In our globalised economy, entrepreneurs are under pressure to shift production to lower-cost regions and to switch their focus to more knowledge-based activities. Competition has become a worldwide phenomenon, even for SMEs. The internationalisation of competition, and the proliferation of explicit knowledge via ICT innovations, make conscious top-quality knowledge management an increasingly critical factor in the competitive performance of both large and small firms. So the competitiveness of the European economy is heavily dependent on innovation. Small firms play an import role in realising technological innovations and in shaping a nation's innovation and competitiveness.

EIM Business & Policy Research, a member of Panteia, has carried out numerous studies in the field of technology and innovation. These studies have been used in all stages of the policy cycle. They range from prospective strategic studies to the application of concrete technologies in specific industries.

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Example international projects:

SMEs and subcontracting
The overarching objective of the study was to provide a broad overview of the fundamental aspects characterising subcontracting currently affecting European SME subcontractors.
The report provides an overview of qualitative and quantitative information about the phenomenon of subcontracting in general. In addition, subcontracting practices have been studied in three sectors: the automotive sector, the shipbuilding and marine equipment sector, and the construction sector.
Three sources of information have been used. First, an extensive review of existing documentation on subcontracting and SMEs has been conducted, both at international and at national level in the Czech Republic, Germany, the Netherlands, Slovakia, Spain and Sweden.
Second, a limited number of questions have been included in a telephonic survey among a representative sample of more than 8,000 SMEs.
Finally, a number of interviews with experts has been carried out, both comprising general of experts and sector experts.
Commissioned by: DG Enterprise and Industry of the European Commission
Organisation: EIM Business & Policy Research
In cooperation with International Network for SME Studies (INSMES)

The Europe INNOVA cluster mapping project
The goal of the INNOVA cluster mapping project is to map clusters and cluster policies and institutions in 15 "old" EU member countries plus Norway, Iceland, Switzerland, Israel, Romania, Bulgaria, and Turkey. Clusters are increasingly seen as a critical element in understanding the competitiveness and innovative capabilities of regional and national economies.

There are three main objectives for this cluster mapping project: first, to establish a Europe-wide database on regional clusters; second, to analyse a number of business clusters identified and document national government agencies and policies related to clusters; and third, to develop policy recommendations for cluster-driven policies to improve innovation and competitiveness in Europe. This project has the potential to develop a truly strategic tool for Europe to devise effective policies to increase competitiveness and innovation and achieve the ambitions outlined in the Lisbon Agenda.

The project is carried out by a group of partners including the Centre for Strategy and Competitiveness at the Stockholm School of Economics (Sweden), which is the coordinating partner in the project, Cluster Competitiveness Group S.A. (Spain and U.K.), the Fondation Sophia Antipolis (France), and Oxford Research AS (Norway).

Open innovation policy assessment framework
In this project, EIM developed a framework to assess policies to stimulate and support open innovation. It presents a theory-driven framework in which a broad range of policy areas are connected to the various key characteristics of open innovation, including behaviours of innovative enterprises (networking, collaboration, corporate entrepreneurship, IP management, R&D) and external conditions (availability of basic knowledge, a highly educated and mobile labour force, and good access to finance).

The report explains why policy interventions on these aspects are legitimate. The framework entails innovation-related policies such as research and technology development and stimulating interaction, but it also pays attention to more remote policy areas such as labour markets and education. For the framework we derive 21 guidelines for policymaking; these guidelines connect the various behaviours and external conditions with the identified policy areas.

Next, the framework is applied to the current policy mixes in three countries, i.e. the Netherlands, Flanders (Belgium) and Estonia. Drawing on desk research and in-depth interviews with local policy makers and experts, we assess which policy practices are compatible with open innovation and which are still lacking if we are to create an optimum economic and institutional environment in support of open innovation. Conclusions and recommendations are discussed.

Promoting environmental technologies in SMEs: barriers and measures
The objectives of this project are:

• to define and describe the barriers hindering the adoption of environmental technologies by European SMEs, distinguishing between barriers affecting innovation in general, and those barriers affecting environmental technologies; it should establish whether there are specific barriers associated with a specific sector or geographical region.
• to identify the available measures and good practices for the promotion of environmental technologies and an analysis of their strengths and weaknesses and the origin of these weaknesses.
• to define and describe measures (at the European, national and regional level) to promote the adoption of environmental technologies by European SMEs, and possible ways of implementation.