Ž . Research Policy 26 1998 1037–1057 Public policy measures to support new technology-based firms in the European Union D.J. Storey a, ) , B.S. Tether b a Centre for Small and Medium Sized Enterprises, Warwick Business School, UniÕersity of Warwick, CoÕentry, CV4 7AL, UK b ( ) ESRC Centre for Research on InnoÕation and Competition CRIC , UniÕersity of Manchester and UMIST, Precinct Centre, Oxford Road, Manchester, M13 9QH, UK Abstract This paper provides a review of public policy measures implemented in EU countries to support New Technology-Based Ž . Firms NTBFs during the 1980s and early 1990s. It identifies five policy areas and provides a synthesis of the policy developments during this period and an assessment of their effectiveness. The policy areas examined are: Science Parks; the Supply of PhDs in Science and Technology, the relationships between NTBFs and UniversitiesrResearch Institutions; Direct Financial Support to NTBFs from National Governments; and the Impact of Technological Advisory Services on NTBFs. Although considered independently, these issues are clearly part of an interdependent ‘system’ of policies and we conclude with an overview of the whole policy area, together with our personal recommendations for its improvement. q 1998 Elsevier Science B.V. Keywords: New Technology Based-Firms; Public policy; Europe; Entrepreneurship 1. Introduction This paper provides a review of public policy measures implemented in European Union countries Ž . to support New Technology-Based Firms NTBFs during the 1980s and early 1990s. It identifies five policy areas and provides a synthesis of the policy developments during this period and an assessment of their effectiveness. The policy areas examined are: Ø Science Parks Ø The Supply of PhDs in Science and Technology Ø The relationships between NTBFs and Universi- tiesrResearch Institutions Ø Direct Financial Support to NTBFs from National Governments ) Corresponding author. Tel.: q44-0-1203-523-692; e-mail: smeds@wbs.warwick.ac.uk. Ø The Impact of Technological Advisory Services on NTBFs Although they are considered independently, these areas are clearly part of an interdependent ‘system’ of policies. For example, the supply of PhDs is likely to be a factor influencing the growth of firms on Science Parks. Equally, the role of government in providing financial support and advisory services influences both NTBFs and universities. For these reasons we conclude with an overview of the whole policy area, together with our personal recommenda- tions for its improvement. 2. Science parks The development of Science Parks in Europe clearly received its early impetus from the United 0048-7333r98r$19.00 q 1998 Elsevier Science B.V. All rights reserved. Ž . PII S0048-7333 97 00058-9