The Conversion of Knowledge into new Businesses.

1. The Conversion of Knowledge into new Businesses. The European Days of the Entrepreneur Sofia 4-5 November 2004

2. Boosting ERA……………….. • Barcelona: EU Members to increase R&D investments up to 3% of the GDP • Lisbon: make the European economy the most competitive knowledge based economy in the world.

3. National Governments & the exploitation of knowledge……. • Horizontal & Vertical ERA NETs : VALOR • EUREKA: Clusters & Knowledge based sme’s in the European Business Area. • Correlation

4. SMEs in Europe………………………..SMEs in the US • Europe: • sme’s 65 % contribution to GDP • Large firms: 20% comes from sme’s/80% from mergers • US: • Sme’s 45% contribution to GDP • Large firms 75% come from young fast growing sme’s

5. Two of the Key Issues in ERA……………….. • Getting more & sustainable knowledge based SME’s • Provide them with the market and the means to make them really grow.

6. Emphasis in Dutch Innovation Policy……………… • The Conversion of Knowledge via the generation of New Technology Based Firms should be improved • International technological Collaboration to be reinforced in Cluster Projects, in SME driven projects.

7. Knowledge conversion……………………………………….some Dutch data • 45000 start up’s per annum; • 3%/1200 technology oriented • 25%/300 get into the market place • 50%/150 are sustainable and survive the “three year threshold”.

8. NTBF’s …………..where do they come from? • Bigger Companies • Universities, Knowledge Institutes • R&D Programs

9. Dreamstart • A Public Private Foundation for 4 Years • 10 mln Dutch Guilders • Aimed at Knowledge Conversion • Soft Assistance • Financial Support to start Up’s. • Paving the Way for a Dutch Start up Program

10. Valorisation Identification Breeding Growing up Company Business plan First growth (fast) growth Tracking&tracing Assesing the concept Proof of concept Screening Development & marketingof new products IPR Project/product Proof of principle Proof of product Development & marketing Cash flow Bank Pre-seed Seed finances Universities Business Angel VC Universities, Companies Research inst. Inventors Accelerator Company building Incubator Instruments Science&Technology Product/market Development

13. EUREKA Key Characteristics…………… • International High Tech/Medium Tech Project Collaboration • Initiated by Companies in a Bottom Up Way • Close to the Market • Umbrellas, Individual Projects, Clusters. • Project Value: 22 Bn Euro’s • 33 Members plus the European Commission

14. EUREKA……………………Funding a Key Issue • National Project Funding decreasing, no earmarked Budgets anymore • National Mechanisms high tech oriented, not fit for medium tech close to the marketplace • Heavy Competition with National Projects • Funding Volume is not the Problem, the targeting is.

15. The present Dutch Chair in EUREKA………………………….. • Restoring the national funding Basis for EUREKA Projects to again make it a building Stone for ERA. • Re-establish a sound Collaboration with the Commission in: • Umbrellas/Clusters/ETP’s • Umbrellas and ERA NETs

16. The present Dutch Chair in EUREKA…………………………. • To create Incentives for Industry to start new ambitious Initiatives on Themes like Health, Food & Nutrition • Boosting SME Participation and Cluster Projects • To make technology flow into new Products, Processes and services • Thus converting Technology into Business • Contributing to Barcelona in a borderless Approach via EUREKA.

17. SME participation in E! projects

18. EUREKA • Perfectly fit to better support sme’s in Europe • Perfect Match to European ERA Initiatives like VALOR.