STRATEGY DOCUMENT 01

Värmland’s Research and Innovation Strategy for

Smart Specialisation 2015–2020

1 Edited by Region Värmland, 2015 Photo: Linn Malmén, Øyvind Lund Print: Strokirk-Landströms

For questions about the strategy please contact: [email protected]

Region Värmland Box 1022 651 15 www.regionvarmland.se

We have recieved financial support from The Swedish Agency for Economic and Regional Growth.

Region Värmland is a regional development organisation. We create the conditions for a sustainable growth in Värmland.

2 3 TABLE OF CONTENTS

FOREWORD______3 VÄRMLAND IN THE EUROPEAN COMMUNITY______4 SMART SPECIALISATION à la Värmland______5 ANALYSIS - ABOUT VÄRMLAND AND THE REGION’S CONDITIONS FOR INNOVATION______7 SOCIETAL CHALLENGES______9 THE PROCESS______10 VISION______12 VÄRMLAND’S SMART SPECIALISATIONS______13 I. VALUE-CREATING SERVICES______20 II. FOREST-BASED BIOECONOMY______22 III. DIGITALISATION OF WELFARE SERVICES______26 IV. ADVANCED MANUFACTURING AND COMPLEX SYSTEMS______28 V. NATURE, CULTURE AND PLACE BASED DIGITALISED EXPERIENCIES______31 VI. SYSTEMS SOLUTIONS WITH PHOTOVOLTAICS______33 THE INNOVATION SUPPORT SYSTEM______35 POLICY MIX / ACTION PLANS______39 MONITORING______41 FINANCING______42 TERMS AND ABBREVIATIONS______43 ENDNOTES______45

4 FOREWORD

We are convinced that innovation is key to Region great deal to offer! • Reglab for its assistance in gathering knowl- Värmland’s task of contributing to creating new, With the adoption of its Research and Inno- edge and in its networking efforts through the good jobs and a sustainable and inclusive growth vation Strategy for Smart Specialisation Region Smarter Regions project. in Värmland. The people, along with industry, aca- Värmland joins a large movement of regions in • The European Commission platform for smart demia, municipal councils and the county council, as Europe - each one having its own strategy for smart specialisation in Seville for its advice, as well as well as us - Region Värmland - all need to become specialisation. for providing a knowledge base and some good more innovative in order for Värmland to be well Developing and producing this document has examples and for providing contacts, and in positioned in our highly competitive world. been a comprehensive process as all actors involved particular encouraging us to conduct a gender Relying on this strategy, Region Värmland, have understood the importance of having a stra- analysis of our strategy. together with the business community, the academic tegy. Therefore, we would like to thank everyone1 world and the public sector, has put into writing how who has provided knowledge and contributed their The success of this strategy depends on the in- we in Värmland should prioritise and invest in innova- time towards the creation of Värmland’s Research volvement of far more entities than merely Region tion in order to bolster Värmland’s competitiveness. and Innovation Strategy for Smart Specialisation. Värmland. Region Värmland can assist in creating In spite of the priorities set out in the strategy, From the outset, we wanted Värmland’s strat- the conditions conducive to innovation, but any ac- we still encourage and support people in finding egy to stand out. One thing in which we take great tual change will depend on the people of Värmland: new areas showing potential for growth. There pride is that Värmland is the first region in Europe to the researchers, company employees and the public needs to be latitude for experimentation, and to a have conducted a gender analysis study and there- sector. certain degree, also failure. by undertaken a conscious gender-mainstreaming Through our involvement in the EU, we have of its strategy for smart specialisation. noticed that it has become increasingly important for regions to be able to profile their business and We would also like to thank: research sectors. By clearly defining our areas of • The Swedish Agency for Economic and Region- specialisation, we gain access to fields and networks al Growth for its excellent collaboration and for Tomas Riste Stina Höök where we can participate and help influence EU helping to finance the strategy work through Regional Council Regional Council policy, thus facilitating the forming of collaborative the programme known as, Regional Innovation partnerships in Europe. This latter point is impor- Work and Clusters. tant, as we know that we cannot propel our devel- opment all on our own. Moreover, Värmland has a

5 VÄRMLAND IN THE EUROPEAN COMMUNITY

Launched in 2010, Europe 2020 is the EU strategy Consequently, the European Commission has innovation to make a difference. for smart sustainable and inclusive growth. Among launched the concept of “RIS3” and invited Europe’s RIS3 should not be regarded strictly as a strate- its goals, the strategy was intended to eliminate regions to concentrate their efforts on prioritised, gy for implementing the regional fund programmes the deficiencies of the current growth models and smart approaches. RIS3 stands for Research and (ERUF3). It should also be used to influence regional to create the conditions necessary for smart and Innovation Strategies for Smart Specialisation and and national policies and to affect and facilitate sustainable growth for all. Smart growth involves indicates the direction for a new European regional participation in other European-driven programmes developing an economy based on knowledge and policy. such as Interreg4, ESF5, EJFLU6, Cosme7 and Horizon innovation. Smart Specialisation deals not only with the 20208. The EU 2020 strategy concludes that the great- linear development of existing strong industries, but The base for smart specialisation is regional. est challenge facing the EU and its Member States is it also intersects value chains in order to promote In Värmland, Region Värmland is responsible for in forming a more strategic approach to innovation. innovation and to achieve a greater surplus value. leading the RIS3 process. This shall be done in Such an approach must allow innovation to form It is a means of joining together to face the societal concert with Europe 2020, the national innovation a part of an overarching political objective, and all challenges which have been identified and which strategy, the government’s research and innovation instruments, actions and financing opportunities require entirely new structures and procedures in proposal, the National Strategy for Regional Growth are designed so that they help to ensure that all the order to achieve sustainable change. and Attraction 2015-2020, as well as at the regional initiatives are cohesive and reinforcing. The regions have been given the opportunity to level, the Värmland strategy. In order to achieve effective use of public develop regional research and innovation strategies However, as far as Värmland and other regions investments in research, the European Commission for smart specialisation within a common, volun- are concerned, not only does this entail a regional has established the political innovation concept of tary framework of concepts, processes and joint approach, but of equal importance is how we, to- smart specialisation, denoted S3 (smart specialisa- learning. The regions are assisted by a platform gether, can contribute to meeting societal challeng- tion strategies). The aim of smart specialisation is for smart specialisation, part of the commission’s es in a European context. for regional policies to contribute to smart, sustain- research institute, the Joint Research Centre, JRC. able and inclusive growth throughout Europe2. This The platform is located in Seville, Spain. will rely on a regional gathering of power behind the One of the aims of the Research and Innova- most promising areas for innovation, entrepreneur- tion Strategies for Smart Specialisation – RIS3 is to ship and growth. Regional expertise and resources bring together business, academia and knowledge in relation to the rest of the world and current institutes, citizens, women and men, girls and boys trends shall be taken into account. and the public sector with the main goal of using

6 SMART SPECIALISATION À LA VÄRMLAND

This strategy shall serve as a tool for sustainable Värmland’s interpretation of smart specialisation: for which the public sector is the customer. For and inclusive development and growth in Värmland. example, this could involve bio-based products The aim is for the strategy to be a concern for all Smart specialisation means smart ways to organise that replace fossil-based products in health care or key groups in Värmland that work with innovation and develop existing regional assets9 in order to the introduction of digital services in the care and within Värmland’s specified areas of specialisation, create value for users and society. education sectors. as well as for actors elsewhere in , in Europe and globally. In short: Smart ways to create value! Gender Mainstreaming The strategy is a tool which aims to help Värm- The goal has been to create a gender-integrated land to focus on realising our goals. It serves as a Users could be customers in the form of innovation strategy for smart specialisation. This is means to reveal our potential for innovation and consumers or companies in value chains. They the first time in Europe, as far as we know, a strat- growth. This will in turn aid us in profiling and in could also be users of various types of services, for egy for smart specialisation has been undertaken building up Värmland as a brand name. Using this instance within publicly financed organisations or along those lines. strategy, we can gain greater visibility in Brussels the non-profit sector. The concept of value in this There is a correlation between companies and and take a more authoritative approach in discus- context includes the users’ expressed and latent industries with more gender equality, and sions. needs. There can be a huge difference if the user or profitability11. Therefore, it pays to attach a gender Smart specialisation involves creating competi- customer is a woman, man, girl or boy. Creating val- perspective to innovation and growth. This can tiveness within a range of areas and also helping to ue for society is also a way to contribute to finding have a number of different reasons and vary from face societal challenges. The specialisations there- solutions to societal challenges10. industry to industry. Gender equality lead to better fore deal not only with what we are good at but also In order to be smart in creating value, we have decision-making in the company. with what we are good for. For this reason we have created a horizontal specialisation: Value-creating Calculations indicate that gender-mixed person- chosen to formulate the specialisations as a number Services. This specialisation shall permeate the nel groups in 2012 had twice as much of a chance of value propositions - promises to customers/users procedure in the five other specialisations so that of exceeding management’s expectations of their and to society. we always base the innovation work on a customer performance as personnel groups consisting solely and user perspective. of male staff members. Having women in company The starting point has been to create an inno- management increases the company’s profitability. vation strategy for business. However, some of the Equality improves the opportunities for the entire specialisations have entailed dealing with innova- personnel to be able to develop its full potential. tion of the public sector’s own services or products Staff diversity allows companies to interface

7 more with different segments of society and with only awareness of gender is prevalent, but also a INNOVATION a larger recruitment base. The probability for in- direction towards a more gender-equal innovation Innovation is, succinctly, the entrepreneurial process novation is almost twice as high in a company with and corporate climate in Värmland. We have also which generates an idea, a value.Here, the definition gender equality among the staff. applied a gender perspective - an understanding developed by the OECD is used. One of the societal challenges of the strategy of which attitudes and traditions are of impor- ’An ’innovation’ is the implementation of a new is to contribute to finding solutions for: Europe in a tance within various areas. The consequences that or significantly improved product (good or service), Changing World - An Inclusive, Innovative and Re- different decisions have for women, men, girls and or process, a new marketing method, or a new flective Society, in this case, involving both women boys has been a central theme in our assessment of organisational method in business practices, work- and men thereby to contribute to more innovation. inclusive, sustainable growth. place organisation or external relations. In Värmland, as in the rest of Sweden, the labour During the work on the strategy, there has been market is heavily segregated by sex. This is also true a discussion surrounding the strengths and chal- THE RIS3 PROCESS within industries in which women and men start lenges existing in relation to gender equality in the their own businesses. A corresponding fenomen can choice of prioritised areas for the future strategy. also be found in the academic world. As said earlier Policy analyses and other preparatory studies have there is a correlation between more gender-equal been studied by experts on gender equality. In the companies and industries, and profitability. It is prioritising efforts, gender has been included as a Analysis therefore important to have a gender perspective in variable to be taken into account in the develop- terms of innovation and growth. ment of areas of strength. The participation and Policy For growth to be sustainable - as EU 2020 also expertise of the people behind the process has Process indicates - then it must also be gender-equal and also been important - even if it has been difficult to Mix inclusive for everyone in Värmland, both women govern volunteer-based participation. and men. The strategy shall indicate the current These efforts have produced a process model RIS3 situation for women and men in Värmland’s inno- for how gender-integration of innovation strategies vation climate, as well as the consequences of the could conceivably be achieved. It will now undergo prioritisation in the strategy. evaluation and improvement. The Värmland Region Monitoring Vision The Värmland Region works in the following is happy to share the lessons learned. way with regard to the gender-integration of the strategy. Analytical methods ensure that a gender Priorities perspective, i.e., the number of women and men, has been applied to the greatest extent possible Figure 1. The RIS3 process is a six-step process. and that the gender statistics have been a vital tool. We have applied a gender equality perspec- tive throughout the mapping efforts in which not

8 The following steps are suitable in order to build a 6. Plans for learning and follow up in order to In this phase of the work, stages 1-4 are imple- regional strategy for smart specialisation12: monitor how well the strategic goals in the mented. In the next phase, action plans for each 1. Analysis of the region’s strengths, paying par- strategy are being achieved. One example of a respective prioritisation are developed along with a ticular attention to regional assets, European working method is using peer reviews in which plan for follow-up, assessment and learning (mon- and international competitiveness and links the region is matched with other regions. itoring). to other markets, as well as entrepreneurial dynamics. 2. Anchoring and participation from the market and customer viewpoint. In addition to the traditional Triple Helix work, the society and customers must also be involved in order to gain as broad a view as possible. This can be done through direct involvement or indirect ANALYSIS – ABOUT VÄRMLAND AND THE involvement through interest organisations. 3. Formulating an overall vision for the region 4. Identifying those areas which are to be pri- REGION’S CONDITIONS FOR INNOVATION oritised by matching a top-down perspective with a bottom-up one. This is where a smart coordination and clustering of overarching, The Värmland region is part of metropolitan regions. Compared with other regions, broad goals are introduced, around the exist- the NUTS II region, North Central Värmland is home to large tracts of forestland, ing strong niches and organisations existing in Analysis Sweden. Värmland borders which is promoted as an asset for the region and its the region. and the Oslo region and is thus a forest industry in the Värmland strategy. 5. Plans for implementation. The strategy is im- border region in the EU. Proximity The public sector provides most of the jobs plemented through action plans within which to Oslo is an important condition for business and in Värmland, followed by the manufacturing and it is important to provide room for experimen- employment. steel industries and retail trade industry. The labour tation. The population of the region in 2014 was market is gender-segregated both horizontally 274,691 inhabitants and the population grew by and vertically, which means that women and men 0.5% from 2009 to 2014. Värmland is facing impor- find themselves in different sectors and industries, tant challenges, such as slow population growth, a and in different positions within one and the same low level of education, low wages and a low degree industry or workplace. In the case of business and of employment compared to the Swedish average. entrepreneurship, most men in Värmland operate Companies in Värmland are dependent on good businesses in farming, forestry and fishing, while communications due to the long distances to the most women run companies offering cultural and

9 personal services. Examples of cooperation and initiatives include: Värmland’s businesses are concentrated • Cluster organisations: Steel and Engineering, around a few dominant industries which also has Compare, Paper Province and Visit Värmland. been organised into • Ten new professorships at Karlstad University Analysis cluster initiatives with strong ties to the clusters. and networks. The • Karlstad University’s prioritisation of five strong biggest industries in research environments of which four have a Värmland are the pulp definite connection to businesses in Värmland. SWEDEN HELSINKI and paper industry OSLO • The setting up of a Grants and Innovation (approx. 4,000 Office at Karlstad University which is part of employees), “Fyrklövern”, a national innovation office for IT (approx. four universities set up by the Swedish govern- 2,000 em- ment. KARLSTAD ployees), steel COPENHAGEN • Innovation platforms: Brobygrafiska and Swe and engi- Flex within flexography and packaging design AMSTERDAM neering (>10 BERLIN as well as the Glava Energy Center in the pho- WARSAW 000 employees), BRUSSEL tovoltaics sector. as well as the hospitality • Innovation Park in Karlstad: bringing together industry which is growing the companies and organisations related to innova- fastest (approx. 3,000 employees). tion and growth. Research and innovation is underway within these Figure 2. Värmland´s location in Northern Europe. • Establishment of SP Technical Research Insti- industries, both within the companies themselves tute of Sweden in the region. and within the academic world. A vital part of any Karlstad University is characterised by a culture • Paper Province winning the national Vinnväxt business network is a well-developed infrastructure of cooperation in which the school regards itself as grant competition, which entails a ten-year na- for corporate services offering everything from ba- an international institution which, at the same time tional and regional commitment to developing sic services to knowledge-intensive buisness servic- has strong connections to the region with many of a forest-based bioeconomy in the region. es, KIBS. These companies often provide services to its research areas matching the business community • The Värmland County Council’s commitment to a number of different industries, which makes them of Värmland. innovation in health care through the Innova- important bearers of knowledge in the region. The regional innovation support system was tion Hub Vivan and Experio Lab, as well as Nor- Karlstad University started off as a teacher developed in stages from the turn of the millennium dic Medtest for raising quality within Swedish training college back in 1843. It became a univer- to the present and consists of public organisations, e-health. sity branch in the late sixties and then a university clusters, businesses, the university and institutes, all This is described in more detail under the heading college. In 1999 it was granted university status. working in close cooperation. “The Innovation Support System” in page 37.

10 The region is politically governed by the Värmland number of business start-ups in the region is low, Värmland have a good capacity for creating innova- County Council (health care), the Värmland County which inhibits the conditions for a dynamic business tion more by relying on technologies and innova- Administrative Board (environmental monitoring, community and the creation of new jobs. tions, which have already been developed else- plans, corporate support) and Region Värmland (re- Companies in Värmland have relatively low where and less by developing entirely new product gional development, public transportation, culture overhead costs related to research and develop- and process innovations themselves. This would etc.). ment, but costs for innovation not associated with result in Värmland being described as a “follower” R&D are high. This is an indication that companies in region in terms of innovation. INNOVATIVENESS A study of a number of innovation indexes13 indi- cates how Värmland positions itself as an innovation region in Europe. The overall picture is that inno- vation in Värmland is low compared with Sweden as a whole, but this should be considered in light of the fact that Sweden is one of the top nations in the world in the area of innovation. In fact, in some respects, Värmland is ahead of the EU as a whole. It is also worth noting that Värmland’s collec- tive index value has remained relatively steady from 2004 to 2010 and indicates a comparatively good balance between the three main parame- SOCIETAL CHALLENGES ters: fundamental conditions, market capacity and renewal capacity. The renewal capacity parameter has undergone the strongest growth and it is also To have societal challenges as a starting point for forestry, marine and maritime and inland water Värmland’s best relative position. selecting specialisations is a means of ensuring that research and the Bioeconomy. Today, Värmland offers favourable conditions there will be a demand for our solutions for a long • Secure, clean and efficient energy. for achieving innovation in the region but the ratio is time to come. This also aims to create a sense of • Smart, green and integrated transport. low in relation to abilities. In other words, the region commitment among the actors and finally a means • Climate action, environment, resource efficien- has a well-developed innovation system but the of contributing to the Europe 2020 strategy. cy and raw materials. output is relatively weak. This is mainly due to the In this strategy, Region Värmland has opted for • Europe in a changing world - inclusive, innova- level of education in the region, an unbalanced busi- addressing the societal challenges identified in the tive and reflective societies. ness community and a low proportion of entrepre- EU research programme, Horizon 2020: • Secure societies - protecting freedom and neurs to convey knowledge and expertise onto the • Health, demographic changes and wellbeing. security of Europe and its citizens. market in the form of new goods and services. The • Food security, sustainable agriculture and

11 THE PROCESS

The task of developing a regional entrepreneurship within the area and whether it was percent were women and just over 60 percent men. research and innovation strategy possible to contribute to solutions for dealing with So far, in the time for printing this document, Process for smart specialisation was as- societal challenges within the area. the work has progressed through the first four signed by Region Värmland’s coun- In order to gain an idea of the international phases in the Seville platform’s planning model. cil when it approved the organisa- positioning for these areas, a business intelligence These phases are Analysis, Process, Vision and tional plan for 2014. The work was then conducted analysis was conducted. Five to six areas remained Priorities. What remains to be done during the from March 2014 up to and including May 2015 as candidates for smart specialisation. In some of Process phase is to supplement it with how the Developing and producing a document of this type the workshops involving the concerned groups, implementation of the strategy will be organised. is an assignment carried out within a context of swot analyses were done and then visions were for- In the Policy mix stage, we need to draw up plans previous and existing processes, programmes, plans mulated along with proposals for efforts to achieve of action including goals. In the final phase a plan and strategies. It is possible to track the efforts and the visions. In the end, the work produced propo- for monitoring, including follow-up, evaluation investments in industries, as well as cluster initia- sals for six smart specialisations. One transverse and learning needs to be drawn. This also includes tives and research environments established at the specialisation: Value-creation Services, and then re-evaluating prioritisations at regular intervals. first regional growth strategy in 200014 by way of, five vertical specialisations: a Forest-based Bioe- for example, the milestone represented by Värm- conomy, Advanced Manufacturing and Complex ORGANISATION AND ROLES land’s participation in an OECD project15 from 2005 Systems, Digitalisation of Welfare Services, Nature, Regional development often involves promoting to 2007 up to today’s Värmland’s strategy. Culture and Place Based Digitalised Experiences as areas where one individual actor is insufficient Work on this strategy therefore began with a well as Systems Solutions with Solar Power. for solving a problem; finding a solution requires review of existing analyses, an updated statistical In conclusion, a gender analysis was done along the participation of many. Furthermore, the wider analysis of the strong industries in Värmland and with a gender adaptation of the strategies. context of globalisation, foreign ownership of a review of the strong research environments, Researchers from the academic world, managers companies, economic integration and increased primarily at Karlstad University. These analyses then and employees from cluster companies, cluster importance of knowledge and technology entails a formed the basic information for formulating a num- organisation boards and employees, employees in reduced level of control. ber of areas which were considered robust, because institutions, management of innovation platforms Regional leadership in such an environment they are a combination of a competitive business and employees in public organisations have taken puts a number of factors to the test including the community and outstanding research. Other factors part in the process through workshops and through level of knowhow, relationships and networks at a considered included: the need for growing markets, consultations of draft documents. A total of more local, regional, national and international level, the actors in the region who could be a driving force, than fifty people participated, of whom almost 40 ability to mobilise, guide and negotiate, financial

12 opportunities, communication and processing expertise, gender integration etc. In addition, the ability to delegate responsibility and authority based on the requirements of the assignment is key. It is necessary to be able to shift responsibility for initiatives to actors with more detailed know- ledge of what is required and what it is possible to achieve. Essentially, regional leadership must be of the kind which affirms the entrepreneurial disco- very process. At the same time, the democratic perspective must be taken into consideration. FOTO The Swedish government has established an innovation council headed by the Swedish Prime Minster and consisting of representatives from the government, business, research and labour market sectors. The Government Offices of Sweden would encourage the regions to establish forums with whom the national innovation council can have a dialogue. By European standards, Värmland is a small region. As a result, the number of actors in the innovation support system is limited. There is a strong culture of cooperation and many of these actors know one another. The region has therefore neither the capacity nor the need for an extensive formal organisation for implementation of the strategy. Since Värmland has established cluster orga- nisations with clear connections to the speciali- organisation and governance of the implementa- and innovation, but which can also encompass sations, there are actors with the ability to take a tion. education and training. The aim here is for the leading role in the implementation stage. In parallel with the planning work, Karlstad agreement to be based on specialisations in VRIS3 Part of the task of developing proposals for University and Region Värmland will draw up a and in that way to become a part of the implemen- action plans will be to offer suggestions on the partnership agreement, primarily within research tation of the strategy.

13 VISION

The Värmland strategy’s vision: The prioritised area More and Stronger companies Värmland - a better life16 is an ima- includes in turn four measures: Vision ge of Värmland as it could appear • More Research and Innovation in 2020. • Competitive Clusters The following is a description of • Strong Entrepreneurship and Business Deve- life in Värmland in the year 2020 drawn from the lopment strategy: • A Resource-efficient Society In a green, open border region, we create compa- VRIS3 is first and foremost a concretisation of the nies and jobs by providing good education for More Research and Innovation Measure, but also everyone from pre-school to university. The future contributes to the other three measures, Competiti- and well-being of our children is always in focus. ve Clusters, Strong Entrepreneurship and Business Relying on our ingenuity and the forest Development, as well as a Resource-efficient business as an industrial base, we develop A BETTER LIFE IN VÄRMLAND Society. new products and new industries of a world class calibre. This is also the vision that VRIS3 strives to attain. In order to achieve this vision, four prioritised areas have been set out in the Värmland Better Quality of Life for All strategy. Better Communications and a High Level of Competence at All Levels are the More and fundamental conditions for regional deve- Stronger Companies lopment. More and Stronger Companies will enable the achievement of a Better Better A High Level of Quality of Life for All. This latter area Communications Competence at All Levels Figure 3. The four prioritised areas in the Värmland strategy. Better Communications and a High Level is closest to the vision of a Better of Competence at All Levels are the fundamental Life in Värmland. conditions for regional development. Having More and Stronger Companies is the enabler Horizontal and fundamental perspectives: social, environmental and for the achievement of Better Quality of Life for All which in turn is decisive for the vision economic sustainability dimensions as well as regional leadership, internationalization and regional joint planning. - A Better Life.

14 These four measures shall lead to More and Strategy, there is also a vision for each specialisation MORE AND STRONGER COMPANIES Stronger Companies and even more and better jobs pointing to a desirable direction for a defined area. and an economy in Värmland which makes good These visions shall provide support in the develop- More research Strong entrepreneurship living conditions possible. With that, VRIS3 helps to ment of result-oriented action plans and serve as and innovation and business development reinforce the prioritised area, namely, Quality of Life a cohesive bond for individuals and organisations for Everyone. This, in turn, links directly to the vision who are involved in their own respective speciali- Competitive A resource-efficient - Värmland - a Better Life. sation. The visions are presented together with the clusters society In addition to the vision set out in the Värmland specialisations.

Figure 4. Measures within the prioritised area More and stronger companies in the Värmland strategy.

VÄRMLANDS´S SMART SPECIALISATIONS

In order to determine which areas of companies, innovation capacity, how well busi- specialisations are formulated as a number of value are to be prioritised within the ness is organised within cluster organisations and propositions, promises to customers/users and for Priorities strategy, several criteria have been networks, entrepreneurial dynamics, opportunities meeting societal challenges. To succeed at this we of importance. The potential for for development of a gender-equal business climate configure regional resources into smart, value-cre- earning international recognition and to what extent societal challenges are met. ating constellations. We have also formulated the within both business and research have been vital The specialisations involve what we are good at, value-added this can offer companies and research- criteria. Other criteria have included a critical mass and also what we are good for. This means that the ers to participate in these constellations.

15 Figure 5. Model for devising smart specialisations. Strong industries and strong research groups coupled with other more market-driven aspects are combined in prioritised smart specialisations. Priorities

e-Creating Serv Valu ices

Forest-Based Bioeconomy MARKET RESEARCH Users Social challenges Markets with growth potential Entrepreneurship PRIORITIES

Digitalisation Advanced Manufacturing We have based this on areas of strength, which of Welfare Services and Complex Systems have been chiselled out over the course of a decade and a half of regional growth work. These have then undergone various types of analysis17. Nature, Culture and System Solutions Thus, the combinations of areas of strength and Place Based with Photovoltaics strong research groups have been formed. These Digitalised Experiences have then been assessed based on the criteria related to the opportunities for competitiveness in an international perspective18.

BUSINESS STRUCTURE

16 Priorities

SERVICE RESEARCH AND SERVICIFICATION

Strength Pulp and Cultural and Newly Newly areas paper and Steel and Hospitality Food Solar Packaging IT and Telecom creative identified identified packaging manufacturing industry products power industries area area material

PRIORITISED SPECIALISATIONS SPECIALISATIONS UNDER QUALIFICATION FUTURE ADDITIONS

VALUE-CREATION SERVICES Smart specialisa- tions Advanced System Digitalisation Manufacturing Nature, Culture and Place Based Solutions New smart New smart Forest-based bioeconomy of Welfare and Complex Digitalised Experiences with Photo- specialisations specialisations Services Systems voltaics

Image 6: Correlation between areas of strength in business and smart specialisations.

17 VÄRMLAND’S SPECIALISATIONS GENDER AND THE SPECIALISATIONS Digitalisation of Welfare Services The analysis and prioritisation work has produced The export industries in Värmland are dominated Health and social care is a sector with a high five areas for smart specialisation, all with one by men along with their male values and codes. It is number of female employees. By turning to men, or more industrial directions, as well as the first therefore crucial for Värmland to develop a labour the county council expands the recruitment base in Priorities specialisation which is to be included in the other market which is attractive to both women and men. order to meet the need for more nurses. specialisations. If we do not, there is a risk that living and working in The IT industry is dominated by men. Compare, Värmland will not be attractive for younger women a cluster organisation, works on equality and ways The first and transverse specialisation is: in particular. As younger women, more often than of attracting women to the industry. For example, • Value-creating Services men in the same age group, have higher education they have a network for women. qualifications, the region risks losing a valuable The five subsequent specialisations in order of addition to the workforce. For this reason, one goal Advanced Manufacturing and Complex Systems priority are: is to use smart specialisation to help development in Male-dominated industries. Steel and Manufacturing • Forest-based Bioeconomy a number of dynamic industries which, as a whole, has worked with equality. Servitisation boosts the • Digitalisation of Welfare Services will help create a balance in the labour market by appeal to women. • Advanced Manufacturing and Complex Sys- creating jobs that appeal to both men and women. tems The following reasoning has been applied in the Nature, Culture and Place Based Digitalised Expe- • Nature, Culture and Place-Based Digitalised devising of the smart specialisations: riences Experiences Many tourist-oriented companies are attractive to • System Solution with Photovoltaics Value-creating Services both women and men. Parts of the service sector appeal to women. Servi- In addition to the fact that the region has a robust tisation enhances the appeal to women in male-do- System Solution with Photovoltaics business climate and relevant research, other minated industries. Male-dominated industries. An early initiative which elements are necessary as lubricant and process has not yet prioritised gender equality. Servitisation managers in the implementation, including cluster Forest-based Bioeconomy boosts the appeal to women. organisations, innovation environments and institu- Male-dominated industries. Paper Province has Servitisation may not be sufficient to attract tes. These will become important moving forward. worked on equality. Servitisation boosts appeal to women to male-dominated industries. Moreover, it women. would be necessary to review the education women tend to choose and adapt business accordingly. Various efforts are needed to mix the labour market vertically and horizontally, which also includes actions focusing on men.

18 SPECIALISATIONS WITH CLUSTER ORGANISATIONS AND INNOVATION PLATTFORMS

ADVANCED NATURE, CULTURE Priorities FOREST-BASED DIGITALISATION OF SYSTEM SOLUTIONS MANUFACTURING AND AND PLACE BASED BIOECONOMY WELFARE SERVICES WITH PHOTOVOLTAICS COMPLEX SYSTEMS DIGITALISED EXPERIENCES

VALUE-CREATING SERVICES

SP

Paper Province Compare Steel and Engineering Visit Värmland Glava Energy Centre

SP Experio Lab SP Materials and Nordic Innovation County Council Design Centre Food Arena Packbridge Värmland

Broby Grafiska SP IUC Form in Värmland Industrial Development Sweflex Centre Compare Innovation Hub Vivan Innovation and Värmland Energy Technology Centre Office Nordic Medtest in

Regional Wood Centre in Northern Värmland

Grants and Innovation Office – Karlstad University

Figure 6. Smart specialisation in relation to cluster organisations, innovation platforms and institutes.

19 SPECIALISATIONS WITH THE EXCELLENT, STRONG RESEARCH ENVIRONMENTS AT KARLSTAD UNIVERSITY

Priorities FOREST-BASED DIGITALISATION ADVANCED NATURE, CULTURE SYSTEM BIOECONOMY OF MANUFACTURING AND SOLUTIONS WELFARE SERVICES AND PLACE BASED WITH COMPLEX SYSTEMS DIGITALISED PHOTOVOLTAICS EXPERIENCES

VALUE-CREATING SERVICES

SERVICE RESEARCH CENTRE

INTERACT INTERACT Computor KuFo CMM (Organic solar cells) Science Characterisation DISCO and models PRISEC CMM of materials SERG (Silicon-based solar cells)

Figure 7. Smart specialisations in relation to excellent (orange) strong (blue) research environments at Karlstad University.

20 In 2014, Karlstad University prioritised its main Each specialisation is described by a headline to the development of the specialisation. These may research environments. Two earned the highest and a piece of text in which the first sentence shall need further development. The elements, which status as excellent research groups and three were capture the core of the specialisation. After that, a are missing, are also described here. These are considered strong research groups with the poten- vision is presented which describes the direction elements that Värmland needs to build on or to find Priorities tial to become excellent within four years. These towards which the time horizon will be in 2025. partners for in Sweden or Europe. environments are included in the smart specialisa- This is followed by a description of The Road to the The actions listed here can be seen as examples. tions. There are also other research groups19, both Vision. Those assets which render Värmland uniqu- Not all of these are likely to be implemented and formal and informal, as well as individual resear- eness are described under the heading Assets to many of the proposals must undergo further study chers who are associated with the specialisations, Nurture and to Develop. This could involve core ex- before they are introduced, while new ideas will institutes, higher education institutions - Bergskolan pertise and companies with world-class knowhow, crop up as well. The main purpose is for the propo- and companies’ R&I environments20 with resources critical mass and a diversity of actors, cultures and sals as a whole to provide a picture of what needs of significance to specialisations. standards. We need to nurture these in Värmland to be done. and develop them to achieve our vision. Under the When the word “we” is used hereinafter in this READING INSTRUCTION heading, We Also Need This to be Able to Achieve document, it means all of us working together who The presentation of the smart specialisations the Vision, there are a number of assets which may can transform the strategy into reality! follows the same set up. not be unique or world-class, but which contribute

21 I. VALUE-CREATING SERVICES 21 Priorities

Given the progress already made in Värmland within pressed and latent needs, and it makes it possible to tied to the region’s specialisations become models research related to service innovation, service de- identify common problem formulations, challenges both nationally and in Europe. The organisations sign and servitisation, we continue to develop rese- and objectives, as well as providing regional actors create new values for users and for society, usually arch and apply it to enhance the abilities of private with the tools needed to be able to collaborate, within traditional industries. This has also resulted in and public actors to contribute to value creation for create and devise appealing solutions. the fact that traditionally male-dominated industries customers, users and society as a whole. Radically new services possess a transformatio- are increasingly attracting more and more women. By working with the other areas of strength in nal power to convert value chains. In this way, new Innovation Park in Karlstad has a reputation for the region, emphasis is placed on the value creation services can transform traditional value chains and service innovation and that reputation has served of the specialisations, generating innovation. create value networks23. as a magnet for companies. Moreover, all four sub- Servitisation is a development process aimed to This requires deep insights into the behaviour sidiaries in the state-operated RISE group, Research gain new insights into users and how best to sup- and values of the users, as well as the situations in Institutes of Sweden, have moved to Innovation port their value-creation processes. This requires an which they live. Park and have operations within the services sector. overall perspective of the company or organisation Karlstad University has been the leader in and all the associated resources available. Sweden for many years in offering service design Servitisation is the business and public organi- VISION education. sations’ long-term aim, striving towards enhanced We begin with the customer experience and work We have experienced the power of service inn- customer values relying on a basic service app- our way back toward the technology – not the other ovation through the transformation of a few value roach. Factors which drive servitisation include way around24. For Värmland, this entails placing the chains which has given rise to another business competition, profitability, globalisation and dere- focus on value-creation processes for users, which logic. In some cases, this has led to the introduction gulation. Servicifying a company means supporting serves as a compass for technological developments. of newly manufactured products. its customer’s core processes, thereby producing This way, we become even smarter in devising and Businesses are starting up due to the dynamic benefits such as increased customer awareness and carrying out our specialisations. service innovation environment that exists in the need-determined innovations. region. Service design involves personnel, users or customers working together to design services ABOUT THE VISION ROAD TO THE VISION which create value in the everyday lives of the users. Service design and servitisation have had a wi- Our unique assets to nurture and develop Design is a tool, and an approach, which enables despread impact in the business and public sectors • CTF - the Service Research Centre - is one of solutions to be developed based on the users’ ex- in Värmland. Organisations from Värmland that are the world’s leading research groups within

22 service research25 and constitutes Värmland’s preeminent asset within the sector of services. • The SP service expert group in Karlstad forms part of SP, the Technical Research Institute of Sweden. Its main role is to transform scientific knowhow into reality, or in other words, deve- lop support of servitisation as a business. • Experio Lab26, part of the County Council in Värmland, is the national centre for patient-re- lated service innovation.

We also need this to be able to achieve the vision Some examples: Research and innovation • Introduce or further develop applied service research together with the other specialisa- tions. • Continue to develop methods for joint produc- tion of service research with companies and public organisations. • Increase cooperation between CTF and the SP within the area of servitisation. examples in Värmland in the areas of remote service expert group. • Commit to winning (or becoming a part of the control, training/education, test operation and • Involve Compare27 companies with the aim of winning consortium) Vinnova’s competition for services for operating and maintenance. using ICT as a tool for service development. strategic innovation within service innovation. • Develop companies within areas for knowled- • Increase cooperation and knowledge ex- Business development ge-intensive buisness services. changes with other Swedish and international • Develop a service laboratory, such as Bioeco- Public sector universities and institutes in the area of service nomy Service Innovation Lab, and others. • Set up several organisations with similar work research. • Companies from Värmland should participate methods such as Experio Lab, or expand this • Build a stronger level of collaboration with in R&I projects related to service innovation. operation to include more entities and areas. consulting firms, which specialise in service • Conduct a development project with compa- • Use procurements so as to drive the develop- development and service design. nies related to servitisation and service inno- ment of services. • Build collaboration outside of the region with vation within various specialisations. There are actors who have progressed considerably

23 II. FOREST-BASED BIOECONOMY Priorities

We demonstrate bioeconomy throughout Värm- community for value creation with a forest-based procurements and a rich variation of innovations are land through innovation and also by increasing the bioeconomy as a common ground. all interesting objects for study visits and demon- selection and demand for forest-based products strations. This is where examples of how society and services. At the same time, we blaze a trail for switches over to a sustainable development built converting to a fossil-free and sustainable society. VISION on a forest-based bioeconomy and on the forest’s Our fundamental strength is a sustainable forest With a more than 150-year-long history within paper ecosystem services, should be showcased. We also industry and high-quality raw materials. Forest manufacturing, we conceive creative meetings want this to lead to strategic collaborations with industry processes and products are the spearhead between tradition and renewal and show the way European partners. of our industries. They include cellulose fibre-ba- using bio-based innovations originating from the We expect to witness a number of innovations sed packaging materials, tissue paper technology forest to foster a fossil-free and sustainable society. and larger investments which will increase the value and a knowledge- supporting consulting sector added for both existing products as well as for which, together, have the expertise and capacity for secondary production streams. industrialising and automating processes for value ABOUT THE VISION By opening up and involving more industries, creation from wood. Värmland is a large-scale demonstrator, to which more women have been drawn to a sector which The advances in packaging, coatings and people from all over Europe and the rest of the traditionally is male-dominated and masculine-co- barriers, printing technology, energy efficiency, world come to learn about and witness the achieve- ded. purification technology, pulp technology, cellulose ments possible when society, business, academia Karlstad University is a leader in Europe within derivatives, separation and processing technologi- and the citizensry, women, men, girls and boys, one or two research areas central to a bioeconomy. es, regional development and service research are come together for a common vision. This vision is The university is renowned as a leading institute our main areas of strength within academic research for a sustainable development based on the region’s within interdisciplinary research with an empha- linked to bioeconomy. This provides a good base main areas of strength and identity - a forest-based sis on bioeconomy, and it participates in projects for achieving alternative fibre-based products and bioeconomy. within Horizon 2020, even as a leading partner in increased value-added from both existing products It shall be possible to come to Värmland to learn some cases. and processes from secondary streams. how to develop an innovation system based on clus- Värmland boasts a rich diversity of research This is possible due to the fact that Värmland ters. Research efforts, international networks and efforts, innovations processes, industrial applica- has a world-leading cluster within pulp and paper collaborations, strategic business start-up efforts, tions, systems solutions, investments (including PPP technology - Paper Province - which gathers innovation processes, investments, industrial appli- solutions28) and product or service innovations. together business, research, education and the cations, system solutions, innovation-driven public More than 100 member companies pay a total

24 of SEK 3 million annually in membership and service are attractive to students from Sweden and the rest nable society. The primary example is that interest fees to Paper Province. Companies also help finance of the world. in the broader perspective of a circular economy is R&I projects together with Karlstad University and We have also seen a greater commitment and firmly rooted in Värmland. institutes to a total of SEK 20 million every year. participation among the region’s population in acti- The educational courses linked to bioeconomy vities, which contribute to the transition to a sustai-

25 ROAD TO THE VISION Assets to nurture and to develop • Major access to raw materials with long fibres. • World-leading companies within paper tech- Priorities nology. • Paper Province as a powerful cluster engine and unifying player of the businesses and owner of the Vinnväxt initiative. • Diversity, size and density of actors within the pulp and paper technology sector. • Leading edge expertise within cellulose fibre-based packaging materials. • Manufacturing and development of tissue machines. • Sustainable processes for fibre-based pro- ducts. • Effective purification and utilisation of secon- dary streams within wood component-based processes. • Access to world-class service research through CTF and SP. • Infrastructure for handling raw materials on a large scale. • The industry as a powerful user - advancing developments within energy and resource efficiency. • Excellent opportunities for testing new ideas within the industry. • Company R&I environments such as Bille- rudKorsnäs Pack Lab and Box Lab, BTG Pulp & Paper Sensors AB, Stora Enso Research, Valmet Fibre plus Valmet Tissue Research and Development Center.

26 • Excellent access to competent development from regional players in a quadruple helix circular economy in the region. personnel. spectrum. In other words from both women • Work actively to set up start-ups and invest- and men and within the organised civil society. ments in the bioeconomy sector. We also need this to be able to achieve the vision Business development • Promote Värmland as a bioeconomy region Priorities Some examples: • Supplement with investments in connection with a forest base. Research and innovation with existing large-scale bioeconoy opera- • Support the build-up of research capacity and • Gather and clarify the research already existing tions such as paper mills, sawmills and district development of education in bioeconomy. linked to forest-based bioeconomy, and deve- heating facilities to achieve different types and • Work to gain improvements in both soft and lop another line of research which can be used degrees of industrial symbiosis. hard infrastructures for a forest-based bioeco- to reinforce the impact and growth potential of • Develop mills as environments for innovation nomy in the region. a bioeconomy further. and new start-ups. • Develop methods for transition, everything • Develop the institute sector in the region with a • Use the knowledge of industrial plants already from regional planning to driving a more connection to bioeconomy and services. available in Värmland for testing new techno- process-oriented development strategy for • Establish and develop training courses and logies. converting to a bioeconomy. research projects at Karlstad University in or- • Strong involvement in networking and policy • Take responsibility at an overall level for der to stimulate knowledge development and development related to bioeconomy in Sweden initiating, coordinating and gaining continuity innovation within bioeconomy. and Europe. in the transition to this development through • Develop bioeconomy as a cutting edge area for • Organise marketing and a “receiving appara- knowledge and research development, which Inova and Innovation Park. tus” for technical visits and educational tourism takes advantage of all types of players in the • Build up a well-developed technological pilot within forest-based bioeconomy. region. environment with the right infrastructure for • Further develop the companies gender equali- upscaling innovations. ty efforts. • Strong user and customer perspective in the Public sector development work through the establishment • Region Värmland is increasing its commitment of a service-design-focused bioeconomy to bioeconomy and circular economy in the EU laboratory in close collaboration with the pilot arena29 and for policy development in these environment. areas in Sweden and in the EU. • Develop knowledge on forest ecosystem • Procurement of goods and services which services for implementation in business and in stimulate development in bioeconomy in society. Värmland • Develop research related to how it is possible • Invest in bio-based systems for fuels and ener- within bioeconomical efforts to include and gy, recovery and recycling. take advantage of expertise and perspectives • Increase knowledge about bioeconomy and

27 III. DIGITALISATION OF WELFARE SERVICES Priorities

We are developing and testing welfare services in ABOUT THE VISION membership and service fees to the cluster organi- actual environments with users: women, men, girls The percentage of satisfied patients, woman and sation Compare. and boys as co-creators to provide varying types of men, young and old is higher in Värmland than By focusing research on digitalisation in schools, solutions, many of which are digital. in the rest of Sweden thanks to the fact that we the use of ICT as an educational tool as well as tool The public sector is an important user and are so skilled at understanding the expressed and for communication and ICT as an administrative procurer of these processes. This results in better unexpressed needs of patients and also due to our support has grown in the region’s schools. This is and more effective care, education and other social ability to adapt the services. In addition, healthcare beginning to become apparent in students results. services and ultimately happier, more competent costs per patient are developing more positively The County Council’s brand in Värmland is now and healthier citizens. in Värmland than in the other counties in Sweden. more associated with innovation to the same de- Companies will have access to real development This is probably because we succeeded in making gree as it is with the delivery of health and nursing and testing environments where Nordic Medtest patients and their relatives co-producers of the care care, which in turn has boosted the attractiveness of and Experio Lab are examples of strong centres process and also because we developed digital the Värmland County Council both as an employer for expertise within the area. Add to this a strong tools which have resulted in better services needing and as a partner. One effect of this is that more men ICT cluster which brings together businesses and less staff resources. with health care training and/or education have a university at the leading edges within computer With its base in Värmland, Nordic Medtest has applied for work to the County Council in Värmland. science and service research. developed into the obvious centre for expertise in Another interesting development is that women For researchers, we offer a multi-disciplinary quality enhancing measures in Swedish e-health. in the healthcare sector are receiving IT training and scientific environment permitting the gathering of Partly as the result of this we ensure that start- some of them are in fact switching industries. unique data in which nursing, school developme- ups are connected to healthcare ICT services. In Karlstad University has clear interdisciplina- nt, IT and service development welcome patients, addition, a number of Värmland ICT companies ry connections between research and education students, residents and society in the development have products within the health care sector, but also involving areas such as healthcare, culture, teacher of an entirely new value creation processes. within the schools.This has brought male and fema- training, ICT and services. New interdisciplina- le-dominated industries together. This results in the ry approaches linked to the specialisations have VISION meeting of different viewpoints and better patient demonstrated increased external financing for A welfare sector for co-creating citizens with a understanding. research within the concerned research areas. well-developed and safe IT environment as a base Actors within the ICT cluster are becoming more On the whole we see a number of benefits: where the focus is on the human aspect, and the indi- and more coordinated as a result of which more • Companies - better businesses (access to au- vidual’s benefit from new value-creating processes. than 100 companies pay SEK 3 million a year in thentic problems and problem solutions)

28 • Public services - more effective and better cooperation throughout Värmland. within ICT-based healthcare services in order • Research - unique data We also need this to be able to achieve the vision to meet a strong market which with high • Society - reduced costs Some examples: demands. • Patients - healthier faster Research and innovation • Pilot activities aimed at procurement entities Priorities • Students - better learning • Further expansion of collaboration between to enable pre-commercial procurement within • Citizens - better social services researchers within healthcare, education and healthcare. teaching, culture, services and IT. • Develop testing and demonstration efforts in ROAD TO THE VISION • Develop value-creation processes, which schools. Our unique assets to nurture and to develop involve understanding the values which are Public sector • An ICT cluster with experience in consolida- important for users (and other interested • Further coordinate the Värmland County Coun- ting power for companies for new business parties). These values will become the basis for cil regular development activities with Experio opportunities. determining what needs to be renewed. Lab, Innovation Hub Vivan and Nordic Medtest. • Expertise within the service design methodo- • Initially conduct studies, identify research • Continue to develop and implement e-health. logy (SP). topics within e-health connected to Nordic • Develop the roles for women and men who use • Service design within the healthcare sector Medtest30 and build a network within this area. healthcare and their potential to become more (Experio Lab). • Develop healthcare and nursing research at of a co-producer in the healthcare processes. • Access to healthcare environments (Experio Karlstad University and at the Värmland Coun- • Coordinate gender integration with the deve- Lab, County Council in Värmland). ty Council. lopment of services. • Expertise related to testing of IT systems. • Develop research and digitalisation in schools, • Develop the system of care levels in order • Established testing environments for healthca- closely linked to teacher training at Karlstad to distribute healthcare resources in a more re IT systems (Nordic Medtest). University. efficient manner. • IT related security research, mainly personal Business development • Develop cross-border care coordination and integrity and transparency (computer science • Spread and apply knowledge on interdiscipli- cooperation between different care providers. at Karlstad University). nary research methods surrounding patients as • Establish a Public Service Innovation Labora- • Research within IT communication perfor- co-producers of care processes, often with the tory aimed towards healthcare services and mance for applications of distance (computer assistance of design companies related services. science at Karlstad University). • Build up a test bed within the public sector in • In the long run, to broaden the content in the • Service research (CTF at Karlstad University). order to be able to test and implement new so- Public Service Innovation Laboratory concept • Knowledge of how to conduct research and lutions quickly (Public Service Innovation Lab). to include other municipal sectors. testing in real environments (CTF). • The Compare ICT cluster develops its position • Develop pre-commercial procurement within • Research within transformation through servi- as a coordinator and driving force behind the the healthcare sector. ces (CTF). co-creation of new ICT-based social services. • Work on the digitalisation of schools. • Well-developed municipal IT environment with • Increase the business exchange with Norway

29 IV. ADVANCED MANUFACTURING AND COMPLEX SYSTEMS Priorities

We develop and offer energy and resource-efficient Through collaboration with Paper Province, and well respected within the Vanguard Initiative systems solutions and components for, primari- there is a special emphasis on products and services and in other national and international networks. ly, heavy vehicles, the forest industry and within in the bioeconomy sector. The regional commitment The new structure of the innovation support renewable energy, energy efficiency and hydrody- to photovoltaics also generates new opportunities system within what used to be the domains of Steel namics. for innovative engineering products32. and Engineering and IUC Wermland is highly appre- For companies, we offer membership in a clus- ciated by the companies. ter organisation, an open climate of collaboration in Steel and Engineering has expanded its role which we help each other with problem solutions, VISION resulting in 100 member companies now pay development of composite systems and service Värmland is an established partner in the movement SEK 3 million annually in memberships and service offers. We support companies in the introduction for the industrial renaissance in Europe where we fees. of advanced manufacturing methods and other key contribute with leading edge knowhow in advanced Method development for cluster and corporate enabling technologies31 which are relevant for exis- steel, advanced manufacturing, complex systems and development is conducted in cooperation with other ting production. Companies have access to an open servitisation. regions in Europe. In this regard, Steel and Engine- development environment. Standard questions for ering contribute with their many years of experience discussions include high-performance steel, such as working with gender researchers to turn a male-do- tool steel as well as the manufacturing of tools and ABOUT THE VISION minated industry into one that is more attractive to components of this type of steel and the integration As a result of Värmland’s extensive tradition in the women, and how to draw from the experiences and of different systems in the products. steel and engineering industries and the impressive perspectives of men and women in order to achieve For researchers we offer a multi-scientific en- reputation the industry has in the region, reindustri- greater innovation. For example, a commitment to vironment led by material science (characterisation alisation is not needed. Värmland can operate from placing women in leadership positions has resulted and modelling of material) and service research. a level and position of strength. There is the poten- in a multitude of women in managerial positions and We also offer a strong network with an international tial to revitalise industry by increasing servitisation on company boards. business community and society. and introducing Key Enabling Technologies, which The research group, Characterisation and The specialisation contributes to decreased emis- are in line with the policy calling for new industria- Modelling of Materials, CMM, at Karlstad University, sions of greenhouse gases, less use of non-renewable lisation, but also to increase innovation capabilities has been named an “excellent” environment, thus materials through the development of renewable through collaboration between companies, and further strengthening its group. energy, increased energy efficiency in industrial pro- between companies and researchers. This is why or- The research group focused on transformation cesses and a reduction in the use of materials. ganisations such as Steel and Engineering are active through servitisation within CTF is three times

30 larger than 2015 and has a number of research projects together with engineering companies in Värmland. Research at the Bergskolan, LTU (Luleå Univer- sity of Technology) in metallurgy has undergone additional growth and it is felt to be strong. Companies are co-financing R&I projects to- gether with Karlstad University, Bergskolan LTU and the institutes with an annual SEK 20 million. New constellations have been formed between businesses with common value propositions to customers. A number of them are based on com- plex technical systems and a large input of services. By 2025, Värmland will have more international manufacturing companies with 50 to 250 employ- ees.

ROAD TO THE VISION Assets to nurture and develop • Manufacturing of systems, products and components within the areas of tissue, paper and pulp, hydroelectric power, ship propul- sion, heavy vehicles, defence, and to a certain extent, oil/gas and solar energy. • Production of tool steel, as well as the ma- nufacturing of tools and components of tool steel, for such things as vehicles and wind power turbines. • Cutting edge expertise within materials tech- nology (high performance steel), applied fluid mechanics (hydroelectric power and propel- lers). • Research on steel fatigue33.

31 • Service research business models. which qualified services can also be included. • Companies’ R&I environments34 such as: Bae Business development This should be possible for companies in new Systems35, Böhler Precision Strip • Increase the use of advanced materials and industries such as green tech etc. AB, CCI Valve Technology AB, Norma Precision manufacturing technologies. • Reinforce collaboration with similar or comple- Priorities AB, Outokumpu Degerfors AB, Rolls-Royce AB, • Automated manufacturing primarily for short mentary clusters. Somas AB, Swedev AB, Thermia Värmepumpar runs. • Develop support for the servitisation of com- AB, Uddeholm Tooling AB, UMV Coating Sys- • Machining (of advanced materials). panies. tem AB, Valmet Tissue Research and Develop- • Handle short runs and many types of materials, • Develop a systematic work process for map- ment Center, Volvo CE AB, Westmatic AB and or advanced materials. ping of expertise in companies and research Scana Steel Björneborg AB • New manufacturing methods, for example groups additive manufacturing38. • Support digitalisation and automation of small We also need this to be able to achieve the vision • Reduction of the use of energy and materials in and medium sized companies. Some examples: manufacturing processes. • Develop offerings within offshore oil and gas Research and innovation • Sensor integration technology as well as wind and wave energy • Increase involvement in the national strategic • Coating and surface treatment. from individual components to services and innovation agenda for renewal within Metallic • Introduction of other Key Enabling Technologi- systems solutions. materials. es (see footnote 34). • Increase collaboration with Norwegian actors. • Develop current research within the research • Invest in new industries, joint development of Other group CMM, Characterisation and Modelling of offers which are based on customer needs and • In cooperation between triple helix players in Materials36 at Karlstad University. on our capacity to design complex systems Värmland, embark into European initiatives for • At Bergskolan, develop materials science with associated services. new industrialisation, such as the Vanguard within metallic materials, metallurgy / foundry • Based on the above measures, develop a Initiative. technology and processing. system for suppliers of components (manu- • Develop industrial education programmes at • Develop current research within production facturing companies) and knowledge (engi- Karlstad University, matching the focus of the technology at Karlstad University. neering companies) which together develop smart specialisation. • Initiate research related to complex and inte- applications (paper machines, wheel loaders, • Add gender expertise. grated systems. propellers, howitzers etc.) with integrated • Strengthen cooperation with leading Swedish mechanics, electronics and hydraulics/pneu- research institutes, primarily Swerea and SP, in matics with the OEM companies39 who are at the case of advanced manufacturing and intro- the top of the value chain. The aim is for Värm- duction of Key Enabling Technologies37. land to be able to deliver more competitive and • Further develop research and development innovative products and sometimes even new within servitisation in order to devise new products in the form of complex systems in

32 V. NATURE, CULTURE AND PLACE BASED DIGITALISED EXPERIENCIES Priorities

We visualise knowledge, stories and natural values and spread them. In order to develop technology Visitors will encounter an innovative and sustai- of places using digital technology and media in and services, we must take advantage of the bene- nable growing hospitality industry which is working order to create unique experiences for visitors. fits of research in cultural geography, media/com- on a long-term basis from an environmental, econo- Värmland possesses a rich diversity of more-or- munications, computer science and services. We mic and social perspective. less utilised opportunities for outstanding experien- should also take advantage of the institutes in the Results from measurements of customer satis- ces. We have an alive cultural legacy in music, art, region, as well as the ICT companies in the Compare faction and awareness of tourist destinations indica- handicrafts, historic finnish culture and storytelling cluster and in particular companies in the hospitality te that all these different measures have produced traditions. Värmland’s nature offers features such as industry and groups within the public sector who the desired effect. clean water, biological diversity, many climate zones own and manage tourist destinations. Certain tourist destinations have undergone and activities such as hiking, cycling, canoeing and such an upswing that they have caught the eyes of boating as well as an unexplored unique inland investors. sea40. The region organises events profiling tourist A number of tourism and ICT companies have destinations focused on culture and nature and VISION products within the area. also an increasingly varied offer of local food and Enhanced nature and cultural experiences for people By enhancing and renewing visitor experiences dishes. The Industry with its Värmland clusters is yet visiting Värmland using digital technology and of places of both natural and cultural value, we another area to experience. media. create attractive places with a greater appeal and The right conditions exist for Värmland to grow quality of life. Companies in the hospitality industry and develop as an innovative test environment due benefit from an increase in business opportunities to a high level of trust and spirit of cooperation. and profitability, which in turn generates more local Many people are willing to open their environments ABOUT THE VISION jobs, especially for young people. up to research, testing and development. This also People visiting Värmland, women, men, girls and Research on the hospitality industry condu- creates conditions for integrating various offerings boys, can experience more of the places they visit cted at Karlstad University is clearly profiled and with each other. through digital technology. The spread of these well known throughout Sweden and also within its Using digital technology, we can enhance the experiences digitally will provide even better mar- strong international network. Visit Värmland has experiences and also make it possible to save, share keting for tourist attractions in Värmland. a cooperation agreement with Karlstad University

33 and the goal is to expand the number of companies • Practical knowledge of service design ces are performed. which benefit from and are involved in the research. • Knowledge of how to conduct research and • Strengthen the cooperation with other resear- Thanks to conscious gender-equality efforts, testing in real environments (CTF) ch environments within the hospitality industry the ICT industry has been enriched with women • Expertise within research and development of such as Etour at the Mid Sweden University in Priorities who have expertise in the hospitality industry and ICT services Östersund, Linnaeus University and more. with men from the ICT industry who implement the • The profile-creating41 events and companies • Strengthen the cooperation with other resear- digital technology. • The cluster organisations Visit Värmland, Nifa ch environments in Europe within the hospi- and Compare and their collaboration tality industry, for example by profiling nature ROAD TO THE VISION • Well-developed municipal ICT environment tourism and outdoor life, but also within an Assets to nurture and develop with cooperation throughout Värmland augmented reality. We have identified a number of cutting edge • Broadband build out and the 4G network, Business development assets which we intend to nurture and develop; at • Develop collaboration with different clusters the same time, we shall facilitate cooperation and We also need this to be able to achieve the vision and industries in order to stimulate innovation collaboration with other assets in order to enhance Some examples: in accordance with the specialisation, mainly value creation: Research and development with Compare and Visit Värmland. • Large arenas/infrastructure for nature tourism • Coordinate42, clarify, develop and profile • Participate actively in innovative research pro- such as hiking trails, cycling trails, service facili- research at Karlstad University regarding the jects which are in line with the specialisation. ties in connection to Lake Vänern hospitality industry/tourism in line with the • Work actively, both in the short term and in the • Nature, clean water, Right of Public Access in specialisation. long term, using various methods to tie mem- combination with proximity to the European • Develop cooperation between students in, ber companies closer to academia. continent for instance, tourism science and computer • Integrate the Nifa food network in order to • A living cultural heritage: music, art, han- science. develop locally produced food and food which dicrafts, Finnish culture and storytelling • Use events as a basis on which to create more is part of the cultural experience of visitors. traditions all connected to the region’s cultural products, and bolster business meetings and • Integrate the design network Form i Värmland, and creative industries, which feature breadth, develop several congressional and conference Region Värmland’s Cultural Centre and creative depth and expert skill. activities. and cultural industries in order to develop new • Expertise in forestry and paper linked to rese- • Support research at Karlstad University con- experiences for visitors. arch and also to other strong clusters nected to the hospitality industry with a profile • Develop and apply service design methodo- • Proximity to Norway which is unifying (research) and strategic (bu- logy and collaborative methods for innova- • Computer science siness) and which matches the specialisation. tion that involve researchers, businesses and • Service research • Develop research which is conducted in actual visitors. • Geomedia research environments with visitors, both women and • Develop the hospitality industry within lear- • ICT education men. Where experiences are created and servi- ning-based tourism and technical visits in coo-

34 peration with other Värmland clusters, suitable stry and increase the number of visitors and searchers in the teaching of and meeting with companies, organisations and researchers. turnover during the low season. students in the programme. • Develop value-creation processes, which Other • Educate and inspire hospitality companies to involve understanding the values which are • Conduct a system analysis of the innovation give them the ability and motivation to get Priorities important for users (and other interested par- systems of the hospitality industry with an involved in research projects. ties). These values will then form the basis for emphasis on the experiences of the visitor. • Develop sites for visitor experiences which are determining what needs to be renewed. • Nurture and develop the Tourism programme owned or managed by public organisations. • Develop new markets for the hospitality indu- at Karlstad University and engage leading re-

VI. SYSTEMS SOLUTIONS WITH PHOTOVOLTAICS

We contribute to renewable power for more people belong to a Norwegian-Swedish innovation system ABOUT THE VISION in the world and solutions for having our own con- for photovoltaics. Glava Energy Centre is recognised as a Värmland trol over the production of electric power. For researchers we offer an interdisciplinary cluster in the Värmlandsmodellen 2.0 cluster stra- The specialisation helps to reduce emissions of environment with cutting edge within materials tegy and is an internationally renowned arena for greenhouse gases as we develop and offer solutions science and service research as well as a strong solar power. As a part of the positive development for the production of electric energy from photovol- network with the business community and society. of the industry, a Norwegian-Swedish cluster related taics. One example is a photovoltaic system for the to solar power and its applications has developed rapid electrification of rural areas throughout the with a strong presence of both Norwegian and world. Swedish actors. For companies, we offer an attractive test and VISION Glava Energy Centre and Värmland are attrac- development environment for generation and stora- Värmland is a strong part of a European leading tive meeting points both nationally and interna- ge of photovoltaics, smart electrical networks and trans-regional, Norwegian-Swedish innovation sys- tionally for creating dialogue, holding seminars, small-scale systems solutions involving photovoltaic tem for solar power. workshops and conducting R&D, as well as for technology. Companies established in the region investments in solar power.

35 intend to nurture and develop at the same time as which we shall facilitate the collaboration and coordination between them in order to increase value creation. Priorities • Materials research on polymer-based solar cells. • Materials research on silicon-based solar cells. • The Glava Energy Centre (GEC) - a compa- ny-driven organisation for renewable energy and an energy system with the emphasis on photovoltaics. • Facility for outdoor testing of photovoltaic technology in cold climates (the Nordic regi- on’s largest test park for solar energy systems and unique for tests in cold climates). • Demonstration facility for direct current. • High technological industrial production of solar modules (the only one in the Nordic countries). Karlstad University has developed as a research and SEK 300 million in annual turnover with a 10% • Industrial expertise in the region which is app- hub in the field of photovoltaics and received a gre- of profitability. One success story tells how it has lied within the industry. at deal of visibility in Sweden. Research has tripled been possible, by studying men and women in • Expertise within control and regulation techno- as a result of the university’s success in a couple of countries which lack electrification in rural areas, to logy in business photovoltaic projects in Horizon 2020. develop services and products which have gained • Industrial knowhow of heat pumps The collaboration in and development of solar great widespread distribution once solar power • Strong technological consulting industry. technology has been successfully introduced and facilities have been installed. • Presence of global entities and entrepreneurs research and industry are strongly intertwined. Värmland is in a good position in the field of in the region. The solar power sector has not developed along photovoltaics and has a total installed output of 10 • An arena for venture capital investors. gender-segregated lines as the contributions of MW. • Comprehensive integration of Norwegian and both men and women have been taken into consi- internationally operating players. deration at an early stage. ROAD TO THE VISION • solar cell park. One hundred innovation projects have produced Assets to nurture and develop • Centre for service research 10 new companies with a total of 300 employees We have identified a number of assets which we • The brand is associated

36 with the sun. • Efforts focused on attracting companies and nationally and in the EU. We also need this to be able to achieve the vision investment to Värmland. • Develop procedures as to how new industries Some examples: • Involve more actors in the initiative. can make use of the contributions of women Research and development • Take advantage of innovation and pre-com- and men at an early stage and thereby help re- • Further develop the ability and conditions for mercial procurement. duce the number of gender-segregated labour externally financed research from the national • Lobby for long-term policies for photovoltaics markets in Värmland. and EU levels. • Develop R&D for niche solar cell modules. • Develop research on control and regulation technology at Karlstad University • Develop interdisciplinary research methods • Develop student cooperation within solar power, such as through giving assignments to interdisciplinary student research teams. • Business development • Establish Glava Energy Centre in a Brussels-ba- sed network for the photovoltaic industry and research. Collaborate with other innovation environments in Europe etc. THE INNOVATION SUPPORT SYSTEM • Develop the Glava Energy Centre to a so-called a Värmland cluster43. • Set up projects which integrate new actors in The overall innovation support system in Värmland systems also constitute the structures designed to solar power development, for example tech- plays a central role for the development of smart boost the flow of ideas and to stimulate the process nical consultants, heat pump manufacturers, specialisations. of transforming ideas into innovations. control and regulation companies. By innovation support systems we mean actors Today, Värmland has a well-functioning inno- • Service development around photovoltaics with public financing who offer support to innova- vation support system. However, there is a clear systems. tors, entrepreneurs and (new) businesses. The term potential for development. We need to see an • Develop processes in order to take the step innovation system is a broader concept. Innovation increased flow of ideas and more ideas with high from prototype/demo facility to industrialisa- systems are individuals and organisations within re- potential. In order to be able to handle more ideas, tion and the creation of new jobs. search, business and public-sector operations who, those ideas must be dealt with in a faster way Other in coordination, develop ideas for creating added and tested at an early stage against the market’s • Develop cooperation with Norway with the value through the development of new products, requirements so that they can either be rejected or emphasis on Solklyngen in Akershus. services, processes or applications. Innovation further developed.

37 INNOVATION PARK ACADEMIC INNOVATION AND ENTREPRENEURSHIP SPECIALISATIONS WITH CLUSTER ORGANISATIONS PLUS INNOVATION PLATFORMS INCUBATOR

Karlstad University Innovation Park in Karlstad

Grants an Innovation Office, Karlstad University Inova

SP Drivhuset

Bergsskolan, Luleå University of Technology See figure 6, page 17.

NICHE ACTORS

Communicare Nyföretagarcentrum Rookie To Whiz IFS Almi Hushållningssällskapet Närverket Swedish Tax Agency Arbetsförmedlingen Study Association

Network for Women’s Ung företagssamhet Business Värmland Grensetjensten Enterprise Europe Network IUC Wermland Företagsakuten Lantbrukarnas Riksförbund Enterprise

Framtidsfrön Culture Centre Business Sweden Almi Invest Värmlandskooperativen Swedish Academy LO Unionen Region Värmland of Board Directors

REGIONAL County Administrative Confederation Swedish Federation Region Värmland Almi Företagspartner Värmland County Council Chamber of Commerce GENERAL ACTORS Board of Värmland of Swedish Enterprise of Business Owners

MUNICIPAL BUSINESS ORGANISATIONS Municipality Karlstad Municipality Municipality Municipality Municipality Hammarö Municipality Arvika Business Centre Uvån Business Centre Tillväxtcentrum

Näringslivsamverkan in Municipality Kil Municipality Municipality Municipality Säffle Municipality Årjäng Municipality Kristinehamn Municipality Torsby Development Inc.

COMPANY SERVICES Business angel Banks Accountants Lawyers Patent agencies Design and prototypes Advertising agencies Technical consultants Risk capitalists

38 The system should cover all of Värmland. Even • Strengthen the connection and collaboration • Develop the flow of commercially viable ideas local, specialised innovation platforms should be between researchers and companies. and research results. able to play a role throughout the entire region. The • Develop multi-, inter- and transdisciplinary • Take initiatives to find strong entrepreneurs, concentration of research, knowledge-intensive research methods, in other words, methods both women and men, who can bring ideas to buissnes and support present in Karlstad, should where areas of research intersect and are inte- the market. thereby be able to benefit the entire region. grated to varying degrees with each other and Business development A education system, which has a well-integrated where research is conducted in close collabora- • Strengthen new businesses and spin-offs from working approach that stimulates student creativity tion with civil society and business. large corporations. and entrepreneurial abilities has a long-term impact • Develop support and activities for companies • Strengthen the connection and collaboration on the climate for innovation. so they over time will become better equip- between researchers and companies and A special plan of action needs to be developed ped/skilled to participate in research-related stimulate companies to become involved in R&I for the overall innovation support system. innovation processes. Activities can for in- projects, such as Horizon 2020. stance be: cooperation projects with students, • Create new value chains and corporate colla- efforts to employ engineers, development boration. The aim should be to develop a leading innovation projects together with the university and • Work to ensure that existing, strong value system focused on value-creation through smart spe- institutes, forms for creating inspiration for chains meet other value chains in innovation cialisations and entrepreneurial discovery process. boosting cooperation between academia and processes and stimulate to create cross con- the corporate world. nections. • Strengthen cooperation with other research • Develop support for the servitisation of com- To ensure that there is no repetition of efforts environments in Europe which, can add value panies. which are common for the different specialisations, to the specialisations. • Develop the work of expertise mapping so we list them below with examples of efforts for de- • Establish and develop education courses and that it will have systemic importance, in other velopment of the overall innovation support system research projects at Karlstad University for words, make it possible to discern patterns and the innovation system. stimulating development of knowledge and between different companies (and researchers) Examples of these efforts: innovation. in order to be able to form new constellations Research and innovation • Continue to develop working methods with and new offers etc. • Develop a concept for an academy for indu- multi-discipline project groups among stu- • Larger companies open (more or less) their stry-related research and education at Karlstad dents. development opportunities with the aim of University. • Develop the institutional sector in the region, boosting their own pace of development primarily with a connection to services. through open innovation. • Develop effective tools, iterative processes, in • Companies share patents and ideas which do other words repeated and feedback processes not compete with their own operations and

Figure 8 (left). Buisness and innovation support system. for innovation. have a generous attitude to personnel mobility

39 in order to benefit innovation. • Develop methods to advance from regional ch institutes in Värmland. • Develop processes in order to take the step planning to running a more process-oriented • Innovation Park has multiplied its facility space. from prototype/demo facility to industrialisa- strategic development work. • In a cluster measurement done on behalf of tion and the creation of new jobs. • Develop pre-commercial procurement for Region Värmland, the member companies • Work to increase access to competent venture innovation and for related activities in order to place high importance on all gaps/bridges: capital. develop the own operations and to stimulate company-company, company-researcher, Public sector innovation in Värmland’s businesses. company-education, company-capital, com- • Develop Innovation Park in Karlstad as a node • Work strategically with start-ups and invest- pany-public sector, company-cluster (clusters in the system. ments connected to the specialisations. other than their own) and company-global • Develop an innovation support system inde- • Drive influencing campaigns nationally and in market. Primarily, the company-researcher pendent of distance. the EU to facilitate the development of Värm- bridge is well -trafficked and companies also • Apply service design methodology in a number land’s specialisations. feel they benefit of the proximity to research. of situations to include issues related to custo- • Develop entrepreneurial learning in schools. • High traffic at Verksamt Värmland, in particular mer needs and the market at an early stage in • Special thematic efforts focused on young in those sections, providing support in innova- the innovation processes. people with a connection to various speciali- tion processes. • Further train consultants in the system. sations. • The support system for companies and inno- • Gender-mainstream the support system for Common vation is gender-aware as a result of business new businesses. • Highlight Värmland as a test and demo region advise desk undergoing a quality assurance • Develop arenas for collaboration. Invest in with strong niches within, for example, bioe- check in this field. equality and integration. conomy, ICT systems for healthcare and solar • The number and proportion of women and • Boost international collaboration in order to power in cold climates. people with foreign backgrounds is growing learn from other regions. • Develop networks to combat gender segrega- among innovators. • Invest in exports to enhance innovation capa- tion. • Companies from other parts of Sweden and city. • The Innovation support system shall offer equ- Europe with profiles matching the areas of • Develop our ability to finance innovation pro- al opportunities for women and men to create strength in Värmland, relocate to Värmland. jects with the assistance of regional, national innovation. • A school which promotes the curiosity of child- and EU funds. This applies to the university, ren and then develops it into an entrepreneuri- research institutes, business and the public SIGNS SHOWING WE ARE MOVING IN THE DESI- al attitude as the children grows up. sector. RED DIRECTION • Connect the region’s areas of strength and the Examples: actors involved to other strong players within • A number of companies from Värmland are Sweden and the EU. participating in Horizon 2020, in some cases • Promote Värmland’s smart specialisations. together with Karlstad University or the resear-

40 POLICY MIX / ACTION PLANS

The fifth step in the RIS3 process VARIOUS ROLES OF THE PUBLIC SECTOR FOR various ways. This primarily relates to Region is the implementation. Initially, this INNOVATION Värmland. Policy relies on developing proposals for Innovation in the public sector has not been singled Mix a cohesive mix of measures for the out in the strategy as a specific area of specialisa- HOW VRIS3 REINFORCES AND CLARIFIES THE various specialisations and for the tion. However, the municipalities and county council VÄRMLAND STRATEGY AND OTHER STRATEGIES innovation system as a whole. This also includes already have roles in several of the specialisations. AND ACTION PLANS designing processes and groups to implement and Moreover, innovation in the public sector is an area In order to achieve regional development, efforts realise the strategy, by ensuring we move in the which can and should be undergoing further deve- are required in a number of areas. Developments right direction. lopment. There are several reasons for the public in different areas are, to varying extents, inter- At this stage, the goal is to develop the ability sector to get involved in innovation. This can entail dependent, and often even mutually dependent. to act at a tactical level relying on visions and stra- boosting the rate of growth in the municipalities For Värmland to develop in accordance with the tegies based on well-designed action plans. In other and the region, developing operations and creating objectives set out in VRIS3, initiatives must thus be words, to constantly act quickly but in a coordina- value for residents. In many cases, the municipalities introduced in other programme areas. This is why ted manner. All the players concerned must parti- and county council including their public compa- the work includes developing a suitable policy mix cipate in shaping the action plans. This is a matter nies, joint political boards and municipal coopera- by reviewing and describing the consequences for of coordinating all actions being taken towards the tion authorities, Region Värmland as well as national the four prioritised areas and thirteen steps in the achievement of the common objectives. government agencies present in the region, play a Värmland strategy. However, this also applies to While developing VRIS3 we noted that infor- range of roles for innovation, for example: other associated measures, strategies and greater mation was lacking in some areas such as sufficient • Support employee innovation initiatives, efforts and projects44. detailed information and analyses on the various • Request innovations that can both be applied specialisations needed to shape well-designed in the own organisation and also become pro- action plans. It would therefore be valuable to supp- ducts on a market. lement this with more data, enabling analyses of the • Develop own innovations for one’s own opera- innovations systems in the different specialisations. tion and which in certain cases can spin out. This is subsequently to design action plans for the • Public enterprises can also develop to become respective specialisations and one for the innova- innovation-driven organisations. tion support system as a whole. • Public organisations can participate and develop the innovation support system in

41 The Digital Agenda

Entrepreneurship strategy Genus-development Policy Mix Policy Letter of Intent for Region Infrastructur Värmland Karlstad university Transportation research collaboration

VRIS3 Branding platform Action plan Road Map

VRIS3 Värmland´s strategy for Smart Specialisation Project International strategy funding

High education level Norway strategy Improved matching of skills

The Värmland model 2.0 Värmland (Cluster strategy) European Office Establishment and Monitoring investment promotion

Figure 9. Examples of steps in the Värmland strategy such as strategies, plans, larger initiatives and efforts in which Region Värmland plays a leading or strong supporting role and which are affected by the prioritisations in VRIS3.

42 MONITORING

The task in smart specialisation body responsible for regional development - Region VRIS3 will undergo follow up and evaluation. involves using existing assets in the Värmland - with its relatively limited resources. • Larger projects with financing from structural Monitoring region to develop global compe- Examples of efforts which, contribute to evalua- funds will include follow-up research from a titiveness within specific areas. tion, follow-up and learning: gender perspective. This is, in other words, a conver- • In the beginning of the process, Värmland par- • The government authorities, Swedish Agency sion process or transformation which needs to be ticipated in activities organised by the S3 plat- for Economic and Regional Growth, Growth stimulated. These efforts therefore need to build on forms in Seville, where the comparable regions Analysis and Vinnova will conduct evaluations. existing assets, and be innovative and experimental studied each other and provided feedback. • A straightforward method which should be so that structures are transformed and institutio- • The Värmland strategy has set out 33 objec- used is self-evaluation. nal conditions are changed in order to achieve the tives for development in the region. Of these, • The actions plans for the specialisations further goals. objectives 12 and 13 have the highest relevance clarify how follow up, evaluation and learning Follow up provides support for those who for VRIS3: 12. Private business investments in will proceed. In order for the different specia- execute the action plans and involve monitoring research and development shall increase to the lisations to be able to be evaluated effectively, the progress of the implementation and conduc- same level as the rest of the country (not in- the action plans shall be designed based on a ting evaluations as to whether the efforts meet the cluding the large urban regions). 13. Increased programme logic: Resources, Activities - Out- strategic objectives. innovation power so that Värmland approaches come/Direct results - Results/effects – Long- The task of evaluation should be aimed at the country’s average (not including the large term effects. analysing and evaluating change processes and urban regions). mechanisms, looking particularly at how these af- • The cluster strategy, Värmland Model 2.0, fect innovation. It should also provide the necessary includes an evaluation plan in which the indu- information for introducing re-prioritisations in the stry’s economic development is measured and strategy. where companies’ executives are asked to as- The learning provides feedback for the follow sess the impact of the cluster’s efforts on their up and evaluation work for everyone involved in the operation. The part which deals with invest- execution of the programme. In this way, learning ments in research and benefits for companies becomes a part of the steering of the strategy. is also of particular relevance for VRIS3. Using evidence-based evaluations is a resour- • The collaboration between Karlstad Universi- ce-demanding approach and a challenge for the ty and Region Värmland within the scope of

43 FINANCING

VRIS3 can be financed in a number of different • Horizon 2020 • Swedish Agency for Economic and Regional ways. The European Regional Development Fund • Swedish Energy Agency Growth (ERDF) and to a certain extent the European Social • KK Foundation • Vinnova Fund (ESF) for North Central Sweden are key sour- ces of financing together with national funding for regional development, municipal and county contri- butions as well as a new feature in this programme period: private co-financing. In addition, there are opportunities to receive co- financing from other national and European funds and programmes45. A list of a selection of financiers, funds and programmes is given below: • European Regional Development Fund – Natio- nal Programme • European Regional Development Fund (ERDF) – North Central Sweden • European Social Fund – North Central Sweden • Rural Development Programme • Interreg Sweden - Norway • North Sea Region Programme • Baltic Sea Region Programme • BSR-Stars • Interreg Europe • COSME

44 TERMS AND ABBREVIATIONS

We have provided explanations below of the com- Cellulose is the most important constituent of cell CSR stands for Corporate Social Responsibility, mon terms and abbreviations used in this context. walls in all plants and is the most common orga- which means a company’s responsibilities to society The list does not pretend to be a complete termino- nic substance in nature. Cellulose, in more or less with regard to social, ethical and environmental logy list but only to provide assistance in under- natural mixtures with other polysaccharides and matters. standing the text in the strategy. These explanations lignin, is a raw material found in the production of, are taken from Wikipedia, the Swedish National for example, paper. EDP, Entrepreneurial Discovery Process. A central Encyclopaedia (Nationalencyklopedin) and from the part of a smart specialisation strategy (RIS3) is the websites of the concerned organisations. Cellulose derivatives are products obtained demand on an “entrepreneurial-driven” distribution through chemical modifications of cellulose. of public funds. This means that compared to pre- Baltic Sea Programme is a transnational program- vious growth policies, the priorities should be the me between 11 countries. The overarching vision Circular economy is a concept describing economic result of an entrepreneurial discovery process (EDP) for the programme is to turn the Baltic Sea region models in a company, society or an organisation through which entrepreneurial actors from the into an attractive region for people to live, work and which highlights business opportunities in which public and private sectors (which means companies, invest. a circular rather than linear processes is used, research organisations, universities and society) are which up until now have been the most prevalent. always guiding in the distribution of public funds. Bioeconomy or bio-based economy relates to an A circular economy is inspired by nature’s cycle. economy based on biological materials and not on The ultimate aim is for waste to be eliminated as EAFRD, European Agricultural Fund for Rural Deve- fossil-based material. such and instead become a raw material. Products lopment are thus designed so that they are easy to recycle. BSR-Stars programme is intended to strengthen the Biological materials and other material are designed Entrepreneurship entails the ability to identify competitiveness and the economic growth of the so that they can be re-used, recycled, composted, opportunities and generate resources to take ad- Baltic Sea region. This by promoting cross-border or to enable energy recovery. vantage of these opportunities. There is long-stan- links between specialised research and innovation ding criticism of the individual-focused perspective nodes, leading to strategic alliances which can meet COSME, Competitiveness of Enterprises and Small where conditions such as networks, culture and joint “societal challenges” in different areas, such and Medium-sized Enterprises, is the EU’s competi- teamwork instead is highlighted as the central as health, energy, sustainable transportation and tiveness programme for 2014 - 2020. The program- factors explaining successful entrepreneurship. digital business and services. me is intended to provide support and assistance for small and medium-sized enterprises. ERDF, European Regional Development Fund.

45 ESF, European Social Fund is EU’s most important patterns towards gender issues. By taking a gender in the decision making process. Since the EU also tool for creating more and better jobs in Europe. equality perspective, it is possible to generate pro- utilises gender mainstreaming this will be applicable The objective in this case is to reduce the differen- posals for ways to change attitudes towards gender. throughout the EU. ces in welfare and living standards between the From this standpoint, it is important to focus not EU’s member countries. only on equality policy objective, but also show how Gender statistics means dividing statistics up to work to achieve improved equality by including between women and men. In order to determi- Cluster or a business cluster is a geographically both women and men in generating economic ne which growth strategies which are the most separate environment within which companies in si- growth.46 successful, gender statistics are required. Dividing milar industries, in competition and in collaboration, up all statistics by gender is necessary to be able produce a “special” end product. Gender mainstreaming, a term coined by the to conduct work with gender mainstreaming which United Nations in 1997, describes the incorporation means also examining the needs of women and men Cluster organisations or cluster initiatives are esta- of the gender equality perspective into the work of and examining how resources are distributed. blished in order to add value and to enhance the government agencies at all levels. The idea is that effects of existing clusters by operating a develop- gender equality is not a separate, isolated issue but Horizon 2020 EU’s framework programme for rese- ment organisation around them. a continual process. To create equality, the concept arch and innovation. of equality must be taken into account when resour- Equality is a political objective as decided by the ces are distributed, norms are created and decisions Hydrodynamics is a branch of physics that involves Swedish government and parliament which entails are taken. the study of fluid motion. Applying it involves the ensuring that women and men have the same In Sweden, gender mainstreaming is seen as the study of vessel buoyancy, and water turbulence power to shape society as well as their own lives. In main strategy for achieving targets within equality around, for example, a ship’s hull or in pipes. this document gender signifies the biological and policy. The portal www.includegender.org was legal gender categories, man and woman. created in 2009 to help this process, providing Innovation is, briefly, the entrepreneurial process simple tools to make gender mainstreaming easier which generates an idea of value. Gender describes the beliefs, norms and com- in practice. Here, the definition developed by the OECD is used: mon assumptions (implicit rules) about women In 2011, the Swedish Government decided to st- “The introduction or execution of a new or substan- and men, femininity and masculinity. By taking a rengthen efforts within equality, creating a national tially improved item, service or process, new mar- gender perspective, based on the statistics related platform to further gender mainstreaming at the keting methods or new way to organise a business, to gender distribution, it is possible to describe the municipal, regional and national levels. work organisation or external relationships.” consequences that decisions will have for the living The Swedish government strategy aims at conditions for women and men. This is based on achieving an equal society. Basically this strategy Innovation support system consists of the publicly the standpoint that beliefs and assumptions about entails incorporating an equality perspective in all funded actors who offer support to innovators, women and men are created by both society and decision making at all levels and at every step in the entrepreneurs and (new) businesses. culture. Therefore, it is possible to change attitude process by those elements who normally participate

46 Innovation system refers to the network of indivi- available, exchanging experiences and collaborating Reglab was launched in 2010 by 10 regions, Vinno- duals and organisations within research, business in order to develop solutions for problems shared va, Tillväxtverket and SKL, on an initiative from Re- and public enterprises in which new technologies by organisations throughout the region. gion Värmland and others. At present47 Reglab has and knowhow are produced, distributed and used 24 members, of which 21 are regions or counties. and the structures designed to increase the flow of OECD, Organisation for Economic Co-operation and ideas as well as to stimulate the process to trans- Development is an international organisation for ex- RIS3, Research and Innovation Strategies for Smart form ideas into added value. change of ideas and experiences within areas which Specialisation. have an impact on economic development between Interreg Europe is an interregional programme industrial countries with democracies and market Rural Development Programme is designed to aiming to support interregional collaboration economies, mainly in the 34 (OECD) member states. improve profitable and vital companies, active amongst all EU Member States, as well as Nor- farmers and lead to modern rural development. The way and Switzerland. The purpose is for selected PPP, Public Private Partnership is a form of public Rural Development Programme includes corporate partnerships to formulate political steps, strategies procurement in which a private company or consor- support, project support, environmental invest- and actions which support their regional growth tium is given the task of financing, building and, for ments, environmental remuneration, remuneration agendas, through an exchange of experiences and a longer period of time, operating a public utility, for ecological production, compensation support, joint development work,. generally a hospital, motorway or other infra- animal welfare compensation, as well as locally structural investment. In other words, not only is the run development. All support and remuneration is Interreg Sweden-Norway is an EU programme for actual construction handed over to a private com- financed jointly by Sweden and the EU. cross-border collaborations which should contribute pany but also the financing and operation as well. to growth in boundary regions. S3 Strategies for Smart Specialisation. Quadruple helix involves an expansion of previous KET, Key Enabling Technologies comprises nanot- regional innovation systems (RIS) which largely Secondary streams are residual products formed echnology, advanced materials, advanced manu- were based on a triple helix, or a collaboration in the production of the main product. Coming facturing and processing (production technology) between academia, government agencies and busi- from pulp and paper mills, this could include, for as well as biotechnology. ness. The Quadruple Helix also includes civil society. example, lignin, black liquor, and tall oil, while from sawmills we get sawdust. North Sea Programme is a trans-national collabo- RaI stands for Research and Innovation. ration programme encompassing seven countries. Societal challenges We have chosen to define The overarching objective of the programme is to Reglab is a forum for learning about regional de- societal challenges in accordance with EU’s Horizon make the North Sea region a better region in which velopment. It brings together regions, government 2020 research programme: to live and invest in. Companies, institutions, public agencies, researchers and others to learn more. The • Health, demographic changes and well-being. administrations, non-federal organisations and participants run joint development projects, deepen • Food security, sustainable agriculture and others receive assistance in making their expertise their regional analyses and learn from one another. forestry, marine and maritime shipping and

47 inland water research and bioeconomy. solutions to be developed based on the users’ Tissue machines are machines use for the produc- • Secure, clean and efficient energy. expressed and latent needs, and it makes it possible tion of tissue paper. • Smart, green and integrated transport. to pose common problem formulations, challenges • Climate action, environment, resource efficien- and objectives, as well as giving us the tools needed Triple Helix refers to the close collaboration cy and raw materials. to be able to collaborate, create and devise appea- between the public sector, business/industry and • Europe in a changing world - inclusive, innova- ling solutions. academia in which joint learning is the central factor tive and reflective society. Radical new services possess a transformatio- and thereby also communication. This can best be • Safe societies - protecting freedom and securi- nal power to convert value chains. In this way, new described as a goal-oriented and un-bureaucratic ty in Europe and for its citizens. services can transform traditional value chains and collaboration between companies, government create a value network. This requires deep insights agencies and researchers where it is possible quick- Simpler Method is a means of measuring how into the behaviour and values of the users, as well ly to create, test and realise new ideas. (The name economically competitive a region is and compare as the situation in which they live. Triple Helix stems from the DNA spirals) it with a company’s or an industry’s position relative to its competitors and follow developments over a Servitisation48 is a development process aimed period of time. It is possible to measure the effecti- to gain new insights both into users and into how veness of an entire region, industry or a company. best to support their value-creation processes. This requires an overall perspective of the company or Smart specialisation refers to a regional policy organisation and all the associated resources avai- designed to contribute to smart, sustainable and lable. This represents the long-term efforts on the inclusive growth throughout Europe. This shall part of business and public sector organisations to happen through a regional mobilisation behind enhance customer values by taking a basic service the most promising areas for innovation, entrepre- friendly approach. Factors which drive servitisation neurship and growth taking into account regional include competition, profitability, globalisation and levels of expertise and resources relative to the rest deregulation. Servicifying your company means of the world and the current trends. supporting your customer’s core processes which produces benefits such as increased customer awa- Services refer to customer or user value-creation reness and need-determined innovations. processes. Tissue paper is a type of paper which is primari- Service design involves personnel, users or custo- ly used for hygienic purposes and includes toilet mers working together to design services which paper, paper towel, paper wipes, paper napkins and create value in the everyday lives of the users. similar. Design is a tool, and an approach, which enables

48 ENDNOTES

1. See the list of people who have worked with VRSI3 15. Supporting the Contribution of Higher Education 24. Steve Jobs in Appendix 1. Institutions to Regional Development. 25. This is confirmed by the fact that about four years 2. Inclusive in this context means there is equality, whe- 16. Värmland – ett skönare liv, see www.regionvarmland. ago, CTF was ranked among the top five research re gender equality is one of several variables in the se. groups in the world in the areas of service research pursuit of inclusive and sustainable growth. 17. Analyses are presented in the appendices: Värm- and customer-driven service development. 3. European Regional Development Fund. lands syntes näringsliv, Omvärldsanalys i relation till 26. Owned by Landstinget i Värmland and operated in 4. European collaboration across national borders. styrkeområden i Värmland, and the Simpler analyses partnership with SP ETx Kompetensgrupp services. 5. European Social Fund. Starka branscher i Värmland, Utökad analys KIBS och 27. ICT Cluster in Värmland since year 2000. 6. European Agricultural Fund for Rural Development. besöksnäringen and Livsmedelsindustrin special. 28. PPP: Private Public Partnership - partnership 7. Competitiveness of Enterprises and Small and Medi- 18. See analysis model in Appendix 1. between business and the public sector. The terms is um-sized Enterprises. 19. See Appendix 1 for other research groups. often used in connection with financing of larger pro- 8. EU framework programme for research and innova- 20. See each respective specialisation for the companies’ jects. In this case even the EU should be considered tion. R&I environments. to be a part of the public sector. See also Terms and 9. Moreover, advantageously add external, European 21. Services refer to customer or user value-creation abbreviations. resources and by connecting us into global value processes 29. For example, European Regions for Innovation in chains. 22. Servitisation can be considered a soft enabler for Agriculture, Food and Forestry (ERIAFF), European 10. See the section on societal challenges page 11. many companies enabling them to boost their Regions Research and Innovation Network (ERRIN), 11. Refer to “Det lönar sig (It is worth it)” by Franzén, competitive strength. To be compared with the Key Biobased Industries Joint Undertaking, Vanguard Lärkeryd etc. Enabling Technologies as set out by the EU Commis- Initiative – Pilot Bioeconomy och European Bioeco- 12. The Seville Platform has an RIS3 guide for a process sion (nanotechnology, advanced materials, advanced nomy Alliance. in these six stages. manufacturing and processing (production technolo- 30. See Appendix 1 for a few examples. 13. Reglabs Innovationsindex 2013, The European gy) and biotechnology. 31. Key Enabling Technologies (KET): nanotechnology, Commission’s Regional Innovation Scoreboard 2014, 23. A value network entails a more complex collabo- advanced materials and advanced manufacturing Service Innovation Scoreboard 2014, EU’s Innovation ration in order to create values than what a value and processing (production technology), and bio- Scoreboard, Global Innovation Index and the World chain constitutes where a collaboration functions technology. Bank’s Innovation rank. more like a relay race. See, for example http://cio. 32. See smart specialisation System Solutions with Photo 14. Värmland’s regional growth agreement: Business idg.se/2.1782/1.449059/fran-vardekedjor-till-varde- Voltaics oriented work for Värmlandian growth power. natverk 33. Relies on a method for measuring purity in steel

49 where the steel is exposed to a billion fatigue cycles. 39. Brand owners who often operate on a global market. Fakta fakta i korthet No. 7 • 2014 at regionvrmland. 34. Has allocated resources to run product development 40. Lake Vänern, the largest lake in the EU. se and process development of own products. 41. For example, 2015): Rally Sweden, Timmerflottarna, 46. The definitions are partly derived from: How Värm- 35. Has operations in Karlskoga which are located Branäs, Karlstad CCC, Sandgrund Lars Lerin Art land can become a winner in growth of equality - a slightly outside the region. However, still located so Gallery, Västanåteater, Wermland Opera, Vänern, current situation analysis - facts in brief No. 4 2012 close to Värmland that it is part of our labour market Sliperiet. Region Värmland region. 42. Research on tourism for example, outdoor life, expe- 47. Spring 2015. 36. Encompasses materials technology, materials riences, cultural sciences, media, CSR issues, gender 48. Servitisation can be considered a soft enabler for physics, mechanics of materials and manufacturing and services many companies enabling them to boost their technology. 43. In accordance with the criteria in the Värmland competitive strength. To be compared with the Key 37. KET: Nanotechnology, advanced materials, advanced Model 2.0 cluster strategy. Enabling Technologies as set out by the EU Commis- manufacturing and processing (production technolo- 44. See Appendix 1 for a summary of the other strategies sion (nanotechnology, advanced materials, advanced gy) and biotechnology. and measures that should apply. manufacturing and processing (production technolo- 38. 3-D printing. 45. To see a thematised compilation, see Appendix 1 Plus gy) and biotechnology.

50 51 This is Värmland´s Research and Innovation Strategy for Smart Spe- cialisation 2015-2020. The strategy shall serve as a tool for sustainable and inclusive development and growth in Värmland. The aim is for the strategy to be a concern for all key groups in Värmland that work with innova- tion within Värmland’s specified areas of specialisation, as well as for actors elsewhere in Sweden, in Europe and globally.

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