Global Case Studies#: With Aforementioned Principles

MSME Sector in India

Part 31

The Small Business Innovation Research (SBIR) program, USA

Exhibit 1: The Small Business Innovation Research (SBIR) program, USA

A highly competitive program aimed at developing research potential and engagement among domestic small businesses, with the potential for commercialization. Through a competitive awards-based program, SBIR enables small businesses to explore their technological potential and provides the incentive to profit from its commercialization. It is a double win as high-tech innovation is stimulated and the United States gains entrepreneurial spirit.

Innovation as a Catalyst for MSME growth

The program is structured in three phases: a) The objective of phase 1 is to establish technical merit, feasibility, and commercial potential of the proposed R/R&D efforts. b) The objective of phase 2 is to continue the R/R&D efforts initiated in Phase I. Funding is based on the results achieved in Phase I and the scientific and technical merit and commercial potential of the project proposed in Phase II. c) The last phase is for the small business to pursue commercialization objectives resulting from the Phase I/II R/R&D activities.

Clustering Approach, Brazil

Exhibit 2: Clustering Approach, Brazi

Brazil’s share of global trade in leather shoes rose from 0.5% in 1970 to 12.3% in 1990.The export Production doubled every three and a quarter years for the nation. Within Brazil the most dynamic export performance came from the state of Rio Grande de Sul (specifically from small towns of Sinos Valley) which, although accounting for only 30% of Brazil’ s total leather shoe production, manufactured 80% of its shoe exports. The 1,800 odd firms, and 150,000 persons within a radius of 50 kms in Sinos Valley’s shoe sector collectively exported close to US$ 1billion a year (in 1995).

Innovation as a Catalyst for MSME growth

The core of the success lay in the clustering principle, encompassing backward, forward linkages and local support institutions. The local competition encouraged some element of efficiency, which provided the predominantly small firms of the cluster with significant external economies. Wholesalers provided technical and organization advice and skills. Local support institutions built for facilitating technical and skill capacities along with global market access.

The European Cluster Collaboration Platform

Exhibit 3: The European Cluster Collaboration Platform

The platform provides high-quality, on-line information and networking support for clusters. The idea is to assists clusters to improve their performance and competitiveness through the development of transnational and international information and business cooperation network. A new online portal has been established that bridges gap between cluster players from the same or a different sector to facilitate inter cluster cooperation. It also builds itself as a business networking site – almost the “LinkedIn” for cluster organizations.

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