Arctic Smartness with its five modern clusters, each awarded the European Cluster Management Excellence label (BRONZE)* in 2016, of Arctic Industry and Circular Economy, Arctic Smart Rural Communities, Arctic Design, Arctic Safety and Security and Arctic Development Environments, are looking beyond conventional operational boundaries, endorse cross-fertilisation, make the best use of the regional expertise and actively network over the borders.

*awarded by the European Secretariat for Cluster Analysis (www.cluster-analysis.org) The cluster is where the smart specialisation thrives

What are the competitive industrial development, keeps its position as a region with the cleanest water in the world and the advantages of Lapland? How cleanest air in the European Union. to support emerging SMEs and From the very beginning S3 was seen as a very practical concept, bringing in new insights into the increase capacity of Lapland? regional development. S3 approach has been used How to implement smart In Lapland as a means to become recognised in EU as an attractive and knowledgeable collaborator. specialisation strategy? How The work according to S3 has helped in finding new could businesses from Lapland ways of working together and to get out from the box to seek new possibilities from the cross-sectoral that use natural resources collaboration, to develop common approaches sustainably gain fresh impetus towards regional development and to be active in in international markets? These seeking international collaboration. To put the smart specialisation to practise, we developed a special questions, among other things, “Arctic Smartness” regional development approach. were asked when the Smart We are reaching towards the vision via having the development focus in regional clusters and ecosystems Specialisation Strategy work supporting the co-creation among, the development was started in Lapland. of new regional value chains generate growth and innovation activities of SMEs on supporting the green Lapland is the northernmost region of and EU economy. The implementation of the Lapland S3 having total land area of 98 984 km² and 181 815 (2014) focuses on bringing in the crosscutting intervention, inhabitants. Lapland is a mixture of abundant natural which will stimulate in finding the interfaces where resources, strong accumulation of Arctic knowhow cross-fertilisation appears and innovations will be and expertise and unique nature. Backbones of the born. economy are the strong forestry and mining based With the modern cluster of Arctic industry and industries and tourism producing together almost circular economy, Arctic smart rural communities, 10% of the export of Finland. Specific characteristic of Arctic design, Arctic safety and Arctic development the industry in Lapland is the existence of the large environments, we are looking beyond the boundaries, refining industry, few medium size businesses and cross-fertilisation, the best use of the regional huge number of small and micro level enterprises. expertise and strategic networking over the borders. The region of Lapland was one of the first regions in Finland adapting the concept of Smart FURTHER INFORMATION Specialisation (S3). The vision of the Lapland Regional Council of Lapland smart specialisation is to enjoy a leading position Senior Advisor Kristiina Jokelainen in exploiting and commercialising Arctic natural [email protected] resources and conditions. Despite remarkable

3 How does the cluster work?

The Arctic Smartness cluster approach - Implementing the smart specialisation

Development companies, Network regional development co-operation 3organisations and other business 8leads to new support services help the cluster innovations and businesses through, for example, regional specialisation. the supervision of interests and Companies find new development of business skills. markets and, as a result, business grows. Co-operation with educational and research Business growth Specialisation based 4organisations allows the on regional expertise cluster businesses to develop Specialisation New supports business life. research and innovation activities innovations The new jobs created in the long-term. in the private sector Cash Jobs flow bring more residents to Lapland. There is a rise Added value in employment and for business prosperity.

BUSINESS SUPPORT INTERNATIONAL SERVICES PARTNERS

RESEARCH AND ORGANISATIONS EDUCATION AND ASSOCIATIONS

COMPANIES Third-sector actors strengthen the goals 5of the cluster. The cluster gathers local businesses that have the desire to grow and 1develop into a network. The cluster imports and exports the latest Public and private funders support 6international information. the growth and development of 2the cluster. The cluster operates in

AUTHORITIES close co-operation with 7the authorities. FUNDERS 4 Arctic Smartness Aiming for concrete results and long-term impact

Why is the cluster co-operation seen of the businesses are taken into account from the very as a tool to implement the regional beginning. development in Lapland? Businesses certainly compete with each other from time to time, but co-operation between enterprises There are internationally competitive skills, high- is sought and promoted in clusters while taking the quality products and services as well as plenty of competitive situation into account. ideas to commercialise in Lapland. Businesses are also looking for new initiatives, The cluster co-operation between those operating ideas and contacts from cluster co-operation in order in Lapland increases the visibility of the expertise and to develop their operations. experts of Lapland and raises new opportunities to Cluster Development Manager Ilari Havukainen, bring the developed products and services to the Regional Council of Lapland market. In 2014, Lapland was chosen as the cluster model What are the challenges of cluster co- region of the EU from among 44 candidates – operation? right now is an excellent time to utilise and market Lapland’s cluster co-operation internationally! Cluster co-operation tests the ability to co-operate of Cluster development expert the region and the those operating there. The leaders Jukka Teräs from Nordregio of cluster organisations must be able to inspire actors to participate in active co-operation. Is there a real need for cluster co-operation? Concreteness is a challenge: increased co- operation alone is not enough, but rather it should Regional clusters have been launched and developed lead to measurable results such as euros, jobs or around the world for a long time now. The models new research and innovation projects. Cluster co- and implementation methods of clusters vary, but operation as such does not automatically guarantee the co-operation between businesses, research and success. educational institutions, the public sector and funders that is at the heart of cluster activities has brought What could the co-operation in euros, jobs and visibility to the regions and the those Lapland’s clusters be like in the future? operating there. The need for cluster co-operation is still there and The cluster co-operation will arise from the starting the most active regions and regional actors utilise points of the actors, be active and inspiring, have clusters effectively. sufficient long-term goals but still be result-oriented. Senior Advisor Kristiina Jokelainen, Activities that promote the interests of Lapland and Regional Council of Lapland those operating there in a concrete way. The close collaboration between cross-sectoral What motives do businesses have actors in clusters will provide good breeding ground when participating? and the interface for the innovations to grow. Sustainable utilisation of the arctic natural resources Businesses seek increasing their competitiveness, will remain at the heart of the cluster development euros and jobs from cluster co-operation. Cluster co- work in Lapland. operation is most successful when the key objectives

5 International growth from clusters

“LAPLAND HAS GAINED visibility and a firm foothold in many international forums. We have made cluster work one of the regional focus areas, based on Lapland’s strategy for Arctic specialisation. We have got off to an excellent start: Lapland was selected as one of the model regions for cluster development in Europe along with five other top regions. Our goal is to support the competitiveness and growth of business clusters that are genuinely market-based and strive to be international. Cluster activities provide new operating models for the business life of Lapland and strengthen, for example, our public and private funding opportunities. Now is the time to seize the opportunity and get busy. Tehemä pois – Consider it done!”

Mika Riipi, County Governor of Lapland

6 Arctic Smartness 7

Lapland – a development region

Approximately 50 development Theory and testing for real demands environments operate in the Even in Lapland, testing an electric sledge in a temperature of –20ºC is only possible in natural area of Lapland. How are conditions during cold winter days. these premises, originally built In the Arctic Power cold testing laboratory, the properties of the electric sledge can be tested in as learning environments, freezing temperatures all year round. In development being used for the innovation environments, companies can test their products and services in an environment that is authentic or built to and product development of resemble an authentic environment. businesses? “A development environment is a sandbox for a business or a community that wants to develop their products or test their services. The purpose of Around 50 different development innovation and product development is to improve environments for businesses the competitiveness of a product or service on the Cluster has set a goal to gather RDI and learning market,” says Cluster Manager Pyyny from the environments in Lapland to same network, which Lapland University of Applied Sciences. strengthens the regional business by providing new business opportunities for SMEs. Educational institutions support Development environments are physical and virtual working life and vice versa environments, learning and innovation environments, laboratories, research facilities, studios, workshops These days, educational institutions and research and simulation environments in which products and institutes collaborate with other parties in the services can be tested and developed further. region increasingly. For educational institutions, for Seven organisations from Lapland are involved in example, knowledge of new materials and related the recently assembled cluster of Arctic development testing activities create the basis for understanding environments: the Lapland University of Applied the industry of the region. Sciences, the University of Lapland, the Lapland Co-operation helps young professionals Vocational College, the Vocational College Lappia, graduating from educational institutions specialise the Geological Survey of Finland, the Natural and find employment while the business, in turn, Resources Institute Finland and the Finnish Forest gains skilled labour. Centre. Often there is specialised expertise available in the In total, the cluster has around 50 different research and educational institutions of the region that development and innovation environments available meets the needs of those operating in that particular for rent to businesses and communities. The facilities region. are located in various parts of Lapland at, for example, In Lapland, there is experience of the fields of educational institutions, universities and research cold testing, metal industry, development of natural institutes. products and research in tourism, among many other “By compiling Lapland’s development things. Testing environments for, for example, social environments into a network, we aim to attract welfare and health care as well as sports in Arctic synergy from one development environment to conditions in particular are currently also much in the next but, primarily, save the time and money of demand. entrepreneurs when they are looking for a suitable workshop, laboratory or space for innovation,” FURTHER INFORMATION says Cluster Manager Raimo Pyyny from the field Cluster Manager Raimo Pyyny, of Industry and Natural Resources at the Lapland [email protected] University of Applied Sciences.

9 Often there is specialised expertise available in the research and educational institutions of the region that meets the needs of those operating in that D particular region. LAPLAN

d. RULES 1. Start the game in the middle of the boar ow the dice and move as shown by the- 2. Thr score of the dice. 3. You gain tools for developing your busithe- om each visit to a development envi ness fr cle, follow the ronment. ed 4. If you land in a special cir opment instructions it gives. ee developmentmiddle 5. The game ends when the developed eturned to the middle player has tried at least. thr environments and r with an even number as for gain ide or GAME OBJECTIVE ENTRERENEUR oduct, service or do you The objective of the game is to gain ideas for want help in developing the development of a pr your product or service? business ideaonments. by visiting Have various a developing develop time- Test our five-star deve ment envir lopment game!! - with the game! 3D printing environment Arctic Power WHAT: A research and develop- WHAT: Modern three-dimensional ment unit that specialises in spe- printing services from various cial Arctic conditions and smart materials. 3D modelling expedites Return to ICT systems. research, development and inno- square one vation chains and, to examine the FOR WHOM: Businesses and consequently, boosts product development communities that want to have development. environment selection. more efficient technical systems or to test the performance of FOR WHOM: Businesses, commu-mmu- products in challenging nities and inventors of all kindsds foforr conditions. product development, componentonent testing and to support innovation.ation. EXAMPLE: A company tests the performance of their product EXAMPLE: A company wantss to being designed through have an express model of a sket-ket- prolonged use at a temperature of ched device quickly. Time to develop the –30 degrees centigrade. WHERE: visual aspects? Lapland Vocational Stop by the video WHERE: Lapland University of College, Rovaniemi studio. Applied Sciences, Rovaniemi CONTACT: CONTACT: [email protected] [email protected] A FIVE STAR DEVELOPMENT REGION

132 78 69 LAPLAND

THE MOST DEVELOPING SOTE simulation GAME OF THE YEAR FOR ENT- REPRENEURS OF ALL AGES! The laboratory environment Put the Cool off development for one throw Social welfare environments to in the special of the Natural efficient use: Arctic and health care throw again. conditions. Resources simulation Institute Finland environment WHAT: Analysis of raw materials and innovation of WHAT: Open and multidisciplinary new products. training and learning environment to simulate practical situations that FOR WHOM: A business would otherwise be challenging to that wants to process natu- train for. Wait for 2 throws ral raw materials, test new and develop an idea products or search for new FOR WHOM: Professionals of the for a new project in components from plant field for training, education and the meantime. material for future pro- product development as well as for ducts. use as a trial, exhibition or test environment. EXAMPLE: A company needs information about EXAMPLE: A work community the properties of a raw trains its personnel to work as a material and the processed team and to identify key issues product as well as regar- related to the welfare of the ding international compari- customer. son to support product Video and sound studio Arctic Steel and Mining development and marke- WHERE: Lapland University of WHAT: Renting out equipment or the studio along WHAT: Metal industry research to support ting. Applied Sciences, Kemi with expert services for the product development of further various development, research and processing. WHERE: The laboratory of CONTACT: production projects. Audio-visual the Natural Resources [email protected] production services as student and FOR WHOM: Businesses, research Institute Finland, Rovaniemi business co-operation. institutes as well as educational laboratory exercises. CONTACT: FOR WHOM: Local businesses, organisations, [email protected], associations or film companies. EXAMPLE: A company performs tests in a [email protected] laboratory and, with the help of experts, EXAMPLE: A travel company from Lapland com- selects a suitable kind of steel for their pro- missions an advertising concept and its implemen- ducts that are meant for demanding condi- tation from a local AV company. The work is per- tions. formed in co-operation with the university. WHERE: Lapland University of Applied Scien- WHERE: University of Lapland, Rovaniemi ces, Kemi CONTACT: [email protected] CONTACT: [email protected]

10 Arctic Smartness

Design intersects industries and services

Businesses, science and How does Arctic design differ from ordinary design? art come together Design Design can be perceived as Arctic when it relates intersects industries and to phenomena, services or things that are typical services that is at the heart of of the Arctic regions, environmental conditions the Arctic design cluster. This and materials. Arctic Design gives local businesses a competitive advantage and generates Arctic results in solution-oriented expertise. innovations that stem from Arctic design generates new solution models for, for example, digital services in the tourism and Arctic expertise. experience industry. Design increases the comfort of people in northern Lapland has been profiled as having special expertise regions and provides plenty of opportunities for the in the field of design for years already. Design is an productisation of Arctic expertise. New business is intersectional activity and affects companies and generated for the important trades of the region. communities on many levels. Design is connected with the planning and How will the arctic design cluster and development of services, products, production the Centre for Expertise in Arctic processes, corporate cultures and facilities, among Design change the whole world and other things. The goal is to make the business, not just Lapland? product or service more competitive. The Centre for Expertise in Arctic Design is the The Centre for Expertise in Arctic Design aims to be heart of the Arctic design cluster. Its concept is to a state-of-the-art centre of excellence where research promote co-operation between the business life, and development work is conducted together with educational institutions and research institutes of the the regional business community and development region. A centre of expertise that focuses on northern organisations. and Arctic design supports the smart specialisation The Centre for Expertise also has a strong national of Lapland. and international network. Co-operation with various In addition to the Faculty of Art and Design of actors promotes the dissemination of the latest the University of Lapland, several participants are research information into practice. The extensive deeply involved in the Arctic design cluster, including network of The Centre for Expertise in Arctic Design Rovaniemi Development Ltd. as well as the City of opens possibilities for research funding that is greater Rovaniemi with the theme Arctic Design Capital. in terms of the amount received as well as duration, from both the EU and in Finland. What added value does design bring In the Centre for Expertise in Arctic Design, those to the planning of a service or product, operating in the region cross paths within the context Project Coordinator Tuomas Honka of art and science. This results in prototypes and from the University of Lapland? testing that combine the latest research, creative arts and design expertise. Design gives the product an accessible and functional Changing the whole world represents a major look. User-oriented design improves ergonomics, challenge. In 2025, however, the Centre for Expertise aesthetics, usability, manufacturability, cost- in Arctic Design will be the best place in the world effectiveness and eco-friendliness. to do design research which combines expertise on Design increases the quality and credibility of the Arctic culture and conditions through design and art. product or service. The organisations, products and services of Lapland have great potential that can be FURTHER INFORMATION refined into even more competitive business through Cluster Manager Timo Jokela design thinking. [email protected]

12 Arctic Smartness Design increases the comfort of people in northern regions and provides plenty of opportunities for the productisation of Arctic expertise.

ARCTIC N DESIG TER INTERNATIONAL CLUS CONNECTIONS BUSINESS Research and development CO-OPERATION environments, networks and institutes

ARCTIC DESIGN CENTRE OF EXPERTISE To be initiated in 2016 LAPLAND UNIVERSITY OF APPLIED SCIENCES Applied Service Rapid visual arts design prototyping LAPLAND VOCATIONAL COLLEGE

Mobile Exhibition Visual aspects fieldwork spaces and and interaction Design galleries Design research research

Arctic Design Week

UNIVERSITY OF LAPLAND

Startup

DESIGN BUSINESSES Startup

Startup INTERNATIONAL BUSINESSES THAT OPERATE IN THE BUSINESSES INTERESTED IN ARCTIC REGION DESIGN SERVICES

ROVANIEMI DEVELOPMENT RESEARCH, PROJECT FUNDERS REGIONAL THE CITY OF BUSINESS SUPPORT DEVELOPMENT ROVANIEMI SERVICES DEVELOPMENT AND ORGANISATIONS EDUCATIONAL Arctic ORGANISATIONS Design Capital

The Centre for Expertise in Arctic Design is the heart of the Arctic design cluster

The centre for expertise created at the Faculty of Art and Design of the University of Lapland promotes co-operation between Lapland’s business life, development organisations, educational institutions and research institutes. Those deeply involved in the Arctic design cluster include Rovaniemen Kehitys Oy and the city as well as other regional and international actors through networks.

13 From book: Keijo Penttinen ”Metsä - Suomen vihreä kulta” Lapland – the Arctic beacon of Europe

Lapland, the northernmost refined with respect for nature and people and in co- operation with other trades. region of Finland and EU, aims at becoming the leading Credibility from network co-operation Arctic region in the sustainable A reliable regional network of actors establishes utilisation of its vast natural credibility and effectiveness on the international market. Development work that aims at the resources. The balanced sustainable growth of industry, mines and their service combination of the industrial businesses has been conducted for a long expertise and commitment to time in Lapland. “We need to the sustainable development However, there set the goals high has been a desire enough.” are the core of the refining the to intensify the co- natural resources in the region. operation of the Kari Poikela, Digipolis network of actors The products and processes of Lapland’s industry further. The development team of the Arctic industry are suitable to any demanding conditions. Arctic and circular economy cluster established in autumn expertise is embedded to the products and services, 2015 strives for this in wide-ranging co-operation and the businesses do not always recognise it as a with the other clusters of Lapland. competitive factor,” says Programme Director Kari The Arctic industry and circular economy cluster Poikela from the Kemi Digipolis. assembles the industrial enterprises of the forest, metal In addition to deep specialist expertise, those and mining industries and their service actors into the operating in Lapland have good networks and same network which is supported by the development, they know each other. This facilitates the rapid research and funding organisations in the region. advancement of issues when it is necessary. Co-operation helps businesses with, product development, the identification of new business It is time to raise the profile of opportunities, internationalisation and the super- Lapland’s industry. vision of interests etc.. The Arctic industry and circular economy cluster’s The investment boom in the Arctic has been estimated goal is to find new operating models, partners and at dozens, even hundreds of billions of euros. There is funding opportunities that will bring more success to a need for Arctic expertise and specialisation. the Arctic industry businesses of Lapland. The growth “We need to set the goals high enough. When of business life increases jobs and, consequently, we market Lapland as a whole and as an important prosperity throughout the region. part of the Cap of the North, we are an considerable and desired partner on the international market and FURTHER INFORMATION in the competition for, for example, EU funding,” Cluster Manager Kari Poikela, Poikela continues. [email protected] In addition to Arcticness, the new wave of successful businesses from Lapland is defined by ecological innovation, the utilisation of industrial symbiosis and a sustainable way of operating. According to the industrial strategy of Lapland, natural resources are

15 What is the qrowth potential of industries related to the Arctic businessWhat of Lapland? is the growth potential of industries related to the Arctic business of Lapland? = turnover

High Metal Mining and industrial Forest industry services as well as industry eco-industries

Tourism

a. Natural products b. Local food c. Green construction d. Arctic testing Mines Y’S SIGNIFICANCE IN LAPLAND e. Biofuels

Reindeer herding c. d. e. Low a. b. THE INDUSTR THE INDUSTRY’S GROWTH POTENTIAL IN LAPLAND Low High

Source: The Arctic specialisation programme 2013, page 24

Lapland is Europe's model region in the sustainable refining of natural resources

LAPLAND WAS SELECTED one of the model regions for cluster deve- Industry* 1 lopment in Europe regions, along with five other European top regions. Mining projects Main roads of Lapland LAPLAND

NORWAY ood interna G tiona l co nn ec tio ns

Stockholm RUSSIA KITTILÄ Mining industry SODANKYLÄ Mining industry and bioeconomy Kolari Savukoski HambuH rgg KEMIJÄRVI Bioeconomy

Ylitornio ROVANIEMI Nord-Pas-de-Calais TORNIO Machinery construction and cleantech West Metal industry and Region metal processing Ranua of * Examples of Environmental Romania concentrated areas business KEMI of industry in Lapland Bioeconomy and and the strengths of the mining industry areas. CCentral Portugal

THE SELECTED MODEL REFINING OF SUSTAINABLE DEMONSTRATION REGIONS Lapland's strengths include NATURAL RESOURCES 2 shall demonstrate new or better A. Stable society 3 processing cluster work is continued ways of designing and implementa- B. Great infrastructure in Lapland with the Arctic Business tion modern cluster policy of Euro- C. Management of Arctic Concept (ABC) project. Especially, the pean Commission. The clusters are conditions development of the competitiveness, utilising the existing strengths of D. Diverse natural resources sustainable growth and internationali- the participants in the region exten- sation of small and medium-sized sively. companies is supported in this cross- sectoral cluster.

16 Arctic Smartness The cluster connects and strengthens ogranisations operating in the region

1. THE CLUSTER SUPPORTS the businesses in Development the region with utilising business support servi- organisations ces, strengthening research and obtaining funding, among other things.

Private and public BUSINESS 1 BUSINESS 2 2. THE CLUSTER CAN assist in funders applying for EU funding or in responding to large calls for tenders together. BUSINESS 3 BUSINESS 4 BUSINESS 5 3. FROM THE REGION, Businesses and others in the region get help with, for example, branding, marketing and the Training and BUSINESS 6 BUSINESS 7 research supervision of interests. organisations 4. THROUGH THE CLUSTER, National and businesses find new ways to international co-operate, new international partners contacts and markets.

Lapland resin sparks industrial- scale activities Bioeconomy is predicted as the next wave of the economy. In Lapland, there are both natural resources and expertise in the field of bioeconomy.

The Finnish resin salve intended for wound care recently passed a strict screening and was awarded full medicine reimbursement in the United Kingdom. In addition to Finland, resin salve is sold in Austria, Germany, Sweden, Australia, Greece and other countries. “There are only five million inhabitants in Finland, so the market here is limited. You must look for growth abroad,” says Production Manager of Repolar Oy Kyösti Vanha from Kolari and emphasises the importance of finding good partners when entering the international field. In the Repolar family business, research and development work on resin products has been conducted for ten years now. The time and money Repolar Pharmaceuticals Oy Production Manager consuming research evidence is an important selling Kyösti Vanha monitors the spruce resin product point, as is also the clean nature of Lapland. development line. “Finns have used a salve made from resin to treat, for example, chronic wounds and burns in humans and animals for hundreds of years. Now there is research evidence of its effect as well and the market is clearly ready for spruce resin from Lapland,” Production Manager Vanha rejoices on the opening up of new international markets.

17 Photo: Detria.fi Big visions of rural Lapland – still down to earth from Lapland,” says Vallivaara, who coordinates the Rural Lapland is more than cluster. a wilderness. The multiple In addition to ProAgria Lapland, participants involved in designing the Arctic smart rural cluster alternatives utilising the include the Natural Resources Institute Finland, the forests and hundreds of lakes Lapland University of Applied Sciences, the City of Kemijärvi, the Sodankylä municipality, Rovaniemi could upgrade and safeguard Development Ltd., the University of Lapland, Digipolis livelihood in the peripheral and many others in the region. rural communities. Openminded Energy-independent village in Lapland development and smart Xylitol, resin salve, berries, fish and functional utilisation of the potential will plants. Wood construction, advanced biofuels, provide new breeding ground biodegradable packaging materials and wood composite products. for the emerging industries and Bioeconomy is all of this and more. Sustainable plays a focal role in breaking processing of natural raw materials with modern the tendency of declining technology. The potential of the bioeconomy springs from economies in peripheral rural real needs. Traditionally forest in Lapland is seen as a communities. source of one product mainly used by the large forest industry. By thinking small, we can actually develop something big - new generation SME development “We live in the midst of nature’s own treasure trove. brings hope for the future. For example, people If we combine the expertise of those operating around the world are interested in fresh food from in different sectors in Lapland, we will have the Lapland and the new generation wood processing knowledge and skills to develop the products and business is growing. services that are already high in quality into world- Substitutes are sought for non-renewable raw class success stories,” says Johannes Vallivaara from materials. When we decrease our dependence on ProAgria Lapland, who has followed the matter on fossil fuels, we create new jobs in sparsely populated company level for years. areas at the same time. “We just need to dismiss our notions of a dying “With modern technology, an individual farm can countryside and trace a new smartly specialised, utilise a reasonable amount of waste energy and living rural Lapland of opportunities,” Vallivaara says. bioenergy. On the other hand, a whole village can be transformed almost energy-independent with Specialisation key to make Lapland’s moderate investments,” says senior rural business rural cluster top in Europe developer Keijo Siitonen from ProAgria Lapland. Based on recent research by ProAgria and By working together, companies and communities the Natural Resources Institute Finland, such an learn from each other and build trust, the basis of energy renovation would bring annual savings of successful co-operation. approximately € 800,000 to a village of 65 houses. “The purpose of the smart rural cluster that we That will have a direct cumulative impact on to have put together is to be an easily approachable economic development and generation of new network of experts, and with its joint efforts we aspire business. to raise rural Lapland from amateur level straight to top European class. You cannot succeed in European funding arenas as an individual organisation, you FURTHER INFORMATION need to have a more extensive group of participants Cluster Manager Johannes Vallivaara, [email protected] 19 Examples of rural Lapland’s potential

5

2 3 4 6

1

THIS IS RURAL LAPLAND

TODAY TOMORROW

1. Bilberry 2. Milk 3. Angelica 1. Bilberry 2. Milk 3. Angelica

PIN PIN PIN M LA LA LA Original MagicBlueEyes MAITO MAITO MAITO

It is estimated that about In Lapland, 2.5 times Wild angelica is harvest- Bilberries from Lapland Only a fifth of the milk Angelica is grown on 10 percent of the blue- more milk is produced ed to some extent. It is are valued and harvested produced in Lapland is fallow fields. Processed berry crop is harvested than is consumed. used in jams, sweets, more than before. processed outside the special products have each year. Bilberries are Processing is done only health products and Bilberries are processed region. Lapin Maito Oy is gained strong internatio- exported to China and at a few farm dairies. other products. into a variety of natural a new and growing dairy nal recognition. The plant elsewhere, where they products, most of which company. is protected under EU are used in the manufac- are exported. name protection similarly turing of health to the “Lapin puikula” products. potatoes from Lapland and reindeer meat.

4. Freshwater fish 5. Wood 6. Mushroom 4. Freshwater fish 5. Wood 6. Mushroom

1.8 million Finns go Less than half of the Small quantities of The most enthusiastic Refining of the wood Mushrooms from Lapland fishing as a hobby. 75% yearly growth of forests is mushrooms that have recreational fishers creates competitive and have become a hit of the fish eaten in utilised mainly by the grown in the cleanest air become professional diversified SME business. product. Finns have found Finland is imported from large industry. Timber is in the world are harvest- fishermen. More Finnish Lapland produces foreign partners with abroad. Selective fishing used for the firewood and ed from Lapland’s fish is consumed than modern construction whom a variety of mush- is done to manage fish sold as raw material. forests. Only a fraction of imported fish. The elements. The Kemijärvi room products are develo- stocks. Substantial Forestry is mainly seen as the mushrooms are formerly so-called coarse bioproduct mill utilises ped for the growing world amount of valuable a source of one product. exported. fish and processed fish wood in an innovative market. Event organiser protein ends up in products are exported to manner. Biodiesel is companies have begun to landfills. gourmet kitchens of produced from tall oil offer mushroom safaris. Central Europe. and new bio-based products are developed.

WHAT TYPE OF POSSIBILITIES DO MOST JOBS ARE CREATED IN MICRO LAPLAND IS THE LARGEST REGION IN RURAL ENTREPRENEURS BELIEVE IN? AND SMALL BUSINESSES THE WORLD TO HARVEST ORGANIC NATURAL PRODUCTS A question for entrepreneurs: in your opinion, Change in the number of employed people in how will the business opportunities of the Finland from 2001 to 2012 following industries develop in rural areas? Jobs 50 000 43 700 Adventure and recreational services 99 % 1 40 000 of the forest Lapland’s Renewable energy production area in 99 forests Local food and related services 30 000 Lapland

Tourism 18 500 qualifies as 20 000 16 830 organic. 12 490 Biomass processing 10 200 10 000 8 840 Nature and the countryside related... 780 –2 460 The air is proven to be among the Agriculture (organic production) 0 1–9 10–19 20–49 50–99 100–249 250–499 500–999 cleanest in the world and the nature is > 1000 people people people people people people people Mining people rich. In addition to superfoods, rural –10 000 treasures include fast-growing forests Forestry Source: Statistics Finland and the offerings of the waters. ICT services The figures have been converted into full-time jobs excl. agriculture and forestry Creative industries and culture Nursing services Agriculture (standard production) 1=decline Transport and storage significantly 5=improve Trade significantly Manufacturing industry

1 2 3 4 5 Source: Taloustutkimus, Rural Barometer 2014

20 Arctic Smartness Photo: Antti Kurola/ Lappset Group Ltd. Safety not brought about in isolation

The aim of the Arctic safety “HERE, IT HAS BEEN understood in cluster, or the Lapland safety an exemplary fashion that the mental and physical well-being of people network, is to forecast and starts with small things, the circle of ensure the safety of citizens people close to you and cooperation between neighbouring areas.” and the fluent running of business and trade. In Lapland, Erkki Parkkinen, current Mayor of Salla, safety co-operation is carried formerly of Pelkosenniemi, comments on out in civil safety, the mining the Development of Wellbeing and Civil operating environment, tourism Safety in Municipalities concept in 2013 and at sea. “TAKING care of safety means taking Lapland’s geographical location, sparse population, care of your business. A good safety nature conditions and, on the other hand, large reputation translates directly into more numbers of tourists require safety risk management sales. A company with a good safety know-how and competence to operate in Arctic reputation increases global demand.” conditions. The Arctic safety cluster brings together companies, Hotel Manager authorities, research and training organisations, cities Vesa Narkaus, and towns, and other organisations across Lapland. Hotel Santa Claus The aim is to strengthen international networks and Tourism and restaurant safety award 2013 safety business opportunities of the Arctic region. Safety networking in Lapland has been recognized as a national and international good practice. The “YOU MUST BE ABLE TO document keyword in co-operation is network competence. and verify safety with an auditing scheme, risk assessment and accident reports. The verification requirement Safety is integral to any com- runs through the entire network all pany’s quality the way to the last subcontractor. The entire network must understand their “THE PORT OF KEMI has already own obligations and responsibilities served as a centre of Arctic maritime as to how to take care of safety, what safety testing and events several information to convey to the client and, winters now. The wintry Bay of on the other hand, how to prepare for Bothnia offers an outstanding setting, risks.” and the Port of Kemi has excellent infrastructure. We look forward to Director of Operations significant growth in this business.” Rami Korhonen, Lapland Safaris Managing Director Tourism and restaurant safety award 2011 Reijo Viitala Port of Kemi

22 Arctic Smartness Fluent operations COMPANIES AUTHORITIES

NGOs

Services and Collaborative employment models MUNICIPALITIES SAFETY THROUGH CO-OPERATION

Decision-making processes RESEARCH AND TRAINING ORGANISATIONS TOURISM Tourism safety boosts the competitiveness and fau- lt-free operations of companies and increases tou- Reliable rists' feeling of safety. partnership Centralised Increase of data competence level Tourism Safety Research Training events, training, and Innovation Data Resour- company-specific coaching CIVIL SAFETY ces REIDAR matkailu.luc.fi/- Local multi-disciplinary Hankkeet/ Tutkimuksen-tie- safety work groups Civil safety and security consists of people's safety and topankki Further information from well-being. CIVIL SAFETY Tourism safety website tourism destination organisa- AND SECURITY www.tourismsafetytools.fi tions EUROPE'S BEST REGIONAL DEVELOP- HOW? matkailu.luc.fi/Turvallisuus MENT MODEL. • Proactive role Cities and towns must produce • All participants have a shared Livelihood municipal services with fewer objective resources than before. Develop- Tools for ment of Wellbeing and Civil WHAT? entrepreneurs Safety in Municipalities is a • Safe home, living and wor- Services concept developed in Lapland, king environment www.matkailunturvallisuustyokalut.fi helping various groups to work • Safe schools Risk management tool for risk together in a co-ordinated • Safety of movement evaluation and management fashion. Municipalities take the • Well-functioning basic Participation Self-monitoring tool to develop leading role in the processes. services and quick help when and monitor safety The model was awarded the needed Destination-specific safety plans Municipalities involved in the European Public Sector Award, Lapland tourism safety and EPSA (2013). security system CONTACT: CONTACT: Chief Networking Officer Project Manager MarkoPalmgren Eija Raasakka [email protected] [email protected]

MINING OPERATING SEA ENVIRONMENT Maritime safety focuses on the development of Arctic testing, training and pre- sentation environments. THE VALUE NETWORK MAKES UP the mining ope- rating environment cluster. The cluster generates business opportunities regionally, nationally and Companies and Environment People and A internationally. r ct sustainable and climate society ic

C i Regional National International r business c

l Logistics Weather and condition Telecommunications e Risk management competence and radio technology Materials competence Environment solutions Legislation Arctic Ocean R&D and Winter seafaring Ice competence Ports Public Shipbuilding Etc. Infrastructure Kemi training Etc. Etc. Bay of Bothnia administration

OBJECTIVE: internatio- nal Arctic testing and Financing training cluster in Kemi. Subcontracting activities CONTACT: MINING Managing Director INDUSTRY Kimmo Heikka Machine and [email protected] equipment Support suppliers services

Special Other services clusters FURTHER INFORMATION R&D Manager * Global, national and regional extractive companies Dr. Eila Linna Source: adaptation of thematic co-operation of Eastern and Northern Multidimensional Tourism Institute Finland 2014–2020, extractive industry CONTACT: [email protected] Senior Specialist Dr. Pekka Iivari [email protected] 23 ARCTIC DEVELOPMENT ENVIRONMENTS Cluster Manager Raimo Pyyny [email protected]

ARCTIC DESIGN Cluster Manager Timo Jokela [email protected]

ARCTIC INDUSTRY AND CIRCULAR ECONOMY Cluster Manager Kari Poikela [email protected]

ARCTIC SMART RURAL COMMUNITY Cluster Manager Johannes Vallivaara [email protected]

ARCTIC SAFETY Cluster Manager Dr. Eila Linna [email protected]

ARCTIC SMARTNESS Cluster Development Manager Ilari Havukainen [email protected]

luotsi.lappi.fi/arcticsmartness

Publication layout/ Reddo Partners Ltd. Infographics layout/ Miila Kankaanranta