<p>1.1. IMPORTANCE OF SME SUPPORT </p><p>Causes preventing SME development in Lithuania:</p><p>1. Unstable and constantly changing legal environment 2. Unfavourable economic environment 3. Financial problems 4. Lack of knowledge.</p><p>Kaunas, Lithuania, 2001 </p><p>1.2 INFRASTRUCTURE MODEL OF SMEs</p><p>Project centres Infocentres Fairs, exibitions</p><p>Personnel centres Innovation centres Infor- Labour exchange mation STP</p><p>Personnel Capital Banks Auditors centres Leasing companies Market Organis Conferences, ations seminars Tech Investment and nolo financial firms gies SME associations Property Trade links and centres Insurance and guaranties funds</p><p>Orders Marketing Engineer agreements centres centres</p><p>Kaunas, Lithuania, 2001 </p><p>1.3. BUSINESS SUPPORT STRUCTURES IN LITHUANIA </p><p>Organisations participating in implementation of SME development program: </p><p> At the beginning of 1996 there was established a non-profit organisation - Lithuanian SME development agency. Its goals are: analysis and participation in formation of SME development policy in Lithuania, implementation of support rendered by EU PHARE programs for SMEs and regional development in Lithuania. </p><p> With the help of PHARE program in year 1993 - 1995 there were 6 Business Consulting Centres established in Alytus, Kaunas, Klaipėda, Panevėžys, Šiauliai and Vilnius.</p><p> In December of 1997 there was established insurance company - Lithuanian export-import insurance company. Its goals are: promotion of Lithuanian companies products export by insuring export related risk and credits issued for production of export products, support of SMEs by insuring loans for long-term investment projects. </p><p>Kaunas, Lithuania, 2001 </p><p>1.4. INTERRELATIONS OF BUSINESS SUPPORT STRUCTURES </p><p>Industrial park</p><p>Technology BI centre/park Innovation centre/park</p><p>Information, Crafts, Reasearch comunication Services centres centre Sales centre</p><p>Kaunas, Lithuania, 2001 </p><p>1.5. INNOVATION CENTRES</p><p>The main goal of these centres is to support innovative start-ups so that they could successfully grow and make a positive influence on local economics.</p><p>Currently there are three innovation centres in Lithuania:  Lithuanian innovation centre (established in 1994). There were established four strategic activities: technology “export” - “import”, introduction to innovation commerce, information services, promotion of innovative entrepreneurship.</p><p> KUT Innovation centre (established in 1994). IC searches for new technologies and products at KUT departments, organises promotion of "know-how" and perspective novelties, publishes booklets (catalogue of Lithuanian innovations), participates in fairs, publishes articles in scientific press, renders business planning services.</p><p> Lithuanian Agricultural University Innovation centre (established in 1992). Conducts a role of new knowledge dissemination in country's agricultural sector.</p><p>Kaunas, Lithuania, 2001 </p><p>1.6. BUSINESS INCUBATORS IN LITHUANIA</p><p>… business incubator is not just the premises. Most important is atmosphere and human warmth that makes businessmen home comfortable….</p><p>BUSINESS INCUBATORS IN LITHUANIA</p><p>There were 7 functioning BI in Lithuania in January 1, 2001:</p><p>Kaunas University of Technology BI established in 1998; Telšiai County BI established in 1998; Vilnija BI established in 1998; Alytus BI established in 1998; Vilnius BI established in 1999; Šiauliai BI established in 1999; Kazlu Ruda BI established in 2000.</p><p>Kaunas, Lithuania, 2001 </p><p>1.7. SCIENCE PARKS </p><p>Science parks are institutions that most often function on the basis of universities (scientific institutes) and which help to develop high technologies by connecting researchers, laboratories, institutes, small innovative companies and entrepreneurs. </p><p>There are two science and technology parks in Lithuania:  Vilnius science and technology park There are 35 SME companies functioning on its basis which employ 250 people. Park offers: technic environment for innovative businesses; modern facilities of scientific institutes; business development consultations etc.  Lithuanian Agricultural University science and technology park The purpose of this park is enhancement of overall cultural level of rural community by:  promoting scientific novelties, technologies and innovations,  helping to improve water, land and forest specialists qualification,  promoting development of country-side businesses and crafts.</p><p>Kaunas, Lithuania, 2001 </p><p>1.8. MAIN FUNCTIONS OF SCIENCE AND TECHNOLOGY (STP) PARKS</p><p>STP</p><p>FinansingFinansing ConsultationsConsultations InvestmentsInvestments InformationInformation CreditsCredits</p><p>InfrastructureInfrastructure IncubationIncubation PremisesPremises</p><p>Kaunas, Lithuania, 2001 </p><p>1.9. SCIENCE AND RESEARCH PARKS </p><p>Mostly STPs unite high-tech companies or research institutes in a beautiful, not building crammed territory. Existing companies work in the fields of products research or analogues creation except of companies rendering services. </p><p>TECHNOLOGY PARKS TP GOAL – to create minimum work conditions and at the same time to lower risk related with start-ups activities. </p><p>COMMERCIAL PARKS Independent legal entity – most reliable and most interested guarantor of new products, knowledge, technologies, services introduction to the market. </p><p>TECHNOPOLS Japan model of STP. Differs in a way that it's directed towards building of new cities - "Technopols" - and not to the connection to some university. </p><p>Kaunas, Lithuania, 2001 </p><p>1.10. INNOVATION HOUSE</p><p>„Innovation house“: STP and their relation to the environment</p><p>Goal: creation of welfare</p><p>(new enterprises, goods and services, technology transfer, </p><p> jobs)</p><p>Industrial Science park park</p><p>Business/ Industry  Innovation  Science and centre research</p><p>Business Technology park park</p><p>Base: regional potential</p><p>Pramonė</p><p>Kaunas, Lithuania, 2001 </p><p>1.11. USA - INITIATOR OF SME SUPPORT STRUCTURES </p><p> The first BI established in New York state in 1952;  SMEs policies administration initiated promotion of BI establishment. There were 20 functioning BI at that time.  At the moment there are about 500 BI in USA, more that 7800 companies graduated from them and more than 80% of these successfully function independently.  NBIA – national business incubators association - comprises 800 members.  International business incubation project.</p><p>Kaunas, Lithuania, 2001 </p>