Page 1 - 201904G20Entrepreneurship Newsletter

Entrepreneurship Research Center on G20 Economies VOL.6 April 2019

National Digital Strategies Support SMEs and Start-ups

Given its great potential to stimulate economic growth, Digital profits earned from patented inventions. Support is also in place to
transformation is on the top priority of the national agenda in many help small, early stage companies raise equity finance through the
countries, In order to maximize the effectiveness of the digital Seed Enterprise Investment Scheme (SEIS), which offers tax reliefs
economy and promote innovation and social prosperity, several G20 to individual investors who purchase new shares in those companies.
members have launched the “National Digital Strategy”, such as Enterprise Investment Scheme (EIS), which offers tax reliefs to
“UK Digital Strategy” launched in March 2017, “Digital Strategy investors in high risk and growing companies. According to German
2025” of German government in 2016, and “Digital Canada “Digital Strategy 2025”, INVEST programme launched in 2016
150” in 2014 and then “Digital Canada 150 2.0” in 2015. All of grant subsidies of 20% for venture capital investments from private
the strategies are in aims to establish a digital economy-friendly individuals of up to €500,000 (previously: €250,000) and a tax refund
business environment, accelerate the development and application on capital gains on INVEST shares.
of digital technology, and foster the digital transformation. And Regulation that keeps pace with technological change, in order to
every individual and every business are ensured to have the skills ensure that regulation across sectors open to realize the benefits
and confidence to seize the opportunities of digital technology and of new and disruptive digital innovations, while continuing to protect
have easy access to high-quality internet wherever they live, work, the public. The UK Challenger Business Programme has helped
travel or learn. The cybersecurity and digital transformation of establish an environment in which innovative businesses can thrive,
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government are on the top of priority as well.
and is also another channel for businesses to alert government
SMEs are the backbone of economy in most of countries, the regulatory barriers to growth. The German government set up
and entrepreneurship is the main engine for innovation and a digital single market at the technical and legal level, strengthens
employment. So, promoting SMEs and entrepreneurship to better the management of online platforms and intermediaries, ensures
adapt to digital economy is also the focus of the government. supervision, removes legal barriers and special obstacles faced by
We found that the digital strategies of UK, Germany and Canada cross-border e-commerce, and reflects data openness, equality,
have the following aspects in common to support SMEs and and security in digital legislation. German government establish
entrepreneurship in the digital economy: a "pilot area" for new technologies and new business models,
providing the necessary space for innovation.
To establish an innovation and entrepreneur-friendly regulation system
Flexible intellectual property (IP) regime is also vital. the Digital
It is very important to establish an innovation and entrepreneur-
friendly regulation system, which keeps pace with the technological Economy Bill of UK gives designers a new way of giving the public
development. notice of their IP rights with a web address. In Digital Canada 150
2.0, the intellectual property laws will be amended to harmonize
An effective tax structure: UK government has delivered highly with key international treaties.
competitive headline corporation tax rates and introduced a range of To promote hi-tech commercialization and entrepreneurship
initiatives to further support innovative businesses. Patent Box, which
enables companies to apply a reduced 10% rate of corporation tax to An innovation-friendly regulatory environment is crucial to allowing