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Enhancing the Innovative Performance of Firms

33

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Active cooperation in the activities of the network.

Some lessons can be drawn from recent practice in public programmes supporting networks:

Presence of a formal organization structure: This is meant to encourage the formation of a long-term sustained relationship that supports mutual trust. Informational resources can be provided by the public sector to promote these structures, but concrete arrangements should be left to the participants.

Bottom-up support: Programmes that support existing or emerging self-organizing networks (a bottom-up approach) tend to give better results than those that reflect “top-down” technological priorities.

Long-term: Building trust takes time; so long periods of support and institutional stability are essential. Insufficient coordination of initiatives and a volatile funding and institutional setting are particularly damaging for network-oriented policies.

Tailor-made: Programmes need to take into account the different needs, incentives and capabilities of participants. This implies, for example, paying particular attention to the needs of SMEs.

C. The role of the business environment

The different dimensions of the business environment have a significant influence on the formation of new companies and their ability to develop innovative, risky activities (Box C2.3.). Where the burden of bureaucracy is low, there is a higher business formation rate and better opportunities for business development. Removing bureaucratic barriers to the formation and operation of enterprises (including employment legislation) would have a positive impact on innovation.

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