North Karelia s Smart Specialization Strategy

Transcription

1 North Karelia s Smart Specialization Strategy

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3 FOREWORD We are living in the Europe of regions. Thus, at the regional level, we follow the EU strategies and try to think on how we could contribute to those, and how to put them into practice. The basic idea of smart specialisation stems from the EU 2020 strategy which calls for smart, sustainable and inclusive growth. The smart part of the strategy emphasises education, research and innovation. The second aspect, sustainability, focuses on building a resource efficient, low-carbon economy. The third point, inclusive growth, refers to social inclusion and employment generation. Forest-bioeconomy is an essential theme in the North Karelian application of smart specialisation. It is based on more innovative utilisation of our forest resources. In 2013, the city of Joensuu, the regional capital, was nominated by the Finnish government to be the centre responsible for the coordination of bioeconomy related development activities in Finland. This is a great honour for us, and at the same time, a responsibility with a heavy workload. North Karelia is a European forerunner in the use of renewable energy. Almost two-thirds of the energy used in North Karelia comes from renewable sources mainly from wood energy. According to the regional climate and energy programme, the goal is that North Karelia should be completely fossil fuel free by Technology and materials is another theme in our smart specialisation basket. Applications in fotonics, material technology, and ICT offer promising future prospects. North Karelian enterprises are creating innovative materials, such as films for mobile phone screens and wood-plastic composites. The development efforts aim at creating an innovative milieu by investing in favourable infrastructure for those enterprises. Finally, the third theme in our smart specialisation strategy is our knowhow related to Russia. This is rather obvious as North Karelia is the easternmost province in Finland sharing 300 kilometers of border with Russia. There are about 1,6 million border crossings at Niirala s border crossing each year. An important tool in the development work for cross-border cooperation is the Karelia ENI Programme, which is a programme implemented in the regions Kainuu, North Karelia and Oulu in Finland and in the republic of Karelia in Russia. North Karelia, together with the other regions located in the northern part of the EU, can make an essential contribution to the smart, sustainable and inclusive growth of Europe. For example, we can provide solutions for the challenges caused by climate change and increasing demand of energy. At the same, we can show new opportunities for entrepreneurship and economic development. Pentti Hyttinen Region Mayor of North Karelia

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5 Contents 1 Background Smart specialisation and Europe 2020 strategy Regional Council of North Karelia North Karelia region North Karelia s smart specialisation strategy Background for and approaches towards specialisation in innovation Theme-/cluster-specific choices Support by other processes, programmes and projects for the choices Changes needed and new openings in the near future The profile of the region s innovation environment and its relation to national/european innovation activities...10

6 1 Background 1.1 Smart specialisation and Europe 2020 strategy According to the definition by the European Commission, national/regional research and innovation strategies (RIS3 strategies) concerning smart specialisation are integrated, location-specific programmes for economic change. In line with the Europe 2020 strategy, the decision makers must take into account how the different components of the smart, sustainable and inclusive growth are interconnected. By modifying these activities according to the region, the integrated smart specialisation strategies respond to complicated development challenges. RIS3 strategies support the creation of knowledge-based employment and growth not only in leading research and innovation centres but also in regions lagging behind and in rural areas. 1.2 Regional Council of North Karelia This document presents North Karelia s smart specialisation strategy and provides background to make it a part of the operational environment of the region s development. The document was drawn up by the Regional Council of North Karelia, a federation of municipalities that includes as members all the 13 municipalities in North Karelia. There are 45 employees under the management of Dr. Pentti Hyttinen, Region Mayor, at the Council s office. The Regional Council s objective is to make North Karelia an ever better place to live, study, work, and operate as an entrepreneur. The Council s role in the development of the region is, first and foremost, to be the cooperation leader of all the different actors and players in the area. The Council s duties include the development of the region, planning of land use and promotion of the region s interests. The Council s legislative responsibilities include the duties specified by the legislation for the regional development authority and the duty of looking after the regional land use planning in accordance with the Land Use and Building Act. Of special importance are the tasks of promoting the interests of the region, independent development and formation of a common will to assert it for the benefit of 166,000 North Karelians. 1.3 North Karelia region General North Karelia has always been a place where east and west meet. With 1.6 million crossings a year, the Niirala border crossing point in Tohmajärvi is the third busiest in Finland. The big Russian markets are close by and Russian tourists contribute to the growth of the region s tourism, commerce and services. The competence-based growth industries of the future, forest bioeconomy and new technologies and materials, have taken off in North Karelia due to the active research carried out at the University of Eastern Finland located in Joensuu. The region s traditionally strong industries include the forest, metal, extractive and food industries. The headquarters of the European Forest Institute is in Joensuu. The region s undisputable strength is forest bioeconomy, and more than 500 companies whose operations involve bioeconomy can be found in the region. The turnover of these companies is over 1.7 billion, and they employ more than 6,000 people. In addition, there are more than 600 experts employed in this field in the region: researchers, developers, trainers and administrative employees. North Karelia invests in the welfare of people and the environment. The carbon footprint of North Karelians is, in fact, 36% smaller than that of an average Finn. The region is a pioneer in the use of renewable energy and, in particular, bioenergy: renewable energy accounts for 63 percent of the total energy consumption, which is high even on an international scale. North Karelia is also a model area in energy self-sufficiency: approximately 70% of the energy consumed is produced in the region. Hilly landscapes covered with trees and dotted with numerous meandering rivers and many lakes are characteristic of North Karelia. One

7 of Finland s best-known national landscapes is the Koli area with its many hills located in Lieksa by the Lake Pielinen. In North Karelia, the four seasons have a clear rhythm, and a snowy winter is guaranteed every year. Competitiveness and business North Karelia has a diverse industrial structure. There are several quite strong industrial sectors and companies in the region. Moreover, potential growth areas can be found in the area. An example of this is bioeconomy, where there have been significant investments in the related development projects. Joensuu s strong expertise in bioeconomy was also nationally recognised when it was appointed to the lead role in the Bioeconomy INKA programme (the only leading role in the Innovative Cities programme in the whole of Eastern Finland). As far as business and entrepreneurship are concerned, the situation in North Karelia is ambivalent: on one hand, the prospects of the region s important growth businesses are, at least to some degree, quite positive, and many company investments are on their way; on the other hand, the development prospects of the industry based on domestic markets and that of the travel industry are somewhat weaker (The strong growth in the share of Russian travellers is reversing due to the decrease in the exchange rate of the rouble, among other things.). In North Karelia, the gross regional product per capita was 27,126 in 2011, which is 77.5% of the overall national level. At the end of 2012, there were 8,594 companies in the region. The number of the companies has grown, as the number of start-ups has increased by more than one thousand in comparison with In North Karelia, the number of businesses in relation to the population has traditionally been, with the exception of agricultural entrepreneurs, below the average figures in the country. On the other hand, if we compare the share of entrepreneurship in the employment, the figure in North Karelia is the fourth highest in the country. Education North Karelia is an education region. Apart from training experts for its own areas, in certain fields the region also trains them for the needs of the whole country and even for international roles. The share of students of the population is, in fact, higher than the average. The challenge is to make the students stay in the region once they have completed their studies. Due to the population s age structure, the adult population s education level in the region is lower than the average in the country. In 2012, the share of qualification holders among those over 15 years of age was 68% (the country as a whole 68.5%), and the share of those with a higher education degree was 23.2% (the country as a whole 28.7%). The figures have improved during the past few years. However, in respect to holders of higher education degrees, this hasn t led to bridging the difference with the figures of the whole country. However, for secondary education qualifications, the figures for the region (44.8% in 2012) are better than the country s average (39.9%). Population At the end of 2013, the total number of North Karelians was 165,445. The share of females of the region s population is 50.3% and that of men 49.7%. Within the region, the differences among the population structure and migration are great. There is a clear trend of population concentrating in the Joensuu urban region. The population in the peripheral areas of the region is declining. An important portion of North Karelians (56%), nevertheless, continues living in rural areas. The growth in unemployment has slowed down. At the end of 2013, the degree of unemployment was 16.7%, and the number of unemployed job seekers was 12,427. In the short term, no turnaround towards better prospects can be expected. The reason for this is the fragile growth of export sectors and uncertainty around public finances (especially those of municipalities), which reflects on businesses in local markets.

8 2 North Karelia s smart specialisation strategy 2.1 Background for and approaches towards specialisation in innovation North Karelia is internationally known as a hub of forestry expertise. This expertise has undergone long-term strengthening. A slightly newer field of specialisation is the expertise in technology and materials, where the expertise in photonics with its internationally high level is at the lead. North Karelia s third special feature is its location as Russia s neighbour. With its border area location, the region has developed extensive longterm cooperation with its Russian partners. Behind the specialisation of innovation activities are the strategic choices of the region s R&D organizations, the company structure in the area, creation of the expertise and innovation structures of the region s strong sectors during the earlier regional programming periods, policies defined in North Karelia s regional programme, the development of the clusters and their interfaces in North Karelia s Centres of Expertise programme and, as the latest, the growth strategy of the Joensuu urban area. Joensuu is playing the leading role in the theme of bioeconomy of the Innovative Cities programme. 2.2 Theme-/cluster-specific choices North Karelia has specialised in the following themes: 1 The new era of natural resources: Forest bioeconomy In its own areas of strength, North Karelia is the world s leading expertise hub in forest bioeconomy. The important areas of strength are forest bioenergy, decentralised biorefinement and wood materials, forest technology and the logistics of wood procurement, bioinformation economy (for example, forest inventories and management of forest information) and sustainable multiuse of forests and nature. FOREST BIOECONOMY TECHNOLOGY AND MATERIALS RUSSIAN KNOW-HOW Forest based bioenergy Decentralized bio-refinery and wood based materials Forest technology and logistics of forest harvesting Bioinformation economy Sustainable multiuse of forests and natural resources Photonics Material knowledge ICT programming Metal- and plastic products, composites Sustainable use and refinery of natural resources Cooperation in technology and research Russian tourism and services Business skills NEW ERA OF NATURAL RESOURCES! GROWTH AREAS FOR THE FUTURE! RUSSIA AS A TRUMP CARD! Picture 1 Smart specialization Strategy foci of North Karelia Special strengths and growth themes!

9 2 Future growth areas: Technology and materials The top priority areas are photonics, materials expertise, metal and plastics products of high value and ICT solutions. The region is showing a high profile as a manufacturing network of metal as well as plastic products systems and mechanical engineering systems, in which precision technology, automation, various manufacturing methods, special components and composite materials are combined. 3 Russia as a trump card: Russia know-how As the third top theme, the internationally recognised cluster of Russia expertise collects together and integrates extensive and diverse cooperation with Russia in various fields. The objectives in the development of the innovation environment are growth in commerce and travel with Russia, close and well-functioning cooperation relations with the region s key sectors, sustainable use and further processing of natural resources, cooperation in technology, development of logistics, strengthening of business expertise in companies and strengthening of Russia expertise. The smart specialisation themes mentioned above are supported by the development of competitive industries and businesses in the region s key clusters (forest and energy, technology industry, stone and extractive industry, food, ICT, production of culture and well-being, and travel). In future, the themes of smart specialisation will serve particularly the development of the interfaces between these industries and creative combination of the fields of competence. 2.3 Support by other processes, programmes and projects for the choices The smart specialisation strategy relies on the region s strategic choices. Those involved in the support of the growth and development of the region s central industrial environment have created a common view about the choices for growth. The INKA programme and the Stability and Growth Pact support the implementation of the themes. Joensuu has the lead role, nationally, in the INKA programme s bioeconomy theme. Together with the national bioeconomy strategy, the INKA programme creates for Finland s bioeconomy a new operation environment based on open innovation, competence, fast prototyping and experimentation; and comprehensive demonstration capabilities. It will also be the world s most attractive operational environment for bioeconomy companies to develop and establish themselves. Thanks to the measures taken in the INKA programme, Finnish bioeconomy expertise is internationally identified and recognised as a particularly good example of an efficiently overhauled industry structure, of new important innovative products and an operation environment that inspires and attracts company business and where the national network of green growth the bioeconomy demonstration platforms and comprehensive industrial development services developed in the country plays a central role. 2.4 Changes needed and new openings in the near future The most important openings are related to the strengthening of the chosen themes (forest bioeconomy, technology and materials, and Russia expertise) and to creative integration of strong competence areas to these. The core in the development of innovation environment is in increasingly transforming world-class expertise to products for business. In this, the central role is played by the strengthening of entrepreneurship and business expertise, diverse and innovative combination of the existing strengths and areas of expertise, international reach and targeting of investments to attract these to the key areas of competence. It is important that also the marketing and communications of the region highlight the chosen smart specialisation themes and the related top expertise. The Bioeconomy INKA programme is being shaped into an integrated programme where the seamless cooperation between forest economy and agrobioeconomy provides the players with synergic operation models, joint development and application possibilities for technologies and research and company networks for bioeconomy. An essential feature is also the combination, across interfaces, of various expertise fields. The aim of the INKA programme is

10 create different new urban-focused, flexible and fast demonstration opportunities and pioneering markets. The tools for these include innovative public procurements, construction of urban infrastructure to function as companies development platform and distinctive demonstration and piloting platforms. The centremost bottleneck for commercialisation is related to the demonstration of innovations and to the first commercial applications. The implementation of the Bioeconomy INKA is, in fact, largely formed around the development of these demonstration platforms. The intention is that the national and regional priority measures will target the following four themes: 1. National bioeconomy as a brand and new business concepts 2. Sustainable bioeconomy processes and logistics 3. Downstream bioeconomy products 4. User experience and anticipation in bioeconomy s value networks. The photonics competence cluster in Joensuu will be strengthened and its activities in future will be directed more and more towards applications and commercialisation. The University of Eastern Finland recently established the Institute of Photonics, and the competence cluster has been able to recruit many notable experts, especially for the commercialisation of photonics. Joensuu s appeal has increased on a number of counts. For the coming years, the important development targets include increased cooperation in research with international businesses and possible establishment of research centres as well as locations of new companies to Joensuu. In the future, photonics interfaces and application targets can be found for example in bioeconomy and ICT software production. The future ICT software production will produce more and more solutions for bioeconomy and for the area of well-being, as well as leisure time experiences. Solutions for teaching technology, expertise in 3D and expertise in gaming will serve as the fundamental technologies and competences. The manufacturing network of metal as well as plastic products systems and mechanical engineering systems will innovatively combine precision technology, automation, various manufacturing methods, special components and composite materials. Service business will notably increase. In the near future, a new potential theme where the needs of the ageing population are taken into account from the viewpoints of various fields is knowledge and learning among older people. 2.5 The profile of the region s innovation environment and its relation to national/ European innovation activities The special strength of North Karelia in the European environment is its unique forest expertise. Photonics and materials expertise represent the international top in the technology and materials theme. North Karelia is a nationally important cluster of Russia expertise. Joensuu is playing the leading role in the theme of bioeconomy in the INKA programme. Joensuu s strength in the bioeconomy theme is forest bioeconomy, Seinäjoki s urban region is responsible for agrobioeconomy and Jyväskylä s urban region for constructing a bioeconomy community that manages its resources in an intelligent way. For further information please visit

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12 Regional Council of North Karelia Pielisjoen linna, Siltakatu 2, FI Joensuu, FINLAND I Tel I Fax kirjaamo@pohjois-karjala.fi I I Business ID