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LARGE SCALE INVOLVEMENT OF SME’S
 NOT PARTICIPATING IN INNOVATION
            NETWORKS

           Murk M. V. Peutz




                 ISPIM
         New York, December 2009
          www.syntens.nl/ispim

                                   1
Introduction

              Syntens                   EU project “Toekomstbedrijven”

Not for Profit Foundation               Innovation fuels economic growth
    Supported by Dutch Ministry of      Regional economic policies aim to
    Economic affairs, EU and regional   promote clusters and innovation
    government in The Netherlands       networks
Aims to accelerate and improve          Many SME’s are thought to benefit
innovation by Small and Medium Sized    from networks, but refrain from
Enterprises (SME’s)                     participation
Acts as counsel on innovation for       The project “Toekomstbedrijven”,
SME’s, liaison for knowledge and as     (FuturizingBusinesses) aims to
innovation specialist                   increase SME participation in these
                                        network s
400 employees
                                        Project started in August 2008
                                                                              2
Project context

                              SME Population

            The EU Lisbon Agenda                           Innovators (8%)
            •More competitive economies
            •More innovation
                                                         Early followers (34%)
            •More R&D

            SME’s have low participation in
            R&D and innovation activities                Middle group (44%)


            Increasing SME participation is thought         Laggards (14%)
            to be possible in the ‘Middle Group’


Source: Ministry of Economic Affairs
                                                                                 3
Project phases

                Identification                                 Selection                   Activation


                        11.650


                                                   Already                            Potential new participants
                                                   active                             based on past conversion
                                                                              4.850
                                                                                             experience:
                                                                                              Ca. 3.000




                                                                              6.800
                                                   Potential
                                                                                                            Target
                                                                                                            2.000


                   No. companies                              No. companies                 No. companies
                   in target Group



                                                                                                                     4
Source: Chamber of Commerce, projectgroup Toekomstbedrijven
Main elements of activation phase

Experienced Syntens consultants approach SME’s
•     A first phone call is, after conversion, followed up by a ‘on site’ visit

The consultant explores opportunities in the discussion for follow up action
•     contact with potential innovation partners like other companies, university
      researchers, consultants, intermediairies

All consultants compile a company profile, containing elements such as:
•      ‘Ambition to innovate’ and ‘Willingness to change’
•      Perceived Innovation capabilities
•      Opportunities, Problems/needs
•      Referrals and Follow-up by Syntens
•      Conclusion


                                                                                    5
Status of participation by SME’s since start of project

                                                         Number of companies

                          1.472                637




                                                                  319



                                                                              104
                                                                                         412




                                             Not          Interested, but   Ongoing   Completed
                          Total
                                          Interested      to be contacted    case       case
                                                                later

Source: project controlling “De Toekomstbedrijven” October 2009                                   6
Significant impact on target group


       35% Willing to explore                                                          55% Willing to exploit

                        No. of SME’s                                                                    No. of SME’s
           1.472              956                                                          516             235          281

                                                                                                                        Conversion
                                              Conversion
                                                                                                                           55%
                                                 35%



                                                     516




       Target     Not Interested/           Work In Progress                    Work In Progress    No follow up       Follow up
       Population contacted later           and activated cases                 and activated cases   activity         activities




Source: Project Controlling “De toekomstbedrijven”, status from start project August 2008 to Oct 2009
                                                                                                                                     7
Consultant approach



   •      Informal approach
   •      Open Agenda
   •      Avoid “selling”
   •      “Lending an ear”
   •      Tailored approach
   •      Its about the entrepreneur
   •      Not about the project


                                                                   ‘It is still early, but already I find
                                                                   the contact extremely useful’

Source: interviews consultants working on “De Toekomstbedrijven”                                            8
Group profile

 Visited companies show high ambition to grow (63%) and have high
 ambitions to enter new markets (54%)
100%

 80%

 60%

 40%

 20%

  0%
                                              New
                                                         New product /      New
         Growth (size)    New markets     organizational
                                                           service       technology
                                            structure
   No         37%             46%              60%           58%           76%
   Yes        63%             54%              40%           42%           24%


                                                                                      ‘It’s refreshing to hear ideas
                                                                                      from others.’
Source: project controlling “De Toekomstbedrijven”                                                                     9
Conclusion and further research work

              Conclusion                                Further work

Chosen approach for involving a          Scientific effectiveness study is
previously not participating group       planned (pre-test post-test control
works, and project target is realistic   group design)

SME’s show high ambition and             Control group compiled at the start of
willingness to change and innovate,      the project
despite low network participation or
orientation                              Measuring innovation behavior (post-
                                         test in first half of 2010)
Willingness to change of SME is a good                  Innovation Behavior
proxy for follow up activities, many
new contacts and activities have been
initiated                                Inn. Efforts      Inn. Intentions    Inn. Results



                                                                                             10

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Futurized Businesses

  • 1. LARGE SCALE INVOLVEMENT OF SME’S NOT PARTICIPATING IN INNOVATION NETWORKS Murk M. V. Peutz ISPIM New York, December 2009 www.syntens.nl/ispim 1
  • 2. Introduction Syntens EU project “Toekomstbedrijven” Not for Profit Foundation Innovation fuels economic growth Supported by Dutch Ministry of Regional economic policies aim to Economic affairs, EU and regional promote clusters and innovation government in The Netherlands networks Aims to accelerate and improve Many SME’s are thought to benefit innovation by Small and Medium Sized from networks, but refrain from Enterprises (SME’s) participation Acts as counsel on innovation for The project “Toekomstbedrijven”, SME’s, liaison for knowledge and as (FuturizingBusinesses) aims to innovation specialist increase SME participation in these network s 400 employees Project started in August 2008 2
  • 3. Project context SME Population The EU Lisbon Agenda Innovators (8%) •More competitive economies •More innovation Early followers (34%) •More R&D SME’s have low participation in R&D and innovation activities Middle group (44%) Increasing SME participation is thought Laggards (14%) to be possible in the ‘Middle Group’ Source: Ministry of Economic Affairs 3
  • 4. Project phases Identification Selection Activation 11.650 Already Potential new participants active based on past conversion 4.850 experience: Ca. 3.000 6.800 Potential Target 2.000 No. companies No. companies No. companies in target Group 4 Source: Chamber of Commerce, projectgroup Toekomstbedrijven
  • 5. Main elements of activation phase Experienced Syntens consultants approach SME’s • A first phone call is, after conversion, followed up by a ‘on site’ visit The consultant explores opportunities in the discussion for follow up action • contact with potential innovation partners like other companies, university researchers, consultants, intermediairies All consultants compile a company profile, containing elements such as: • ‘Ambition to innovate’ and ‘Willingness to change’ • Perceived Innovation capabilities • Opportunities, Problems/needs • Referrals and Follow-up by Syntens • Conclusion 5
  • 6. Status of participation by SME’s since start of project Number of companies 1.472 637 319 104 412 Not Interested, but Ongoing Completed Total Interested to be contacted case case later Source: project controlling “De Toekomstbedrijven” October 2009 6
  • 7. Significant impact on target group 35% Willing to explore 55% Willing to exploit No. of SME’s No. of SME’s 1.472 956 516 235 281 Conversion Conversion 55% 35% 516 Target Not Interested/ Work In Progress Work In Progress No follow up Follow up Population contacted later and activated cases and activated cases activity activities Source: Project Controlling “De toekomstbedrijven”, status from start project August 2008 to Oct 2009 7
  • 8. Consultant approach • Informal approach • Open Agenda • Avoid “selling” • “Lending an ear” • Tailored approach • Its about the entrepreneur • Not about the project ‘It is still early, but already I find the contact extremely useful’ Source: interviews consultants working on “De Toekomstbedrijven” 8
  • 9. Group profile Visited companies show high ambition to grow (63%) and have high ambitions to enter new markets (54%) 100% 80% 60% 40% 20% 0% New New product / New Growth (size) New markets organizational service technology structure No 37% 46% 60% 58% 76% Yes 63% 54% 40% 42% 24% ‘It’s refreshing to hear ideas from others.’ Source: project controlling “De Toekomstbedrijven” 9
  • 10. Conclusion and further research work Conclusion Further work Chosen approach for involving a Scientific effectiveness study is previously not participating group planned (pre-test post-test control works, and project target is realistic group design) SME’s show high ambition and Control group compiled at the start of willingness to change and innovate, the project despite low network participation or orientation Measuring innovation behavior (post- test in first half of 2010) Willingness to change of SME is a good Innovation Behavior proxy for follow up activities, many new contacts and activities have been initiated Inn. Efforts Inn. Intentions Inn. Results 10