RIO REGIONAL INNOVATION SYSTEM Regionales Innovationssystem Oberösterreich (RIO)

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1 RIO REGIONAL INNOVATION SYSTEM Regionales Innovationssystem Oberösterreich (RIO) Key words: Clusters and business networks, Transfer of technology Region: Oberösterreich, Austria Programme type: Innovative Actions, Duration of project: 2004 December 2006 Funding: Total cost: 5.1 million, including 50% from the ERDF The programme "Regional Innovation System Upper Austria" (RIO) aimed to strengthen the regional innovation system of Oberösterreich (Upper Austria) and the innovation performance of the regional sectoral clusters, in particular by interconnecting the clusters through cross-sectoral networks with horizontal competence. The main aim of the programme was enhancing collaboration between the regional public and private innovation actors, in particular enterprises, knowledge-generating and knowledgedisseminating organisations like universities, training organisations, R&D institutes, technology transfer facilities and professional organisations. The most innovative feature of RIO was to build horizontal bridges and thus critical mass between the existing sectoral cluster initiatives in the region. It set up thematic business networks, conducted networking and knowledge-transfer activities and ran innovative pilot projects. RIO initiated four thematic networks as cross-sectoral platforms that bring together businesses and public actors (for example, competence centres, cluster initiatives and research institutions) from different sectors around shared interests and topics. These networks addressed areas such as human resources, research, technology, innovation, logistics and design and media. Furthermore, an innovative rural network was established. These networks not only encouraged networking activities between the actors of the Upper Austrian innovation networks, but also provided know-how transfer to and in between companies through best practice forums. This was accompanied by innovative pilot projects where experiences could immediately be channelled through to the enterprises in the networks The networks complemented the sectoral activities of the cluster initiatives that manage project funding and act as intermediaries between SMEs and universities or public authorities. The relation between the RIO thematic networks and the sectoral clusters is conceived in a matrix model, which is also reflected in the membership conditions. Those companies that sign up and pay the membership fee for a cluster initiative receive a rebate on the membership fees for the thematic networks. The RIO programme funded 38 projects involving around 130 participants from enterprises, research institutes, educational bodies, public authorities and support service providers. The pilot projects succeeded in enhancing the collaboration between schools and enterprises, attracting more students, in particular girls, into technical professions. This addressed one of the main obstacles to innovation in Upper Austria, the increasing lack of skilled labour in

2 technical professions. Another outstanding example of a pilot project was a businessuniversity platform for sharing non-damaging material testing facilities. The networks were transferring competences to the companies via best practice events, newsletters and other means of communication. Three of those networks are now selfsustained (human resources, design and media and logistics). The Clusterland Upper Austria Ltd provides the secretariat for two of the networks, while a logistics association has taken over the logistics network. The research and innovation network activities continue in a different format at CATT Innovation Management GmbH. RIO was characterised by a systematic and early stage involvement of all relevant economic and public actors in the region, both in the steering committee and in variable geometries in the different networks and projects. Stakeholder ownership, which is vital to successful projects and active networks, was built up. The partnership also proved to be stable through the creation of structures that provide active support, and accumulate know-how on project management and analytical capacities. In many ways, RIO prepared the ground for a range of actions in the new operational programme for Upper Austria and the strategic development plan through to I. PROJECT DESCRIPTION Project objectives The aim of the RIO programme was the development and further strengthening of the region as an innovation area through impulses to the players within its regional innovation system, including enterprises, knowledge-generating and knowledge-disseminating organisations like universities, institutes of applied sciences, training organisations, R&D bodies, technology transfer facilities, professional organisations, financial institutions, etc. The objectives of the programme were as follows: o enhancing the economic effect of innovation networks and clusters in Upper Austria, thereby promoting regional development and reducing regional disparities; o institutionalisation of networking between the business and the governance subsystems for innovation support, thereby improving coherence and cooperation between the different regional, provincial and local development agencies and associations; o promotion and increase of innovative productivity within pre-existing innovation and technology cluster bodies by generating synergies between the existing sectoral cluster initiatives; o development of competences in the area of process innovation and strengthening of the five Upper Austrian innovation policy priorities in cross-sectoral themes: human resources, research / technology / innovation (RTI); improving business competitiveness through the deployment of innovative logistics technologies; increasing the innovative capability and competitiveness of companies through the deployment of novel design and media technologies; and the creation of a regional innovation area; o tackling the shortage of skilled labour, particularly in technical professions;

3 o strengthening and qualitative advancement of Upper Austria s position among the top European regions in terms of regional networking 1. The Upper Austrian Technology and Marketing Company designed the RIO concept. An analysis of the thematic needs of the cluster companies was performed via structured interviews and customer questionnaires in the cluster initiatives. The respective needs were expressed by the Clusters Steering Committee and then fine-tuned together with the horizontal thematic networks into the matrix. The detailed thematic objectives in the different networks have been frequently updated and are formulated in annual working plans. Description/type of activity: The following types of activity were performed under the RIO programme. network communication - monthly newsletter - homepage as an inter-branch information and communications platform - direct mailings with activities, event previews and current branch-related news - information material: funding brochures, guidelines, leaflets, checklists - media activities - company interviews: branch-specific questionnaires, requirement surveys, information on activities, identification of specific branch expertise - benchmarking: investigation of special branch benchmarks and needs know-how transfer - design conference: annual specialist event - best-practice forums: interactively designed events with reports on experiences, discussion opportunities and networking, plus the possibility of company visits network projects - design stories - overview of design service suppliers - project initiation and support The Human Resources (HR) network fostered the introduction of innovative HR instruments in companies (e.g. e-learning tools, flexible working time models, employee participation, etc.) to improve work quality and work satisfaction and to advance the corresponding implementation measures in the companies. It also raised awareness of innovation and interest in technical professions. The approach of the HR network was designed to provide a platform for learning from the best in the region and to build up cooperation between the relevant public (education) and private (companies, advisers) actors. The HR projects concerned in particular attracting women and young people into technology professions, internship programmes and the development of a technical experimentation box for primary schools. They were implemented in cooperation with schools, universities/research institutes and companies. Many of the results and methodologies of the projects continue to be used and developed, e.g. the database for good practice, the Best Practice Forums for learning from entrepreneurs who had successfully introduced new HR management methods, and expert presentations on HR and skills management systems as well as annual conferences. The Research/Technology/Innovation network (RTI) focused on technology transfer in the activation of cooperation between science and business. A number of best-practice events 1 E.g. in the CLOE network of cluster organisations (

4 were organised at which research results and the impacts of technology transfers or patent management issues were presented to companies. Networking projects took place to raise businesses awareness of the importance of cooperation with research institutes and to publicise the services such institutes can provide to firms. Some projects formed the basis for the development of new products (e.g. polymer nanocomposites, the fusion of metal and natural fibres). Some projects concentrated on cross-border technology transfer or trade activities, particularly with Czech or Slovenian partners. The Logistics Network facilitated the deployment of the latest innovative logistics technologies (e-logistics, e-procurement, etc.), in particular within SMEs to promote their competitiveness. The participants in the network include both transport and logistics firms offering their services and manufacturing companies, both for inbound and outbound flows of goods and internal processes. Its activities include conferences, workshops for exchanges of good practices and expertise (e.g. on logistics in the face of EU enlargement, specialised technical possibilities for improving stock management), cooperation projects (e.g. on use of e-business tools in the logistics field and research regarding the economic benefits of companies' logistics investments), company visits (focussing in particular on SMEs) and analytical tasks, such as a study on the logistics demand structure in the region. A database of logistics concepts was set up to improve the knowledge of logistics concepts and methods. An overview of the training possibilities in the region for all levels from truck drivers to managers was developed and resembles other outputs available on the website. A Best Practice database on the Networks homepage helps improve knowledge management. The Design & Media (D&M) network promoted a combination of technologically functional and artistic design approaches to innovate product design in traditional companies and thereby help reduce cost pressures, find unique selling propositions, etc. The network provided guidance to companies in the deployment of the latest media technologies for the marketing of products and their companies. The pilot projects included company-specific needs analysis and brought together designers and companies. For many companies this was their first ever business contact with professional industrial designers. At the Best Practice Forums for crosssector learning effects, examples were presented of the application of design and media technologies. The first Design Conference was also organised. The Innovative Rural Network brought together on a local and provincial level the different business and local development associations, tourist offices, interest groups and technology centres that used to operate individually. To create networking and cooperation between them and to raise the awareness of innovation issues and the role of the local development actors, at least three actors had to participate in each project. The projects included mapping of human resources, improvements in the local authority's management processes, a spatial development study and awareness-raising of the potential for increasing added value of food and agricultural products. The latter activity also fed into the new Nutrition / Food cluster initiative as it encouraged in particular agricultural businesses to take part. Beneficiaries: The beneficiaries of RIO were almost all actors within the Upper Austria Innovation Network. These are mainly enterprises in different branches, addressed via the four cross-sectoral networks, and active either as recipients of knowledge-transfer activities or as contributors in terms of either providing R&D facilities or passing on experiences. On the other hand, public actors important in terms of the innovation capacities of a region benefited from RIO, including schools and higher education and research institutions, e.g. the University of Linz. A number of local authorities and actors was involved in the partnership

5 in order to make the innovation support activities in Upper Austria more coherent and transparent. Citizens also benefited, in particular pupils (more than participated in HR network activities) and researchers. II. POLITICAL AND STRATEGIC CONTEXT Strategic context: Upper Austria (Oberösterreich in German) is strongly industrialised (just 17% of the Austrian population, but generating 25% of GDP), has very low unemployment (currently slightly under 3%) and relatively high R&D investment (2.55% regional GDP). In 2007 around 1 billion euro were invested in Upper Austria in research (mostly applied research in companies) of which 80% came from industry. R&D support from the federal government had in recent years been reduced in Upper Austria, while the regional government has increased its R&D investments. The regional innovation system of Upper Austria is characterised by its well-equipped subsystems for business support and networks and for public authority and governance support. However, these used to exist in parallel with no optimal networking and coordination between the two subsystems and a lack of networking between regional management organisations and the Upper Austria Technology Network. In addition, there was a lack of innovation awareness and competence in large segments of the population and within many businesses, in particular SMEs in traditional sectors. This is aggravated by an increasing shortage of qualified employees in technical occupations and the brain drain from rural areas towards the capital. These shortages were first observed in enterprises in the plastics cluster during a screening exercise. The problems concerned on the one hand technical skills and, on the other skills, in modern HR management methods. In 1998 a five year programme for innovation had been adopted by the regional government and implemented with the support of the first Structural Funds available for Austria. Its approach was to build on existing industrial strengths and develop sectoral clusters, supported by a permanent secretariat. This was initially in the economics department of the regional government, then the TMG (Technologie- und Marketinggesellschaft Oberösterreich) and in what was now a subsidiary of it, Clusterland GmbH (logistics association). This programme led to the design of the RIO programme, which started in The strategic objective of RIO was to allow the knowledge gained and the experiences accrued from the implementation of the innovative actions under the ERDF to flow not only into the implementation of five regional economic development mission concepts, but also into the updating of the technical strategy programme ("Strategisches Programm Innovatives Oberösterreich 2010"). The activities of RIO were coordinated with the tourism concept (which was ERDF-funded and has now been transferred over to the LEADER programme forming part of the Rural Development Fund). Innovation: The most innovative element of RIO is the way it complements sectoral cluster initiatives with a horizontal matrix of thematic networks that cover horizontal issues of relevance for a number of different sectors. The RIO programme s projects on horizontal topics helped

6 generate cross-sector learning effects, using these innovative actions as experimental laboratories. Political support: RIO and its secretariat and management structure were set up and financially supported by the regional government of Upper Austria, the main local authorities and public actors, as well as by economic and professional chambers that are also members of the steering committee. III. IMPLEMENTATION Programming: The reason for the business-science networking activities was the fact that, industrial research aside, Upper Austria has a less distinctive technology-oriented research landscape than other Austrian provinces or other countries. The University of Linz, which was founded in 1966, has a comparatively small technical and natural sciences faculty, and most existing non-university R&D facilities were founded in the last few years. The research field of the University of Applied Sciences degree programmes is still being developed. In addition, the research landscape is comparatively heterogeneous, and, therefore, currently not transparent or attractive enough for SMEs. The creation of the human resource network was the answer to the increasing skills gap in manufacturing companies with regard to engineers and skilled technicians. In particular, the lack of women choosing technical, scientific and engineering careers offered an opportunity for overcoming these difficulties in the medium term. The actual starting point for the logistics network was the fact that Upper Austria has a very good transportation infrastructure. This includes the West motorway (A1), the Innkreis motorway (A8) and the Pyhrn motorway (A9, final completion in 2004), and the main western railway route, Danube ports and large rail terminals. These were already upgraded in recent years and will be further improved in the next few years (e.g. expansion of the highspeed western railway line, motorway-standard route connections to the Czech Republic, etc.). In combination with the central location in Austria, a common border with Bavaria, and the Czech Republic as a new EU Member State since 2004, this infrastructure makes Upper Austria an interesting production and logistics location. This gave scope for developing the competitiveness-enhancing function of logistics in the region, which is still underexploited, in particular within SMEs. According to experts, however, around 60% of a company s costs can be influenced by an improved deployment of logistical technologies. The starting point for the design and media activities was the fact that companies (esp. SMEs) are often unaware of the importance of design for product development or of the deployment of new media for the marketing of their products, causing them to miss out on opportunities to develop innovative solutions themselves and to market them better, thereby boosting their competitiveness. The Innovative Rural Network was developed to address the sizeable economic development disparities in the region, which is marked by three industrial population centres (Linz, Wels and Steyr) while the rest is rural. The idea was to bring together, at local and provincial level, the different businesses and local development associations and technology centres that used to operate individually, sector-by-sector and town-by-town. The individual projects were selected for funding on the basis of open calls for proposals submitted through a central application office and approved by the RIO steering committee.

7 Supporting and accompanying measure contracts were awarded through direct contracting. TMG provided intensive coaching for the preparation and implementation of innovation projects within some actions and support with monitoring these projects. Management structure, quality and effectiveness: The region s Technology Management and Business Development Agency (Technologie- und Marketing GmbH Oberösterreich - TMG) set up the cooperation platform for the Regional Innovation System Upper Austria to steer the RIO programme. This Steering Committee was composed of all regional and economic actors in Upper Austria (chambers of commerce and industry, company representatives, representatives from the innovation-assisting services sector, e.g. the University of Linz) and chaired by a representative of the Managing Authority. Through this management structure, actors were able to participate in the preparation of the programme and steer its implementation. TMG was founded in 1991 in the form of a limited, not-for-profit company. It is owned to the tune of 56% by the regional government, with the remainder in the hands of the chambers of commerce and industry and by local authorities (in particular the cities of Linz, Steyr and Wels). Roughly 50 to 60% of its budgets is derived from the region, and the rest from realestate income, revenue from management projects (e.g. EU funded), service contracts and sponsoring from industry. TMG does not provide any business services in commercial terms, but concentrates on networking activities, EU and other project management and communication and dissemination activities. In terms of business services, it only helps to identify needs and to find appropriate commercial service providers. The thematic networks, their meetings, communication activities and Best Practice Forums are all organised by a team of two to three TMG staff members (network manager, project manager, assistant). In December 2005, Clusterland GmbH was set up as a subsidiary of TMG to manage the sectoral cluster initiatives of Upper Austria (i.e. automotive, mechatronics, plastics, furniture and wood, health, food). Clusterland is also in public ownership (61% by TMG and 19.5% of the each by the Chamber of Commerce and the Federation of Industrialists). In addition to public funding, its revenues stem from the membership fees paid by companies in the different cluster initiatives. Partnership: Lively networking between the public and private partners, i.e. almost all the actors of the Upper Austria Innovation Network, took place within the framework of RIO. Cooperation is pursued between all types of companies. Within the last 10 years, some 75% of the companies participating in cooperation projects have been SMEs. The term "coopetition" best mirrors the flexible use of cooperative and competitive relations among business participants. Cooperation with the Managing Authority of the Objective 2 Programme of Upper Austria was maintained since it was the same as the Managing Authority for RIO. At present, the HR network has 500 or so companies (30% large enterprises, 47% SMEs, 23% micro enterprises) on the mailing list for its newsletter. This includes HR managers from medium and large companies in a variety of sectors, managing directors of SMEs, specialised HR consultants, public institutions, research and education bodies, multipliers and media. Around 820 people take part annually in the events organised by the HR network. The Design & Media network has network contacts. The number of members of the Logistics network has increased steadily, from 20 in 2004 to 190 by the end of 2008, including 100 enterprises (55% SMEs, 45% large enterprises), 25 schools/universities/research or other bodies, and some 75 individual members.

8 Joining a cluster initiative or a horizontal thematic network requires the signing of a membership declaration and the provision of selected company data for the Clusterland database. The fees tend to be symbolic and vary according to company size. There are rebates granted on network membership fees for the members of sectoral clusters. New members are attracted by direct contacts, network marketing, knowledge transfer through events, projects, studies, etc. Companies can also bring their business partner into the network. SMEs were made aware of the possibilities and drawn into participating through onsite visits. Marketing: RIO used a range of promotion and dissemination tools: learning platforms; network communication o monthly newsletter (e.g. 829 persons on the mailing list of the HR network) o homepage ( as an inter-branch information and communications platform, including brief project implementation reports to promote exchange and know-how transfer between the project actors o direct mailings with activities, event previews and current branch-related news o information material: funding brochures, guidelines, leaflets, checklists; media activities; company interviews: branch-specific questionnaires, requirement surveys, information on activities, identification of specific branch expertise; benchmarking: investigation of specific branch benchmarks and needs. In addition, the composition of the Steering Committee, which encompassed all relevant economic, public and scientific actors in the region, facilitated awareness-raising and communication in relation to RIO activities. Obstacles in terms of design or implementation: The particular challenge facing the HR network was to find a place for it within the distribution of competences between Federal Government (in charge of school and university education) and Region (vocational training). The other difficulty was to convince participants in the sector-specific cluster initiatives of the usefulness of getting together with enterprises in other sectoral clusters on horizontal issues such as HR management and skills, or design and media. As well as sound conceptual and analytical preparation and needs analysis, the matrix method for rebates of membership fees paid by cluster participants was used to trigger interest among companies. The main obstacle to the logistics activities was prevailing competition between the different participants. To overcome this, the joint and balanced involvement of competing companies in the relevant projects was maintained. Transferability: The methodology of the RIO network is straightforward and has already been applied to other sectors within the region and in other regions, for example: o since 2005, the Network Environmental Technology, a platform for suppliers, know-how carriers and technology users in the fields of water, waste, air, noise and soil. The network serves as a platform for companies in the environmental technology industry. It assists in

9 developing product and process innovations and supports businesses entering international markets; o the Design & Media network was extended to cover the Salzburg region; o the concept behind the Logistics network was transferred over to the Austrian regions of Steiermark and Vorarlberg, as well as over to Switzerland. Moreover, RIO has incorporated transferability as an integral part of the operational programme for This contributes to the quality of measures and to coherence when promoting the Regional Innovation System. IV. EFFECTIVENESS Effectiveness: The expected results from RIO were achieved in full. The networking activities in the region become more intensive, and the innovative productivity of economic and regional actors was boosted. In total, 38 projects in the areas of Human Resources, Research Technology & Innovation, Logistics and Design & Media were implemented to enhance the competitiveness of Upper Austria s businesses. Assorted contract research contacts resulted from the RTI science/enterprise networking projects. General awareness has improved within firms, in particular SMEs, about research facilities and services in the region. The HR actions were met with an overwhelming response from over pupils participating and also positive feedback from participating companies. A total of 465 people took part in the twelve Best Practice Forums on logistics aimed at conveying knowledge about modern logistics technologies to enterprises. 67 participants attended the seven design and media Best Practice Forums, which took place in and were aimed at raising awareness about the use and application of design and media technologies within businesses. The Regional Innovation Space network actively pursued 14 projects, most of them implemented via cooperation between regional players from the Upper Austria Innovation Network. Impact: RIO brought about the innovative, content-based and project-oriented development of existing structures and their increased and more efficient use. The programme succeeded in improving infrastructures for the regional innovation support system, and in promoting research centres, technology transfer, networking and cooperation. RIO concentrated on the transfer of research results and the opening up of research infrastructures for companies, which proved to be a successful concept. The networks succeeded in improving cooperation and networking ability on the part of companies. This was particularly positive as the projects in overarching subject fields resulted in cross-sector learning effects. against this background many RIO innovation projects helped companies in Upper Austria to develop business and promote cooperation. This contributed significantly to the innovation performance of Upper Austria achieving its best ever results. The RIO networks have been well accepted by Upper Austria companies, as revealed in a business survey. RIO improved the logistics competence of companies in Upper Austria. Cross-sector cooperation was also strengthened as the logistics network and projects brought together

10 companies from all branches throughout the supply chain. Furthermore, cooperation by companies with actors in the Technology Network with logistics competence was similarly improved. Although the design and media activities failed to generate pilot-projects in the strict sense, they were successful to the extent that they raised awareness of design and media issues in the region s companies and disseminated information on the services available. In the sector of HR development, topics such as recruiting, employee loyalty, career management, health promotion, etc. were embraced, which is particularly important in SMEs, most of which were lacking in specific HR management competences. The impact of HR projects in terms of attracting women and pupils into technical professions will be addressed by an ex-post evaluation. A new Nutrition / Food cluster initiative was set up in line with the same methodology used by the existing clusters and networks. The innovative rural network resulted in stronger cooperation between certain local and provincial public actors and in the definition of strategic development programmes for the "regional managers". The main result was the creation, in April 2006, of "Regionalmanagement Oberösterreich GmbH", which groups together small development initiatives and interest groups (including employers and farmers) in 382 towns and provides services through its six local offices in the area of regional development, e.g. on cooperation between local authorities, process management, regional governance, strategy development, project preparation and management (including with a view to EU-funded activities and cross-border cooperation), information and advice on rural and economic development, and labour market and social issues. RIO also influenced the strategic programme "Innovative Upper Austria 2010" ( which sets out the framework for innovation- and research-related actions under the Structural Fund Operational Programme (OP) for Upper Austria This strategic programme has been allocated 600 million ( 200 million from the regional government) in five thematic areas, most of them building on the RIO thematic networks. It is being accompanied by the Upper Austrian Council for Research and Technology and fits into the overall regional development strategy ("Landesentwicklungsleitbild ), other elements of which include social and cultural objectives. The OP also contains new elements, such as a thematic network on environmental technologies based on RIO methodology and a strand on risk capital and spin-offs. Sustainability: The RIO strategy is being continued and incorporated through implementation of the Strategic Programme Upper Austria Two main strands of this strategy are networking and technology transfer. Three of the four thematic networks continue to operate: the networks on HR and on Design & Media under the roof of Clusterland GmbH, and the Logistics network within the Verein Netzwerk Logistik logistical network. The Logistics network is also integrated in the new OP and has hugely expanded its range of members since RIO ended. A new activity, in the form of a platform for job offers in the field of logistics, is also being developed. Logistics activities are being placed on an international footing and the provision of logistics for largescale events, such as football matches or concerts, is being developed as a theme with which to attract young people into logistics professions.

11 The HR network has scheduled a quantitative evaluation of the impact of RIO and has set strategic objectives for its future, in particular initiating cooperation projects between businesses, educational and research institutions, and supporting multiple exchanges of experiences between companies. V. CONCLUSIONS Lessons learnt: o For a sustainable networking policy it is necessary for the instruments governing the cluster and network initiatives to form part of regional and national innovation policy and for them to be well connected with other activities. o Trust is a very important commodity for networking and demands particular attention, esp. during a network s starting phase. Highly important trust factors are personal contacts between companies, transparency within activities, and joint activities. o A clear networking strategy between companies and the Research & Development Institution is necessary to strengthen a region s innovation performance. o It pays already to take the issue of financial sustainability of projects and networks into account as early as the design and development phase. o Define clear rules for participation and operation from the very outset. o A marked orientation towards companies' needs is essential for the quality and acceptance of activities and networks. o There are strong spillovers among sectors, esp. in the field of process innovation. o Clustering and networking need a critical mass of stable human resources (2 5 permanent staff members). o Stable secretariats (e.g. Regionalmanagement and TMG / Clusterland) are a useful tool for accruing the experience and know-how necessary for successful and efficient project design and implementation. Good practices: o Neutrality as regards political interests or those of individual firms in the definition of objectives, the programming of activities and financing decisions, was vital for the success of RIO. This was based on a broad and balanced representation of all relevant stakeholders in each thematic area from the outset (i.e. the steering committee of RIO and network membership). This approach is also necessary in order to generate ownership among the network partners, without which the networks and projects could not function. o A demand-based approach is necessary so as to mobilise companies into participation. Once the activities have proved successful, in particular in terms of costs and time savings (in the case of logistics activities, around -25% of costs and, in many cases, a reduction in transport times covering a range from 20 days to just three days), and also once the competence of the secretariat is proven, it becomes easier to expand network membership and attract competent partners. o SMEs often have neither any specialised HR managers nor the time to spontaneously participate in networks, despite their need for HR management skills. Therefore, within the framework of the HR network around 70 companies are visited each year, partly at their request, and partly on the initiative of the network secretariat.

12 CONTACT Gerlinde Pöchhacker TMG Upper Austrian Technology and Marketing Company Hafenstraße A-4020 Linz Austria Tel: Web-sites: and Briefing date: 14/01/2008