Study on the Current Situation of Bis in the Republic of Serbia January 2020 This Publication Is Produced with the Assistance of the European Union

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Study on the Current Situation of Bis in the Republic of Serbia January 2020 This Publication Is Produced with the Assistance of the European Union REPUBLIC OF SERBIA This project is funded Ministry of Economy by the European Union Ministry of Finance and co-funded by Department for Contracting and Financing the Government of of EU Funded Programmes the Republic of Serbia Study on the current situation of BIs in the Republic of Serbia January 2020 This publication is produced with the assistance of the European Union. The contents of this publication are the sole responsibility of the GFA Consulting Group GmbH and may in no way be taken to reflect the views of the European Union. REPUBLIC OF SERBIA This project is funded Ministry of Economy by the European Union Ministry of Finance and co-funded by Department for Contracting and Financing the Government of of EU Funded Programmes the Republic of Serbia Business incubators enabled to provide high value services to SMEs January 2020 Study on the current situation of BIs in the Republic of Serbia ISBN-978-86-902360-1-5 Table of Contents 3 4 List of Figures 6 Overview of Serbian Business Approach Used to Assess List of Tables 7 Incubator Development 22 Serbian Business Incubators (BIs) 34 Acronyms 8 3.1 Brief overview of the development of the BIs in the 4.1 Definition of the BI Republic of Serbia 22 Terminology 9 assessment sample 34 3.1.1 Definition of Business Incubators 23 Introduction and Purpose 4.2 Choosing an appropriate 3.1.2 Distinguishing between incubation assessment method for the BIs 34 of the Study 10 as a process and business incubators as organisations 24 4.2.1 Peer review methodology 34 3.1.3 Is there a unified legal definition of 4.3 Criteria for inclusion in business incubators in the BI assessment and the BI Republic of Serbia? 27 assessment sampling base 35 1 3.2 Current Strategic Support to Business Incubators in Serbia 27 3.2.1 The potential role for Business The Business and Innovation Incubators in Self-Employment Promotion 28 Ecosystem in the Republic 5 3.3 Phases of Business Incubator 12 of Serbia Development in Serbia 29 Performance assessment 1.1 Recent analysis and issues in 3.3.1 Early phase of Business Incubator developing the Serbian start- Development, 2004-2007 29 ofthe BIs in Serbia 38 up ecosystem 12 3.3.2 2nd phase - National recognition and support, 2007-2011 30 5.1 How many operational Business Incubators are 3.3.3 3rd phase - New wave initiatives there in Serbia? 38 and increased private sector involvement, 2012-2019 30 5.2 Basic assessment of BI initiatives 42 2 3.3.4 Conclusions for the Next Phase of 5.3 Description of the applied Business Incubator Development 32 methodology 43 International Findings 5.4 Basic assessment and BI on Business Incubator selection results 43 Development of Relevance to 5.5 Summary findings and results the Republic of Serbia 18 – Supply side analysis of BIs 46 5.5.1 Overview of Findings Related to BIs supporting High-Tech Start-ups 46 5.5.2 Overview of Findings Related to BIs supporting Self-Employment 47 5.6 Detailed findings and results – Supply side analysis of BIs 47 5.6.1 Basic Characteristics of the Business Incubators 47 5.6.2 Goals and market orientAtion 52 5.6.3 Operations Management and Financing 56 5.6.4 Support Services and Networking 62 4 STUDY ON THE CURRENT SITUATION OF BIS IN THE REPUBLIC OF SERBIA 6 7 8 Assessing Tenants’ Needs BI Roadmaps and Identified Conclusions and for Business and Innovation Suggestions for Upgrading BIs 88 Recommendations for Further Support services 68 Improvement at the Level 7.1 Main Conclusions from the of the BIs Ecosystem in the 6.1 Description of the applied Roadmaps 88 methodology 68 7.1.1 Dynamic tendencies in the Serbian Republic of Serbia 98 BI sector 88 6.2 Findings and analysis – 8.1 Main Conclusions 98 Tenants in the BIs 69 7.1.2 BI sector as an element of the National Innovation System 89 8.2 Core Recommendations 99 6.2.1 Background data on companies 69 7.1.3 Role of the regional/ municipal 8.2.1 Recommendations for Policy Makers 99 6.2.2 Relation with the BIs 69 governments in the development of the BI sector 90 8.2.2 Recommendations for High-Tech 6.3 Gap Assessment between BI Business Incubators 99 Service Supply and Tenant Demand 79 7.1.4 BI management competencies 92 8.2.3 Recommendations for Self- 7.1.5 Technology- vs. services-based BIs 93 6.4 Benchmarking of BIs services Employment Business Incubators 99 and recommendations on service 7.1.6 Leveraging the asymmetries in portfolio* 81 financial risk taking 94 6.5 Proposals for the Service 7.1.7 Balancing the private and the public 94 Portfolio Development 86 7.1.8 BI networking and clustering 96 6.5.1 Proposals for the Service Portfolio 9 Development of High-Tech Business 7.2 Ideas for Improving Business Incubators 86 Incubator Effectiveness and Efficiency 96 6.5.2 Proposals for the Service Portfolio Development of Self Employment Toolkits and Roadmaps 100 Business Incubators 86 Toolkit One 100 Methodology for establishing and improving the process of selection of BIs tenants 100 Toolkit Two 101 Methodology for measuring effectiveness and efficiency of BIs in Serbia 101 Toolkit Three 101 Methodology for carrying out Peer Reviews of BIs 101 Roadmaps 101 5 List of Figures Figure 1. Serbia OECD 2018 SEE Figure 13. Objectives of SE BIs 55 Figure 26. Importance of the BI Competitiveness Assessment of services for development of tenant Incubators and Accelerators 16 Figure 14. Type of clients in SE BIs company in SE BIs 72 by origin 55 Figure 2. Likelihood of Business Incubation Processes in Different Figure 27. Regularity of using a HT Figure 15. Activities of client companies 56 Business Support Organisations 24 BI services 73 Figure 16. Funding of operations of Figure 28. Regularity of using a SE Figure 3. Typical Model of the HT BI 57 Business Incubation Process 26 BI services 73 Figure 17. Entrance criteria in HT BIs 58 Figure 4. Current Standing of Figure 29. HT BIs services that Serbia in a Phased Development of Business Incubation 33 Figure 18. Exit criteria in SE BIs 59 tenants receive 74 Figure 5. Mapping of Business Figure 19. Funding of operations of Figure 30. HT BIs services that Incubators in Serbia in 2019 39 SE BIs 60 tenants would like to receive 75 Figure 6. Founding partners of HE BIs 48 Figure 20. Exit criteria in SE BIs 61 Figure 31. Main Gaps in service provision in HT BIs 76 Figure 7. Size of HT BIs premises 49 Figure 21. Services Provided by HT BIs 63 Figure 32. SE BIs services that Figure 22. Effectiveness of Figure 8. Founding partners of the tenants receive 77 SE BIs 50 Capacity Development Business Services Provided by HT BIs 63 Figure 33. SE BIs services that Figure 9. Size of SE BIs premises 51 Figure 23. Services provided by SE BIs 65 tenants would like to receive 78 Figure 10. Objectives of HT BIs 52 Figure 24. Effectiveness of Figure 34. Main Gaps in service Capacity Development Business provision in SE BIs 79 Figure 11. Type of clients in HT BIs Services Provided by SE BIs 66 by origin 53 Figure 35. Average Scores for BIs Figure 25. Importance of the BI Figure 12. Activities of HT BI client services for development of tenant Across Five Strategic Development companies 54 company in HT BIs 72 Criteria 95 6 STUDY ON THE CURRENT SITUATION OF BIS IN THE REPUBLIC OF SERBIA List of Tables Table 1. Key Features of Business Table 13. Ranking of BI initiatives 45 Table 23. Proposals for Top 10 Incubators and Accelerator Programmes 18 services to be included in service portfolio of SE BIs 87 Table 14. Tenant companies Table 2. Main Goals of European relation with HT BIs 70 Business Incubators 19 Table 15. Tenant companies Table 3. Different Forms of relation with SE BIs 71 Business Incubation Models in Europe 20 Table 16. Main Gaps in Service Table 4. Main Services Provided in Provision by HT BIs 80 European Business Incubators 20 Table 17. Main Gaps in Service Table 5. Active Employment Policy Provision by SE BIs 81 Supporting Self-Employment 28 Table 18. Comparison of BI service Table 6. Main Phases of BI evolution 33 supply – Serbian HT BIs and European incubators 82 Table 7. Selection criteria for BIs supporting high-tech start-ups 36 Table 19. Comparison of BI service supply – Serbian SE BIs and European incubators 83 Table 8. Selection criteria for BIs supporting self-employment 37 Table 20. Comparison of HT BI tenant needs – ranking of used/ Table 9. Overview of the BIs needed services by Serbian and developoment in Serbia 2006-2019 41 European tenants 84 Table 10. Visited BI initiatives Table 21. Comparison of SE BI during initial assessment phase 42 tenant needs – ranking of used/ needed services by Serbian and Table 11. Summary of rankings of European tenants 85 BI supporting high-tech start-ups 44 Table 22. Proposals for Top 10 Table 12. Summary of rankings of services to be included in service BI supporting self-employment 44 portfolio of HT BIs 86 7 Acronyms ADA Austrian Development Agency ITU Digital Innovation profile for Serbia BI Business Incubator Initiative JRC Joint Research Centre BIC Business Incubator Center KPI Key performance indicators BICs Business and Innovation centres MoE Ministry of Economy of the Republic of BINS Novi Sad Business Incubator Serbia BITF Business Technology Incubator of MVP Minimum viable product Technical Faculties NARR National Agency for Regional CRM Customer Relationship Management Development CSES Center for Strategy & Evaluation Services NBIA National Business Incubation Association EBN European Business Innovation Network NES National Employment Service EBRD European Bank for Reconstruction and NGO Non-Governmental Organization Development NIP The National Investment Plan EC/OECD Policy Brief on Incubators and NIS National Innovation System Accelerators that Support Inclusive OSCE Organisation for Security and Co- Entrepreneurship operation in Europe EDA U.S.
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