Structural Instruments in Romania

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• 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 353 1
4966008 Fitzpatrick Associates, Economic
Consultants Fax
353-1-4966028 122 Ranelagh Village
e-mail jfitzpatrick_at_fitzpatrick-associ
ates.com Dublin 6 Web
www.fitzpatrick-associates.com
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CONTENTS

• SME role in Irelands Celtic Tiger
• Use of EU Structural Investments
• Some Lessons for Romania?

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PRODUCTIVE SECTOR PERFORMANCE, 1995-2004
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IRELAND NATIONAL POLICY DOCUMENTS
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COMPETITIVENESS OPERATIONAL
PROGRAMMES
Breakdown by Core Priority (total EU and
co-financed)
1994-99 2000-06
Research, Development, Innovation () 501 (11) () 2,300 (51)
Enterprise Support 3,125 (71) 1,700 (38)
Marketing Support 552 (13) 358 (8)
Sea Fisheries 233 (5) 132 (3)
Total 4,411 100 4,488 100

Industry Operational Programme 1994-99,
Priority of the Productive Sector Operational
Programme 2000-06
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PRODUCTIVE SECTOR OPERATIONAL
PROGRAMME
Priority/Measure 2000-2006 2000-2006 2000-2006 2000-2006 1994-1999 1994-1999 1994-1999 1994-1999
NDP NDP SF SF NDP NDP SF SF
mn mn mn mn
1. RTDI 2,300 51 240 85 501 11 269 26
1.1 Education 684 15 55 20
1.2 Industry RTDI 1,376 31 185 66
1.3 Agriculture RTDI 61 1 0 0
1.4 Food Institutional Research 60 1 0 0
1.5 Marine RTDI 53 1 0 0
1.6 Forest Research and Development Programme 12 0 0 0
1.7 Environment RTDI 50 1 0 0
2. Industry 1,700 38 0 0 3,125 71 583 57
2.1 Indigenous Industry 440 10 0 0
2.2 Food Agriculture Products 165 4 0 0
2.3 Seafood Processing 78 2 0 0
2.4 Film Industry 61 1 0 0
2.5 Gaeltacht Areas 285 6 0 0
2.6 Foreign Direct Investment 670 15 0 0
3. Marketing 358 8 0 0 552 13 99 10
3.1 Industry Marketing 1 0
3.2 Food Marketing 67 2 0 0
3.3 Seafood Marketing 8 0 0 0
3.4 Tourism Marketing 200 4 0 0
4. Sea Fisheries Development 132 3 42 15
4.1 Adjustment of the Fishing Fleet 7 0 5 2
4.2 Supporting Measures for Fisheries Development 31 1 18 6 0
4.3 Renewal Modernisation of the Fishing Fleet 95 2 20 7
Other 0 0 0 0 233 5 72 7
Total 4,488 100 282 100 4,411 100 1023 100
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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

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PRINCIPAL IRISH PRODUCTIVE SECTOR
DEVELOPMENT AGENCIES - SUMMARY
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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