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Regional Innovation Monitor Plus 2016 30 May 2016 Regional Innovation Monitor Plus 2016 Regional Innovation Report North Middle Sweden (Production related biotechnology) To the European Commission Internal Market, Industry, Entrepreneurship and SMEs Directorate-General Directorate F – Innovation and Advanced Manufacturing www.technopolis-group.com Regional Innovation Monitor Plus 2016 Regional Innovation Report North Middle Sweden (Production related biotechnology) technopolis |group| in cooperation with Iryna Kristensen and Nelli Mikkola, Nordregio Table of Contents 1. Advanced Manufacturing: Production related biotechnology 5 1.1 Overview of performance and trends 5 1.2 Business sector perspective 6 1.3 Scientific research potential 7 1.4 Role of intermediary institutions 9 1.5 Developing skills for the future 10 1.6 Major investment projects 11 1.7 International cooperation. 14 1.8 Policy support and delivery mechanisms 15 1.9 Good practice case 18 1.10 Leveraging the existing potential 24 2. Regional Innovation Performance Trends, Governance and Instruments 26 2.1 Recent trends in innovation performance and identified challenges 26 2.2 Institutional framework and set-up 28 2.3 Regional innovation policy mix 28 2.4 Appraisal of regional innovation policies 31 2.5 Policy good practice 33 2.6 Possible future orientations and opportunities 34 Appendix A Bibliography 37 Appendix B Stakeholders consulted 40 Table of Figures Figure 1: Organisational structure ................................................................................. 20 List of Tables Table 1 Regional innovation support measures ............................................................. 29 Regional Innovation Monitor Plus 2016 i PREFACE In the context of the growth and investment package set out in the Investment Plan of the European Commission, the Regional Innovation Monitor Plus (RIM Plus) provides a unique platform for sharing knowledge and know-how on major innovation and industrial policy trends in some 200 regions across the EU28 Member States. Launched in 2010, the Regional Innovation Monitor aimed at supporting sharing of intelligence on innovation policies across EU regions. Building upon the experience gained and results obtained during the period 2010-2012, the RIM Plus 2013-2014 provided practical guidance to regions on how to use the collected information, via a network of regional experts. Since 2014, the RIM Plus has introduced a thematic focus on advanced manufacturing. The RIM Plus 2015-2016 evolved from a general monitoring of innovation policies towards establishing a more thematic focus in selected areas in order to contribute to improving the competitiveness of European regions. Particularly, the RIM Plus aims through its activities and in close cooperation with the regional stakeholders and other relevant initiatives to: • contribute to the development of new and open spaces of collaboration and exchange on advanced manufacturing, each with a clearly defined thematic focus; • play an enabling role in providing evidence-based information on specific themes and bring in outside perspective from other regions; • map out regional practices in support of advanced manufacturing and relevant pilot/demo projects and work towards involving the relevant stakeholders; • provide an easy access and comparative overview of regional innovation policies and relevant actions in the field of advanced manufacturing; • share the lessons learned with the European Commission services to feed into the preparation of future programmes. The main aim of the 30 regional reports is to provide a description and analysis of developments in the area advanced manufacturing with a clearly defined thematic focus and regional innovation policy, taking into account the specific context of the region as well as general trends. All regional innovation reports are produced in a standardised way using a common methodological and conceptual framework, in order to allow for horizontal analysis, with a view to preparing the Final EU Regional Innovation Monitor Plus report. European Commission official responsible for the project is Alberto Licciardello ([email protected]). The present report was prepared by Iryna Kristensen ([email protected]) and Nelli Mikkola (Nelli.Mikkola @nordregio.se). The contents and views expressed in this report do not necessarily reflect the opinions or policies of the regions or Member States of the European Union, or the European Commission. The copyright of the document belongs to the European Commission. Neither the European Commission, nor any person acting on its behalf, may be held responsible for the use to which information contained in this document may be put, or for any errors which, despite careful preparation and checking, may appear. Further information: https://ec.europa.eu/growth/tools-databases/regional-innovation-monitor Regional Innovation Monitor Plus 2016 1 Executive Summary 1. Advanced Manufacturing: Production Related Biotechnology The NUTS 2 region Northern Middle Sweden (Norra Mellansverige) is a sparsely populated region, with approximately 832,810 inhabitants in 2014, consisting of three independent NUTS 3 regions (län): Värmland, Dalarna and Gävleborg. The regional GDP per capita (2007-2013) was €26,961 million, or about 7.2% of the national total. The region is well endowed with national resources and has traditionally been dominated by capital-intensive export industries – such as pulp and paper, steel and engineering, machinery and transport vehicles – which account for a large share of Swedish exports (about 34%). The value added generated by the manufacturing sector accounted for 16.4% of the regional GDP in 2013. Other important sectors are food processing, ICT and tourism. Global structural changes have resulted in outsourcing, reduced employment and international mergers and acquisitions. The manufacturing sector still constitutes the main source of employment in the region, exhibiting, however, a negative trend. Since 2011, the employment in low- and medium-low-tech manufacturing has declined by 1.4% in the region. In contrast, the share of the regional labour force employed in high-tech and knowledge-intensive sectors has increased from 2% (2011) to 2.8% (2014). The presence of a strong industrial base (i.e. the forest industry) has provided a solid platform for the transition to the forest-based bioeconomy. The new trends in the manufacturing sector of North Middle Sweden include: recycling of biological raw materials, feedstock, biorefining and especially lignin development (a side product of paper production). The University of Karlstad (Värmland) is an important knowledge source and innovation partner for regional industry, and is actively involved in regional innovation and cluster development. • Challenge 1: To increase internationalisation of cooperation structures The aim of the bioeconomy is to ensure sustainable production and use of natural resources. A cross-sectorial and systematic approach, with a basis in the circular economy, is the main focus area. Programmes, project activities and networking initiatives in the bioeconomy sector are needed in a macro-regional context – initiating, catalysing and facilitating activities to realise bioeconomy not just in North Middle Sweden but also in the Nordic Region, the Baltic Sea Region and Europe. • Challenge 2: To incorporate biotechnological skills into vocational education and training Although broad collaboration has been established with academia, the biotechnology cooperation network lacks a clear reference to vocational skills development, which is regarded as a main condition for realising a cross-sectorial and systemic approach to bioeconomy. Sustainable growth of the bioeconomy sector depends on several interlinked factors, of which an important one that still remains to be realised is the supply of vocational specialists trained in subject areas that have been identified by the key stakeholders in the sector. Clear occupational standards need to be developed in North Middle Sweden, followed by the development of industry-relevant qualifications and curricula. The link between the regional labour market and the university and research fields is long established. However, vocational standards and qualifications that respond to the growing demands from a growing bioeconomy industry cluster need to be developed. 2 Regional Innovation Monitor Plus 2016 • Challenge 3: To increase the number of technology-focused intermediate institutions During recent decades, Swedish innovation and technology-transfer institutes have indicated a tendency to concentrate in larger urban areas. The lack of regional representation of these intermediaries leaves sparsely populated regions in a disadvantageous position when it comes to promoting the diffusion of R&D results and the uptake of advanced manufacturing technologies by local industries. This national trend appears to be turning, but the presence and capacity of technology-focused institutes, for instance, in North Middle Sweden remains insufficient for realising the full potential of regional innovations. Both the cluster organisations and research institutes have a key role to play as policy mechanisms for driving industrial competitiveness. The low number of technology- focused innovation centres holds back efforts to scale up research and innovation into commercial applications. In order to tackle this issue, dialogue and common effort between the national level and the regions is essential. 2. Regional Innovation
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