Skills for self employment

This small scale, explorative research study looks at the hitherto relatively under-researched question of the role of skills and training in the development of self employment. It draws on a literature review, data analysis from the Labour Force Survey, and a series of expert interviews. We summarise here the main findings from the research and, where appropriate, we highlight possible policy implications of those findings, although given the small scale, exploratory nature of the study, some of these issues would benefit from further investigation(and the report highlights possible avenues for new research to fill these gaps: see section 6.7). In thinking about policy we do not, for the most part, recommend specific interventions. Rather we highlight the kinds of considerations that policy-makers should be aware of when designing interventions" -- page i (Evidence Report). "This Annex presents an analysis of Labour Force Survey data, to provide descriptive statistics on the nature and extent of self-employment in the UK" -- page 1 (Annex)

New venture internationalisation and the cluster life cycle: insights from Ireland’s indigenous software industry

The internationalization of new and small firms has been a long-standing concern of researchers in international business (Coviello and McAuley, 1999; Ruzzier et al., 2006). This topic has been re-invigorated over the last decade by the burgeoning literature on so-called ‘born globals’ (BG) or ‘international new ventures’ (INV) – businesses that confound the expectations of traditional theory by being active internationally at, or soon after, inception (Aspelund et al., 2007; Bell, 1995; Rialp et al., 2005). Until quite recently, this literature had not really considered how the home regional environment of a new venture might influence its internationalization behaviour. However, a handful of recent studies have shown that being founded in a geographic industry ‘cluster’ can positively influence the likelihood of a new venture internationalizing (e.g., Fernhaber et al., 2008; Libaers and Meyer, 2011). This chapter seeks to build on these recent contributions by further probing the relationship between clusters and new venture internationalization. Specifically, taking inspiration from recent work in the thematic research stream on clusters (which spans the fields of economic geography, regional studies and industrial dynamics), the chapter explores how the emergence and internationalization of new ventures might be affected by the ‘cluster life cycle’ context within which they are founded. This issue is examined through a revelatory longitudinal case study of Ireland’s indigenous software cluster. The study investigates the origins and internationalization behaviour of ‘leading’ Irish software ventures but, in contrast to many existing studies, it seeks to understand these firms within the context of the Irish software cluster’s emergence and evolution through a number of ‘life-cycle’ stages

European Regional Science: Between Economy of Culture and Economy of Catastrophes (Review of the ERSA 2005 Amsterdam Congress Reports)

ERSA Congress can be seen as laboratory of ideas with broad representation not only European, but also scientists from US, Japan, Korea, Brazil, African and Asian countries. With very high speed new thoughts and phenomena from the European regional scientific community appear on the stages of the ERSA annual Congresses. Three new features were characteristic for the 2005 ERSA Congress in comparison with the previous ones. First, special focus on the factors of density in the regional development. That was not surprising as the meeting was held in the city of Amsterdam with the highest density in Europe where land and space are scarce goods. Second, integrative tendencies in attempt to use natural factors to explain traditional phenomena of the regional science. Issues of land and water management coincide with economic growth and regional development in many reports. Third, for the first time theme of networks and network society was embedded in many sections of the Congress and in the very title of the Congress itself. All these aspects as participants demonstrated could be positive creative factors increasing cultural assets of the European regions, efficiency of the knowledge transfer, leisure activities; or negative as the source of disaster and risk for human beings. Density factors (lack of people or lack of space?) divide European regional science into two sciences – urban for the populated regions and regional for the territories scarcely populated with very different themes, methods and tools of research. Housing markets, urban sprawl and commuting patterns are popular topics in the first case; labour markets and human capital in the second case. New Economic Geography models work smoothly in the first regions but are inappropriate in the second. Competition is harder in the labour markets of the populated regions but is softer in the regions with scattered population where it is substituted by the forces of cooperation. Contemporary regional society can be sustainable only as network society. In the reports networks were examined on different levels: a) as transportation networks in the investment national or interregional projects; b) as policentricity urban structures replacing Cristaller’s hierarchy of central places; c) as public-public, public-private partnerships combining public and private stakeholders in the decision-making process. Transition of the European regions from the industrial to network/service has begun 25 years ago. Position of the concrete region on this route determines clearly the type and intensity of its problem and research agenda. The more advanced is the region or nation on this route the more often terms like “reinventâ€, “rethinkâ€, “revisited†are used in the scientific community. Rediscovery of the old concepts, definitions, essence (as Amsterdam Congress demonstrated) is very creative and challenging process of the post-industrial regional science.

Regional Learning Networks in Medium-Tech Technologies and European Integration

The paper aims at investigating the transfer of tacit knowledge both at the regional and at the interregional level and it focuses on the factors and forms of the processes of interactive learning between small and medium size in medium technology sectors. The analysis proceeds from the contributions of four strands of literature, focusing on economics of agglomeration, cognitive economics, industrial strategic alliances and governance in a knowledge economy. While industrial economics interprets technology spill-over at the local level as an automatic and chaotic process allowed by geographical proximity of the firms, regional economics identifies different specific types of flows and networks, which link together in an organized way the various firms and other private and public actors within a given regional innovation system. Cognitive economics may bring a significant contribution, as it considers the relevance for economics of human cognitive aspects and it discovers the key role in the creation of new ideas of selected factors, such as the stimulus by changes in the external environment, the process of “neurognosis†or negative reaction aiming to the protection of the internal integrity, the search process constrained by cognitive proximity, the success in pattern making and the achievement of consistency and compatability, the process of “exaptation†or reconversion leading to path-dependency, the creation of new connections and routines and institutions, which allows to save the limited cognitive capacity of individuals and organizations. This theoretical framework in the analysis of the processes of knowledge creation may be schematically represented through the model of “Territorial Knowledge Managementâ€, which aims at promoting the interactive learning processes within the regional innovation systems and focuses on a selected list of knowledge levers, such as: market orientation, accessibility, receptiveness, common identity, creativity and governance. On the base of these theoretical concepts and tools, the paper analyses various case studies of firms embedded in different industrial clusters in Europe, focusing on the forms of the process of interactive learning and innovation between the various regional actors. Finally, the paper attempts to derive from that analysis useful indications for the possible extension of knowledge and innovation networks at the interregional and international level and for decreasing the regional divide in a modern knowledge economy. The research has been undertaken within the framework of the project: “IKINET – International Knowledge and Innovation Network†(EU FP6, N° CIT2-CT-2004-506242). Keywords: knowledge creation, interactive learning processes, industrial clusters, innovation policies, European integration, medium technology sectors, small and medium size firms.

The uses of qualitative data in multimethodology:Developing causal loop diagrams during the coding process

In this research note we describe a method for exploring the creation of causal loop diagrams (CLDs) from the coding trees developed through a grounded theory approach and using computer aided qualitative data analysis software (CAQDAS). The theoretical background to the approach is multimethodology, in line with Minger’s description of paradigm crossing and is appropriately situated within the Appreciate and Analyse phases of PSM intervention. The practical use of this method has been explored and three case studies are presented from the domains of organisational change and entrepreneurial studies. The value of this method is twofold; (i) it has the potential to improve dynamic sensibility in the process of qualitative data analysis, and (ii) it can provide a more rigorous approach to developing CLDs in the formation stage of system dynamics modelling. We propose that the further development of this method requires its implementation within CAQDAS packages so that CLD creation, as a precursor to full system dynamics modelling, is contemporaneous with coding and consistent with a bridging strategy of paradigm crossing

The Role of Clusters in Knowledge Creation and Diffusion – an Institutional Perspective

Clusters and networks have received renewed attention in recent years not only as a tool for regional development in general but as an institution of knowledge creation and diffusion between the knowledge infrastructure of a region and the firms within the clusters. They are therefore often regarded as geographically condensed forms of economic cooperation and knowledge exchange. The recent renaissance of interest in institutions as a factor shaping economic performance has therefore also implications for the creation and sustained existence of clusters and networks as a tool for knowledge management and as learning organisations within and across regions. This institutional perspective serves to identify additional factors influencing economic behaviour leading to cooperation. Different strands of institutional thinking –institutions as “social technologies” in the tradition of evolutionary economics, clusters as a form of Coase institution integrating positive external effects of technological knowledge, the importance of knowledge sharing in the context of the “New Institutional Economics” – emphasize that connectivity cannot be effectively coordinated by conventional markets. Clusters and networks are among the non-market devices by which firms seek to coordinate their activities with other firms and other knowledge-generating institutions. But it is also important to emphasize that clusters as coordinating institutions are not automatically just there but that they are the result of an evolving process shaped by policy activities and entrepreneurial behaviour responding to new challenges. Clusters as social technologies are co-evolving with new physical technologies and are therefore in constant need to change themselves. They can be regarded as an answer to the problems of achieving agreement and coordination in a context where there is a collective interest. They combine different additional elements that are important for regional development and economic growth.

The National Systems of Innovation Approach and Innovation by SMEs

The National Systems of Innovation (NSI) approach is a young but successful approach to help to understand how innovation and interactive learning evolve in national economies and how they propel economic prosperity and international competitiveness. The NSI approach has been embraced by policy makers all around the world, because this approach offers them the potential to derive more appropriate leads for innovation policy. In the Netherlands too, the drafting of innovation policy is increasingly based on the NSI concept. The main aim of this study is to add to the understanding of the NSI approach. The research questions addressed in this study include: What are the main concepts, value added and shortcom-ings of the approach? And: How does the NSI approach offer policy makers the potential to derive more appropriate leads for innovation policy towards SMEs?

Constructs of Successful and Sustainable SME Leadership in East Africa

Despite the markedly increased foreign investment, East African economies remain characterized by low levels of investment and capital formation with high level of attrition amongst indigenous small and medium enterprises. While there is a high failure rate amongst these SMEs, some are beginning to turn the corner and are exhibiting signs of robustness, innovativeness and sustainability. Relying on narrative accounts of successful SMEs leaders in Kenya and Uganda obtained through interviews and focus group discussions, this study sought to construct an account of leadership practices and ascriptions of success for SMEs that had succeeded. The study identified eight leadership constructs characteristic of successful SME leaders in Kenya and Uganda grouped into visioning, building commitment, social capital, personal values, anticipation and resilience, resourcefulness, responsiveness, and entrepreneurial orientation. While these results, on the face value, are apparently not unique, it was in the nuances of the leadership practice that difference was made. In conclusion, the study highlights implications for these findings in relation to policy and leadership practice among SMEs

Japan's silver market: creating a new industry under uncertainty

It has often been asked whether today´s Japan will be able to move into new and promising industries, or whether it is locked into an innovation system with an inherent inability to give birth to new industries. One argument reasons that the thick institutional complementarities among labour, innovation, and finance among its enterprises and the public sector favour industrial development in sectors of intermediate uncertainty, while it is difficult to move into areas of major uncertainty. In this paper, we present the case of the silver industry or, somewhat more prosaically, the 60+ or even 50+ industry, for which most would agree that Japan has indeed become a lead market and lead producer on the global market. For an institutional economist, the case of the silver industry is particularly interesting, because Japan´s success is based on the cooperation of existing actors, the enterprise and public sector in particular, which helped overcome the information uncertainties and asymmetries involved in the new market by relying on several established mechanisms developed well before. In that sense, Japan´s silver industry presents a case of of what we propose to call successful institutional path activation with the effect of an innovative market creation, instead of the problematic lockin effects that are usually associated with the term path dependence