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2.2. Policy delivery modes
Support to SMEs may be delivered by governments in accordance with rather diverse models, engaging
different types of agencies, targeting particular firms and delivering services in different ways. For
example, programmes may be delivered at the regional level or nation-wide. This may reflect differing
political structures, such as federal, centralised or devolved authority. In OECD countries, often there is a
unique relationship between central and regional authorities whereby responsibility for government
support for business is clearly owned by one or shared between them. Secondly, programmes may focus
on SMEs or similar segments or be open to all firms irrespective of size. Whilst SMEs tend to be the
focus of much support, larger companies also receive help from government in areas such as training and
foreign direct investment. A third dimension concerns the sector orientation of programmes, which may
target a specific area or be open to all firms irrespective of sector. Contemporary competitive pressures
have led to considerable investment in innovative hi-tech and R&D companies in many economies. At the
same time, sectors such as agriculture have remained equally important for political and economic well-
being and have also attracted special support in some OECD economies. In these areas, there may be
overlap between general internationalisation support and sector-specific actions by government.
Support to firms may be delivered by different players: government agencies, government-owned banks
or public service providers, as well as private institutions, when part of the cost is paid by government
agencies. Since the 1960s, national Trade Promotion Organisations (TPOs), which are most often state
organs, have become the central institution for many countries’ export promotion efforts, delivering
commercial intelligence, markets research, promotion services, training and advice (De Wulf, 2001).
The dimensions discussed above may be configured in a number of ways to arrive at a particular
government support structure. OECD (2008) proposes a framework, shown in Table 2.2, to provide a
basis for analysing government support structures.
Table 2.2. Structure of Government Support Programmes
Service focus
 Access
o General market information
o Specific market analysis
o Trade fairs and trade missions
o Direct support through foreign representation
o Inward market access
 Financial
o Export insurance and loan guarantees
o Development finance and venture finance
o Direct financial support
 Capabilities
o Capabilities linked to human capital
o Capabilities linked to process and product technologies
o Capabilities linked to logistics and IT
 Business Environment
o International trade conditions
o Home market conditions
o Regulatory developments
Mode of international activity
 Exporting
 Importing
 Foreign operations and
collaborations
Target group
 Regional vs. national
 All SMEs vs. specific segments
 Specific sectors vs. all sectors
Provision of support
 Government agencies
 Affiliated service providers
 Public institutions
 Private firms
 Independent service providers
Source: OECD (2008).