Found a solution, changed spring-context to:
<?xml version="1.0" encoding="UTF-8"?>
<beans xmlns="http://www.springframework.org/schema/beans"
xmlns:p="http://www.springframework.org/schema/p" xmlns:xsi="http://www.w3.org/2001/XMLSchema-instance"
xmlns:jdbc="http://www.springframework.org/schema/jdbc" xmlns:context="http://www.springframework.org/schema/context"
xsi:schemaLocation="http://www.springframework.org/schema/beans http://www.springframework.org/schema/beans/spring-beans-3.1.xsd
http://www.springframework.org/schema/jdbc http://www.springframework.org/schema/jdbc/spring-jdbc.xsd http://www.springframework.org/schema/context http://www.springframework.org/schema/context/spring-context.xsd">
<bean id="entityManagerFactory"
class="org.springframework.orm.jpa.LocalContainerEntityManagerFactoryBean"
p:persistenceUnitName="DEMO">
<property name="dataSource" ref="dataSource" />
<property name="jpaVendorAdapter">
<bean class="org.springframework.orm.jpa.vendor.HibernateJpaVendorAdapter">
<property name="showSql" value="true" />
<property name="generateDdl" value="true" />
<property name="database" value="HSQL" />
</bean>
</property>
</bean>
<bean id="dataSource"
class="org.springframework.jdbc.datasource.DriverManagerDataSource">
<property name="driverClassName" value="org.hsqldb.jdbcDriver" />
<property name="url" value="jdbc:hsqldb:file:build_database" />
<property name="username" value="sa" />
<property name="password" value="" />
</bean>
</beans>