Support Small And Medium Enterprises Research Articles

A Study of Effective Financial Support for SMEs to Improve Economic and Employment Conditions: Evidence from OECD Countries

Using a panel logit regression model, this study analyzes whether or not five categorized financial supports for small and medium enterprises (SMEs) from the governments of 11 Organization for Economic Cooperation and Development (OECD) countries facilitate economic and employment growth: (1) direct government loans to SMEs; (2) government‐guaranteed loans to SMEs; (3) the reinforcement of relationship banking; (4) financial stability steps to ease pro‐cyclicality; and (5) equity‐linked financing. The academic contribution of this research is in identifying the optimal type of government financial support to SMEs given a country's level of financial crisis and market‐rate level. The main empirical test results are as follows. First, the type of financial support that contributes most to economic and employment growth is the set of steps that governments take to ease pro‐cyclicality. Second, the reinforcement of relationship banking can also contribute to improved economic and employment conditions. Third, in less capital‐intensive countries, the results confirm that economic and employment improvement occurs more often if equity‐linked financing is used. Fourth, the adoption of dynamic loan‐loss provisions to prepare for periods of economic recession is necessary to reduce the pro‐cyclicality of SME loans within the 11 OECD countries studied in this paper; it is also necessary to transition from a persistent monetary‐easing policy stance to a flexible monetary stance within a country's fiscal policy in order to make commercial banks benefit from an incentive‐like risk premium for SME loans despite the existence of economic recessions. Finally, the study finds that the need to apply equity‐linked financing methods through the stock market is especially urgent in developing countries. As the managerial perspectives, it is confirmed that easing pro‐cyclicality of SME loan and enhancing banking relationship can contribute to SMEs fund management. Copyright © 2017 John Wiley & Sons, Ltd.

ЭФФЕКТИВНОСТЬ ГОСУДАРСТВЕННОЙ ПОДДЕРЖКИ МАЛОГО И СРЕДНЕГО ПРЕДПРИНИМАТЕЛЬСТВА В РЕГИОНЕ (НА ОПЫТЕ БРЯНСКОЙ ОБЛАСТИ)

Increase of national economy efficiency in many respects depends on the effectiveness of small and medium enterprises (SME) in this connection the sys-tem of measures of state support for SME is important. In regions of the Russian Federation state pro-grams of SME support which are implemented at joint financing from the federal budget are developed. Vari-ous mechanisms of their realization are used. The questions of the state SME support realized in regions of the Russian Federation are considered. Dur-ing implementation of this program various directions and mechanisms of its implementation were used. Grantmaking to start-up entrepreneurs was the most inefficient as some of them were unprepared for obser-vance of necessary requirements of grant realization. On the basis of the analysis of the actual materials of SME development in the Bryansk region the conclusion is drawn that the most effective is the mechanism of point support in the short term. In the medium or long term it cannot be compared with the business environment formation in the region. The mechanism of point support can be one of the formation elements of the favorable business environment mechanism.

Small and medium enterprises and the support policy of local government

The subject of this research are small and medium enterprises (SME) in the Polish economy, the support of this sector by local government and the functioning of small and medium enterprises in the local system of the town and commune of Pułtusk. The aim of this study is to present the condition and the role of SME in the local systems in light of the selected features of this sector in the country and evaluation of support for SME given by local government of the town and the commune. The case study research methods applied were literature research, documentation review and survey-based research using questionnaire. The survey was conducted in spring, 2014, on a random sample. The research resulted in learning the profile of a local entrepreneurs and the action characteristics of SME in the examined unit. The diagnosis of the sector’s situation was made, the stimulating and limiting factors of its prosperity were identified. The SME support system of local government and the entrepreneurs’ expectations towards commune government in the field of development of local enterprises were evaluated. The results and conclusions confirm the need for development of local government activity in formulating and implementation of the development of local enterprises policy.

The Impact of Business Support Services for Small and Medium Enterprises on Firm Performance in Low‐ and Middle‐Income Countries: A Systematic Review

Support to small and medium enterprises (SMEs) can improve their revenue and profits, their ability to create jobs, labour productivity and their ability to invest. But these effects are not large, and the cost effectiveness of the interventions not known. The effects on innovation are unclear.What is this review about?Large amounts of funding are going towards programmes to support small and medium enterprises (SMEs) in low- and middle-income countries in order to increase revenue and profits, generate employment, and, so, create economic growth and reduce poverty.The Campbell review summarizes evidence of the impact of these programmes on measures of SME performance including revenues, profits, and productivity, as well as the firms’ ability to generate employment and their labour productivity.

The Impact of Institutional Support in SMEs Marketing, and Growth—A Case Study of Retail SMEs in Ghana

Small and Medium Enterprises (SMEs) are still hailed as the panacea of economic development of many countries, since they play a fundamental part of the economic fabric in developing a crucial role in furthering growth, innovation and prosperity. In the quest to achieve growth, SMEs unfortunately face severe challenges including the marketing of their products, which stem from unqualified employees in the marketing department, inadequate finance to undertake marketing research, go international, and to participate in trade fairs among other factors. Leaving most SMEs to face these challenges alone usually leads to high rate of demise and low growth rate, hence government and other multi donor organizations provide support to these SMEs in the area of finance, market, managerial capacity building among others. This research assesses the impact of the government support in the form of marketing assistance (training of marketing staffs, access to foreign marketing, trade fairs and exhibitions) to some selected retail SMEs in the ten Regional Capitals of Ghana on their growth. Using firm data report, the results indicated that the provision of support for SMEs to participate in trade shows and exhibitions highly impact positively on SMEs growth, followed by the provision of support in access to international market, and support in the training of marketing staffs of SMEs.

TOOLS FOR THE PROMOTION OF SMALL AND MEDIUM ENTERPRISES IN THE CONTEXT OF REGIONAL DEVELOPMENT

Small and medium enterprises (SMEs) are the basis of the developed countries that’s why their support and development are key priorities of economic development of successful countries. Their importance is due to a significant contribution to GDP and population employment, high innovation activity, resistance to economic crisis and the ability to quickly adapt to new economic conditions. Essential role of SMEs in socio-economic development of the state shows that existing problems in the sector should be quickly solved by creating necessary conditions for targeted stimulation of SMEs in regional market space. The formation of regional economic development requires the establishment of SMEs as a valuable entity and strengthening of its market positions in a competitive environment. The need to create an effective system of financial support for SMEs, to improve tax system, information, personnel and innovative potential, which regulates business, is conditioned by the role of this sector in socio-economic development. The trend of decline in GDP in Ukraine in recent years is conditioned by insufficient attention paid by the state to small and medium enterprises, underestimation of their role and significance, and lack of information about best practices of the use of tools to support and stimulate SMEs. Therefore, the problem of the development of SMEs and entrepreneurship remains a pressing one both in economic and social dimensions.

Factors for Increasing the Competitiveness of Small and Medium- Sized Enterprises (SMEs) in Bulgaria

The competition is the trigger force of any market economies. Under modern contemporary conditions, competition is determinative for the business development, while competitiveness is the most important condition for overall business prosperity. The area of small and medium enterprises (SMEs), having extraordinary potential for flexible adaptation to the economic circumstances in the country and changing market conjuncture – is of major significance for the national economic development. The accession of Bulgaria to the EU provides great opportunities for SMEs support and development. On the basis of the above – mentioned, we can conclude that the purpose of this article is to define and analyze the key factors for enhancing SME competitiveness and to outline the direction of their sustainable development in the new economic reality.

Combining system dynamics modelling and management control systems to support strategic learning processes in SMEs: a Dynamic Performance Management approach

Traditional management control systems, mainly centred on accounting-based measures, are widely recognized as useful tools to support Small and Medium Enterprises (SMEs) managers and entrepreneurs in steering business development. However, due to the increasing turbulence and dynamic complexity that characterize today’s competitive arenas, such systems need to be combined with simulation-based methodologies in order to improve entrepreneurial learning processes and, as a result, better detect possible crisis symptoms and weak signals of change—emerging from the business environment—to promptly react. Therefore, the aim of this paper is to show how a combination of traditional management control mechanisms with system dynamics modelling can effectively lead to better results in terms of SMEs’ performance measurement and management. As a result, a Dynamic Performance Management approach will be illustrated and discussed, also through an empirical application to a real small business.

Development of Small and Medium-Sized Regional Enterprises: Creation of Priority Areas (the Case of Sverdlovsk Region)

This article presents the results of the research which deals with the current level of development of small and medium enterprises (SMEs) in Sverdlovsk region. The study analyses the statistics of entrepreneurship development as well as Russian and international experience in this sphere. It also includes a sociological survey of entrepreneurs’ satisfaction with the business climate in the region. The research was aimed at elaborating guidelines for the long-term development of a regional entrepreneurship support system. This system seeks to facilitate the implementation of the ‘Strategy for the Development of Small and Medium Enterprises in Sverdlovsk Region before 2030’. As a result, an amalgam of strategic responses for the development of SMEs is presented. The completed response comprises measures intended to address the problems entrepreneurs face by developing SME support tools; to solve the endemic problems of the sector by improving the system of regional SME support; and to promote the realization of concrete priority areas for entrepreneurship development.

An empirical analysis on purposes, drivers and activities of technology opportunity discovery: the case of Korean SMEs in the manufacturing sector

Technology opportunity discovery (TOD) is becoming increasingly important for identifying technology opportunities so that they can be reflected in firms' strategy planning. However, understanding of TOD practices within firms is limited, and the diversity of TOD practices has not been fully reflected in previous studies, especially from the perspective of small and medium enterprises (SMEs), which typically lack diverse technology portfolios or plentiful innovation resources, so technology opportunities have seldom been defined and analyzed. This study aims to investigate SMEs' TOD practices and to identify their characteristics. Interviews were conducted with Korean SME executives to define a conceptual TOD model for SMEs, and 104 Korean SMEs' TOD drivers and activities were surveyed focusing business drivers, business models, and information gathering. The results were then analyzed to define six technology opportunity types and to derive similarities and differences among them, which are used to understand and further support SMEs' TOD practices. The research findings are expected to enhance understanding about TOD practices and to help establish SMEs' TOD strategies.

Life cycle thinking in small and medium enterprises: the results of research on the implementation of life cycle tools in Polish SMEs—part 2: LCA related aspects

This article is the second part of a series of articles presenting the results of research on the implementation of lifecycle management tools in small- and medium-sized companies in Poland. This work is part of a project financed by the Polish Agency for Enterprise Development (PAED), which began in February 2011. It was carried out by the Wielkopolska Quality Institute, a business environment institution associated with the Polish Centre for life cycle assessment (PCLCA). The main practical objective of the project was to support small and medium enterprises (SMEs) in their business development, e.g. by expanding their horizons beyond the sphere of their operation and identifying new areas for the improvement and promotion of the products and services they offer. The specific objective of the analysis on the environmental impact was an attempt to answer the question of whether environmental LCA is a good management tool for this type of business. Part 2 describes results of the evaluation of the implementation of LCA in SMEs conducted in 46 companies involved in the project. In order to assess the effectiveness of the project and the effectiveness of the implementation of LCA and life cycle costing (LCC), a survey was conducted of small and medium businesses where the implementation work had been fully completed. In total, 46 organisations agreed to participate in the LCA survey, which was almost 66 % of all the companies where the LCA and LCC studies had been carried out within the project. The survey was conducted using individual in-depth interviews. Questions to the representatives of the companies referred both to aspects of their functioning in the market (characteristics of a company, its market share, management systems, environmental policy, suppliers and clients) and the operation of their environmental service (assessment of its effectiveness, motivation and difficulties in its implementation), as well as opinions on the potential applications of LCA in their current operations. The experience and observations of LCA experts resulting from their cooperation with the organisations analysed are largely supported by the results of the survey. The overall impression gained from the project is that the small- and medium-sized enterprises analysed have a problem with accepting and understanding the life cycle perspective and show limited interest in taking liability for environmental aspects beyond the mandatory legal standards and boundaries of their business operations. The survey shows that the companies rarely analyse environmental aspects appearing on many different stages of the life cycle of their products. Most of them focus on their current operations while trying to meet the mandatory legal requirements relating to environmental protection. It should be noted, however, that SMEs taking part in the studies appreciate the opportunities offered by LCA, their usefulness in business practice, recognise the potential for using life cycle techniques in the future and their impact on the management process, procedure or thinking about the products they manufacture. The result of the study is the identification of four key areas relevant to SMEs which may affect their willingness to adopt the life cycle perspective and undertake environmental measures. It seems that implementing LCT in small- and medium-sized enterprises requires a special approach. These are often companies with limited human resources (often just a few people) and financial resources (often operating on the verge of survival), with a weak position in a supply chain and, therefore, having various priorities in their daily operation. The researchers also encountered awareness barriers as a result of which the idea of going beyond an organisation and making an entire LCA of a product was often simply misunderstood. The studies conducted among SMEs have shown that managers' own intuition and research on customer preferences were largely conducive to improve existing or introducing new products or services, while changes were mostly introduced due to the requirements of the market, or the desire to reduce costs. It can be assumed that their non-obligatory nature also contributed to the relatively low interest in LCA initiatives and not recognising their usefulness. It seems that it would be useful to carry out relatively simple, but integrated, LCA/LCC analyses in SMEs so that the companies would clearly see the economic effect of the proposed environmental improvements. The analyses conducted lead to the conclusion that the incentive for SMEs to take measures should come from outside, e.g. as requirements for green public procurements, or as part of assessment made by suppliers in a supply chain.

Support SME Suppliers through Buyer-Backed Purchase Order Financing

Supporting small and medium enterprises (SMEs) to access finance has received rapidly-rising attention in recent years. In some countries, large buyers in supply chains are considering credit guarantee schemes (CGS) through which the credit coverage can be extended to assist their SME suppliers. While such support is beneficial to the suppliers, an issue arises regarding the motivation of the large buyers to join and support the SME suppliers. In practice, SMEs are often attractive but riskier sources of supply. Supporting SME suppliers through the financial guarantee may bring even more risk concern to buyers. To study the buyers’ sourcing and guarantee strategy, we analyze a simplified model where a core enterprise procures components from only two sources: an SME supplier with a lower price and the spot market with a higher price. A novel Buyer-Backed Purchase Order Financing (BPOF) scheme is studied in supporting the supplier’s financing. We analyze the effect of the market interest and identify the properties of the buyer’s optimal joint sourcing and credit-guarantee decisions. Through numerical experiments, BPOF is shown to significantly improve the core enterprise‘s profitability.

Life cycle thinking in small and medium enterprises: the results of research on the implementation of life cycle tools in Polish SMEs—part 1: background and framework

This article is the first of a series of articles presenting the results of research on the implementation of life cycle management tools in small- and medium-sized companies in Poland. This work is part of a project financed by the Polish Agency for Enterprise Development (PAED) which began in February 2011. It was carried out by the Wielkopolska Quality Institute—a business environment institution associated with the Polish Centre for Life Cycle Assessment (PCLCA). The main practical objective of the project was to support small and medium enterprises (SMEs) in their business development, e.g. by expanding their horizons beyond the sphere of their operation and identifying new areas for improvement and promotion of the products and services on offer. These publications are a voice in the discussion on the opportunities and pertinence of implementing life cycle thinking (LCT) in small- and medium-sized enterprises and an attempt to identify potential barriers arising from specific characteristics of SMEs which could hinder or even prevent the effective implementation of life cycle techniques. Part 1 presents the situation of SMEs in Poland, general objectives of the project and organisation of the survey process. It was decided to carry out research on the effectiveness of the implementation of LCA and life cycle costing (LCC) in organisations that had received financial support for the implementation of life cycle techniques. Financial constraints, which might potentially be a reason for limited interest in LC techniques among SMEs in Poland, were taken into account. Thus, financial support provided an opportunity for the project to obtain information from a wide range of companies, not only from those companies that were particularly aware of the benefits of LC techniques or had a very good financial situation. Research based on the method of individual in-depth interviews was preceded by an analysis of literature showing the status of SMEs in Poland. Given the results, the project objectives were formulated and the ways of conducting the research were defined. The comparison of Polish SMEs with the same category of companies in the EU shows some similarities, such as the percentage of companies engaged in various businesses. The differences are expressed primarily in the financial potential, which in the case of Polish SMEs, is significantly smaller than the average in the EU. In the SME sector, there are less than half as many small businesses in Poland than in the EU. There are, however, many more microbusinesses in Poland. An evaluation of the prevalence of LCA and LCC techniques indicates that they are used by just 3 % of Polish SMEs, which is a very small proportion compared to the more than 50 % of SMEs taking any environmental measures. Information collected on specific details of Polish SMEs was used to identify the target group and develop a survey questionnaire which aimed to audit, among other things, the approach to environmental and economic analyses in the past and the approach to the LCA and/or LCC analyses that were implemented from the point of view of difficulties in their implementation and potential use of the results. Part 1 of the series of articles demonstrates a marginal-scale dissemination of life cycle management techniques among Polish SMEs. Companies definitely prefer to introduce relatively simple solutions that do not require specialised knowledge or unnecessary costs, e.g. they introduce energy-saving bulbs and waste segregation. Only a small percentage of companies implement more complex activities, and most commonly, these are medium-sized companies with greater financial and human capital. So what should be done to make SMEs use life cycle techniques more frequently? Is it appropriate to make changes in the methodology and life cycle techniques as such, or should, rather, the incentive for SMEs to use LCT come from outside as a requirement of public institutions or suppliers in a supply chain? Answers to these questions are provided in the research conclusions presented in parts 2 and 3 of the series of articles.

A process‐based operational framework for sustainability reporting in SMEs

PurposeThe paper aims to support small and medium enterprises (SMEs) in overcoming the difficulties they encounter in initiating sustainability reporting, proposing a “general” process for identifying a standard set of key sustainability indicators, that is specifically tailored on SMEs characteristics.Design/methodology/approachThe paper moves from the analysis of the existing international frameworks for sustainability reporting, and it discusses the main motivations whereby they are hardly applicable for SMEs. Then, it proposes a theoretical approach, which derives the set of key sustainability indicators starting from GRI, but explicitly considering SMEs specificities.FindingsThe paper presents and discusses the application of the proposed approach to a network of Italian steel SMEs.Practical implicationsThe approach proposed can support SMEs to face the problems they face in implementing sustainability reporting (resource and capability constraints and lack of operative instruments to support them), helping them to derive financial benefits arising from more sustainable choices.Originality/valueContrary to most existing international reporting guidance, this work does not seek to identify a set of general purpose key sustainability indicators (KSIs). Instead, the paper sets out a “general” process for obtaining a standard set of KSIs for use by any promoting organisation, whether a public administration seeking to reinforce sustainability strategies, or a trade association looking to support proactive SMEs.

Collective Creativity Management in Small and Medium Enterprises

Developing conceptual and computational frameworks to support Small and Medium Enterprises (SMEs) in formalizing their creativity, improving their capability to innovate, and limiting their drawbacks in tackling wider competitors is an important research topic in the Knowledge Management field. Although these companies are characterized by high levels of creativity, which allow them to design and manufacture innovative products, they have often significant technological gaps with respect to wider organizations and may suffer significantly in terms of loss of key personnel and company experiential knowledge and competences. This paper presents Complex Knowledge Structures (CKS), a methodological and computational framework for representation and management of collective creativity of SMEs based on storytelling and Case Based Reasoning (CBR) paradigms.

Technology credit scoring model considering both SME characteristics and economic conditions: The Korean case

In order to support small and medium enterprises (SME) with a high degree of growth potential in technology, various kinds of technology credit guarantees are issued to companies that obtain high scores by a technology scorecard in Korea. However, their default rates are reported to be very high. The main goal of this study is to propose a new technology evaluation model that accommodates not only technology-related attributes but also environmental conditions such as firm-specific characteristics and economic situations in the manner of more objective. We then show the superior prediction ability of the proposed model to the existing one. This model also enables to apply to a stress test by considering some worst environmental situations and is expected to be used for the effective management of the various technology funds for SMEs.

Центр и регионы в системе поддержки малых и средних предприятий Испании

Problems in small and medium entrepreneurship development are typical for any country. The main difference of Spain is that small and medium enterprises (SME) form here the basis for business and production structure of economy. Establishment and improvement of the modern government regulation and SME support system took place as late as during the post-Francoist period. In the article, the management model for such enterprises, their information support, sponsoring, access to innovations, the role of small and medium business in employment of population, especially amid the 2007–2009 global crisis are thoroughly actualized.

From operating efficiency to competitive edge: lessons from small firms in Botswana

Abstract Today's business environment is characterized by stiff competition, rapid technological advancements, and changing requirements of customers and employees. To grow and survive in this turbulent environment, Small and Medium Enterprises (SMEs) must balance the emphasis they put on the improvement of short‐term operational efficiency and long‐term competitiveness. Due to the apparent lack of resources and expertise, most SMEs pay very little attention to long‐term competitiveness and dynamism. Preoccupied with operational bits and pieces, SMEs lack strategic awareness and orientation. Strategic awareness is a mental process of continually evaluating organizational and environmental factors and improving on how they are identified, recognized, influenced, and interpreted, and consequently used in making strategic business decisions. The widespread use of short‐term‐oriented, non‐formal business planning practices indicates lack of strategic awareness and competitiveness among SMEs. This paper examines the degree of emphasis attached by SMEs, during their business planning, to the achievement of long‐term competitive advantages by presenting evidence from a recent empirical study based on data collected from 91 SMEs and analyzed using descriptive statistics such as mean and standard deviation. The findings indicated that SMEs put greater emphasis on short‐term profitability and operational efficiency than developing strategic awareness and long‐term competitiveness. Although this could be attributed to the relative lack of resources required for the implementation of strategic planning, policy deployment, and positioning, SMEs should be assisted to think and act strategically if they are to survive and grow in today's turbulent and dynamic markets. Government agencies, policy‐makers, consultants, non‐governmental organizations, and other small business support agencies must redirect their efforts toward bridging the gap between short‐term operational efficiency and strategic competitiveness and sustainability. This paper provides managerial and policy implications for SMEs, SME support agencies, government and non‐government agencies, and future research. Copyright © 2008 John Wiley & Sons, Ltd.

An ex‐post comparative analysis of SME formation in Brazil and Mexico

PurposeThis study seeks to compare and contrast the contexts and processes of the formation and development of small and medium enterprises (SMEs) in Brazil and Mexico. Additionally, a research agenda is defined based on information generated by various sources regarding the initial stages of enterprise formation.Design/methodology/approachThis research paper uses data collected from a 2002 study conducted by the Inter‐American Development Bank, along with institutional reports and academic literature, in order to perform a comparative analysis on the gestation and early development of SMEs in Brazil and Mexico.FindingsThis analysis of prior research studies indicates that emerging economies like Brazil and Mexico face enormous social and economic challenges that have in turn slowed down the efficiency and effectiveness of SME support programs. In addition, the differences found in the institutional, socio‐cultural, and economic context of Brazil and Mexico reveal that governments and entrepreneurs face the challenge of sustaining the existence of SMEs.Research limitations/implicationsSince, there was no access to raw data and no statistical procedures could be conducted, the significance of the differences between SMEs in Brazil and Mexico discussed in this paper is perceptual. Future research resulting from this paper shall develop theories that would help to create effective SME support programs, identify how particularities in every country affect SME formation, development, and survival, and explore issues faced in the growth, maturity, and mortality stages of SMEs.Originality/valueSMEs are extremely important to the economies of both Brazil and Mexico. However, an understanding of the micro and macro issues faced by these countries is very limited. This research paper identifies and analyzes such issues in order to specifically make way for future empirical research.

An essay on government policies to manage public R&D institutes

Summary Public research and development (R&D) institutes have played important roles in solving economic and social problems by doing research work of their specific fields in many countries. R&D professionals working in public R&D institutes are proud of their function as society's think tank and they diligently search, analyze, and solve their country's social and economical problems. They have aided their societies through identifying the causes and effects of social and economic problems and by guiding the direction of solutions over a long span of time. This paper discusses the role and various characteristics of public R&D institutes by looking at well known R&D institutes in seven countries with a special focus on government policies toward public R&D organizations. The institutions include the Lawrence Berkeley Laboratory and Jet Propulsion Laboratory in the United States, Rikagaku Kenkyusho (RIKEN, the Institute of Physical and Chemical Research) and the National Institute of Advanced Science and Technology (AIST) in Japan, Korea Institute of Science and Technology (KIST) in the Republic of Korea, Industrial Technology Research Institute (ITRI) in Taiwan, the Netherlands Organization for Applied Scientific Research (TNO) in the Netherlands, the Center National de la Recherche Scientifique (CNRS, National Centre for Scientific Research) in France, and Fraunhofer Institute (FhG) in Germany. Based upon the discussions, it is suggested that governments need to provide public R&D institutes with a stable research environment, encourage their R&D system to do more fusion and combination oriented research for multiple technologies, support small and medium enterprises (SMEs), cooperate with universities, and increase their contribution to regional development. This paper also argues that it is desirable for governments to play a role in the management of public R&D institutes through agreements set for a specific period with the consensus of all these institutes.