Economic growth and social wealth in the Eastern European and Central Asian region increasingly depends on the ability to foster economic and social development and innovation in small and medium sized towns and rural areas. Small and medium sized towns have become increasingly interesting for investors and innovative entrepreneurs. Business incubators and other business development instruments together with the government play a key role in this process. ICT is a key enabler and innovation driver in the ECA region. Sharing international experiences about innovation development in small and medium sized towns was the objective of ECAbit’s ‘Advancing Innovation in ECA 2008’ international conference.

More than 200 conference participants included business incubation experts, policy-makers, education and science representatives and entrepreneurs representing about 20 countries from the Eastern European and Central Asian region as well as the European Union and international organisations including the World Bank’s infoDev program and UNECE. 

During the two conference days, participants discussed the potentials and challenges for innovation and SME development outside the megapolises in the ECA region. Focus areas included education and youth, social innovation, industrial and technology innovation, tourism and agriculture. Special focus was given to the area of investment policies of small and medium sized towns and rural areas and the specifics of financing innovation in these regions. The conference also included a training session on local economic development and stakeholder management moderated by ProSME/GTZ Armenia. ICT was discussed as an integrated innovation enabler in these areas. The participants also had a chance to visit the Agricultural Science City (Naukograd) of Michurinsk.

The third day of the conference hosted ECAbit’s annual network meeting. The ECAbit network agreed on its 2009 activity plan (download a sumary of the ECAbit Network Activity Plan 2009 here) and discussed collaboration potential with the Southeast European Network of Start-up Centers and Incubators (SENSI). During an incubation management training on investment-readiness supported by ProSME/GTZ, the two networks jointly developed an activity plan that aims to increase the capabilities of incubator managers and clients in the field of investment for innovative SMEs and the effective application of ICT in this area (download the Investment Readiness Training Kick-off Protocol here).

Students of the Tambov region were given the opportunity to present the results of a student innovation contest jointly organized by ECAbit and the Ministry of Education of the Tambov region. Further outcomes of the conference and the network meeting include initiatives for collaborative projects with networks and organizations from Russia and from the European Union in the areas of youth, tourism, and agriculture.

ECAbit is honoured to announce the inauguration of the new ECAbit coordinator, Mr. Todor Yalamov from ARC Fund Sofia, Bulgaria. ECAbit would like to thank Mr. Andriy Tarelin (Kharkov Technologies Incubator, Ukraine) for his excellent coordination of the ECAbit network since 2005.

Main conclusions of the conference include:

• Promoting innovation development and diversification of SMEs in small and medium sized towns and rural areas in the ECA region is crucial to address both the economic and social challenges caused by strong urban and economic polarization. Regions outside the ‘megapolises’ will have to position themselves while at the same time seeking strategic partnerships with the main economic centres and megacities. The Agriculture Science City of Michurinsk in the Tambov region provides a good practice example.
• Local economic development networks linking key stakeholders including government and administration, science and education, business development organizations including business incubators and technology parks, and the business and finance community and others are the main premise for effective economic development policies in small and medium sized towns and rural areas. Business incubators and technology parks can become key players and hubs in local development networks. Good practice such as the ProSME/GTZ local economic development LED approach should be exchanged among incubator and technology park managers.
• Investments in small and medium sized towns and rural areas from both the local and the international business community will receive increasing attention in the future. Business incubators and technology parks have the potential to become contact points for local as well as international investors. International incubator and technology park networks can contribute to this role by providing skills and contacts. ECAbit in collaboration with SENSI initiated a program on the investment-readiness of business incubator managers.

For 2009, ECAbit plans to strengthen the interactive elements of the conference including round tables and discussions, and to continue the successful integration of entrepreneurs in its events and training activities. The time, location and theme of ECAbit’s Advancing Innovation in ECA 2009 Conference are currently under discussion by ECAbit. ECAbit looks forward to infoDev’s Global Forum on Innovation and Business Incubation, which will take place in Brazil in May 2009.

Advancing Innovation in ECA 2008 was hosted by the Tambov Innovation Incubator and organized by the ECAbit Eastern European and Central Asian business incubators network and supported by the infoDev program hosted by the World Bank, the Ministry of Economic Development of the Russian Federation, VTB24 Bank, and the Tambov regional government. Further partners included ProSME/GTZ Armenia and Georgia, NP Institute for the Development of Small and Medium Businesses in the Russian Federation, NP National Partnership for Development of Subcontracting of the Russian Federation, Applied Research and Communications Fund (ARC Fund), and Alliance Media.

To access conference photos, please click here.

Conference presentations will be made available in English and Russian on the official conference site by November 15, 2008.

For further information about the conference, please contact Mr. Todor Yalamov, ECAbit coordinator, by e-mail at todor.yalamov(at)online.bg.