1. III ASTANA ECONOMIC FORUM INTERNATIONAL INNOVATIVE CONGRESS Innovative potential development in SME`s in region Dr. Karl-Heinz Klinger Technostart GmbH, Berlin klinger@technostart.de

2. Innovative potential development in SME`s in region Who is Technostart Technostart is my private spin-off consulting company, founded 1990 from research ministry. We have specific experiences in innovation policy, regional infrastructure, technoparks, cluster and innovative SME`s Features of innovative SME`s SMEs exhibit a high degree of flexibility, constitute an important source of technological innovation and adaption of technologies to regional situations. SMEs show great diversity, which allows them to exploit new market niches that are uneconomical for larger enterprises.. Compared with larger enterprises, SMEs have the potential for better geographical distribution, which promotes more balance industrial development. As production becomes more and more networked, SMEs can provide innovative inputs for larger enterprises. SMES are better able than larger enterprises to adapt the local situation and fully exploit existing social capital. SMEs can create jobs with low capital investment. SMEs are important in producing qualified human resources.

3. Innovative potential development in SME`s in region 2 Main Problems of innovative SME`s In all phases of development exist objective risks Technical risks from the novelty Market risks – reaction of competitors and clients not predictable Finance risks – high capital needs till selling new products (1-3 years ) SMEs have a good chance of survival and growth if they are hatched in a favourable regional environment (effective basis infrastructure, the availability of a skilled workforce and modern system of laws). when they are a part of more complex systems of relations (networks, industrial parks and technoparks, clusters etc.). Promoting the growth of such systems (which may include large enterprises, other SMEs, suppliers of training services, financial institutions, business service agencies, industrial promotion institutions etc.) will have a direct impact on the „probability“ of success. The existence of these networked systems, in effect, makes available resources and expertise facilitate the abilities and capacities such as access to credit and general technologies the opportunity to benefit from technical support from other enterprises the existence of a consulting network.

4. Innovative potential development in SME`s in region 3 Actual experiences from a EU–project in neighbouring region (RB) 1. Development and Implementation of the Regional Innovation Strategy Review of republican legislation in the sphere of innovation and investment policies and Review of the status of the research and production spheres, ties between industry and science Design of the “Regional Innovation Strategy”” including an action plan for its implementation Definition and creation of structures and organisational mechanisms for the functioning of the innovation infrastructure (two technoparks) Establishment and further development of co-operative structure organizations (research institutions, educational institutes, industrial enterprises, financial and investment companies, etc.) involved in the innovation process Proposal for stable business and scientific ties with the neighbouring regions and with EU countries

5. Innovative potential development in SME`s in region 4 2. Design of the Republic Target Program on Innovation 2008-2010 as starting point for the implementation of the Innovation Strategy and the establishment of the innovation system (2011 till 2015 under construction) 3. Developing of Cluster policy and creating of cluster initiatives in the fields of -Machine tool industry -Wood economy -Tourism and health economy -Pharma production Main criterias for developing of Clusters are definition of unique targets by the government, tender, competition, voluntariness and co-payment by the companies 4. Developing of “pilot regions” for modernization