EARTO Annual Conference

“Innovation in SME’s”

Lisbon, 3 March 2006

Lino Gomes Fernandes

Evolution of total R&D spending, at constant prices, by sector of execution (1982-2001)

0

50 000

100 000

150 000

200 000

250 000

300 000

350 000

1982 1984 1986 1988 1990 1992 1995 b) 1997 1999 2001 Years

Thousand Euros

Enterprises

State

Higher Education

Public Non Profit

“Innovation in SME’s”

Business R&D Annual growth rate, 1995-2001

(1995 PPP dollars)

0,0 2,0 4,0 6,0 8,0 10,0 12,0 14,0 16,0 18,0 20,0

France (1997-2001)

Italy

Netherlands (1996-2001)

Germany

EU

Norw ay

Belgium (1995-2000)

Ireland

Sw eden

Spain

Austria (1993-1998)

Denmark (1995-1999)

Greece (1995-1999)

Finland

Portugal

EU

Co

un

trie

s

Annual growth rate, 1995-2001

OECD Science, Technology and Industry Scoreboard 2003 - Towards a knowledge-based economy

“Innovation in SME’s”

Favorable Evolution of the Technological BalanceDegree of Coverage of External Balances

0,00

0,10

0,20

0,30

0,40

0,50

0,60

0,70

0,80

1996 1997 1998 1999 2000 2001 2002

Year

Ex

po

rts

/Imp

ort

s

Merchandise Trade Balance

Technological Balance

“Innovation in SME’s”

Distribution of Enterprises between “Traditional R&D Executers” and “New” according to Type and Source of

Capital

Traditional R&D Executers

“New”

SMEs 56% 70%

Large National Groups

13% 7%

Public Enterprises 10% 5%

Foreign Enterprises

21% 18%

100% 100%

Source: Science & Technology Observatory

“Innovation in SME’s”

11%

15%

23%

32% 18%

0%

5%

10%

15%

20%

25%

30%

35%

0% 5% 10% 15% 20% 25% 30% 35% 40%

Spending A.G.R.

11%

15%

A.G

.R o

f R

esea

rch

ers

(FT

E)

SME

Large National Groups

Public Enterprises

Foreign Enterprises

SME Groups

2001

Types of Enterprise According to Source of Capital – A.G.R. of R&D Spending and Researchers (1995 – 2001), Weight of Spending on R&D

Source: Science & Technology Observatory

“Innovation in SME’s”

Growth of Innovative Enterprises

fostered by the organisation of SME´s into Enterprise Groups

Total Small Medium LargeCIS 3 13% 6% 29% 67%CIS 2 12% 6% 17% 50%

ServicesTotal Small Medium Large

CIS 3 26% 21% 49% 76%CIS 2 19% 15% 46% 62%

Portugal

CIS3, Eurostat

Manufacturing

Enterprises that integrate an Economic Group (%)

Total Small Medium LargeCIS 3 12% 7% 30% 76%CIS 2 15% 7% 28% 73%

Spain

Enterprises that intgrate an Economic Group (%)

Spain: Processing Industry

SME Groups

“Innovation in SME’s”

Increase of the Number of Innovative Enterprises

“Innovation in SME’s”

37%

31%32%

24%

52%

37%

49%

15%

7%

4%

25%

0%

10%

20%

30%

40%

50%

60%

SME SME Groups Large National Groups Public Enterprises Foreign Enterprises Total

% Enterprises without support Distribution of Enterprises without support

Percentage of “Traditional” R&D Performers and “New” Enterprises without Public Support and their Distribution by Category

and Source of Capital

“Innovation in SME’s”

Source: OCES -Science & Technology Observatory

Intramural R&D Activity

Portugal Spain continuously engaged in intramural R&D 26,5% 47,7% occasionally engaged in intramural R&D 73,5% 52,3%

Enterprises with innovation activitiesEnterprises, engaged in intramural R&D

CIS 3

“Innovation in SME’s”

Public Support for the promotion of Cooperation towards Innovation

Group Enterprises

Suppliers Customers Competitors ConsultantsR&D

EnterprisesUniversities

State Labs., Non-Profit

Organisations

With Public Support 27% 27% 49% 46% 42% 52% 74% 72% 81%Without Public Support 73% 73% 51% 54% 58% 48% 26% 28% 19%

Total100% 100% 100% 100% 100% 100% 100% 100% 100%

Source: CIS 3; OCES(Sample File)

No Cooperation

Cooperation with:

Cooperation with National Entities

“Innovation in SME’s”

... with International Entities

Group Enterprises

Suppliers Clients Competitors ConsultantsR&D

EnterprisesUniversities

State Labs.,

Non-Profit

National27% 49% 46% 42% 52% 74% 72% 81%

EU/EFTA43% 59% 66% 78% 60% 85% 93% 75%

Source: CIS 3; OCES(Sample File)

Cooperation with:

Cooperation with National Entities and EU/EFTA - Percentage of Enterprises with Public Support

Public Support for the promotion of Cooperation towards Innovation

“Innovation in SME’s”

Distribution of Spin-offs by Founding Date

Source: OCES (preliminary data), 2006

5%

14%

26%

56%

0%

10%

20%

30%

40%

50%

60%

1980-1990 1990-1995 1995-2000 2000-2005

Nº

“Innovation in SME’s”

Distribution of Spin-offs by Founding Date and Technological Areas

10%

19%

32%

2%

16%

1% 2%

0% 2% 3%

2%0%

5%

10%

15%

20%

25%

30%

35%

1990-1995 1995-2000 2000-2005

Aeronautics / Aerospace

Environment

Mechanical and Materials Eng.

Biotechnology

ITC and Electronics

Others

Source: OCES (Preliminary data), 2006

“Innovation in SME’s”

NEOTEC Program – New Technology Based Enterprises

Application Sectors

Source: AdI, 2006

Agro, Food, Forest 13%

Transforming Industry 29%

Construction 8%

Internet 13%

Health 17%

Tourism 8%

Other Services 8%

Productive Means 96%

Consumer Goods 4%

Total 100%

“Innovation in SME’s”