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Legal Aspects that Impede and/or Facilitate Clustering of SMEs

Governance, Policies and Legal Conditions for Access to Market through Extended and Dynamic Clustering of SMEs. Legal Aspects that Impede and/or Facilitate Clustering of SMEs. Davide M. Parrilli Interdisciplinary Centre for Law and ICT, ICRI – K.U. Leuven – IBBT

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Legal Aspects that Impede and/or Facilitate Clustering of SMEs

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  1. Governance, Policies and Legal Conditions for Access to Market through Extended and Dynamic Clustering of SMEs Legal Aspects that Impede and/or Facilitate Clustering of SMEs Davide M. Parrilli Interdisciplinary Centre for Law and ICT, ICRI – K.U. Leuven – IBBT davide.parrilli@law.kuleuven.be (Name of Presenter/Organisation) Perugia, 30/10/2008 Davide M. Parrilli - ICRI Tecnodays 2008

  2. Agenda • Starting point of the research; • Objectives of the research; • Content of the legal analysis; • Conclusions and results; • Open question. (Name of Presenter/Organisation) Perugia, 30/10/2008 Davide M. Parrilli - ICRI Tecnodays 2008

  3. Starting point Results of the interaction with stakeholders (companies and clusters): organizational factors are perceived to be more important than contextual (legal) factors: the latter are nevertheless very relevant. (Name of Presenter/Organisation) Perugia, 30/10/2008 Davide M. Parrilli - ICRI Tecnodays 2008

  4. Objectives Aim of the legal analysis within EFFORT: provide a list of potential legal barriers and enablers to SME clustering with a comparative and dynamic approach: many elements together act as barriers and enablers, even if company and cluster managers are not aware of that. (Name of Presenter/Organisation) Perugia, 30/10/2008 Davide M. Parrilli - ICRI Tecnodays 2008

  5. Content of the legal analysis • Contract law and setting up of a new business; • IPR protection and patents; • Legal environment: * Enforcing contracts; * Access to credit; * Licenses and public procurement; • State aid; • Employment law; • Taxation: substantial and procedural aspects. (Name of Presenter/Organisation) Perugia, 30/10/2008 Davide M. Parrilli - ICRI Tecnodays 2008

  6. Conclusions and results (I) Overall conclusions: • Clusters and clustering are new concepts for lawyers. • EFFORT is a pioneering project in the sense that it takes into account many different legal forces that are likely to affect SME clustering and tries to indicate potential barriers and enablers to clustering. • Importance of ICT to remove barriers to clustering. (Name of Presenter/Organisation) Perugia, 30/10/2008 Davide M. Parrilli - ICRI Tecnodays 2008

  7. Conclusions and results (II) Enforceability of contracts in Courts: • Implementation of ADR systems; • Enforceability of first instance decisions and limitations to their appealability in civil cases; • E-courts mechanisms (e.g. Small Claims Online). (Name of Presenter/Organisation) Perugia, 30/10/2008 Davide M. Parrilli - ICRI Tecnodays 2008

  8. Conclusions and results (III) Access to credit: Combine different interests (banks and companies), need to assure information and transparency to borrowers. (Name of Presenter/Organisation) Perugia, 30/10/2008 Davide M. Parrilli - ICRI Tecnodays 2008

  9. Conclusions and results (IV) Administrative law: • Reduction of administrative burdens (red-tape) to firms: the Dutch case; • Adoption of ICT technologies (e.g. e-procurement): examples of good practices around Europe. (Name of Presenter/Organisation) Perugia, 30/10/2008 Davide M. Parrilli - ICRI Tecnodays 2008

  10. Conclusions and results (V) State Aid: Principle: direct or indirect financial help is forbidden by EC law, But… The aid for innovation clusters can help cooperating firms to grow (direct incentive for clustering). (Name of Presenter/Organisation) Perugia, 30/10/2008 Davide M. Parrilli - ICRI Tecnodays 2008

  11. Conclusions and results (VI) Employment Law: • Companies and clusters need flexibility (flexicurity?) as regards employing and dismissing people, working time, etc; • Clusters can be a useful tool to employ more people in Europe. (Name of Presenter/Organisation) Perugia, 30/10/2008 Davide M. Parrilli - ICRI Tecnodays 2008

  12. Conclusions and results (VII) Taxation: • Corporate-oriented policies are enablers to clustering (EI, NL, etc.); • The effect of corporate tax on clustering is only indirect: it affects primarily companies; • Need for online filing mechanisms and ICT in the tax bureaucracy. (Name of Presenter/Organisation) Perugia, 30/10/2008 Davide M. Parrilli - ICRI Tecnodays 2008

  13. Open question On the basis of these conclusions, it is necessary to assess whether the implementation of extended and dynamic clustering will lead to the creation of newly defined and flexible multinational groups or the ‘local dimension’ will prevail and will, to a certain extent, limit the development of clusters. (Name of Presenter/Organisation) Perugia, 30/10/2008 Davide M. Parrilli - ICRI Tecnodays 2008

  14. THANK YOU! Davide M. Parrilli davide.parrilli@law.kuleuven.be (Name of Presenter/Organisation) Perugia, 30/10/2008 Davide M. Parrilli - ICRI Tecnodays 2008

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