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General Criteria (Article 2 of Framework Act on SMEs and Article 3 of Enforcement Decree of the Act). SMEs are divided into medium enterprises and small enterprises according to the number of constant workers and the volume of capital and sale.
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Industry
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Small & Medium-sized Enterprises
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Employees
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Paid-in Capital / Revenue
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Manufacturing
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Below 300
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8 billion won or less (Paid-in Capital)
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Transportation, Mining & Construction
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Below 300
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3 billion won or less (Paid-in Capital)
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Retail, Hotel
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Below 300
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3 billion won or less (Revenue)
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Fishery, Film, Hospital
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Below 200
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20 billion won or less (Revenue)
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Wholesale
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Below 100
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10 billion won or less (Revenue)
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Others
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Below 50
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5 billion won or less (Revenue)
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In general, an SME is defined to be an enterprise employing less than 300 personnel and of varying size, sector and type. As of 2006, the number of SMEs in Korea is approximately about 3 million, including 84,000 medium enterprises(with 50~300 employees), 230,000 small enterprises (with 10~50 employees) and 2.68 million micro-enterprises(with less than 10 employees).
As the main component of the Korean economy, SMEs represent 99.8% of the entire enterprises (3 million SMEs), and 86.5% of total employment (10.41 million employees).
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Current Status of SMEs by Year
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Classification |
2001 |
2002
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2003
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2004
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No. of Establishments
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Proportion of SMEs
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2,876,817
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2,953,124
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3,004,105
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3,003,180
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2,871,951
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2,948,171
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2,999,297
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2,998,223
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-99.8
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-99.8
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-99.8
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-99.8
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No of Employees
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Proportion of
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11,650,034
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11,975,672
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12,041,387
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12,036,330
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SMEs
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9,969,797
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10,385,020
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10,474,630
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10,415,383
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¡¡
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-85.6
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-86.7
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-87
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(86.5
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Current Status of Manufacturing SMEs with 5 Employees or More
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Classification
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¡¡Year¡¡
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2001
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2002
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2003
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2004
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¡¯00
~
¡¯04
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No. of
Establishments
(No,%)
¡¡
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Total
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105,088
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109,489
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111,363
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112,454
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3.47
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SMEs
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104,406
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108,819
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110,691
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111,759
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3.5
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with 5 to
299
employees
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-99.4
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-99.4
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-99.4
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-99.4
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No. of Employees
(No,%)
¡¡
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Total
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2,627,250
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2,675,292
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2,716,752
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2,779,978
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1.18
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SMEs
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1,990,688
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2,057,816
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2,090,216
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2,104,820
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1.76
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with 5 to
299
employees
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-75.8
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-76.9
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-76.9
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-75.7
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Production Volume
($M,%)
¡¡
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Total
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575,092.30
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628,285.30
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672,060.50
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789,010.90
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8.72
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SMEs
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282,285.40
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318.961.9
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340,231.30
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383,496.40
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9.42
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with 5 to
299
employees
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-49.1
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-50.8
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-50.6
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-48.6
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Shipping Volume
($M,%)
¡¡
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Total
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574,714
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625,464.30
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667,299,3
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749,176.30
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7.58
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SMEs
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280,663.60
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317,004.70
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338,009.10
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353,938.30
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7.52
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with 5 to
299
employees
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-48.8
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-50.7
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-50.7
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-47.2
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High Value Added
($M,%)
¡¡
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Total
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218,301.10
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240,831
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254,409
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300,073.20
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8.14
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SMEs
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112,726.30
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124,576.20
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134,256.30
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148,289.90
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7.72
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with 5 to
299
employees
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-51.6
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-51.7
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-52.8
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-49.4
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* Note: SMEs are businesses with 5 to 299 employees. The figures in parenthesis shows proportion.?
* This data by the National Statistical Office is based on statistical report on mining for each year.
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Export Performance of Korean SMEs
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Export
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Year 2002
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Year 2001
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Year 2000
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mil. US$
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%
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mil. US$
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%
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mil. US$
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%
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Total
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162,470
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100
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150,439
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100
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172,267
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100
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SMEs
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68,307
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42
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64,600
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43
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63,509
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37
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| Current Status of Innovative SMEs |
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Classification
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2001
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2002 |
2003
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2004 |
2005
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2006 |
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New Designation
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1,090
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766
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519
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570
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808
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581
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Designation Cancelled
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-
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-
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-
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183
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116
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-
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No. of Businesses(Total)
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1,090
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1,856
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2,375
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2,762
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3,454
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4,035
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| (unit : No, %) |
| * Innovative Business mean Inno-biz plus venture business. |
| :11,783 in '01, 9,500 in '02, 8,558 in '04, 10,731 in '05 |
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| Current Status of Venture Business |
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Classification
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2001 |
2002 |
2003 |
2004 |
2005 |
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Venture Capital (Rate)
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1,124
(12.8)
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718
(9.3)
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442
(5.5)
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330
(3.4)
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301
(2.8)
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R&D Business (Rate)
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1,325
(15.1)
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1,483
(19.3)
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1,416
(17.8)
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1,425
(14.6)
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1,421
(13.3)
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Business with New Technology (Rate)
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6,329
(72.1) |
5,501
(71.4) |
6,109
(76.7) |
7,977
(82.0) |
8,974
(83.9) |
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Total
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8,778
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7,702
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7,967
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9,732
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10,696
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| Facility Investment by manufacturing SMEs |
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| Classification |
2003 |
2004 |
2005 |
Apr. '05 |
Feb. '06 |
Mar. |
Apr. |
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| Proportion of SMEs investing in facility(%) |
16.9 |
15.8 |
15.1 |
17.3 |
14.7 |
16.4 |
15.0 |
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| Production & Shipping by manufacturing SMEs |
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| Classification |
2003 |
2004 |
2005 |
Apr. '05 |
Feb. '06 |
Mar. |
Apr. |
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| Production Index |
104.4 |
108.4 |
110.4 |
114.8 |
104.0 |
118.5 |
115.7 |
| Average peration Rate |
68.8 |
68.2 |
69.9 |
70.2 |
69.7 |
71.3 |
70.8 |
| Shipping Index |
112.9 |
119.5 |
119.8 |
119.8 |
113.9 |
130.0 |
124.1 |
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| SME Export |
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| Classification |
2003 |
2004 |
2005 |
Apr. '05 |
Feb. '06 |
Mar. |
Apr. |
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Export Volume (£¤M)
(Growth Rate, %) |
81.7
(19.6) |
90.4
(10.6) |
92.13
(1.9) |
7.67
(¡â0.8) |
7.55
(22.1) |
9.08
(13.8) |
8.4
(9.6) |
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