Programme on Entrepreneur Research (MER)

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1 adjusted 12 October 2009 Programme on Entrepreneur Research (MER) Work Programme Foreword In February 2008, the Norwegian Government presented its Action Plan to Increase Entrepreneurship among Women (Handlingsplanen for meir entreprenørskap blant kvinner, available in Norwegian only). Signed by eight ministers from seven ministries, 1 the action plan included a new research programme on entrepreneurship and women entrepreneurs as one of its measures. The Ministry of Trade and Industry has overall responsibility for the research programme, and the Research Council has been assigned the task of developing and administering the programme. In autumn 2008, the ministry clarified the substance of the task. This was followed by a dialogue between the ministry and the Research Council about the programme s objectives and focus. As part of this process, the Research Council and the ministry organised a workshop in November 2008 for relevant research groups, funding agencies and government authorities. A meeting was also held with Statistics Norway. Innovation Norway and the Industrial Development Corporation of Norway (SIVA) have provided input to the work programme. Summary The MER programme has the following objectives: Primary Objective: Increase the level of knowledge about entrepreneurship in general and women entrepreneurs in particular, in order to enhance the knowledge base underlying public policy-making in this sphere. Secondary obective A: Obtain a state-of-the-art analysis of existing knowledge about entrepreneurship Secondary objective B: Develop, link and analyse the material in Norwegian database registers to generate more knowledge about entrepreneurship. Secondary objective C: Investigate the possibility of making databases at the public innovation agencies available for research purposes. Secondary objective D: Ensure the quality of future knowledge development in the field of entrepreneurship. 1 Ministry of Trade and Industry, Ministry of Local Government and Regional Development, Ministry of Children and Equality, Ministry of Education and Research, Ministry of Agriculture and Food, Ministry of Fisheries and Coastal Affairs, and Ministry of Labour and Social Inclusion. 1

2 : In order to increase the level of knowledge about entrepreneurship in general and women entrepreneurs in particular, gender issues should be central in each secondary objective. A gender perspective will be incorporated throughout the programme. The knowledge generated will be for the benefit of industry. The key target groups are authorities at the Ministry of Trade and Industry (NHD) and the Ministry of Local Government and Regional Development (KRD), representatives from the Research Council, Innovation Norway and the Industrial Development Corporation of Norway (SIVA), as well as from Statistics Norway (SSB), and a wide range of research groups with special interest in the field of entrepreneurship. Programme objectives Primary objective The primary objective of the MER programme is to increase the level of knowledge about entrepreneurship in general and women entrepreneurs in particular, in order to enhance the knowledge base underlying public policy-making in this sphere. The knowledge generated will be for the benefit of industry. Secondary objectives The programme seeks to: A. Obtain a state-of-the-art analysis of existing knowledge about entrepreneurship that focuses on issues relevant for the situation in Norway and incorporates a gender perspective. B. Develop, link and analyse the material in Norwegian database registers to generate more knowledge about entrepreneurship. C. Investigate the possibility of making databases at the public innovation agencies available for research purposes, e.g. through an exchange with Statistics Norway (SSB), and if this is possible, ensure that it is carried out. D. Ensure the quality of future knowledge development in the field of entrepreneurship. 2

3 Background To increase value creation in Norway, the Government seeks to implement policy and use instruments that promote entrepreneurship. In the view of the Government, increasing the number of women entrepreneurs is key in this context (cf. Action Plan to Increase Entrepreneurship among Women, 2008). The goal is for women to comprise at least 40 per cent of new entrepreneurs by (The corresponding figure in 2007 was per cent.) 2 The Ministry of Trade and Industry s programme memorandum, 3 which forms the basis for the MER programme, states that Norway s value creation is dependent on the establishment, expansion and operation of profitable companies and on the restructuring and closing of unprofitable companies. Entrepreneurs are usually involved in establishing and developing new business areas in completely new or existing companies. Entrepreneurship promotes the reallocation of resources and generates innovation in the wake of constantly shifting financial conditions and frameworks. International studies support this view, and indicate that there is a positive, dynamic connection between entrepreneurship and critical factors such as economic growth, a company s ability to survive, innovation, new job creation, technological change, growth in productivity and exports. In order to formulate and implement policy that promotes entrepreneurship, there is a need for more knowledge about the defining features of entrepreneurs and companies as well as for insight into the scope of, conditions for, and results from entrepreneurship in Norway. The programme will seek to shed light on potential causal relationships. By incorporating an overall gender perspective, the programme will generate knowledge about the way in which gender plays a role in the various issues at hand. It is important under the research programme to develop knowledge about entrepreneurship in a broad sense, including knowledge on intrapreneurship and from Young Entrepreneurship. At the same time, a qualitative assessment must be carried out to determine which forms of entrepreneurship and which entrepreneurs should receive support when policies and instruments are formulated. There are various sources and studies that offer some insight into the field. The programme will seek to address three main challenges related to the existing material: 1. The existing material employs a number of different definitions and means of operationalising the concepts of entrepreneur and entrepreneurship. The programme will shed light on the various definitions of entrepreneurship that are used in analyses and research, and consider the consequences. This will be viewed in connection with the definition of entrepreneurship used in the Action Plan to Increase Entrepreneurship among Women, which states that Entrepreneurship is a dynamic, social process in which an individual identifies economic opportunities and takes action to realise them by establishing or developing new activity in new or existing companies. 2. The existing studies are fragmented. The programme will compile an overview of existing knowledge about relevant research questions. The programme will be oriented toward strengthening this area as a research field that links together various subject areas and research groups and views them in connection with one another. 2 Bodø Graduate School of Business (2008): Global Enterprise Monitor/Entreprenørskap i Norge 2007 ( Entrepreneurship in Norway 2007 ). Equality and Anti-discrimination Ombud: SALDO Ministry of Trade and Industry (August 2008): Programnotat for videreutvikling av kunnskapsgrunnlaget for entreprenørskapspolitikken om entreprenørskap og kvinner som entreprenører (Programme memorandum on the knowledge base for policy on entrepreneurship: entrepreneurship and women entrepreneurs). 3

4 3. The material is limited and sometimes outdated. Entrepreneur research must be strengthened within the programme s limited budget framework. Initially the programme will implement analyses of the data in registers and will subsequently conduct an assessment to determine which gaps in knowledge to fill. The programme seeks to increase the level of knowledge about the field of entrepreneurship among government authorities, funding agencies and research groups. Greater understanding among all these parties is required in order to formulate targeted policy on entrepreneurship. Secondary objective A: State-of-the-art analysis Many studies and meta-studies have been conducted on entrepreneurship and on women and men in trade and industry, including entrepreneurs. 4 In Norway, a number of research groups have carried out research on entrepreneurship, some of which has incorporated a gender perspective. In recent years, however, the field of entrepreneurship has received little attention from researchers in Norway, due in part to a lack of research funding. A state-of-the-art analysis that is, an overview of existing knowledge produced by studies in Norway as well as by relevant research from abroad is needed. An analysis of this type will clarify the current status of knowledge, uncover gaps and provide an insightful point of departure for further research. The process of compiling the state-of-the-art overview must be based on an analytical approach to a clearly defined research question. Consideration must be given to whether several research groups should cooperate on the analysis as it will encompass a range of subject areas and methodological approaches. Possible research questions include: What promotes and hinders entrepreneurship in Norway? What role does gender play? What definitions of entrepreneurship are used, and what are the ramifications of this on the findings? With regard to the existing structure of funding instruments, what instruments are relevant viewed in relation to the findings of the analysis? Performance targets: Prepare the state-of-the-art analysis for publication in an international scientific journal. Make the findings publicly available in the form of working notes pending publication. Disseminate and discuss the findings of the analysis with relevant research groups, government authorities and funding agencies. Secondary objective B: Develop, link and analyse the material in Norwegian database registers Database registers in Norway are of high quality, and far better than those in most other countries. However, the research potential of these databases is not being fully exploited, including with regard to analyses of entrepreneurship. 4 See, for example, D. B. Audretsch (2002): Entrepreneurship: A Survey of Literature, Vinnova report 2008:20: Sesam öppna dig! Forskarperspektiv på kvinnors företagande ( Open sesame! A research perspective on women s companies ), and Nina Gunnerud Berg and Lene Foss, eds. (2002): Entreprenørskap: Kjønn, livsløp og sted ( Entrepreneurship: Gender, life phases and place ). 4

5 This part of the MER programme seeks to develop, link and analyse the material in Norwegian database registers with a view to increasing knowledge about entrepreneurship in general and women entrepreneurs in particular. Data are available either at or via Statistics Norway (SSB) to relevant research groups that sign a research agreement. Under one of the programme s call for proposals, a small number of groups will be allocated funding to address a range of research questions associated with analysis of the data found in the registers. Focus will be placed on the innovative use of quantitative methods. Potential research questions include: How can data on individuals and companies be linked and used in time series analyses of the development of newly established companies? What are the defining features of entrepreneurship and which of these are relevant for use in analyses of entrepreneurship at the individual and company level? Which definitions of entrepreneur/entrepreneurship are relevant or possible to use, and what are the ramifications of this for the findings? What do data register analyses of entrepreneurs reveal? What causal relationships are found? Does the linking together of data from the public innovation agencies (Research Council, SIVA and Innovation Norway) open up any new ways of analysing the impacts of public policy? Entrepreneurship is one of several factors leading to new companies and changes in the company population. How does the development of new companies resulting from entrepreneurship compare with other types of changes in the company population? What questions are the analyses not able to answer? What are the limitations of the existing variables? How can the variables, data registration and availability of data be further developed or improved to raise the quality of the statistics and meet the need for future analyses? Performance targets: Prepare the analyses for publication in international scientific journals. Make the findings publicly available in the form of working notes pending publication. Disseminate and discuss the findings of the analyses, the material found in the databases and potential uses of these data with relevant research groups, government authorities and funding agencies, and raise the competency level among these groups to use the databases. Provide specific input to SSB and government authorities on how the database registers may be further developed to improve their quality and accessibility. Secondary objective C: Making the funding agencies databases available The funding agencies databases are not well linked to external data for the purpose of analysis, such as the databases at SSB. This means they are not readily available to researchers, including those who conduct entrepreneur research. The MER programme will investigate the possibility of making the funding agencies databases available via SSB. If this is possible, the programme will seek out solutions for realising this and for transferring the data. This measure will strengthen the databases at SSB, as it will enable the data to be incorporated into statistics and analyses and lay the groundwork for better knowledge about how the funding agencies function in a variety of areas. Priority will be given to increasing the accessibility of the databases at SIVA, Innovation Norway and the Research Council. 5

6 Performance targets: Determine whether a larger part of the funding agencies databases may be made available via SSB. If this is possible, ensure that the databases actually are transferred to SSB and adapted for research purposes. Secondary objective D: Ensure the quality of future knowledge development in the field of entrepreneurship Entrepreneur research in Norway is conducted by a variety of groups which are not always familiar with each other s work. Due to the low level of research activity in the field in recent years, there is a need to strengthen the individual research groups as well as the research field as a whole in order to enhance the quality of research findings in the future. Government authorities and funding agencies will also benefit from increased knowledge about entrepreneurship, which they can use to refine their requests when commissioning statistics and research and as a basis for their policies and instruments. It is essential to maintain the level of knowledge and activity within entrepreneur research after the programme concludes and ensure that it does not fall back to current levels. Research funding will be channelled to a limited number of research groups. The call for proposals in 2009 will be targeted at database register analyses and a state-of-the-art analysis with the aim of strengthening a few key institutions. Priority will also be given to organising regular discussion forums that bring together research groups within the field of entrepreneurship in a broad sense as well as representatives of the ministries, funding agencies, county administrations, entrepreneurs and other interested parties. These are to be innovative and future-oriented forums, offering participants an opportunity to share their experiences and knowledge and to discuss research questions and findings. A second call for proposals is planned for the funding of supplementary research. The findings produced from the analyses of data registers and the state-of-the-art review, as well as important issues identified in the discussion forum, will influence the focus and substance of the second call for proposals. To ensure the quality of future knowledge development, a proposal will be drawn up for how to continue these efforts after the programme concludes. Performance targets: Organise a discussion forum on entrepreneurship two to four times per year. Publish research articles in international scientific journals (or after the programme concludes due to the time factor). Make the findings publicly available in the form of working notes pending publication. Disseminate and discuss the findings of the analyses with relevant research groups, government authorities and funding agencies. Draw up a detailed proposal for how to continue the efforts to ensure the quality of knowledge development in the field of entrepreneurship. 6

7 Target groups The programme s target groups are authorities at the Ministry of Trade and Industry (NHD) and the Ministry of Local Government and Regional Development (KRD), representatives from the Research Council, Innovation Norway and the Industrial Development Corporation of Norway (SIVA), as well as from Statistics Norway (SSB), and a wide range of research groups with special interest in the field of entrepreneurship. Other individuals and groups will also have the opportunity to contribute to the open discussion forum and benefit from their participation. Performance targets: Performance target Organisation Active participation in the discussion NHD, KRD, Research Council, Innovation forum Norway, SIVA, SSB, research groups Close dialogue with the Research Council NHD, Innovation Norway, SIVA Access to the findings NHD, KRD, Research Council, Innovation Norway, SIVA, SSB, research groups, industry organisations Incorporation of the findings into the NHD, KRD, Research Council, Innovation organisation s knowledge base Norway, SIVA, SSB Incorporation of the findings into policy NHD, KRD documents Active participation in fulfilling secondary SSB objective A Active participation in fulfilling secondary SSB, Innovation Norway, SIVA objective B Active participation in fulfilling secondary Research Council, Innovation Norway, SIVA, SSB objective C Active participation in fulfilling secondary objective D Effective, targeted implementation of the programme by the administration Research Council, Innovation Norway, SIVA Research Council Programme s framework and focus Programme type: action-oriented Programme period: Funding: A total of NOK 18 million (NOK 2 million in 2009, NOK 4 million in the subsequent four years) Allocation: 2009: reallocation of Research Council funds from the Ministry of Trade and Industry : separate allocation from the Ministry of Trade and Industry The programme is administered by the Department for Innovation Incentives at the Research Council. 7

8 The programme employs a simpler organisational model than that used by the larger research programmes at the Research Council. The purpose is to direct the resources toward researchrelated activity and minimise the amount of resources used on programme administration. The Research Council has overall responsibility for the programme, and the programme secretariat serves as the governing body. Project proposals will be processed by the programme secretariat and assessed by external, national and international referees. A reference group comprised of external resource persons will be established, and will serve as an advisory body to the programme. A programme board will not be established. The Research Council will hold status meetings with the Ministry of Trade and Industry and with SIVA/Innovation Norway. Funding instrument: Applications for funding will be submitted using the Researcher Project application type. These projects seek to promote scientific renewal and development of disciplines and/or to generate new knowledge about issues relevant to society. Projects may be developed by one or more researchers at one or more institutions. The projects may be independent or affiliated with a research programme. Grant applications must be submitted by the project manager with the research institution serving as the formal applicant. The programme is divided into the following phases: Initiation/planning phase (autumn 2008 spring 2009) Implementation phase (autumn 2009 spring 2013) Concluding phase (autumn 2013) 8

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