ERIA Hosts Third EECOLE Network Roundtable on AI and Entrepreneurial Ecosystems

Jakarta, 26-27 November 2024: ERIA and the Organisation for Economic Co-operation and Development's (OECD) Centre for Entrepreneurship, SMEs, Regions, and Cities successfully hosted the Third Entrepreneurship Education, Collaboration, and Engagement (EECOLE) Roundtable. This 2-day event focused on strategies to advance AI adoption amongst SMEs through place-responsive approaches tailored to local contexts and communities.

The roundtable brought together seasoned policymakers, practitioners, educators, startups, industry players and global institutions, including Global Entrepreneurship Network, Junior Achievement, UNIDO, APEC Secretariat, European Parliament, Institute for Work & the Economy, and Brazil's University of São Paulo. Participants represented regions across Northeast Asia, ASEAN, North America, Latin America, and Europe.

On the sidelines of the roundtable, ERIA invited the One ASEAN Startup Award winners, giving them a platform to pitch their innovative ideas and businesses. The event also marked the launch of E-DISC Entreprenova, a knowledge transfer programme featuring a series of masterclasses. The inaugural session, 'Venturing Your Business Journey: Balancing Hyperlocal & Global Business Strategies,' was organised by Kentaro Machii and Mudhya Razanne Tiara of the ERIA Digital Innovation and Sustainable Economy Centre (E-DISC) Startup Team. The session provided entrepreneurs with opportunities to network and exchange insights.

The roundtable explored the prerequisites for effective and meaningful AI adoption amongst SMEs, addressing generative AI, entrepreneurial skill development, scaling challenges, ethical AI use, and ensuring equitable access to AI technologies. Discussions also highlighted region-specific dynamics and tailored strategies for adopting digital technologies. The key takeaways include:

• GenAI as a Tool for MSMEs

Beyond supporting routine tasks, generative AI offers MSMEs the opportunity to experiment, prototype, and innovate, significantly boosting productivity. Emerging services powered by generative AI allow entrepreneurs to focus on growth by automating routine tasks. However, adoption comes with challenges, including cybersecurity threats, data reliability issues, and the challenge of identifying the right solutions. Participants emphasised a human-centric approach to AI, citing frameworks like the EU's regulations as essential for safety, inclusivity, and efficiency.

• Entrepreneurial Ecosystems as Catalysts for Technology Adoption and Diffusion

Entrepreneurial ecosystems play a pivotal role in fostering AI adoption mitigating associated risks. These ecosystems foster communities of practice, building social capital, entrepreneurial skills, and trust. Collaboration amongst governments, private sectors, MSMEs, and academic institutions is key to facilitating this transformation. Initiatives such as reverse mentoring and short-cycle education have proven effective in bridging knowledge gaps and tackling challenges such as data governance and interoperability across both high-income and emerging economies.

• Place-Responsive Policies for Local Innovation

Tailoring policies to local needs for aligning international innovation networks with local community needs. These policies should consider regional strengths, mobilise local institutions, and attract talent. It is essential to recognise the different stages of innovation within MSME communities and tailor policies accordingly. Whether focused on early-stage innovation or more advanced phases, targeted, place-based strategies can drive meaningful and inclusive growth.

The roundtable concluded with a call for continued experimentation and a nuanced approach to understand how AI can support entrepreneurship across different economic and cultural contexts. Discussants stressed the importance of viewing entrepreneurship as a dynamic, evolving skillset that requires continuous learning and adaptation in an increasingly digital and AI-driven world.

Dr Giulia Ajmone Marsan from ERIA and Dr Raffaele Trapasso from the OECD co-hosted the roundtable. During the event, they presented the ERIA One ASEAN Startup White Paper 2024, 'Towards an ASEAN Innovation Ecosystem: Start-up Creation for Inclusive and Sustainable Economic Development' and the issue paper titled, 'Leveraging Entrepreneurial Skills and Ecosystems to Facilitate Innovation Diffusion and AI Adoption in SMEs.'

Adelia Rahmawati and Lina Maulidina Sabrina, programme officers from ERIA, also contributed to the organisation of the event.

Three webinars co-hosted by ERIA and OECD preceded the roundtable. Video recordings of these sessions are available here:

1. Generative AI, Startups & Public Policy
2. AI and Places: Evidence from Europe and China with Prof. Andrés Rodríguez-Pose
3. EECOLE Webinar with JA (Junior Achievement) Worldwide