Pilot exercise on result indicators
Operational Programme
"Entrepreneurship and Innovation"
DG REGIO Evaluation Network Meeting
Brussels, 22 June 2012
OP «Entrepreneurship and
Innovation»
Priority: Promotion of Entrepreneurship
• Total OP budget = 1,1 billion EUR (ERDF contribution 736,73
mln EUR)
• Covers all Latvia`s territory as one NUTS2 Convergence region
• 3 priorities and 5 measures aimed at development of science,
promotion of innovation and entrepreneurship, promotion of R&D
technology transfer and applied research, strenghtening of R&D
and science infrastructure, promotion of cooperation between
scientists and entrepreneurs by supporting creation of new
enterprises and facilitating access to finance
• Absorption capacity = 1 534 projects approved exceeding 641,8
mln EUR
• Committed funds = 84 % of the total allocation
• Payments to beneficiaries = 49 % of the total allocation
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EU Funds allocation in OP
«Entrepreneurship and Innovations»
by priorities
mln. EUR, % of total EU funding of OP *
77,0; 11%
23,0; 3%
Priority „Science and
Innovations”
184,3; 25%
452,5; 61%
Priority “Access to
Finances”
Priority “Promotion of
Entrepreneurship”
Priority “Technical
Assistance”
* EU Funding according to decisions of Cabinet of Ministers by 31.05.2012
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COM pilot exercise on future
result indicators
Example: Promotion of Entrepreneurship
• Objective: Promotion of economic activity and
strenghthening of competitiveness by setting up new
enterprises and development of existing ones
• In order to adress challenges of the macroeconimical
situation (crisis) and to ensure targeted strenghthening
of international competitiveness of industry sectors,
new activity was introduced in 2010 :
- Access to international trade markets –
strengthening of competitiveness of industry sectors
- Funding available for new activity =7,1 mln EUR
(ERDF contribution 4,3 mln EUR)
• Currently we have 3 output indicators and 2 result
indicators which represent main activities. These
indicators are defined in line with the priority
objectives.
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Applying new COM approach
The main logics of the analisys was to apply new logics for outputs and
results to demonstrate their direct contribution to priority objective
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Applying new COM approach
The main tasks done:
1)Discussion on the definition of objective: it was actually not one but two
objectives
2)Spliting objectives of priority according to the expected results : do the
results lead directly to whole objective? No. It was necessary to divide existing
priority into 3 priorities according to the aims of existing activities
3)Definition of new results leading to objective: 3 new results
4)Distinguishing between outputs and results
5)Analisys of data needed! Recollection of data is problematic. Additional
source – database of State revenue Service is neede to be used – since more
specific data on performance of the companies is needed (e.g. information on
turnover. Information has to be publically available, simple
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Applying new COM approach
Indicators
What do you want to
change? (result)
Priority 1
to promote the formation
of new enterprises
Policy Action
ERDF
Allocation
Result Indicators
Output Indicators
Name: active enterprises
Definition: Total number of active
enterprises (in supported sectors)
Source: Commercial register
Baseline: available
Target: Increase in total number of
active enterprises by X % (to be
defined based on research)
comparing to prior year
Name: enterprises newly
established in incubators
Definition: Survival rate of
graduated enterprises 1
year after leaving
incubator
Source: Commercial register
Baseline: Available
Target: To be defined X%
Setting up and
operating business
incubators (2.3.2.1.
Business
incubators)
Name: Total percentage of
potential entrepreneurs
consulted
Definition: Number of
potential entrepreneurs
consulted that have
established enterprise 1
year after consultation
received
Source: Business plans of
potential entrepreneurs,
Commercial register
Baseline: Available
Consulting
and
encouraging persons 2,9 mEUR
that are interested in
establishing
enterprises, assisting
in carrying out a
business plan (2.3.1.2.
Measure to encourage
innovations
and
business start – up)
29 mEUR
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Applying new COM approach
What do you want to
change? (result)
Result Indicators
to enhance the
Name: export performance
competitiveness of Definition: Total amount of export from
existing
Latvia (supported companies)
enterprises
Source: Central Statistical Bureau of
Latvia
Baseline: Available
Target: Increase in export amount in
Latvia in supported sectors by X%
comparing to prior year
Name: foreign direct investments
Definition: Total amount of foreign
direct investments
Baseline: Available

Target: Increase in total amount of
foreign direct investments by X%
comparing to prior year (involved
companies compared to not
involved companies operating in
the same sectors)
Output Indicators
Name: participating
enterprises in
international fairs
Definition: Number of
projects supported *
Source: Number of
agreements signed
Baseline: Available
Target: To be defined
Name: potential investors
consulted
Definition: Percentage of
investors consulted that
have invested in Latvian
companies
Source: State Revenue
Service, Commercial
register
Baseline: Available
Target: To be defined X%
Policy Action
ERDF
Allocation
Support to participate
in international
fairs (2.3.1.1.1.
Access to
international trade
markets – external
marketing)
38,8 mEUR
Representation
abroad for LV
companies to do
business (2.3.1.1.2.
Access to
international trade
markets –
strengthening of
competitiveness of
industry sector)
7 mEUR
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Applying new COM approach
What do you want to
change? (result)
Result Indicators
to enhance the
competitiveness of
Name: Turnover of supported
existing
companies
enterprises
Definition: Increase of turnover in
supported companies
Source: State revenue service
Target: : Increase of turnover in
supported companies by 10% 1
year after support received
Output Indicators
Name: Companies
within the cluster
Definition: Number of
companies involved in
cluster activity
Source: Agreements
signed (management
information system)
Baseline:Available
Target: 300 *
Policy Action
ERDF Allocation
Support of
4,8 mEUR
companies to
implement
activities within
cluster programme
(2.3.2.3. Cluster
programme)
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Territory development index of
novad and republic cities, 2010
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Applying new COM approach
What do you want
to change?
(result)
Decreasing
regional
disparities
Result Indicators
Output Indicators
Name: Territory development
Name: enterprises
index
supported in specially
assisted areas
Definition: Decrease in differences
between of development indexes Definition: Number of
of supported and not supported
enterprises in
regions in Latvia
specially assisted
areas that have
Source: Central Statistical Bureau
received support for
Baseline: Available
improving
Target:
competitiveness
Source: Number of
projects completed
Baseline: Available *
Target: 280 **
Policy Action
ERDF
Allocation
Investment aid to
45 mEUR
enterprises in
specially
assisted areas
(2.3.2.2. Co –
financing to the
investments in
micro, small and
medium – sized
enterprises
operating in the
specially
assisted areas)
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Lessons learned and issues
discussed
• Exercise as a good start for changing approach in order to
set appropriate result and output indicators in next planning
period
• Possibility to re – evaluate current systemic approach
• The new approach suggests more focused priorities so that
the specific result could be determined and measured
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Lessons learned and issues
discussed
• Re – thinking the design of priority axis led to dividing the
current priority axis into 3 seperate priorities
• Relevant data sources and approach to obtaining data is of
great importance which needs sufficient consideration
• The planned change and availability of data shall be
considered when re – defining result indicators
• Sufficient consideration and analysis when determining
targets
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Thank you!
Iruma Kravale
Deputy Director,
EU Funds Strategy Department
Ministry of Finance, LATVIA
[email protected]
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