Ambiguity, Imitation, and Innovation : Notes on the Conceptual and Operational Facets of the EU Approach to Entrepreneurship Policy

Presents an overview and analysis of theconceptual basis and the main policy-design principles of the European Union(EU) approach to entrepreneurship policy, which includes small and medium-sizedenterprises (SMEs), innovation, and competitiveness.The first stages ofpolicydevelopment - conceptualization and operationalization - areemphasized. A source of ambiguity and confusion in EU policy is defining therelationship between entrepreneurship and SMEs, and between entrepreneurship aspsychological dimension, economic process, and social organization. The conceptual and programmatic background for EU enterprise policy includesanincreasing shift toward creating favorable "frameworkconditions" for businesses, and a quantitative targets strategy forpromoting SMEs. Comparison with the United States has become a referencepoint for identifying policy areas to be targeted. Each EU member is supposedto make a political commitment to achieving those targets. EU areas ofaction are developing business support networks, financial instruments, andpolicy development. Five program areas are identified: enhancing knowledge-basedcompetitiveness, promoting entrepreneurship, simplifying regulatory environmnt,improving financial environment, and easier access to support services. Theanalysisconcludes that the EU does not have a central vision or strategy;however, the ad hoc innovative approach, consisting of national levelexperiments, may be a strength. (TNM)