We show that if an ordinary differential
equation $x'=f(x)$, where $x\in \mathbb R^n$ and $f \in
\mathcal C^1$, has a topological horseshoe, then the
corresponding delay equation $x'(t)=f(x(t-h))$ for small $h >0$
also has a topological horseshoe, i.e. symbolic dynamics and an
infinite number of periodic orbits. A method of computation of $h$
is given in terms of topological properties of solutions of
differential inclusion $x'(t) \in f(x(t)) +
\bar B(0,\delta)$.