1st_AEGIS_POLICY_BRIEF.pdf

8/10/2019 1st_AEGIS_POLICY_BRIEF.pdf

1/8

A E G I SA E G I SA E G I SA E G I SA E G I SA E G I SA E G I SA E G I S Advancing Knowledge-Intensive

Entrepreneurship and Innovation forEconomic Growth and Social Well-being inEurope

Ongoing project

SUMMARY

Objectives ofthe research

This research project aims at studying the interactions betweenknowledge, innovation, economic growth and social well-beingin Europe. It focuses on knowledge intensive entrepreneurship(KIE) as a necessary mechanism and an agent of changemediating between the creation of knowledge and innovationand its transformation into economic activity and well-being.

Scientific approach /methodology

A variety of different scientific approaches and researchmethodologies will be used to study KIE and its relatedstrategies and policies.An extensive field research and numerous case studies lie atthe heart of the empirical work examining in-depth differentaspects of KIE. All necessary analytical techniques will be used,from qualitative techniques to modelling and sophisticatedstatistical and econometric analysis, social network analysis andadvanced policy analysis.

New knowledge and/orEuropean added value

In addition to the traditional, person-centred view ofentrepreneurship AEGIS introduces: an organization-centredand network-centred view, emphasis on the link between microand macro phenomena, concentration on both high and low-tech sectors, analysis in the context of various socio-economic

models and systems of regional /national innovation in Europe,comparison of European patterns with those of other economiessuch as Russia, China and India, a systemic view of thephenomenon and the relevant policy implications.


2/8


3/8

EUROPEAN POLICY BRIEF 3

Objectives ofthe research

(15 LINES)

The AEGIS project has three main objectives:

At the micro level , it examines the act of knowledge-intensive entrepreneurship (KIE), its definingcharacteristics, boundaries, scope and incentives invarious sectors (high and low tech and services). Apartfrom the supply side, it focuses on the demand side and tothe social and cultural dimensions related to KIE

At the macro level it examines the link between KIE,economic growth and social well-being. Emphasis isplaced on the way the socio-economic environment stokesanimal spirits and benefits from them in the context ofvarious shades of capitalism in Europe and elsewhere.

At the policy level it will try to translate its findings intodiagnostics tools for country or sector specific assessmentof KIE and provide operational policy recommendations,by taking into account different national/regional andsectoral systems of innovation within EU and some keylarge fast growing countries (India, China and Russia).

Scientific approach /Methodology20 lines

A variety of disciplines and research methodologies is usedto analyze KIE and related strategies and policies:economics, organization theory, strategic management,finance, economic history, economic geography, sociology,science and technology studies, policy studies. Allnecessary analytical techniques will be used, fromqualitative techniques and case studies to modelling andsophisticated statistical and econometric analysis, as well asadvanced policy analysis.

An extensive field research (AEGIS survey) and numerous

case studies (CS) lie at the heart of the empirical workexamining in-depth different aspects of KIE. Thequestionnaire that has been developed aims at tracing KIEand identifying the factors which enable and/or constrain thedevelopment of KIE in different sectors. The AEGIS surveywill support the empirical investigation of KIE in an attemptto identify motives, characteristics and patterns in thecreation and growth of new firms which are based on theintensive use of knowledge. This survey could be consideredas a pilot exercise for the design of a new instrument aimingat the monitoring and study of KIE in Europe on a regularbasis.


4/8


New knowledge andEuropean added value2-3 pages

The recent global financial crisis underlined the fact thatsecuring economic growth is not an easy task and requiresmore targeted efforts. Structural weaknesses of the Europeaneconomy have been exposed and new challenges haveemerged at the policy level. In the context of the new Europe2020 strategic policy plan, the notion of growth has beencomplemented with the concepts of smartness, inclusion andsustainability. These priorities indicate that achieving growth hasto take into consideration the need to further strengthenknowledge and innovation, promote efficiency in usingresources and support social cohesion

In this respect, the interplay between science, technologicaladvance, industrial dynamics and international performance,and the relationship with human resources, lie at the heart ofpolicy design. The strategic roles of entrepreneurship andinnovation systems are at the core of the S&T policy agenda. Atthe same time, the role of new knowledge intensive firms inindustry start-up and rejuvenation, labour mobility, andknowledge communication has never before been more criticalto understand the solution of the European Paradox. In adversetimes as today, the need not only for a large quantity of newentrepreneurial ventures, but more specifically for the

identification and promotion of some special ventures that canbe sustainable in difficult times and under credit crunchconditions and support growth and employment, is of paramountimportance.

These are the key issues that the AEGIS project studies.AEGISbenefited from prior analyses such as KEINS that had alreadypointed out at the naivete of many entrepreneurship studies thatpromoted the simplistic view of the rugged individualistentrepreneur who single-handedly build great companies. It thuswent a long way from the five common myths regardingentrepreneurship in the United States as these myths werecaptured by the National Commission on Entrepreneurship(NCOE) (2001) and Blithe (2000): the risk-taking myth ( Mostsuccessful entrepreneurs take wild, uncalculated risks in startingtheir companies); the high-tech invention myth (Most successfulentrepreneurs start their companies with a breakthroughinvention usually technological in nature); the expert myth(Most successful entrepreneurs have strong track records andyears of experience in their industries); the strategic vision myth (Most successful entrepreneurs have a well-consideredbusiness plan and have researched and developed their ideasbefore taking action); and the venture capital myth (Most

successful entrepreneurs start their companies with millions inventure capital to develop their idea, buy supplies, and hireemployees). Instead, AEGIS took into consideration right fromthe start NCOEs (2002) guidance that the issues ranking at the


5/8


top of the agenda of new and growing businesses includefinding and retaining quality people, accessing capital, intensivenetworking, and infrastructure and institutional support.

This is so because in most sectors entrepreneurs have becomeknowledge operators, dedicated to the utilization of existingknowledge, the integration of different knowledge assets, andthe creation of new knowledge. They are placed at theintersection between science, technology and innovation, andoperate either through the foundation of new firms or the displayof entrepreneurial spirit by existing firms or the activity of singleindividuals within no-profit organizations such as universities orpublic laboratories.

For Europe the role of knowledge intensive entrepreneurship iskey for growth and social well being: Large investments inknowledge generation (such as RTD) could not leadautomatically to economic growth because there may meetbarriers in converting research into commercialized knowledge.Knowledge intensive entrepreneurship represents an effectivetransformative mechanism that breaks these barriers andconverts new knowledge into economic activity.

KIE is region-specific. Contexts rich in knowledge may generatemore entrepreneurial opportunities. A host of other factors,institutions, laws, traditions, and culture shape the amount ofregion-specific entrepreneurship capital. Regions characterizedby a high degree of entrepreneurial capital exhibit high levels ofeconomic growth.

KIE is also highly sector specific. Its relevant features andimpact depends on the knowledge base of a sector, the mainpublic and private actors that characterize the sector and theinstitutions. Knowledge intensive entrepreneurship is notconfined to high technology sectors. It has become relevant andpervasive also in low-tech and traditional industries, and inservices, and in all these different contexts reveal specificfeatures compared to manufacturing.

KIE has several distinct national models, related to the differentnational innovation systems. Transition and new EuropeanMember Countries present particularities and often problems inthis respect, while the Unites States have a very vibrantdynamics. Also new global actors such as China and Indiapresent an increasing role of knowledge intensiveentrepreneurship.


6/8


Key messages forpolicy-makers,businesses,trade unions andcivil society actors2 pages

Several policy conclusions and recommendations are at the baseof AEGIS. They add to the traditional policies that fosterentrepreneurship such as the creation of conditions favourable tothe entry of new firms, financial support and venture capital, thesupport of the later stages of firms growth related to thetransformation and growth of those entrants that have beensuccessful.

AEGIS has gone beyond the individual-centric approach toemphasize the major role of knowledge, innovation systems,networks and institutions in fostering knowledge-intensive

entrepreneurship (KIE). Its main messages regarding knowledge-intensive entrepreneurship include:

- Systems: KIE is an inherently systemic policy issue that mustbe tackled from various angles simultaneously for long-termresults. Single policy fixes will work for a short while but will notchange attitudes for the long haul.

- Socio-Economic Incentives: The simplistic view of the ruggedindividualist entrepreneur who takes uncalculated risks andsingle-handedly builds great companies is far from reality.Builders of KIE respond to economic and social incentives thatcan be influenced to a significant extent by policy.

- Competence Building : The issue at hand the building of newactivities and new structures invariably depends on achievingnew combinations of capabilities and competence building.

- Knowledge Application : KIE is about the application ofknowledge to new activities. Policies need to focus on applicationrather than on the creation of new knowledge.

Broad policy targets emerge from the above discussion. Policies

for the promotion of KIE should enable the creation andcommercialization of knowledge in various ways and forms: start-ups of new and small independent firms, university spin-offs,public laboratories and large established corporations, KIE withinlarger corporations and technological diversification.

In order to act on KIE, various levels of intervention could beenvisaged: the individual, the firm, other organizations(universities, banks/VCs), clusters and networks. Both supply-side and demand-side factors are important to linking KIE toregional growth and can be affected by policy. Regions need bothsets of factors to achieve high levels of economic growth. On thesupply side contexts rich in knowledge will tend to generate moreentrepreneurial activities (knowledge spillover theory of


7/8


entrepreneurship) and on the demand side a lot of factors,institutions, laws, traditions and culture shape the amount ofregion-specific entrepreneurship capital.

These policies should be cognizant of the different contextconditions in which knowledge-intensive entrepreneurship takesplace. These include innovation system, sector and sectoralclusters and geographical clusters. Given the multidimensionalityand context dependence of KIE, then, various policy instrumentscan be used either singularly or jointly, from R&D support to seedcapital or venture capital, to training and human resource

formation, to regulation and standardization. Moreover,combinations of central policy actors (ministries) anddecentralized policy actors (regions, municipalities, localgovernment) must be involved extensively.

Also specific policy recommendations can be also identified.First of all, policies in favour of KIE should support the creation ofnew knowledge and the building of knowledge infrastructure thatwill enable the creation and commercialization of knowledge invarious ways and forms. This means the support of basicresearch, allowing for the migration from science to commercial

sector and back, improvement of the quantity and quality of bothscientific and managerial education, fostering the governance ofhigher education institutions to promote academicentrepreneurship and improve the effectiveness of IPR retentionby universities. Second, because networks are key for thecreation and survival of KIE competencies and resources thatare likely to be widely distributed - policies should facilitate theaccess to knowledge resources and stimulate interfaces with themarket. In addition, polcies should support not just individualentrepreneurs but networks (implications for ETPs). Third,policies must take into account the sectoral context of KIE.Policies should take into account the sectoral context in which

knowledge intensive entrepreneurship takes place. In fact sectorsdiffer very much in terms of type of knowledge, actors involved ininnovation, networks and institutions, so that the conditionsaffecting knowledge base entrepreneurship could be radicallydifferent from sector to sector. Policy intervention is especiallyimportant when knowledge-intensive entrepreneurs innovate innew (emerging) technological areas that do not reinforce, butrather overturn, incumbent firms asset values. Finally, theimportance of the institutional setting cannot be overemphasized.This means that new member countries in particular needsupport, that open standards may be important in complexenvironments (decreasing uncertainties)


8/8

PROJECT IDENTITY 8

Coordinator 1. PLANET S.A.

Consortium 2: Universit Commerciale "Luigi Bocconi"3: National Technical University of Athens4:Institute for Management of Innovation and Technology5:Max Planck Gesellschaft zur Frderung der Wissenschaften e.v.6:Lunds universitet7:Universiteit Utrecht8:Technische Universitt Dortmund9:Universit De Strasbourg10:University College London11:Unidade de Estudos sobre Complexidade e Economia12:Aalborg Universitet14:University of Sussex15: Magyar tudomanyos akademia kozgazdasagtudomanyi intezet(Institute of Economics, Hungarian Academy of Sciences )16: Centre for Economic Studies, o.p.s.18: Finansovaya akademiya pri pravitelstve rossiyskoy federacii(The Finance Academy under the Government of the RussianFederation)19:Zhejiang University20:Centre for Development Studies21:Centrum analiz spoleczno- ekonomicznych- fundacja naukowa(Center for Social and Economic Research)22:Universiteit Maastricht23:Croatian Employers Association

Duration 1/1/2009 31/12/2011 (36 months)

Funding Scheme Large-scale integrating project

Budget EC contribution:3.300.000

Website http://www.aegis-fp7.eu/

Further reading Knowledge-Intensive Entrepreneurship and Innovation Systems:Evidence from Europe, Edited by Franco Malerba, RoutledgePublishing,

Related websites

For more information Project website

Documents

1st_AEGIS_POLICY_BRIEF.pdf