1. Innovative Approaches to the SME sector A Microsofts perspective Wilfried Grommen General Manager, Business Strategy Microsoft EMEA wilgrom@microsoft.com July 12th, 2006 WIPO INSME seminar

2. Todays themes ICT as an enabler A knowledge economy Access to Finance Microsoft in CEE

3. Building a knowledge economy Growth Realizing Potential … of individuals, businesses, communities, nations Knowledge Economy Learning Productivity Innovation S US T A I N A B L E D E V E L O P M E N T

4. The role of software: economic impact Our business model Develop low-cost software Provide a platform for other developers Respect intellectual property rights

5. The role of software: economic impact IT Producers (Hardware & software) Local channel & service firms Local end user IT organisations 7.9 million 9.4 million IT Market size EU + 3 (2005)ICT Spend (2005 - 2010) ICT-related employment (2005 - 2010)ICT-related tax revenues (2005 - 2010)

6. The role of software: productivity

7. 7 Ukraine Ministry of Finance Budget management Everest consulting Hungary Ministry of Finance Budget management Croatia Croatian Railways Mobile ticketing CITUS grupa & KING-ITC Croatia Podravka Rights Management eVision Information Systems Slovakia Euro Media Web-based business AutoCont a.s. Slovakia Czech Rep Ahold Central Europe IT Infrastructure Latvia Government eProcurement Rix Technologies Baltic States Eurovaistines ERP & Accounting SONEX SISTEMOS UAB Slovenia Government eTax Hermes Softlab Serbia Development Centre

8. Creating skilled workers and educated citizens By 2010 training and access to technology for: 250 million Worldwide 20 million in Europe Partners in Learning Initiative launched in 101 countries Unlimited Potential Slovenia 22 CTLCs Croatia 21 CTLCs Czech Republic 26 CTLCs

9. Sparking innovation Intellectual property is a basis for differentiation IP-based business models attract further investment (E.g. Agreement SCC) Remove the value of IP and the incentive to innovate disappears E.g. Development Center Belgrade R&D in universities & companies Intellectual property (IP) Re-investment Into R&D ProductsTaxes, profit Sales

10. Helping SMEs access to grants: EUGA ChallengesEUGA Contribution Improve relevance between EU Grants and SMB needs Building Consortiums to support Governments in defining the most appropriate Grant Programs: IT Players (Intel, HP,…) Telcos Banks Chambers of Commerce, Business Associations 45% Awareness among SMB EU Grants web portals 19 EU countries with local content and language Selection of the Right Grant … out of 10.000 available Web Based tools Grant database permanently updated Friendly Search Engine Grant Alerts Complexity and time required to fill a Grant Application Low Application Rate: 4% of SMBs apply for Grants… … and when applying, 25% success rate… … So only 1% of the available funds are leveraged Personalized Free Consultancy Support through: Local Agencies covering 19 countries 350 consultants supporting users: Preparing application package : Business Plan, Project Memorandum, Investment Justification, etc Submitting the Application Package on behalf of SMBs Follow-up the application until resolution, approval and payment

11. True Public-Private Best Practice More than 100 Consortium Members engaged in 19 countries Osuuspankki Bank Telekomunikcja Polska Dr. Mitterlehner Austrian Chamber of Commerce Vice General-Secretary and Austrian Member of Parliament EU Brussels: Gunter Verheugen (EU Vice-president and Commissioner DG Enterprise) I am extremely grateful to Microsoft for EUGA Quote from Jose Manuel Barosso (Feb 2006): Developing Europe as an innovative, knowledge-based economy is the key that will open the door to a competitive Europe. Innovation is forward-looking. It plays to our strengths. It is a key driver for competitiveness, and in particular to maintain competitive advantage in a global economy. Access to finance….is a prerequisite for making the most out of innovation. The first goal of the Competitiveness and Innovation Programme is to free up obstacles for SMEs, including…..access to finance SMEs are the best vehicles for job creation – we know that innovation is the best way to create jobs. The SME innovation potential is underexploited. Better access to …..finances can all help SMEs on the road to innovation.

12. UK Belgium Denmark Finland Ireland Austria Greece Portugal Czech &Slov France Netherlands Italy Germany Hungary Poland - UK Belgium Denmark Finland Ireland Sweden Austria Greece Portugal Czech / Slovakia France Netherlands Italy Germany Hungary Poland Spain EUGA projects update In preparation Filed 835 projects (+39) (+34) 495 projects 340 projects 908 200 projects approved 534 374 28 projects rejected (+ 73) April 06Mar 06 Slovenia EUGA fully operating in 19 countries in EMEA Projects: 908 grants application projects Total Projects Investment: $460M 113,832 SMEs stand to benefit 95,000+ people should be trained 1000 $

13. Microsoft in Central & Eastern Europe Across the entire EMEA region Microsoft has: Over 250,000 partners 33,000 Independent Software Vendors (ISVs) 97,000 Resellers & System Integrators (RSIs) Over 12,000 employees Offices in 61 countries

14. In closing Collaborating with local partners Working with governments Helping businesses Preparing society

15. Thank you