Born globals and their value chains.
Date: 2019-01-08
Institutions: Eurofound
Subjects: aid to undertakings, case study, entrepreneurship, globalisation, industrial cooperation, industrial manufacturing, international cooperation, research report, small and medium-sized enterprises

RESEARCH REPORT

Future of manufacturing
Born globals and their  
value chains

Future of manufacturing
Born globals and their  
value chains

When citing this report, please use the following wording: 
Eurofound (2018), Born globals and their value chains, Publications Office of the European Union, Luxembourg. 

Authors: David Smallbone, Hang Do, Robert Blackburn (Small Business Research Centre, Kingston University), Iñigo Isusi, 
Antonio Corral and Jessica Durán (IKEI), Valentina Patrini (Eurofound)

Research managers: Irene Mandl and Valentina Patrini

Eurofound project: Future of Manufacturing in Europe

Acknowledgements: This overview report is based on findings from seven born globals’ value chains and 28 policy 
measures across 16 countries in Europe and beyond in the framework of the project Future of Manufacturing in  
Europe (FOME).

Luxembourg: Publications Office of the European Union

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Contents

Executive summary 

Policy context 

Key findings 

Policy pointers 

1 

Introduction 

1.1.  Objectives and scope of the study  

1.2.  Key concepts 

1.3.  Methodology 

2 

Born globals in global value chains 

2.1.  Description of the born globals analysed 

2.2. 

Internationalisation activities of the analysed born globals 

2.3.  The global value chains of born globals  

2.4.  Main obstacles to international cooperation and their solutions  

2.5.  Support for born globals and their value chain partners 

3 

 Policy measures supporting born globals and SMEs in their  
global value chains  

3.1.  EU level 

3.2. 

Illustrative examples of national policy measures  

4 

Conclusions and lessons learned  

4.1.  Key findings from the born global case studies  

4.2.  Support instruments addressing the challenges of  
internationalisation and international cooperation 

4.3.  Challenges related to the internationalisation policy process  

4.4.  Policy pointers 

References 

Annexes 

Annex 1: Description of global value chain partners  

Annex 2: Providers of national contributions 

1

1

1

2

3

3

3

4

9

9

13

16

24

28

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33

35

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60

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69

69

71

List of tables

Table 1:  Overview of the born global case studies analysed 

Table 2:  Overview of the 28 analysed policy measures 

Table 3:  Product or service specialisation of the born globals under study 

Table 4:  Main international activities of the analysed born globals 

Table 5:  Main activities of the analysed born globals in global value chains 

Table 6: 

 Brief overview of the main roles assumed by the born globals and  
associated global value chain partners under study 

Table 7: 

Examples of prizes and awards received by the born globals analysed 

Table 8: 

Table 9: 

 Main EU programmes and instruments promoting SMEs’  
internationalisation 

 Types of internationalisation support offered by public and  
private sector organisations in the EU27 

Table 10:  Summary of outcomes and impact of the 28 investigated measures 

Table 11: 

 Examples of challenges to internationalisation and international  
cooperation and solutions applied by born globals and their  
global value chain partners  

5

7

10

14

16

19

30

35

37

48

57

List of abbreviations

AWEX Walloon Agency for Export and Foreign Investment (Belgium)

B2B business to business

B2C business to consumer

BMWi BMWi-Markterschließungsprogramm (Germany)

CCIR Chamber of Commerce and Industry (Romania)

COSME Competitiveness of Enterprises and SMEs programme

DG GROW Directorate-General for Internal Market, Industry, Entrepreneurship and SMEs

DHI Grant Scheme for Demonstration Projects, Feasibility Studies and Investment Preparatory 

Studies (Netherlands)

EC European Commission

EEN Enterprise Europe Network

EU European Union

FDI

foreign direct investment

GVC global value chain

GVK Global Growth Competencies (Denmark)

HVO High Value Opportunities (UK)

ICDK Innovation Centre Denmark

ICT information and communication technology

IPO Intellectual Property Office (UK)

IPR intellectual property right

JETRO Japan External Trade Organisation

NACE European Classification of Economic Activities

NGO non-governmental organisation

NHS National Health Service (UK)

OTE Open to Export (UK)

R&D research and development

RIT Regional Industry Tied-up (Japan)

SBA Small Business Act for Europe

SME small and medium-sized enterprise

SOWAT System Open Water Advanced Technology

STC Spain Tech Centre (Spain)

UAE United Arab Emirates

UK United Kingdom

USA United States of America

Executive summary

Globalisation, that is the trend of undertaking economic 
activity that transcends national boundaries, has 
enhanced the speed and scope of internationalising small 
and medium entreprises (SMEs), including so-called 
‘born global’ firms. These firms are often described in 
the literature as young, innovative and growth-oriented 
enterprises with strong networking capabilities. Hence, 
they are likely to outperform their counterparts in terms 
of export speed, intensity and scope, and contribute 
significantly to economic development and job creation. 
However, although there is evidence of globalisation 
and theories to explain it, there is a lack of knowledge 
about the ways in which born globals negotiate their 
internationalisation pathways, acquire and manage their 
resources, construct their networks and seek support in 
this process.

This project, therefore, aims to examine how born 
globals establish, participate in and manage their 
global value chains (GVCs) and how existing support for 
internationalising SMEs, and particularly born globals, 
could be improved. More specifically, the research seeks 
to identify the born globals’ motivation and challenges in 
engaging in internationalisation, and how international 
cooperation affects their performance. At the same 
time, the report analyses policies across European 
and non-European countries to examine the extent 
to which previous action has addressed the needs of 
internationalising SMEs/born globals and to offer policy 
pointers. 

The study was carried out in the period 2016–2018 as part 
of the Future of Manufacturing in Europe pilot project 
proposed by the European Parliament and delegated to 
Eurofound by the European Commission (DG GROW). The 
research involves the investigation of seven born globals’ 
value chains and 28 policy measures across 16 countries in 
Europe and beyond.

Policy context
The European Commission has identified 
internationalisation as one of the main focuses of the EU’s 
strategies. This has been reflected in the introduction of 
the Small Business Act for Europe (SBA) since 2008, and 
the Europe 2020 strategy to reinforce the economy based 
on smart, sustainable and inclusive growth. As a result, 
internationalisation support has been prioritised and 
developed in a variety of forms at both EU and national 
levels to motivate SMEs to internationalise, not only 
within the EU but also to third countries. Furthermore, as 
shown in the annual report on European SMEs (European 
Commission, 2017a), manufacturing SMEs are seen as 
some of the key contributors to the economy of the EU28, 
generating 58% of employment and 42% of total value 
added in 2016. Their increasing engagement in GVCs is also 
regarded as a significant accelerator of their international 
performance and growth. Hence, a number of initiatives 
have been launched at the European, national and 
regional levels to support internationalising SMEs either 

directly or indirectly. However, the effectiveness of these 
lines of action appears to be unknown since there is, on 
the whole, an absence of monitoring and evaluation of 
how they impact the beneficiaries and the economy. Given 
this deficiency in policy development, this study also seeks 
to marshal what evidence is available as well as to collect 
primary data from born globals and policymakers.

Key findings
The born global case studies show a broad diversity of 
international engagement in GVCs, in different forms and 
stages of firm development, ranging from subcontracting 
and networking to direct export, international technical 
cooperation and joint ventures. Their incentives to 
internationalise are a combination of being ‘necessity-
driven’ – intended to ensure business survival and 
sustainability – and ‘opportunity-driven’ – the result 
of identifying potential international market demand. 
Overall, internationalisation plays a critical role in the 
operation of these firms, and it significantly impacts their 
own, as well as their international partners’ and other 
stakeholders’, performance. Findings from the born global 
case studies suggest a number of challenges that push 
SMEs to internationalise, including:

 

the complexity of regulations and administrative 
burdens

  understanding and meeting certification and product 

requirements

  uncertainty resulting from fluctuations in exchange 

rates

  differences in business cultures and language barriers

  finding customers and partners abroad

  managing relationships with international partners

 

competition from low-cost producers

  access to financial support

  a negative image on the part of the country of origin

  a lack of in-house resources and competencies

  uncertainty and risk in the overseas market

The common solutions applied by the studied born globals 
are to enhance their competencies and access to external 
resources, negotiating, hedging, following certification and 
technical requirements, networking and adjusting their 
strategies in terms of price, quality and location focus.

Although governments seek to promote 
internationalisation, the effectiveness of this is 
questionable. The perceived value of external support 
remains controversial amongst all seven cases analysed. 
While some firms value external support in relation to 
areas such as R&D, access to finance, new premises 
support and business networking, others strongly criticise 
the benefits of existing measures.

1

European and national measures exhibit vast diversity 
in terms of the objectives and types of support for SME 
internationalisation. The majority of the 28 support 
measures investigated here involve access to finance, 
networking, advice and information or the regulation and 
promotion of access to foreign markets. However, only 
a few measures provide tailored support to meet firms 
at different stages of internationalisation (for instance, 
born globals) or in different sectors, contexts or locations. 
The research also found that some firms seeking to 
internationalise benefited indirectly from accessing 
domestic support measures that sought to promote firm 
growth and innovation. 

The main factors associated with policy success are 
related to the flexibility and comprehensiveness of 
policy measures, having tailor-made support adapted 
to ‘real business needs’ and low administrative burdens. 
As regards the content of service provision, networking 
facilitation and access to finance are both in high 
demand. Nevertheless, challenges in the operation and 
administration of certain measures do arise, because 
of either a lack of resources or problems with cross-
institutional partnership management. Monitoring and 
evaluation of the impact and outcomes of the majority 
of these measures remains weak. While a few measures 
provide clear indicators, others have no structured and 
systematic method for monitoring. Most evaluations are 
conducted internally and informally, which may yield 
biased results. 

Policy pointers
The findings of this study suggest a number of ways 
in which policy could be developed to enhance the 

effectiveness and impact of measures to meet the 
needs of SMEs/born globals and to promote their 
internationalisation. These include:

 

facilitating access to external resources, and in 
particular finance and management resources

  providing access to specialised and reliable assistance 

and advice

  promoting international business cooperation and 

networking activities

  promoting the image of the country of origin

  providing tailored as well as integrated services to 

support internationalisation

  developing more specific measures targeting 
born globals rather than just firms that are  
internationalising

  enhancing the monitoring and evaluation of outcomes 

and impacts of policy measures

The absence of robust evidence on the effectiveness of 
current support measures for internationalisation is a 
fundamental weakness because of the inability to fine-
tune measures in the light of experience and learning. 
Moreover, the relative absence of measures to help 
specifically born globals overcome the distinct challenges 
associated with the speed of their internationalisation 
(such as higher risks and cash-flow difficulties) is 
also worthy of attention. Hence, there is room for 
improvements to be brought to policy measures targeted 
at born global enterprises that would benefit these 
companies and improve their ability to contribute to 
economic development and job creation.  

2

Born globals and their value chains1 

Introduction

Small and medium-sized enterprises (SMEs) are the 
backbone of the European economy and are pivotal in 
generating economic growth, innovation, jobs and social 
integration. Recent evidence shows that SMEs account 
for 99.8% of all enterprises and contribute 67% of total 
private sector employment and almost 60% of the total 
value added within the EU (European Commission, 
2017b). This contribution has also been growing. During 
2011–2016, SMEs generated around 85% of the new jobs 
and accounted for over two-thirds of total private sector 
employment in the EU (European Commission, n.d.-a). 

Against this backdrop, the internationalisation of SMEs, 
and particularly their export capability, has received 
increased attention and is considered as a key growth 
strategy in many economies. However, the heterogeneity 
of the SME population in terms of size, age, location, 
sector, capacity and capabilities is also recognised. 
This is reflected in their strategic orientation and focus, 
particularly with regard to their target market, growth 
intentions and planning of the internationalisation process 
(Blackburn, 2016). Undoubtedly, their internationalisation 
behaviour and focus have directly contributed to their role 
and level of involvement in the GVC (OECD, 2008).

An increase in market competition and the opening up 
of international markets has encouraged many SMEs to 
consider and actively participate in the GVC. This grants 
them access to a wider range and scale of opportunities 
and resources. Globalisation, therefore, has accelerated 
the emergence of ‘born globals’ (Cavusgil and Knight, 
2015). Born globals are enterprises that, soon after 
inception, achieve high export shares in several foreign 
countries. They have been found to be driven by the 
mindset of their owners and managers and a need to 
attract more customers than their domestic markets afford 
(Mandl and Celikel-Esser, 2015). Evidence from Eurofound 
(2016) suggests that born globals account for 2.5% of 
all SMEs in the EU, and 12% of young enterprises. They 
are focused mainly on the manufacturing, services and 
trade industries. Born globals are also characterised by a 
high level of engagement in innovation, technology and/
or exclusive design. Furthermore, they are embedded 
in international networks, and well-functioning cross-
border relations are an important element for their 
success (Ciravegna et al, 2014). However, there is a lack of 
robust evidence on the value chains that born globals are 
involved in and how policy support has addressed and can 
address their needs.

1.1.  Objectives and scope of the 

study 

This project is a part of the Future of Manufacturing in 
Europe pilot project proposed by the European Parliament 
and delegated to Eurofound by the European Commission 
(DG GROW). It was carried out from 2016 to 2018.

The project aims to deepen the knowledge of how born 
globals manage their GVCs related to manufacturing and 

how existing internationalisation support for SMEs and 
born globals can be enhanced. The specific objectives of 
this project are to:

 

 

 

 

identify the drivers and obstacles for born globals and 
their cooperation partners to engage in international 
activities, differentiating between European and 
global target markets

illustrate the role of born globals in GVCs, together 
with their stages in the supply chain and cooperation 
models and practices with their partner firms

illustrate the effects of born globals’ international 
activities, notably on the economic performance and 
employment of not only the born globals themselves 
but also their cooperation partners

identify success factors with respect to achieving 
positive economic and labour market effects of 
the involved firms due to internationalisation and 
international cooperation 

  provide policy pointers about how public 

policymakers can (better) support born globals (or, 
more generally, SME internationalisation) 

The report is structured in three main parts. Chapter 2 
analyses seven case studies of born globals and their GVC 
partners, looking at internationalisation activities, GVCs, 
drivers of and obstacles to internationalisation, the effects 
of such activities on the born globals’ performance and the 
external support for internationalisation from which these 
firms benefited. 

Chapter 3 gives an overview of the key policy measures 
supporting SMEs’ internationalisation which are promoted 
at the EU level as well as a cross-country analysis of 28 
selected measures regarding types of support, objectives, 
operation and administration, delivery mechanisms, 
monitoring and evaluation, and assessment of the 
outcomes and impact of the support. 

Finally, Chapter 4 brings together the main findings 
of both sets of case studies (born globals and policy 
measures) and discusses the lessons learned about ways 
in which policy can enhance the internationalisation of 
manufacturing born globals and SMEs.

1.2.  Key concepts

1.2.1.  Born global enterprise 
SME internationalisation has been discussed in a variety of 
theories over the last 40 years (Lu and Beamish, 2001; Love 
and Roper, 2015; Emontspool and Servais, 2017; Sozuer et 
al, 2017; Nummela, 2018). Traditional internationalisation 
theories such as the stage model (or Uppsala model) 
(Johanson and Vahlne, 1977, 1990, 2006), network theory 
(Johanson and Vahlne, 2003; Sharma and Blomstermo, 
2003) and the innovation-related model (Ruzzier et 
al, 2006) are often used to describe and analyse firms’ 
internationalisation behaviour. 

3

According to the stage model, firms often internationalise 
by focusing initially on their home market and then enter 
a foreign market which is geographically and culturally 
close to it (Johanson and Vahlne, 1990). After having 
gained international experience, they expand to more 
distant markets, which often entails increased uncertainty. 
This evolution is also reflected in the selection of the 
market entry modes (Johanson and Wiedersheim-Paul, 
1975), often starting with ad hoc exporting activities and 
exporting through intermediaries, then moving towards 
direct exports and, eventually, outward foreign direct 
investment (FDI). 

The traditional internationalisation theories were 
challenged by the identification of ‘born global’ companies 
(Bell et al, 2001, 2003). As a result of globalisation and 
technological advances, these firms start exporting within 
a couple of years of their inception (Cavusgil and Knight, 
2009), skipping some of the steps characterising the 
traditional stage model of internationalisation. According 
to data from the Global Entrepreneurship Monitor (GEM, 
2011), born globals represent 2.5% of all SMEs and 12% of 
young enterprises (Eurofound, 2016). 

Born globals’ market selection is often reactive in nature, 
meaning that they initially enter the markets where 
they have identified an existing, or potential, demand 
for their products or services, by using their existing 
network connections and previous experience (Coviello, 
2006; Jones et al, 2018). Usually customer-oriented, 
born globals define their product offering and marketing 
strategies according to the dynamics of their target market 
(Gabrielsson et al, 2012).

There is empirical evidence that born globals’ entry modes 
tend not to follow conventional stage models (Leonidou 
and Samiee, 2012), although they are expected to adopt 
less resource-intensive entry modes as a reaction to their 
resource constraints (Cavusgil and Knight, 2009). Born 
globals are often innovative and tend to expand in foreign 
markets more quickly than other companies, confirming 
the observation that firms with highly sophisticated 
knowledge bases are likely to internationalise much more 
rapidly than those with more basic capabilities (Bell et al, 
2001).

The literature has not as yet provided a universal definition 
of born globals. This leads to a wide range of terminology 
(some synonyms being ‘international new ventures’, ‘global 
start-ups’, ‘infant multinationals’, ‘micro multinationals’, 
‘born internationals’ and ‘innate exporters’) and data 
collection methods and varying degrees of comparability 
and relevance for policy. As recent research has stressed 
(Cesinger et al, 2012; Eurofound, 2012; Madsen, 2013), a 
single definition would be useful. To that end, Eurofound 
(2012) recently put forward a first step towards a European 
definition of born globals.

The definition of ‘born globals’ (Box 1) used for the 
current study builds on and slightly adapts the suggestion 
provided in Eurofound (2012).

1.2.2.  The global value chain
As part of the promotion of globalisation amongst 
SMEs, the concept of the GVC is significant as it takes 

4

into account a number of features that have specific 
ramifications for SMEs (OECD, 2014, 2015). These include 
the increasing dispersion and fragmentation of the value 
chain phases across countries, countries’ enhanced 
specialisation in particular tasks, the role of the different 
actors within this process as well as the relevance of 
networks and cooperation as mechanisms in global 
production (OECD 2013a, 2013b). 

Born global enterprises are firmly embedded in 
international networks and GVCs, where open innovation 
and public–private research and development cooperation 
are supported. In this sense, these well-functioning cross-
border relations are an important factor in their success 
(Coviello et al, 2011; Schweizer, 2013). 

A value chain refers to the whole range of activities that 
firms undertake to bring a product or service from its 
conception to its end use by final consumers (Porter, 1985). 
Within the context of this project, two main types of GVCs 
can be identified:

 

input value chain: the born global enterprise’s own 
value chain, where the born global enterprise acts as 
the main beneficiary of the supply chain (the born 
global enterprise as ‘client’)

  output value chain: where the born global enterprise 
participates in GVCs (the born global enterprise as 
‘seller’)

In this regard, the GVC partner of the born global enterprise 
can be either an international client of the born global 
enterprise or an international supplier or distributor of 
services/products to the born global enterprise. Examples 
of supplying activities may include, amongst others:

 

 

 

raw materials/machines, (semi-)finished 
manufacturing supplies, etc.

transport and logistics services (e.g. logistics, courier, 
transport, storage and warehouse services)

technological/innovation-related services (R&D 
services, technical testing, data analysis services, etc.)

  other services that constitute part of the GVC (for 

example, legal, consultancy, advertising, recruiting, 
design, marketing, security services, promotion 
activities, maintenance and repair services, etc.)

GVC partners may include private firms and other actors 
(e.g. universities, research institutes, NGOs). 

1.3.  Methodology

1.3.1. 

 Case studies of born globals’  
value chains

The first part of this study analyses seven in-depth 
case studies, each of which consists of one born global 
enterprise and two or three of its associated GVC partners. 
These born global enterprises are located in seven 
EU Member States (Denmark, Estonia, Germany, the 
Netherlands, Romania, Spain and the United Kingdom –  
UK); whereas the value chain partners are located in 
different EU Member States (Belgium, Finland, Germany, 
Sweden and the UK) and third countries (Hong Kong, 

Born globals and their value chainsIntroduction

India, Japan, Malaysia, Taiwan, the United Arab Emirates 
and the United States of America – USA).

The starting point for selecting potential case studies 
was the identification of 40 born global enterprises in 
accordance with the definition in Box 1. The born globals 
had to have at least two value chain partners that were 
located in a different country from the born global. At 
least one of the cooperating companies (either the born 
global enterprise or one of the two GVC partners) had to 
be a manufacturing company (European Classification of 
Economic Activities – NACE C). While the born global had 
to be an SME, the international partners could be of any 
size. From the 40 identified cases, 7 were selected, bearing 
in mind a need for some variety of firm size, age, location, 
type of international activities, number of foreign markets 
and role in the value chain.

Table 1 provides an overview of the seven chosen case 
studies.

Between February 2017 and January 2018, interviews were 
conducted with the managers/owners of the born global 
enterprises and representatives of their GVC partners. 
These followed a half-standardised qualitative interview 
guideline to ensure comparability across cases while at 
the same time allowing the specificities of the individual 
cases to be considered. The gathered information 
was summarised in stand-alone case studies1 and a 
comparative analysis was carried out (see Chapter 2).

1.3.2.  Analysis of policy instruments
The second part of the report analyses 28 
internationalisation support instruments from 16 
countries in Europe and beyond. The investigated 
measures offer support to internationalising SMEs either 
directly (by promoting international activities) or indirectly 
(when the measure indirectly enhances the firm’s 
internationalisation by supporting aspects such as firm 
growth, access to finance, start-up support, innovation or 

Box 1: Definition of ‘born globals’ used for this study

A born global is a business organisation that, from inception, seeks to derive significant competitive advantage from the 
use of resources and the sale of outputs in multiple countries.

The main criteria defining a born global for this study are:

 

 

 

 

it is an independent, individual company or belongs to a group with fewer than 249 total employees

its headquarters are based in any of the EU country clusters selected in the inception phase of the study (see Table 3)

it was founded within the last seven years

it is actively involved in any type of internationalisation (e.g. export, import, technical cooperation, partnership, 
subcontracting, FDI) in at least two foreign markets and generates at least 20% of its turnover abroad

 

it is an SME with a maximum of 249 employees 

Source: Authors’ elaboration building on Eurofound (2012) (adjusted to the requirements of this specific study)

Table 1: Overview of the born global case studies analysed

Born global

Founded in

Original location 
of headquarters

Sector

Number of 
employees at the 
time of interview

Global value chain 
members interviewed

Blue Ocean 
Robotics 

2013

Odense 
(Denmark)

NACE Rev. 2 code 72.19 
(Other research and 
experimental development 
on natural sciences and 
engineering)

110 worldwide, 45 
at headquarters in 
Denmark

COMODULE 

2014

Berlin and 
Tallinn (Estonia 
and Germany)

NACE Rev. 2 code 
26.51 (Manufacture 
of instruments and 
appliances for measuring, 
testing and navigation)

15 

  Suitable 

Technologies (USA)

  Blue Ocean 

Robotics Sweden 
(Sweden)

  Materflow (Finland)

  AVS Electronics 

(HK) (Hong Kong, 
China)

  Tektro (Taiwan)

Frog Bikes

2013

Egham (UK)

NACE Rev. 2 code 30.92 
(Manufacture of bicycles 
and invalid carriages)

1 

Available at http://eurofound.link/fomeef18005

48 employees

  Shimano (Japan)

  Jagwire (Taiwan)

(Continued)

5

Table 1: Continued

Born global

Founded in

Original location 
of headquarters

Sector

Number of 
employees at the 
time of interview

Global value chain 
members interviewed

Graphenea

2010

San Sebastián 
(Spain)

NACE Rev. 2 code 20.59 
(Manufacture of other 
chemical products)

Khar & 
Partners

2013

Sibiu (Romania)

NACE Rev. 2 code 72 
(Scientific R&D) 

KristallTurm 

2010

Lenggries 
(Germany)

NACE Rev. 2 code 25.1 
(Manufacture of structural 
metal products)

Recornect

2013

Eindhoven 
(Netherlands)

Source: Authors’ own elaboration

NACE Rev. 2 code 32.50 
(Manufacture of medical 
and dental instruments 
and supplies)

22 

7 

34

5 

  AIXTRON (UK)

  Graphit Kropfmühl 

(Germany)

  GroWater (USA)

  Pipeco (Malaysia)

  ProEdge (India)

  HPS Middle East 
(United Arab 
Emirates)

  Fusser Enterprises 

(USA)

  Telerex (Belgium 
and Netherlands)

  Britplas (UK)

networking). While the project’s main focus was measures 
targeted specifically at born globals, policy measures 
supporting SME internationalisation more generally were 
also considered. 

Relevant policy measures may provide support at any 
stage of the internationalisation process and may be 
provided by the public sector (governments or their 
authorities) or the social partners. Private initiatives (such 
as support from business consultants) are not considered. 

Based on these criteria, a typology of support instruments 
was developed to guide the selection process. The 
categories of instruments considered are as follows:

  awareness raising: stressing the benefits of 

internationalisation

  advice: including recommendations and information 
provision on target markets, public support and 
investors abroad, as well as negotiation assistance

 

information databases: portals, market intelligence 
and operational information on internationalisation 
processes, barriers and access to foreign markets 

  one-stop shops for internationalisation: platforms 
combining information and/or providing an overview 
of all or the main support measures available for 
internationalisation 

  networking: support in identifying and approaching 
potential business partners (including individual 
suppliers and customers, but also alliances and 
clusters) and investors abroad; providing contacts 
to exporters searching for business partners; other 
support for international collaborations

  access to finance: subsidies, loans, guarantees, 
liaising with potential investors; crowdfunding; 

6

support with funding applications; tax  
incentives

 

international business incubators: organisations 
located abroad that provide a supporting environment 
for the development of new firms (Chan and Lau, 2005)

  education and training for staff and management 
on internationalisation-related matters, promoting 
staff exchanges and experiences abroad and support 
related to international recruitment and human 
resource management

 

trade missions: support for businesses participating 
in overseas trade missions

  certification: support in the process related to 

a product’s certification abroad, namely legal or 
administrative procedures related to standardisation 
or product or service registration or recognition

  business registration: legal or administrative 

procedures related to registering a business, 
subsidiary or economic activity in another country

 

 

image campaigns: enhancement of the reputation of 
national products, services or companies abroad

legal or administrative initiatives related to aspects 
such as the free movement of workers across borders 
and the removal or reduction of national tariff barriers 
where non-EU countries are involved 

  protection of intellectual property rights (IPRs): 

including, for example, a reduction in registration and 
protection costs and/or the duration of procedures

  business environment and inter-country 

cooperation support: governmental and diplomatic 
support for businesses with international trade 
relations

Born globals and their value chainsIntroduction

Information on the 28 instruments was gathered through 
desk research and interviews with the policy implementers 
between April and September 2017, following a half-
standardised interview guideline to ensure comparability 
across instruments while at the same time allowing 
the specific features of each individual measure to be 
considered. The gathered information was summarised in 
stand-alone case studies, and a comparative analysis of 
these is offered in Chapter 3.

An overview of the 28 policy measures is provided in 
Table 2.2

  R&D, innovation and sectoral programmes: financial 

support and advice for innovative SMEs in their 
international expansion

 

integrated support services: combining several of 
the above 

  other types of support

Based on the above criteria and typology, a total of 103 
policy instruments were initially identified; of these, 28 
were selected, bearing in mind the need for a variety 
of types of support, geographical location and type of 
provider/administrator. 

Table 2: Overview of the 28 analysed policy measures

Policy measure

Country

Initiator/administrator

Type of support

Incubator Support

Australia

National government

Advice, international business incubators, 
networking

Go Silicon Valley

Austria

Business organisation

Advice, education and training, networking

Communication Support

Belgium

Government agency

Access to finance

Global Growth Competencies 
(GVK)

Innovation Centre Denmark 
(ICDK)

Denmark

Education provider

Education and training, networking

Denmark

National government

Advice, education and training, networking, R&D, 
innovation and sectoral programmes 

VITUS

Denmark

National government

Advice

Development of Clusters

Estonia

National government

 Access to finance, education and training, 
networking

Startup Estonia

Estonia

National government

Integrated support services 

BMWi-
Markterschließungsprogramm 
(BMWi)

Germany

National government

Advice, information databases, networking, trade 
missions

Start Alliance

Germany

Regional development 
agency

Advice, networking, provision of education and 
training

100% Made in Italy

FINEST SpA

Italy

Italy

Regional government

Image campaigns

Regional government 

Access to finance, advice, networking

Regional Industry Tied-up (RIT) 

Japan

National government

Japan

National government

Advice, information databases, networking, trade 
missions 

Advice, education and training, information 
databases, networking, trade missions

SMEs’ CEO Network Enhancing 
Project

Foreign Investment 
Ombudsman

Foreign Investment and One 
Window Policy

Grant Scheme for 
Demonstration Projects, 
Feasibility Studies and 
Investment Preparatory 
Studies (DHI)

Korea

Government agency

Legal or administrative initiatives

Nepal2

National government

Access to finance, legal or administrative 
initiatives 

Netherlands

National government

Access to finance, advice, information databases

(Continued)

2  While the other 27 policy measures will be published separately and will be available on the FOME website, the analysis of the Foreign Investment and One Window 

Policy will not be published due to the limited available information.

7

Table 2: Continued

Policy measure

Country

Initiator/administrator

Type of support

Matchmaking Facility

Netherlands

National government

Access to finance, advice

Chamber of Commerce and 
Industry (CCIR)

Romania

National government

Awareness raising, education and training, 
information databases, legal and administrative 
initiatives, networking, trade missions  

Global Lehian

ICEX Next

Spain

Spain

Regional government

Integrated support services 

National government

Advice, access to finance, information databases, 
IPR protection, networking, trade missions

International Mobility Law

Spain

National government

Business registration, legal or administrative 
initiatives 

Spain Tech Centre (STC)

Spain

National government and 
public corporation

Advice, networking

Born Global

Sweden

Education provider

Education and training, networking

High Value Opportunities 
(HVO)

IP Attaché Network 

Open to Export (OTE)

UK

UK

UK

National government

Advice, information databases, networking

National government

Advice, IPR protection 

National government

Advice, image campaigns, information databases, 
networking, trade missions

Startup Global

USA

National government

Awareness raising, information databases, 
networking 

Source: Authors’ own elaboration

8

Born globals and their value chains2  Born globals in global value 

chains

2.1.  Description of the born 
globals analysed

2.1.1.  Age and location 
Most of the born global enterprises in this study were set 
up in 2013, with the exception of the German and Spanish 
entities (which were founded in 2010) and the Estonian 
case study (2014). 

Several of the born globals in the study sample are located 
in urban but not central metropolitan areas (Blue Ocean 
Robotics Group in Odense, Graphenea in San Sebastián, 
Khar & Partners in Sibiu, Recornect in Eindhoven), 
whereas others are located in large urban areas 
(COMODULE, originally set up in Tallinn, and Frog Bikes, 
located in the Greater London area) and one is in a small 
rural town (KristallTurm, located in Lenggries, southern 
Bavaria). The born globals’ headquarters are still located 
in the area in which they were originally set up with the 
sole exception of COMODULE, whose headquarters moved 
from Tallinn to Berlin in 2015 for a number of reasons, 
including overcoming the poor image associated with 
being an eastern European company and better access to 
its main target market and external investors.3

In addition to their headquarters, most of the selected 
born globals (with the exception of KristallTurm and 
Recornect) have other premises, sometimes located in the 
same country of origin but often in other EU and non-EU 
countries. 

2.1.2. 

 Main product or service specialisation 
and clients

The seven born globals in the sample specialise in the 
production of very different products or services, as can be 
seen in Table 3. 

All products offered by these born globals are highly 
innovative in the sense that they represent new products 
with innovative features in their respective markets. 

For instance, in the case of COMODULE, no connectivity 
technology had previously been offered on bikes when this 
company’s product went to market. 

Although the evidence on the causality between innovation 
and internationalisation is not unequivocal, the empirical 
studies suggesting that innovation fosters exporting 
are significantly more numerous than those reporting 
the reverse effect (Love and Roper, 2015). Firms that 
are internationally active tend to be more innovative; at 
the same time, internationalisation can foster further 
innovations in parallel to the increase in the firm’s foreign 
marketplace knowledge (Falk et al, 2014). In some 
cases, internationalisation as a process is seen as an 
innovation in itself (Eurofound, 2012). Data on European 
SMEs consistently show a positive correlation between 
productivity levels, technological innovation, R&D activities 
and skill intensity on the one hand and export levels on the 
other (Falk et al, 2014), and combining internationalisation 
and innovation seems to support sales growth, performance 
and productivity (Golovko and Valentini, 2011).

Both product and process innovation can drive a firm’s 
internationalisation, and product innovation is observed 
to be particularly closely linked to internationalisation in 
the case of young ventures, as it tends to occur at early 
stages in the product life cycle (Cassiman et al, 2010; 
Lamotte and Colovic, 2013). This can act as a stimulus 
for internationalisation, especially when the firm relies 
on a unique product, or when it is aiming to exploit its 
innovation before it has been imitated or replicated by 
competitors (Oviatt and McDougall, 1995).

R&D activities, knowledge capture and business 
intelligence take on particular relevance, especially 
in highly competitive international environments 
(Raymond et al, 2014). Not surprisingly, some of the case 
study companies devote substantial efforts to R&D and 
continuous innovation. Protection for SMEs’ intellectual 
property and knowledge base – through, for instance, 
direct protection (patents or copyright), secrecy (trade 

Box 2: Examples of additional premises amongst analysed born globals 

Blue Ocean Robotics has nine joint ventures as part of the Blue Ocean Robotics Group, located all around the world 
(Australia, Germany, Hong Kong, Lithuania, the Netherlands, Norway, Sweden, Turkey and the USA). The Estonian 
COMODULE combines its headquarters in Berlin with a development and engineering office in Tallinn (Estonia), and 
Graphenea has an additional research facility, also located in San Sebastián, as well as a branch (Graphenea Inc.) in 
the Cambridge area (Massachusetts) in the USA. Frog Bikes has additional manufacturing premises in South Wales 
in addition to its headquarters in Egham (UK). Khar & Partners has a research facility in Cristian, a commune on the 
outskirts of the Romanian city of Sibiu; its headquarters are located in the same city.

3 

In February 2015, a German company COMODULE GmbH was established and transformed into the parent enterprise in order to receive investment from High-Tech 
Gründerfonds, the biggest German investor in start-ups, and one that invests only in German-registered companies.

9

Table 3: Product or service specialisation of the born globals under study

Born global

Description 

Blue Ocean Robotics

Development, creation and commercialisation of robotic solutions and services for different sectors 
(manufacturing, healthcare and welfare, education, construction, agriculture and fisheries, safety 
and security, and offshore activities: wind, oil and gas).

COMODULE 

Frog Bikes

Graphenea

Khar & Partners

KristallTurm 

Recornect

Development and production of specific information and communication technology  
(ICT)-based monitoring platform solutions combining hardware and software for light electric 
vehicles (e-bikes and e-scooters) and for different uses (control and collection of data on vehicles’ 
technical performance and user behaviour, vehicle tracking, management of warranties and direct 
engagement with customers via smartphone applications).

Design and manufacturing of top-quality lightweight children’s bikes and accessories at affordable 
prices.

Production of high-quality graphene in different formats for R&D and industrial applications.

Engineering and biology, including the development of several products, although only one 
(System Open Water Advanced Technology – SOWAT) is already in the commercial phase. SOWAT is 
a water filtration system that can filter water from any natural source to produce drinking water for 
500 to 5,000 people.

Production and construction of highly customisable high-rope courses for leisure and sports 
purposes. They are suitable for indoor as well as outdoor sites, including urban spaces. The 
company also offers a complete service package for its high-rope courses (site analysis on project 
feasibility, financing and leasing options, project visualisation for presentation to sponsors and 
decision makers, delivery and assembly at the site of operation, training of on-site and maintenance 
personnel, delivery of safety equipment, inspection and maintenance activities, and advice on 
permits and insurance).

Production of interactive media walls combining specialised software (GRASP) and hardware for use 
in the healthcare sector, specifically in the area of psychiatry and mental healthcare. Recornect also 
provides a number of services, namely the GRASP Community (where users of the GRASP platform 
can obtain updates and support for their GRASP software) and interior design consultancy services 
for mental healthcare institutions and isolation rooms within them.

Source: Authors’ own elaboration

Box 3: Innovative nature of born globals’ products: Frog Bikes

Frog Bikes’ product innovation derives from its efforts to design a product based on the anatomy of the child rather 
than merely a scaled-down version of an adult bike, which is what other children’s bike manufacturers offer. This new 
design,  the fruit of the company’s cooperation with Brunel University, reduces the Q-factor (the space between the 
pedals), allowing children to push more directly down when cycling, thus converting more of their energy into motion. 
Furthermore, bikes feature a light but strong aluminium frame (offering lightness without compromising performance) 
as well as several high-quality cycling components imported from top international manufacturers. Frog Bikes devotes 
5% of its turnover to R&D activities on average. 

secrets) or licensing – influences their success in foreign 
markets (Falize and Coeurderoy, 2012). Compared to 
larger companies, SMEs and born globals may be in 
a disadvantaged position as regards property rights 
given the costs related to registration and protection 
(Blackburn, 2016). Nevertheless, a few of the analysed 
born globals have some experience with patents. For 
instance, Graphenea owns eight patents, primarily in 
relation to the development of a number of techniques to 
produce graphene adapted to the customers’ needs. The 
KristallTurm construction system is a registered trademark 
and protected by a patent, and KristallTurm has also been 
continuously enhancing this to improve production and 
assembly efficiency as well as enlarging the portfolio of 
add-ons.

All the born globals in the sample are involved in business-
to-business (B2B) relationships as opposed to business-
to-consumer (B2C) ones. Thus, examples of main clients 
include public and private business clients (in different 
sectors for Blue Ocean Robotics, and leisure facility 
owners/operators in the case of KristallTurm); industry 
leaders (in the manufacturing of light electric vehicles –  
e-bikes and e-scooters – in Asia, Europe and the USA in 
the case of COMODULE); local or regional authorities 
and humanitarian NGOs (engaged in areas deprived of 
drinking water, particularly in developing countries and in 
conflict zones in the case of Khar & Partners; universities, 
technology centres and large companies’ research services 
in the most advanced countries in the world (Graphenea); 
European public and private institutions (offering 

10

Born globals and their value chainsmental and psychiatric care and treatment – psychiatric 
institutions and hospitals – in the case of Recornect); or 
supplying independent retailers in different countries 
(Frog Bikes). In spite of this, some of the born globals 
are also entering into B2C relationships. COMODULE, 
for example, offers end users the option of extending 
the licence for several connectivity solutions integrated 
into their e-vehicles by paying renewal fees directly to 
COMODULE. Frog Bikes also sells its products online 
through its website.

2.1.3.  Employment 
The seven analysed born global enterprises range from 
micro enterprises such as Recornect and Khar & Partners 
(with 3 and 7 employees, respectively) to medium-
sized ones like Blue Ocean Robotics (with 45 staff in its 
headquarters in Denmark and 110 employees worldwide 
including its joint ventures and spin-offs) (these figures do 
not include the owners). 

The innovative nature of the analysed born globals 
is reflected in the make-up of their employees, who 
are usually highly educated, with backgrounds that 
vary according to company specialisation. Blue Ocean 
Robotics’ employees have a background in the natural 
sciences, engineering and ICTs, although it also employs 
highly educated individuals with a business school or 
a law background. COMODULE employs 15 experts in 
digital media, marketing, wearables, connected vehicle 
technology, software and hardware development. Three-
quarters of Graphenea’s employees are in the R&D and 
production section, where they all hold a university 
degree, primarily in chemistry and physics; several also 
have PhDs. Most of Khar & Partners’ employees have a 
background in the biochemical sciences. 

An exception to this is KristallTurm, which employs 
mainly mid-level skilled staff members (metalworkers and 
welders for manufacturing steel components, carpenters 
and joiners for producing wood components, and 
administrative staff). 
The workforce of some of the analysed born global 
enterprises is international and young. This is in line with 
extant literature stressing that recruiting staff with an 
international background, especially for key positions in 
the company, can help counter the disadvantages faced by 
born globals, especially their newness and their lack of a 
knowledge base (Fernandes Crespo et al, 2015).

Blue Ocean Robotics employees are of 12 different 
nationalities, and the COMODULE team includes 
employees from Germany, Greece and Singapore in 

Born globals in global value chains

addition to Estonia; the oldest employee is 31. Frog Bikes’ 
employees come from a number of different countries, 
including Brazil, Canada, Germany, India, Pakistan and the 
USA (although 80% of the team originate from European 
countries). 

By way of contrast, the workforce of the Dutch, German, 
Romanian and Spanish born globals is of national origin, 
although this is compensated for by a high level of 
international experience and the ability to speak foreign 
languages (usually English). 

The workforce of the German and Spanish born globals is 
quite young (most of the German born global companies 
are under 40 years of age, while in the Spanish case the 
average age is 30).

Finally, it is worth emphasising that two of the analysed 
born global enterprises (namely, Graphenea and Khar 
& Partners) have access to an international scientific 
committee that helps the companies to find scientific and 
technical solutions to specific problems.

2.1.4.  Characteristics of the founder(s)
The founders of the analysed born global enterprises 
are characterised by two main traits. On the one hand, 
with the exceptions of KristallTurm and Graphenea, they 
comprise a group of co-founders who decided to set up 
the company (two founders in the case of Recornect, 
Khar & Partners and Frog Bikes, three in the case of Blue 
Ocean Robotics and four in the case of COMODULE). In 
some cases, the co-founders have known each other for a 
long time, since university, for example (that is, the Danish 
and Estonian born globals) or through previous work 
experience (the Dutch and Romanian cases). 

On the other hand, the academic background and 
the personal and professional experience of the born 
global founders is usually linked to their company’s 
specialisation: expertise in robotics and artificial 
intelligence in the case of Blue Ocean Robotics’ co-
founding team, engineering expertise in the case of 
COMODULE’s founders, experience of the carpentry 
business in the case of KristallTurm and a complementary 
combination of technical and psychiatric nursing 
backgrounds in the case of Recornect’s founders. 
However, in other cases, the founders’ academic and 
professional background is not directly related to 
the sectoral knowledge, but rather to business and 
internationalisation skills and competencies. Good 
examples of this are the founder of Graphenea and one of 
the founders of Frog Bikes, both of whom had successful 

Box 4: Examples of existing links amongst founders

The three founders of Blue Ocean Robotics have known each other since the late 1980s, when they studied together 
at university. The founders of COMODULE met at the Tallinn University of Technology (Estonia) on an engineering and 
product development project where they developed and built fully electric racing cars and competed against other 
universities around the world. The two founders of Recornect met during a pilot project in mental healthcare being 
carried out by Philips in a Dutch hospital. The two co-founders of Khar & Partners used to work together in France, one 
of them being the supervisor of the other in their work as consultants for food supplement projects. The two co-founders 
of the British born global Frog Bikes are married.

11

careers in multinational companies behind them. In both 
these cases, the experience and relationships gained from 
their professional networks were very helpful in setting 
up and expanding their born globals, particularly in 
international markets.

These findings are in line with extant literature 
showing that founders’ and managers’ experience 
and characteristics strongly influence a firm’s 
internationalisation process (Ciravegna et al, 2014; 
Fernandes Crespo et al, 2015). Younger founders seem 
to be more likely to become exporters (Falk et al, 2014). 
Specific risk attitudes and perceptions of the effects 
and costs of international activities, the recognition of 
new opportunities (Madsen and Servais, 1997), a global 
mindset and international orientation (Cavusgil and Nevin, 
1981; Ciravegna et al, 2014; European Commission, 2014b), 
an entrepreneurial orientation, managerial talent (Knight 
and Cavusgil, 2004; European Commission, 2015a) and an 
international profile and previous international experience 
on the part of the firms’ directors (Zucchella et al, 2007) 
foster the international orientation of businesses. 

In all the born globals studied here, the founders’ 
identification of a business opportunity that had not yet 
been fully exploited in the market and was often linked 
to the founders’ previous personal and professional 
experiences led to the start of the (international) business 
activities. 

2.1.5.  Ownership and management structures 
In more than half of the analysed born globals 
(KristallTurm, Khar & Partners, Recornect and Frog 
Bikes), the company belongs entirely to its founder(s), 
although it is not necessarily equally shared amongst 
them (Khar & Partners’ ownership is divided 60:40). 
In the three other born globals, ownership is shared 
between the company founders and other entities, such 
as external public and or private investors or employees. 
In addition to facilitating access to external capital and 
finance to consolidate the company’s development and 
growth, these external investors play other key roles for 
the company such as bringing expertise and specific 
knowledge to the company or strengthening its product 
portfolio.

The born globals with a higher number of employees 
are characterised by more complex and formalised 
organisational structures. In the case of COMODULE, the 
business responsibilities are distributed amongst the three 
co-founders (CEO and hardware/firmware, sales/product 

development and software development) and other 
employees are organisationally associated with these, 
though these responsibilities can change and overlap over 
time. KristallTurm is managed by the owner, who acts 
as the CEO, assisted by a second CEO who does not hold 
shares in the business. The CEO, a business development 
director and a scientific director compose Graphenea’s 
management board. Frog Bikes’ management board 
consists of the founding couple plus three managers 
(finance, marketing and R&D). All key decisions on 
business management are discussed by this team.

Most of the born globals have a business plan that 
includes, amongst other elements, international business 
targets and plans for how to achieve these. Such business 
plans are usually drafted by the company founders/CEOs 
(COMODULE), by the founders/CEOs in collaboration 
with key staff members and collaborators (usually other 
company management board members, as in the cases 
of Graphenea and Frog Bikes) or by the founders with the 
support of an external enterprise organisation (Recornect). 
They are usually updated relatively frequently, essentially 
to keep up with changes in the market and clients’ 
needs (for instance, COMODULE’s product road map was 
changed 10 times between the fourth quarter of 2016 
and the first quarter of 2017, and Frog Bikes updates its 
business plan every six months). 

2.1.6.  Recent evolution 
The available data show that the born globals have been 
thriving in recent years, and enjoy positive prospects for 
the future. For example, in 2015, Blue Ocean Robotics’ 
annual turnover grew by approximately 120% year on year. 
Graphenea has also experienced rapid growth since its 
creation, with its turnover increasing from approximately 
€130,000 in 2012 to €1,280,000 in 2016. Frog Bikes has 
grown fast from its inception, with average annual revenue 
growth of 85% and profitability growing by four to five 
percentage points annually, generating an annual turnover 
of more than GBP 5 million (€5.69 million as at 9 October 
2018) as of February 2017 and a five-fold increase in the 
number of employees.

The literature also confirms a mainly positive relationship 
between born globals’ internationalisation and their 
performance after start-up (Zahra and Garvis, 2000). 
Nonetheless, less evidence is available regarding born 
globals’ evolution after their first few years of existence 
(going beyond the initial stage and encompassing 
maturation, survival and overall growth) (Almor et al, 2014; 

Box 5: Ownership structures in the sample of born globals

In the case of Blue Ocean Robotics, 66.7% of the company is owned by the three original founders, 28.3% is owned by 
a group of external investors and the remaining 5% is owned by employees. In COMODULE, the Estonian founders hold 
a majority share of the company’s corporate capital, and this is complemented by a minority interest on the part of 
several private investors (including one of its main value chain partners) and a German public–private venture capital 
investment fund. The ownership of Graphenea is divided amongst several local business angels, the company’s CEO and 
a large Spanish energy-related multinational. A small stake was expected to remain in the hands of several regional and 
local public institutions (via a public risk capital company) for the first five years (but this was handed over even earlier 
than this). 

12

Born globals and their value chainsHagen and Zucchella, 2014). Studies report a non-linear 
evolution over time on the part of born globals; they must 
strike a delicate balance between stability and openness 
in terms of management knowledge and innovation 
(Hagen and Zucchella, 2014), and operational and financial 
aspects increasingly come to the fore over time, leading 
them away from the company’s overall effectiveness 
(Trudgen and Freeman, 2014).

2.2.  Internationalisation activities 

of the analysed born globals

2.2.1.  Going global
The very concept of the born global implies that the 
company is deeply involved in internationalisation 
activities from a very young age. Indeed, all born 
global enterprises analysed here launched their 
internationalisation activities as soon as they were 
founded. For example, COMODULE presented its first 
prototype product at an international event in Spain soon 
after its establishment, and it was subsequently admitted 
to a business accelerator in Berlin (Germany). Khar & 
Partners engaged in scientific research cooperation with 
international partners from its founding. Frog Bikes began 
to internationalise just three months after it was founded, 
and within a few months the company was already 
exporting to 12 countries. KristallTurm and Graphenea 
engaged in international activities about two years after 
start-up.

In general, this confirms the observation that born 
globals – often operating in niche markets – need to 
internationalise quickly, unlike other companies, whose 
international expansions and accumulation of knowledge 
of foreign markets usually occurs more gradually (Torkkeli 
et al, 2012).

The literature shows that the motives for companies’ 
decision to internationalise can be both internal and 
external and both proactive and reactive. The internal 
aspect relates mainly to differential firm advantages, 
networks, available production capacity, accumulated 
unsold inventory and economies resulting from additional 
orders. The external ones correspond to foreign country 
regulations, the availability of foreign market information, 
increased competition, value chain advantages, export 
promotion programmes, profit and growth opportunities 
and serendipitous events including the receipt of 
unsolicited orders, amongst others (Crick, 2007).

Meanwhile, proactive motives derive from firms’ internal 
decisions and their identification of and interest in 
specific competencies or market opportunities, based on 
their available mix of resources (Kubíčková et al, 2014). 
They consist mainly of profit and growth objectives, 
managerial initiatives, technological competencies, the 
uniqueness of the product, foreign market opportunities, 
market information, economies of scale and tax 
benefits (Hollensen, 2008). By contrast, reactive motives 
derive from pressures or threats in the domestic or 
foreign markets, and even within the business, such as 
competitive pressure, overproduction or excess capacity, 
unsolicited foreign orders, an opportunity to extend sales 

Born globals in global value chains

of seasonal products, and proximity to international 
customers or psychological distance (Hollensen, 2008).
Most of the included born globals referred to the small 
size of their national markets, which made it necessary 
for them to engage internationally in order to ensure 
business viability. Thus, in the cases of COMODULE, 
Graphenea, Khar & Partners, KristallTurm and Recornect, 
internationalisation appears to have been largely 
necessity-driven: there was limited domestic demand for 
their specific products and in some cases local component 
suppliers were lacking. 

By contrast, Frog Bikes’ decision to go international 
appears to have been more opportunity-driven. Although 
its original business plan was to focus on the domestic 
market in the first year after start-up and launch its 
products to foreign markets in the second or third 
year, the company identified a major opportunity to 
generate sales in foreign markets when clients from 
Scandinavia approached it. This motivated it to change 
its business plan and begin exporting immediately. 
Finally, the case of Blue Ocean Robotics demonstrates 
the interaction of opportunity- and necessity-driven 
factors in internationalisation, as its international 
activities are closely related to the two other elements 
in its business model, namely product development 
and commercialisation. The company cooperates 
internationally to develop new robots and generates new 
market opportunities in the process.

The need to be physically present in the target market 
is also mentioned. Blue Ocean Robotics believes that 
it needs to be present in the markets where potential 
customers are located. For this purpose, the company 
stresses the importance of having a joint venture led by 
a CEO who speaks the local language, knows the local 
customs, rules and laws and has a large network and great 
knowledge of robotics.

In some cases, this firm international orientation has 
been boosted by specific events. For Khar & Partners, 
product expansion was made possible through the firm’s 
participation in international fairs and international start-
up competitions. Graphenea suggests that becoming a 
partner of the European Commission’s Graphene Flagship 
Initiative gave the company the opportunity to access a 
very large network of key European universities, research 
centres and companies. 

2.2.2.  Main international activities 
The born global enterprises examined in this 
study are actively engaged in a variety of types of 
internationalisation-related activities, and several modes 
of internationalisation are conducted in parallel (see 
Table 4). The most common type of internationalisation 
involves international commercial cooperation activities 
with a network of international distributors, sales agents 
or retailers (Blue Ocean Robotics, COMODULE, Frog 
Bikes, Graphenea, Khar & Partners, KristallTurm and 
Recornect), followed by exporting and international 
subcontracting activities (COMODULE, Frog Bikes, 
Graphenea, Khar & Partners, KristallTurm and Recornect) 
and international R&D and technical cooperation (Blue 
Ocean Robotics, COMODULE, Frog Bikes, Graphenea, 

13

Khar & Partners and Recornect). Other less common 
international activities include the establishment of 
international joint ventures (Blue Ocean Robotics), 
international investors in the company (COMODULE), 
foreign investment activities (Graphenea) and, 
finally, international licensing agreements (until 2016, 
KristallTurm had a licensing arrangement with a Canadian 
partner for manufacturing components and assembling 
them in its USA and Canadian target markets). 

2.2.3. 

 Importance of internationalisation 
activities 

The literature emphasises that born globals are more 
proactive about internationalisation than other 

businesses, and likely to exhibit better performance in 
terms of export speed, intensity and scope (Madsen and 
Servais, 1997; Kuivalainen et al, 2007; Crick, 2009). They 
tend to generate most of their sales through international 
activities and to operate in multiple markets from 
inception (Leonidou and Samiee, 2012). 

All of the companies under study agree that 
internationalisation plays a key role in their business.

The contribution of exports to overall turnover range 
from 20% in the case of Blue Ocean Robotics (a figure 
that is expected to increase sharply in the future) to 85% 
for KristallTurm and nearly 98% for Graphenea, with 
intermediate cases such as Frog Bikes, with 40%.

Table 4: Main international activities of the analysed born globals

Born globals

Type of internationalisation activities

International joint ventures

Blue Ocean Robotics

International R&D and technical cooperation, usually in the framework of EU-funded R&D projects 

International commercial cooperation (with a network of international sales partners, as a reseller 
of its partners’ products to international customers and users) 

Exporting activities

International subcontracting (components and hardware)

COMODULE

International commercial cooperation with strategic partners

International cooperation and partnerships (R&D activities, joint product development)

Frog Bikes

International investors

Exporting activities

International subcontracting (components and materials)

International technical cooperation with suppliers and foreign manufacturers

International commercial cooperation with international retailers

Exporting activities

International subcontracting (components, materials and specialised equipment)

Graphenea

International R&D and technical cooperation, often through EU programmes

Khar & Partners

International commercial cooperation with a network of international distributors

Foreign investment activities, via the opening of a branch abroad

Exporting activities

International subcontracting (components)

International cooperation (R&D activities with international subcontractors)

International commercial cooperation with a network of international distributors

KristallTurm 

International licensing activities

Exporting activities

International commercial cooperation with a network of international sale agents and distributors

Exporting activities

International subcontracting (hardware)

International R&D and technical cooperation

International commercial cooperation with international distributor

Recornect

Source: Authors’ own elaboration

14

Born globals and their value chainsBorn globals in global value chains

Box 6:  Importance of internationalisation activities amongst the born globals  

under study 

Internationalisation is one of the core elements of Blue Ocean Robotics’ business model, as the company operates 
around the world to scale up successfully commercialised robots and to pursue product development opportunities 
based on local partnerships and local strongholds in technology and markets. The company operates directly through 
local joint ventures and local sales partners. The company is particularly focused on developing a more efficient 
internationalisation strategy, the so-called ‘Joint Venture strategy 2.0’, which includes a greater focus on finding local 
partners with sufficient capital to finance the difficult initial years.

Internationalisation activities are an integral part of COMODULE’s ability to gain access to FDI, to produce hardware 
cost-effectively and quickly, to reach its customers located around the world and to implement effective sales projects. 
COMODULE is constantly developing its strategic alliances, partnerships and cooperation networks at the international 
level. 

For KristallTurm, engagement in international activities inspires innovation in the company in that the requirements, 
requests, preferences and suggestions received from a diverse range of clients and environments result in new ideas and 
technological developments for the company’s product portfolio. The company also reports that its strong international 
orientation has increased its reputation as an attractive employer in the rural region where it is located.

2.2.4. 

 Main international markets and reasons 
for the specific market selection

The characteristics of both home and foreign markets 
influence companies’ internationalisation choices 
and entry modes. The context – which includes the 
environmental, economic, political, sociocultural, 
geographical, institutional and technological 
characteristics of the home and foreign market and 
industries, along with related dynamism and hostility and 
existing demand – influences firms’ internationalisation 
choices and paths.

No homogenous evidence for why born globals choose the 
markets they do is reported in the literature (Eurofound, 
2012). In some cases, their choices are based on market 
potential, access to networks and managers’ previous 
international experience, rather than on geographic or 
cultural proximity, as is often observed in the case of 
traditional internationalisation (Lehmann and Schlange, 
2004; Pock and Hinterhuber, 2011). In other cases, born 
globals are observed to privilege, at least at the beginning, 
common language markets (Fan and Phan, 2007).

Some of the analysed born globals are particularly active 
in European countries. For instance, Frog Bikes imports 
materials and components from 25 different countries 
and exports to 35 countries worldwide, but an estimated 
95% of its total foreign sales are in the European market. 
Similarly, Blue Ocean Robotics is present in approximately 
40 countries through its joint ventures and local sales 
partners, but its main market in terms of turnover is still 
Denmark. COMODULE mainly serves Europe (more than 
90% of its revenue originates there), and Recornect’s main 
markets are Belgium, France, Germany, Luxembourg, 
Switzerland and the UK. All of these companies are 
interested in expanding their activities beyond the 
European continent in order to reach wider markets and 
develop their sales. Frog Bikes has identified opportunities 
in international markets through market research, its active 
involvement in trade shows and international exhibitions, 
its sponsoring of Team Sky (a well-known international 
racing team) and networks in the cycling industry.

For some of the other born global companies analysed, 
however, the European countries are not their main 
markets. Product characteristics appear to strongly 
determine the target market of these firms. Khar & 
Partners manufactures and sells a specific water filtration 
system designed for use in areas deprived of drinking 
water; it is sold in India, Africa and south-east Asia. 
Similarly, Graphenea, a producer of high-quality graphene, 
sells mainly in the countries with the highest R&D 
expenditure, as graphene is still at a research stage.

Linked to this, one of the main reasons for geographical 
market selection is the positive identification of demand 
and market opportunities. COMODULE’s target markets 
are inevitably defined by a mix of sales of electric bikes 
and established partnerships with manufacturers of 
high-quality electric bikes and scooters (primarily German 
ones). It is interesting that Chinese e-bike manufacturers 
are not regarded as a priority for this firm, as the e-bikes 
they produce are considered very simple and hence 
unsuitable as premium COMODULE products. KristallTurm 
believes that European markets for high-rope courses and 
climbing facilities are already quite saturated, resulting 
in limited growth prospects and a need to look for non-
European markets, especially in North America and Asia. 
Recornect selected Germany and the UK as its biggest 
export markets as they are front runners in the field of 
mental healthcare and show large market opportunities 
for their product.

There are also some other practical reasons determining 
geographical market selection, such as the existence of 
contacts and networks in these markets. For KristallTurm, 
the quality and effectiveness of local partners also 
determines the international focus of the company, as 
they facilitate access to clients, understand local business 
practice and help to generate international business 
opportunities. According to Blue Ocean Robotics, 
having competent CEOs in joint venture companies 
and identifying the right local partner is essential when 
selecting target markets. Khar & Partners mentioned the 
founders’ previous professional relations or the existence 
of local suppliers of certain components as key factors for 

15

making such a decision. This need for relevant networks 
and the information (in terms of market knowledge and 
existing opportunities) is also stressed in the literature as 
one of the key ways for born globals to face the liability 
of newness and smallness (also implying a lack of 
economies of scale) with which they are confronted when 
approaching a new competitive environment, especially 
as compared to larger, more established multinational 
enterprises (Kahiya, 2013).

2.3.  The global value chains of 

born globals 

2.3.1. 

Involvement of the born globals in 
global value chains 

All analysed born global enterprises actively participate 
in different GVCs, where they usually play a dual role. On 
the one hand, they act as clients for other international 
companies, whereby partners supply different products 
and services to the born global (production of prototypes, 
intermediary key components, equipment, commercial 
distribution agreements and quality checking services, 
amongst others). On the other hand, the born globals act 
either as suppliers of products or services, usually to other 

companies (B2B), or as international cooperation partners 
of other companies (joint R&D/product improvement 
activities and joint commercialisation efforts, amongst 
others). Table 5 provides an overview of the roles of the 
analysed born globals in global supply chains, while Annex 
1 describes the international partners interviewed for this 
project. Specifically, the analysed born global enterprises 
cooperate with selected GVC partners.

2.3.2. 

Initiating cooperation and identifying 
partners  

According to the available information, the born globals 
studied here and their value chain partners started 
collaborating at different stages. In some cases, this 
cooperation was initiated very shortly (less than two years) 
after the foundation of the born global; in other cases, it 
was initiated two or more years after the born global was 
set up. 

In some cases (Blue Ocean Robotics and its two value 
chain partners Suitable Technologies and Blue Ocean 
Robotics Sweden, Frog Bikes and its two value chain 
partners Shimano and Tektro), the cooperation was 
initiated by the born global based on the founders’ own 
knowledge and personal contacts. In other cases (Khar & 
Partners and Pipeco, Recornect and Telerex, COMODULE 

Table 5: Main activities of the analysed born globals in global value chains

Born global

Role in the global value chain

Blue Ocean 
Robotics

COMODULE

Frog Bikes

Graphenea

Blue Ocean Robotics acts as a supplier of new robotics solutions and services to different business customers and 
as a reseller of new advanced third-party robots to private and public sector customers, making use of its joint 
ventures and sales partners to reach countries around the world. In addition, Blue Ocean Robotics is a research 
partner in a number of international consortia working on different R&D projects. 

COMODULE subcontracts other companies to manufacture hardware production and production of prototypes, 
where these suppliers are located in China, Estonia, Finland and Taiwan. COMODULE’s main clients include 
manufacturers of light vehicles, particularly electric bikes and scooters located in Asia, Europe and the USA.

Frog Bikes sells children’s bikes to 35 countries worldwide. For this purpose, the company works with 
independent retailers in the different countries, in addition to having an online sales channel. Frog Bikes also 
deals with international suppliers from 25 different countries who manufacture some of the 150 components that 
typically form a bike.

Graphenea acts as a supplier of graphene to different international clients, including universities, technology 
centres and large companies’ research departments. Furthermore, Graphenea has a network of international 
suppliers that are part of the company’s supply chain (supply of raw materials, key specialised equipment or 
the provision of strict quality control mechanisms). The company is also very active in international research 
cooperation activities, mainly through support from EU programmes. Finally, Graphenea has a network of 
international distributors.

Khar & Partners

Khar & Partners collaborates with different partners within the framework of the SOWAT product, including a 
French-owned manufacturer based in Romania and responsible for the manufacturing of the product, several 
suppliers of intermediary components (such as water tanks and ultra-filtration systems) and distribution firms for 
several markets overseas.

KristallTurm 

Recornect

KristallTurm subcontracts major inputs of steel and wood/timber materials from German suppliers. Occasionally, 
an Italian company helps with on-site assembly. KristallTurm also participates in the value chain of leisure and 
tourism clients as a supplier of high-rope courses, either directly (sometimes with support from sales agents) or 
indirectly via resellers (leisure park developers). 

Recornect has a small network of global supply chain members, including one supplier of hardware 
(touchscreens) and sale partners engaged in the promotion and sale of Recornect’s products in international 
markets. 

Source: Authors’ own elaboration

16

Born globals and their value chainsBorn globals in global value chains

Box 7:  Initiation of the cooperation between born globals and global value  

chain partners

Blue Ocean Robotics and Suitable Technologies’ cooperation was initiated in 2013 by one of the CEOs who knew 
Suitable Technologies from his previous role where he had developed a large network within the global robotics 
industry. The two CEOs of Blue Ocean Robotics and Blue Ocean Robotics Sweden had known each other professionally 
for many years when the former asked the latter if he wanted to co-found and become the CEO of a new Blue Ocean 
Robotics in Sweden. Frog Bikes approached Shimano and Tektro because of their well-known brand and hi-tech 
involvement in manufacturing cycling components. COMODULE initiated its cooperation in February 2016, when it 
identified Materflow via Google search. In the case of Recornect and Telerex, one of the CEOs of Recornect did some 
market research into various potential companies across Europe and requested samples from various manufacturers, 
including the one manufactured by the UK company Zytronic and its legal representative in the Netherlands (Telerex). 

and Materflow), the born global approached the value 
chain partner as the result of a market research process. 

In other examples, the born global requested the 
collaboration of a third party in order to identify a 
suitable partner. This is the case of COMODULE and AVS 
Electronics (HK), for instance, whose initial contact was 
mediated by an external mentor of the Berlin business 
accelerator Startupbootcamp, in which COMODULE was 
involved. Fusser Enterprises and KristallTurm were 
introduced to each other by a German sports product 
manufacturer with which Fusser Enterprises was 
collaborating. Graphenea and Graphit Kropfmühl got in 
touch through a Spanish specialised distribution company 
which knew that Graphenea was looking for a reliable 
supplier of natural graphite. 

In other cases, the cooperation was initiated on an 
‘unintended’ basis, as the result of an unexpected event. 
This is the case of Recornect and Britplas, for instance, 
which crossed paths at a mental healthcare conference 
in Helsinki and realised they shared a mutual interest 
that could lead to collaboration. Similarly, the CEOs of 
Khar & Partners and ProEdge met at the Startup Istanbul 
competition in 2016 and developed a commercial 
relationship. Finally, and in a very limited number of 
cases, the value chain partner was the one to contact 
the born global to initiate cooperation. This is the case 
of HPS Middle East, for example, which approached 
KristallTurm as it needed a high-rope course provider for 
its ‘IMG Worlds of Adventure’ project, the world’s largest 
indoor theme park, situated in Dubai. Meanwhile, Jagwire 
approached Frog Bikes to propose a business relationship 
for supplying different company products (cables, brakes, 
etc.). 

Overall, the available information shows that once 
initial contact has been made, the agreement to start 
collaborating does not take long to be set up. For instance, 
it took less than half a year for Blue Ocean Robotics and 
Suitable Technologies to begin cooperating after initial 
contact was made.

2.3.3.  Reasons for initiating cooperation
The reasons for initiating a specific line of global 
cooperation relate to access to sourcing networks, key 
suppliers and complementary product and knowledge 
providers, amongst others. Various types of sourcing 
networks exist for born globals and they have different 

degrees of importance in terms of their roles and 
contribution to the overall business concept, depending 
on their replaceability and geographic location (Partanen 
and Servais, 2012). Often, the greater the complexity 
of the product or service, the greater the degree of 
cooperation between firms (OECD, 2008). Subcontractors, 
complementary product providers and raw material and 
standard component suppliers often can be replaced 
easily (Partanen and Servais, 2012). On the other hand, 
key suppliers can be key to both the born globals’ and the 
partners’ success in the market, since the collaboration 
gives both parties access to a greater number of 
customers. Finally, complementary product providers 
are also valuable, as they provide born globals’ resource 
pool with products which are outside the born globals’ 
competency domain (Partanen and Servais, 2012). 

In light of this, the selection of the ‘right’ partner is 
fundamental to partnership establishment (Cavusgil 
and Evirgen, 1997) and business development. Some 
of the key elements highlighted in the literature refer 
to complementary capabilities, unique competencies, 
industry attractiveness, capability to produce quality 
products, managerial skills, financial assets, special skills 
to learn from the partner, intangible assets, willingness 
to share experience, previous alliance experience, market 
knowledge and access, the cost of alternatives, the 
partner’s ability to acquire skills, and technical capabilities 
(Haskell et al, 2016). 

The analysed case studies show several reasons to initiate 
the cooperation. In some cases, price considerations 
and a lack of suitable cooperation partners at a national 
level play a very important role in the identification of 
partners. For instance, COMODULE began cooperating 
with Materflow because no Baltic companies could 
supply small batches of high-quality 3D printed parts at 
low prices and at short notice. In other cases, the main 
reason for initiating the cooperation relates to ensuring 
access to a reliable supplier of components, raw materials 
or specialised equipment that may increase the general 
quality, competitiveness and/or image of the products. 

Another reason relates to the companies’ desire to access 
new markets and business opportunities. This is the case 
of Blue Ocean Robotics and Suitable Technologies, for 
instance, whose cooperation was initiated to discuss 
opportunities for Blue Ocean Robotics to act as a sales 
partner representative for Suitable Technologies in 

17

Box 8: Born globals’ reasons for cooperating with global value chain partners

HPS Middle East initially approached KristallTurm to explore the possibility of integrating the latter’s high-rope course 
in a very large indoor theme park project developed by the former.

The interest of Graphenea to work with Graphit Kropfmühl derives from the desire of the Spanish born global to have 
access to a reliable supplier of raw materials. Recornect collaborates with Zytronic because of its expertise as a supplier 
of reliable and high-quality touchscreens to be incorporated into Recornect’s products (which incidentally resulted in 
the need to work with Telerex as a distributor of Zytronic’s products in the Netherlands). Finally, Frog Bikes is interested 
in collaborating with Shimano to incorporate high-quality components that may enhance the brand image and quality 
of Frog Bikes’ products.

Europe. Britplas saw a business opportunity in marketing 
some of Recornect’s products in the UK. 

services. An overview of the roles played by the born 
globals and their GVC partners can be seen in Table 6.

It is also worth stressing that the reasons for engaging 
in cooperation may differ from one partner to another. 
AVS Electronics (HK) identified the cooperation with 
COMODULE as an opportunity to diversify its package of 
products, whereas COMODULE saw it as an opportunity to 
expand its business to new target markets in Asia. While 
Graphenea’s interest in working with AIXTRON related 
to ensuring access to a reliable supplier of specialised 
equipment for the production of graphene, AIXTRON was 
primarily interested in future business opportunities. 
These derived from having access to knowledge of 
graphene production-related needs, a small but likely 
growing new market of interest for the company. 

2.3.4.  Roles of the cooperation partners
Notwithstanding the initial reasons for initiating 
cooperation, the analyses of the company case studies 
show that born globals and GVC partners play different 
roles within the identified GVCs. 

Some of the analysed born globals participate in the 
value chains of other international partners (‘output value 
chain’). For instance, Blue Ocean Robotics acts primarily 
as a promoter, distributor and post-sale service provider 
of new and advanced third-party robots to private and 
public sector customers around the world (for instance, 
the Beam product developed by Suitable Technologies). 
KristallTurm is a specialised supplier of high-rope 
courses to both leisure facilities operators (such as Fusser 
Enterprises) and resellers (such as HPS Middle East). 
Graphenea acts as a specialised graphene supplier to the 
American company GroWater.

With regard to the born globals’ own value chains 
(‘input value chains’), these companies are responsible 
for different activities, including design and product 
development, production and/or distribution 
and commercialisation of their product portfolio. 
Khar & Partners is responsible for the design and 
commercialisation of the SOWAT system, but not for 
manufacturing it (which is done by another Romanian 
company). Recornect is responsible for the design 
and production of its products, whereas COMODULE, 
Graphenea, KristallTurm and Frog Bikes are primarily in 
charge of the design, production and commercialisation 
of their respective products. KristallTurm also performs 
some additional activities, including on-site assembly, 
provision of specialised staff training and after-sales 

18

Specifically within input value chains, GVC partners play 
different roles.

First, they may act as specialised suppliers to the 
born globals, providing components, raw materials or 
even specialised manufacturing equipment. Suitable 
Technologies, for example, acts as the manufacturer 
and supplier of a special product (Beam, a telepresence 
solution that combines user-controlled mobility and 
telepresence or video conferencing) to Blue Ocean 
Robotics and its associated partners. In the Estonian case 
study, Materflow is responsible for producing various 
mechanically durable 3D printing parts to COMODULE, 
including several additional services such as polishing, 
colouring and dyeing and different types of surface 
treatments of the supplied parts. In the Romanian 
case, Pipeco is responsible for providing water tanks to 
Khar & Partners, based on agreed rates and technical 
specifications. In the Spanish Graphenea case study, 
AIXTRON acts as a supplier of equipment for producing 
CVD graphene and Graphit Kropfmühl is a supplier 
of natural graphite to Graphenea (which is still at the 
testing phase). In the Dutch case, Zytronic represents the 
main supplier of the touchscreens that are used as key 
components of the Recornect product. The three GVC 
members of Frog Bikes interviewed (Tektro, Shimano, 
Jagwire) are primarily involved in providing different bike 
components for the born global (brakes, gear shifters, 
cables and small parts required for these cables). 

Second, GVC partners may act as suppliers of specialised 
technological or innovation-related knowledge and 
services. This is the case of Graphit Kropfmühl, which 
advises Graphenea on the possible use of natural graphite 
as an alternative raw material. Zytronic has been actively 
involved with Recornect in researching and developing the 
different touchscreens used in Recornect’s products.

Third, GVC partners are responsible for the co-production 
and joint development of some specific products. This is 
the case of AVS Electronics (HK) and COMODULE, whereby 
the latter is responsible for software, connectivity and 
design, while AVS Electronics (HK) produces the physical 
display parts. Zytronic has been actively involved in the 
co-development and co-design of the final Recornect 
products, whereas Frog Bikes and Jagwire engage jointly 
in the design of some specific bike components that are 
integrated in the final bikes.

Born globals and their value chainsBorn globals in global value chains

Table 6: Brief overview of the main roles assumed by the born globals and associated global value chain partners 
under study

Case study

Design, product 
development

Supplier of components/
raw materials/specialised 
machinery

Production

Distribution and 
commercialisation

Other 

Case Study 1

Case Study 2

Case Study 3

COMODULE 

AVS Electronics 
(HK) 

Frog Bikes

Jagwire

Graphenea

GroWater

Materflow

Tektro

Shimano

Jagwire

AIXTRON

Graphit Kropfmühl

Graphenea

Case Study 4

Khar & Partners

Pipeco

COMODULE 

AVS Electronics 
(HK) 

COMODULE 

AVS Electronics (HK) 

AVS Electronics 
(HK)

Frog Bikes

Frog Bikes

Graphenea

GroWater

Graphenea

Graphit 
Kropfmühl

Case study 5

KristallTurm

KristallTurm

Case Study 6

Recornect

Zytronic

Zytronic

Recornect

Case Study 7

Suitable 
Technologies

Suitable Technologies

Source: Authors’ own elaboration

Fourth, GVC partners act as distributors or traders 
of different products manufactured or designed by 
the born global. Thus, Blue Ocean Robotics Sweden 
is a joint venture of the Blue Ocean Robotics Group 
and responsible, amongst other things, for finding 
customers and selling the parent company’s robot 
solutions and services to local customers in Sweden. 
In addition to other roles, AVS Electronics (HK) acts 
as COMODULE’s official contact in the Asian market, 
including negotiations and network development with 
Asian companies. Fusser Enterprises, in addition to 
its role as a client of KristallTurm, also acts as its sale 
agent in the USA. Khar & Partners has signed a formal 
agreement with ProEdge to promote SOWAT in India, as 
well as to represent the company there. Telerex’s main 
role in Recornect’s GVC is to distribute the products 
manufactured by Zytronic and it therefore plays a role 
in passing orders for Recornect’s products to Zytronic. 
In the same way, Britplas acts as a promotion and 
sales channel for Recornect by promoting Recornect’s 
products together with its own products, primarily on 
the UK market. For instance, Britplas houses a demo 
of Recornect’s products to showcase the products for 
potential clients and interested parties.

Finally, GVC partners play other key roles for the born 
globals. AVS Electronics (HK), for example, has invested 
in COMODULE. HPS Middle East is not only a reseller 
of KristallTurm but also uses its own staff to carry out 

Khar & Partners

ProEdge

HPS Middle East

KristallTurm

Fusser Enterprises

HPS Middle East

Zytronic

Telerex

Britplas

Blue Ocean Robotics

Blue Ocean Robotics 
Sweden

assembly at the construction site, as well as training for 
operators and regular maintenance activities.

2.3.5.  Governance 
According to the literature, the collaboration between 
born globals and their value chain partners is conducted 
through connections – local and foreign relationships and 
networks – that take on specific forms, mainly consisting 
of formal relationships, personal (non-business) and 
informal relationships, and networks of employees and 
intermediary relationships, amongst others (Coviello and 
Munro, 1995, 1997; Oviatt and McDougall, 2005; Julkunen 
et al, 2015). 

Amongst the case studies selected here, there are limited 
examples of relationships based on formal cooperation 
agreements between born globals and GVC partners, but 
one example of this is HPS Middle East and KristallTurm, 
where orders are placed on the basis of a long-term 
framework of standard prices (with a specific sales 
contract concluded for each order). 

In other cases, the cooperation between the born global 
and its GVC partner is primarily based on a commercial 
client–supplier relationship that encompasses other 
cooperative elements in different fields (manufacturing, 
commercialisation and sales, etc.). Thus, COMODULE 
and AVS Electronics (HK) have reached a non-formalised 
geographical policy agreement for invoicing (for instance,  

19

Box 9:  Formal cooperation agreements between Blue Ocean Robotics and global 

value chain partners

The cooperation between Blue Ocean Robotics and Suitable Technologies is formalised through an ad hoc contract 
which describes the guidelines of the cooperation in detail, including that Blue Ocean Robotics represents Suitable 
Technologies on European and other markets. The cooperation between Blue Ocean Robotics and its joint venture 
Blue Ocean Robotics Sweden is formal and power-unbalanced, in the sense that Blue Ocean Robotics Sweden is 
obliged to comply with an ownership agreement and statutes drafted by Blue Ocean Robotics. Amongst other elements, 
these statutes establish the obligation to follow Blue Ocean Robotics’ overall mission and strategy and the agreement 
that Blue Ocean Robotics Sweden may not replace Blue Ocean Robotics as a partner. Furthermore, the contractual 
agreement foresees that, if necessary, Blue Ocean Robotics has the right to close the joint venture company if the 
CEO of the joint venture does not follow the overall mission and strategy of the parent company. Notwithstanding this, 
Blue Ocean Robotics Sweden has a great deal of freedom to act on the market opportunities it detects, including the 
development of a new robot with great commercial potential.

if the customer is located in Asia, most of the invoicing 
goes through AVS Electronics). Moreover, this 
relationship has been reinforced with AVS Electronics 
(HK)’s investment of €100,000 in COMODULE. Along the 
same lines, the commercial relationship between Khar 
& Partners and Pipeco is governed by contracts specific 
to each purchasing order, although this relationship has 
expanded beyond a mere client–supplier one to include 
advice on how to best create synergies between Pipeco’s 
offer and the SOWAT system. In addition to the supply of 
touchscreens by Zytronic/Telerex for Recornect which 
are based on formal purchasing contracts, Zytronic/
Telerex and Recornect are informally collaborating on 
the redesign of the screens to make them cheaper and 
to add functions. The relationship between Frog Bikes 
and its two GVC partners Jagwire and Tektro is intended 
to be long-term, entailing, for example, collaborative 
efforts to enhance the design of Jagwire’s components 
or special financing agreements with Tektro (Frog Bikes 
pays a deposit of only 20% when placing any order with 
Tektro, and the balance is paid when the orders are 
shipped). 

In all these cases, cooperation is based on a relatively 
equal and fair relationship between the two parties, 
probably explained by the relatively similar size of 
the companies involved, the irreplaceability of the 
partnership or the parties’ perception of the results as 
balanced and positive. The literature on cases involving 
high technological content and experience reports a 
similar scenario, where cooperation between the born 
globals and other multinational enterprises often requires 
collaborative relationships allowing for the rapid transfer 
and generation of new knowledge, process development, 
creation of a shared research competence and technology 
transfer. This can enhance competitiveness and speed and 
create co-dependency between the partners while yielding 
mutual benefits. This collaboration is often determined 
by both parties’ willingness to engage in a long-term 
relationship (Coviello and Munro, 1995).

In other cases, the cooperation between the born 
global company and its GVC partner is limited to a 
purely commercial client–supplier relationship, with no 
other joint activities, and is regulated by conventional 
purchasing agreements. 

20

In all the cases studied here, the larger, more influential 
partner dominates the interfirm relationship. A born global 
may establish cooperation with a large company to help 
bring a new product quickly to market where a high level 
of specialisation is required. While this may strengthen 
the born global’s position at first, the large company may 
become more demanding of the born global over time 
(for instance in terms of the diversification of tasks to be 
performed). Other situations that can prove challenging 
for born globals arise when large institutional buyers 
purchase specialised products or services directly from 
born globals, for instance requesting bulk discounts that 
the born global cannot always provide (Eurofound, 2013). 
Additionally, in some instances, more established partners 
may act opportunistically, for example creating predatory 
alliances with young high-technology start-ups, aiming 
at absorbing their technological know-how (Oviatt and 
McDougall, 1994).

In the particular case of COMODULE and Materflow, 
COMODULE dominates the relationship as it is Materflow’s 
principal client. In the case of Frog Bikes and Shimano, the 
relationship is dominated by the latter because of its size 
and status in the industry combined with the fact that Frog 
Bikes’ orders account for a very small share of Shimano’s 
total turnover.

Finally, there are also some examples of cooperation 
between born globals and GVC partners that can be 
labelled as ‘informal’ and not based on any specific 
commercial relationship. A good example of this is the 
unwritten regular cooperation between Graphenea and 
AIXTRON within the framework of the Graphene Flagship 
Initiative (AIXTRON is leading the so-called ‘Production’ 
work package, in collaboration with Graphenea and other 
partners, focusing on technology development to enable 
cost-effective and large-scale production in the future 
with a strong industry focus). Graphit Kropfmühl sends 
free small natural graphite samples to Graphenea for 
initial R&D testing purposes, although if the cooperation 
between both companies became more regular (for 
instance, if Graphit Kropfmühl began supplying larger 
natural graphite quantities), an agreement might be 
signed to regulate it. Finally, the cooperation between 
Britplas and Recornect is highly informal, although it may 
become more formalised if Recornect continues to grow 

Born globals and their value chainsBorn globals in global value chains

and expands in the future. In all these cases, the power 
relationships between both parties seem to be balanced. 

2.3.6.  The role of ICTs, logistics services and 

trust 

ICT-based communications (emails, web pages, phone and 
video call tools) play a very important role in sustaining 
international cooperation as continuous communication 
between the two partners is important. In some cases, 
ICTs are particularly relevant in the initial stages of the 
cooperation or when partners are jointly developing new 
business ideas or products.

Particularly relevant is the use of web pages and social 
media amongst the analysed born globals. For instance, 
KristallTurm’s website is geared towards an international 
market and available in English, German and Spanish (in 
addition, product brochures are also offered in French, 
Italian and Chinese). Another example is Graphenea, 
which, since its foundation, has developed a website 
(only in English) to interact with clients and potential 
collaborators that includes a blog with key news items 
on graphene-related issues. For Frog Bikes, social media 
is important to maintain its network in the bike industry. 
Both companies also sell their products online through 
their websites to facilitate both national and (particularly) 
international sales.

This is supported by the literature, which stresses that 
born globals use the Internet to communicate with value 
chain partners, perform marketing communication 
activities and manage customer relationships and sales 
transactions (Loane and Bell, 2006). Born globals seem 
to rely on the Internet more intensively than other types 
of company. If this reliance is to be fruitful, it requires 
cautious alignment with the company’s strategy (Pezderka 
et al, 2012).

However, face-to-face meetings and contact between 
individuals still play a key role in initiating and sustaining 
business relationships between value chain partners. 

According to Khar & Partners’ CEO, trust is a decisive 
factor for sustaining successful cooperation amongst 
companies, since partnerships and cooperation 
agreements are often based on unwritten gentlemen’s 
agreements that require time and frequent face-to-face 
interaction to consolidate. Similarly, the Graphenea 
interviewee stresses that a strong trust and confidence 
base has been developed between Graphenea and 
AIXTRON in recent years, where the role of individuals is 
crucially important. Indeed, the Graphenea interviewee 
suggests that if certain key people were to leave, the 
relationship between Graphenea and AIXTRON would 
be negatively affected (at least in the short term) due to 
the existing links of trust and confidence between these 
individuals.

In some cases, elements such as previous knowledge 
of each other, fluency in common languages or 
shared national backgrounds facilitate this trust and 
cooperation amongst people. In the case of Blue 
Ocean Robotics and Blue Ocean Robotics Sweden, the 
CEOs had known each other professionally for many 
years when the first one asked the second one if he 
wanted to co-found and become the CEO of a new Blue 
Ocean Robotics in Sweden while he was still working 
for another company. The fact that the head of the 
purchasing team within Frog Bikes speaks fluent Chinese 
is a significant advantage in developing and enhancing 
the relationship between Frog Bikes and Tektro, where 
weekly contacts via different means (Skype, phone 
and emails) sustain this cooperation. In the case of 
KristallTurm and Fusser Enterprises, a common 
language and business styles due to the founders’ 

Box 10: Role of ICTs in international cooperation

Khar & Partners and Pipeco established their first contact via an online purchasing enquiry sent by the born global 
to its supplier. In 2017, AIXTRON was supplying new production equipment for Graphenea for its new pilot plan. For 
this purpose, both parties were developing a complex process of communication, including email exchanges and 
extensive phone and Skype calls in order to develop and fine-tune the new prototype to the demands of Graphenea. 
For Recornect and Telerex/Zytronic, the use of email greatly facilitated the exchange of ideas about the prototype 
design and development, enabling drawings and sketches with precise component sizes, lengths and materials to be 
exchanged quickly, examined and sent back. 

Box 11: Role of face-to-face, personal contacts in sustaining cooperation

The strategic alliance between COMODULE and AVS Electronics (HK) is reinforced by regular face-to-face meetings 
(held every two to three months) between company CEOs and other employees, either in Europe (mostly Estonia or 
Germany) or Asia to discuss different topics. KristallTurm organises an event at its headquarters every two years where 
all sales agents and resellers, as well as interested operators and potential clients, gather to receive information and 
exchange new developments and experiences. The initial physical encounter between Khar & Partners and Pipeco 
allowed the two firms to gain more trust in one another, and to facilitate future commercial transactions. The sales team 
from Jagwire Europe visits Frog Bikes twice a year and the partners often meet at bicycle shows in order to sustain 
cooperation.

21

shared German origins have done much to facilitate the 
collaboration between the companies.

cooperation with Frog Bikes, resulting in a 5% increase in 
sales and a 3% increase in production volumes. 

Logistics services also play a significant role in some 
lines of cooperation. Difficulties with finding suitable 
distribution channels, reliable distributors and adequate 
representation in foreign markets – together with high 
delivery costs – represent major barriers to young 
and small companies’ internationalisation (European 
Commission, 2015a). The role of the partners has proved 
relevant in this respect for some of the analysed born 
globals. For instance, Suitable Technologies ships 
containers to Blue Ocean Robotics for supplying its 
products. Transportation and logistics are particularly 
relevant for KristallTurm when shipping construction 
components and tools abroad in standard containers. 
Graphenea makes extensive use of courier services for 
sending the clients’ orders to any part of the world, which 
requires careful packaging of the products.

2.3.7.  Results of cooperation 
The analysed case studies show the significant positive 
results derived from the existing business relationships 
for both the born globals and their GVC partners. The 
perceived positive results for all parties involved (win-win 
situations) sustain these lines of cooperation, and can 
relate to economic performance, production, knowledge 
or learning and, finally, other areas such as reputation and 
employment effects. 

Positive economic results are the first to be identified. 
For instance, Blue Ocean Robotics has increased sales 
of Suitable Technologies’ main product (Beam), which 
is gaining popularity outside the USA. Similarly, Suitable 
Technologies is granted a local presence through a 
trusted partner in Asia, Europe and the Pacific region, 
resulting in revenues and (new) relationships with 
customers for both sides. The same can be said of its 
cooperation with Blue Ocean Robotics Sweden, which 
has resulted in the acquisition of an increasing number 
of customers in that country – a valuable result for both 
parties. 

The cooperation between COMODULE and AVS 
Technologies has improved COMODULE’s position in 
Asian markets, reducing entry obstacles. KristallTurm’s 
development and commercial success depends very much 
on its foreign sales agents and resellers. For instance, 
HPS Middle East’s excellent global network in the leisure 
industry has helped KristallTurm to increase its client 
base, and positive expectations are looking to Fusser 
Enterprises’ local contacts in Florida (Florida is a global 
hotspot for the adventure park industry) to expand future 
business possibilities for KristallTurm.

The cooperation between Khar & Partners and ProEdge 
has facilitated the expansion of the born global’s product 
in India and Southern Asia even though this was not 
initially envisaged by the Romanian company. Cooperation 
with Britplas has allowed Recornect to showcase its 
product in the UK, a key European market in terms of 
psychiatric and mental healthcare products. 

Finally, Jagwire has opened up a new market for bike 
components for the children’s market as a result of its 

22

In other cases, knowledge- or learning-related results 
are helping important product improvements to be 
made. The cooperation with Materflow has allowed 
COMODULE to improve the quality of its prototypes, 
which also has a positive impact on COMODULE’s sales. 
In turn, the feedback provided by COMODULE about the 
items produced has allowed Materflow to improve its 
products, facilitating future business opportunities in 
national and international markets. The capitalisation on 
AVS Electronics (HK)’s knowledge of producing displays 
has allowed COMODULE to jointly develop a new type of 
display for electronic bikes and scooters and thereby to 
find new customers who have already placed orders. In 
turn, the partnership with COMODULE has enabled AVS 
Electronics (HK) to acquire new knowledge about Internet 
of Things technologies in the bicycle industry. 

For Graphenea, the main result of the cooperation 
with AIXTRON relates to the development of unique 
machines which are fine-tuned to the specific needs 
and requirements of Graphenea. Graphenea has also 
accumulated a significant body of knowledge about 
the specificities and characteristics of well-running 
manufacturing equipment as a result of its cooperation 
with AIXTRON, and this may be used by Graphenea for 
the potential selection of alternative equipment suppliers 
in the future. In parallel, from its cooperation with 
Graphenea, AIXTRON has developed very specific and 
specialised knowledge on graphene production-related 
needs, a small but likely growing new market segment 
that is interesting for the company. The cooperation 
with GroWater is resulting in an interesting source of 
knowledge for Graphenea on the graphene-related needs 
of graphene-based membrane platform technology 
developers. For Recornect, one of the main results of 
international cooperation with Zytronic/Telerex has been 
the development of a unique product (touchscreens) 
with some very specific and unique attributes in terms 
of durability and sensitivity that, incidentally, has made 
it possible for Recornect to become an innovative, 
export-driven enterprise. Zytronic/Telerex has developed 
significant expertise in the field of touchscreens as a result 
of its collaboration with Recornect. 

Frog Bikes and Tektro have shared their knowledge and 
technology for the design and development of several 
special children’s bike-related products for Frog Bikes, 
resulting in an increase in sales for both companies. 

Finally, in some cases, other positive (and sometimes 
unexpected) results can be identified, particularly in 
terms of reputation- and employment-related effects. 
For instance, the possibility for HPS Middle East to have 
access to KristallTurm’s high-rope courses has enhanced 
the reputation of its leisure parks, especially in the Middle 
East region, where trustworthy products are greatly 
appreciated. Britplas has gained a strong reputation from 
its collaboration with Recornect as a specialist in the 
field of communication windows and walls in the mental 
healthcare sector, resulting in increased sales. Similarly, 
the cooperation between Frog Bikes and Shimano has 
helped to raise Frog Bikes’ international profile, indirectly 

Born globals and their value chainsresulting in an increase in the born global’s sales on 
international markets. 

Related to employment effect, the cooperation between 
COMODULE and AVS Electronics (HK) has enabled AVS 
Electronics (HK) to employ more people to work on joint 
projects (for example, new employees will be hired in 
design in Taiwan and in a factory in Shenzhen in China) 
and to extend the factory’s production line to enable it 
to produce products for COMODULE. Other unforeseen 
results can be identified. For instance, HPS Middle East 
has benefited from KristallTurm’s network, through which 
it was able to find a new international supplier of self-
rescue systems. Finally, Graphit Kropfmühl is using some 
state-of-the-art equipment and scientific personnel from 
a specialised Basque technology centre, and Graphenea 
facilitated this cooperation. In some cases, these results 
are not yet visible, but they are expected to materialise in 
the (near) future. For instance, Materflow has identified 
significant future business opportunities in the Baltic 
countries and Poland as a result of its cooperation with 
COMODULE, due to the small number of competitors 
there. Graphit Kropfmühl could become a key and highly 
specialised supplier for Graphenea in the future, provided 
that the current testing phase of different samples of 
natural graphite produces positive results for Graphenea.

2.3.8.  Evolution of cooperation over time
Generally, the cooperation between the born globals and 
their GVC partners has been reinforced with the passing of 
time, benefiting both sides. 

The cooperation between Khar & Partners and its GVC 
partners regarding the SOWAT system has gradually 
increased over time, partially as the result of increased 
sales, a broader international expansion and several 
improvements in product technology. Cooperation 
between KristallTurm and HPS Middle East has increased 
since their initial business relationship in 2013, in the 
sense that HPS Middle East has developed four additional 
leisure park projects in the region using KristallTurm’s 
rope courses. 

The cooperation between Graphenea and AIXTRON has 
developed smoothly over time, with regular briefings on 
the functioning of the equipment, which have also enabled 
the exchange of ideas and suggestions for improvement. 
This has been reinforced with the new graphene-
manufacturing equipment, and reflected in regular weekly 
communications and information exchanges as well as 
regular face-to-face meetings. Similarly, the cooperation 
between Graphenea and Graphit Kropfmühl has evolved 
and developed quite well, although it has only focused 

Born globals in global value chains

on scientific cooperation so far. In order to reinforce this 
cooperation, Graphit Kropfmühl has visited Graphenea 
facilities several times since 2015, with the aim of 
deepening the existing relationship between both parties. 

The cooperation between Zytronic/Telerex and Recornect 
was very intense in the initial stages while discussing 
the design and manufacturing characteristics of the 
touchscreens, as well as more recently, when Recornect 
was trying to redesign the products to make them cheaper 
and to add new functions. The cooperation between Frog 
Bikes and Tektro has also developed successfully since 
its establishment, evolving from a pure supplier–buyer 
relationship to more of a partnership approach, including 
agreements to co-design and manufacture tailor-made 
components for Frog Bikes’ products. 

In some cases, the presence of a specific element 
reinforces this cooperation. For instance, the cooperation 
between Graphenea and GroWater has been reinforced 
with the opening of a Graphenea office nearby in the area 
where GroWater is located (Boston, USA) that facilitates 
exchange and interaction between both companies. 

In contrast, there is one example where cooperation 
has not been reinforced with the passing of time. The 
relationship between Frog Bikes and Shimano, although 
positive, has not been strengthened despite Frog Bikes’ 
interest in this. The unbalanced power relationship 
between the enterprises may be one reason for this.

Looking to the future, cooperation between born globals 
and GVC partners is likely to be reinforced in a number 
of cases. For instance, if sales continue to increase, Blue 
Ocean Robotics plans to set up a spin-off company with 
the purpose of focusing exclusively on scaling up sales 
of Beam in Europe, Asia and the Pacific Region, which 
would benefit both Blue Ocean Robotics and Suitable 
Technologies. KristallTurm and Fusser Enterprises are 
particularly interested in reinforcing their collaboration in 
the coming years in order to further develop the high-
growth USA market. It is expected that the cooperation 
between Graphenea and Graphit Kropfmühl may increase 
in the future if Graphenea decides to rely much more on 
natural graphite as a raw material instead of synthetic 
graphite. Frog Bikes and Jagwire have several plans to 
establish a long-term relationship. 

In some other cases, future cooperation is less certain. 
For instance, the cooperation between Blue Ocean 
Robotics and Blue Ocean Robotics Sweden has developed 
positively since it began in 2015, although it cannot be 
considered stable until Blue Ocean Robotics Sweden 
achieves positive cash flow. 

Box 12: Evolution of cooperation between COMODULE and AVS Electronics (HK)

The partnership between COMODULE and AVS Electronics (HK) started slowly but then became relatively successful in 
terms of finding different cooperation possibilities. It proved mutually profitable, not only in the Asian market (which 
was facilitated by AVS Electronics) but also through enhancing the co-development of products for all COMODULE’s 
current and potential markets. A significant change in the partnership was a small but strategic investment by AVS 
Electronics (HK) in COMODULE in the summer of 2016 that changed the role of AVS Electronics (HK) from a partner to an 
investor, and this facilitates their long-term strategic cooperation.

23

2.4.  Main obstacles to 

international cooperation 
and their solutions 

2.4.1.  External barriers and solutions adopted 
A number of barriers that are external to the company 
make the engagement of the analysed companies (the 
born global enterprises and their associated value chain 
partners) in international cooperation difficult. These 
specific challenges are beyond the company’s control, and 
can lead to a considerable degree of uncertainty that is 
associated with potential risks. 

According to the literature, the characteristics of and 
differences between the legislation and regulations on 
the home and host markets, as well as disproportionate 
regulatory burdens, stringent regulatory requirements 
and large amounts of bureaucracy (such as compliance-
related documentation or permits and registration 
efforts) and the cost of the legal advice needed to face 
them (Eurochambres, 2015) can act as entry barriers for 
born globals (Kahiya, 2013; Nesta et al, 2015; European 
Commission, 2015a, 2015c).

This is confirmed in the case studies. For instance, Blue 
Ocean Robotics found it very easy to set up a joint venture 
company in Hong Kong but very resource-consuming and 
slow in two EU Member States (Germany and Spain). In 
Germany, one of the founders and two employees had to 
travel to Munich for a short meeting with a notary to be 
able to set up a joint venture company as, under German 
law, a physical presence is required to set up a company. 
In Spain, anyone living and working outside Spain must be 
registered as an expatriate Spaniard and have a personal 
identification number to establish a company. AVS 
Electronics (HK), one of COMODULE’s GVC partners, feels 
that there are too many regulations in Europe, which can 
be confusing, as it is sometimes difficult to know whether 
a specific requirement is mandatory or recommended, or 
whether an EU regulation has been adopted in all of the 
EU Member States. Indeed, the literature highlights that 
the fragmentation of the Single Market in national markets 

(with different national regulations) involves additional 
efforts for born globals to market their products or services 
in Europe and beyond and that regulatory efficiency has 
not yet been completely achieved in the EU (European 
Commission, 2015a).

Furthermore, private contract laws differ across countries 
(this is particularly relevant for the USA with respect 
to liability regulations), resulting in an added burden 
for KristallTurm when adapting contracts to national 
contexts.

In several non-EU countries, firms encountered difficulties 
associated with customs-related issues, including 
additional customs checks, delays in supply and extra 
duties or difficulties related to sending personnel abroad. 
For example, KristallTurm requires specific visas or 
evidence of adequate wage payments and insurance for 
assembly teams posted abroad, as well as information 
on local work safety requirements that assembly workers 
have to respect. Frog Bikes attracts massive import duties 
to access the Russian market in particular. 

The above is consistent with existing studies observing 
that European countries’ trade is affected by border 
measures applied by other countries – such as tariff 
increases, quantitative restrictions, import licensing and 
outright trade bans (European Commission, 2016a). This 
is worsened by so-called ‘behind-the-border measures’, 
intended as countries’ internal measures and protectionist 
trends affecting foreign competition, such as restrictions 
on public procurement and discriminatory taxes and 
provisions that tend to favour local businesses (European 
Commission, 2016a).

National certification and product requirements in the 
target countries, including within the EU, are an important 
issue for the born globals interviewed here. This problem, 
which particularly affects those companies whose 
products have specific features linked to safety standards, 
quality criteria or significant technology requirements, 
implies important costs and time requirements for the 
companies. For example, KristallTurm has to respect 
the existing technical standards and regulations (for 
instance, technical standards for stairs, the height of 

Box 13: External support to overcome difficulties with regulations

Blue Ocean Robotics makes use of three different Danish law firms in order to deal with national regulations and laws in 
different countries and to make sure that it complies with the principles required. 

Box 14:  Establishing premises in other countries to streamline administrative and 

customs procedures 

Graphenea has set up a branch in the USA to avoid administrative difficulties related to customs issues as well as 
to overcome the tendency amongst USA clients to buy local products. In addition to this, Graphenea has signed 
distribution agreements with a network of international distributors located in the main country destinations in order 
to facilitate and solve local administrative procedures. The Taiwanese Jagwire (one of Frog Bikes’ GVC partners) has 
opened a small European branch in Belgium to facilitate serving the EU market and avoid additional administrative 
procedures for its EU clients.

24

Born globals and their value chainsBorn globals in global value chains

handrails or minimum load weights) when constructing its 
ropes courses abroad so that operators can be granted a 
permit for their facilities. Dealing and complying with the 
manifold and ever-changing national technical standards 
and specifications is also extremely time-consuming for 
HPS Middle East (a client of KristallTurm), although the 
company also reports that this can offer a competitive 
advantage over others as long as the company is 
competent in this area. 

Khar & Partners identifies certifying products as its main 
obstacle, in the sense that the procedures necessary to 
participate in product certification schemes can prove 
difficult and costly for small firms to comply with (for 
instance, it is estimated that obtaining CE certification 
costs close to €100,000). However, the firm also considers 
that the advantages deriving from certification outweigh 
the costs and long waiting times involved, particularly 
in terms of enhancing the product’s credibility and 
facilitating exports. Pipeco (a member of Khar & Partners’ 
value chain) stresses that it took it one year and a large 
amount of money to obtain French ACS certification. 
Recornect had to conduct a specific test for the UK 
to show that its product was safe in order to obtain a 
particular certification. In the case of Frog Bikes, the fact 
that the USA ISO standard is different from the EU one 
requires much testing (it costs USD 20,000 – equivalent to 
€17,401 – to test a bike), which increases the total cost of 
production. Similarly, Australia and New Zealand require 
a slightly different standard, which means that Frog Bikes 
had to conduct many tests to ensure its products matched 
the technical requirements in those countries.

In line with the above, existing studies identify as key 
barriers non-tariff measures such as foreign technical 
standards, licensing procedures and certifications, 
especially for smaller companies, because of the fixed 
compliance costs which are not proportional to the 
volumes traded and the related difficulty for smaller 
companies to spread these costs over large export values 
(Cernat et al, 2014). 

Technical barriers can also hamper internationalisation 
activities. For COMODULE, the main one is differences 
between the wireless telephone technologies (2G, 3G or 
4G) applied in different countries, as their product can be 
connected only to a 2G network. 

Some countries (for instance, China) are also perceived as 
particularly ‘dangerous’ for high-tech companies. This is 
the case of COMODULE, which is not expanding to China 
as it is afraid of possible unfair competition (for instance, 
unlicensed copying of electronic products and selling 
at much lower prices) and possible obstacles to protect 
intellectual rights in the Chinese legal environment. 
Jagwire (a GVC partner of Frog Bikes) also stresses the 
tough competition from countries where manufacturing 
is cheap, which could take away existing and potential 
clients. 

Some countries have different payment practices that 
involve important financial difficulties for companies, 
especially the smallest ones. A good example of this 
is given by Recornect and its experience with the UK 
National Health Service (NHS), a key client for the 
company. The NHS usually has the policy of paying 

Box 15: Solutions for meeting national certification and product requirements

In order to avoid any risks related to national certification procedures, KristallTurm stipulates in its contracts that the 
foreign client is responsible for making available all relevant technical standards (and translations if needed) before 
component planning and production begins. Frog Bikes tries to manufacture products which meet the most common 
standards, and then adapts them to different markets. This requires a high level of collaboration and increases the 
burden on the company in terms of time and cost. Similarly, Tektro (one of Frog Bikes’ GVC partners) bases its product 
design on European and US standards, as these cover their main international export markets. 

Box 16:  Solution adopted by COMODULE to cope with different national technical 

conditions

COMODULE has adapted its product to the different technical conditions of the target countries. Thus, the born global is 
working on an updated version of its hardware that should be able to connect to a 3G network. 

Box 17: Solutions for overcoming tough competition from low-cost manufacturers

COMODULE suggests that the Chinese market requires a strong local partner, as well as clear and specific business goals, 
before entering it. Jagwire (a GVC partner of Frog Bikes) focuses on improving the quality of its products while keeping 
prices stable as well as offering value-added or ‘extra’ services to customers (for instance, keeping sufficient stock to be 
able to respond to unexpected demand from clients). Jagwire also plans to expand its warehouse in Belgium to respond 
to client demand more successfully.

25

after delivery, which was a real challenge for Recornect, 
because as a start-up enterprise it had very little 
financial leeway to begin the production process and 
pre-pay its suppliers. For Fusser Enterprises (a client of 
KristallTurm), the pre-financing of goods to be imported 
constitutes a significant challenge, especially for US-based 
organisations (which are usually very reluctant to make 
advance payments to other countries).

Concerning the features of the domestic market or the 
country of origin, two main barriers can be identified: 
difficulties in accessing finance with good conditions 
and the existence of a poor national image and national 
support structure in the country of origin. Having 
experienced both in Estonia, COMODULE moved its 
headquarters from Tallinn to Berlin in 2015.

Finally, the companies analysed also suggest the 
important negative effects of difficult national political 
situations, which often increase the degree of uncertainty 
when seeking to internationalise. For instance, both 
the UK born global Frog Bikes and the UK subsidiary 
of AIXTRON (a GVC partner of Graphenea) stress that 
Brexit (and particularly the uncertainty associated 

with it) is an emerging challenge for its international 
activities. Examples of areas of uncertainty include future 
participation in EU-funded R&D projects, the specific 
conditions under which products will be sold in the EU 
markets and existing fluctuations in exchange rates and 
the depreciation of sterling (resulting in higher input costs 
for UK companies). Similar risks associated with foreign 
exchange rate fluctuations are also suggested by Fusser 
Enterprises (client of KristallTurm) when working with 
Europe-based attractions suppliers. 

One of the most important external difficulties is that 
of finding clients and suitable teams with the abilities 
and knowledge required for collaboration. For instance, 
COMODULE complains that there is no pan-European 
association of electronic producers that would save 
time to find suppliers. Graphenea feels that for any new 
technology-based company, the opportunity to become 
known in the market and to develop a network of relevant 
clients or collaborators is complicated but crucial in the 
initial stages, particularly in the international domain.4 
Frog Bikes found it difficult to find a Polish team with 
strong English that could help it access local market 
knowledge. It was even more challenging for the company 

Box 18: Solutions adopted for accommodating different payment practices 

Recornect was able to solve the problem of late payment by negotiating with the NHS and staying firm, stressing the fact 
that an advance payment was important to get the production process going. Frog Bikes (like Tektro) uses insurance to 
cover the risks of late payment from clients.

Box 19: Solutions for overcoming Brexit-related challenges of internationalisation 

Frog Bikes has taken several decisions in order to minimise the problem of exchange rates. On the one hand, the born 
global hedges its foreign exchange in order to eliminate the risks associated with global transactions. On the other hand, 
it is diversifying its destination markets, particularly in those countries that use ‘strong currencies’, in order to minimise 
the risk from foreign exchange rate fluctuations. AIXTRON will elaborate a contingency plan in order to evaluate and 
minimise possible risks associated with Brexit once it has clearer information on the specific conditions under which the 
process will be agreed between the EU and the UK government.

Box 20: Solutions for improving access to international clients

Materflow (one of COMODULE’s GVC partners) is improving its website to reach and serve (potential) customers better. 
KristallTurm regularly attends relevant international fairs and exhibitions around the world in order to become visible 
and find (new) international clients. Another important acquisition method for the company is a global network of sales 
agents who actively explore and canvass potential clients in their regions, as well as extensive use of word-of-mouth in 
the industry as another key tool for finding new clients.

Khar & Partners has joined different national and international business networks and participated in international 
events and trade fairs to find potential clients and partners, and has used certifications to increase its product’s 
credibility. Graphenea set up a modern website only in English, including relevant information on the sector. This 
includes an online store that facilitates international sales (strongly supported by very agile courier services). 

Finally, most of the analysed born globals see prizes and awards as an excellent tool for gaining credibility and visibility 
in the eyes of third parties, particularly clients and external investors.

4 

Interestingly, the company is now a world reference in its sector and receives many proposals for scientific and business collaboration, not all of which are of 
interest to the company.

26

Born globals and their value chainsBorn globals in global value chains

to connect with potential Polish sales representatives in 
the biking industry.

Along the same line of reasoning, the analysed born 
globals underscore that it takes a long time to build 
trust amongst partners and establish long-standing 
relationships. For Blue Ocean Robotics, finding the right 
local partner to become a co-founder and CEO of a joint 
venture is an important challenge, as it requires the local 
partner to comply with a number of specific characteristics 
(knowledge, experience, network, financial resources). 
Khar & Partners suggests that it normally takes a very long 
time to formalise a commercial relationship, and it sees 
trust as a necessary pre-condition for fluent international 
cooperation. 

Finally, big geographical or time zone distances can pose a 
challenge for international cooperation. For instance, both 
Blue Ocean Robotics and Suitable Technologies (a value 
chain partner of Blue Ocean Robotics) suggest that finding 
times for phone or video call meetings during normal 
working hours when cooperating with partners in very 
different time zones is a major challenge. Transportation 
and logistics are particularly costly for KristallTurm when 
shipping construction components and tools abroad in 
standard containers. For Khar & Partners, one of the main 
challenges involved in engaging in internationalisation 
activities is the large geographical distance separating the 
various companies involved in the project, as well as the 
distances between it and its clients. 

2.4.2.  Company-internal barriers and 

solutions adopted 

Despite deriving positive effects in terms of flexibility, 
internationalisation challenges are systematically higher 
for smaller companies than for larger ones (Falk et al, 
2014). While the latter can typically exploit economies 
of scale to overcome barriers, smaller companies need 
to overcome the ‘liability of smallness’ (Oviatt and 
McDougall, 1995; Nummela, 2018). These stem mostly 
from limited financial resources, negotiation possibilities 
or human capital resources. For instance, Khar & Partners 

stresses that its limited financial resources affect its ability 
to engage in different activities such as expansion or 
product quality certifications, which can have an indirect 
effect on its international expansion. 

A small company like Frog Bikes has experienced 
significant difficulties negotiating an attractive payment 
agreement with one of its key suppliers (Shimano, a very 
large brand supplier in the sector). Nevertheless, and in 
other cases, Frog Bikes has been successful in negotiating 
good terms with other (large) suppliers. 

Concerning human capital limitations, COMODULE feels 
that it would be able to develop technology and products 
faster if it had more employees, which would also help it to 
set more ambitious goals, an aspect that at least indirectly 
affects its internationalisation process. Labour skill 
shortages and difficulties attracting a skilled workforce 
are likely to be higher for small than large firms, which 
can typically afford to offer more attractive employment 
conditions and career prospects (Falk et al, 2014). The 
current limited language capabilities of KristallTurm 
(the staff can work in English and German only) are a 
key factor constraining the company’s international 
business activities. In addition, KristallTurm points out 
that staff members are not always readily available to go 
on missions abroad for several weeks. For Frog Bikes, 
the team’s limited language skills, together with their 
limited familiarity with target markets, makes it more 
difficult to approach and develop successful international 
cooperation activities with foreign clients and establish a 
foothold abroad. Jagwire and Tektro, value chain partners 
of Frog Bikes, have experienced similar language-related 
problems in dealing with different markets. 

Born globals typically face the liability of outsidership 
from the markets and related networks, which can provide 
opportunities for learning, trust-building and commitment 
(Sullivan-Mort and Weerawardena, 2006; Freeman et al, 
2010; Stoian and Ghauri, 2015). The absence of networks 
can hamper market expansion (Sullivan-Mort and 
Weerawardena, 2005), but building and nurturing them 
can be challenging and demanding. Moreover, given the 

Box 21: Solutions for overcoming large geographical distances

Blue Ocean Robotics is very active in travelling around the world to meet partners face to face. The company also 
strongly relies on different forms of ICT-based communication to overcome physical distances with partners and clients, 
as well as on employees’ flexibility when  communicating with partners on different continents. KristallTurm shares 
risks and responsibilities for shipment with the client, which is organised on a case-by-case basis depending on the 
destination. Khar & Partners and its associated manufacturing partners have taken steps to streamline the initially 
centralised process of production and delivery, rendering the distribution model more efficient. 

Box 22:  Negotiation of advantageous payment agreements to cope with limited 

financial resources

In international businesses, KristallTurm always requests 100% pre-financing by the client in order to reduce the risk 
of payment defaults. Frog Bikes has reached an agreement with some of its suppliers, not having to pay them a deposit 
before the shipment of their order. In the case of Tektro, Frog Bikes has to pay only 20% of the total value of its order as a  
deposit, which is lower than usual practice with other enterprises.

27

Box 23: Solutions to overcome human capital-related limitations 

Blue Ocean Robotics is aware of the importance of using local languages to facilitate local business. Accordingly, it 
boosts local joint ventures and sales partners in many countries with employees who speak the local language to 
overcome language and business culture barriers. KristallTurm recruited an employee speaking both Russian and 
Spanish and another speaking Chinese to support the marketing and sales team. In order to deal with and gain better 
access to non-English-speaking markets, Frog Bikes is looking for French and Italian and French native speakers. 
According to the CEO, it is essential to have native speakers to access new markets and to build international sales 
teams in those countries. This also enhances trust with existing clients in foreign countries and generates more 
opportunities to approach potential clients. Jagwire (supplier of Frog Bikes) also has a strategy of recruiting different 
native speakers to its international team. Tektro (a supplier of Frog Bikes) has improved its staff’s communication skills 
also. 

KristallTurm, in order to reduce the burden for workers going abroad for assembly tasks, changes the assembly team 
from project to project, and sometimes even during one project. The option of using local assembly workers in the 
destination country has not proved to be successful so far, mainly because they lack the required experience and skills, 
coordination is more difficult and assembly takes much longer as a result.

evolution of the information needs at different stages of 
internationalisation, managers typically address different 
sources and establish several network relationships. 
According to Blue Ocean Robotics, creating successful 
international cooperation is a very resource-demanding, 
expensive and time-consuming challenge, not only for the 
co-founders of a Blue Ocean Robotics joint venture who 
struggle to create a successful business, but also for Blue 
Ocean Robotics Denmark. 

2.5.  Support for born globals and 
their value chain partners

2.5.1.  Support needs
The analysed born globals identify two main areas 
in which they need external support to compensate 
for their lack of internal resources and competencies. 
It is important to stress that these support areas are 
‘general’ in nature (access to finance and external capital, 
specialised advice), although they do indirectly impact 
on these companies’ internationalisation efforts. The 
first area relates to the need to raise and have access 
to external capital, in either the initial or the expansion 
phases of the business project, and for different purposes 
(e.g. developing new products/markets, financing R&D 
activities, growing the business and covering product 
certification costs). 

For instance, Blue Ocean Robotics stresses the need 
to raise capital to finance its business activities when 
developing a new robot for new markets, including the 
development stage, the commercialisation of the robot and 
the creation of a spin-off company. Meanwhile, securing 
start-up capital was one of the main challenges faced by 
Recornect and Graphenea. According to AVS Electronics 
(HK), COMODULE’s value chain partner, access to finance 
is the main problem for small companies as banks tend to 
be reluctant to support start-ups and born globals. The less 
favourable conditions banks tend to offer to born globals 
typically relate to the need for specific financing products 
which take into account the risks involved in young 
companies’ exporting activities (OECD, 2009). KristallTurm 

28

also reports that raising finance is not only a problem for 
born globals themselves but also for many international 
clients, and many projects fail for that reason.

A second area of external support needs relates to access 
to specialised assistance and advice within different 
fields, including internationalisation-related activities. 
For instance, Blue Ocean Robotics regularly needs legal 
advice from lawyers for different purposes, particularly 
when establishing new companies abroad, including 
joint ventures and spin-offs, in order to be sure that this 
is done correctly and in line with national legislation. In 
its initial stages in particular, Recornect identified a need 
for specialised external assistance and advice focused on 
drafting and constantly updating a sound business plan 
as well as an external need to map out the requirements 
for selling the company’s products abroad (including 
product certifications, tax obligations and different general 
business practices in foreign countries). More recently, 
the company has been particularly interested in receiving 
specialised support that may help it to grow and scale up 
(for instance, extending its network of potential clients). 
Khar & Partners identifies a need for external assistance 
in handling different administrative requirements, at 
both national and international levels. Finally, Frog Bikes 
suggests that it takes considerable resources and time for 
it to work out how to enter new markets and identify new 
clients without external support. 

In relation to the main needs identified by the GVC 
partners, the limited information available shows that they 
also relate to areas such as access to finance (to invest 
in new advanced equipment in the case of Materflow), 
tax relief for internationalisation activities (Jagwire 
and Tektro) or access to specialised consultancy and 
advice services on various internationalisation-related 
issues in the case of Materflow (that is, information on 
countries, sectors and rules and regulations, procedures 
and trade barriers; identification of international 
potential of products and services; information on market 
opportunities; search and identification of potential 
foreign suppliers and business partners; facilitation of 
business cooperation and networking activities with 
international partners; and support for protecting IPRs).

Born globals and their value chains2.5.2.  Use of external support 
In general, the analysed born globals show a high capacity 
for using different sources of external support for various 
purposes and from private and public actors at different 
levels (EU, national, regional and local). These are often 
linked to the ‘general’ support areas identified in the 
previous section and, therefore, often only indirectly 
support the companies’ internationalisation activities.

Most of the analysed born globals are particularly active 
in using external support to raise capital and access to 
finance. As stressed in the literature, some of their most 
common sources of funding are private investors, venture 
capitalists and government support (Murremäki, 2010). A 
good example of financial support from private investors 
is given by Blue Ocean Robotics, where a group of private 
investors provided external finance in 2016 to consolidate 
the global growth of the born global and strengthen its 
robot portfolio. In other cases, this financial support 
comes from public sources or from a combination of public 
and private agents. This is the case of COMODULE, which 
has been very successful in accessing several investment 
rounds from both private investors (particularly Estonian, 
German and US business angels as well as its own value 
chain partner AVS Electronics (HK)) and one German 
public–private venture capital investment fund (the largest 
investor in start-ups in Germany). 

Similarly, Graphenea launched its activities thanks 
to several rounds of public sector regional short-term 
financial support and a number of regional private sector 
business angels, and other external private investors have 
been added in subsequent life phases of the company. In 
both cases, most of these private business angels were 
found through personal contact networks of the company 
founder(s). Recornect successfully made use of various 
public support measures available for technology- and 
technical-related start-ups in the region. 

Particularly in relation to R&D and IPR activities, some 
of the analysed born globals are extremely successful 
in securing public funding from different sources (EU, 
national and local). For instance, Blue Ocean Robotics has 
many years of successful experience in accessing funds 
from different R&D public funds, such as the EU Horizon 
2020 and Seventh Framework Programme or Danish 
innovation-related funds. COMODULE received funding via 
an innovation voucher from an Estonian public institution 
for conducting patent-related research. Graphenea has 
participated in several key EU programmes (as either 
a coordinator or a project partner). Finally, Frog Bikes 
benefits from an existing UK national tax incentive in terms 
of R&D and patenting. 

In addition to R&D activities, the analysed companies use 
external public sector financial support to undertake other 
activities. For instance, Graphenea has benefited from 
several national and regional measures specifically aimed 
at supporting the internationalisation of the company in 
different domains (that is, participation in international 
business meetings, trade fairs and exhibitions). Recornect 
received a public subsidy from the regional development 
agency to help develop first-stage prototypes, and Frog 
Bikes has benefited from a Welsh Government support 

Born globals in global value chains

scheme to build a new factory in Wales, which involved a 
commitment to create at least 50 new jobs in the local area 
in the three years after the factory opened.

Access to specialised external advice and counselling on 
different topics is another area where most of the analysed 
born globals are particularly successful. In some cases, 
private agents provide these external advice activities (for 
instance, Blue Ocean Robotics uses external lawyers when 
establishing new companies abroad as well as in relation 
to new share subscription agreements and share issues). In 
other cases, the analysed born globals use their business 
angels’ and external private investors’ expert knowledge. A 
good example of this is COMODULE, whose financial plan 
was drafted in collaboration with one of the company’s 
external private investors.

COMODULE’s participation in a three-month international 
accelerator programme enabled the company, amongst 
other things, to receive mentoring from business and 
technology specialists. In other cases, public agents 
provide or facilitate this advice. Thus, COMODULE benefits 
from specialised assistance and advice for start-ups from 
professionals of the already quoted German public–private 
venture capital investment fund. 

Since 2016, KristallTurm has been working with German 
foreign trade chambers (Außenhandelskammern) to select 
interesting target markets as well as identifying potential 
local business partners and obtaining information on 
different legal regulations in the selected countries. 
KristallTurm also benefited from a Bavarian support 
programme called ‘Go International’ which aimed to give 
financial support for costs related to trade fairs or external 
information services, amongst other expenses. Recornect 
has successfully collaborated with the local chamber 
of commerce with support from the Enterprise Europe 
Network (EEN) to start up and scale up (primarily via the 
development and updating of a detailed business plan). 
It has also benefited from a regional public ‘knowledge 
voucher’, used by the company to contract some external 
experts to map the German market.

The role played by prizes and business competitions 
deserves particular attention as an effective way for born 
globals to enhance their visibility and reputation, as well 
as attracting the attention of private investors. Most of the 
analysed born globals have received several national and 
international prizes and awards since their establishment 
(see Table 7).

Finally, the analysed born globals use external support 
that facilitates (international) business cooperation 
and networking activities (such as participation in 
conferences, trade fairs, business clubs). For instance, 
COMODULE actively participates in different national and 
international conferences related to its core competencies. 
Graphenea participated in the EU’s Graphene Flagship 
Initiative, whereas Khar & Partners stresses its active 
participation in the Francophone Business Club in Sibiu, 
where participating companies exchange experiences and 
knowledge with other entrepreneurs on various export 
markets, export requirements and business development 
strategies, sometimes resulting in further business 
opportunities for the participants. The Romanian born 

29

Table 7: Examples of prizes and awards received by the born globals analysed

Case study

Examples of prizes and awards

  Eurobike Gold Award in 2015

COMODULE

  The co-founder and CEO of the company was awarded as one of the top tech 

entrepreneurs of the future in 2016 (listed in the Forbes ‘30 under 30’)

Frog Bikes 

  Finalist in the National Business Awards for New Business of the Year 2013 and 2014 

  Export Business of the Year Award, November 2015 

  Nominated as Bike Brand of the Year by Bike Biz (UK) in 2014

  Listed in Global Cleantech 100’s ‘Ones to Watch’ 2014

Graphenea 

 

In 2015, considered to be one of Europe’s top scale-ups/fast-growing start-ups, 
presented at Silicon Valley’s ‘SEC2SV European Innovation Day’

  Participation in Startup Istanbul and in the Franco-Romanian  Chamber of Commerce 

(Ccifer) in 2016

Khar & Partners 

 

Innovation Prize of the Franco-Romanian Chamber of Commerce in 2016

  Finalist of the Chivas Venture 2017

  Bavarian Export Award 2017, ‘crafts’ category 

KristallTurm 

  Global Connect Award 2016, ‘newcomer’ category 

  Bavarian State Award for Innovation in 2011

  Dutch SME Export Award in 2016

  Selection of Recornect in the Dutch ‘SME Innovation Top 100’

Recornect

Source: Authors’ own elaboration

global suggests that the expansion of the company’s 
products has particularly benefited from the company’s 
participation in international fairs (such as the Morocco 
Meknes International Agriculture Fair in 2015, or the 
Brussels Expo in 2016).

In the case of the GVC partners, the limited available 
information shows that COMODULE’s two GVC partners 
(Materflow and AVS Electronics (HK)) have benefited 
from various external support measures for their 
internationalisation and international cooperation 
activities. Thus, Materflow has benefited from several 
public national support measures, partially covering 
different elements such as the costs of purchasing two 
new 3D printing machines and market research on the 
potential of Materflow’s business in the Baltic states 
and Poland. AVS Electronics (HK) has benefited from 
a national public support measure compensating it 
for the costs of participating in different trade fairs. 
As regards Frog Bikes’ GVC partners, Tektro obtained 
government support to open a distribution centre in 
Portugal, whereas the Belgian government sponsored the 
European branch of Jagwire to attend some international 
trade shows. 

2.5.3.  Assessment of external support by born 

globals and their value chain partners

Most of the analysed born globals value the external 
support they have received, with the exception of Khar & 
Partners. Significantly, the most valued sources of external 
support tend to correspond to areas not exclusively related 

to internationalisation (such as R&D, access to finance and 
new premises support). 

Blue Ocean Robotics particularly values the external 
support received from the Horizon 2020 programme and 
the Innovation Fund Denmark for developing its R&D 
activities. COMODULE expressed satisfaction with the 
different sources of external support received, particularly 
in relation to valuable consultations with the business 
angels and the services provided by the international 
business accelerator (professional advice, feedback on 
all aspects of its business and knowledge about various 
types of financing and financing methods during the 
early stages of its business). COMODULE also values the 
funding received from the German public–private venture 
capital investment fund, as it was the first significant 
investment in the company, which enabled it to hire a 
sufficient number of new employees to further develop the 
product. KristallTurm very much appreciates the quality 
of information received from the German foreign trade 
chambers.

Similarly, Graphenea believes that the external support 
measures used by the company have been important 
for its development. The company identified its three 
most valued sources of external support as the initial 
short-term financial support provided by the regional or 
local authorities, its participation in the EU’s Graphene 
Flagship Initiative (which granted it first-hand access to 
the community of key European players in the graphene 
area) and its being selected for the EU Horizon 2020 

30

Born globals and their value chainsBorn globals in global value chains

programme’s SME Instrument (used to install a new 
production pilot plant of high-quality graphene for 
industrial applications, supporting the company to 
consolidate its position as one of the global leaders in the 
graphene industry). 

Recornect stresses that its pace of development benefited 
strongly from a supportive policy environment and the 
measures available in the Netherlands, and in Eindhoven 
especially, particularly in relation to its main areas of need 
(such as the initial elaboration and updating of a business 
plan and external support in relation to export-related 
product certifications and tax obligations). 

Finally, Frog Bikes believes that the government-funded 
scheme to build the new factory in South Wales has 
significantly enhanced its internationalisation in terms of 
both financial support and the professional consultancy 
received. Feedback on the UK government’s tax incentive 
support for patenting and R&D activities is also positive. 

Despite these positive assessments, some of the born 
globals have identified gaps in the available support, 
such as a lack of legal advice (particularly in relation to 
EU directives and foreign market administrative and 
regulatory requirements) (COMODULE, Recornect) or a 
high level of reluctance on the part of banks to provide 
credit or loans to new companies (Recornect, Frog Bikes 
and KristallTurm). KristallTurm’s experience is that the 
conditions for accessing export-financing instruments 
from private banks or the German government, including 
credit insurance and export guarantees managed 
on behalf of the latter, are not sufficiently financially 
attractive.

Frog Bikes believes that national authorities offer poor 
public support to help firms access new markets (in 
particular, the company approached the UK Department 
for International Trade to seek information on entering the 
Polish market, but this public entity did not help them to 
make any progress).

In the case of Estonia and Romania, the existing supply of 
public national support measures for start-ups is regarded 

as poor. COMODULE suggests the need to develop the 
Estonian start-up ecosystem further to make it more 
attractive for national start-ups, particularly in relation 
to the availability of venture capital funds. Indeed, this 
company has compensated for this lack of national 
provision by successfully gaining access to international 
public and private sources of support. 

Similarly, Khar & Partners identifies several important 
gaps such as the existence of very few export support 
instruments, a lack of suitable public instruments 
supporting entrepreneurship (government-funded 
incubator programmes, prizes, suitable tax incentives for 
innovation expenses and so on) and the high regulatory 
burden imposed upon new enterprises aggravated by a 
‘punitive rather than proactive’ approach to companies 
on the part of the authorities (companies risk large fines 
if they do not comply with requirements, rather than the 
state encouraging compliance via some sort of benefit). 

Significantly, several interviewed born globals 
(COMODULE, Khar & Partners and Frog Bikes) suggest 
that they are not aware of all existing public support 
schemes because of the limited information and the lack 
of promotion of the different types of support available. 
For these companies, the large amounts of paperwork 
involved in securing support as well as the lack of practical 
support on how to fill in the many documents needed for 
an application aggravates this problem. Some of the born 
globals also regard the response of the national support 
authorities as being too slow. The constant and rapid 
change of the market context in which start-ups operate 
requires quicker access to financial support. In short, the 
administrative processes of public organisations do not 
meet the born globals’ expectations. 

Finally, the limited information available shows that the 
GVC partners offer a positive assessment of the support 
measures used, both in terms of their effectiveness and 
their ability to meet the different companies’ needs. In 
the specific cases of Tektro and Jagwire, both companies 
hope to secure further support in terms of tax incentives to 
support their internationalisation efforts.

31

3  Policy measures supporting born 
globals and SMEs in their global 
value chains 

3.1.  EU level
Internationalisation is a primary focus of the EU’s 
strategies, aiming at achieving smart, sustainable and 
inclusive growth (European Commission, 2010). EU 
SMEs’ internationalisation support is also one of the 
objectives of the European Commission’s Communication 
SBA (European Commission, 2008). For Europe and 
Europeans, globalisation has boosted economic growth, 
helped Europe to stay competitive and created multiple 
opportunities for people and companies of different sizes. 

Internationalisation in Europe 2020
3.1.1. 
The Europe 2020 strategy focuses on how the EU can 
overcome the financial crisis and become a smart, 
sustainable and inclusive economy ensuring high levels of 
employment, productivity and social cohesion. 

Of the seven flagship initiatives identified by this strategy 
to boost innovation and growth, one is specifically focused 
on SMEs. The communication ‘An integrated industrial 
policy for the globalisation era’  stems from Europe 
2020 and highlights the key role of industry for EU’s 
competitiveness and sustainability while capitalising on 
globalisation (European Commission, 2014d). It recognises 
the challenges that SMEs face in internationalisation 
and the need to provide them with relevant support for 
markets outside the EU as a key priority of action.

3.1.2.  The SBA and related actions
The SBA, adopted in 2008, is a reflection of the European 
Commission’s recognition of the key role of SMEs in 
the EU economy. It focuses on the improvement of the 
entrepreneurship approach in Europe, the simplification 
of the regulatory and policy environment for SMEs and the 
removal of the barriers to their development. 

The Act defines a policy programme aiming at promoting 
entrepreneurship, applying the ‘Think Small First’ 
principle in policymaking (this represents a response to 
SMEs’ liabilities of smallness and newness) and promoting 
SMEs’ growth. 

The strategy’s priorities focus on facilitating SMEs’ access 
to finance and markets, reducing their administrative 
burden and promoting entrepreneurship. Specifically, 
market access promotion is oriented at supporting SMEs’ 
access to the Single Market and helping them to do 
business outside the EU. The 10 principles around which 
the SBA is built guide the processes of policymaking 
and implementation at both EU and national levels 
(European Commission, 2008) and accompany policies 
on internationalisation (opening up of third and 
neighbourhood countries’ markets, trade facilitation and 

coaching of SMEs by large companies in order to bring 
them to international markets).

As one of its major initiatives, the EC created the EEN in 
2008 (financed by the Competitiveness and Innovation 
Framework Programme and the Competitiveness of 
Enterprises and SMEs programme – COSME) to help 
SMEs build business and innovation partnerships outside 
their home country. The 625+ EEN organisations provide 
these services to more than 250,000 SMEs every year; 
this includes internationalisation services, providing 
specialised advisory services to 70,000 SMEs on access 
to finance, IPRs, EU regulations and resource efficiency 
services. About 25,000 SMEs participate in matchmaking 
events resulting in about 2,500 international partnerships 
signed between SMEs every year.

After an update in 2011, the SBA’s focus shifted to 
supporting SMEs to cope with the economic crisis 
(facilitating access to finance, cutting red tape, promoting 
access to markets and stimulating entrepreneurship). It 
explicitly recognised the needs for the EU and the Member 
States to provide assistance to SMEs and encouraged 
them to take advantage of the growth of markets outside 
the EU, for example through the provision of market-
specific support and business training activities (European 
Commission, 2014a; Dilger, 2016). The Commission’s 
2011 communication ‘Small Business, Big World: A new 
partnership to help SMEs seize global opportunities’ 
followed these points around six fields of action: 
strengthening and mapping the existing supply of support 
services; creating a single virtual gateway to information 
for SMEs; making support schemes at EU level more 
consistent; promoting clusters and networks for SME 
internationalisation; rationalising new activities in priority 
markets; and leveraging existing EU external policies 
(European Commission, 2011).

Following the SBA review, the European Commission 
also proposed a plan to foster entrepreneurship, the 
‘Entrepreneurship 2020 Action Plan: Reigniting the 
entrepreneurial spirit in Europe’ (European Commission, 
2013). The plan also mentions internationalisation and 
invites the Member States to establish one-stop shops 
for entrepreneurs to gather all business support services 
including mentoring, facilitation and advice on access 
to conventional and non-conventional finance, access 
to incubators and business accelerators and support for 
early internationalisation of young enterprises. This saw 
the need to adopt a partnership approach, involving all 
relevant stakeholders, including education and training 
providers (European Commission, 2013). The public 
consultation on the SBA  was launched in 2014 to review 
the Act,  taking into consideration the expected needs for 

33

2015–2020 (European Commission, 2015e). The review 
confirmed the need for an integrated Commission strategy 
to support SMEs’ internationalisation outside the EU. 
Related actions should aim at strengthening the links 
between EU support programmes and establishing and 
monitoring SME dialogues with key EU trade partners.

The implementation of SBA is followed up annually by 
the European Commission through an SME Performance 
Review, notably referring to monitoring the introduction 
of new instruments in line with the SBA principle. Creating 
incentives for companies to support export activities, trade 
missions and cluster development proved straightforward, 
cost-efficient for the provider and effective for the 
companies involved (European Commission, 2017d). 

3.1.3.  The EU Single Market Strategy
The economic activities of SMEs within the EU are 
supported by the EU Single Market, which involves ‘the 
EU as one territory without any internal borders or other 
regulatory obstacles to the free movement of goods and 
services’ (European Commission, n.d.-b). 

Despite improvements of aspects such as governance 
structures, the European Commission (2014c) still 
identifies the need for further integration of financial 
markets and infrastructures and a more stable and 
simpler regulatory framework. Coherently, the 2014 
Communication ‘For a European Industrial Renaissance’ 
has established ‘maximising the potential of the internal 
market’ as a key priority. Related actions foreseen by 
the European Commission consist of infrastructure 
development, market surveillance and product safety 
promotion, and support to the Single Market for services’ 
contribution to industrial competitiveness (European 
Commission, 2014e).

In order to follow up on the EU Single Market Strategy’s 
implementation, the European Commission has designed 
the ‘Single Market Scoreboard’, a tool which, as of June 
2018, is still a work in progress and aims to assess Member 
States’ performance in that field (European Commission, 
2017d). Key indicators include trade in goods and services 
and FDI. According to the 2017 Single Market Scoreboard, 
most Member States are performing in line with or above 
the average in terms of trade in goods and services and 
FDI.

The European Commission’s commitment to upgrade 
the Single Market has been translated into practical 
measures helping SMEs and start-ups to grow and expand, 
promoting innovation, unlocking investments and 
empowering consumers, and resulted in the elaboration 
of a new Single Market Strategy in October 2015 (European 
Commission, 2015f). These measures complement a 
number of sectoral initiatives, some of which are relevant 
to SMEs’ international business activities.

  Company growth, for instance through the Start-up 
and Scale-up Initiative to improve the environment 
for European start-ups and fast-growing firms 
(European Commission, 2016e).

  Digital economy, for instance though the European 

Commission’s Digital Single Market Strategy 
(European Commission, 2015i, n.d.-c) to ensure better 
access for consumers and businesses to digital goods 
and services across Europe.

  Access to finance, through the Investment Plan for 

Europe, including the use of EU funding programmes 
and funds and initiatives related to the Capital 
Markets Union (European Commission, 2015g).

  Trade, for instance through the communication 
Trade for All (European Commission, 2015h), 
which redesigns the European Commission’s trade 
and investment policy and includes SME-specific 
provisions, as well as through trade agreements.

  Rights of employees, through the Labour Mobility 

Package (European Commission, n.d.-d) fostering 
the coordination of social security systems to better 
support labour mobility, and a revision of the rules on 
posting of workers (European Commission, 2016c).

  Tax, through a related Directive (European Council, 
2015) to eliminate the possibility of exploiting 
differences and loopholes in national tax within the 
Single Market, and the action plan for fair and efficient 
corporate taxation (European Commission, 2015j).

  Cross-border VAT regulations foreseen as part of the 
Digital Single Market Strategy (European Commission, 
n.d.-c) as well as simplifications to reduce the 
administrative burdens on SMEs, according to the 
Action Plan for a fraud-proof VAT system (European 
Commission, 2016f).

  Collaborative economy, including a European 

agenda for the collaborative economy (European 
Commission, 2016g).

  Company law, for instance through the Single 

Member Company proposal (European Commission, 
n.d.-e), which aims at reducing the costs of company 
registration and simplifying procedures, as well as 
through the analysis of the need to update the existing 
rules on cross-border mergers5 and to complement 
them with rules on cross-border divisions.

  Services, planning for better clarity of the 

requirements in each Member State that can be 
applied to the cross-border provision of services, 
as well as foreseeing a ‘European services e-card’, 
to ‘reduce administrative complexity for service 
providers that want to expand their activities to other 
Member States’ (European Commission, 2017c).

  Goods, through an EU-wide action plan (European 

Commission, n.d.-f) to raise awareness of the principle 
of mutual recognition, meaning that goods that are 
lawfully marketed in one Member State enjoy the right 
to free movement and can be sold in another Member 
State.

  Geographically based restrictions, through 

legislative proposals to end unjustified geo-blocking 

5 

See Directive 2005/56/EC on cross-border mergers of limited liability companies. 

34

Born globals and their value chainsPolicy measures supporting born globals and SMEs in their global value chains 

(public consultation launched in 2015; European 
Commission, 2016h).

  Standards, through the ‘Joint initiative on 

Standardisation’ (European Commission, n.d.-g) in 
order to modernise the European Standardisation 
System (European Commission, n.d.-h), as well 
as the creation of an electronic European Single 
Procurement Document (eESPD) and the accreditation 
of e-procurement platforms to support SMEs to 
have a mutual standing in procurement procedures 
and participation in multiple markets (European 
Commission, 2017e).

 

IPR protection, for instance through a Unitary Patent 
System (built on the European Patent Convention), 
whereby the applicant only has to request a unitary 
effect from the European Patent Office, which will 
operate as a one-stop shop for all patent applications 
(European Patent Office, 2017). 

Internationalisation outside the EU

3.1.4. 
European strategic documents also emphasise the need 
to support international economic activities outside the 
EU. Relevant examples include strategies such as the 
Europe 2020 Communication on Industrial Policy, the EU 
2010 Trade, Growth and World Affairs strategy and the 
2007 revised Market Access Strategy Global Europe. In a 
context of shrinking European domestic public and private 
demand deriving from the financial crisis, trade, third-
country market access and continued export performance 
are recognised as key for Europe’s competitiveness, 
growth and job creation. Thus, policy focuses not only on 
export volumes but also on the number of exporting firms 
to facilitate EU companies’ integration in GVCs, also based 

on innovation, trade policies and international activities. 
Free trade agreements and negotiations on the accession 
of new countries to the World Trade Organization’s 
Government Procurement Agreement represent some of 
the tools to support this process, alongside more specific 
actions such as the promotion of company missions 
for growth and market access strategies (European 
Commission, 2014e). This aims at promoting trade in 
services, digital trade and the mobility of professionals, 
addressing regulatory fragmentation, securing access 
to raw materials, protecting innovation and ensuring 
the swift management of custom procedures (European 
Commission, 2015h). 

3.1.5.  Overview of main EU instruments
A variety of specific support instruments are available 
for EU companies willing to internationalise, and some 
of them explicitly target SMEs and/or born globals. Such 
instruments and policies are provided at EU, national 
or sub-national level, and the main ones can be seen in 
Table 8. 

3.2.  Illustrative examples of 

national policy measures 

3.2.1.  Types of support offered 
Considering the range of support needs that SMEs have 
for internationalisation, there is a variety of instruments 
tackling the issue at national level. According to the 
European Competitiveness and Sustainable Industrial 
Policy Consortium in 2013, the types and spread of existing 
internationalisation support instruments in the EU27 can 
be summarised, as Table 9 shows (Ecsip, 2013).

Table 8: Main EU programmes and instruments promoting SMEs’ internationalisation

Name

Period

Budget

Objectives

COSME (in charge: DG GROW) 
(see European Commission, 
n.d.-i)

2014–2020

€2.3 billion

The main priorities of the programme relate to access to finance, 
access to markets, creating better framework conditions for 
competitiveness and encouraging entrepreneurship. It supports 
internationalisation and access to foreign markets. 

Examples of measures: 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

EEN (2015–2021)

EU–Japan Centre for Industrial Cooperation

Cluster Internationalisation initiative for SMEs (2014–2020)

Financial instruments (the Equity Facility for Growth and the Loan 
Guarantee Facility)

IPR SME Helpdesks

SBA

Business Beyond Borders

Ready2GO

Network of European Business Organisations in third countries

Erasmus for Young Entrepreneurs (2014–2020)

(Continued)

35

Table 8: Continued

Name

Period

Budget

Objectives

Horizon 2020 (in charge: 
Directorate-General for 
Research and Innovation and 
several other Directorates-
General, including DG GROW)

2014–2020 

€79.4 billion

Key elements of Horizon 2020 include the development of the 
technologies and innovations that will help European SMEs to grow 
into world-leading companies. 

Horizon 2020 promotes cooperation with countries based on common 
interests and mutual benefit, ensuring access to talent and resources 
wherever they are located and companies’ participation in GVCs. 

Any European business can use Horizon 2020 as a tool to 
internationalise by partnering with non-European companies or other 
actors to carry out joint research and innovation activities, such as 
joining a technology supply chain, demonstration or piloting a new 
product, service or technology, accessing facilities, data or services, etc.

Examples of measures include: 

- 

- 

SME-tailored support to stimulate all forms of innovation in SMEs, 
targeting those with the potential to grow and internationalise 
across the Single Market and beyond. 

A dedicated SME instrument and a Fast Track to Innovation pilot 
scheme to speed up the time from idea to market, and to increase 
the participation of industry, SMEs and first-time applicants.

Partnership Instrument 
(in charge: the European 
Commission’s Service for 
Foreign Policy Instruments; 
not attached to any 
Directorate-General) (see 
European Commission, n.d.-j)

Instrument for Pre-
Accession Assistance II (in 
charge: Directorate-General 
for Neighbourhood and 
Enlargement Negotiations) 
(Regulation (EU) No. 
231/2014 of the European 
Parliament and of the Council 
of 11 March 2014)

European Neighbourhood 
Instrument (in charge: 
Directorate-General for 
Neighbourhood and 
Enlargement Negotiations) 
(Regulation (EU) No. 
232/2014 of the European 
Parliament and of the Council 
of 11 March 2014)

2014–2020 

€954 million 

Funding activities that carry forward EU agendas with partner 
countries, for instance by providing technical assistance such as IPR 
issues, promoting business cooperation, innovation and knowledge 
management, as well as underpinning cooperation with international 
institutions.

2014–2020

€11.7 billion

Via the Instrument for Pre-Accession Assistance, the EU supports 
reforms in the enlargement countries with financial and technical 
help. The ‘growth and competitiveness’ pillar supports socioeconomic 
development in the region and contributes to creating a better 
business environment, in particular for SMEs: it aims to attract foreign 
investments, improves access to finance and promotes clustering, 
networking and SME internationalisation.

The Instrument for Pre-Accession Assistance II finances the technical 
assistance facility of the Western Balkans regional Enterprise 
Development and Innovation Facility, which aims at increasing 
governments’ support for strategic investments, particularly in 
infrastructure, energy efficiency and private sector development.

2014–2020

€15.4 billion 

The European Neighbourhood Instrument promotes enhanced 
political cooperation and economic integration between the EU and its 
neighbour countries. Support is especially provided for improvement 
of business environment and trade development of the southern 
Mediterranean.

Source: Eurofound’s elaboration based on European Commission web pages, Ecsip (2013) and European Commission (2016d)

Amongst the 28 measures analysed in this project, there 
are four main groups of support, including access to 
finance, advice and consultancy, networking, and legal 
and administrative support. While these are discussed 
separately in the following paragraphs, it is to be noted 
that hardly any measures offer just one type of support; in 
most cases, the combination of different services offered 
presents the particular advantage of the instrument.

The first group of measures focuses on access to 
finance. One such is Global Lehian (Spain), which offers 
subsidies to Basque SMEs active in any sector that are 
seeking increased penetration of foreign markets. It 
differentiates between businesses at three different 
stages of internationalisation: start-up, consolidation and 
establishing facilities abroad. The measure offers subsidies 

36

Born globals and their value chainsPolicy measures supporting born globals and SMEs in their global value chains 

Table 9: Types of internationalisation support offered by public and private sector organisations in the EU27

Public

Private

Support services

Share of total

Support services

Share of total

Seminars, workshops

Staff training

Trade missions, trade fairs and matchmaking events

Information on rules and regulations

Information on market opportunities

Identifying and arranging meetings with potential clients

Advice and consultancy

Business cooperation and networking

Sectoral programmes

Credit guarantee scheme

Subsidies, grants

Tax incentives

Low-interest credits

Insurance services

Other

Total

Source: ECSIP (2013)
* rounded percentage

355

214

280

286

308

264

370

338

180

105

133

73

75

69

21

12%

7%

9%

9%

10%

9%

12%

11%

6%

3%

4%

2%

2%

2%

1%

39

26

33

30

45

34

51

45

17

15

16

6

4

12

2

10%

7%

9%

8%

12%

9%

14%

12%

5%

4%

4%

2%

1%

3%

1%

3,071

100%*

375

100%*

which are provided  up to certain ceilings and transferred 
once the expenditure has been incurred. 

Another is ICEX Next (Spain). This is intended either to 
facilitate Spanish SMEs’ initial steps towards exporting 
or to consolidate their internationalisation activities in 
third markets. The programme lasts for 18 months and is 
structured around two key pillars, including personalised 
expert advice carried out by consultants and financial 
support. This measure provides beneficiary SMEs with up 
to €10,400 to undertake different international support 
activities, including representation costs in foreign 
markets, foreign promotion costs and/or the hiring of 
specialised personnel. Significantly, according to the 
interviewee for this measure, many participating SMEs 
initially approached ICEX Next (Spain) looking for financial 
support but, in the medium term, its expert advice was 
seen by participating SMEs as being the scheme’s most 
valuable element. In the same vein, DHI (Netherlands) 
facilitates SMEs’ access to finance by sponsoring their 
market assessment costs in the form of demonstration 
projects (up to €200,000) and feasibility and investment 
preparation studies (up to €100,000) to access target 
markets. 

Another example within this group is the Japan External 
Trade Organisation’s (JETRO) RIT (Japan), which is 
designed to promote business collaboration between 
SMEs in different industry clusters in Japan and overseas. 
This programme represents an opportunity for foreign 
regions interested in partnering with Japan but lacking the 

resources or network contacts to achieve it. Participation 
can include local business and industry organisations, 
study groups, chambers of commerce and regional 
governments. Under this scheme, support typically 
consists of a contribution to the costs of collaboration 
between Japanese and foreign regions. Funding is 
available to contribute to the costs of business matching 
for networking with foreign companies. The measure 
also gives information about investment in Japan and 
contributes to seminars organised by JETRO. 

The second group of support comprises advice and 
consultancy as shown, for example, by ICEX Next (Spain), 
HVO (UK), RIT (Japan), FINEST SpA (Italy) and ICDK 
(Denmark). Support offered through ICEX Next (Spain) is 
structured around one of its two key pillars as described 
above. This typically involves expert advice offered over 
a period of between four and six months, part of which 
includes an analysis of participating SMEs’ business model 
and digital marketing activities. This work is conducted by 
an external expert in a three- to four-hour session. Not all 
of these assessments lead to a positive conclusion, which 
means that some SMEs may be discouraged from taking 
their business model forward to international markets. 
Beneficiaries of this measure may receive advice from a 
consultancy at below-market rates. More specifically, they 
are able to obtain subsidised translation services and free 
advice with respect to industrial and IPR issues. Expert 
advisers are used both within Spain and abroad, and are 
available in Chile, Colombia, Ecuador, Mexico, Panama, 

37

Peru and the USA. Other personalised ICEX services are 
available at a 30% discount.  

The nature of ICEX Next (Spain) clearly illustrates the 
interconnections between different core services offered 
through the reviewed policy measures. Although now 
defunct, the UK’s HVO also had a strong advisory and 
consultancy component to support UK businesses in 
developing and implementing strategies to win high-value 
contracts. The scheme provided consultation services, 
facilitated networking and fostered relationships between 
managers involved in the application process for high-
value contracts (above GBP 500 million – equivalent 
to €569 million). Advisory support available under this 
scheme included practical support in the application 
process, in which private sector business specialists were 
involved.

Although changes in content have been brought in since 
its inception, the basic format of the Born Global (Sweden) 
programme has remained remarkably consistent over 
time. Initially, participants are able to visit Silicon Valley in 
order to benefit from the experience of entrepreneurs and 
their advisers. On their return to Sweden, the participating 
businesses go through a six-month process involving 
several hours of workshops and other networking 
opportunities. 

Denmark’s VITUS is a further example of a measure 
centred on high-quality advice and consulting. The 
programme focuses on specific sales activities in order 
to help companies secure export orders. The core of this 
programme is the development and execution of an export 
strategy. The programme is structured over three phases 
including a selection, a strategy and an executive phase. 
High-quality experts from the private sector are involved in 
running workshops for VITUS. 

The Italian FINEST SpA measure provides tailored 
managerial consultancy to its business partners for 
investment projects and strategies for business expansion 
at all stages of project development. More specifically, it 
can provide strategic analysis for international investment, 
project development assistance and local consulting 
advice.

The third group of measures identified comprises the 
promotion of networking activity to the participating 

business. In this context, Global Lehian (Spain) aims to 
help Spanish managers and entrepreneurs to develop 
a deeper understanding of what they need to do for 
their own business development, and it can also help to 
establish the credentials of Spanish SMEs internationally. 
Japan’s SMEs’ CEO Network Enhancing Project underlines 
the importance of entrepreneurs’ knowledge of key people.

The final group of measures provide legal or administrative 
support. Examples include the Foreign Investment 
Ombudsman (Korea), the International Mobility Law 
(Spain) and the Foreign Investment and One Window 
Policy (Nepal). The common features of these measures 
are to facilitate inward investment and FDI to the country 
by enhancing the business environment and entry 
conditions for foreign investors. However, the form of 
support varies. For example, the Foreign Investment 
Ombudsman (Korea) helps companies to investigate and 
handle complaints from foreign investors and foreign-
capital-invested companies, prepares policy measures 
for improving foreign investment systems and provides 
recommendations on the implementation of these to the 
relevant administrative and public agencies, and deals 
with other complaints from foreign investors. Meanwhile, 
the International Mobility Law (Spain) simplifies the 
procedure of visa application for foreign investors 
and entrepreneurs to attract FDI and international 
collaboration between foreign partners and Spanish firms. 
The Foreign Investment and One Window Policy (Nepal), 
on the other hand, provides a tax incentive for industries 
established with foreign investment, a lower tax on 
technical and management fees as well as interest income 
on foreign loans. 

3.2.2.  Context of the measures 

and administrative levels of 
implementation

The support needs of businesses are affected by the 
historical, economic and institutional context of the 
country in which they operate and thus have major 
implications for the contemporary support system. 
In this respect, the experiences of the central and 
eastern European countries that are members of the 
European Union are particularly relevant, as they 
have been challenged with newly creating a support 

Box 24:  Impact of the historical context of the country when establishing 

internationalisation support

In Romania, after the 1989 revolution, chambers of commerce were granted the status of NGOs, which made them one 
of the main pillars of a market economy dominated by private entrepreneurs. To this end, Romania’s CCIR has been 
charged with consolidating Romania’s ‘external profile’, to attract foreign investors by providing integrated support 
services such as seminars, networking support, tailored advice and database provision. After Romania joined the 
European Union in 2007 and adapted to the Single Market, the CCIR developed activities to better inform Romanian 
businesses on the opportunities available in non-EU markets and to promote Romanian businesses in extra-European 
markets. It also diversified the organisation’s communication channels to disseminate their integrated support services 
and promoted the Romanian business environment via social media channels.

The CCIR works closely with the Romanian Ministry of Foreign Affairs, Ministry for Business, Trade and Entrepreneurship 
and Ministry of the Economy. The inter-institutional collaboration is very close and their actions towards promoting the 
internationalisation of Romanian businesses are complementary.

38

Born globals and their value chainsPolicy measures supporting born globals and SMEs in their global value chains 

system for export promotion as well as a wider 
internationalisation process that is appropriate to a 
market-based economy.

Hence, the context in which a measure is introduced 
and applied can affect the level of priority given to it by 
policymakers, as well as its underlying rationale and 
objectives. 

The majority of the analysed measures were initiated by 
national governments, either as part of a general economic 
strategy aimed at facilitating internationalisation or as 
a way of helping certain types of companies, such as 
SMEs and start-ups, to overcome the initial challenges 
of launching or expanding their business and to tackle 
particular context-based problems. 

In such cases, individual instruments are embedded 
in a broader approach to internationalisation. For 
example, the International Mobility Law (Spain) is part 
of the Spanish government’s attempt to attract highly 
qualified professionals and entrepreneurs. Similarly, 
the UK’s OTE measure is embedded into a wider 

national strategy called ‘Export Challenge’ to enhance 
internationalisation.

Moreover, other relevant examples refer to measures 
that support internationalisation in an indirect way, for 
instance by focusing on broader company aspects.

Measures more explicitly promoting internationalisation 
for SMEs are launched to meet a call for a national strategy 
to increase exports and the number of exporters, such as 
OTE and HVO (UK). Other instruments, such as the Foreign 
Investment Ombudsman (Korea), RIT (Japan) and SMEs’ 
CEO Network Enhancing Project (Japan) aim to attract 
inward foreign investment. This focus might be attributed 
to the nature of the economy and their priority policies to 
enhance FDI, compared to other measures in the EU such 
as STC (Spain), BMWi (Germany) and DHI (Netherlands), 
which are more outward-oriented. 

In terms of administration, some of the national measures 
included here are organised at the regional level 
(including regions abroad). For example, ICDK (Denmark) 
is administered by the Danish Ministry of Foreign Affairs, 

Box 25:  Wider strategic policy considerations driving the establishment of 

internationalisation support

In Australia, the government has launched its Incubator Support measure as a way of overcoming the constraints of the 
country’s geographical context. Australia is a relatively isolated economy, located far from other major world markets, 
and incubators are seen as a means to assist Australian globally focused start-ups to develop the skills and capabilities 
required to succeed in international markets. 

Another example of a context-driven policy measure supporting internationalisation is the Innovation Centre (ICDK) 
in Denmark. In 2006, a policy review was undertaken, from which it became clear that Denmark was not sufficiently 
represented in those countries and regions that play an important role in the world economy. As a result, the first ICDK 
was established in the same year in Silicon Valley, California, to build better market relations in that high-tech and start-
up ecosystem. A number of other centres gradually opened in other cities, namely in Shanghai (2007), Munich (2008), 
São Paulo, Seoul and New Delhi/Bangalore (2013) and Tel Aviv (2016).

Box 26: Indirectly supporting internationalisation

Denmark has developed a comprehensive range of support measures designed to promote and facilitate growth. Many 
firms participating in one of these growth programmes at some point started to consider internationalisation as a 
growth strategy. The VITUS measure was introduced to address the problem of high-growth companies in the country 
being underrepresented in comparison with the EU average. VITUS built on the success of a programme called Gazelle 
Growth and a programme called Accelerace. VITUS provides intensive support requiring extensive commitment from 
participating companies in terms of financing and resources. As a result, it is focused on internationalisation while being 
embedded in Denmark’s extensive growth programme.

In Sweden, Born Global operated between mid-2012 and late 2016. Born Global followed a measure that was essentially 
about support for high-growth businesses. Given the size of the Swedish economy, a growth programme is inevitably 
linked to a strategy of internationalisation. In order to get over the constraints of a small domestic market, the 
programme aimed at businesses in the very early stages of internationalisation, with the main objective of laying the 
basis for future international growth. The approach was designed to provide training to CEOs, who would often then take 
this training back and transfer it to colleagues within their business. The support included a study visit to Silicon Valley 
to exchange knowledge and experience and to motivate the Swedish entrepreneurs to create scalable international 
companies by introducing them to selected global tech firms, venture capitals, local start-ups, industry experts and 
business angels. All start-ups in the programme considered they benefited from their participation in some way and 
regarded the cost of participation fee (SEK 50,000, the equivalent of about €4,785, per participating company) as well 
invested. The programme was replaced by the Scale Global programme in spring 2017, aiming at slightly larger SMEs 
which are further along on their international journey.

39

Box 27: Boosting local economies and international collaboration

RIT (Japan) facilitates business tie-ups to develop markets and technical cooperation, boosting local economies 
and attracting international collaboration and partnerships with foreign regions that lack resources and networking 
in Japan. The focus goes beyond internationalisation support for SMEs, as it creates mutual support for both local 
and foreign partners and enhances cooperation and the development of both the Japanese and foreign regions. The 
objectives of the scheme are influenced by the context, in which the Japanese government prioritises inward investment 
as part of the ‘Japan revitalisation strategy’ that promotes the Japanese business environment to attract foreign 
companies and enhance international collaboration between Japanese companies and foreign partners for new product 
development and R&D. 

Box 28: Regional internationalisation support 

Communication Support (Belgium) is carried out by the Walloon Agency for Export and Foreign Investment (AWEX) to 
support the international communication activities of companies based in the Walloon region of Belgium. 

The Global Lehian (Spain) initiative is complementary to a series of measures developed by different regional 
and provincial authorities in Spain. This measure is not narrowly focused on export activity but also includes the 
establishment of foreign subsidiaries abroad. It particularly supports production facilities and encourages cooperation 
between companies, helping to enhance the internationalisation of Basque SMEs.

Another example is FINEST SpA (Italy), which facilitates the development of economic activities and international 
cooperation for SMEs located in the Friuli Venezia Giulia region, the Veneto region and the autonomous province of 
Trento – the Triveneto area. In particular, FINEST SpA supports the economic cooperation between Triveneto SMEs 
and countries of the former Soviet bloc, especially those bordering countries of the former Yugoslavia. This approach 
derives from the geographical location of the Friuli Venezia Giulia region. Being the easternmost region of northern Italy 
and sharing a border with the former Yugoslav republic of Slovenia, it is uniquely positioned to capitalise on economic 
cooperation with eastern Europe.

Other regional-level examples include support for establishing subsidiaries abroad and forms of cooperation at the 
regional level that are designed to attract foreign businesses, such as the SMEs’ CEO Network Enhancing Project in 
Japan, which facilitates contacts between Japanese SMEs and companies from other selected Asian countries to develop 
their international cooperation.

which is one of the measure’s initiating bodies. The central 
Copenhagen-based office administers the budget and 
coordinates meetings and relevant information. However, 
each individual ICDK centre, such as the one in Palo Alto, 
California, is administered locally by an executive director 
who carries out the daily management tasks. Similarly, 
ICEX Next (Spain) is administered by ICEX itself. There 
are regional offices of ICEX Next throughout Spain which 
deal with the daily management of activities, such as 
interactions with SMEs and the promotion of the measure, 
while the funds are managed centrally. 

Some of the 28 measures presented have been developed 
and implemented at the regional rather than national level, 
reflecting differences in governance between countries. 

Not all analysed measures are initiated by governments. 
Start Alliance (Germany), for example, has been 
developed by Berlin Partner for Business and Technology 
with a group of experts from the private sector. This 
measure hinges on the collaboration between business 
agencies, workspace providers and local incubators (both 
private and public) in technology hubs all over the world. 
Besides private sector partners, the programme involves 
city administrations and public development agencies. 

In many cases, a measure is a successor to a previous 
scheme, relaunched with some adaptations. GVK 

(Denmark), for example, builds on the experiences 
from the former Innovative Globalisation Agent (IGA), 
which ended in March 2015. IGA’s goal was to contribute 
to exports and growth of SMEs in southern Denmark 
through the supply of skilled labour for companies to 
hedge the company’s globalisation potential and to 
upgrade the skills of existing employees. Because IGA 
was very successful, the GVK measure was designed in a 
similar setting by the same partners. The main difference 
between the measures is in their target groups: while 
IGA targeted only unemployed academic graduates, GVK 
mainly addresses the employees of SMEs and unemployed 
academic graduates.

Changes in context can result in variations in the measure 
itself. These relate mainly to either the range of activities 
covered (for example, STC (Spain) has been moving from 
a pure space provider to a provider of services including 
the organisation of summer camps and immersion 
programmes), the scope of the project, which is broadened 
to target a wider group of firms (for example, Born Global 
(Sweden)), or the range of industry focus (for example, 
100% Made in Italy (Italy) and Go Silicon Valley (Austria)). 
Amongst the analysed measures, there is one example of 
a programme that underwent administrative restructuring 
without any major disruptions to its operations. Startup 
Estonia (Estonia) was developed by the Estonian Ministry 

40

Born globals and their value chainsof Economic Affairs and Communications in partnership 
with Enterprise Estonia, where the latter functioned as 
the measure’s implementing agency from 2011 to 2014. 
However, there was a need for a bigger team to administer 
the measure and in 2014, the Estonian Development 
Fund was appointed as the implementing agency. More 
specifically, implementation functions were split between 
Enterprise Estonia and the Estonian Development Fund, 
with the latter acting as the implementing agency in 
practical terms, while financial aspects of the measure 
remained Enterprise Estonia’s responsibility. In mid-2016, 
as a result of the subsequent closure of the Estonian 
Development Fund, the measure’s implementation was 
transferred to KredEx, a government foundation providing 
financing facilities to Estonian enterprises in the form of 
loans, state guarantees and credit insurance. Meanwhile, 
Enterprise Estonia continued to perform its technical and 
administrative role.

3.2.3.  Beneficiaries targeted
The overwhelming majority of analysed measures focus 
on SMEs and/or larger businesses, rather than on born 
globals. For example, DHI (Netherlands) focuses on Dutch 
SMEs from all sectors and with international ambitions 
(export and foreign investment), while Go Silicon Valley 
(Austria) targets Austrian SMEs, including spin-offs of 
larger companies, that have a minimum of two employees 
and an innovative business idea, technology or business 
model that is market-proven or for which there is a 
prototype available. ICEX Next (Spain) is focused on all 
types of Spanish SMEs that wish either to initiate their 
internationalisation activities or consolidate their initial 
international business activities, while BMWi (Germany) 
targets self-employed persons and SMEs with fewer than 
500 staff and less than €50 million of annual turnover.

Start-up firms and entrepreneurs are another target 
group. Startup Estonia (Estonia), for example, targets 
people or teams interested in start-up entrepreneurship 
who have an idea or a business concept. It also targets 
start-up entrepreneurs who, in addition to knowledge 
and contacts, need capital to develop their business 
concept systematically, and focuses on start-up ecosystem 
actors who are directly involved in developing start-up 
businesses and who provide contact networks and capital 
to start-ups (such as business accelerators or business 
angels). Although Estonia is the target country, foreign 
start-up entrepreneurs can obtain e-residency and, as a 
result, gain access to the measure.

Start Alliance (Germany) also targets start-ups, namely 
those based in one of the participating partner cities, but 
especially those which are beyond the idea or prototype 
stage and have successfully launched in their domestic 
market, as well as those that have a scalable product or 
service. Another example of a measure targeting start-ups 
is Startup Global (USA), which focuses on start-ups looking 
to expand their business internationally and investors 
interested in engaging with them.

A measure can also target specific actors beyond 
internationalising SMEs. For example, Spain’s 
International Mobility Law targets foreign skilled and 
highly skilled non-EU nationals who plan to carry out 

Policy measures supporting born globals and SMEs in their global value chains 

an economic activity within Spain that is regarded as 
relevant for the country in terms of economic growth 
and job creation. As another example, the Foreign 
Investment Ombudsman (Korea) policy is aimed at all 
foreign investors and all companies registered as foreign-
invested companies in Korea. To be eligible for Incubator 
Support (Australia), an applicant must be an incubator 
that already exists or is in the process of being established 
and can foster and facilitate the development of innovative 
start-ups focused on international trade, as well as other 
organisations, such as entities incorporated in Australia, 
incorporated trustees on behalf of a trust, not-for-profit 
organisations or publicly funded research organisations, 
excluding government departments or agencies which 
undertake publicly funded research.

Firms’ support needs may also be affected by the 
composition of industry and commerce in a country, 
which can lead to the development of sector-specific 
support; one example is the fast-growing ICT sector, 
with its inherent internationalisation potential. Though 
the majority of the analysed measures do not target a 
particular sector, instead offering support to companies 
in all sectors, there are some measures that specialise in 
one or more sectors. VITUS (Denmark), for example, has 
had several rounds with a sector-specific focus, one of 
which was ‘E-VITUS’ (focused on e-commerce). As another 
example, STC (Spain) supports the internationalisation 
activities of Spanish ICT-based SMEs in the USA, as well as 
being the default hub of Spanish ICT companies in Silicon 
Valley. The measure’s sectoral focus has ensured that 
Spanish ICT entrepreneurs going to the USA are provided 
with training opportunities relevant to the ICT sector and 
given access to a network of local US experts and mentors. 
This helps participating companies overcome a number of 
the most important barriers to internationalisation, such 
as lack of familiarity with the local market and the market 
players (including institutions and regulations). Another 
ICT-focused measure is Go Silicon Valley (Austria), which 
offers Austrian SMEs participation for a period of one to 
three months at a business accelerator in Silicon Valley. 
Initially, Go Silicon Valley focused on two industries: 
ICT and renewable energy. However, it turned out that 
accelerators based in Silicon Valley are perfect in the ICT 
field but less useful and effective in that of renewable 
energy. Therefore, the target group was later limited to the 
ICT industry.

The renewable (or sustainable) energy sector is often 
grouped with health technology, social innovation and 
other emerging sectors. GVK (Denmark) is an example 
of a measure that targets SMEs in those particular areas. 
Meanwhile, the Startup Estonia (Estonia) measure uses the 
umbrella term ‘smart growth areas’ for the same emerging 
sectors. These growth areas were identified in the Estonian 
Development Fund’s 2013 analysis  as economic areas with 
above-average growth and value-adding potential, as well 
as being likely to achieve a competitive advantage through 
R&D investment (Arengufond, 2013). The focus on growth 
sectors has enabled Startup Estonia to generate activities 
for start-ups’ internationalisation by focusing on sector-
specific market issues and facilitating informal business 
networking within the target sectors (as in the case of the 
IT start-up ecosystem). Another Estonian measure that 

41

targets the same ‘smart growth’ sector is Development 
of Clusters. Rather than focusing on individual SMEs 
like Startup Estonia, Development of Clusters supports 
cooperation between companies in order to increase the 
international competitiveness of cluster partners through 
joint marketing and business development activities in 
the smart growth sector. This has had a positive impact 
on Estonian SMEs and born globals, since clusters as 
cooperation networks are expected to conduct joint 
international marketing activities and develop cooperation 
in order to help primarily SMEs gain a stronger position 
outside the country.

The example of the SMEs’ CEO Network Enhancing 
Project (Japan) shows that the target sector of a measure 
does not necessarily need to be fixed. Instead, it can be 
adjusted according to the current priorities of a given 
national economy, reflecting the needs of its SMEs. 
Therefore, the SMEs’ CEO Network Enhancing Project, 
which aims to promote Japanese SMEs’ overseas 
business expansion through collaboration with overseas 
companies, focuses on whichever sectors are of the 
highest importance to the Japanese economy at a given 
time. In practical terms, these often consist of competitive 
sectors of the Japanese manufacturing economy (for 
example, transportation equipment, electronic and 
electrical equipment, aircraft parts, industrial machinery, 
medical equipment, food processing, infrastructure, 
building materials and ICT). 

Another example of a measure that targets ‘strategic 
sectors’ is the International Mobility Law (Spain). The 
strategic focus of the measure reflects its main growth 
objective. Statistics show that what is referred to as 
‘strategic sectors’ has in practice mainly been translated 
into the services sector: 69% of permits were issued for 
that sector, while 14.7% were issued for industry, 3.3% 
for the construction sector, 0.8% for the agricultural 
sector and the remaining 12.2% for unclassified activities. 
Despite its focus on large enterprises, the law is also 
relevant for some groups of SMEs and born global 
companies. For instance, Article 71 of the Law facilitates 
the hiring of ‘highly qualified professionals’ by SMEs 
demanding skilled workers, provided that they belong to a 
so-called ‘strategic’ sector.

3.2.4.  Target market orientation
Another element of targeting can relate to the markets 
that support internationalisation. For example, BMWi 
(Germany) supports German enterprises in developing 
foreign markets. Start Alliance (Germany) shows that a 
geographical focus does not need to be restricted to a 
single location. Instead of targeting a particular region of a 
country, this measure connects a number of international 
geographic ‘technology hubs’. The programme focuses 
on selected cities in the world that are able to offer 
outstanding ecosystems and interesting markets to foreign 
start-ups. By targeting major cities rather than whole 
countries, the measure creates a business exchange which 
is based on reciprocity rather than being one-directional. 
Such a reciprocal approach offers clear benefits to SMEs 
aiming to internationalise, since it enables them to offer or 
exchange their services in partner cities directly to other 
participating SMEs, thus expanding their client base. 

3.2.5.  Forms of internationalisation supported
The majority of the analysed measures are focused 
on export activity rather than on internationalisation 
processes more generally. For example, OTE (UK) 
specifically aims to help SMEs export their products to 
new markets, mainly by providing them with information, 
contacts and networking opportunities. 

Nevertheless, there are cases of measures that include, 
for example, internationalisation modes such as FDI, 
joint ventures, subcontracting, technical cooperation 
or importing, or that indirectly support exporting – for 
instance, by emphasising firms’ growth and innovation. 

3.2.6.  Stages of internationalisation targeted
Regarding stages of internationalisation, the 28 measures 
analysed in this report fall under three categories: those 
specialising in early stages of internationalisation, those 
supporting companies in late or more advanced stages of 
the internationalisation process and those targeting all 
stages of internationalisation.

The majority of the measures here focus on businesses in 
their early stages of internationalisation, offering support 
to companies with little or no experience of foreign 

Box 29: Support for the early stage of internationalisation

The VITUS programme (Denmark) is focused on early-stage companies that have the potential and desire to 
internationalise. The objective of the measure is to promote Danish SMEs’ internationalisation process to maximise 
the commercial potential in export markets. The programme’s primary goal is to enable each participating company 
to achieve a concrete order on the market it targets within 12 months of the time the company is accepted into the 
programme. 

Startup Global (USA) aims to enhance start-up exporters’ knowledge awareness of global opportunities as well as 
develop strategic partnerships of start-ups with relevant stakeholders. The programme offers a variety of seminars 
and events that provide information on topics vital to start-ups and other companies in their early stages of 
internationalisation. This includes information on product certification, IPR protection, designing an international 
business strategy, finding customers, distributors and agents, export regulations, e-commerce and digital marketing, 
and accessing support programmes that encourage exports. 

42

Born globals and their value chainsPolicy measures supporting born globals and SMEs in their global value chains 

Box 30: Measures focusing on all stages of internationalisation

Global Lehian (Spain) financially assists the promotional and operational activities of Basque SMEs through 
subsidies to improve their penetration of foreign markets. The measure covers three distinct successive stages 
of internationalisation. First, the start phase, which includes any company with very limited internationalisation 
activities (those with total exports representing less than 5% of their total turnover) but interested in developing their 
internationalisation activities. In this phase, with a maximum duration of one year, the beneficiary has to initiate some 
internationalisation activities. Second, the consolidation phase, in which the beneficiary is supported in implementing 
the internationalisation plan in order to become a regular exporter (with total exports representing between 5% and 
50% of its total turnover), consolidating and increasing a portfolio of export clients and diversifying its target markets. 
Third, the establishment of facilities abroad covers both companies with a consolidated international presence and 
those interested in opening facilities abroad. In addition, the measure foresees a ‘talent activation and adaptation of 
organisations to the global market’ phase, supporting the hiring of an internationalisation technician or consortium 
manager for each participating company. Any SME in the above three phases can apply for talent activation funding 
anytime. 

The German BMWi is composed of different types of support, including information events in Germany on certain target 
countries and industries such as railway technology in Italy, market exploration (for example, study tours, workshops 
and visits to potential partners in foreign countries), symposiums in target countries focusing on a particular industry, 
business initiation trips to individual target clients, importing agencies or other potential partners, buyer visits to 
Germany and other pilot projects. The various modules cover different phases of market development, following the 
logic of ‘inform–explore–contact’.

markets. This is particularly relevant to SMEs, including 
young companies, that are new exporters. However, it 
does not exclude more established companies that are 
looking to export their products or services for the  
first time and/or to identify and exploit new foreign 
markets.

Amongst the analysed measures, there is also an example 
of a policy that targets businesses in early stages of 
internationalisation in an indirect way. Incubator Support 
(Australia) is primarily focused on incubators, but since 
incubators have their own set of target groups, which 
primarily includes start-ups, it can be said that Incubator 
Support indirectly supports firms in their early stages of 
internationalisation. 

Only a small number of surveyed measures specialise 
exclusively in the later stages of the internationalisation 
process. One example is the Foreign Investment 
Ombudsman (Korea). The aim of this measure is 
to provide tailored post-investment and grievance-
settlement services for foreign investors and enterprises 
doing business in Korea.    

In contrast, a significant number of programmes also 
encompass different stages of internationalisation. 

An example of a measure which, although ostensibly focused 
on start-ups in early stages of internationalisation, also 
simultaneously manages to assist established companies 
in more advanced stages of internationalisation is Start 
Alliance (Germany). Its main goal is to internationalise and 
scale up start-up businesses faster. More specifically, it aims 
to help businesses enter new markets, develop international 
relationships and collaboration, achieve scaling effects, 
adapt their business models to international requirements 
and raise international capital. At the same time, the 
programme works with large corporations, assisting them 
to scout out innovation opportunities and find partners 
for innovation projects amongst start-ups. In this way, 

the measure offers value to companies at any stage in the 
internationalisation process.

3.2.7.  Promotion of the measures 
The analysed measures were promoted in a variety of 
ways. The main means for businesses to find out about 
the kinds of support available was through the provider’s 
website. In other cases, the measure was also advertised 
through partner organisations’ websites and, in a few 
cases, business associations’ websites. The second most 
common approach was to recruit participants via the 
intermediaries’ events such as workshops, seminars, 
conferences and international trade shows organised by 
third parties. The third most common method was via 
personal contacts via registered mailing lists, embassies 
and worth of mouth. 

Not all support providers were equally active in promoting 
their measure. For example, ICEX promoted ICEX Next 
(Spain) throughout the year. This is often in collaboration 
with local institutions, such as chambers of commerce, 
sector organisations and regional authorities. In addition, 
social networks such as LinkedIn, Twitter and Facebook 
were utilised. Another Spanish measure, the International 
Mobility Law, was also promoted through a wide range 
of organisations (mainly in the public sector), as well as 
conferences and information events.  
In other cases where the measures are user- and 
innovation-driven, the proposals were sent by the 
companies who wished to be considered for the 
programme following the announcement of the measure, 
for example, BMWi (Germany), Development of Clusters 
(Estonia), RIT (Japan) and GVK (Denmark). 

3.2.8.  Application and selection processes
The majority of the application and selection processes 
employed by the measures fall into one of two categories: 
measures using a single-step, usually online, application 

43

process and measures whose application and selection 
processes are complex, multistep procedures that often 
combine several elements, such as online applications, 
face-to-face interviews and, in some cases, assessment by 
a panel of judges.

Some of the simplest and most straightforward one-step 
application processes are provided by measures focused 
mainly on offering information and consultancy services. 
OTE (UK), for example, which is an online platform set up 
in order to encourage more small firms to internationalise, 
has a very simple application process that is conducted 
entirely online. To use the measure’s online services, 
including webinars, discussions and online Q&A sessions, 
businesses need to sign up for the website by providing 
company details such as name, address, website, number 
of employees, turnover, sector and contact details. 
Although the measure targets SMEs, it does not exclude 
large firms. Therefore, all subscriptions are approved, 
regardless of firm size, sector or legal form, within three 
days of application. 

Similarly, the IP Attaché Network (UK) provides an 
application process whereby any UK-based company 
can gain access to the measure by emailing or calling 
a member of staff. There is no application form or 
joining fee for businesses and the eligibility criteria are 
straightforward and easily verified. Hence, to be eligible 
for the measure’s support, a company needs to be based 
in the UK and actively trading abroad in one of the pre-
defined target markets. 

Other examples of measures with simple application 
processes are Startup Global (USA), where interested 
local companies simply register via the website of the 
Global Innovation Forum, and Communication Support 
(Belgium). To apply for the latter, businesses have to fill 
in an online form and send this to AWEX, the measure’s 
supervising body, which then checks it and indicates to the 
applicant whether additional information is needed. Once 
AWEX has made a decision regarding an application, it 
sends a formal letter by post to the participating company. 
The criterion for being eligible for Communication 
Support is that the applicant’s communication activities 
have yet to begin. 

Application and selection processes for support tend to 
be less simple and involve stages in the cases of measures 
whose services go beyond advice, especially if a financial 
contribution is involved. For example, the application for 
the Incubator Support programme (Australia) consists 
of an initial online application form which details how 
the incubator’s project would assist start-ups, what 
services would be delivered, which market gap is to be 
addressed and what value the project is expected to 
deliver. The applicant must be able to provide evidence 
that the proposed project has support from the applicant’s 
management board, and that the applicant can complete 
the project and meet any associated costs not covered by 
grant funding. The preliminary assessment of projects is 
undertaken by customer service managers at AusIndustry, 
the measure’s administering body, against the eligibility 
criteria. Only eligible applications proceed to the merit 
assessment stage, which is conducted periodically by 
the Committee of Innovation and Science Australia. After 

44

considering the application, the Committee proposes a 
list of applications for funding to the minister, which then 
decides which grants to approve, taking into account the 
Committee’s recommendations and the availability of 
grant funds. If the application is successful, the applicant 
receives a written offer. The process may take up to six 
weeks from the date the application is received.

Another example of a measure with a multistep application 
and selection process is Go Silicon Valley (Austria), a 
programme that enables Austrian SMEs in the IT sector to 
enter the US market. The selection procedure is carried 
out by a US-based panel consisting of industry and finance 
experts including angel investors and incubator CEOs. 
As a first step, following an annual call, an application is 
submitted by email; it includes a registration form and an 
executive summary of the case featuring details such as 
the descriptions of the company’s competitive advantage, 
current clients, market opportunities, possible sources 
of funding and a financial forecast of costs and revenues. 
In a second step, shortlisted applicants are required to 
participate in a pitching workshop in Austria to present 
their business ideas to the jury. 

There is also a link between the complexity of the selection 
process and the stage of internationalisation of the 
applicant: the less advanced the internationalisation of 
the participating SME, the more rigorous the selection 
criteria. This is because the administering bodies of the 
measures need to ascertain that their investment has the 
best possible chance of being returned.

Application and selection processes contain a higher level 
of complexity when the measure in question includes an 
immigration element. For example, foreign founders taking 
part in the ‘Estonian Startup Visa programme’, a service 
offered by Startup Estonia (Estonia), are required to apply 
for either a start-up visa or a temporary residence permit 
in addition to applying for the measure itself. The initial 
application, which is submitted via an electronic system, is 
reviewed by a committee of Estonian start-up community 
members and the committee then decides whether the 
applicant company qualifies for the start-up visa. If the 
application is approved, the participant has to go through 
the usual visa application process at an Estonian embassy 
or Police and Border Guard Board service point. 

Another major distinguishing characteristic of the 
application and selection processes employed by the 
analysed measures is the set of selection criteria used 
to assess the quality and potential of the applicants to 
determine their suitability for the programme. In some 
cases, such as Communication Support (Belgium), the 
main selection criterion is that the applicant has not 
already commenced activities in the measure’s focus 
area. In most other cases, however, the selection criteria 
are far more exacting, requiring candidates to provide a 
clear idea of the commercial viability of their business or 
to demonstrate the marketability of their products. For 
example, businesses applying for VITUS (Denmark) need 
to show that their product is scalable, that the company 
is ready for internationalisation and that the company 
has the necessary financial and human resources to 
participate in the programme. Meanwhile, the assessment 
of applicants for the Development of Clusters (Estonia) 

Born globals and their value chainsfollows a number of selection criteria, including the 
project’s impact in achieving the objectives of the 
measure, the merits of the project, the cost-efficiency of 
the project and the capability of the applicant and the 
cluster partners to implement the project. The assessment 
of the application normally takes about 45 days from the 
date the application is received.

3.2.9.  Delivery mechanisms
It has been suggested that the effectiveness of a public 
policy measure is influenced as much by the method of 
delivery as by the contents of the policy itself (Karlsson 
and Anderson, 2009; Bennett, 2014; Hoffman and Storey, 
2018). Essentially, policymakers can choose between 
two delivery models: direct delivery and indirect delivery 
through contracted third parties.

An example of direct delivery is Communication Support 
(Belgium), whose sole deliverer of services is AWEX, the 
measure’s administering body. AWEX has close ties with 
the national government and reports at the federal level, 
but acts autonomously as an authority at the regional 
level. Its main delivery-related task is transferring money 
to participating businesses and requesting invoices from 
participants to check that the funds provided by the 
measure are being used in a proper way. Another direct 
delivery example is OTE (UK), which provides its services 
through its website. OTE’s in-house consultants and 
advisers respond to all queries and provide any relevant 
information regarding the exporting/importing process, 
such as documentation, administration, import/export 
taxation, regulations, foreign market opportunities, 
international exhibitions, networking opportunities and 
access to resources. 

Amongst the analysed measures, there are many 
examples of delivery mechanisms that involve third 
parties. BMWi (Germany), for instance, performs the 
final selection of proposals for its events with the help 
of the federal trade agency German Trade and Invest. 
Public tender procedures are then launched by an 
organisational unit of the Bundesamt für Wirtschaft 
und Ausfuhrkontrolle  to select promoters for the BMWi 
events or proposals. The final award decision is taken by 
a procurement committee consisting of representatives of 
the Bundesamt and BMWi. 

The involvement of a third party in the delivery mechanism 
is to be particularly expected in cases where the purpose 
of the measure is to provide training and networking 
opportunities with actors in a foreign country. Therefore, 
in the case of Go Silicon Valley (Austria), services and 
support are directly delivered by California-based business 
accelerators where the measure’s networking and training 
opportunities are hosted. The measure uses the assistance 
services, expertise and contacts of the Californian 
institutions and the costs are covered by the Austrian 
programme budget. Furthermore, the Los Angeles office 
of the foreign trade organisation Advantage Austria, the 
part of the Austrian Federal Economic Chamber which is 
the initiator of the measure, assists participating Austrian 
companies during their stay in Silicon Valley, as well as 
conducting entry, progress and exit meetings with the 
participants to monitor achievements. 

Policy measures supporting born globals and SMEs in their global value chains 

Another example of a delivery mechanism that involves 
third parties is the Matchmaking Facility (Netherlands), 
set up by the Netherlands Enterprise Agency. The 
Matchmaking Facility, which helps enterprises in 
developing countries to find export and import markets in 
the Netherlands, works together with the Dutch embassy 
in the country of the applicant in delivering the measure 
to beneficiaries. The embassies promote the measure 
by hosting information events, and are the recipients of 
applications from foreign entrepreneurs. If the application 
is approved by the Matchmaking Facility, suitable Dutch 
business partners are identified with the expert help of 
Dutch consultants working for the measure on a freelance 
basis. 

3.2.10.  Monitoring and evaluation
About half of the analysed measures have some form of 
formal or informal monitoring. In the remaining cases, 
either there is no monitoring at all (for example, 100% 
Made in Italy (Italy), STC (Spain), Born Global (Sweden)) 
or the measure has not been operating for long enough 
for the effects to be seen (for example, Startup Global 
(USA) and Incubator Support (Australia)). In other cases, 
the information is not publicly available (for example, 
ICEX Next, Spain) or the monitoring remains internal 
and methods or indicators cannot be ascertained; this 
is the case with Start-up (Estonia), SMEs’ CEO Network 
Enhancing Project (Japan), HVO (UK) and VITUS 
(Denmark). 

If available, monitoring data generally refer to the number 
of participating firms (for example, GVK (Denmark), SMEs’ 
CEO Network Enhancing Project (Japan) and the IP 
Attaché Network (UK)), users’ reported satisfaction with 
the provided services (such as Start Alliance (Germany) 
and integrated support services from the CCIR (Romania)), 
the number of workshops and conferences held, the 
number of innovation projects carried out, the number 
of science- and higher-education-related tasks solved for 
researchers and science and higher education institutions, 
yearly earnings, and strengthened networks (for example, 
increased number of new partners or contacts for 
collaboration).

The most common methods of data collection for 
monitoring are surveys, questionnaires and interviews 
with participants or service users which are conducted 
either after each meeting or monthly or quarterly.

The weakness of monitoring can be linked to the 
unclear nature of the targets set when the measure is 
launched. This is not a new problem, and it is consistent 
with the literature, in which Storey (1998) suggests the 
fundamental principle of evaluation according to which 
‘its prerequisite is the specification of the objectives of 
policy. Unfortunately it appears to be a characteristic of 
governments in all developed countries to be, at best, 
opaque about the objectives of small business policy’.

Only about a third of the investigated policy measures 
engage in evaluation. This may be due to a lack of 
transparency, a lack of resources to perform evaluations 
or a limited evaluation culture. The majority of the 
externally evaluated measures are large-scale projects 

45

Box 31: Monitoring procedure of the IP Attaché Network (UK)

Launched in 2011, this measure has been operated by the government-backed Intellectual Property Office (IPO), to raise 
IPR awareness and solve IPR-related problems for UK businesses operating in emerging markets. Monitoring is based on 
three main indicators: the number of businesses that the IPO deals with, the number of businesses that acquire general 
intellectual property awareness (for example, general knowledge about the significance of IPRs, how to register and how 
to protect their IPRs) and the monetary value of the intellectual property or the revenue lost due to stolen intellectual 
property such as trademarks and copyright. 

The IPO conducts the monitoring internally by calculating the above three indicators on a monthly basis. Besides this, 
the IPO team monitors the variety of firm sizes and how the businesses approach IPO. The data collection aims to help 
formulate the operationalised target for the programme. In the past, the monitoring report was delivered monthly for 
ministers’ information but, as of November 2018, the monitoring report on the operation of the IP Attaché Network is 
conducted every six months to inform the relevant minister of the results, successes and impact of the programme. This 
document is only partly available to the public due to confidentiality agreements with participating companies, such as 
the commercial value of their lost intellectual property.

Box 32: Changes based on outcomes of monitoring and evaluation

HVO in the UK brought significant changes in light of its monitoring and evaluation. Recognising the difficulty of 
tracking the follow-up progress of the beneficiaries after the HVO contracts were successfully secured, the scheme 
was discontinued in November 2016 and transferred into another scheme which offers sector focus to better allocate 
resources for monitoring and evaluation.

Development of Clusters (Estonia) has broadened its range of supported activities and now offers more training to 
future managers of clusters and participating enterprises before applying for funding; these adjustments were made 
in light of the results of the interim evaluations of the cluster programme. The changes also include the increase of the 
level of self-financing and the inclusion of a reference to the group exemption regulation as part of the regulation for the 
development of clusters. 

ICDK (Denmark) has moved to a greater emphasis on the promotion of the measure, advertising events and ministries 
contacting companies in Denmark, and has also enhanced  collaboration with the Trade Council, focusing on specific 
projects with innovation-related services. This change reflects the response to the external evaluation conducted in 
2015, which showed a lack of home-based support and visibility of the ICDKs in Denmark.

Following the results of its monitoring and evaluation, Communication Support (Belgium) reduced the administrative 
burden for participants. Instead of submitting all the invoices and receipts relating to communication activities for 
funding, participants use a proof of payment system. The administrating authority periodically examines a sample of 
30% of the companies; these enterprises are asked for their receipts and proof of payments. 

Similarly, following the 2012–2015 evaluation, as of 2017, Germany’s BMWi has simplified the definition and 
categorisation of some types of events, extended the briefings for promoters before starting the events and introduced 
the possibility of continual submission of proposals instead of setting submission deadlines. This enhances flexibility 
and efficiency for participants while reducing the administrative burden. 

In response to the participants’ feedback on the programme, DHI (Netherlands) modified its application process by 
turning it into a tendering system, in addition to enabling SMEs to submit applications twice a year. Even though there 
is no clear evidence of how far the change has responded to the results of the monitoring and evaluation, this has 
significantly helped to reduce administration burdens in the above measures.

or government-backed programmes, such as OTE (UK), 
the IP Attaché Network (UK), and BMWi (Germany). In 
other cases, evaluation was conducted in the form of 
self-completion questionnaires to obtain participants’ 
feedback, such as VITUS (Denmark) and Communication 
Support (Belgium), or just conducted internally. In 
other cases, evaluations are available but they refer to 
general internationalisation policies rather than a specific 
measure. This can be seen in the case of RIT (Japan), 
where no formal specific evaluation was conducted, but 
it was included as part of the evaluation of SME support 

activities by JETRO (Small and Medium Enterprise Agency, 
2016). 

Since the monitoring and evaluation within the examined 
policy measures remains limited, very little evidence of 
any changes following the monitoring and evaluation can 
be gleaned. 

3.2.11.  Relevance to SMEs and born globals
Many of the analysed measures explicitly address the 
various challenges specific to SME internationalisation, 

46

Born globals and their value chainssuch as access to finance, skills and market knowledge 
or enhancing the business environment for foreign 
investment. In addition, a number of measures directly 
or indirectly assist SMEs in overcoming some of the 
less tangible challenges they face when seeking to 
internationalise, such as smallness and ‘foreignness’. 

The problem of ‘foreignness’, that is, being perceived as 
coming from an unfamiliar culture, might be a particular 
stumbling block for SMEs from certain countries. Hence, 
measures such as those taken by the CCIR (Romania) 
have sought to address this issue by actively raising the 
profile of the country in question in international markets. 
Other measures, such as 100% Made in Italy (Italy), have 
turned ‘foreignness’ into a major marketing asset. Using 
geography as a brand, 100% Made in Italy is a collective 
trademark that communicates the established values 
of its country of origin (quality, artistry and prestige). 
Thus, it has managed to turn the geographical origin 
of products and SMEs bearing the 100% Made in Italy 
label into a unique selling point. This certification helps 
companies, and especially SMEs, to reduce the information 
gaps of potential foreign buyers, giving them additional 
credibility in international markets as well as facilitating 
the marketing of their own company or product. As a 
result, there has been an increasing interest on the part of 
buyers and distributors in foreign countries in establishing 
potential partnerships with 100% Made in Italy suppliers.

One of the key factors that contribute to a measure’s 
relevance to SMEs is the way it targets their specific needs. 
However, the support needs of businesses of different 
sizes vary within the SME population. For example, the 
needs of medium-sized businesses in seeking access to 
and developing foreign markets differ from those of micro 
and small enterprises. Targeting enables policymakers to 
assist SMEs in a focused, situation-specific way. As shown 
in the previous section, some measures target only specific 
groups of SMEs. In many instances, this kind of approach 
helps the measures address the above-mentioned 
internationalisation challenges faced by SMEs more 
effectively. 

The majority of measures focus on businesses engaged in, 
or aiming to engage in, some form of internationalisation, 
without explicitly targeting born globals. However, this does 
not mean that born globals are excluded from support. 
One of the analysed measures, Born Global (Sweden), 
specifically targets born globals. Nevertheless, in line with 
the previous consideration of firm size, one may wonder 
whether general SME internationalisation instruments 
satisfy the specific support needs of born globals. 

3.2.12.  Evidence of outcomes and impact
Overall, although policymakers talk a lot about 
evidence-based policy, this study shows that objective 
policy outcomes and impacts are difficult to ascertain. 
The majority of the investigated measures show little 
information regarding the evaluation of their impacts 
on the beneficiaries and the economy. Out of the 28 
measures covered here, 18  either involve no evaluation 
or the information is not publicly available. A minority of 
measures, on the other hand, do provide clear evidence 
of their impact. For example, one of the outcomes of the 

Policy measures supporting born globals and SMEs in their global value chains 

International Mobility Law (Spain) has been an increase in 
the number of foreign nationals linked to the attraction of 
talent in organisations or companies established in Spain. 
The ‘researchers’ category of the law has witnessed a year-
on-year increase of 266%, whereas the ‘highly qualified 
professionals’ category and intra-corporate transfers 
increased by 230% and 66% between September 2013 and 
December 2014. 

Another measure that has provided impact information 
is Born Global (Sweden), consisting of its participants’ 
claim to have learned to improve the distinction between 
pitching themselves to customers and investors, as 
well as improving their sales psychology and revenue 
model skills. Apart from the personal development 
value, the measure has also had a positive impact on the 
performance of the participating businesses. According 
to the 2015 performance analysis report, 10 out of 77 
participating companies had at that point expanded their 
business physically overseas since participating in Born 
Global (Sweden). An additional half-dozen companies 
had secured funding from either international investors 
or Swedish investors based overseas. In addition, many 
participating companies reported an increase in revenue. 

The visibility of the outcomes is related to the age of the 
measure. For example, Incubator Support (Australia) does 
not report any clear evidence of its impact, mainly because 
it is in the early stages of implementation and no impact 
on the beneficiaries and other actors can be observed as 
yet.  Similarly, GVK has no evidence of outcomes due to 
the young age of the measure. However, older measures 
do not necessarily demonstrate clear impact either, such 
as Startup Estonia which is over 10 years old. 

Other measures such as Development of Clusters 
(Estonia), ICEX Next (Spain), the IP Attaché Network (UK), 
RIT (Japan), the Foreign Investment Ombudsman (Korea) 
and BMWi (Germany) provided evidence of clearer and 
more specific outcomes. The limited information about 
outcomes and impact of the investigated measures are 
described in Table 10.

3.2.13.  Success factors and challenges
Success factors can be defined as the characteristics of 
a measure that have a positive impact on beneficiaries 
as well as the economy and society as a whole. Success 
factors vary amongst the investigated measures, including, 
for example, the integration of service provision, 
the tailoring of services to different groups of SMEs, 
comprehensive packages that address different stages of 
internationalisation, cross-institutional partnership and 
the reduced administrative burden on the operators of the 
measures. 

Those measures providing integrated services, especially 
those facilitating access to finance and networking, 
are more beneficial for SMEs and born globals. These 
measures can also be seen to have a clearer impact 
on the performance and development of SMEs’ 
internationalisation activities. This can be discerned in 
Development of Clusters (Estonia), which helped SMEs 
to achieve broader cooperation, increased international 
competitiveness and firm development during 2013–2015. 

47

Table 10: Summary of outcomes and impact of the 28 investigated measures

Measure

Outcomes (number of firms 
assisted)

Budget available and used (last year)

Impact

Incubator Support 
(Australia)

By the end of April 2017, 
there were fewer than 50 
applicants.

The programme budget is AUD 
23 million (€14.14 million) during 
2016–2019. No evidence of spending is 
publicly available.

No information available.

Go Silicon Valley 
(Austria)

Twenty of these companies 
established a branch, joint 
venture or subsidiary in 
the USA. Eight companies 
received investment, mainly 
by US investors.

No information available.

The measure has an impact on the 
organisational learning and mindset 
of participating companies. For 
example, the measure has enabled 
participating firms to develop 
new products in a more open 
and collaborative way, expanding 
networks and contacts as well as 
strengthening company cooperation 
within the US market.

Communication Support constitutes 
only a small portion of the total 
budget of AWEX. The annual budget 
for Communication Support varies 
depending on how much AWEX 
decides to assign to this measure. 

In 2016, AWEX spent €1.5 million on 
this measure.

The measure has supported start-
ups in receiving more funding 
and researching more foreign 
customers.

Every €1 AWEX invested brought 
back €7 to the Walloon region, but 
this also includes other measures 
delivered by AWEX.

The budget for ICDK during 2015-
2017 is € 4.42 million. There is no 
information about the accumulative 
budget from 2006 to 2017.

Due to the decision to establish 
six new ICDKs, total spending has 
increased in terms of the money 
derived from the Danish fiscal budget 
for 2006–2017 and in terms of the 
number of employees. 

The total budget for a period of four 
years is approximately €3.1 million, 
50% of which was funded by the 
European Social Fund, 0.11% was self-
funded and the rest was raised from 
participating SMEs.

There is no evidence of last year’s 
spending, but the budget is often 
balanced when the measure ends.

Regarding the evolution of the 
measure’s spending, the annual 
financial amount reserved for 
VITUS has remained constant at 
approximately €0.8 million since 2010. 
However, the general budget for 2016 
proposed a significant cut. No further 
details regarding the budget spending 
were found.

ICDK has successfully linked Danish 
enterprises with their new partners, 
cutting-edge research or access to 
R&D resources in foreign markets. 

ICDK has also established 
partnerships and collaborations 
with different types of actors in 
the markets, as well as engaged in 
R&D and innovation systems with 
national and regional governments, 
research and education institutions, 
business clusters and business 
associations. 

No information available.

Companies participating in the first 
six rounds of VITUS perform better 
than Danish exporting companies in 
general in terms of growth, turnover, 
export and number of employees.

The total export contribution of 
VITUS-participating companies 
amounts to €80 million overall and 
the total value added was €111 
million from 2010, the year of the 
programme’s launch, to 2013.

Communication 
Support (Belgium)

During 2016, 500 applications 
were accepted.

ICDK (Denmark)

The measure has supported 
52 clients in Silicon Valley, 107 
in Shanghai, 36 in Munich, 12 
in New Delhi/Bangalore, 9 in 
São Paulo and 37 in Seoul.

GVK (Denmark)

No information available.

VITUS (Denmark)

There are no public data on 
the number of firms assisted. 
However, the companies are 
generally highly satisfied 
with the outcomes of their 
participation. 

48

Born globals and their value chainsPolicy measures supporting born globals and SMEs in their global value chains 

Table 10: Continued

Measure

Outcomes (number of firms 
assisted)

Budget available and used (last year)

Impact

Development of 
Clusters (Estonia)

During 2009–2014, the 
measure supported the 
development of 25 clusters 
with €9.9 million. 

The measure reached 350 
enterprises, 6 clusters were 
supported twice and 24 out 
of 25 clusters achieved the 
planned targets and expected 
outcomes. 

During 2009–2013, there was an 
incremental increase in the annual 
budget from €4.5 million in 2009 to 
€11 million in 2013.

There was no information about the 
evolution of spending. 

However, as of the beginning of 2017, 
€4.5 million was left in the budget (for 
the period 2014–2020).

Statistics on the number of 
firms assisted are not publicly 
available. However, the 
targets in general (according 
to the interviewee) were 
perceived as achievable 
(for example, the outcome 
indicator ‘number of 
potential and active start-up 
enterprises’, the target value 
for 2023, had been achieved 
by April 2017).

The planned financial resources of the 
budget during 2007–2013 were spent 
in full. During 2015–2018, the planned 
annual budget was €1.16 million and 
adjusted depending on the expected 
cost of activities. For example: €1.183 
million (in 2016), €1.208 million (in 
2017),  €2.808 million (in 2018) and 
€0.975 million (in 2019).

In 2016, the budget was underspent 
(the spending was just over €600,000) 
because of delays in procurements.

Startup Estonia 
(Estonia)

Start Alliance 
(Germany)

BMWi (Germany)

The estimated number of 
group missions in 2017 is 10. 
In 2016, there were five group 
missions.

No information about the 
number of firms assisted was 
given.

On average, 1,200 SMEs per 
year have been participating 
in the events organised by 
BMWi. In 2016, about 15% of 
participating companies used 
more than one event. The 
number of events organised 
in 2016 was 102, covering 71 
different target countries.

FINEST SpA (Italy)

No information available.

100% Made in Italy 
(Italy)

No information available.

No information available.

The budget varies between €4 million 
and €5 million per year.

During 2015–2016, FINEST SpA 
invested €15.386 million, of which  
€8.521 million was on equity and 
€6.865 million was on other financial 
products.

No evidence of spending was found. 

However, the budget is funded by 
the certified companies that pay an 
annual fee of €1,700.

The main impact of the measure 
on the beneficiaries is wider 
cooperation (42% of respondents 
in 2013 and 38% in 2015), more 
contacts (26% of respondents 
in 2013 and 15.2% in 2015) 
and increased international 
competitiveness (11% of 
respondents in 2013 and 17.7% in 
2015). 

Overall, 88% of respondents in 2013 
and 89% in 2015 showed that their 
companies’ contacts increased and 
more than half of them found the 
participation contributed to their 
firm’s development.

No information available.

80% of participants confirmed the 
learning effect. The exchanges are 
a test bed for the products and 
services of the participating start-
ups. They learn what to improve 
to make their products more 
successful and match the market. 
Concrete, tangible cooperation 
emerges for approximately 10% of 
participants.

The measure has an impact 
on beneficiaries in terms of 
information, networking, business 
effects (for example, enquiries from 
the target countries) and export 
effects (21% of participants have 
additional export sales, which is 
estimated at €37 million in 2015 and 
€116,000 per participating firm).

No information available.

No information available.

(Continued)

49

Table 10: Continued

Measure

Outcomes (number of firms 
assisted)

Budget available and used (last year)

Impact

SMEs’ CEO 
Network 
Enhancing Project 
(Japan)

The measures supported 56 
projects, with a total of 10,285 
business meetings from 2012 
to 2016.

The annual budget was about €1.8 
million (as of 2017) and SME support 
covers 75–80% of the total, whereas 
the rest is covered by counterpart 
organisations from partner countries.

No clear impact. However, according 
to the interviewee, the measure has 
helped to provide Japanese SMEs 
with more chances for business 
meetings with SMEs from south-east 
Asia.

RIT (Japan)

Investment 
Ombudsman 
(Korea)

Foreign Investment 
and One Window 
Policy (Nepal)

On average, RIT sponsors 15 
international projects annually. 

During 2014–2016, JETRO 
supported international 
cooperation between 
Japanese regions and 13 
regions of the EU countries, 
and 5 in Asia. 

This measure supported 462 
cases. For example, 12% of 
cases were related to the 
investment system, 11% to 
investment incentives and 
11% to taxation.

Permission to establish was 
granted to 955 industrial 
projects on a joint venture 
basis and/or 100% foreign 
investment.

Through the measure, Nepal 
has registered, up until 2016, 
399 foreign investment 
projects with an overall 
value of NPR 53.3 billion 
(approximately €390 million).

DHI (Netherlands)

In 2016, there were 357 
applications, but only 101 
met the criteria and were 
entitled to receive the grants 
(28%).

Matchmaking 
Facility 
(Netherlands)

During 2007–2009, 
€1.3 million was spent and 
277 applicants approved, 
for which 174 matches were 
found.

50

It has enabled the clusters to 
enhance their capacity and 
capabilities in new product 
development, technical 
cooperation, market expansion and 
accelerating international activities 
such as R&D and joint ventures.

No information available.

No information available.

No information available.

Employment opportunities were 
generated by the FDI inflows, with 
over 40,000 people employed 
between 2011 and 2014.

The available budget for 2016 was 
€5 million for activities in emerging 
markets and €4 million for activities in 
developed countries. 

In 2017, the budget for activities in 
developed countries was reduced by 
50% but the budget for activities in 
emerging markets was increased to 
€7.5 million.

However, there was no evidence of 
actual spending in 2016.

Budget information is available only 
for 2007–2009. 

The total budget in 2009 was 
€859,035, 86.5% of which was spent.

In 2008, the total budget was €715,008, 
of which only 58.3% was spent 

In 2007, only a third of the allocated 
budget was actually spent.

Actual spending was always lower 
than the allocated budget because 
fewer applications than projected 
were received.

No information available.

No information available.

Born globals and their value chainsPolicy measures supporting born globals and SMEs in their global value chains 

Table 10: Continued

Measure

Outcomes (number of firms 
assisted)

CCIR (Romania)

No information available.

Global Lehian 
(Spain)

ICEX Next (Spain)

In 2016, 255 companies 
and cooperating partners 
benefited from the 
programme.

In 2015, 465 companies were 
supported.

Between 2012 and 2016, 
a total of 1,869 SMEs were 
supported.

40% of the beneficiary SMEs 
are engaged in industrial/
technology-based products, 
31% in tertiary activities, 
16% in consumption goods 
production and 13% in agro-
food products.

Budget available and used (last year)

Impact

In 2016, the allocated budget was 
€5.6 million, the same as in 2014 and 
2015. The actual amount spent in 
2016 was €4.4 million because of a 
decline in the number of applications.

No information available.

There is no evidence of the budget 
used in 2016.

The annual budget in 2015 was €4.5 
million and €4 million in 2014.

The firms which benefited from the 
measure in 2012 and 2013 increased 
their export volume by 50% within a 
period of less than three years.

STC (Spain)

The measure has supported 
500 Spanish companies in 
2011–2017.

No information available.

International 
Mobility Law 
(Spain)

The quantitative outcomes 
of the measure for the period 
September 2013 to January 
2017 include:

- 

- 

- 

- 

- 

Investors: 2,346 visas 
issued

Entrepreneurs: 303 
permits granted

Highly qualified 
professionals: 5,448 
permits provided

Researchers: 1,511 
permits provided

Intra-corporate transfers: 
3,602 permits granted

No information available.

Born Global 
(Sweden)

By the end of 2016, the 
programme had supported 77 
participating companies.

The three-year budget for this 
programme is about €1.5 to €2.1 
million and there is no significant 
change in annual spending.

HVO (UK)

No information available.

83% of the companies participating 
in this programme have US 
customers, and 43% have opened 
an office in the USA. 

80% of participants continued 
to have a link to the US market 
after completing the Immersion 
Programme.

The General Secretary of 
Immigration and Emigration 
belonging to the Spanish Ministry 
of Employment and Social Security 
estimated that the value of the 
investment received from all 
categories was up to €694 million 
and 33,529 new jobs were created.

The beneficiaries claimed to 
have learned to improve pitching 
themselves to customers and 
investors, to improve revenue 
models, to expand sales and 
operations internationally, 
networking and experience 
sharing.

(Continued)

51

Table 10: Continued

Measure

Outcomes (number of firms 
assisted)

Budget available and used (last year)

Impact

IP Attaché Network 
(UK)

During 2012–2017, the IPO 
assisted 20,653 UK businesses 
and helped to protect British 
intellectual property across 
the globe worth an estimated 
€521 million.

In 2015 alone, the measure 
provided one-to-one 
consultancy to over 200 firms 
and protected businesses’ 
IPRs worth in excess of €55 
million.

There have been no significant 
changes in budget over time. 

In 2016, the IPO spent 95% of the 
planned budget.

OTE (UK)

The number of supported 
firms increased from 6,194 in 
2012 to 14,000 in 2017.

There was no evidence of the budget. 
However, the budget allocated for 
2017 is approximately half of that for 
2016.

The measure has contributed to 
raising awareness of IPRs and 
providing consultancy on IPR 
protection for UK businesses 
operating in emerging markets 
including Brazil, China, India and 
south-east Asia. 

80% of the businesses found the 
measure valuable. 

No clear evidence of impact of this 
measure was provided. However, 
there are some successful case 
studies that demonstrate how OTE 
supported SMEs via the Export 
Action Plan, for example, by 
enhancing the firm’s marketing and 
export strategies to enter a new 
market.

Startup Global 
(USA)

Eight seminars have been 
organised so far. Each event 
attracted between 50 and 100 
participants.

Source: Authors’ own elaboration

No information available.

Similarly, ICEX Next (Spain) helps the firms benefiting from 
it in 2012–2013 to increase their export volume by 50% 
within a period of less than three years. 
As observed both in the literature and in the case 
studies analysed, networking support is critical to most 
internationalising SMEs’ ability to overcome the liability 
of smallness, particularly for born globals whose business 
models are mainly based on networks. Examples of this 
are BMWi (Germany) and VITUS (Denmark). 
In addition, tailor-made, individualised support, taking 
into consideration the specific needs of particular types of 
SMEs within the SME population appears to be important. 
One factor in the success of the BMWi measure (Germany) 
was said to be its different standardised modules, which 
aimed to meet companies’ needs in different phases 
or stages of market development, including providing 
information on the market, exploring the market and, 
finally, establishing concrete contact with clients in 
foreign markets. Tailored support is offered in different 
events considering the specific needs and circumstances 
of specific industries, and different amounts of financial 
contribution are requested in accordance with firm size. 
Similarly, one of the success factors of GVK (Denmark) 
relates to its ability to customise competence-building 
activities to match participants’ international strategies 
and export goals. 

Comprehensive packages offer solutions to the various 
challenges of born globals by offering a combination 
of different support activities at different stages of 

52

internationalisation. This can be seen in the case of Global 
Lehian (Spain), which spans support that is tailored to the 
different stages of internationalisation.

Some measures are based on ‘real business needs’ and 
offer flexibility for SMEs or born globals to adapt as they 
are designed or updated following surveys amongst the 
SME community. For example, Startup Estonia does not 
provide a package of fixed activities; rather, its offering 
can be changed to reflect the individual start-up’s needs. 
This is also strengthened by ongoing communication with 
the start-up community to exchange feedback on Startup 
Estonia’s activities. A key success factor for Start Alliance 
(Germany) is its focus on mutuality and reciprocity. In this 
sense, one city offers assistance and support services to 
foreign start-ups in exchange for similar assistance and 
support provided by another city. The exchange missions 
are organised by local partners in the receiving city, using 
all their knowledge of the local ecosystem, rather than by 
support organisations in the sending city. Another example 
is Incubator Support (Australia), which has a high level of 
flexibility and provides tailored advice through incubators’ 
various services, such as mentoring and the component 
of ‘Expert-in-Residence’ (for example, engaging a national 
or international expert who is knowledgeable in start-
up-related technology and international experience to 
assist start-ups’ key challenges during their period in the 
incubator).

Cross-institutional partnerships were found in the 
design and implementation of several of the instruments 

Born globals and their value chainsinvestigated here. This enables the creation of synergies 
in terms of knowledge and expertise from both public and 
private shareholders, and from different perspectives, 
to attract SMEs or born globals. FINEST SpA (Italy), for 
example, involves a number of shareholders including 
Friulia group (the regional financial institution), Veneto 
Sviluppo (a financial institution in the Veneto region), 
private banking institutions, SIMEST SpA (a corporation) 
and the Trento provincial authority, which helps to share 
expertise in operation, promotion and administration. In 
addition, the private component of FINEST SpA makes 
the programme more attractive by emphasising its 
profit-oriented and flexible approach to help SMEs adapt 
to the new market challenges in order to maintain their 
competitive edge. Another example is OTE (UK), which 
involves the UK Department for International Trade, the 
Federation of Small Businesses and the Institute of Export 
and International Trade, which form a team of experts 
to support SMEs with helpful advice, information and 
export planning, as well as helping them to liaise with 
useful networks and utilise the financial grant for export 
promotion and marketing. 

The online services offered by several measures such 
as OTE (UK) save the participants time and money. This 
programme also enables a broader range of participants 
by using social networks, with a lower bureaucratic 
burden. 

Some investigated measures experience a number of 
challenges in administration and implementation. Some of 
the measures that involve stakeholders from both public 
and private organisations show a lack of coordination and 
communication between these parties. This may create 
potential conflicts between implementers, administrators 
and initiators in terms of how to achieve the objectives 
and targets of the measure. For example, the STC (Spain) 
measure was traditionally supported by a public–private 
partnership between ICEX, Red.es and Santander Bank, 
where the roles and responsibilities of each partner 
were regulated by a formal agreement between the 
three parties. Despite the advantage of having combined 
resources from different organisations, the measure 
experienced some difficulties in brokering agreements 
between them. Since 2017, the measure has been run 
solely by ICEX and Red.es due to the voluntary withdrawal 
of Santander Bank. 

The administrative burden is still perceived as a common 
weakness in most measures. For example, grantees 
criticise the administrative burden involved in the 
Development of Clusters measure (Estonia), such as 
proving the eligibility of occurring costs, the complexity 
of expenditure certification, the bureaucratic reporting 
format and the requirement to follow public procurement 
procedures.

The majority of the measures studied did not show a 
transparent budget or information on how this was spent 
over time, or how the resources were utilised for the 
measure. Furthermore, the bulk of measures were unable 
to show a systematic, formal monitoring and evaluation 
framework. This was found to be associated with the 
absence of specified targets and objectives. This stifles 
evidence-based improvements or development.

Policy measures supporting born globals and SMEs in their global value chains 

Finally, a lack of resources and funding remains a 
challenge for most measures, such as OTE (UK). This 
restricts its ability to expand the range of support 
activities, as well as impedes any follow-up on the 
progress of beneficiaries who participated in the 
programme. 

3.2.14.  Policy transfer
The most common type of policy transfer is ‘scaling up’, 
or horizontal transfer, a method that involves expanding 
the existing initiative demographically or geographically 
(Blackburn et al, 2007; Blackburn and Smallbone, 2009). 
This is also the simplest form of policy transfer, since its 
implementation does not require significant changes in 
the operation or targeting of the programme. Examples of 
successful horizontal transfer can be found amongst the 
analysed measures. Start Alliance (Germany) started out 
by organising its first networking event for start-ups in Tel 
Aviv in 2015. Since then, it has expanded its programme to 
other major cities identified as technology hubs, including 
New York, Paris and London. The measure further enlarged 
its network of participating cities, with Beijing, Dubai, 
Vienna and Warsaw (in 2018). Another example is the 
ICDK centre (Denmark), which was initially developed in 
Silicon Valley in 2006, then followed by another centre 
in Shanghai in 2007, in Munich in 2008, in New Delhi/
Bangalore, São Paulo and Seoul in 2013 and in Tel Aviv 
in 2016. By opening in multiple locations, ICDK has the 
benefit of simultaneously being geographically widely 
distributed and locally consolidated, connecting business, 
innovation and research, which allows for new synergies 
and partnerships. 

An application of the seconding staff method, arguably 
one of the least disruptive types of policy transfer, can be 
found in the Matchmaking Facility (Netherlands). This 
measure employs a number of freelance consultants 
who provide expert help in developing and delivering the 
programme to its partners in targeted geographical areas, 
which includes enterprises from 68 developing countries. 
The success of this system suggests that target-specific 
tasks can be efficiently outsourced to external associates 
with expertise in the relevant target areas.

One of the keys to successful policy transfer is the selection 
of adequate targets in the targeted domain (Mulgan and 
Albury, 2003). For example, if a certain measure was 
originally aimed at assisting businesses in a particular 
sector, it follows that the chances of success of the policy’s 
transfer to a different country would at least partly depend 
on whether the transferred policy is oriented towards 
companies of the same sector in the target country, or 
whether the sector-based criteria have been modified, or 
even discarded, within the context of the target country. 
Similarly, if the original policy targets companies at a 
certain stage of internationalisation (for example, start-
ups), it is likely that the measure’s transferability would 
have a greater chance of success if the focus were retained 
in the target country as well.

Another factor that may contribute to the achievability 
of policy transfer is the measure’s flexibility. Some of 
the surveyed measures have shown flexibility in terms 
of application and delivery and are, therefore, perhaps 

53

easier to transfer into different contexts. For example, 
Communication Support (Belgium) provides a subsidy 
to businesses at various stages of internationalisation 
in order to help them develop their communication 
activities. Once an enterprise has received the subsidy, it 
can use it however it sees fit in order to finance whichever 
type of communication channel it wishes to develop 
according to its requirements.

Those measures that were transferred from previous 
schemes, or were complementary to a range of supporting 
activities, were found to be easier to transfer as a result of 
policy learning. Scale Global (Sweden), for example, was 
set up in 2017 after its predecessor, Born Global (Sweden), 

was discontinued. The new policy has been adjusted in 
order to correct the shortcomings identified through the 
application of its predecessor.

However, even when transferable initiatives are identified, 
the replication of a successful initiative into a different 
context may not be straightforward. Where policy transfer 
involves new staff and/or organisations other than those 
responsible for developing and implementing the original 
policy, there may be challenges related to the expertise and 
commitment of the new staff and/or organisations. Therefore, 
it is important to ensure the continued involvement of the 
original champions of the initiative to help combat this 
challenge (Blackburn and Smallbone, 2009).

54

Born globals and their value chains4  Conclusions and lessons learned 

4.1.  Key findings from the born 

global case studies 

4.1.1.  Main characteristics of the born globals 

analysed

Most of the analysed born global enterprises are located in 
urban but, with two exceptions, not central metropolitan 
areas. They tend to have a strong geographical attachment 
and their main headquarters are, in most cases, located in 
the city or urban area where they were originally set up. A 
large proportion of these enterprises also have a number 
of additional premises, sometimes located in the same 
country of origin but also abroad. 

Most businesses were launched when the founder(s) 
identified a business opportunity through their personal 
or professional experience that they felt had not yet been 
fully exploited in the market. The products or services 
provided by the born globals chosen for this study are 
highly innovative, representing new products with added 
properties in their respective markets. Some of these 
companies devote a relatively large number of resources 
to R&D activities, often resulting in the development of 
patents and IPR protection.

All the case studies are involved in B2B relationships. The 
available data show a positive evolution in turnover in 
recent years, coupled with strong prospects for the future. 
The born globals are usually small (fewer than 50 
employees) or, less frequently, medium-sized (50–249 
employees). Understandably, medium-sized firms are 
characterised by more complex management structures. 
Born globals’ employees are highly educated, with 
backgrounds that match their specialisation. It is also 
interesting to note that the workforce of some enterprises 
is very international and usually young, with international 
work experience and an ability to speak foreign languages.

In the born globals studied here, the founders are usually 
a group of co-founders who have known each other for a 
long time and decided to set up the company together. 
The founders consider previous work experience and 
relationships acquired through their professional networks 
to be very helpful in setting up and expanding their born 
globals, particularly in international markets.

In approximately half of the born global cases, the 
company belongs fully to its founding members (though 
they do not necessarily have an equal stake in it). In the 
other half of cases, company ownership is shared between 
the company founders and other actors, such as external 
public and/or private investors or employees. These 
external investors usually bring expertise and specific 
knowledge to the company or strengthen its portfolio.

Most of the born globals have a business plan which 
sets out international business targets and how they 
intend to meet them. These business plans are drafted 
by the company founders or CEOs alone or with others 

(key company members and collaborators or external 
enterprise support organisations) and updated regularly 
to keep up with changes in the market and with clients’ 
needs. 

4.1.2. 

Internationalisation activities of the 
born globals analysed

Most of the born globals started their internationalisation 
activities at set-up or very soon afterwards. The majority of 
them refer to the small size of their national markets as a 
key reason to go international in order to ensure business 
viability (‘necessity-driven’), although there are also some 
examples of ‘opportunity-driven’ internationalisation, 
linked to ambitious market strategies, or the notion that 
the world is the natural marketplace for their company.

The selected born globals are actively engaged in different 
types of internationalisation activities, often consisting 
of commercial cooperation (either with a network of 
international distributors or retailers), direct exporting, 
international subcontracting, international R&D and/or 
technical cooperation. Less common activities include 
the establishment of international joint ventures, the 
presence of international investors within the company 
or foreign investment. In most cases, several modes of 
internationalisation are undertaken simultaneously.

All the born globals agree that internationalisation plays 
a very important role in their businesses. Some are 
particularly active in European countries, whereas in other 
cases non-European markets are the main destination of 
their international sales. These geographical footprints are 
influenced by previous networking contacts as well as the 
identification of market opportunities.

4.1.3.  Global value chains of born globals 
The born globals in the sample either act as suppliers of 
specialised products or services or are responsible for the 
design and/or product development, production and/or 
distribution and commercialisation of their own product 
portfolio, and have international partners to support their 
own value chains. 

GVC partners may act as specialised suppliers to the 
born globals (of components, raw materials, specialised 
manufacturing equipment, specialised technological/
innovation-related knowledge and services), distribution 
and commercialisation partners for the born global’s 
products and/or jointly responsible partners for the 
co-production and joint development of some specific 
products. They also act as financing partners in a few 
cases.

In some cases, this cooperation is initiated by the born 
global itself, based on its founder’s or founders’ own 
knowledge and personal contacts. In other cases, the 
born global is the one interested in finding a suitable 
partner and requests the collaboration of a third 
party. Alternatively, cooperation can be initiated on an 
‘unintended’ basis (for instance, key persons meet by 

55

chance at an event). Finally, there are some cases where 
the value chain partner contacts the born global to initiate 
a possible line of cooperation. Once the companies have 
made contact with one another, the agreement to start 
collaborating does not usually take long to be set up.

Born globals initiate international cooperation for a 
number of reasons. These include a lack of suitable 
cooperation partners at the national level, access to 
new markets and business opportunities and access to 
specialised know-how and technology. 

Only a few relationships between born globals and GVC 
partners are based on formal cooperation agreements. 
In most cases, cooperation is primarily based on a 
commercial client–supplier relationship. In a minority 
of cases, this cooperation is formalised through a 
conventional purchasing agreement. Finally, there are 
examples of cooperation that can be labelled as informal 
and not based on any specific commercial relationship. 
In all cases, the relationship is usually dominated by the 
more influential or less replaceable partner.

Logistics services and ICT-based communications play 
a very important role in sustaining the cooperation 
between the GVC partners, at all stages in the process. 
However, face-to-face meetings still play a key role in 
initiating, sustaining and deepening business relationships 
between value chain partners. Trust between individuals 
is a decisive factor in sustaining successful cooperation 
amongst companies.

Significant positive outcomes can be derived from the 
existing business relationships for both parties (win-win 
situations) including economic, production-related and 
knowledge-/learning-related results as well as reputational 
and employment effects. 

4.1.4.  Main obstacles to internationalisation 
and international cooperation and the 
solutions adopted

The born globals studied here and their GVC partners 
identify several company-external obstacles to engaging 
in international activities. Some of these are related to the 
target countries (be they EU or non-EU countries), such as 
local regulations and laws, special national certification 
and product or technical requirements, and differences 
in payment practices. Additional difficulties associated 
with operating in non-EU Member States include customs-
related issues (including additional customs checks, 
delays in the supply or extra duties) and the lack of fair 
competition in some countries or sectors. 

In other cases, these external challenges are related to 
the features of the country of origin, such as difficulties in 
accessing external capital and finance on good terms and 
conditions, a poor national image, the national support 
structure and difficult internal political situations, often 
resulting in significant uncertainty (most recently, for 
example, Brexit).

Other company-external challenges mentioned include 
finding clients and suitable teams with the right abilities 
and knowledge to collaborate with, the large amount 
of time needed to build trust and establish good 

56

relationships amongst partners and large geographical or 
time zone distances. 

The typically small size of the born globals amplifies these 
external obstacles, resulting in limited available financial 
resources, negotiation possibilities or human capital 
resources (company-internal challenges).

These obstacles were not considered insurmountable, 
however, and many of the born globals and their value 
chain partners were able to adopt solutions to overcome 
them (see Table 11).

4.1.5.  External sources of support for born 

globals and their value chain partners

Analysed born globals and their GVC partners identify 
two main areas where they need external support. The 
first area refers to external capital, which needs to be 
raised and accessed while initiating and expanding 
the business. A second area consists of specialised 
assistance and advice on a number of subjects, including 
internationalisation. 

Most of the born globals show a high capacity to use 
different sources of external support (including prizes and 
business competition) for a variety of purposes (such as 
raising capital and access to finance, R&D and IPR activities 
and other product-/service-related activities). This external 
support is positively valued by most of the analysed 
born globals, especially in areas not exclusively related 
to internationalisation support (such as R&D, access to 
finance, new premises support). Some of the interviewed 
born globals particularly appreciate the existing public 
and private support in their local area or region. The types 
of support deemed particularly useful include business 
networking events (conferences, trade fairs, business clubs 
and business accelerators) as well as prizes and business 
competitions that increase the visibility and reputation of 
the born globals amongst private investors.

In contrast, several analysed born globals strongly 
criticised the existing national or regional support 
system. Specific problems raised were a lack of suitable 
instruments, a lack of information or promotion of the 
already existing instruments, the amount of paperwork 
involved in applying for support coupled with a lack of 
practical support on how to fill in the many documents 
needed for a support application, and the slow responses 
on the part of the national support authorities.

4.2.  Support instruments 

addressing the challenges 
of internationalisation and 
international cooperation

This subsection discusses the barriers identified 
by born globals and their GVC partners for their 
internationalisation activities and the solutions offered in 
the investigated policy measures. 

4.2.1.  Barrier 1: Access to finance
Access to external finance is seen as one of the main 
challenges for SME internationalisation in both EU and 

Born globals and their value chainsConclusions and lessons learned 

Table 11: Examples of challenges to internationalisation and international cooperation and solutions applied by 
born globals and their global value chain partners 

Challenges

Solutions applied

Complex local regulations and laws, 
administrative difficulties (customs 
issues)

  Use support by specialised law firms

  Adapt contracts to different national practices

  Establish distribution agreements with local distributors

Exchange rate fluctuations

Certification and product 
requirements

  Set up a branch in the target market

  Hedge foreign exchange

  Concentrate on countries with strong currencies

  Carefully follow certification requirements to ensure certification when needed

  Manufacture products which meet the most common standards and adapt them 

to different markets 

Technical barriers

  Adapt the product to the technical conditions of the target country

Business-culture-related differences

  Have a good command of local languages and local culture to facilitate local 

  Have a strong local partner

business

  Join national or international networks

Difficulties finding clients and 
suitable teams to collaborate with, 
becoming known in the market 
and establishing long-standing 
relationships with collaborators 

  Show certifications and prizes to increase reputation and build trust

  Participate in international events and relevant international fairs and 

exhibitions

  Develop powerful websites and online selling facilities to enable international 

sales

  Benefit from word-of-mouth advertising via value chain partners

  Set the precise criteria for the partner

Difficulties in their relationships with 
key partners (such as problems with 
advance payment)

  Devote time to negotiation processes

  Take out insurance to avoid risks

Tough competition from low-cost 
manufacturers

  Focus on the quality of the product

  Offer value-added or additional services to customers

  Apply different forms of ICT-based communications

Geographical distance

  Foster employees’ flexibility

 

Improve or streamline relations between partners

Difficulties accessing financial 
support 

Negative image of the country of 
origin

  Look for investors and business angels

  Set up headquarters in another country

 

Increase prices

Uncertainty and risks

  Diversify destination markets

  Elaborate contingency plans

  Hire new staff to cover these needs

Lack of required skills on the part 
of employees, lack of willingness to 
move abroad

 

Improve staff’s skills, particularly in terms of language competencies

  Adopt smart management of human resources to reduce the burden for workers 

Source: Authors’ own elaboration

going abroad

57

non-EU countries. This is reflected in the findings of 
the investigated born global case studies as well as the 
literature (OECD, 2009; EIM Business & Policy Research, 
2010; European Commission, 2015a). 

Solutions
Almost all countries have some kind of export financing 
and typically some forms of related guarantees. At EU 
level, improving access to finance is one of the main 
priorities of COSME – one of the key EU instruments –  
to enhance firms’ internationalisation and access 
to foreign markets. At national and regional levels, 
the support typically involves the public sector in 
partnership with the private sector and financial 
institutions. In addition, financial support is commonly 
linked to other types of support, such as assistance to 
attend a trade fair or establish a marketing plan (for 
example, Global Lehian (Spain), Go Silicon (Austria), 
Matching Facility (Netherlands), OTE (UK) and 
Communication Support (Belgium)), while support for 
an exporting firm’s working capital is not so widespread. 
Nevertheless, a deeper analysis of the nature of the 
finance problems faced by internationalising SMEs and 
particularly by born globals finds that the pressure on 
working capital is both the most widely experienced 
financial concern and the one that most governments are 
reluctant to address. 

4.2.2.  Barrier 2: Regulations in the target 

market

One of the potential barriers that SMEs experience when 
entering foreign markets is regulations that may well be 
different from those experienced at home. A survey of 
internationalising SMEs by the European Commission 
(2015c) identified the costs of dealing with regulations 
in foreign markets as the second most important barrier 
mentioned by European businesses. Although the nature 
and extent of regulatory barriers vary considerably 
across mature market economies, the difference is 
likely to be greater in the case of non-EU countries – 
especially developing countries, which may still be 
developing the regulatory framework. Furthermore, when 
regulations between the home and foreign markets differ 
significantly, this is likely to be reflected in higher costs. 
This is regarded as a barrier by SMEs and born globals 
who internationalise in non-EU countries, for example 
in Brazil, China, India, Japan, Russia and the USA. For 
example, SMEs internationalising in Argentina and Brazil 
have to deal with discriminatory taxes, the subsidisation 
of domestic firms and restrictions on the transfer of 
foreign currencies and dividends. In the same vein, China 
applies significant restrictions on foreign investment 
and technology transfer and often imposes local content 
requirements. SMEs exporting to the USA have to deal 
with strict technical and safety requirements which differ 
from European standards, while SMEs doing business in 
Japan encounter limited public procurement (European 
Commission, 2015d). The turbulent economies in some 
world regions (Africa, Asia and South America) and their 
changing regulatory regimes add to the challenges faced 
by exporting EU SMEs. 

58

Solutions 
To address regulation barriers, some policy measures 
provide support to internationalising SMEs in the form of 
legal consultancy (such as the Romanian CCIR), facilitation 
of the business environment for foreign investors, for 
example by simplifying the process of residence permit 
application for non-EU national investors (International 
Mobility Law (Spain)), interest income on foreign 
loans, the lowering of technical and management tax 
fees, double taxation relief, the elimination of state 
intervention in price fixing for industry products (Foreign 
Investment and One Window Policy (Nepal)), and 
grievance identification and resolution for foreign-invested 
companies (Foreign Investment Ombudsman (Korea)). 
However, the majority of the analysed instruments 
addressing regulatory barriers aim to enhance the 
business environment to attract foreign investors rather 
than facilitating exporting SMEs’ legal knowledge of 
the target markets (except for the CCIR (Romania)). 
Some measures do provide indirect legal support by 
incorporating some key facts about regulations in foreign 
markets into their internationalisation information 
provision portfolio, however. 

4.2.3.  Barrier 3: National certification and 

product requirements

Quality certification and the reputation of foreign 
products can affect customers’ confidence in what they 
are purchasing. As a result, actions that can help to build 
confidence in a firm’s foreign partners are welcome. 
The issue affects all internationalising businesses with a 
disproportionate impact on SMEs, and especially born 
globals because of their more limited internal resource 
base, newness and lack of track record.

Solutions 
Amongst the investigated policy instruments, the Italian 
measure 100% Made in Italy is an attempt to provide 
certification of quality and thereby contributes to building 
a reputation and brand. The 100% Made in Italy label is 
claimed to be the third-best-known brand in the world 
after Coca Cola and Visa (The Italian Magazine, n.d.). The 
reasons for this success appear to be based on Italian 
history, culture and tradition, which enable the 100% 
Made in Italy brand to be recognised worldwide as being 
of high quality. 

4.2.4.  Barrier 4: IPR protection
Intellectual property issues are a barrier frequently 
reported by internationalising firms, especially because 
they do not have the scale or resources to have recourse 
to their own intellectual property lawyers or, in some 
cases, even the know-how necessary to develop a strategy 
of protection (Blackburn, 2003). Intellectual property 
regulation and processes vary across different markets in 
terms of both content and operation. Internationalising 
firms can find it difficult to establish the nature of the 
system for protecting their intellectual property clearly. 
This barrier is of more concern to those born globals 
that internationalise in countries where the intellectual 
property system is poorly developed or in the process of 
developing, or where it is perceived as effective, such as in 

Born globals and their value chainsBrazil, China, India and Russia (Directive (EU) 2015/2436 
of the European Parliament and of the Council of 16 
December 2015 to approximate the laws of the Member 
States relating to trade marks).

Solutions
Amongst the policies investigated here, the IP Attaché 
Network (UK) provides a good example of intellectual 
property awareness enhancement and support for 
internationalising SMEs in dealing with intellectual 
property issues in emerging markets. By creating different 
IP Attaché centres in Brazil, China, India and south-east 
Asia, the measure has established different teams of 
experts to provide advice, information about intellectual 
property in those markets and networking opportunities 
with other members targeting the same market, negotiate 
with foreign authorities to improve the intellectual 
property system, and find ways for SMEs to deal with 
problems related to IPRs.    

4.2.5.  Barrier 5: Differences in cultural 

practices

Some barriers are grounded in culture and can result 
in differences in business practices. SMEs entering a 
new foreign market need to understand new cultures, 
languages and economic systems, as a lack of related 
knowledge can lead to failure in foreign markets. 

Solutions
One of the keys to success for internationalising firms in 
understanding and responding appropriately to these 
differences lies in personal contacts, since communication 
is the best way of building cultural understanding. 

The vast majority of the investigated measures provide 
support in the form of information, networking, 
consultancy, seminars and workshops or trade fairs and 
market assessment. The support can be either general 
or tailored to specific markets. For instance, BMWi 
(Germany) helps German SMEs to develop markets in 
foreign countries in the form of information events and 
workshops, organising study tours to foreign countries 
to explore the target markets and sponsoring business 
initiation trips to individual target clients or partners. 
Similarly, OTE (UK) provides market information about 
target destinations in different geographical areas and 
consultancy in relation to different business environments, 
organises events and workshops and helps SMEs to 
participate in trade fairs. 

Other measures provide specific support to SMEs that 
wish to internationalise in specific markets. For instance, 
STC (Spain) and Go Silicon Valley (Austria) focus on SMEs’ 
expansion in the USA and provide related activities such 
as an introduction to US business habits and conventions, 
mentoring, finance forums and entrepreneurship 
workshops, and free access to office and co-working 
spaces to for SMEs. Similarly, the SMEs’ CEO Network 
Enhancing Project (Japan) and RIT (Japan) organise 
networking, business matching events and business trips 
to help foreign SMEs that lack resources to go to Japan, 
meet potential partners, enhance their knowledge of 
Japanese business culture and environment and develop 
business relationships with local SMEs. 

Conclusions and lessons learned 

4.2.6.  Barrier 6: Reputation of and support in 

the country of origin

SMEs’ successful foreign market penetration typically 
relies on an effective domestic business support 
infrastructure. This is often based on one or more export 
policy measures embedded within a wider policy support 
framework. To be a successful exporter, a business needs a 
product or service that enjoys sufficient market demand, a 
certain profile and a positive reputation. This can influence 
potential buyers’ decisions in ways that the business 
owner is not always aware of. For example, a Chinese 
dynamic electronics business employing 20–25 people 
may be viewed as a highly competitive organisation in 
the UK. To a Chinese buyer, such a business is typically 
regarded as too small to be a reliable supplier. In this 
sense, SMEs and born globals encounter the challenge 
of how to improve their profile and trustworthiness in a 
foreign market with a view to establishing a new business 
relationship, and especially in emerging markets where 
different business perceptions can exist. 

Solutions 
SMEs’ profiles can be improved if the companies identify 
themselves using trademarks and brands, integrate into 
different business clusters, participate in international 
trade fairs, initiate government-sponsored business trips 
and events, attend business matching opportunities and 
events, and participate in competitions and networking 
events. A clear example of reputation building is 100% 
Made in Italy (Italy), which provides opportunities for 
SMEs to raise their profiles with registered trademarks. 
This is consistent with the literature, which confirms that 
trademarks are economically beneficial since they help to 
solve the issue of information asymmetry between sellers 
and buyers (Cappelli et al, 2017).

Another example is Development of Clusters (Estonia), 
which supports SME clusters in increasing their 
international competitiveness via joint marketing and 
business development activities. By joining clusters, 
smaller firms gain an opportunity to build their 
competencies and reputation in the international market. 
The two measures SMEs’ CEO Network Enhancing 
Project and RIT (Japan) help to boost the collaboration 
and trust between overseas SMEs and local businesses. 
Another example is CCIR (Romania), which provides SMEs 
with integrated support services such as trade missions, 
training, legal and administrative advice, networking 
opportunities and an information database.      

4.2.7.  Barrier 7: Finding clients, partners and 

staff in the target markets
A critical barrier to internationalising SMEs identified in 
this study is the difficulty with finding potential clients and 
partners as well as building human capital in foreign markets. 
This can be attributed to the lack of networks and resources 
in the target markets as well as the liability of newness that 
most SMEs and born globals encounter in a new business 
environment (European Commission, 2015b; Elo, 2015). 

Solutions 
This challenge has been addressed in a number of the 
measures in this study that facilitate networking and 

59

business matching opportunities or pay for SMEs to 
attend trade fairs and international exhibitions. For 
example, BMWi (Germany) provides a range of support 
activities such as symposiums in target countries, 
which financially assists German SMEs to present their 
products and services to potential clients and partners, 
or business initiation trips that allow German SMEs 
to visit individual target clients and attend bilateral 
meetings. In addition, potential clients from foreign 
countries are invited to participate in networking events 
or visit German companies. Similarly, the Matchmaking 
Facility (Netherlands) promotes new business relations 
between internationalising SMEs in developing countries 
and Dutch SMEs by sponsoring the cost of meeting. In 
contrast to the overall lack of support in relation to the 
recruitment of staff in target markets, Global Lehian 
(Spain) provides partial support to SMEs to help establish 
facilities abroad, including funding set-up and covering 
the recruitment costs of specialised technical staff for 
internationalisation. 

4.3.  Challenges related to the 

internationalisation policy 
process 

‘Born global’ labelling

4.3.1. 
Of the 28 investigated policy instruments across 16 
countries, only 2 refer to born globals by name, namely 
Born Global (Sweden) and Startup Global (USA). The 
main potential advantage of the use of the born global 
‘label’ lies in marketing. If entrepreneurs and potential 
entrepreneurs are attracted to a measure that is clearly 
aimed at an elite business group, it would make sense to 
extend the use of the term ‘born global’ into the policy 
portfolio. 

The potential disadvantage of extending the usage of 
‘born global’ labelling could relate to the fragmentation 
and proliferation of supply of measures, which can 
become costly. In addition, this may generate confusion 
amongst entrepreneurs and managers, on the one hand 
by adding measures on top of those already existing in the 
marketplace and on the other because entrepreneurs may 
not be familiar with the concept of born globals and hence 
not identify their business as such. 

On balance, there is currently little evidence to suggest 
whether a more extensive use of ‘born global’ labelling 
would be beneficial. 

4.3.2.  Operation of the policy measures
The findings of the policy instruments investigated here 
show that the measures to support internationalisation 
are implemented and administered by the organisation 
designing the intervention itself, or in collaboration with 
other public and private shareholders. Even though 
collaboration with other parties helps to increase the  
resources in applying the measure, administrative burdens 
can arise, as in the case of Communication Support 
(Belgium) and STC (Spain) due to the multiple layers of 
administration and the number of organisations involved. 
In some cases, reaching a consensus may be difficult for 

60

the parties involved, or a lack of coordination may lead to 
a change in administration or in sources of funding, as in 
the cases of OTE (UK) and FINEST SpA (Italy).

The majority of the measures examined promote their 
programmes via their websites and through their 
members, rather than involving third parties such 
as embassies, chambers of commerce or business 
associations or taking advantage of social media. This has 
its drawbacks. For example, ICDK (Denmark) was found 
to experience a lack of consolidation and lost visibility 
amongst the target companies, which limited its ability to 
reach a wider group of participants. 

4.3.3.  Monitoring and evaluation
One of the most striking findings emerging from this study 
is the low level of monitoring and evaluation to which 
these measures are subject. Where such evidence was 
available, the evaluation had typically been undertaken 
internally, which affected the value and utility of its 
findings. 

In practice, the emphasis tends to be on fairly low-level 
monitoring, consisting of elementary statistics on activities 
carried out which often involves merely recording the 
number of businesses supported and those growing, 
rather than anything more rigorous or systematic. 
Storey’s so-called Six Steps to Heaven, for example, 
can be used to describe and assess the methods used, 
starting with simple monitoring and ending with the 
sixth step, which involves a more sophisticated approach 
(Storey, 1998). Although Storey presents a logical and 
systematic approach to policy evaluation, the approach 
may be criticised as being entirely quantitative. While 
governments may state an intention to build evaluation 
into project design, it is often difficult to obtain the data 
required for robust evaluations. 

The analysis here has shown that, as far as 
internationalisation support goes, there are many actors 
and institutions involved, and this makes the collection of 
objective and accurate data problematic. A combination 
of qualitative and quantitative methods would be more 
convincing, and would bring the added bonus of providing 
some additional insight into the policy process.

4.4.  Policy pointers
The analysis shows that access to external resources is one 
of the critical prerequisites for SMEs and born globals to 
internationalise. Despite a number of measures supporting 
access to finance, these mainly relate to the promotion of 
SMEs’ services or products in foreign markets, networking 
and trade fair participation, rather than providing direct 
finance for the SMEs’ export plans. Hence, public policy 
interventions need to be reinforced by providing better 
support to SMEs and born globals (and their value chain 
partners) to help them reduce the financial risks of 
expansion. In this sense, public authorities should help 
these companies to access external capital, either in the 
initial or in the expansion phases of the business project 
and for purposes that align with the companies’ specific 
needs (for example, to develop new products or markets, 
to finance R&D activities, to grow the business, to cover 

Born globals and their value chainsproduct certification costs, to gain access to new premises 
or to perform internationalisation activities).  

Second, regarding regulatory barriers, public authorities 
should facilitate SMEs’ and born globals’ access to 
specialised and reliable assistance and advice within 
different fields, such as legal and tax obligations, 
product certification and IPRs, business consultancy, 
internationalisation and access to external markets and 
the search for and identification of potential foreign 
suppliers and business partners. In this context, policy 
support would be crucial to enable information provision 
on regulations in target markets. This may include both 
providing general information about the regulatory system 
and its functioning and building processes to enable 
internationalising firms to gain up-to-date information 
about regulations that will affect their specific business 
activity.

Third, regarding the product requirement barrier and the 
difficulty of finding clients and partners in foreign markets, 
public authorities can facilitate (international) business 
cooperation and networking activities (participation 
in conferences, trade fairs and business clubs). Special 
attention should be given to the development of the 
so-called business accelerators for born globals that 
help participating companies to benefit from different 
support areas (mentoring, financial support, advice and 
consultancy services and training, amongst others) in a 
very short period of time. 

Fourth, it is recommended that the European Commission 
actively promote measures like the IP Attaché Network to 
all EU Member States as a way of helping European SMEs 
reduce the barrier effects of IPR issues in foreign markets. 
It is also recommended that it build on the success of the 
intellectual property helpdesk in Beijing by establishing 
similar facilities in other rapidly developing economies 
where a lack of IPR protection is a major issue.  

Fifth, the differences of business practices can be 
addressed by emphasising the cooperation between 
domestic and foreign firms, workshops, events, 
networking and business tours. The Japanese approach to 
supporting SMEs, which emphasises encouraging (longer-
term) cooperation between domestic and foreign firms, is 
an effective approach that could be adopted by the EU and 
actively promoted to European businesses. 

Sixth, regarding the reputation and support barriers in 
home markets, the principles that underpin the 100% 
Made in Italy trademark should be actively promoted 
to policymakers throughout Europe. Based on the 
Italian experience, such a trademark can be regarded by 
consumers as a guarantee of a product’s value, quality 
and origin, provided that tools are available to ensure that 
the label means what it says. On a complementary note, 
policy should create ‘technology hubs’ that enable smaller 

Conclusions and lessons learned 

firms to improve their reputation and trustworthiness in 
the target markets. In addition, public authorities should 
highlight their roles in sustaining prizes and business 
competitions for born globals as an effective tool to 
support them, particularly in their initial stages when they 
need to increase their visibility and reputation in the eyes 
of third parties (investors, clients, suppliers and public 
authorities). National, regional and local authorities can 
also play a very important role in developing a supportive 
and proactive policy environment and start-up ecosystem 
that may facilitate access to both external finance (venture 
capital funds, business angels and banks) and different 
services demanded by companies.

Seventh, regarding the labelling and delivery of specific 
‘born global’ measures, there is very little evidence for an 
informed assessment to be made of the advantages and 
disadvantages of promoting and extending the use of a 
‘born global’ label. Consequently, it is recommended that 
Europe’s policymakers commission research to undertake 
such an assessment. In this regard, the methodology 
for such a study should aim to be global because of the 
potential role of culture and context in influencing the 
results.

Finally, the evidence from the monitoring and evaluation 
of the outcomes and impacts of policy measures remains 
weak in most of the investigated instruments. It is 
strongly recommended that policymakers take steps 
to ensure that robust policy monitoring and evaluation 
be built into the design of all policy measures used to 
promote the internationalisation of SMEs. There is a 
need for a very careful assessment when transferring 
an initiative from one domain to another, in order to 
ensure that the structures and processes of the original 
measure are correctly mapped onto the target institution 
and its economic context, so as to enable the specific 
requirements of the target environment to be met. 
Monitoring can feed back potentially useful information to 
those running a programme for continuous improvement. 
Robustly undertaken evaluations can provide important 
evidence with respect to the cost-effectiveness of 
particular measures. In addition, systematic monitoring 
and evaluation can generate data which enable the 
use of public money to support entrepreneurship and 
internationalisation to be reviewed in the wider context of 
public expenditure efficiency. A more systematic approach 
to monitoring and evaluation – one that includes keeping 
record of the various effects and impacts, as well as 
addressing any problems or weaknesses – would enable 
policymakers to learn from existing experiences and to 
develop suitable good practices for successful policy 
transfer. Ultimately, a robust monitoring and evaluation 
system can help improve SMEs’ performance and born 
globals’ internationalisation through the provision of 
appropriate support measures.

61

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Annexes

Annex 1: Description of global value chain partners 

Born global 
enterprises

Analysed global value 
chain members

Brief description of the company

Blue Ocean 
Robotics 
(DK)

Suitable Technologies

Blue Ocean Robotics 
Sweden

Materflow

COMODULE 
(EE)

AVS Electronics (HK)

Tektro

Frog Bikes 
(UK)

Shimano

Jagwire

Suitable Technologies is located in Palo Alto, California (USA). It was founded in 2011 as a 
spin-off from the robotics studio Willow Garage, and later set up offices in Massachusetts 
and Missouri (USA). The company is a medium-sized SME, specialised in developing and 
building remote telepresence technology; its first product is called Beam Smart Presence 
System. Although its customers are primarily in the business segment, the company also 
sells to schools and universities and directly to consumers. The USA, Europe and Asia are 
all strong markets for it.

Blue Ocean Robotics Sweden is located in Västerås, Sweden, and is a Blue Ocean Robotics 
joint venture. It was founded in September 2015. The company has 1.5 employees (one 
working full-time and another one part-time). Blue Ocean Robotics Sweden is specialised 
in designing, developing and introducing new generations of robotic solutions, focusing 
primarily on the healthcare, education and manufacturing sectors in Sweden. Their 
customers are public and private sector organisations.

Materflow Oy was created in July 2013 and is located in Lahti (Finland). It has five 
workers. Materflow is an online 3D printing service and manufacturer that prototypes, 
designs, networks, buys and sells custom 3D-printed products. Clients are engineering 
companies (both SMEs and large ones) from various sectors. Most of them are Finnish 
companies, but they have also clients from other EU countries.

AVS Electronics (HK) was founded in 2008 as a daughter company to MBV Far East, a 
leader in healthcare products. Its headquarters are in Hong Kong, but it has offices in 
China, Germany, Taiwan and the UK. There are 14 employees in total. The company 
focuses on sport-related electronic solutions, telematics applications and consulting 
and development of services for the car electronics/automotive industry. The major part 
of the turnover of the company comes from the Australia, Germany and the USA; other 
important markets are China, Indonesia, Japan, Malaysia, Singapore, Taiwan and the UK,.

Tektro was founded in 1986. The company’s headquarters are in Chang-hua (Taiwan), but 
it has additional branches in China and the USA. The total employees of all branches add 
up to over 1,200. Tektro specialised in manufacturing brakes, disc pads and brake pads 
for bikes and accessories. The company has established a strong international network 
with distributors in Asia, Australia, the EU, New Zealand, South Africa and the USA. 
However, its main clients are based in the EU.

Shimano was founded in 1921, and it is headquartered in Sakai (Japan). The company 
has 53 consolidated subsidiaries around the world in Asia, Australia, Europe, New 
Zealand and North and South America, , while its primary manufacturing plants are in 
China, Malaysia and Singapore. The number of employees is over 13,000. Shimano is 
a manufacturer of cycling components, fishing tackle and rowing equipment. It has a 
strong reputation for its brand worldwide, especially regarding cycling components. Its 
Asian and European markets generate the majority of sales, followed by Japan and North 
America.

Jagwire was founded in 1984, with headquarters in Taiwan, where it has 80 employees. 
Additionally, the company has branches in Belgium and China, and offices in Vietnam and 
the USA. Jagwire is mainly involved in the production and sales of control mechanical 
cables in the bicycle industry. Its clients are bicycle manufacturers based in China and 
Europe.

(Continued)

69

Annex 1: Continued

Born global 
enterprises

Analysed global value 
chain members

AIXTRON 

Graphenea 
(ES)

Graphit Kropfmühl 

GroWater Inc

Pipeco

ProEdge

Khar & 
Partners 
(RO)

KristallTurm 
(DE)

HPS Middle East

Fusser Enterprises

Telerex/Zytronic

Recornect 
(NL)

Britplas

Source: Authors’ own elaboration

70

Brief description of the company

AIXTRON is located in Germany, and it was founded as a spin-off from RWTH Aachen 
University in 1983. Manufacturing sites are located in Germany, the UK and the USA, 
and the company has selling and service customer points in Asia, Europe, Oceania and 
the USA. The company has around 750 employees worldwide. AIXTRON manufactures 
metalorganic chemical vapour deposition equipment. Circa 60% of AIXTRON’s revenues 
come from clients in Asia, around 18% from Europe and the remaining 22% from the USA. 
Its customers include market-leading companies, well-known institutions and renowned 
universities around the world.

Graphit Kropfmühl was set up in 1916 and it has its headquarters in Hauzenberg (Bavaria, 
Germany), with several subsidiaries in China, the Czech Republic, Mozambique and 
Sri Lanka. The company has around 480 employees worldwide. Graphit Kropfmühl is 
specialised in the extraction, processing and refining of natural crystalline graphite. The 
company exports particularly to EU markets, but also to other markets such as Japan, 
South Korea and the USA. 

GroWater Inc is located in Cambridge, Massachusetts (USA). It was set up in February 
2015 and it has three employees. In 2017, the company is developing a transformative 
graphene-based membrane platform technology with significant applications in different 
fields. The company expects that in about two years it could start commercial activity.

Pipeco was created in 1984. It is based in Malaysia, but it is also registered in France. 
The company has 250 employees along the production chain. Pipeco is a manufacturer 
of water tanks. Its main export markets are Europe and South Africa, whereas its main 
clients include property developers, public utilities firms, large infrastructure actors (for 
example, airports and metro systems) and manufacturing firms.

ProEdge is based in New Delhi, India. The firm was established in October 2015 and it has 
21 employees. It is a marketing, representation and franchising firm. The company works 
with firms such as hotels, spas and retailers that want to develop their loyalty marketing 
schemes, and it also helps international firms to expand to India via franchising and 
representation.

HPS Middle East was established in Dubai in 2008, and offers customised playgrounds 
and adventure spaces to operators of leisure parks and similar facilities, including 
hotel chains, in the Middle East region and beyond. The company has a wide portfolio 
of attractions of a multitude of suppliers (manufactures) from all over the world in its 
programme (ropes courses, steel slides, climbing walls, freefall devices, trampolines, 
water play facilities, etc.). In 2017, it had 33 employees. 

Fusser Enterprises was set up in Orlando, Florida (USA) in 2000. The company is 
specialised in the leisure and sports business, including consultancy work in the 
development of leisure park facilities, activities as USA sales representative for a number 
of German sport-related companies and, finally, running a fitness centre for golfers. In 
2017, the company was developing its own adventure park on rented land in Orlando 
together with a Canadian and a French partner. The company is run by an entrepreneur 
and his wife (no employees).

Telerex is a family company which was set up in the late 1970s. Telerex has two main 
locations: one in Antwerp (Belgium) and one in Breda (Netherlands). The company has 
170 employees. Telerex is a distributor of electronic products and components such as 
power supplies, card readers and touchscreens, among others, and it mainly serves the 
Benelux region. The company imports products from different countries such as Taiwan 
and the UK, and it has exclusive distribution rights for some products in the Benelux 
region. Zytronic, a UK manufacturer of touchscreens used by Recornect, produces one of 
these products.

Britplas was set up in 2006. It is located in Warrington (UK) and has around 100 
employees. Britplas produces and sells commercial windows for a broad variety of 
applications. Its clients are healthcare centres, schools and other institutions which 
use glass and large-scale windows. Britplas works mainly in the domestic market (its 
main client being the NHS) and international activities represent around 10% of its total 
turnover.

Born globals and their value chainsAnnexes

Annex 2: Providers of national contributions

Country 

Organisation

Author

Austria 

Austrian Institute for SME Research 

Thomas Oberholzner

Denmark

Oxford Research A/S

Martin Koch Haagensen, Anders Gøgsig Randrup and 
Morten Larsen

Estonia 

Italy

Praxis Centre for Policy Studies

Aleksandr Michelson

VVA Consulting

Francesco Pitton, Madalina Nunu and  Marius Dragulin

Netherlands 

Panteia 

Spain 

IKEI Research and Consultancy 

Amber van der Graaf, Paul van der Zeijden and 
Jacqueline Snijders 

Iñigo Isusi, Antonio Corral, Jessica Durán and Mikel 
Muñoz-Baroja 

Sweden 

UK 

Oxford Research AB 

Johan Peck and Louise Fabricius

Small Business Research Centre, Kingston University 

David Smallbone, Hang Do and Robert Blackburn

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This report explores the motivations, 
opportunities and challenges of born globals 
and small and medium-sized enterprises (SMEs) 
in integrating and managing their global value 
chains (GVCs). The study also investigates the 
role of selected policy measures in supporting 
SME internationalisation, including different 
types of support in Europe and beyond. The 
analysis shows how such interventions can be 
improved to better address the needs of born 
globals and internationalising SMEs.

An in-depth analysis of seven case studies of 
European born globals and their international 
partners together with 28 policy measures 
across Europe, Australia, USA, Japan and 
Korea was undertaken. The report considers 
the barriers to internationalisation and offers 
suggestions for policy development. 

The European Foundation for the Improvement 
of Living and Working Conditions (Eurofound) 
is a tripartite European Union Agency whose 
role is to provide knowledge in the area of 
social, employment and work-related policies. 
Eurofound was established in 1975 by Council 
Regulation (EEC) No. 1365/75 to contribute to 
the planning and design of better living and 
working  conditions in Europe.