I N S T R U M E N T E S T R U C T U R A L E I N R O M A N I A 1 Structural Instruments in Romania Conference Workshop no. 3 – Improving Economic Competitiveness by Building the SME Base Experience of Ireland Dr Jim Fitzpatrick Managing Director Tel: Fitzpatrick Associates, Economic Consultants Fax: Ranelagh Village Dublin 6 Web:

I N S T R U M E N T E S T R U C T U R A L E I N R O M A N I A 2 SME role in Irelands Celtic Tiger Use of EU Structural Investments Some Lessons for Romania? CONTENTS

I N S T R U M E N T E S T R U C T U R A L E I N R O M A N I A 3 PRODUCTIVE SECTOR PERFORMANCE, Full-time Employment in Financial and Other Internationally-traded Services Value of Manufactured Exports Indigenous Software Jobs

I N S T R U M E N T E S T R U C T U R A L E I N R O M A N I A 4 IRELAND – NATIONAL POLICY DOCUMENTS ight/ SDownloads.shtml tourism.gov.ie/pdfs/tourism_review_report. pdf ge_economy.pdf nce/2006/sciencestrategy.pdf

I N S T R U M E N T E S T R U C T U R A L E I N R O M A N I A 5 COMPETITIVENESS OPERATIONAL PROGRAMMES* Research, Development, Innovation (%) 501(11%) (%) 2,300(51%) Enterprise Support3,125(71%)1,700(38%) Marketing Support 552(13%) 358(8%) Sea Fisheries 233(5%) 132(3%) Total4,411100%4,488100% Breakdown by Core Priority (total EU and co-financed) * Industry Operational Programme , Priority of the Productive Sector Operational Programme

I N S T R U M E N T E S T R U C T U R A L E I N R O M A N I A 6 PRODUCTIVE SECTOR OPERATIONAL PROGRAMME Priority/Measure NDPSFNDPSF mn% % % % 1. RTDI 2,30051%24085%50111%26926% 1.1 Education68415%5520% 1.2 Industry RTDI1,37631%18566% 1.3 Agriculture RTDI611%00% 1.4 Food Institutional Research601%00% 1.5 Marine RTDI531%00% 1.6 Forest Research and Development Programme120%0 1.7 Environment RTDI501%00% 2. Industry1,70038%00%3,12571%58357% 2.1 Indigenous Industry44010%00% 2.2 Food Agriculture Products1654%00% 2.3 Seafood Processing782%00% 2.4 Film Industry611%00% 2.5 Gaeltacht Areas2856%00% 2.6 Foreign Direct Investment67015%00% 3. Marketing3588%00%55213%9910% 3.1 Industry Marketing1%0% 3.2 Food Marketing672%00% 3.3 Seafood Marketing80%0 3.4 Tourism Marketing2004%00% 4. Sea Fisheries Development1323%4215% 4.1 Adjustment of the Fishing Fleet70%52% 4.2 Supporting Measures for Fisheries Development311%186% 0% 4.3 Renewal & Modernisation of the Fishing Fleet952%207% Other %727% Total4,488100%282100% 4,411100% %

I N S T R U M E N T E S T R U C T U R A L E I N R O M A N I A 7 SOME KEY PARAMETERS OBJECTIVES: shift from employment creation to value-added DELIVERY AGENCIES: mainly existing specialist state agencies ELIGIBILITY: generally manufacturing and internationally traded firms (i.e. exports or export potential) FORMS OF FINANCE: mostly non-repayable grants, some equity (preference shares) DEADWEIGHT: part of consciousness of selection committees APPROVAL CRITERIA: Programme Complements PROJECT GENERATION/SELECTION: agency development staff help applicants, separate committees approve MONITORING: project level – grants payable for agreed milestones programme level – inputs, outputs, results, impact ideally

I N S T R U M E N T E S T R U C T U R A L E I N R O M A N I A 8 PRINCIPAL IRISH PRODUCTIVE SECTOR DEVELOPMENT AGENCIES - SUMMARY

I N S T R U M E N T E S T R U C T U R A L E I N R O M A N I A 9 SOME LESSONS dont forget the SME sector be selective, focus on potential high performers separate national competitiveness from regional/local development objectives have good enterprise advice/support structure Structural Instruments not enough, need a generally entrepreneurial climate