TOOL "DEVELOPING THE CREATION OF INNOVATIVE COMPANIES" TEP: Asturias Spain
TYPOLOGY Creation of companies
TRANSVERSAL THEMES COVERED -
TERRITORIAL AREA CONCERNED Mining Districts of Asturias
Key factors which contributed to the launch of the initiative Period: July 1999-March 2001. In January 1998, the definitive agreement was signed for the « Territorial Employment Pact for the Mining Districts of Asturias » by the Administration of the Principality of Asturias, the Asturian Federation of Municipal Councils, the Asturian Employers Federation, the General Trade Union of Workers and the Workers Councils of Asturias.
In July 1999, the Principality of Asturias and the FICYT signed a collaboration agreement to implement the action of “Promoting Applied Research” within the scope of the Territorial Employment Pact in the Mining Districts of Asturias. Within this general action, there are four lines of activity among which the following stands out: « Aid for employment through the Creation of innovative companies »:
Providing a research infrastructure Developing the incorporation of qualified personnel in companies Developing the creation of innovative companies Supporting applied research projects
During 1999, all the parties responsible for the action agreed on the form of implementing it and initiated some of the activities. The activity concerning « Developing the creation of innovative companies » was not initiated until January 2000.
The objective established is job creation and entrepreneurial innovation through supporting the creation of technology-based and/or innovative companies.
ORGANISATION CONTACT FICYT Foundation Guadalupe FERNÁNDEZ TRESGUERRES Technician C/o Cabo Noval 11, 1º C 33007 Oviedo Tel : 985207434 Fax : 985297433 [email protected]
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WHAT IS IT?
Description of the Tool The line of «Aid for employment through the creation of innovative companies» subsidises two types of costs:
personnel costs: up to 150,000 pesetas per month during twelve months for half the number of jobs created.
acquisition costs for technical infrastructure: up to 25% of the investment in computer equipment and machinery.
Objectives and target groups The main objective is developing employment and entrepreneurial innovation through supporting the creation of technology-based and/or innovative companies.
Target group: entrepreneurs in the area of the Mining Districts of Asturias who set up companies with an innovative characteristic, either the product, the process or the overall concept of the service. In short, it should be something that does not yet exist in Asturias and which meets a need as yet unsatisfied in the region. In addition to the innovative characteristics, it must also satisfy another series of requirements such as job creation (at least two jobs), being located in the geographical area of the Mining Districts and being viable technically, economically and financially, as demonstrated through an external study.
Partners: names, type, roles / competencies and contributions Designer and leader: FICYT (private foundation) Other partners: Public partners: Principality of Asturias Private partners: Asturian Employers Federation Social partners: Trade unions (UGT/CC.OO.), Asturian Federation of Municipal Councils
Tool's steering group structure An ad hoc agreement was signed by the FICYT, the Chambers of Commerce and the CEEI to implement this line of « Developing the creation of innovative companies ». The procedure is as follows: the FICYT publicises an invitation to bid for aid and provides the interested parties with all the necessary information. Applications are presented to the FICYT, or at the Special Entrepreneurs Counter at the Chamber of Commerce of Oviedo, after a viability study has been carried out - preferably by the CEEI - corresponding to each project.
A Committee will periodically carry out an assessment of the innovativeness of the projects, making a concession proposal which has to be accepted by the Executive Board of the Territorial Employment Pact of the Mining Districts of Asturias.
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The interested parties are subsequently informed of the Decision, and the process of paying out the aid begins, after presentation of a series of justifying documents which attest the true creation of the company.
The last phase is a carrying out periodic visits to the subsidised companies to verify the real use of the funds granted.
WHAT HAS BEEN ACHIEVED?
Innovation Although there are currently other types of aid available for innovative companies in Asturias, the rather more novel characteristics presented by this action are as follows:
It is focused on the moment of creating the company – whereas the other aid is granted during the subsequent stages. It places a particular emphasis on job creation – while the other aid exclusively funds investment in infrastructure.
Results realised and expected During the fifteen months that the invitation to bid remained open, 54 applications for aid were received, of which 32 were granted. This has led to the creation of 121 new jobs, of which 54 have been subsidised.
WHAT IS THE COST?
Initial investment (material, fixed assets) and source of funding: The initial budget to cover personnel costs, through the European Social Fund, will be 90,000,000 pesetas, of which 75,375,000 pesetas have been pledged; there is a budget of 15,837,715 pesetas for the technical infrastructure, coming from the Regional Development Fund, which will be used in its entirety.
Income Operating costs for personnel and administrative costs.
During 2000, the following operating costs were incurred for the line of « Developing the creation of companies »: Personnel costs: 43,600 euros other management costs: 36,600 euros
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Demographic, social, economic, political and cultural characteristics Territorial area: 10 565 km2 GDP per capita: 72.4% of the EU average Eligible for the Structural funds objective/s : Objective 1 Total population: 1 081 434 Active population: 390 700 Unemployment rate : 18.24%
Other characteristics : Asturias has some very specific economic, social and cultural particularities: it is a region which is in the process of industrial reconversion, after the privatisation and/or closure of large state-owned companies which provided its sustenance for many years. being located in the north-eastern region of Spain, the infrastructure is bad for communications with the rest of Spain and Europe, which has made it difficult for the region to open up to the outside world. it has a population density which is continually decreasing, its population is in the process of becoming one of the oldest populations in Spain. it has a high level of income, due to the number of pensioners and the subsidies which had to be given to the population to counteract the closure of companies. it has one of Spain’s highest unemployment rates. it has a growth of activity in the services sector, mainly due to tourism and construction.
Conditions Technical conditions It is necessary to have the presence of a dynamic agent to coordinate this type of aid, with previous experience and who enjoys a good reputation in the region.
Political and legal conditions It is necessary that there be a legislative framework to facilitate the provision of aid to the companies.
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