Jukka Teräs, Norrum Oy, Finland RIBS Final Conference, Nairn, Scotland

February 27, 2013

Part 1: Non-metropolitan regions, innovations, micro clusters

Part 2: Review on RIBS and reflections/thoughts on future

- how to capitalize on the RIBS experience -  the possible future co-operation

”Rural Innovation and Business Systems (RIBS) project will specifically help SMEs in rural regions of Ireland, Scotland, Iceland, Sweden and Finland to address the effects of the economic downturn and strengthen their competitiveness and growth potential.”

”RIBS will develop Business Growth Programmes (RIBS products) in: SME Growth, SME Internationalisation, Entrepreneurship, and Rural Clustering.”

“Clusters are geographic concentrations of interconnected companies and institutions in a particular field.” (Porter 1998)

”Consider a garden in Vancouver. The soil is the university environment, the seeds of ideas germinate in the soil there, watered by funding from the federal granting councils. The plants grow, fertilized by funding from venture capitalists…few of the flowers live long enough to mature, go to seed , and generate new plants; most are picked while they are still blooming and carried off by passersby – large multinational companies, who want to have the flowers in their homes. ” (Vancouver Biotech cluster, Wolfe & Lucas 2004)

TCI Jyväskylä 2009 Jukka Teräs

Large cities and metropolitan regions hold key positions in the emerging knowledge economy (Cooke et al. 2007). Yes, BUT: There are numerous examples of smaller, non-metropolitan regions that have been capable of building up and sustaining industrial and service concentrations.

A study of 159 local industrial clusters in 31 countries (Brenner & Muhlig 2012): ” Urbanization is less important for high-technology industries. This somehow contradicts the usual belief that high-technology industries are strongly based on innovations and that innovations are more frequent with cities because of the knowledge spillovers”

Geography of Finnish innovations (VTT 2009): ”Currently, innovations are being created in all regions in Finland. The more complex innovations are more likely to be developed in large cities. However, the central role of customer co-operation in developing innovations is repeating relatively evenly both in urban companies and in rural companies.”

Practically all clusters are micro clusters in the very beginning (e.g. Argeplog Car Testing Cluster in North Sweden: first visits of Bosch engineers to Arjeplog region, contacts with local businessmen, Arjeplog Ice Track in early 1970s)

Needs for critical mass depend in part on willingness of companies to cooperate. The greater the willingness to cooperate, to intentionally pursue economies of scale, the smaller the numbers of firms needed to have “critical mass.” (Regional Technology Strategies 2009)

Some key success factors: “our way” of doing things instead of not only copying from others, distinctiveness, 1-2 primus motors, persistence, pride

“Even though companies, like individuals, take monetary gains into account in their business decisions, they rarely choose paths that exclusively maximize their financial gains. Attitudes and values also shape decisions.” (RTS 2009). Valid for any cluster environments - but especially for micro clusters.

RIBS project has identified several viable micro clusters and cluster initiatives (e.g. Iceland)

- how to capitalize on the RIBS experience - the possible future co-operation

What are we going to do next is strongly connected to what we are going to deliver to our key interest groups: NPP, companies, our host organizations

We have met the requirements of RIBS work packages: SME Growth, SME Internationalisation, Entrepreneurship, and Rural Clustering. Are we able to (further) develop tools/products out of WPs, to be utilized in future – especially in our regions?

What are the next steps: a tailor-made programme for the

core RIBS companies- based on the company replies? How to act as ”personal trainers” for the selected companies? How to broaden up the current selection of companies?

How do we maximize the results of our interregional RIBS efforts? How to continue joint learning and benchmarking?

Four major forces shaping the world: climate change, population growth, the globalization of the economy, and the demand of natural resources

The living conditions in the currently warm parts of the earth turn worse whereas the northern latitudes become more lucrative

The growing population needs more and more clean water, food and natural resources

( Smith L. 2011: Forces shaping Northern future and the New North in 2050)

Consider it done!

In Lapland brisk bold ideas and expertise go hand in hand, in an international yet local environment.

Rich in nature

Lapland is rich in nature. People living in the towns or countryside feel close to the nature - it feels like a second home for many.

Creative madness

Positive originality, which is contagious. Everyone is uniquely individual.

Open and Arctic

Lapland is an international meeting point without borders. This has created a culture of transparency. The very best Arctic region.

Arctic magic

In Lapland there is a strange kind of magic that cannot be described in words alone. It can only be experienced.

Lapland is spiritually, geographically and in its actions above ordinary.

NPP Evaluation 2012

The Northern Periphery Programme 2007-2013 Monitoring Committee would like to invite preparatory project applications that have a view to developing a main project application for a INTERREG VB Northern Periphery Programme through a preparatory project call.Preparatory project applications are encouraged that have a view to developing a main project application for the future programme, based on INTERREG IVB themes and addressing emerging themes for post-2013, following the principles of the EU2020 Strategy: Smart, Sustainable and Inclusive growth. The Programme welcomes project partners from the NPP area and the adjacent regions of Russia and Canada.The maximum total budget for these preparatory project applications is 45 000 EUR with a maximum grant of 27 000 EUR (60% intervention rate). All approved preparatory projects can run up to 9 months. They are expected to start 1st July 2013 and end no later than 31st March 2014. Mandatory attendance at specific events is required.

OPENING OF CALL: 21st January 2013, APPLICATION DEADLINE: 12th April 2013, DECISION DATE: 18th June 2013

www.northernperiphery.eu

The transnational network of RIBS experts from Scotland, Ireland, Iceland, Sweden, and Finland has been successful in several areas: sharing of information, good practices, joint learning, and trust

For most of the companies, the NPP region is not sufficient as a market. However, NPP region could serve as pilot or demonstration environment and as a ”living lab”

A new NPP programme, based on the RIBS experience and potentially including e.g. Arctic dimension and possibilities to co-operate with Canada and/or Russia, is an alternative worth consideration.