SUMMARY

This publication is based on the survey «Innovation processes in small business" performed by the Russian SME Resource Centre. Within the framework of the survey, innovation processes were considered as purposeful changes in all entrepreneurial activities which foster small business development in the chosen direction, following specific mechanisms, and bring expected results. All the main aspects of SMEs activities were considered in terms of innovations.

The goal of the survey was to analyse the current state, development tendencies in innovations in SMEs and to suggest recommendations for their intensification. The objects of the survey were small enterprises and organisations which support and assist innovations. The information basis of the survey was formalized and non-formalized interviews with SME managers involved in innovative activities. In December 1998 – January 1999, 25 interviews were conducted in Moscow with general managers of specially selected small enterprises, representatives of governmental, non-governmental and commercial companies. Besides, filled-in questionnaires were collected from 282 entrepreneurs (general managers of companies). Sampling by sector was made proceeding from the goals of the survey. One fourth of the respondents were enterprises specialized in product and process innovations; 40% of the respondent SMEs were involved in industrial production. Besides, the sampling represented trade and catering companies and companies providing communal services.

The object of the survey reported in the first part of the publication is innovative small business as a separate activity as well as processes of innovative technological development of industrial SMEs. Legislative basis that regulates SMEs access to innovations was studied, as well as activities of organisations which support and assist product and process innovations in small business. Special attention was paid to importance of innovations in technology for business development, attitude of entrepreneurs to innovations, problems of implementing innovations and their results. Activities of innovative SMEs were analyzed in terms of the goals, mechanisms, enterprise establishment, results and prospects.

The second part of the publication deals with problems, practice, results of innovations in SME management. Proceeding from general requirements to company organisation, structure, management in order to ensure SME efficiency, a system of indicators which reflect rational SME management was suggested which allows one to measure to what extent the SME is innovative. The analysis of actual processes in SME management provided answers to some key questions, such as adequacy of organisation, structure and mechanism of SME management to meet the needs of market economy and transitional period, evaluation by entrepreneurs of the value of effective management for business development, the need, opportunities problems and results of innovations in SME management.

The third part of the publication is focused on studying the practical usage of the main marketing elements in the development of SME market strategy and SME actual life on the market. In relation to the main conditions and results of SME activity, SME behaviour on the market was analysed so as to reveal its typology in terms of active and passive measures, specific features of the management, goals of the entrepreneurs. At all the stages of the analysis the emphasis was made on the practice and results of innovations in the market policy of SMEs.

The fourth part of the publication provides detailed information on the programs, implemented and planned for implementation in EU countries in the framework of the all-European policy of support of innovations in small business.

Annex 1 lists federal legislative acts which regulate innovation activities in the Russian Federation.

Annexes 2-5 deal with financing innovations in EU, intellectual property right protection, establishment and work of new technology based companies, the role of information and training in implementing innovations in Europe today.

Each section of the book besides the description of the current state, problems and prospects for innovations in small business contains suggestions for local governments, business support organisations, organisations within the market infrastructure, general managers of SMEs that foster intensification of innovations in small business.

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