies in order to solve management or growth issues.

Advantages : Access to know-how at affordable prices for SMEs.

Promoters : Public / Private

Intervention area : Variable. NUTS III or II, even IV

Circulation : Wide.

Transferability : Company willingness and mobilisation.

Experience centre : Lyon (F) with retired executives; Kempen (B) : PLATO Programme

First seen : PLATO : Kempen (B) : 1975

Prerequisites for success: · Availability of qualified and motivated mentors · Quality and relevance of services offered · Cost of services · Awareness among heads of companies as to the existence of such services

· At tool level · Number of companies supported · Average cost of support per company · Average number of days of consultancy offered (number of hours per day)

· Between regions · Match between offer of and demand for such services · mechanisms to raise company awareness · Types of services offered · Nature of the services offered (management, marketing, innovation, etc.) · Complementarity of private and public offer · Method used in selecting companies · Method used to evaluate results · Available budget · Number of consultants involved · Consultant profile

82 TECHNOLOGY OR INNOVATION TRANSFER

Definition : Measures and actions implemented in order to promote the acquisition of new techniques or technologies or even new forms of organisation at company level or to develop new techniques or technologies within companies. This supposes the realisation of company audits, the identification and evaluation of the technological opportunities, the cooperation between companies and researc centres and, in certain cases, the implementation of relevant financial mechanisms.

Advantages : · Developing new products and setting up new companies. · Improving company competitiveness. · Development of skills and excellency centres. · Reduction in the technological development risks and costs.

Promoters : Private and public sector. The public sector can encourage and foster technology transfer, using classical methods to serve companies and tailoring their product. It can also initiate specific action.

Transferability : Depends on company culture and awareness as to company problems among research centres.

Experience centre : AGIT (Aachen, D); Welsh Development Agency (UK)

EU support : Under the “Innovation” Programme and the Structural Funds. First seen :

83 Prerequisites for success: · Innovation culture · Availability of funding · Capacity of identifyng company needs · Match between the offer of innovation services and the needs identified by companies · Contacts/partnerships between companies, research centres and universities · Market studies (offer/demand of technology)

· At tool level · Number of actions started · Number of patents obtained · Number of new start-ups · Number of jobs created

· Between regions · Quality of the mechanisms implemented · Network of intermediary organisations · Types of partnerships supported · Method used to finance innovation · Level of sector specialisation · Total turnover and salaries/wages paid by new companies · Number of clusters

84 TECHNOLOGY DEVELOPMENT PROGRAMME

Definition : Grants to assist with the costs of employing a full time technologist to develop a new product or process.

Advantages : Encourages companies develop new products or processes.As the technologist is a new resource the risk to companies of effort being diverted from core business is substantially less. Experience shows that a high percentage retain the technologist

Circulation :

Transferability : Very easy. Details of employment contracts depend on the Member States laws.

Experience centre : Glasgow Development Agency (UK)

Initial investment : 40.000 ECU per technologist per annum

First seen : United Kingdom : 1993

Prerequisites for success: · Contract duration : a least one year · Analysis of the business needs · Skills of the technologists

· At tool level · Number of companies assisted · Average cost per company assisted

· Between regions · Sectors where the assisted enterprises operate · Company information policy · Size of the companies assisted · Number of aids granted / Number of aid request received · Evaluation method of the files · Number of experts definitively engaged by the companies at the end of their contracts.

86 PROTOTYPE DEVELOPMENT PROGRAMME

Definition : Repayable grants to assist with the costs of developing a full scale production prototype for new and innovative products.

Advantages : · Risk to companies is substantially less, if project cannot proceed than funds become a grant. · If the project succeeds the grant is repayable on a royalty basis. This allows the public funds in the programme to be recycled.

Circulation :

Transferability : Very easy. Details of repayments and interest depend on the Member State laws.

Experience centre : Glasgow Development Agency (UK)

First seen :

Prerequisites for success: ·

87 · At tool level · Number of companies assisted · Duration of the repayment period · Number of grants repaid · Average cost per grant

· Between regions · Sectors where the grants have been given · Size of the companies assisted · SME information policy · Number of grants given / Number of files submitted · Evaluation method of the files

88 SUPPORT TO SMEs DURING OR AFTER LARGE INFRASTRUCTURE WORKS

Definition : Package of measures adopted to increase SME benefits during large infrastructure investments or to help local SMEs recycle after such operations are complete (procedures pertaining to the aftermath of large construction works in France).

Advantages : · Positive economic impact of infrastructure investment for local SMEs. · Strengthening of the fabric of local SMEs, or even acquisition of technology via cross-company co-operation or sub-contracting.

Promoters : Public sector, by means of match-making between large contractors and local SMEs

Beneficiaries : Local/regional enterprises

Circulation : Limited.

Experience centre : Nord-Pas-de-Calais RDA (F) : Channel Tunnel work site and Euralille. Caux-Bray-Bresle coastline (F): Construction sites of two nuclear power stations.

EU support : Pilot project led by DG XVI

First seen : Nord-Pas-de-Calais : Littoral Caux-Bray-Bresle :

89 Prerequisites for success: · Co-operation among large contractors to identify the needs for sub-contracting and construction scheduling · Identification and training of selected SMEs

· At tool level · Number of successful bidders · Total value of contracts awarded to regional companies · Ratio between regional contract value and total works value · Number of companies asked to tender

· Between regions · Nature / Quality of regional mechanisms · Measures implemented to support successful bidders · Method used to evaluate such mechanisms

90 INTERFIRM PARTNERSHIPS

Definition : Package of initiatives aiming at facilitating the cooperation between companies. The partnerships can be of a commercial, technical/technological or financial nature. They can be of a transnational nature.

Advantages : · Strengthening of company competitiveness. · Acquisition/transfer of know-how. · Response to the globalisation of the economy.

Promoters : Public or private sector. The public sector can act as a catalyst by encouraging or supporting SMEs in search of partners, using various mechanisms (support for participation in fairs, organisation of business conventions, e.g. Interprise, an organisation that is associated to company match-making mechanisms : BC-Net, BRE).

Intervention area : NUTS II or III, with an international cooperation component

Circulation : Rather wide.

Experience centre : ARD Nord-Pas de Calais (F), GOM (B), IMPIVA (E), ERVET/ASTER (I), CDDE Haute-Garonne (F)

Initial investment : Variable, depending on the instruments developed.

EU support : Certain actions are ERDF eligible, other initiatives are undertaken by DG XXIII.

First seen : Interprise (19..); Europartnership (19); BC-Net (1988); BRE (1973); IBEX (1994).

Prerequisites for success: · Raising company awareness

91 · Quality of the services offered · Trust among partner · Quality of preparatory audits performed in SMEs

· At tool level · Number of partnerships supported · Number of events organised

· Between regions · Diversity of tools developed · Types of events supported · Number of companies taking part in events Vs total number of companies · Methods used to raise awareness among companies and to select them · Nature of the partnerships supported

92 MEET-THE-BUYER FAIRS

Definition : Sectoral business convention in the sub-contracting sector based on in-depth analyses of large contractor requirements. During fairs, pre-arranged rendezvous are organised between SMEs and contractor (purchasing or development department executives). The IBEX concept was developed by the European Commission in 1994 with a view of SME internationalisation.

Advantages : Contacts between companies on the basis of genuine and previously identified needs. Few uninteresting contacts.

Promoters : Public sector or intermediate structures.

Beneficiaries : Sub-contracting companies

Intervention area : Transnational cooperation

Circulation : Limited. Relatively new concept.

Transferability : Depends on sector structure and relations between large contractors and sub-contractors.

Experience centre : Torino (Vetis, car industry) Toulouse (Aeromart, aeronautics and SIAM, mutli-sector)

Initial investment : At least ECU 450,000 to 500,000.

EU support : In the sub-contracting sector, under DG XXIII's policy in favour of SMEs or under the Regional Policy (DG XVI). In progress: the concept of innovation business fair.

First seen : SIAM : 1988 - IBEX : I994 - VETIS Torino : 1994 - IBEX Aeromart Toulouse : 1996 Prerequisites for success: · Commitment by large contractors · Analysis of sub-contractor capability

93 · Tight selection of participants · Analysis of large contractor requirements

· At tool level · Number of participants · Participant satisfaction · Participant willingness to participate in such fairs in the future · Revenue (participation fees) · Number of contracts signed · Number of contacts concluded at the fair and pursued afterwards

· Between regions · Number of fairs organised · Number of fairs of which local SMEs have been made aware · Degree of local/regional public support to SME participation

94 COMPANY CLUBS

Definition : Informal association of heads of companies willing to exchange experiences in business matters, e.g. regional exporters clubs, young businessmen clubs, etc.

Advantages : Networking of know-how, circulation of information on good practices.

Promoters : Public, private or a mix thereof. The public sector may play a substantial role as a director or catalyst by providing free secretarial management for such clubs.

Circulation : Wide.

Transferability : Unlimited, but depends on motivation among heads of companies.

Experience centre : Nord-Pas-de-Calais RDA(F), Setúbal RDC (P), Auvergne RDA (F), CDDE Haute-Garonne (F) Export Kempen (B) : Private initiative

Initial investment : Low financial commitment. Mainly requires awareness and mobilisation among companies.

EU support : None.

First seen :

Prerequisites for success: · Quality of contacts among members

· At tool level · Number of member businessmen · Diversity of interests within and among clubs · Number of meetings · Rate of member participation in events organised by their club

· Between regions · Number of clubs · Topics of interest for club members · Nature of joint actions · Method used to raise awareness among companies · Role of public or intermediate structures · Leadership within clubs

96 ONE-STOP SHOPS FOR SME CREATION

Definition : A place where heads of future SMEs can perform all administrative steps required to set up their company and receive advise to do so efficiently. Basic advice and information on available financial support can also be found. The idea of a virtual one-stop shop is in progremm. The information on the formalities and procedures to carry out in order to set up an enterprise will be gathered on a web site. The site includes the different elements of the steps, e.g. the form to be filled in or a model, the documents to be enclosed to the file etc. as well as the details of the competent institutions.

Advantages : Simplification of administrative procedures. Improved environment to favour company start-ups.

Beneficiaries : enterprise creators

Circulation : rather limited

Transferability : Depends on public authorities and administration willingness.

Experience centre : Virtual site : Flanders (B)

EU support : Only “moral”, in recommendations sent to the Members States with regards to the administrative procedures.

First seen :

Prerequisites for success: · Decentralisation of certain administrative services · Concentrating all administrative services in one location

97 · Quality of tailored support offered to companies

· At tool level · Average time required to perform administrative procedures · Average cost of administrative procedures

· Between regions · Number of one-stop shops per inhabitant · Number of one-stop-shops per km² in the region · Nature of the administrative steps that can be fulfilled in one-stop-shops

98 ONE-STOP INFORMATION / ADVICE SHOPS FOR SMEs

Definition : Resource or relay centre where companies can procure information on available subsidies or other issues they are facing. Shop managers do not necessarily have to be able to answer every single question. Instead, they should be an access point to a network of advisors.

Advantages : Easier administrative procedures and better access to information

Information area : NUTS IV

Circulation : Rather wide. Wider at any rate than one-stop-shops for start-ups.

Transferability : Depends on co-operation among actors and on co-operation from the authorities to ensure the future of this type of support structure.

Experience centre : Great Western Enterprise (UK), Euro-Info-Centres

EU support : Euro-Info-Centres are supported by the EU

First seen : EIC : Since 1987

Prerequisites for success : · Quality of the services offered · Institutional recognition of the centres

99 · Commitment by the network – of which the shop is the resource centre – to provide the support expected by SMEs

· At tool level · Average delays to answer questions · Number of questions asked per month · Number of support structures involved

· Between regions ·

100 DATABASES / DIRECTORIES OF COMPANIES, SUBSIDIES OR PROFESSIONAL LAND/BUILDINGS

Definition : A tool to identify and inventory companies in a given geographical area, support available to companies in that area, and possibly available industrial land and buildings.

Advantages : · Simplifies the search for and promotion of company partnerships · Advertises the intermediate structure that owns the tool · Possibility to specialise per sector or structure (e.g. for subcontracting)

Promoters : Public / private sectors

Beneficiaries : Companies, intermediate structures

Intervention area : NUTS III or II

Experience centre : GOM Vlaams-Brabant (B), IGRETEC (B) : Guide to SME aids on Internet and CD-Rom

EU support :

First seen : Prerequisites for success : · Notoriety of the contracting organisation · Completeness / credibility of the database

101 · Frequent updates

· At tool level · Percentage of companies included · Means of circulation · Number of requests for information

· Between regions · Number of databases · Nature of the databases · Database support · Marketing method

102 TECHNOLOGICAL WATCH

Definition : A system for early and exhaustive detection of potential innovation in a given sector or field.

Advantages : · Fast circulation of information · Pooling of resources

Promoters : Private and public sectors

Experience centre : Technopol Brussel-Bruxelles (B)

EU support :

First seen :

Prerequisites for success : · Access to the best and most relevant sources of information · Proper vulgarisation of information · Capacity, among companies, for using the information

· At tool level · Number of targets · Relevance of the sources · Number of sources consulted · Frequency of circulation

· Between regions · Number of tools · Sectors covered · Nature of the “after-sales” services

104 ECONOMIC INTELLIGENCE

Definition : Series of actions whereby one or more intermediate organisations provide the right piece of information to the right person at the right moment, so that he/she can make the right decision. This involves co-ordinated action to seek, process and circulate information, as well as protecting information that is considered sensitive by companies. Economic intelligence should make it possible for companies to innovate as a way of reacting to changes in demand or market trends.

Advantages : · Relevance of the services offered to companies. · Consolidation of companies.

Promoters : Public sector / Private sector, mainly consultants.

Beneficiaries : Enterprises, particularly the SMEs

Circulation : Still limited.

Transferability : Easy.

Experience centre : Auvergne (F)

EU support : Indirect.

First seen : 1995

Prerequisites for success: · Access to useful information via databases, communication networks · Company awareness / training

105 · Good understanding of the company information needs

· At tool level · Number of companies supported · Number of databases exploited · Lead times to circulate information · Ratio between useful information / information given

· Between regions · Information research and analysis methods · Targeting of companies · Methods used to circulate information to companies

106 JUST-IN-TIME DELIVERY

Definition : Industrial production organisation system whereby sub-contractors deliver their production in real time. In some cases, large contractors demand that their sub-contractors locate near their production units.

Advantages : For companies : compression of production costs (no storage). For regions : development of sector networks and installation of sub-contractors in the vicinity of large contractors. Disadvantages : risk of relocation, vulnerability to market versatility or structural sector adjustments.

Promoters : Private sector. The public sector can favour the emergence or strengthening of networks of sub-contractor SMEs to provide flexible answers to the requirements of large contractors.

Circulation : Increasingly widespread under the pressure of industrial major contractors

Transferability : Depends on company versatility and on their capacity to invest, and sometimes on large contractor leverage.

Experience centre : Welsh Development Agency and its “Sourcing Wales” programme (UK) Mercedes Smart plant

EU support :

First seen : Early '90s under the impulse of Japanese companies installed in Europe.

107 Prerequisites for success: · Capacity to mobilise local SMEs · Local SME (management) capacity to adapt · Quality of local products · Good coordination with the sub-contracting sector.

108 ISO 9000 AND ISO 14000 CERTIFICATION

Definition : International standards specifying minimum requirements for individual companies with a view to preventing major production or design failures (ISO 9000) and to ensure environmental sustainability (ISO 14000).

Advantages : Definition of operating standards aimed at eliminating defects, thereby curtailing costs and increasing company competitiveness (ISO 9000) or at ensuring environmental protection (ISO 14000). Risk : companies leaving the area for fear of environmental obligations.

Promoters : Private sector. The public sector can raise company awareness and possibly help them undertake a quality process.

Circulation :

Transferability : Depends exclusively on company management motivation.

Experience centre : Shannon Development (IRL); Deux-Sèvres Développement (F) and approx. 10 French RDAs; WMEB (UK)

Initial investment : Around ECU 15,000-20,000 for certification. Consultancy costs are variable and can sometimes be internalised.

EU support : Indirect, may include, e.g. training within the framework of the Leonardo Programme and the Euromanagement programme which cofinances the costs of preparing the certification.

First seen : Since 1985 under the impulse of Japanese companies for the ISO 9000 standard 1996 for ISO 14000

Prerequisites for success: Mobilisation of company managers and endorsement by the entire company staff.

· At tool level ·

· Between regions · Number of companies that are either certified or aware of the scheme · Method used to raise awareness among companies · Average delay for certification

Bibliographical reference : EURADA Euro-Report Nr 6 : “RDAs and ISO 9000"

Contact : Eurada - Avenue des Arts, 12 - B-1210 Bruxelles Tel. +32 2 218 43 13 - Fax. +32 2 218 45 83 - E-mail : [email protected]

110 TOTAL QUALITY MANAGEMENT

Definition : Internal company organisational structure aimed at maximising customer satisfaction. Such plans are often implementation after companies are ISO 9000 certified.

Advantages : Improved company competitiveness.

Promoters : Private sector. Public authorities can raise the awareness of companies as to this concept and possibly help / advise them in such plans.

Transferability : Unlimited, but depends on interest and motivation at company management level.

Experience centre : Shannon (IRL)

EU support : Indirect

First seen :

Prerequisites for success: · Commitment by company managers · Thorough knowledge of ISO 9000

· At tool level ·

· Between regions · Number of companies having embarked on a Total Quality Management exercise · Method used to raise company awareness · Existence of company clubs

112 BENCHMARKING

Definition : Management tool whereby a company compares its performance to the best company in the sector / world.

Advantages : · Improved company competitiveness · Organisational changes in companies

Promoters : Private sector, even though the concept is slowly developing in the public sector, which can also undertake to raise private company awareness as to the existence of this management technique.

Beneficiaries : Enterprises. Trial for the public authorities and the intermediary structures.

Circulation at regional level : Variable. Concept developed in the Anglo-Saxon world.

Transferability : No problem, except access to information.

Experience centre :

EU support : A few pilot projects have been initiated by DG III.

First seen : Early '90s.

Prerequisites for success: · Commitment by top management in companies · Access to comparable data from other companies

113 114 FINANCIAL ENGINEERING

Definition : A series of financial instruments implemented in order to strengthen the income side of company balance sheets or to diversify the offer of capital – compared to mainstream financial institution and/or bank offer. It is a generic word used to designate financial instruments such as venture capital, seed capital, joint guarantees, guarantee funds, informal venture capital, leasing, factoring, interest-free loans, etc.

Advantages : Support for start-ups or growth.

Promoters : Private or public sector, the latter promoting local financial services or brokering regional development. It also often has to make up for the absence of initiative or interest at private sector level.

Beneficiaries : Enterprises, intermediary structures

Circulation : Varies across Member States. Certain forms of financial engineering are more developed in some Member States than in others.

Transferability :

Experience centre : Kera Ltd. (FIN); Greater London Enterprise (UK); AGATE (F)

EU support : eligible to the ERDF and sometimes to other pilot programmes.

First seen : Kera (FIN) : in 1971 at regional level Prerequisites for success: · Critical mass of available capital · Risk aversion by mainstream financial institutions

115 · Businessmen have to accept the idea of opening up their capital to third parties

· At tool level · Number of companies supported · Volume of capital made available · Return on investment as perceived by financial institutions · Average duration of shareholding

· Between regions · Diversity of financial offer · Complementarity of financial instruments · Criteria for eligibility to shareholding as identified by financial institutions · Public Vs private sector role · Match between offer of capital and financial needs of SMEs · Ways out of shareholding for financial institutions · Mix of financial/management consulting products offered by financial institutions

Bibliographical references : Guide to Financial Engineering Techniques used by the Commission in the Context of Regional Policy - DG XVI of the EU

116 SEED AND VENTURE CAPITAL

Definition : Equity participation in a company during start-up (seed capital) or in a rapidly growing company (venture capital). Certain funds are specialised in high-tech or new technology companies.

Advantages : Support to start-ups.

Promoters : Public or private sector. Public sector contribution, often in partnership with the private sector, is aimed at making up for the private sector's unwillingness to take risks, be it because of the region or type of companies involved.

Circulation : Variable. Such funds are especially active in Northern European countries and financial centres.

Transferability : Depends on entrepreneurial spirit and the capacity to mobilise local venture capital or attract it in the region.

Experience centre : West Midlands Enterprise Board and Lancashire PLC (which in the meantime became Enterprise PLC) (UK) for the public sector CDDE Haute-Garonne (F) : Conducting files 3i for the private sector Kera Ltd. (FIN) develops regional venture capital funds in technological centres

EU support : ERDF eligible. Seed Capital Funds have been co-financed under a pilot action of the Community Policy in favour of SMEs and the Regional Policy. The EIF also finances venture capital funds through the ITEC programme and has the EFT Start-up programme as a project for 1998.

117 First seen :

Prerequisites for success: · Risk assessment / analysis by financiers · Quality of public/private partnerships · Way out of the capital of supported companies

· At tool level · Number of companies supported · Average investment per company supported · Return on investment · Average cost of project analysis

· Between regions · Number of operators present in a region · Volume of funding mobilised · Quality of the mechanisms made available to supported companies · Strategy adopted by public/private operators · Nature of public involvement

Useful address : EVCA - European Venture Capital Association - Minervastraat 6 - Box 6 - B-1930 Zaventem Tel. + 32 2 715 00 24 - Fax. +32 2 725 07 04 - E-mail : [email protected]

118 LOCAL VENTURE CAPITAL or LOCAL INVESTMENT FUND

Definition : Acquisition of a stockholding position in a company for an average period of five to seven years. The capital available in the fund is collected from local organisations (financial institutions, large companies, insurance companies or provident societies).

Advantages : Supply of start-up or growth capital for local companies.

Promoters : Public authorities which play an important role as they manage the fund and stimulate its shareholders.

Beneficiaries : Companies. The authorities have a tool at their disposal to supplement company capital and to leverage access to bank loans.

Intervention layer : NUTS III

Transferability : Depends on the availability of investors

Experience centre : AGATE : Filtarn (F)

Initial investment : AGATE : ECU 172,500 in 1990 supplied by 9 shareholders. Average stake : ECU 40,000.

EU support : ERDF Eligible

First seen :

Prerequisites for success: · Quality of the public/private partnership · Willingness among companies and financial institutions · Mechanism to terminate stockholding position

· At tool level · Number of companies supported · Average investment per supported company · Return on investment · Average feasibility costs

· Between regions · Number of operators in the region · Volume of available capital · Quality of the support services made available to companies · Public/Private operator strategies · Nature of public intervention

120 INFORMAL VENTURE CAPITAL / BUSINESS ANGELS

Definition : Equity participation in a start-up by a wealthy private investor who, in addition to own capital investment, is willing to share his experience in management with the company.

Advantages : Start-up capital for SMEs.

Promoters : Private or public sector. The public sector can play an important role by encouraging business angel vocations or by helping set up a regional network of business angels. The regional network aims to raise the awareness of the potential Business Angels and to to put business angels in contact with entrepreneurs. The tools implemented are information letters, investment forums etc. Certain organisations are specialised in information circulation on Internet.

Beneficiaries : Nascent enterprises or young enterprises growing rapidly

Circulation : Variable, essentially in the central part of Northern Europe (United Kingdom, Finland, Netherlands).

Transferability : Depends on the availability of capital. The absence of a legal framework constitutes a substantial impediment to the development of local business angel networks.

Experience centre : LINC (UK), South West Investment Group (UK), SITRA (FIN)

Initial investment : Variable, from ...

EU support : Within the framework of the Community policy in favour of SMEs, DG XXIII has co-financed EURADA's feasibility study on a European network of business angels. DG XIII calls for tenders under the Innovation programme are open to business angel development projects. First seen :

121 Prerequisites for success: · Company culture in a region · Quality of company business plans · Faith in the mechanisms used to put business angels in contact with businessmen · Way out of company capital for business angels · Organisation at regional level of a network enabling the business angel and the entrepreneurs to meet

· At tool level · Number of companies supported · Average investment per company supported · Return on investment · Average cost of project analysis · Number of active Business Angels

· Between regions · Number of operators present in a region · Volume of funding mobilised · Quality of the support mechanisms made available to companies · Strategy adopted by public/private operators · Nature of public involvement · Regional networking of business angels · System whereby potential business angels can be made aware of their role and motivated to fulfil it

Bibliographical references : European Business Angels Network : Dissemination Report on the Potential for Business Angels Investment and Network in Europe. 1998. Issued by EURADA and South West Investment Group

Useful address : EURADA - 12 avenue des Arts - B-1210 Bruxelles Tel. +32 2 218 43 13 - Fax. +32 2 218 45 83 - E-mail : [email protected]

122 INTEREST-RATE SUBSIDISED LOANS

Definition : Reduced p interest rates on bank loans through subsidies granted by public or semi-public organisations.

Advantages : · Reduced interest payments for companies · Leverage

Promoters : Public and private sectors. The public sector subsidises loans granted to companies by the traditional private banking sector.

Circulation : Large

Transferability : Rather easy

Experience centre : Kera Ltd (FIN)

Initial investment : Variable

EU support : Operation carried out by the EIB for the European Commission.

First seen : EIB in 1993

Prerequisites for success : · Marketing of this tool with SMEs · Minimum 2p reduction · Duration of the loan and subsidy

· At tool level · Number of loans granted · Available amounts

· Between regions · Subsidy characteristics · SME characteristics · Condition of eligibility to such loans · Types of banks

124 MICRO-CREDIT SCHEMES

Definition : Mechanism whereby small sums of money are lent to individuals belonging to target groups (women, youth, unemployed, ethnic minorities) so as to enable them to set up their own company (generally one-person companies). No total guarantee is generally required for the grant of this type of loan.

Advantages : New companies, new jobs, leverage.

Promoters : Public sector, as a substitute for the lack of interest among mainstream institutions for such customers

Beneficiaries : Enterprise creators

Intervention area : NUTS IV or III, even II

Circulation :

Transferability : Quasi-unlimited. The system was largely disseminated in the PHARE countries, but with limited performances.

Experience centre : ALMI (S) : for women creating enterprises WMEB (UK) : for migrants and ethnic minorities Kera (FIN) : for micro-enterprises in creation or already existing. A special fund for businesses created by women is also operational

EU support : Under experimental projects such as ILE-Women and through the Structural Funds

First seen : Prerequisites for success: · Entrepreneurial spirit among the population in general · Complementarity of available support mechanisms

· At tool level · Number of loans granted · Average amount per loan · Types of mini-company managers · Average duration of reimbursement plans · Average interest rates · Rate of start-up follow-up

· Between regions · Amounts mobilised · Types of target groups · Support mechanisms for new businessmen · Synergy between the various types of financial support · Criteria of eligibility to such loans · Leverage potential of the loans

126 LOANS WITHOUT INTEREST AND/OR GUARANTEE

Definition : Financial support granted free of charge to companies without guarantees. In France, this type of loan is granted by local initiative platforms. The loans amount on average to 15,000 to 20,000 ECU for a three- or four-year period. The available funds often come from regional enterprises. The loan is often accompanied by a sponsoring / mentoring action in favour of the entrepreneur who has benefitted from the loan. In Finland and Sweden, this type of middle-term loan is guaranteed by personalities.

Advantages : Capital is made available at low cost and without guarantee to enterprising people.

Promoters : Private sector, in partnership with the public sector.

Beneficiaries : Enterprise creators, sometimes also for existing enterprises.

Circulation : Essentially in France.

Transferability : Unlimited, but depends on the availability of private capital.

Experience centre : Sarthe Economic Expansion Committee (F), ARD Nord-Pas de Calais (F) trhough the various local initiative platforms; AGATE (F) : Initiatives tarnaises; Private sector : Nord-Entreprise (F); Kera (FIN) and ALMI (S) : in the form of investment loans or other special loans

Initial investment : 130.000 ECU for AGATE (F). Cost per loan granted by AGATE : 6.850 ECU.

EU support : ERDF eligible. The EIF is developing a guarantee programme.

127 First seen : Nord-Entreprise : Private sector in 1987 AGATE : Initiatives tarnaises in 1988

Prerequisites for success: · Availability of capital · Risk assessment · Complementarity of financial instruments

· At tool level · Number of companies supported · Average amount of loans · Rate of company survival after three and five years · Average duration of loans · Average leveraging of loans · Number of financiers

· Between regions · Number of existing funds · Criteria of eligibility to such loans · Composition of Fund Management Councils · Volume of available capital · Leverage of the loans

128 JOINT-GUARANTEE SOCIETIES

Definition : Financial technique which consists in grouping industrial or commercial companies in a joint-guarantee society for the purpose of allowing its members access to capital through bank loans guaranteed by a third party.

Advantages : · Easy access to credit for SMEs · Reduced financial burden for companies

Promoters : Public sector in co-operation with the private sector.

Circulation : Increasing

Transferability :

Experience centre :

EU support : ERDF eligible. Was also the subject of a pilot project co-financed by DG XXIII.

First seen :

Prerequisites for success: · Critical mass of companies taking part in the initial stages of the joint-guarantee society.

· At tool level · Number of loans granted · Amounts of the loans · Capital available to guarantee the loans · Number of members in the joint-guarantee society · Cost for companies

· Between regions · Number of joint-guarantee societies per 1,000 companies · Number of members of the joint-guarantee society Vs total number of companies in the region

130 SOCIAL VENTURE CAPITAL

Definition : Financial organisation specialising in investments related to sustainable development, social economy, social development, education, health, culture, etc.

Advantages : · A remedy to the lack of investment by traditional financial institutions in these sectors. · New jobs · Support for the endogenous potential

Promoters : Private sector

Beneficiaries : Job creators

Intervention layer : NUTS III or II

Circulation : Centre North of Europe, still low.

Transferability : No problem

Experience centre : Triodos Bank (B, NL, UK); Ökobank (D)

EU support : Third employment circuit

First seen : Mid-1980s. Windmill Energy Fund by Triodos in 1993

Prerequisites for success: · Availability of savings · Increased awareness among participants as to the social use made of their money

· At tool level · Amounts collected · Number of supported projects · Financing granted per project · Return on capital · Number of new jobs

· Between regions · Number of funds set up · Specific areas of intervention by the funds

Useful Address : INAISE - 40 rue d’Arlon - B-1000 Bruxelles - Fax. +32 2 234 57 97

132 SOLIDAIR SAVINGS AND LOANS BANKS/ASSOCIATIONS

Definition : Financial organisation asking private individuals to invest part of their savings in small local companies that are not eligible to mainstream bank loans.

Advantages : Helps companies during start-up.

Promoters : Private sector and associations.

Beneficiaries : Enterprise creators, generally unemployed people

Circulation : Limited. Essentially in The Netherlands and Belgium.

Transferability : No problem.

Experience centre : Gent (B), Roubaix (F)

EU support :

First seen : Early in 1990. First instance in France in mid 1997.

Prerequisites for success: · Substantial private savings in the region · Awareness of the social value of savings · Strong associations

· At tool level · Number of companies supported · Average amount of loans · Rate of company survival after three and five years · Average duration of loans · Average leveraging of loans · Number of financiers

· Between regions · Number of existing funds · Criteria of eligibility to such loans · Composition of Fund Management Councils · Volume of available capital · Leverage of the loans

134 THIRD-PARTY FINANCING

Definition : A technique which consists in having the engineering or material supplier finance the investment. It is especially used to finance investment in energy savings and new performing technologies.

Advantages : · Improves company performance without hurting reserves. · In the long-run, strengthens competitiveness.

Promoters : Private sector

Intervention area : NUTS III or II and even IV

Circulation : Essentially in the central part of Northern Europe.

Transferability : Depends on company awareness of and interest in the concept.

Experience centre :

EU support : Under pilot projects, namely in the energy and innovation sectors.

First seen :

Prerequisites for success: Critical mass of available capital.

· At tool level · Number of operations carried out · Average rate of support · Average duration of support

· Between regions · Number of operators · Characteristics of the sectors covered

136 NEW MARKETS - EASDAQ - NASDAQ

Definition : Variation on the classical stock exchange model to provide access to quotation for fast-growing companies needing to consolidate their capital. This is one of the techniques used to allow venture capital fund operators a way out of SME shareholding.

Advantages : · Allows companies access to capital. · Substitute for regional stock exchanges.

Promoters : Public / Private

Beneficiaries : Enterprises with a strong growth

Circulation : Only in financial capitals for new markets (irrelevant for NASDAQ and EASDAQ, as they are virtual stock exchanges).

Transferability : Limited by the required critical mass of businessmen willing to enter the stock market and therefore prepared to open their capital to third parties.

Experience centre :

EU support : EASDAQ came as a result of EVCA's feasibility study carried out with the financial support of the European Union's DG XXIII within the framework of the Community policy in favour of SMEs.

First seen : NASDAQ : EASDAQ : 1996

Prerequisites for success: · Credibility of companies entering the stock market · Critical mass of investors and companies · Acceptation by the entrepreneurs to share the management

137 Useful address : EASDAQ 54 Rue des Colonies - Bte 15 B - 1000 Bruxelles Tel. +32 2 227 65 20 - Fax. +32 2 227 65 67

138 FINANCIAL MEDIATION

Definition : Advice given to SMEs by intermediary organisations on how to approach financial institutions when seeking loans or venture capital. Intermediary organisations have information on local financial institution practices and advise SMEs according to their needs.

Advantages : The costs incurred by banks when analysing SME projects are reduced.

Circulation :

Experience centre : GOM Vlaams-Brabant (B)

EU support :

First seen : 1995/1996 in Vlaams Brabant (B)

Prerequisites for success: · Access to information on financial institution credit policies · Privileged relationship between financial institutions and intermediary organisations · Quality advice given to SMEs

· At tool level · Number of participating financial institutions · Number of supported companies

· Between regions · Number of loans actually granted Vs number of supported companies · Number of loans actually granted Vs number of participating financial institutions · Average amount per loan

140 INDUSTRIAL SITE RECONVERSION PLANS

Definition : Series of industrial or social actions undertaken to cope with the closing down of an industrial production unit or site.

Advantages : · Reducing direct and indirect unemployment caused by permanent plant closures. · Creation of alternative activity. · Implementation of new local/regional development tools. · Environmental improvement.

Promoters : Public authorities in terms of industrial site redeployment. The private sector regarding planned redundancy schemes, and possibly redeployment – namely using the services of reconversion companies.

Beneficiaries : Enterprises, local and regional authoritis within the framework of urban renovation actions

Intervention area : NUTS IV, with possibility of drawing plans at NUTS level III or II

Circulation : Wide

Transferability : No major problem, but dependent upon (a) available public money, (b) flexibility in the design of new development tools, e.g. subsidies for start-ups, and (c) social consciousness in the company that decided to shut down the site in the first place.

Experience centre : Lancashire Enterprises Ltd. (UK); Great Western Enterprise (UK); IDELUX (B)

EU support : Generally limited, because of rigid geographical constraints imposed by the ERDF and because of multi-annual intervention planning.

141 First seen :

Prerequisites for success: · Mobilisation of public actors · Awareness of the private sector as to its responsibility

· At tool level · Number of jobs created

· Between regions · Attitude of companies shutting down units · Attitude of the Trade Unions · Nature of reconversion subsidies

142 RECONVERSION COMPANIES

Definition : Organisation set up by a private company to help a region redeploy after production unit close-downs in an industrial sector that was particularly important for a region.

Advantages : · Making available of financial resources for new activities. · Stimulus for start-ups, sometimes by taking the form of spinoffs or management buy-outs (generally for part of the initial activity).

Promoters : Private sector, sometimes public sector

Circulation : Rather wide in some countries, especially France and the United Kingdom.

Transferability : No major problem, except that companies need to be really committed.

Experience centre : Saint-Gobain and EDF (F), British Steel (UK), British Coal (UK), LIM (B) for the public sector.

Initial investment : Variable.

EU support : None.

First seen :

143 Prerequisites for success: · Company culture in the region · Degree of motivation among mother companies to set up reconversion companies

· At tool level · Number of companies supported · Number of jobs created · Cost per job created · Available/mobilised capital · Rate of company survival after three and five years · Average subsidies

· Between regions · Number of active reconversion companies · Reconversion company set-up mechanisms · Time of reconversion company creation · Partnership with other intermediate structures · Legal status of reconversion companies · Criteria for eligibility to subsidies · Degree of independence of reconversion companies

144 HUMAN RESOURCES SUPPORT MEASURES

Definition : A series of mechanisms used to train, re-train or reintegrate workers in the labour market.

Advantages : · Improved manpower skills · Reduced unemployment rate

Promoters : Public sector, associations, private sector

Beneficiaries : Workers and the unemployed

Intervention area : NUTS IV to II

Circulation : Wide

Transferability :

Experience centre :

EU support : Eligible to the Structural Funds as well as a number of pilot projects

First seen :

Prerequisites for success : · Match between actions and labour market · Quality of the services offered

· At tool level · Number of beneficiaries · Nature and range of mechanisms

· Between regions ·

146 TERRITORIAL EMPLOYMENT PACTS

Definition : Regional strategic plan against unemployment in which are involved all the key actors of local/regional employment diagnosis and those who implement strategies to break public/private sector isolation.

Advantages : Consensus on the action to be taken.

Promoters : Public sector, in co-operation with both sides of industry.

Beneficiaries : Unemployed people

Intervention area : NUTS III and even IV

Circulation : At European Union level, experimental stage involving more than 50 regions.

Transferability : Unlimited.

Experience centre : Andalucia (E), Deux-Sèvres (F)

EU support : ECU 200,000 on an experimental basis for technical assistance.

First seen : 1996/1997 at European Commission level.

Prerequisites for success: · Strengthening of local/regional partnerships · Innovative approach to the labour market · Good-quality analysis and thinking process in drafting employment pacts

· At tool level · Number of jobs created · Volume of funds mobilised

· Between regions · Membership of associated partnerships · Method for analysing and selecting priority action

148 LOCAL EMPLOYMENT INITIATIVES

Definition : Action taken at local level to stimulate job creations.

Advantages : · Local service. · Consideration for local situations. · Feeling of ownership among local actors. · Job creations, attempts to resolve unemployment.

Promoters : Public sector and associations, sometimes with partnerships involving the private sector.

Beneficiaries : Unemployed people, enterprise creators, associations

Intrevention area : NUTS IV or III

Circulation : Rather wide.

Experience centre :

EU support : Under the Structural Funds (ERDF, ESF, LEADER, ...)

First seen :

149 Prerequisites for success: · Mobilisation of local resources · Leadership · Endorsement of such structuring projects by local actors

· At tool level · Number of jobs created · Volume of funds made available

· Between regions · Type of local partnership · Number of initiatives Vs number of local authorities · Complementarity with Structural Funds intervention (percentage of total funds allocated to the region)

150 VOCATIONAL QUALIFICATION OBSERVATORY

Definition : Organisation in charge of identifying vocational training requirements in a region or in a number of industrial sectors that are significant in a region.

Advantages : · Labour is available. · Match between regional vocational training offer and company requirements.

Experience centre : ORFQE (ARD Nord-Pas de Calais, F); Wallony (B)

EU support : Eligible to ERDF. A number of studies have also been co-financed by the European Union's DG XXII (“Education and Vocational Training”).

First seen : ORFQE : 19..; Wallony : 1998

Prerequisites for success: Partnership companies and vocational training centres

· At tool level · Number of partner companies · Number of trainees · Frequency of analyses

· Between regions · Number of sectors analysed per year · Partnership / flexibility with training centres · Number of programmes approved · Types of sectors analysed

152 SOCIAL ECONOMY INITIATIVE

Definition : A series of actions undertaken by associations and foundations, co-operatives and mutual assocations to reintegrate workers who have left mainstream employment, in the labour market.

Advantages : reintegration of the unemployed and other workers excluded from the labour market

Promoters : Associations, mutual associations, co-operatives and foundations

Beneficiaries : The unemployed

Circulation :

Transferability :

Experience centre :

EU support : Was the aim of the ERGO programme; Eligible under the ESF

First seen :

Prerequisites for success :

· At tool level · Number of individuals supported · Cost per individual

· Between regions · Types of actors · Number of initiatives per inhabitant

154 INSERTION COMPANIES

Definition : Companies that specialise in recruiting long-term unemployed workers or people excluded from the labour market, with a view to ensuring in-service re-qualification (relief work). The insertion companies enable the unemployed people to reenter the economic active life on a long-term basis.

Advantages : · Positive impact on long-term unemployment rate · Acquisition of skills by the long-term unemployed

Promoters : Private or Public. The authorities can play an important role in this field by stimulating the creation of such companies at public service level or by supporting the private sector.

Circulation : Generalised in a number of Member States, e.g. France and the United Kingdom.

Transferability : Depends on the cultural context and on the motivation of a number of operators.

Experience centre :

EU support : Under the European Social Fund (ESF). the ERGO programme had publicised the concept.

First seen :

155 Prerequisites for success: · Mobilisation of companies or associations · Support to individuals

· At tool level · Number of individuals in training · Number of people who have found a new job · Average duration of employment · Cost per job created

· Between regions · Number of insertion companies set up · Nature of company activities · Company solvency · Capital mobilised · Impact on unemployment figures · Identification of target groups employed by companies · Support measures for workers

156 EMPLOYER ASSOCIATIONS

Definition : Association of employers to share seasonal workers or common skills.

Advantages : · New jobs · More stable jobs

Promoters : Private sector, sometimes with public support

Beneficiaries : Companies and workers

Intervention layer : NUTS III

Circulation : Weak because of inflexible labour regulations

Transferability :

Experience centre :

EU support :

First seen :

Prerequisites for success: · Willingness among companies · Adjusted legal framework

· At tool level · Number of new jobs · Operating costs

· Between regions · Type of labour required · Nature of employment contracts

158 JOB AND SERVICES VOUCHERS

Definition : Mechanism whereby administrative procedures are simplified for households wanting to hire house staff (in France) or for individuals or legal persons wanting to recruit small-time help (housecleaning, child care, gardening, etc.).

Advantages : · Simpler administrative procedures · New jobs

Beneficiaries : The long-term unemployed

Intervention layer : NUTS IV

Circulation : Rather wide in France and Belgium

Transferability :

Experience centre : Bretagne, Haute-Loire (F); local employment agencies in municipalities (Agences Locales pour l’Emploi, B)

EU support : Through the New employment sources and the ESF

First seen : 1995 in Belgium

Prerequisites for success: · Attractiveness of the system for potential employers · Availability of labour Benchmarking features

159 · At tool level · Number of new jobs · Number of working hours per job

· Between regions · Number of workers involved in the scheme · Number of vouchers purchased per 1,000 inhabitants · Voucher price

160 SECOND-CHANCE SCHOOLS

Definition : Plan aimed at reintegrating youth falling out of school in the world of learning/training.

Advantages : Learning through work and return to the educational system.

Promoters : Public sector, with private sector support.

Circulation : Pilot stage at European Union level, involving around ten cities.

Transferability :

Experience centre : Marseille (F); Setúbal (P)

EU support : Pilot project supported by DG XXII (“Education and Vocational training”).

First seen : In The Netherlands : At European Union level : 1996

Prerequisites for success: Involvement of companies and local authorities.

· At tool level · Number of individuals helped · Number of companies involved · Job retention / company survival · Cost per trainee

· Between regions · Quality of public/private partnerships · Target group characteristics

162 OUT PLACEMENT

Definition : Personalised support by companies to workers in need of a new job in case of restructuring.

Advantages : Avoids massive unemployment in case of redundancy schemes.

Promoters : Private sector, both at decision-making and execution level.

Beneficiaries : Workers threatened by unemployment

Circulation :

Transferability : Depends on the redundancy scheme included in the restructuring plan

Experience centre :

Initial investment : Depends of the magnitude of the redundancy plan, and hence of how many new jobs have to be found.

EU support :

First seen :

Prerequisites for success: Commitment at company management level

· At tool level · Number of workers having found a new job as a percentage of total redundancies · Average duration of a worker's search for a new job · Cost per worker

163 · Between regions · Frequency of use of this technique · Role of the authorities · Budgets mobilised

164 MANAGEMENT BUY-OUT

Definition : Operation whereby the staff of a company is invited to buy the capital and assumes control of a company in need of restructuring.

Advantages : Avoids shut-downs. Brings decision-making back in the region.

Promoters : Private sector. Public authorities sometimes come in support of workers, especially in terms of access to capital.

Beneficiaries : Workers threatened by unemployment

Circulation : Essentially in the central part of Northern Europe.

Transferability : Depends on entrepreneurial spirit and access to capital.

Experience centre :

Initial investment : Variable. Depends on company value.

EU support : None.

First seen :

Prerequisites for success: · Workers commitment · Availability of capital

· At tool level · Number of jobs saved · Number of workers involved in the operation ·

· Between regions · Frequency of use of this technique · Role of the authorities · Budgets mobilised · Mobilisation of other resources

166 GLOBALISATION OF THE ECONOMY

Definition : Package of measures take by companies with a view to standardising production lines as much as possible and so being able to assemble or manufacture products in areas with the best cost/efficiency ratio.

Challenges : Conservation of the regional fabric of companies capable of adjusting to a changing and increasingly competitive environment.

Potential : Improvement of company competitiveness and profitability.

Dangers : · Product unit relocation · Weakening of regions with many mobile or labour-intensive companies.

Role of the authorities : The authorities have to take steps to limit the impact of the globalisation of the economy on their region. To do so, they have to either deeply anchor subsidiaries of multinationals in their region or, through improved sub-contracting relationships, attract high added-value activities such as research laboratories

167 168 INTERNATIONALISATION OF TRADE

Definition : Action taken to allow SMEs to draw profit from the globalisation of the economy. Internationalisation means more than selling products on new markets, as it can also include licensing, technology transfer, joint ventures, etc.

Challenges : To help companies with a potential to explore foreign markets with a view to maximising their growth and ensure their survival.

Potential : Economic growth, job retention – and even creation – within SMEs.

Dangers : Recession or stagnation, loss of competitiveness among companies excluded from this process.

Role of the authorities : Awareness, training and support measures for companies

169 170 SUSTAINABLE DEVELOPMENT

Definition : A thinking process and series of actions carried out to favour environment-friendly economic growth.

Challenges : Change in social and economic actor behaviour.

Potential : Protection of the environment and natural resources. Development of new environmental protection activities.

Dangers : Increasing environmental pressure may lead companies to relocate, or create barriers to the installation of new companies.

Role of the authorities : Awareness, incentives, or even control of measures taken to protect the environment

References : A study carried out by ECOTEC on behalf of DG XVI shows that the sustainable development model comprises 3 objectives : · a sustainable and non inflationnist economic growth · a social cohesion offering all the people access to employment and a high quality of life · the improvement and upkeep of the environmental capital on which life depends.

171 172 INFORMATION SOCIETY

Definition : The advent of communication in all walks of social and economic life, at regional, national or even global level.

Challenges : At regional level, the challenges linked to the information society are in infrastructure, training, utilisation and innovation.

Potential : · Access to new markets · Shortening of production cycles · Relocation of production factors · Lessening of the natural isolation of peripheral regions

Dangers : · Infrastructure investments may not be equally distributed across the entire territory · Risk of leaving part of the population behind · Access to infrastructure in sparsely populated areas · Cost differential in terms of access to, and utilisation of infrastructure

Role of the authorities : · Impetus at infrastructure level · Awareness as to, training for, and demonstration of the potentialities of new information technologies, telecommunications and multimedia

173 174 PUBLIC / PRIVATE PARTNERSHIPS

Definition : Close co-operation between the public and private sectors aimed at achieving joint, pre-defined objectives.

Challenges : Development of such partnerships in regions with a view to implementing a development strategy

Potential : · Mobilisation of resources and skills · Increasing available funds · Encouraging synergies between the public and private sectors

Role of the authorities : · Improving and defending an environment within which the partnership can blossom · Promoting leverage techniques

175 176 COMPANY COMPETITIVENESS

Definition : A series of factors contributing to company growth and expansion. This concept includes notions such as wage costs, real and intangible investment, innovation, organisation, staff productivity, cost of transport, financial expenditure, etc.

Challenges : Improvement of company growth and expansion factors.

Potential : · Job retention / growth · Driving force with a cascading effect on other companies or activities

Dangers : Company restructuring involving potential job losses.

Role of the authorities : · Improving the local/regional environment in which companies operate · Offering companies support services which are both highly efficient and adapted to their true needs.

177 178 LABOUR MARKET FLEXIBILITY

Definition : Measures to allow companies to adapt their workforce to changing requirements. Labour market flexibility namely makes it easier to use part-time and close-ended contracts, and improve working time management. It sometimes leads to changes in occupational regulations.

Challenges : To reconcile job quantity and job quality. To improve the unemployed's “employability”.

Potential : More jobs, and hence less unemployment

Dangers : Widespread precarious labour, cheap labour, deterioration of labour conditions (one-year part time contracts).

Role of the authorities : Support to individuals.

179 180 NEW EMPLOYMENT SOURCES

Definition : sector(s) identified as potential job creators in areas such as assistance to people, environment, culture, sport, etc.

Challenges : · To increase the net amount of jobs created and hence curtail unemployment Solvency of the offer of such reservoirs

Potential : · Job creations · Satisfying needs

Dangers : · Precarious jobs · Increase in public employment

Role of the authorities : · Promoters of demand-side analyses · Financial contribution to offer solvency actions

References : European Commission reports dealing with the local development initiatives.

181 182 INNOVATION

Definition : A series of measures and actions to successfully trigger, assimilate and exploit novelty in the social and economic fields. Innovation offers new solutions to traditional problems and therefore helps companies meet their requirements. It requires strategic and organisational skills. Innovation can be technical, technological, but also managerial. It allows companies to face competition, protect their market shares and secure their development and sometimes their survival.

Challenges : To promote the culture of innovation in education, administrations and companies.

Potential : · Creation of companies and jobs · Improved competitiveness of companies · Stronger leadership in identified sectors

Dangers : Loss of competitiveness of the enterprises which do not innovate

Role of the authorities : · To support innovative initiatives in companies and other organisations · To target public support toward stronger innovative spirit · To implement a strategy for innovation and support to technology transfer

EU support : · Pilot funding under regional innovation strategies and technology transfer (RITTS-RIS) · Eligibility of a number of measures under the Structural Funds · Specific “Innovation” Programme as part of the framework programme on RTD · Adoption of the first multi-annual innovation action programme in 1997

183 184 CONTRIBUTION OF THE TOOLS TO REGIONAL COMPETITIVENESS

Attracti- Support to development Parameters of regional economic Jobs Competitiveness Regional veness development of enterprises strategy of the area Indigenous Exogenous

Regional development plans X X X Recreation parks X X Industrial parks X X X X X Teleports X X X X Free-trade zones X X X X X Technological parks X X X X X Urban free-trade zones X X X SWOT studies X Integrated Development Operation X Economic intelligence X X Sectoral networks X X X X X Second-chance schools X X Territorial employment pacts X X X Insertion companies X X Rehabilitation of derelict areas X X X X Technology transfer X X X X Industrial site reconversion plans X X X X X Local employment initiatives X X X Regional marketing X X X X Endogenous potential X X X X X Aid schemes X X X X X X Business services X X X X Qualification observatory X X X X Bankruptcy Prevention Centres X X X I.T. Centre X X X Technological watch X X X Conference centre, exhibition, fairs X X X RITTS - RIS - RISI X X X Multi-services points X X Eco-museum X X

185 186 RELEVANCE OF THE TOOLS TO ANSWER THE CHALLENGES OF THE FINAL USERS 1.a The enterprises, and particularly the SMEs

SME requirements Start-up Growth Accommodation Innovation Equipment Markets Financing Management

New EASDAQ markets X X Clusters X X X X Seed/Venture capital X X X Business Angels X X X Call Centre Hotels X X Industrial parks X X Company zones / Free-trade X X X zones Technological parks X Urban free-trade zones X Industrial spinoffs X X Business incubators X X X BICs X X X X Company clubs X X X X Meet-the-buyers fairs X X ISO 9000 X Factory outlets X One-stop shops X X Micro-credit schemes X X Reconversion companies X X X TQM X X Benchmarking X X Teleports X X X X Technology transfer X X X X X Business services X X X X X X Endogenous potential X X Local employment initiatives X X Aid schemes X X X X X X Interfirm partnerships X X X X Third-party financing X X Stimulation of entrepreneurship X X X Databases, directories X Bankruptcy prevention centres X I.T. Centres X X Neighbourhood infrastructures X X X X Technological watch X X X X Mutual guarantee X X X X Local venture capital X Financial intermediation X X Technological dev. programme X X Prototype dev. programme X X

187 188 RELEVANCE OF THE TOOLS TO ANSWER THE USERS’ CHALLENGES

1.b Citizen / Workers

Labour Unemployed Enterprise Market and creators marginal populations Local employment initiatives X X X Territorial employment pacts X Insertion companies X Second-chance schools X Social economy initiatives X X Urban free zones X X Business and innovation centres X Business incubators X Micro-credit schemes X Reconversion companies X Solidair savings and loans banks X X Financial engineering X Business services X Stimulation of entrepreneurship X X Company buy-out / transfer X Employment / service cheque X X Employers’ grouping X X

189 190 RELEVANCE OF THE TOOLS TO ANSWER THE CURRENT CHALLENGES OF THE REGIONAL POLICIES

Globalisation Internationalisation Information Sustainable Employ Private/Public Innovation of economy of exchanges society development ment Partnership

Regional aid schemes X X Business incubators X BICs X X Industrial parks X Free-trade zones X X Urban free-trade zones X Technological parks X X X X Teleports X X X Call Centre Hotels X X Recreation parks X X Freight centres X X Factory outlets X Industrial networks X X X Clusters X X X X X Spinoffs X X Mentoring X X Support to SMEs X X X Company clubs X X X Regional development plans X X Integrated development operations X X SWOT analyses X Global grants Economic intelligence X X Territorial employment pacts X X Insertion companies X X Second-chance schools X X Financial engineering X X X Just-in-time delivery X ISO 9000 X ISO 14000 X Natural regional park X

191 Globalisation Internationalisation Information Sustainable Employ Private/Public Innovation of economy of exchanges society development ment partnership

Quality management X X X X Benchmarking X X IBEX X Regional marketing X X Local employment initiatives X Mobilisation of the endogenous potential X Vocational qualification observatories X X Alternative tourism X X X X Business services X X Rehabilitation of derelict areas X X Industrial site reconversion plans X X Solidair savings and loans banks Technological watch X Stimulation of entrepreneurship X X X X

192 TABLE OF CONTENTS

PART 1 : THE TOOLS

Economic development management tools 1 Local supply chains 65 Regional development plans 3 Alternative tourism 67 Integrated regional development operation 5 Regional natural park 69 RIS-RITTS-RISI 7 Herritage centres 71 Regional aid schemes 9 Regional marketing / Inward investment 73 Public / private partnership 11 Business services 75 Global grant 13 Audit / Counselling / Advice 77 Regional SWOT analysis 15 Bankruptcy prevention centres 79 Intermediate structures 17 Mentoring 81 Neighbourhood infrastructures 19 Technology / innovation transfer 83 Regional technological centres 21 Technology development programme 85 Industrial parks / Trade areas 23 Prototype development programme 87 Rehabilitation of derelict industrial areas 25 Support to SMEs in the framework of big contracts 89 Free-trade zones 27 Interfirm partnerships 91 Urban free trade zones 29 Meet-the-buyer fairs 93 Technological parks / Science parks 31 Company clubs 95 Conference centre / Exhibition centre / Fair centre 33 One-stop shops for SME creation 97 Recreation parks 35 One-stop information / advice shops for SMEs 99 Business incubators 37 Databases / Directories of companies 101 Business and innovation centres 39 Technological watch 103 I.T. Centre 41 Economic intelligence 105 Teleports 43 Just-in-time delivery 107 Call Centre Hotels 45 ISO 9000 / ISO 14000 109 Multimodal freight centres 47 Total quality management 111 Multi-services centre 49 Benchmarking 113 Factory outlets 51 Financial engineering 115 Mobilisation of the endogenous potential 53 Seed / venture capital 117 Stimulation of entrepreneurship 55 Local venture capital / Local investment fund 119 Company buy-out / transfer 57 Informal venture capital / Business Angels 121 Regional sectoral industrial networks 59 Interest-rate subsidised loans 123 Clusters 61 Industrial / university spinoffs 63 Micro-credit schemes 125 Territorial employment pacts 147 Loans without interest and/or guarantee 127 Local employment initiatives 149 Joint-guarantee societies 129 Vocational qualification observatory 151 Social venture capital 131 Social economy initiative 153 Solidair savings and loans banks 133 Insertion companies 155 Third-party financing 135 Employer associations 157 New markets / EASDAQ / NASDAQ 137 Job and services vouchers 159 Financial mediation 139 Second-chance schools 161 Industrial site reconversion plans 141 Out placement 163 Reconversion companies 143 Management buy-out 165 Human resources support measures 145

PART 2 : THE CHALLENGES PART 3 : TABLES

Globalisation of the economy 167 Contribution of the tools to regional competitiveness 185 Internationalisation of trade 169 Relevance of the tools to answer the challenges of the final users Sustainable development 171 1.a The enterprises, and particularly the SMEs 187 Information society 173 1.b Citizen workers 189 Public/private partnerships 175 Relevance of the tools to answer the current challenges of the Company competitiveness 177 regional policies 191 Labour market flexibility 179 New employment sources 181 Innovation 183 ALPHABETICAL INDEX OF THE TOOLS AND CHALLENGES

Alternative tourism 67 Industrial parks 23 Audit / Counselling / Advice 77 Industrial site reconversion plans 141 Bankruptcy prevention centres 79 Industrial / university spinoffs 63 Benchmarking 113 Informal venture capital 121 Business Angels 121 Information society 173 Business incubators 37 Innovation 183 Business and innovation centres 39 Innovation transfer 83 Business services 75 Insertion companies 155 Call Centre Hotels 45 Integrated regional development operation 5 Clusters 61 Interest-rate subsidised loans 123 Company buy-out / transfer 57 Interfirm partnerships 91 Company clubs 95 Intermediate structures 17 Company competitiveness 177 Internationalisation of trade 169 Conference centre 33 ISO 9000 / ISO 14000 109 Cultural tourism 67 I.T. Centre 41 Databases / Directories of companies 101 Job and services vouchers 159 EASDAQ 137 Joint-guarantee societies 129 Economic development management tools 1 Just-in-time delivery 107 Economic intelligence 105 Labour market flexibility 179 Employer associations 157 Loans without interest and/or guarantee 127 Exhibition centre 33 Local employment initiatives 149 Factory outlets 51 Local investment fund 119 Fair centre 33 Local supply chains 65 Financial engineering 115 Local venture capital 119 Financial mediation 139 Management buy-out 165 Free trade zones 27 Meet-the-buyer fairs 93 Global grant 13 Mentoring 81 Globalisation of the economy 167 Micro-credit schemes 125 Green tourism 67 Mobilisation of the endogenous potential 53 Herritage centres 71 Multimodal freight centres 47 Human resources support measures 145 Multi-services centre 49 NASDAQ 137 Neighbourhood infrastructures 19 New employment sources 181 Second-chance schools 161 New markets / EASDAQ / NASDAQ 137 Seed capital 117 One-stop information / advice shops for SMEs 99 Social economy initiative 153 One-stop shops for SME creation 97 Social venture capital 131 Out placement 163 Solidair savings and loans banks 133 Prototype development programme 87 Stimulation of entrepreneurship 55 Public / private partnership (tool) 11 Support to SMEs in the framework of big contracts 89 Public/private partnership (challenge) 175 Sustainable development 171 Reconversion companies 143 Technological parks / Science parks 31 Recreation parks 35 Technological watch 103 Regional aid schemes 9 Technology development programme 85 Regional development plans 3 Technology transfer 83 Regional marketing / Inward investment 73 Teleports 43 Regional natural park 69 Territorial employment pacts 147 Regional sectoral industrial networks 59 Third-party financing 135 Regional SWOT analysis 15 Total quality management 111 Regional technological centres 21 Trade areas 23 Rehabilitation of derelict industrial areas 25 University spinoffs 63 RIS-RITTS-RISI 7 Urban free trade zones 29 Venture capital 117 Vocational qualification observatory 151 INTRODUCTION

Economic development results from the interaction of many factors, both region-specific outside their province.

For several decades, tools have been developed to solve problem linked to the restructuring or stimulation of the local economic fabric.

The relevance of these tools, the measure of their performance and even the preconditions of success in their implementation are as many topics of reflection.

This document is an attempt to contribute to this reflection and a reference book of good practices. The exercise consists in describing the various tools systematically and considering their contribution to a number of challenges to be addressed in regional policies.

We understand that the word “ tools ” covers a wide variety of concepts such as : · Instruments · Measures · Objectives · Management techniques and that some of the following items relate to public sector actions or, inversely, to private sector initiative. These concepts share an objective, which is – theoretically, at least – to impact heavily and significantly upon the relationship between the actors of local/regional economic development.

The initial idea for this document was, on the one hand, a reflection within EURADA on the components of an ideal local/regional development model (see graph on following page), and on the other hand, a reflection on the possibility of undertaking benchmarking initiatives in the field of regional economic development.

This document does not claim to be more than a inventory of tools and a source of reflection for local/regional economic operators on instruments developed and experience centres for each of them. REGIONAL ECONOMIC DEVELOPMENT TOOLS

· Inventory

· Performance assessment data

· Contribution to current economic challenges

Version 2 - August 1998

EURADA - Avenue des Arts, 12 - Bte 7 - B 1210 BRUXELLES - Tel. +32 2 218 43 13 - Fax. +218 45 83 - E-mail : [email protected] Definition :

Advantages :

Promoters :

Beneficiaries :

Intervention area :

Circulation :

Transferability :

Experience centre :

EU support :

First seen :

Prerequisites for success:

· At tool level · · Between regions ·