LAHTI GROWTH MODEL creation of a competence cluster

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1 Strategic key project LAHTI GROWTH MODEL creation of a competence cluster 1

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3 Content Background 4 Aims 4 Themes 5 Entrepreneurship ecosystem 6 What is the entrepreneurship ecosystem? 7 Why was it chosen? 7 What will be achieved and how? 7 Internationalisation 8 Cluster for design competence 9 What is the cluster for design competence? 10 Why was it chosen? 10 What will be achieved and how? 10 Internationalisation 11 Circular economy solutions 12 What are circular economy solutions? 13 Why were they chosen? 13 What will be achieved and how? 13 Internationalisation 14 3

4 The Lahti growth model is a unique cluster of enterprises, higher education institutions (HEI) and other development organisations, and it is based on a business ecosystem, design competence and circular economy solutions. In order to foster entrepreneurship, the region needs ecosystem collaboration to create prerequisites for SMEs to develop new competencies, innovations, employment opportunities, investments and success stories. Lahti University of Applied Sciences plays a central role in the building of the ecosystem in line with its Strategy Lahti is a forerunner in circular economy. The region has a number of national reference environments, including industrial symbioses. Lahti UAS develops future solutions for circular economy in cooperation with the region s HEIs, businesses and international networks. The design competence cluster of Lahti creates a significant, scalable model and service offering for different industries. Design can help improve value creation and competitiveness in society and the business world. Lahti UAS develops design as one of the competitive factors in cooperation with businesses, communities and strategic networks. Background The Lahti growth model is Lahti UAS s answer to the Finnish government s objective of strengthening cooperation between HEIs and the business sector in an effort to promote the commercialisation of innovations. The competence cluster is based on the focus areas and profiles of Lahti UAS as well as effective regional collaboration structures with emphasis on mutual partnerships with businesses, public sector organisations and other communities. In addition to the Government Programme, the development of the competence cluster is based on regional strategies and programmes and the strategic orientations of European and national research and innovation policies. Aims The aim is to build an effective competence cluster for the Lahti region in order to support skills and innovation by utilising the region s strengths and resources. The Lahti growth model will help improve the effectiveness and impact of RDI activities and attract professionals and competency-focused businesses to the area. It will provide a platform for new initiatives for the commercialisation of research outputs and competencies, business start-ups and international business in specific focus areas. In addition, the 4

5 aim is to significantly enhance interaction and cooperation between HEIs, businesses and the public sector in order to create prerequisites for entrepreneurial activity, commercial opportunities in research, and business growth. As part of the Lahti growth model, a strong international network will be established to support competence development, the internationalisation of new businesses, and the acquisition of international entrepreneurship competence for the region s economy. The competence cluster will provide opportunities for the consolidation of public and private resources into high-impact strategic projects by utilising funding sources such as Horizon 2020, the European Regional Development Fund (ERDF) and the European Fund for Strategic Investments (EFSI). Themes The two overarching themes of the Lahti growth model are the creation of an entrepreneurship ecosystem and the enhancement of competitiveness and well-being through design expertise and circular economy solutions. In line with the Lahti UAS strategy, the activities will feature experiments, reference environments and close links with the Helsinki metropolitan area and its development. The Lahti growth model is supported by the high-appeal demonstration environment (future campus) envisaged for the Niemi area, which will combine competencies and entrepreneurship and provide opportunities for industrial operators, growth enterprises, other businesses and HEIs to work closely together in the development, testing and commercialisation of innovative products, services and operation models. LAHTI GROWTH MODEL Experimental culture and reference environments Entrepreneurship ecosystem NIEMI CAMPUS Competence cluster for design Circular economy solutions Close links with Helsinki metropolitan area IN COOPERATION WITH: Lahti UAS Lahti University Campus (LUT, University of Helsinki, AALTO) Salpaus Further Education City of Lahti and other local authorities Lahti Industrial Association Lahti Region Development LADEC Design Foundation Finland Regional Council of Päijät-Häme Lahti Region Häme Chamber of Commerce Federation of Enterprises in Päijät-Häme SMEs, other businesses and organisations Strategic partners International partners 5

6 6 Entrepreneurship ecosystem

7 What is the entrepreneurship ecosystem? The region s economic growth and jobs are created by existing and new small and medium-sized enterprises. In order to foster entrepreneurship, the region needs ecosystem collaboration to create prerequisites for SMEs to develop new competencies, innovations, employment opportunities, investments and success stories. The ecosystem will be developed from a PPP approach in cooperation between HEIs, businesses, students and local development organisations. The ecosystem responds to the drive created by circular economy and design competence clusters to regenerate and create new business and competencies. The ecosystem actors share the same earnings model. Regional actors support and create vibrant development environments where existing and potential businesses can network, brainstorm, experiment and find ways to commercialise innovations. The ecosystem brings together the region s innovation network and modern business services, which play a key role in supporting new entrepreneurs and businesses. Why was it chosen? The Lahti region has worked on supporting start-ups and cooperation (clusters) among existing enterprises with a long term approach. This has been an important mechanism in the regeneration of the region s diverse economy and in structural change management. Lahti UAS, LADEC (Lahti Region Development Ltd) and other actors have worked together to support student entrepreneurship, for example through the regional StartUp and Kiihdyttämö services. Currently, Lahti UAS graduates are noticeably more likely to start a business compared with graduates of other universities of applied sciences (Statistics Finland, 2015). Progress with regard to entrepreneurship and business collaboration is one of the key objectives identified in strategies and programmes which steer the region s economy, job market, education and innovation activities. This progress is based on consolidating and targeting available resources at competence clusters, for example, those in circular economy and design. The resources will be created by refocusing the development activities of the members of the entrepreneurship ecosystem. Lahti University of Applied Sciences will play a pivotal role in the building of the ecosystem in line with its Strategy Entrepreneurship is one of the profiles highlighted in the strategy. Another important strategy area for is the establishment of stakeholder activities and partnerships. What will be achieved and how? Lahti UAS is launching the Entrepreneurship Learning Pathway in autumn It combines student-focused cooperatives which support entrepreneurial learning and the institution s services for businesses, helping to foster multidisciplinary expertise. The Learning Pathway will be an innovative, multidisciplinary development environment for entrepreneurship in higher education offering opportunities for the public sector, businesses and students to organise events and meetings, build networks and teams and learn about business management through innovative processes. A key aspect of the pathway is that students learn to utilise the diverse range of business services offered by the regional ecosystem for business start-up and expansion activities. These modern business services include information, advisory and referral services which support enterprises through various stages of the business life cycle, especially in areas such as business start-up, funding, competence development, innovation activities, networking and internationalisation. 7

8 The pathway integrates entrepreneurial learning into a higher education setting with workplace RDI activities. In order to maximise its success, Lahti UAS needs ecosystem collaboration and Living Lab-type development environments. In the new M19 campus design, entrepreneurship and business collaboration are given prominent roles. Internationalisation Lahti UAS builds international partnership networks in order to support new businesses and the region s SMEs. Entrepreneurial learning and the internationalisation of local businesses are supported by collaboration activities with organisations such as the University of Cambridge, the Nordplus network, and participation in NIBS competitions and the Start Up programme. The first ever Smart Cities in Smart Regions conference, which supports a research-based approach to regional development, will be held in The European Creative Futures event, which was first proposed by Lahti UAS, will be developed further and organised once a year. The activities are designed to lower the threshold for students and small businesses to get involved in international business. 8

9 Cluster for design competence 9

10 What is the cluster for design competence? In Muotoile Suomi, the national programme for design innovation, Lahti is one of the three design competence clusters envisaged for Finland (Muotoile Suomi 2013). In the growth model for Lahti , a multi-actor competence cluster for the urban region is described, with a design competence cluster as one of its strategic components. The main actors of the design competence cluster are Lahti UAS, LADEC Ltd and Design Foundation Finland in cooperation with other regional operators. Each actor has its own, evolving role in the economy, job market, education and innovation activities of the Lahti region. Why was it chosen? Design competence has been developed in the Lahti region with a long term approach, and the design education offering and business collaboration activities of Lahti UAS have played an important role in the cluster s emergence. In accordance with the City of Lahti Strategy 2025, the region will develop into an internationally recognised centre for innovation and economy which specialises in environmental and design competencies and practice-based innovation. (City of Lahti Strategy 2025) The region s competitiveness, collaboration among HEIs and the local economy and the commercialisation of innovations are also supported by the strategy for industrial design in Lahti. The focus areas are: world-class design expertise for business, functional and productive ecosystem for product development and design, a front-line role in industrial design, and managed implementation and monitoring of the strategy. (Lahti Design Strategy ). The strategy has been formulated in cooperation with LADEC, industry and businesses, and representatives of Lahti UAS. What will be achieved and how? The prime focus is on creating a model for the design competence cluster, clarifying the partners roles, and establishing a joint service offering. Product and service development activities aimed at businesses and communities will be integrated into design education, RDI activities and business collaboration. Multidisciplinary RDI activities offer synergy benefits; design competence can be integrated into smart solutions, circular economy and well-being solutions which promote the region s competitiveness. The thematic focus areas are industrial design, information design and service design, which promote efficient and resourceaware use of materials and energy and the transition to circular economy. In design education, the prime focus is on environmental design competencies (the Sustainable Design module). Service design is a key tool in the development of future services, approaches and well-being solutions. Lahti UAS is developing targeted, user-oriented work methods and service design competencies, for example, through the Service Design pathway studies. Entrepreneurship and an experimental culture are key approaches identified in the strategy of Lahti UAS. The new M19 campus will feature innovation platforms or proto workshops, where students, start-up entrepreneurs and businesses can experiment and produce protos and demos. Users can manufacture products from timber, plastic, metal, ceramics, card and precious metals. The workshop also includes a vehicle modelling workshop, a photo studio, a textile and clothing studio, 3D printing and 10

11 laser-cutting, a Print Lab, and electronics, mechatronics and robotics workshops. The activities support student entrepreneurship, new start-ups and opportunities for the region s businesses to commercialise their products and services faster than before. DESIGN COMPETENCE CLUSTER AS PART OF THE LAHTI GROWTH MODEL Internationalisation The design competence cluster provides a collaboration model that supports internationalisation as operators or partners in strategic focus areas and through collaboratively built networks and partnerships. Lahti UAS is preparing a Horizon project for international design competence and circular economy in collaboration with a number of strategic partners. The UAS is working with LADEC to prepare and implement a pilot project for collaboration with Chinese design institutes and businesses. Education export in furniture design is being planned for India. The Institute of Design is actively involved in the Cumulus, Cirrus and First-Artsmo networks. Design education Design RDI activities Higher education-industry cooperation Lahti UAS Marketing and promotion of design in businesses National business interface National innovation cluster for design Business collaboration and joint projects LADEC Design Foundation Finland Support for design entrepreneurship Business interface; knowledge of local companies Export of Finnish expertise Entrepreneurship ecosystem Internationalisation User-centred approach Student entrepreneurship Cluster for design competence Circular economy solutions Business collaboration and projects 11

12 12 Circular economy solutions

13 What are circular economy solutions? In the growth model for Lahti, circular economy solutions and associated business activities are developed in cooperation with higher education institutions, businesses and intermediary organisations. The solutions can be new technologies, methods, services and ecosystems which promote the circulation and sustainable use of materials as well as energy-efficiency. Circular economy is a new, widely recognised economic model and a key future area of interest. It offers excellent opportunities for Finnish businesses and, at the national level, annual growth potential at least in the region of billion. The global market is estimated to be worth around 800 billion. (Sitra, 2015.) Why were they chosen? The vision statement of the City of Lahti strategy identifies circular economy as a source of competitiveness and well-being for Lahti. The region s enterprises have a proven track record in circular economy solutions. These include various clean technology solutions, such as the Kymijärvi II power plant of Lahti Energia, industrial symbioses, and the Kujala waste centre and surrounding area which provides an excellent reference environment. The Lahti region is home to a cluster of clean technology, environmental competence and business, which is of major significance at Nordic and international level. Circular economy solutions help regenerate the strong industrial base of the region and foster new business opportunities. What will be achieved and how? For the last fifteen years, Lahti UAS has systematically developed expertise in environment and clean technologies, which also supports the creation of a competence cluster for circular economy solutions in Lahti (Cleantech Annual Review 2014 and 2015). Circular economy has been identified as an important theme in the educational offering of Lahti UAS, and a related pathway will be implemented in the Degree Programme in Energy and Environmental Engineering. Other engineering programmes (materials engineering, mechatronics, ICT) also promote the development of circular economy solutions. One practical example is a semiautomatic sorting machine for recycled textiles, which is currently being designed in a project requiring collaboration between different engineering disciplines. The machine has been recognised as a solution that promotes textile recycling, and it reinforces the position of Lahti UAS as a national pioneer in circular economy solutions. The development of circular economy is also supported by cooperation with design and business experts. A shared campus facilitates in-depth cooperation both in education and RDI activities. The Niemi campus area will feature a demonstration environment which supports the development of circular economy solutions by bringing together industrial operators, growth enterprises and higher education institutions. It facilitates rapid commercialisation of innovative products, services and business models related to circular economy. Lahti UAS is part of a network promoting joint applied research activities of universities (Helsinki, Lappeenranta), Lahti Region Development and businesses and the incorporation of circular economy solutions into education and RDI activities. The development of circular economy solutions and industrial symbioses supports collaboration between Lahti UAS and businesses. This will help support energy and materials efficiency in the region s enterprises as well as their competitiveness. One example of this is the energy ecosystem for businesses in Nastola, which is currently under development. 13

14 Internationalisation Circular economy will continue to be a strong theme in national and international funding schemes in the coming years. Transition to circular economy is supported by various funds including 650 million under the Horizon 2020 programme (Helsinki EU Office, 2015). Over the next few years, Lahti UAS will expand its international networks in circular economy. For example, Lahti UAS and the Regional Council of Päijät-Häme have agreed on an Interreg Europe proposal for enhanced international networking and information exchange under the theme Best practices in circular economy solutions (submission in spring 2016). In addition, in March 2017, Lahti UAS will apply for demonstration funding from Horizon 2020 for the launch of an international centre for circular economy in Lahti. Lahti UAS actively promotes the Lahti region s best practices in circular economy to help build them into international brands. In this area, Lahti UAS aims to increase know-how exports to developing countries, for example, by participating in the activities of Team Finland. CIRCULAR ECONOMY SOLUTIONS AS PART OF THE LAHTI GROWTH MODEL Internationalisation User-centred approach Student entrepreneurship Cluster for design competence Collaboration and projects Circular economy solutions Environmental ecology (University of Helsinki) Sustainable development (LUT) Entrepreneurship (LUT) Lahti University Campus (University of Helsinki, LUT) LADEC Entrepreneurship ecosystem Experiments, technologies, services and methods for circular economy Promotion of energy and materials efficiency Business models based on circular economy Lahti UAS NIA, Cleantech Venture Day Green Campus Innovations Oy Support for entrepreneurship Business interface Knowledge of local companies 14

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