Defris Partners: ÖSTSAM – Regional Development Council Of
ÖSTSAM – Regional Development Council of Östergötland, SE Regional Council of Central Finland, FI Defris Partners: Regional Council of Pohjois – Savo, FI Kaunas County Governor´s Administration, LT Regional Authority of Kujawsko-Pomorskie Voivodeship, PL
Defris – DEVELOPMENT OF FIRST DIVISION REGIONS A project part-financed by the European Union (European Regional Development Fund) within the BSR INTERREG III B Programme Publisher Regional Council of Central Finland Address: Sepänkatu 4, 40100 JYVÄSKYLÄ, Finland Tel.: +358- (0) 20 7560 200 E-mail: [email protected] http://www.keskisuomi.fi
Editor Satu Heikkinen
Publication B160 ISBN 978-951-594-301-9 ISBN 978-951-594-302-7 (electronic) ISSN 0788-7043
Edition: 50 copies
Cover: Rafal Modrzewski
Printing: University of Jyväskylä, University Printing House, 2007
SUSTAINABLE REGIONAL DEVELOPMENT STRATEGIES AND NETWORKS
April 2007
Work Package 3 Sustainable Regional Development Strategies and Networks Central Finland
Contents
Introduction 2
Methodology 5
Project reports 8
1. Regionalization – study and strategy Activity A: Aspects on developing Central Finland’s competitiveness 9 Activity B: Central Finland Promotion Event 17
2. Commercial service networks and future scenarios Activity C: Commercial services of Central Finland, Commercial centres and the developmental potential of trade 21
3. Studies of potential for business and traffic Activity D: The Development Plan of Hirvaskangas 32 Activity E: Road 9 Development Zone Jämsä-Jyväskylä-Hankasalmi 37
Dissemination 46
Transnationality and conclusions 48
Appendix 1: Target development zones 50 Appendix 2: Project information formulas (3) 52
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Introduction
The purpose of Defris project is to enhance the competitiveness of the medium-sized regions in the sphere of influence of the metropolitan areas. It aims to answer to the questions of how these first division regions can benefit from the growth of metropolitan areas through developing cooperation and networks. The Defris regions have a special development and growth potential of their own in terms of size and location. The partners of DEFRIS project in Sweden, Finland, Lithuania and Poland belong to the First Division of these countries.
Central Finland is a first division region located outside the metropolitan region of the capital Helsinki, but still within its area of influence. Other areas which have an impact on Central Finland’s growth and development are the Tampere Region to the south-west and the Kuopio region to the north-east of Central Finland.
The Defris project is divided into four items (Work Packages) and implemented during 2004 - 2007. The four –part structure of implementation has been particularly important to the progress of the project, learning and fruitful international cooperation. The project started with Work Package 1 and 2, in which background information was collected concerning the conditions in the partner countries and the field of regional development. The strategic focus of Work Package 3 was on the development projects of the First Division Regions. The fourth Work Package consists of the dissemination of the project results.
This Central Finland’s partner report of Work Package 3 describes the results of the strategic regional projects implemented in Central Finland, as well as outlining the conclusions of the international cooperation. The choice of strategic regional projects implemented in Work Package 3 in Central Finland was affected both by the location of the region and by its characteristic starting points. Thus, in Central Finland we have looked for answers to the questions of the Defris project by implementing strategic projects based on the following four starting points (I-IV):
I Development zones as a factor for the regional development
According to a study “Regional development zones in regional development” the aim of the regional development zones is to combine economic growth with balanced development by directing development in a zonal way between the growth centers and in the vicinity of urban areas. Large roads, railroad, or waterway forms the main structure of regional development zones.1 The underlining idea is that as the growth areas expand, the surrounding areas are assimilated into one urban structure from the point of view of employment areas, business life and public service structure. The growth pattern described above seems to develop along the lines of traffic as a chain-like structure called a development zone. The thinking behind the development zone process has been seen as the way to the holistic and balanced regional development. On the other hand it is a tool in guiding the growth trend towards beneficial development for the region. In Central
1 Regional development zones in regional development, Jauhiainen & Harvio & Luukkonen& Moilainen, Ministry of the Interior Finland, Publications 22/ 2007, http://www.intermin.fi/julkaisu/222007
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Finland the most attractive development zones in terms of housing, employment and traffic are: the Jyväskylä region in relation to the Helsinki area as interregional development zone, Tampere- Jyväskylä-Kuopio as interregional development zone and Jämsä-Jyväskylä-Äänekoski development zone as regional development zone. Information on Central Finland growth corridors was gathered during Work Package 1 and 2. This identification and visualization of development zones was used as basis for the chosen strategic projects during Work Package 3. The identification of the development zones, Appendix 1.
Central Finland, as a Defris region, alongside to the Helsinki metropolitan area, has its own distinct features. The location of the region is good, but the traffic accessibility at the moment is incompetent. For example compared with the direction of Tampere and Oulu, the region lacks international air connections and a fluent highway connection to the capital region. Central Finland is located 270 kilometres north of Helsinki. Other major growth centres are Tampere 150 kilometres to the south-west and Kuopio 147 kilometres to the north-east. Travelling time from the centre of Helsinki to Jyväskylä is at fastest 2 hours by plane including trips to the airport etc., 3 hours by train and 3 hours by car. Commuting to the metropolitan area with the current connections is presently too long of a distance.
II Sustainability of services
At the same time, the sparsely populated areas of Central Finland outside the growth centres and development zones suffer from out migration and deterioration of the service structure. One of the indicators for service structure from the point of view of the consumers is the development of retail and specialized trade as well as the basic services provided by the municipalities. From the point of view of the rural areas, the scattered spatial structure reflects in practice to daily traffic conditions, trade and municipal service structure.
Therefore, the effect of growth centres is twofold. The attractive centres create potential and positive growth circumstances, but on the other hand the concentration of functions can be seen diminishing the competitiveness of rural areas. The trend of concentrating and diffusing spatial structure is hierarchic: the relation of the metropolitan area to Central Finland is relative to the relation of Jyväskylä region to the smaller centres in Central Finland.
III Competitiveness of the region
On the other hand, as Central Finland is located that far from the capital region, it has aptitude to develop as an independent and appealing functional area benefiting from the growth of the metropolitan region. The opportunity to respond to the growth of the Helsinki capital area can be for example by offering experts to the sectors short of employees, by providing good operational conditions for new businesses outside the metropolitan region, by serving as a base for outsourced functions of the businesses and regionalized public service functions.
It can been clearly seen that Central Finland has a special potential to benefit from the growth of the Helsinki region. A survey made by TNS Gallup in the fall of 2006 claimed the Jyväskylä region in Central Finland as one of the most attractive urban regions measured by the attractiveness of trade in the area. Every third resident in Jyväskylä is a student and the University of Jyväskylä is one of
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the most popular in the country. The university houses three of the 18 top research units appointed by the Academy of Finland in December 2006. Central Finland has many internationally operating businesses and the area is a strong actor in metal, wood and electronics industries as well as in the fields of graphic design and communication. The region has a specific appeal in the fields of trade, basic industries, education and research. Central Finland is also known for the conference and trade fair services and facilities. For instance, during 2006 552 different kind of events took place in Jyväskylä Paviljonki. The Jyväskylä Fair Ltd as part of Jyväskylä Paviljonki services is one of the largest exhibition organizer in the Nordic countries, the services include 20 000m² exhibition space.
It was stated in the study made by the Central Chamber of Commerce of Finland “Regional competitiveness in the point of view of businesses 2005” that the main factors for the location choices of companies are the closeness of the markets, availability of suitable work force, well functioning transport connections and simply the fact that the area is a growth centre. Also effective transport connections and maintenance of transport infrastructure were seen as major factors for the competitiveness of the area. However, also image, marketing factors and occasionally even personal connections and networks affect the overall competitiveness.
In a regional strategic program in 2006 the region has placed the following themes as the strategic development areas: renewable machines and equipment (e.g. next generation electronics and basic industry innovations), bio society as a resource (e.g. renewable materials and production processes, nanotechnology know-how) and the future needs of the customers (e.g. developing housing and transactions, wellness technology).
IV Interregional cooperation as success factor
A factor in the success of the region is undoubtedly the inter-regional and -municipal cooperation and common development projects. The development of a single local area can be carried out by investing in certain chosen function, field or project. From the point of view of balanced regional structure it is important to find and develop successful key or appeal factors. In sparsely populated areas even one successful business or business area can trigger the development of the surrounding area. An example of this is the Himos area in Jämsä, which started as a skiing centre and is now developing as an area-wide business cluster. In the end, the inter-municipal or inter- organizational development projects are not typical development activities. It has been seen during the pilot projects of Defris-project that these kinds of activities give birth to new networks and common projects.
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Methodology
The above mentioned goals of the Defris-project, the unique qualities of Central Finland as a first division region and the above defined potential for growth along the development zones influenced the choice of strategic development projects during Work Package 3 of the Defris project. The basis and aims for the chosen projects were:
1. Regional competitiveness, promotion, regionalization and functional environment of businesses
To more clearly look into the factors of the competitiveness of Central Finland, e.g. to what development challenges of the metropolitan region could Central Finland answer to, how to compete for the regionalization of the growth of the metropolitan region, to create a promotional strategy of Central Finland towards the metropolitan region.
Æ Project 1: Regionalization – study and strategy
2. Polycentric communal structure, e.g. in commercial services
To produce background information on the development of commercial services in Central Finland for the service of regional long-term planning and to comprehensively map the plans of local municipalities for trade and tourism units.
Æ Project 2: Commercial service networks and future scenarios
3. The strategy of development zones as a factor for the area’s attractiveness, the development of business
To carry out regional pilot projects from the point of view of development zones with themes of transport and business life that create untraditional participation and commitment to regional development over organizational limits.
Æ Project 3: Studies of potential of business and traffic
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1. 2. 3. Regionalization Commercial Studies of – study and service networks potential for strategy and future business and scenarios traffic
D A C The development Aspects on Commercial plan of developing services of Hirvaskangas - Central Finland’s Central Finland competitiveness E Road 9 B Development Central Finland Zone Promotion Event
Figure 1. Work Package 3 strategic projects and activities within in the projects
Based on the abovementioned assessments three strategic projects were named and carried out. To actualize these three projects they were divided in to smaller five activities A-E (Figure 1). The table (Table 1) below describes the operational and strategic level of activities. Operational level in this context refers to the regional level at which data collection, the final result of the work process or practice is targeted. Strategic focus here refers to the regional level at which the far-reaching and expected effects of the activity are targeted. The projects implemented were chosen so that they would have an impact at different regional levels (local, regional and interregional), even if the aim was for the projects to have a wider strategic influence (Figure 2).
Strategic focus Operational level local regional interregional The development plan of The development plan of local Hirvaskangas - area Hirvaskangas – area
Commercial services of Central Finland regional Road 9 Development Zone
Aspects on developing Aspects on developing Central Finland’s Central Finland’s competitiveness competitiveness interregional
Central Finland Promotion Event
Table 1. Operational and strategic level of the implemented activities
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Figure 2. Central Finland’s five strategic activities’ impact at different regional levels (local, regional and interregional)
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The projects were not scheduled to be implemented simultaneously but to overlap. The implementation of the projects can be described on a time line (Figure 3).
Activities on a time line:
IV/2005 I/2006 II/2006 III/2006 IV/2006
Aspects on developing Central Finland’s competitiveness
Commercial service network of Central Finland
Road 9 Development Zone
The development plan of Hirvaskangas - area
Central Finland Promotion Event
Figure 3. Activities on a time line
The transnational work methods consisted of project presentations by the partners, discussion and group sessions in seminars (5 seminars) and work group meetings (4 meetings). The results of the seminars and work group meetings were also reported and combined in matrices and tables to outline the progress of the process. In addition to the discussions and communication at the meetings, the partners agreed to produce a newsletter in order to share their work with each other between the joint meetings. The partners described the various project concepts using special project information formulas. The formulas consist of key information on each project and were completed as the projects proceeded. Central Finland’s three project information formulas are attached to this Work Package 3 partner report (Appendix 2).
This partner report is Central Finland’s final report of Defris Work Package 3. The report summarizes the outcome of the strategic projects and activities within, describes the background methodology and dissemination activities of the projects, and finally summarises some the experiences of international cooperation and success factors of medium-sized regions.
Project reports
The Work Package 3 project reports of Central Finland were written in Finnish and their summaries in English. The reports are available on the website of the Regional Council of Central Finland2. Separate publications were issued on the reports ‘Commercial Service Network of Central Finland 2005’ and ‘Aspects on developing Central Finland’s competitiveness’, which can be ordered from the information service of the Regional Council of Central Finland. Following five activity reports are the summaries of the full reports.
2 http://www.keskisuomi.fi/defris
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Project 1 Regionalization – study and strategy
Activity A Aspects on developing Central Finland’s competitiveness
1. Aim and phases of the activity
The objective of this activity was to utilize the growth potential of Helsinki Capital region in Central Finland. The aim was to formulate “sales strategy” and action plan for utilizing the development potential of Helsinki metropolitan area. The result is a written assessment ”Aspects on developing Central Finland’s competitiveness” of Central Finland’s capacity and possibilities to meet metropolitan needs. This activity report is a summary, the full report in Finnish is available on the web pages of Regional Council of Central Finland. The findings and results of the study to improve Central Finland’s competitiveness were also a basis for other activities during Defris project.
In the study first the development needs and future challenges were identified, the capacity of companies, decision-makers and other actors in Central Finland to respond to the needs was examined. The study was partly carried out as an interview survey on development needs in the Capital region and Central Finland. Some 35 representatives of various organizations, the public sector and large companies were interviewed in the Helsinki capital region and in Central Finland. In the study new ideas, new means, tools and channels for marketing and aspects for developing Central Finland’s competitiveness was examined. The activity was devided into three phases:
Phase 1: Assessment of the needs of the metropolitan area
• The indicators of information were chosen, data was collected and studied. A total of 12 interviews with enterprises, public sector officials and NGOs operating in the metropolitan area were carried out.
Phase 2: Assessment of Central Finland’s capacity to meet the needs
• Indicator comparison was made between the Capital region and Central Finland (indicators relating to living conditions, housing, entrepreneurship and employment). • A total of 20 interviews with actors in Central Finland were carried out and analysed. • Also experiences of regionalization and outsourcing were studied, examples of public administration and companies.
Phase 3: Formulation of strategy, action plan and concrete development targets
• In the study Central Finland’s image, SWOT -analysis, company operating environment, examples of regionalization and outsourcing were analyzed. Finally an action plan was formulated with suggestions of immediate, short term and long term procedures.
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• The report Aspects on Developing Central Finland’s Competitiveness was completed. The report is a strategic tool and a starting point for other pilot projects within the Work Package 3 of Central Finland. • The final report has been distributed electronically and as a paper print to the actors of Central Finland, for example, to municipal managers and the members of the work group Internationalizing Central Finland (Kansainvälistyvä Keski-Suomi). • The survey pulls together and highlights the views of regional actors on the competitive ability and potential of the region, and can be utilized by actors and decision-makers in Central Finland.
2. Summary of the report Aspects on developing Central Finland’s competitiveness
2.1 Operating environment analysis
Central Finland’s image and SWOT analysis
Central Finland’s image was found to be primarily positive among the interviewees in the capital region. As a province, Central Finland does not seem to stir much passion one way or the other. For many people, Central Finland is a synonym for the city of Jyväskylä, which is known as “youthful and dynamic”, but also as “lacking personality and quite dull”. Jyväskylä is identified as an academic city with remarkable research activity. The interviewees think that Central Finland is a beautiful province with a favourable location, competent labour force and good conference services. However, Central Finland is not very well known in the capital region, and the general opinion is that “Jyväskylä is the only thing worth mentioning there”. Central Finland’s problems are the huge differences in development within the province and Jyväskylä’s emphasized position. In this survey, following Central Finland’s strengths and weaknesses were detected for the province (Table 2):
Strengths Weaknesses
Central location Heterogeneous province, lack of attraction outside University and Polytechnic, and their research work Jyväskylä Availability of trained employees Long distance from the capital region and poor traffic access High-quality living environment Problems relating to structural change (from Short distances within the region (Jyväskylä region) traditional manufacturing to new top industries) Established cooperation between authorities, High unemployment rate companies and schools Financial problems in the municipalities Strong, attractive provincial centre Municipal structure in the Jyväskylä region Good availability of free-time activities
Technological development, interdisciplinary activity
Table 2. Central Finland’s strengths and weaknesses
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Based on the survey, following opportunities and threats were identified that may affect Central Finland’s future (Table 3):
Opportunities Threats Expertise in high technology and links to all areas of Increasing income differences, general decline of life – “Human Technology” the province outside the Jyväskylä region Employees with training tailored to the needs Traffic investments are slow and expensive Educational expertise – Jyväskylä, Finland’s “capital Industrial productivity problems, “China syndrome” of education” Environmental disasters, terrorism and pandemics Growth of domestic tourism and holiday centres Lack of cooperation Faster traffic connections Increasingly unfavourable age distribution Technological development, “overcoming distances” Continuous decline of municipal economies Development of the Jyväskylä region as a growth centre Demand for high-quality living environment close to services
Table 3. Central Finland’s opportunities and threats
The Finnish provinces are not known outside the country. In general, Finland is poorly known even within the EU. The best known regions are probably “Lapland”, “Finnish Lake District” and “Helsinki”. Jyväskylä is definitely better known than the province of Central Finland. Therefore it is important for the competitiveness to reinforce the growth centres, so that the effects will be reflected in the surrounding areas. It is unrealistic to expect peripheral areas to develop at an equal pace with provincial growth centres. Some interviewees even suggested that provincial boundaries should be abolished, or the names of provinces should be changed to resemble the names of the growth centres.
Sufficient population and business base is essential for competitiveness. According to forecasts, the population of Central Finland will increase slightly in the next few years, and at the same time it will concentrate even more strongly around Jyväskylä. The future threats include rapid negative development of the age distribution (aging population), dropping birth rates and migration of young people and people in their best working years. Young people will migrate increasingly to other European countries and even to other continents. Therefore, all available means should be used to improve the image of Jyväskylä and the surrounding areas as an attractive region for the young.
The chances of Central Finland, and other Finnish provinces, to succeed in the competition are essentially related to competence. Labour and production costs will probably remain high in Finland, so the possible alternatives include developing competence and product development to a sufficiently high level, or specializing in some narrow product sector. In Central Finland, strong educational competence, established cooperation between schools, companies and the public sector as well as interdisciplinary high expertise provide a solid basis for succeeding in the competition. People want urban experiences and services, but on the other hand, high-quality living
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environment, aesthetical values, elements that facilitate everyday life (like short distances) and a large selection of activities are becoming increasingly important. Direct international traffic connections will be a basic requirement for successful business, as time is becoming one of the most important elements of competition.
Company operating environment
The Central Chamber of Commerce has published a report on companies’ opinions on regional competitiveness (”Alueiden kilpailukyky yritysten näkökulmasta 2005”). The report stated that for companies, the most important criteria for selecting a location include short distance to the market, availability of suitable employees and good traffic connections. Companies also preferred growth centres. When company representatives were asked how the competitiveness of a region could be improved, they listed as the most important factors the development of efficient data communications and maintenance and improvement of the existing traffic inftrastructure. The following table (Table 4) contains an assessment on how well Central Finland meets these criteria which are essential for competitiveness.
How well the criterion is met How well the criterion is met Criterion affecting competitiveness in the Jyväskylä region in the rest of Central Finland Short distance to the market Moderately well or well Moderately well
Availability of suitable employees Very well Moderately well, well in some industries Good traffic connections Rather poorly Rather poorly
The region is a growth centre Well Rather poorly (in regional centres) Good data connections Very well Mainly well
Low labour and production costs Moderately well Well
Pleasant and safe living environment Well Well
Table 4. How Central Finland meets the criteria essential for competitiveness
2.2 Examples of regionalization and establishment of companies in Central Finland
An objective of this survey was to find practical examples of public sector functions regionalized in Central Finland and of companies that have established themselves in the province. The objective was to collect experiences of the advantages and disadvantages of being located in the province, and to find new aspects for the development of regionalization and for facilitating the establishment of companies in the region. When selecting the representatives, it was investigated what public sector functions have been regionalized and relocated in Central Finland during the past three years. As regards the employment effect, the most important regionalized functions include the National Land Survey of Finland’s archives (30 people), the secretariat of the Education Evaluation Council (8) and the Office of the Ombudsman for Children (6). A decision has been made on regionalizing the command system centre of the Defence Forces (40), and there are
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regionalization plans concerning, for example, the mass taxation centre (130), Stakes regional office (15), regional office of the Finnish Game and Fisheries Research Institute (7) and Tekes regional office (5). Representatives of the public sector and companies were contacted, and they were asked whether they would be interested in participating in the survey as a practical example. One representative from the public sector and one representative from a company were interviewed (see full report in Finnish).
Public sector
Provinces have had great, even unrealistic, expectations on the employment effect of regionalization. Regionalization has proceeded slowly, and at the beginning of 2006 the actual employment effect was 2,600 people in the entire country. This means that regionalization of public administration will not alone solve the problem of unemployment in the provinces. However, in the best circumstances, regionalization may have considerable positive reflective effects. A good example of this is the decision to locate the Information Management Centre of the Finnish Police to north Finland, in Rovaniemi. This had a strong impact on the development of a security cluster in the region.
Companies
A strategic decision to expand business, outsource functions or change the content of business is often behind a company’s decision to relocate itself. The abovementioned important criteria that affect competitiveness are critical for the decision to relocate: short distance to the market, availability of employees, good traffic connections and a location close to a growth centre. Companies that have established themselves in the province are involved in call center business, financial administration, ICT sector and metal industry subcontracting, etc. According to the interviews reasons for outsourcing and not to outsource are (Figure 4 and 5):
Reasons for outsourcing (1 = Not important at all, 2 = Slightly important, 3 = Somew hat important, 4 = Rather important, 5 = Very important)
Implementation of new technology
Availability of human resources
Improved controllability
Balancing of capacity Turning overhead costs to variable costs
Lower costs Strategic decision
11,522,533,544,55
Figure 4. Reasons for outsourcing
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Reasons for not outsourcing (1 = Not important at all, 2 = Slightly important, 3 = Somew hat important, 4 = Rather important, 5 = Very important)
Costs Lack of experiences
Difficult to control
Difficult to purchase Poor quality of supply
Lack of supply
Strategic reasons 11,522,533,544,55
Figure 5. Reasons for not outsourcing
2.3 Customers and other target groups
With regard to the development of Central Finland’s competitiveness, the following customers and other target groups are among the most important:
Large companies in growing industries Public sector functions that are to be regionalized Graduates Young people and young families
2.4 Focusing the marketing
Four Central Finland “future opportunity" areas were clearly emphasized in the survey, and the marketing of the region should focus on them. They are: 1) higher education and the centres of excellence in research, 2) availability of competent employees, 3) ICT expertise, utilized in all sectors of expertise and all areas of life 4) conference travel.
2.5 Objectives relating to competitiveness
The marketing work plan is based on a similar marketing plan that companies use. Regions must be able to market themselves with similar advanced tactics that companies use to market their products or services. The competition for competent employees, international investments and companies will force the regions to improve their attraction factors and marketing, to distinguish themselves from the competing regions. The procedures and marketing tactics aim to change the existing situation by operational and image-related changes that will start a positive trend. This survey process did not include defining the objectives of marketing for Central Finland, but operational goals may include the following, for example:
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• Balanced population growth, with in-migration exceeding out-migration • Growth of investments in Central Finland (€ million) • Increasing number of companies (for example, at least 1,000 new enterprises per year, or the number of new companies should exceed the number of closing companies by 200 or more). • Objectives based on images may include: o Image of Central Finland as a pleasant, business-friendly province o Knowledge of the province’s good conference services o Image of pleasant high-quality living environment close to services
The goals of marketing must be measurable. The images and the development of the region’s image can best be monitored by various customer satisfaction and image surveys. The principles of marketing communication have already been discussed in the communication strategy section of this study (see full report in Finnish). Here is a proposal for practical implementation:
• Development of a uniform marketing slogan and message (expanding the Human Technology City brand of Jyväskylä and its vicinity into the province and adapting it to the capacity of the regions) – regional business development companies and municipalities have the main responsibility. • Development of uniform communication guidelines and related training as part of “service guarantee” – Jyväskylä region communications team is responsible. • Development of information packages, at least to selected main target groups: large companies in growing industries, those implementing regionalization in the public sector, graduates, young people and young families – regional business developers have the responsibility. • Harmonisation of the content and general appearance of websites (maintaining personal touch), harmonisation of brochures and other promotion material – the Regional Council of Central Finland, business development companies and municipalities are responsible. • Usage and development of new electronic communication channels – schools, Jykes Oy and municipalities (through projects) are responsible. • Development of efficient sales and marketing work linked with communication, identifying new marketing partners in the capital region – the Invest in Jyväskylä project, business development companies and municipalities are responsible.
Phasing of the measures and organizing the work
The development of competitiveness in practice requires prioritizing and making choices, as well as phasing the measures. Marketing work shall be targeted at central target groups with the greatest importance. Practical measures can be divided into immediate procedures, short-term procedures and long-term procedures. Immediate procedures shall be carried out this year (2006) as soon as the commitment of the participants has been confirmed. Short-term procedures will mainly take place within five years, in 2011 at the latest. Long-term procedures will be carried out mainly during the next 5–10 years.
The table (Table 5) below includes proposals for procedures. Some of them were selected from various sections of the strategy and some were made during the development of ideas.
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Immediate procedures Short term procedures Long term procedures
Uniform communication guidelines Service guarantee campaign Establishing service centres Development of uniform marketing Developing information packages Municipal restructuring: slogan and message for the main target groups larger municipalities Appointing a committee to Regional marketing events Development of 1–2 new investigate the possibility of joining Harmonization of websites travel centres or attractions City of Jyväskylä and Jyväskylä Construction of a motorway Municipality Developing new communication channels on the east side of lake Brochures on housing alternatives Päijänne Finding marketing partners Investigation on tourists’ needs and International airport the attraction of Central Finland Investigation on service needs and overlapping services Æ service Investigation on functions to be centre pilot regionalized Investigations on joining Investigation on subcontracting and municipalities recruitment needs in the capital region Quality investigation and strategy for the use of regions in pilot areas Forming a team to promote regionalizing Entrepreneurship training to ensure the continuation of Launching network cooperation with business in retirement situations the other provinces in this part of Finland (“Middle Finland”), Establishing innovation preparation of a joint development communities project Development and construction of Himos Development of the centre of Jyväskylä Marketing targeted at those deciding on regionalization Development of new, attractive residential areas Fast train connections Table 5. Proposals for immediate, short term and long term procedures to enhance competitiveness in Central Finland
It is important to find a natural functional role for each organization. The roles and distribution of duties must be contemplated both through the target groups and the content of the work. The major participants include: Regional Council of Central Finland, the employment and Economical Development Centre of Central Finland, regional business development companies, schools, municipalities and companies.
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Project 1 Regionalization – study and strategy
Activity B Central Finland Promotion Event
1. Background and aim of the activity
According to the study carried out in Central Finland’s Defris activity “Aspects on developing Central Finland’s competitiveness” one key factor in decisions of regionalization of public sector functions and outsourcing parts of business or establishing a company in provinces (here, Central Finland) is trust and personal contacts to the region. According to the same study with regard to the development of Central Finland‘s competitiveness, the following customers and target groups are among the most important: large companies in growing industries, public sector functions that are to be regionalized, graduates, young people and families. This activity’s target group is the two first mentioned.
The activity aims to raise awareness of the region’s possibilities and strengths and to better the connections to the metropolitan region of Helsinki. Central Finland has many successful actors but still slightly suffers from a reputation of being a location too distant and not having the resources needed for e.g. businesses and regionalization of public sector functions. This activity is marketing Central Finland targeting at those deciding on regionalization and growing large companies. By presenting the opportunities and strengths of the region, it can be expected to raise the image and attractiveness of the area. As the region is presented in a uniform manner with regional interests and common qualities, the promotion strengthens the local identity as well.
The promotion of Central Finland to metropolitan area with a video and gala evening was designed to have an effect on this image creating possible opportunities for the region in the future. As the strengths and possibilities of the region are presented to selected people, it can have a positive effect on the overall image of the region. The idea behind the strategy is that Central Finland can be promoted with similar strategies as products. The Central Finland’s promotion event offered a networking arena for personal contacts between metropolitan area and Central Finland, it was “selling” of Central Finland to metropolitan area.
The Central Finland Promotion Event in Helsinki was an opportunity of networking between Central Finland and metropolitan area. During the night Central Finland’s representatives of business and public sector could build personal contacts to representatives of metropolitan area’s organizations in order to build trust and ground for possibility of new ventures. The project created wide interests among Central Finland’s the municipal actors and for instance the development companies of the region. Many parties participated in the planning of the event and the presented material. The planning process has strengthened the cooperation between municipalities as unified and harmonious representatives of Central Finland.
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2. Central Finland Promotion Event
The Regional Council of Central Finland and the Defris project organized a special evening for Central Finland, Central Finland’s Promotion Event in Helsinki on the 18th of January 2007. Based on the motto ‘more business and jobs to Central Finland’, our region was promoted to potential promoters of Central Finland operating in the metropolitan area of Helsinki.
The event gathered together old and new friends of the region and strengthened their contacts with Central Finland. The event was offered to a selected group of people who could contribute to our objective: the guests were influential people in trade and industry and the public sector in the metropolitan area. People whose roots are in Central Finland or who have other links with the region were also invited in order to foster a regional ‘pine forest’ spirit. The guest list was generated in cooperation with regional actors.
The special event for Central Finland showcased the know-how and possibilities of the region wrapped in an entertaining package. Topical themes were used in the programme to describe what is going on in Central Finland and what our aims for the future are. The programme included the speeches of Honorary Mining Counsellor Ilpo Kokkila, SRV Group, and Managing Director of Keskimaa Cooperative Society (retail trade) Kuisma Niemelä. On behalf of the hosts, speeches were given by Chairwoman of the Managing Board of the Regional Council Helena Pihlajasaari and by Executive Director of the Regional Council Anita Mikkonen. A creative product from Central Finland – the show group Semmarit - appeared on stage during the evening (Figure 6).
Figure 6. The performance of Semmarit –group was a mix of music, humour, dance and drama! Photo: Jukka Patrikainen
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The programme of the evening provided examples of know-how in Central Finland with the video ’Power from Central Finland’. The video is an interview-based current affairs review, covering topical talking points of crucial importance to the region:
1) the forest and wood processing industry 2) bio-energy 3) region: town, rural area, service structure 4) road: logistics, traffic, trunk road network 5) change: entrepreneurship and business coping strategies 6) competence: education, the skills and creativity of young people 7) home area.
Several regional players participated in the planning of the Special Evening for Central Finland and in the production of its programme. These players include educational organizations, the seven regional development companies of Central Finland, municipalities, the Regional Council of Central Finland, Central Finland Chamber of Commerce, the Regional Organization of Enterprises in Central Finland, the employment and Economical Development Centre, Jyväskylä Fair Ltd, Spa Hotel Peurunka, Himos Ltd, Meteco Ltd, CP Kelco Ltd, Metso Paper Ltd, Valtra Ltd, Karoliinan Kahvimylly Ltd, Nokka-Companies Ltd, and the Air Force Academy.
The Central Finland Promotion Event was attended by about 120 eminent guests from the capital region. The number of influential people from Central Finland hosting the event was 63, so the guests totalled 183 people. Among the guests there were Traffic and Communications Minister Susanna Huovinen, President of the Central Organisation of Finnish Trade Unions SAK Lauri Ihalainen, Director General of the Ministry of Education Riitta Kaivosoja, and the representatives of, for example, the Prime Minister’s Office, the Ministry of Trade and Industry, and the Ministry of Labour.
The guests of the event also included representatives of companies; managing directors and other representatives of big Finnish trading corporations, newspapers, construction and forest industry enterprises. The participants from Central Finland included members of parliament, representatives of development companies, directors and rectors of educational institutions, representatives of companies, personnel of the Regional Council of Central Finland, and all the members of the Managing Board of the Regional Council of Central Finland.
3. Results and further actions
The Central Finland Promotion Event was very visible in the media, and the major regional newspaper Keskisuomalainen published a whole-page article about it on the day following the event. The participants from the capital region also received this newspaper issue at their workplace. The feedback on the Central Finland Promotion Event was very positive – for instance, one of the Central Finnish participants immediately mentioned some of its concrete benefits to regional development: support from influential people for the ongoing change in municipality structure; the new contacts which were established between the regional development network of forest industry and an international actor in the field.
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The participants were asked to provide more detailed feedback, also regarding their willingness to contribute to the development of Central Finland in the future through memberships in the boards of companies in Central Finland, their willingness to appear as speakers at seminars and educational events, and their general willingness to participate in similar events. Over 50 persons answered the feedback questionnaire and informed to be interested to take part in similar Central Finland event. As a result of the questionnaire there is at the moment network and list of twenty persons from different fields of business and public administration from capital region willing to appear as speakers at seminar and events concerning Central Finland. The event was considered so successful that the Regional Council of Central Finland is already planning its continuation. Based on the received feedback, the next event will possibly be organized in a year or two. It will be even more interactive, offering the participants various opportunities to create networks with the actors of their field.
One of the results of the Defris project is the definition of the current view on Central Finland shared by regional actors, presented at the Central Finland Promotion Event: the themes chosen, the target group, the guest list, the implementers of the event, background work, interviews, and the implementation of the video ”Power from Central Finland”. In particular, this activity has made a move towards a genuine, interactive contact network between Central Finland and the representatives of industrial life, enterprises and the public sector in the capital region, which can be utilized for the development of the region in the future.
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Project 2 Commercial service networks and future scenarios
Activity C Commercial services of Central Finland Commercial centres and the developmental potential of trade -report
1. Background
During the past decades the structure of retail sales has changed significantly. About twenty years ago it was still common to develop city centres and specialized boutiques as central competitive advantages of urban centres. However, during the 21st century, the aim has moved into developing major commercial centres and different retail parks outside the densely build urban fabric. The retail sales business network has become less dense and the amount of businesses has decreased, units have grown and selections have widened. The local business environment has more than ever before welcomed international actors and franchise chains to the retail sector. However, the decrease in the number of stores, and the growth in unit size have both slowed down, and the differences in the sales per unit of surface area of different store types have also diminished. This structural change has effects on the accessibility and availability of the commercial services. In most member countries of the EU, the establishment and locations of big units are controlled by land use regulations or legislation concerning the practice of business. Regulation aims to ensure the availability of services to different demographic groups. It also strives to develop existing urban and densely populated areas through investment in trade.
The placement of big units of the retail sales has an affect on the urban structure. If a commercial unit is built outside built area, it can be seen to disseminate the communal structure, to create more traffic and to attract purchase power from smaller businesses operating in more densely built-up area. On the other hand, the development can be seen to protect the densely built-up area from the considerable traffic flows. In a dispersed urban structure, the area houses several different separated residential areas, in which the population base is not sufficient to support the smallest daily goods store. Few of these areas together is however big enough to have a small or medium facility. If the unit placed in the area is a big unit, the expected effects will deteriorate the functioning circumstances of the smaller businesses and the commercial service network is thinned out. On the other hand, the less dense structure supports mobility by private cars and therefore fits to the situation of well-reachable although few commercial units with big variety and sizeable parking facilities. Thus, the need for services is related, densely populated urban areas the need for services is different than the sparsely populated areas of the countryside. Therefore, when pursuing the polycentric structure of the area, the goals should be proportioned to appropriate local needs in different counties and regions. The law of land use gave the local authorities new means to regulate commercial activities. The aim was to control the flight of businesses from the city centres and residential areas to the edges and outside of urban areas. The principle behind the location preferences aims to place big units in regional and municipal plans on areas planned for centre-like functions. In practice, these areas are the centres of cities and towns as well as some regional centres. The location planning has to take into consideration the interests and goals of many
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different actors. Basically this multi-sectoral approach in the planning process is left for public authority, more closely to municipalities and regional councils. 3
2. The main objective, process and methods of the study
The structural change of retail sales has effects on the accessibility and availability of the commercial services. The main objective is to study the network of commercial services in the region of Central Finland and to analyse of future scenarios and network’s service ability in changing situations of competition. The results of the “Commercial service network of Central Finland” survey describe the development of the structure of business and purchasing power separately for each area of Central Finland. This is a summary of the main results and conclusions of the study, the full report in Finnish can be found on the web pages of Central Finland.
The study of the commercial service network is based on the Business Register of Statistics Finland. Company information was obtained as a spatial database, which was partially complemented and specified. The company database enabled us to identify commercial centres in the municipalities and to compare these centres with the network of municipal centres. The population centres of municipalities were also examined in the background, so as to be able to identify the natural locations of the parts of the service network. The analysis of the present state of commercial services also included the updating of statistical data on the services available in Central Finland. The structure of the analysis partially complied with the Report on the Commercial Service Network of Central Finland 2000, which also provided us with information on earlier views on the commercial service network and the structure of the municipal centre network.
The analysis included two inquiries in the municipalities, whose representatives were asked to express their opinion on their own commercial service network and on the development targets of this network. Municipality-specific service surveys have been carried out in all the municipalities. The two rounds of inquiries have provided the views of almost all the municipalities on their commercial service networks and their developmental needs. The first inquiry focused on the location of large commercial units in the municipalities and on the concentrations of space- consuming commerce. The second inquiry provided an overall picture of the views and visions of the municipalities regarding their own commercial service network.
Based on the material described above, the network of commercial services was analysed and its parts described. In the analysis the centres of the commercial service network were classified according to character and significance for the service network. The character of the centres and the conditions for their development are evaluated according to operational scope, content, and the potential for development. The evaluation is based on the obtained statistical data and on the data of a purchasing power research. Spatial data is used to identify the position of the centres in the structure, and to assess their potential to operate in the network.
3 Koistinen Katri & Vesala Tiina (2006): “Structural change within grocery retailing in prominent Finnish urban areas 1995–2003”, National Consumer Research Centre; Koistinen Katri (2005): ”Päivittäistavarakaupan suuryksiköt, suunnittelu ja suhteellisuus”. Teoksessa: Vox consumptoris - Kuluttajan ääni. Kuluttajatutkimuskeskuksen vuosikirja 2005.
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A hierarchic service network of the commercial services available in Central Finland was created as a result of the analysis. The network can be used as a point of departure for the development of the centres and as a describer of the regional service network. The survey describe the development of the structure of business and purchasing power separately for each municipality of Central Finland. The survey demonstrates the basic trend of business in Central Finland: a relative decrease in daily consumer goods sales, a relative growth in special trade, and the concentration of large commercial units.
3. The main results and conclusions of the study
3.1 Focus in retail trade shifts towards special trade
There are approximately 1400 retail trade outlets (excluding car trade and service stations) in Central Finland. The share of special trade of the retail outlet stock has already risen to 73 %. In 2003 the total value of sales (including VAT) in retail trade was approximately 1,4 billion. The value of sales in daily consumer goods and department stores was approximately half, totalling 750 million. Structural change in retail trade has been visible in the proportional growth of special trade in the retail trade sector. In some municipalities the sales value of the retail market has declined, but the proportion of special trade has increased (Figure 7). In Central Finland the retail trade is strongly concentrated in Jyväskylä and the Rural Municipality of Jyväskylä - their share of the retail trade sales is more than half of the Central Finland’s total.
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Figure 7. Development of total retail sales in the municipalities of Central Finland 1999-2003, Ind. 100 = 1999 sales
Figure 8. The transfer of special trade purchasing power as relative propotion (%) of municipalities’s own purchasing power of Central Finland
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3.2 Transfer of purchasing power determines the supply of regional services
In relation to the development of retail services, the study investigates the development and transfer of purchasing power. Purchasing power, in this case, refers to the purchasing power potential of the residents of a municipality. The purchasing power data portrays the value of retail trade from a regional perspective. When local consumers direct their purchases to local stores, the service supply corresponds well with the needs of the consumers.
City of Jyväskylä receives, in addition to its own purchasing power, an additional 40 % of purchasing power from other municipalities (Figure 8). The transfer of purchasing power in special trade is estimated to be 89 million. Relatively the most special trade purchasing power is transferred to some small municipalities, when the share of transferred purchasing power is compared with the municipality’s own value of purchasing power. Joutsa reaches well its own level of purchasing power and obtain purchasing power from surrounding areas. Municipalities in the northern parts of Central Finland have their own distinct market areas which are supported by areas outside Central Finland. In addition, Keuruu, Jämsä and Kuhmoinen reach their own level of purchasing power in special trade.
Purchasing power forecasts can be used to gain insight of market development potential, e.g. retail trade’s investment needs in new premises. The need for new premises in special trade is the strongest within the city of Jyväskylä: the calculated need for space is 46 100 floor square metres, corresponding to 40% of the forecast need for space in the entire Region of Central Finland (Figure 9). The growth expectations are high also in the Rural Municipality of Jyväskylä, Laukaa, Jämsä and Muurame. In other municipalities, the need for business premises will vary from 1000 to 2000 floor square metres during the next fifteen years. In some of the municipalities the need for premises in special trade is expected to remain under 500 floor square metres.
Due to a structural change in consumption, the purchasing power in special trade is growing in all municipalities in Central Finland. The higher the growth in the population base is, the larger the implications of growth in purchasing power are.
The influence of holiday housing is relatively small in relation to the total value of the market but in some “holiday municipalities” the purchasing power of the holiday dwellers is as high as one third of the municipality’s retail trade market value. For instance, in Luhanka and Kuhmoinen the purchasing power of the holiday dwellers is higher than one third of the total retail market value of the municipality.
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Figure 9. The need for new premises in special trade municipalities of Central Finland by 2020
3.3 Development of special trade strengthens the appeal of commercial centers
By developing special trade and through differentiation, commercial centres can increase their commercial importance and strenghten their appeal. The infuence of the centres does not significally grow if the growth focus area is the current network of daily consumer goods. Fashion trade has had a critical role in the appeal of these cent-res. Retail trade sectors that have sustained their position even in the smallest centres, are home appliances, sports and hardware. Earlier studies have shown that with these store types the transfer of purchasing power to bigger centres is not so significant as it is, for instance, in the fashion trade. The centres’ opportunity to win a broader market area is based on differentiation.
3.4 Development prospects of special trade centres
As a result of the investigation, a hierarchical commercial service network was developed for the retail services of Central Finland. Based on the developmental prospects of special trade, the municipalities can be divided in six groups. The outcome explains the possible strategic actions the municipalities can take in developing their commercial centres.
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3.5 The report includes and describes also information on:
- Location, number and branch of the commercial centres by municipality - Location of commercial centres together with population clusters - Commercial outlet clusters based on outlet locations - Commercial centres by service supply - Sales by branch in relation to the commercial clusters of the region by municipality .
3.6 Surveys
The investigation included two surveys. Representatives of municipalities were asked about their views and opinions concerning the commercial network of the municipality and development plans. Development perceptions of the investigation were similar to the plans and goals of the municipalities, even there was some variation in the weightings of these plans. However, developing commercial services offer significant opportunities to the municipalities. Part of the towns and municipal centres have already been able to contribute in developing the centres, which has already strenghtened their position in the service network.
4. Comparison of the commercial services in Central Finland and Pohjois-Savo regions
A comparison study between Central Finland and the Pohjois-Savo region regarding commercial services was also carried out. Studies were carried out in Pohjois-Savo and Central Finland by the same specialist Mr Tuomas Santasalo. Studies are almost alike and for the comparisons the different treshold values have been changed. The both studies indicate the common background phenomena in retail trade: the growth of special trade sales and concentrating of special trade in bigger cities. Overall concentration of commercial services means even larger shopping centres and long distances to the shopping centres and need of private/public transportation, parking places etc. On the other hand small municipalities have proportionally much more retail in daily consumer goods. The small commercial centres can be attractive and obtain purchasing power by specialization and maintaining enough and the right kind of selection, i.e groceries, sports, electrical appliances, pharmacy, liquid stores and fashion.
Central Finland and Pohjois-Savo are the border line inside Finland and there is some differencies between south/west and east/north and E.g. population density, unemployment, industrialization (Figure 10).
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4.1 Basic figures of the regions
Central Finland (CF): • Population 268.000 (+) • Retail shops 1.300 • Sales 1.400 milj.€ (2003) • Special trade 73 % • Commercial centre Jyväskylä (46% of all shops) • 28 municipalities (1.1.2007) • Jyväskylä is the population centre • Over 20.000 inh. only in Äänekoski • 7 municipalities with under 2000 inh.
Pohjois-Savo (P-S): • Population 250.000 (-) • Retail shops 1.200 • Sales 1.400 milj.€ (2004) • Special trade ca. 70 % • Commercial centres Kuopio (37% of shops), Iisalmi, and Varkaus • 23 municipalities • Kuopio is the population centre • Over 20.000 inh. in Siilinjärvi, Iisalmi and Varkaus • 2 municipalities with under 2000 inh. Figure 10. Central Finland (in purple) and Pohjois-Savo (in blue)
4.2 Results of the comparison between the regions
The comparison study between Central Finland and Pohjois-Savo shows the commercial structure of these regions, for example, in the number of department stores and regional shopping centres as well as in the concentration of commercial services (Figure 11 and 12). Yet the population, number of shops, and sales in the two regions are about the same, some differences in the structure of retail trade outlets can be mentioned:
• A difference between the number of department stores and the regional shopping centres in Kuopio (14 department stores, sales 192 M€) and Jyväskylä (7, sales 213 M€); – reason 1: department stores merge into big shopping centres for daily consumption – reason 2: especially in Jyväskylä city centre there are many shopping centres of special trade built inside the existing buildings, i.e. plenty of small and medium- sized shops under one roof
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• In CF there are more municipalities with very little commercial services • In P-S there are only 2 municipalities with less than 10 shops, in CF there are 8. • In P-S there are 3 commercial centres, Kuopio, Iisalmi and Varkaus; in CF there is only one, Jyväskylä • Compared to Pohjois-Savo, Central Finland is clearly more concentrated • The study has counted purchasing power of holiday dwellers. In Pohjois-Savo it is about 2/3 of that of Central Finland, based on the number of holiday cottages owned by outsiders: Central Finland 33.000, Pohjois-Savo 30.000. • The purchasing power and the need of new premises more or less go hand in hand. The need of new premises has been calculated based on the population forecasts and estimation of the purchasing power. In CF the need of new premises is strongly concentrating in Jyväskylä – the trend of centralization will strengthen itself.
4.3 Remarks
The recent retail trade trends showing in the study have been mostly known and the most usefull parts of the study have been the new statistics. This information used in regional planning, e.g. where is the need for large shopping centres and for local planning, e.g. how can a small municipality help business keep the customers. The study is based on the data of each municipality. Some needed data does not exist – all the aspects of the commercial services cannot be studied this way. The biggest retail trade businesses make their own studies. This study aims to be a independent survey of the situation of the commercial service network; it is a long term planning tool which can be used together with the more biased studies made by the actors in business.
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Figure 11. Development categories of special trade in Central Finland and Pohjois-Savo
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Figure 12. Commercial service network in Central Finland and Pohjois-Savo
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Project 3 Studies of potential for business and traffic
Activity D The Development Plan of Hirvaskangas -area
1. Background
The activity aims to make the Hirvaskangas area within the development zone Jyväskylä - Äänekoski a regionally, provincially and nationally competitive commercial and residential area. The area has potential for development: it is situated in a suitable logistic location and is part of the Jyväskylä - Äänekoski Road 4 development zone (Figure 13). The differing plans of the surrounding municipalities regarding the area have presented a problem. The aim of the activity is to generate a holistic, long-term multi-sectoral development vision and to define the direction of development activities in the area. The Development Plan of Hirvaskangas area in Central Finland is a shared development vision of the parties involved in the area. It focuses on developing the business, transport and housing circumstances of the area and stresses the cooperation of the area’s municipalities. The development plan was realized by Plancenter Ltd and supervised by a steering group guided by the needs and expectations of the area’s interest groups. It sets to find development measures for development of transportation, business, land use, recreation, environment and culture aspects. Primarily the aim was to develop the circumstances for business development, employment creation and connections to other areas.
Jyväskylä
Figure 13. The Hirvaskangas –area
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Hirvaskangas is situated on the Highway 4 about 30 km north of Jyväskylä and 12 km south from the City of Äänekoski. Based on its location as a centre in the north-south and east-west road networks in Finland, it is already known as a pit stop. A side the character of an area of service stations, Hirvaskangas has also started to appeal to other aspects in people’s minds. Many people see the surroundings of bigger cities as appealing residential areas and the trend to out migrate and then commute the 30 kilometres back to the city also provides a development opportunity for the area. The recent positive development and ideas of business and housing developments showed a need for holistic development plan to unite different visions and agendas. The City of Äänekoski owns over 20 hectares of land east of Highway 4 and it started the land use planning process by stressing the need for business ventures. Also other plans were sketched for the needs of housing and municipal infrastructure. The Hirvaskangas area plays an important role in the economic development strategy of the Äänekoski Region and the creation of new jobs. Most of the Hirvaskangas area to the west of Highway 4 is the property of the Municipality of Uurainen. The plans for this area have drafted land use for partly residential, partly business activity. Also the plans to improve the Highway 4 between Jyväskylä and Äänekoski have increased the demand for residential and business premises in Hirvaskangas.
With the innovation- and competitiveness-led development in the society and in the economy, smaller cities and regions outside the obvious growth centres have started to articulate development needs more throughly through networking and cooperation. Visible results of this cooperation are sub regional cooperation networks, specialization, development of inter-city transport connections and different development zones.
2. Hirvaskangas area as a part of the development zone of Jyväskylä-Äänekoski
Hirvaskangas is a part of the Jämsä-Jyväskylä-Äänekoski development zone forming a node of transport and business in the crossing of the highways 4 and 69 and serving as a part of the link between regions and cities. Jyväskylä-Äänekoski zone is developed as a continuous employment and housing area and the Hirvaskangas development aims to diversify the current structure of population clustering at the ends of the development zone. Hirvaskangas residential area will serve as a link to the chain Jyväskylä-Palokka-Kirri-Tikkakoski-Vehniä-Hirvaskangas-Äänekoski. The development of continuous residential and commercial zone is a key to connected city-regions and the forming of development zones.
A natural form for the development zone is therefore along the lines of the Highway 4. Highway 4 is developed as a part of the network of base roads in Finland and also the roads in the Hirvaskangas region are being upgraded to meet the needs of the heavy passing traffic. Currently over 9000 vehicles pass the Hirvaskangas area a day, of which heavy traffic is 11 %. The area is a major service point of the passing traffic.
Therefore, the Hirvaskangas development outplays the goal of multi-centred regional structure. In the forming of development zones an integral part is to pick out the core areas of bigger importance and to form a chain of these nodes throughout the growth corridors. Like said before, the area at hand is at a crossing of major highways in a central location in the regional structure. It offers available land and has somewhat of an infrastructure to build on. At the time of the planning,
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it was also already known that an ABC-service station was to be built and therefore had planted a seed to the area’s development.
In 2005, the area of Hirvaskangas had 711 inhabitants and 141 jobs. The aim for the area in 2020 is 2100 inhabitants and 750 jobs. With the bettered traffic conditions, the strengths of the Hirvaskangas area comprise of available land for construction as well as the reputation as a safe and a pleasant environment. The area is also nationally known and offers a realistic residential opportunity for commuters currently living in Jyväskylä.
However, the projects that are needed to further develop the area require sizeable operations, as the road developments and public transportation systems need to be tended in order to increase the growth potential and appeal of the area. The area has low internal purchasing power and the in migrating families deepen the need for public services. The area has no endogenous character of distinct operational area and possible municipal competition might hamper the common development measures.
3. Development goals and the process
With the several different initial development projects and ventures, the area was in the need of a creation of a holistic development plan. The development process was implemented between fall 2005 and spring 2006. The plan has included several interest groups: The City of Äänekoski, the Municipality of Uurainen, the City of Suolahti, Finnra’s Central Finland Region, the Regional Council of Central Finland, the Central Finland Regional Environment Centre, Ääneseudun Kehitys Ltd, local inhabitants, land owners, entrepreneurs and customers. The development plan was drafted by Plancenter Ltd. The aim was to make Hirvaskangas area regionally, provincially and nationally competitive commercial and residential area taking into consideration also the environmental and economical needs.
The starting point of the development process was to gather the notions of the area’s current situation, operational environment and the local actors’ views on the development of the Hirvaskangas area. The points were developed based on the foreseen housing development, the development of the Jyväskylä-Äänekoski development zone and the aspired business activity. As described above, the development planning was headed by a steering group, but also two detailed seminars were organized in September 2005 and February 2006 to share the ideas more generally among the interest groups. Before the final publishing, the Development Plan was presented to the municipal councils of Äänekoski and Uurainen.
Development visions
The visions and operational models for the Hirvaskangas area circled around the themes of “countryside-like” and “dense-flat” for the basis of the physical environment and “cluster of production activity”, “cluster of tourism and transport services” and “commercial cluster” for the business sector. These visions were meant to outline the development expectations and advance the forming of the proper development vision for the area. The vision was outlined as follows:
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“Hirvaskangas – better servicing. Hirvaskangas offers versatile countryside-like housing combined to urban services. Hirvaskangas is a major service cluster for mobile people in the Jyväskylä-Äänekoski development zone.“
The area was defined to offer countryside-like housing with good services, efficient transport connections and diverse building sites. The area is aimed for families with small children, couples about to retire and small business entrepreneurs. One of the challenges for attractive housing area was the development of a crossing over highway 4 for pedestrians. Also the opportunity for gradual development of the area was deemed important.
Business activities of the area in the service sector are developed for the needs of the mobile people passing by the area with some specialized stores in a Retail Park and services for businesses. Especially the service stations and other pit stop-like services are in the heart of the area’s business orientation. Also a liquor store and pharmacy services are known to attract passers-by.
On the production side the activity in business is aimed for small businesses in wood-, metal-, plastic- and energy fields with the orientation of subcontracting. Planning is also made thinking of the ICT and other new technology businesses related to the University of Jyväskylä and Jyväskylä Science Park activities with a need for space outside city centres. In addition to this, services of maintenance, book keeping, ICT and security services are aimed for local as well as outside businesses alike. There is also a need for shared space for meetings and representational occasions.
4. Activity suggestions of the Development Plan
The development plan suggested a combination of the following procedures to be used in the long- term development of the Hirvaskangas area.
Individual projects and cooperation groups
The active development of the Hirvaskangas area requires several different procedures. The bases for the construction are the private business led housing and business activity projects. Municipalities participate in planning and realization of municipal infrastructure. Already known individual projects are e.g. new ABC service station and the factory project of PV Putkitus. The municipal cooperation group will concentrate on municipal services, planning and land use policy strategies. The Hirvaskangas development group will gather private sector actors of businesses and third sector parties from village committees in addition to municipalities.
Regional marketing
Regional marketing of the Hirvaskangas area will depend on a drafted development scheme or image of the locations of different functions in the area. The area will be then promoted as an all- inclusive Hirvaskangas-brand, based on an image and a marketing plan. Also a business service package and marketing material for housing will be produced. For the long-term planning of the area, the development plan suggests organizing a planning competition to find creative solutions
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and to raise awareness of the development of the area. Also the use of signs by the highway 4 to inform people of the process is recommended.
Energy theme
The development plan sees potential in Hirvaskangas area to offer facilities to the needs of energy studies and research. This would connect the know-how of the University of Jyväskylä and Jyväskylä Science Park to the area and upgrade its status. For example the use of renewable energy like bio energy in heating of the housing and offices and a bio energy distribution substation could bring attention and reputation of ecological ways to operate to the area and enhance its image.
Development projects for functions, the following projects were suggested:
• “Entrepreneur House” could provide facilities and services for meetings, exhibitions, programme services and marketing of e.g. industrial products and research results. • Services for professional drivers could include truck wash services and maintenance as well as “road health” services like doctors and dentists serving also the local inhabitants. Also attention in planning to provide room to park trucks and bigger vehicles is advised. • The transportation circumstances should be developed by providing public transport opportunities and quality opportunities for pedestrian traffic. • A community centre (“community pit”) would be developed in the old sand pit nearby to host parties and events. A children’s playground should be set up next to the service cluster to attract families and add attractive quality of the area.
5. Future development and the value of Hirvaskangas development plan
The development plan was finished in April 2006 and the plans were made public in a final seminar aimed for local actors and parties of interest at the end of April. The designs were featured in the local newspapers. The responsibility of the future development according to the presented suggestions has been left with the appropriate municipal actors. At least the cooperation groups and marketing initiatives have already started their work. The area has started to develop and is expected to meet the set goal of coherent development in horizontal cooperation with local actors.
Hirvaskangas area is a part of the local development zone from Road 9 to the Highway 4 serving as a node of activity in the corridor. With the development plans and future projects, the development process carries also other valuable lessons. In the work of visioning, outlining and drafting the development needs and expectations, the local actors, municipalities and other parties showed outstanding cooperation skill in uniting forces and capabilities. The Hirvaskangas development is therefore a proof of this vertical cooperation and enables the use of credible talk of the uniform development zones across the country and possibly cross borders.
The birth of discussion culture between parties and the understanding of networking potential around common goals in different regions is therefore a useful tool in developing the competition potential and attractiveness of areas.
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Project 3 Studies of potential for business
Activity E Road 9 Development Zone Jämsä-Jyväskylä-Hankasalmi
Figure 14. Road 9 Development Zone Jämsä-Jyväskylä- Hankasalmi.
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1. Background and local basis for the project
Road 9 development zone area is located in southern Central Finland and is a part of the main road network in Finland (Figure 14). The area is a chain of towns around the centre city of Jyväskylä. It has about 170 000 people in total and forms an active commuting area (Figure 15).
Figure 15. Structure of urban area and it’s change in 1990-2005 (year 1990 in beige and year 2005 in red)
Source: Information system for monitoring land use planning (YKR) /Finnish Environment Institute (SYKE) 90,05 Pohjakartta:© Central Finland District Survey Office, permission 005/KESU/07 ©Affecto Finland Oy, permission L7028/07
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Figure 16. Network of main roads and railways in Finland (sketch). Source: Ministry of Transport and Communications Finland, Publications 27/2006
Road 9 is seen as nationally important link in transportation (Figure 16). Central Finland is located in an actively used part of the main roads. For example the logistic centre of the retail chain Lidl is located in the intersection of trunk roads. Also the logistic centre for milk products of Valio can be found along road 9. Therefore the development of trunk roads and the road 9 is also of national interest and part of many regional development agendas and strategies.
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The railway in between Jyväskylä and Tampere has been under rehabilitation since 1988. The section belongs to the planned fast train network. Renovation aims to renew the asphalt pavement as well as to add to the capacity and security of the network. The load conditions on the railway section is over 10 million gross tons annually, made up principally by the paper factories in Jämsänjokilaakso. Some of the sections are planned for double line rail structure adding to the capacity and speed of the railway traffic.
The traffic flow in the area is considerable and it has been estimated to grow to even bigger proportions by the year 2030. The section of the road between Jämsä and Jyväskylä is problematic in terms of transportation and security. Road 9 close to Tampere end has been under construction to support fluent traffic and to improve security. In the regional land use plan, also the parts of Jämsä –Muurame and Kanavuori-Hanksalmi have been marked for major renovation.
2. Development process
The development in the zone is based on cooperation, know-how, tourism and high quality living standards. All in all, the development zone process follows the trend to form multi-centred chains of functional entities of housing and employment as it is aimed in the national agendas as well. The project aims to enhance the competitiveness of the defined development zone as a part of the road 9 area. It aims to find development measures for development of transportation, business, land use, recreation, environment and culture aspects. Primarily the aim is to improve the transport conditions, to develop the circumstances for business development, employment creation and connections to other areas. The final development plan combines the development interests and present the area’s objectives on a regional level.
Before starting the actual development project, the current situation in traffic and connections in the designated development zones were identified. On-going and planned development activities and projects in the zone were identified to form a comprehensive view of the situation. In the spring 2006, a more detailed research plan for the development work was sketched and a steering group consisting of the municipalities of the development zone was formed. Following tasks were listed:
a) to study of local (commuting) traffic and draft a preliminary land use plan b) to identify out present and expected work place /commuting areas c) to study possibilities for business development from logistical accessibility point of view d) to produce promotion material of the zone
At first, the development of the area was approached through the following themes: population, housing, employment, facilities and locations for businesses, purchase power, business life, commuting, traffic system and regional planning.
During the second stage of the report on the regional development corridor of Road 9, interviews (about 20) were conducted with the representatives of regional business life, municipalities and actors in charge of land use, as suggested by the steering group. Interviews have provided material to analyse strengths, weaknesses, opportunities and threats of the area. Based on interviews, the targets for development identified as essential for the region have been listed. The responses of the
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municipalities to the presented development targets and have been also collected and evaluated. The following step in the development process was a summary of the general development targets of this project and of the measures and development targets mentioned in the interviews regarding the Road 9 development corridor.
3. Profiling and clusters
Profiling is a prerequisite for the successful development of the entire development corridor. The profiling of the region strengthens the bonds between the representatives of economic life and promotes inter-municipal cooperation, as well as cooperation between municipalities and companies. The aim is thus to create a commonly agreed and accepted profile. The profile - in other words: the elements which the entire development corridor has in common – consists of tourism industry, paper industry, metal industry, nano- and sheet metal technology, and logistic operations.
Based on the interviews, a theme crossing all municipalities in the developing corridor is tourism. It has therefore been proposed as the profile for the whole development zone. Also some other fields of industries are common to many areas. However, aside the similarities, specialization and clusters of competitive activities in specific fields are also seen as important features for the whole development zone.
The focus of operations on certain sectors enhances the competitive ability of the entire region. The objective is not to define a direct division of tasks nor municipal-level emphasis, but to create clusters focusing on certain activities. These clusters are based on the utilization and promotion of the natural strengths and existing industrial structure of the municipalities. In the conducted interviews, the 7 municipalities within the range of the development corridor of Road 9 evaluated the development measures in detail. Each municipality sorted out the most important development targets related to recreational areas, cultural services, improvement of environment, business activity, and housing production. Based on the interviews, regional actors characterize the cluster along the development corridor as follows (allocation of new business activity) (Figure 17):
• Hankasalmi: tourism, bioenergy, heavy machinery trade, wood product industry • City of Jyväskylä: tourism, nanotechnology, forest and metal industry, wellness services • Jyväskylä Municipality: tourism, logistics, aviation industry, trade • Jämsä: tourism; paper, aviation and composite industry • Korpilahti: tourism along with quality living, plastic industry • Laukaa: tourism, logistics industry, welfare services, chemical industry, metal industry • Muurame: tourism, business services, metal industry
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NEW DEVELOPMENT TARGETS ALONG THE ROAD 9 DEVELOPMENT ZONE
Green circle= Tourism Pink circle = Commerce Yellow circle = Traffic and logistics Orange circle = Premises, office Grey circle = Industry
Figure 17. Development targets listed and classified
4. Cooperation: vision – strategy - land use planning - financing
The starting point for the development measures is a commonly agreed definition of strategic intent (e.g. a Masterplan for tourism in the entire region) and commitment to it. The development corridor cannot be formed without cooperation between municipalities and commonly agreed development principles in land use planning. The activities must have a commonly agreed objective regarding the development of community structure and housing production. Even now, regional land use planning could be enhanced by supplementing the present, so-called ‘network city workgroup’ with the representatives of land use of all the municipalities.
In addition to cooperation between the municipalities, cooperation is needed between enterprises, development companies, investors (e.g. foreign tourism businesses), and educational institutions, which already operate in the region or will be established in or relocated to the region. Practical collaboration should preferably start as forum work (large-scale policies, the definition of strategic intent). Individual branches / concrete initiatives should be focused on after this. Development work must concentrate on only a limited number of new development projects (e.g. 5 -10) at a time (during a certain period of time). Implementation takes place through ’business parks’, based on
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the needs of industry and commerce – the municipalities provide the outward circumstances through spatial planning.
Business-oriented thinking is essential in the development work, which can also include the development of opportunities for cooperation between enterprises (e.g. online stores, common brochures).
The significance of a strong actor is emphasized in the implementation of individual projects (an active individual and/or company). This kind of development work could be coordinated by regional development companies, for example, Jyväskylä Regional Development Company Jykes Ltd and Jämsek Ltd. The financiers must be committed to the activities as early as possible and foreign financiers (e.g. international tourism businesses) must be engaged right from the beginning.
Joint marketing is an opportunity for municipalities. The region can be developed through visible marketing: a joint regional marketing plan and joint marketing materials (e.g. an advertisement on the regional development corridor in the Kauppalehti magazine and brochures to be distributed to key persons).
5. The development of Road 9 and the railway
In general, the intersections of Road 9 must be improved, parallel roads constructed, as well as overtaking lanes and new road surfaces built. The aim is for the whole section of the Road 9 of the development corridor to be covered by the definition trunk road. Further targets for development mentioned in the interviews are:
• Land use planning according to the trunk road standard (concentration of operations, larger business area entities, etc.) • The long-term development of local train traffic (not to be prevented by decisions on land use): ”rail bus” for e.g. the following station/stop network: Jämsä, Himos, Korpilahti, Muurame, Jyväskylä, Vaajakoski, Lievestuore, Niemisjärvi, and Hankasalmi • The development of rail transport opportunities to meet the needs of industry • Double-tracked railroads • The development of local public traffic • A well-functioning traffic network is a necessity for the creation of a development corridor
The shared development objectives in the region, as highlighted in the interviews, presently include, for example:
• Influencing Road Administration, State Railways and bus companies (making Road 9 a trunk road; analysis of the possibilities to develop local train and bus traffic) • A holistic plan on the utilization of Lake Päijänne for the development of living and tourism • Creating an optimally attractive tourism resort at both ends of the development corridor • Plans to develop environment in order to offer a high-quality environment with appeal
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6. SWOT analysis on the economic life of the development corridor of Road 9 between Jämsä- Jyväskylä-Hankasalmi:
Strengths • Inviting region for living and business activity (population gain through migration, the interest of companies, positive image) • Versatility of business life (collaboration partners, subcontractors, etc.) • The competitive edge of industry, the growth of the industrial cluster • A versatile offering of tourism services, the appeal of Himos • Good traffic network (incl. airport), nature, waterways • The appeal of Jyväskylä (reflects on the entire region)
Weaknesses • Insufficiency of cooperation between municipalities, lack of a shared view on development • Potential insufficiency of experts in the future (if nothing is done) • Lack of highly appealing destinations for tourism, leisure and business • Scattered settlement structure (provision of services) • Waiting for development pulses (lack of own initiative) • Insufficient cooperation between tourism entrepreneurs • Smoothness of traffic through Jyväskylä, single-tracked railroad, capacity of the road network
Opportunities • Development of Road 9 (as a route for tourism and logistic services) • Development of train traffic (passenger and goods traffic, double-tracked railroads) • Enough experts for various fields (at least so far) • Increase in domestic and foreign tourism • Increase in physical activity in leisure time (local people) • The willingness to change in traditional industry • The marketability of the development corridor region • Increase in the cooperation of tourism entrepreneurs
Threats • Emphasis on traditional industry without willingness to change • Emphasis of traffic on Road 4 (commercial and logistic services) • Insufficiency of the development measures of Road 9 and/or their postponement • Excessive concentration of operations in Jyväskylä • Age structure (apart from the Jyväskylä region) • Fuel price in the long run (acceptability of long way to work) • Decline in basic infrastructure and services (if not paid enough attention to) • Building in sparsely populated areas, if it complicates the zoning of business and industrial villages and their traffic connections
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7. Utilization and dissemination of the project results
The process of development work continues and will be completed in the summer 2007. The results include a final report, promotion material and a seminar on the results. The promotion material (Figure 18) will be used by the municipalities, for business promotion and regional planning of the development zone. The report will assist Regional Council’s work on transport and traffic issues and provide up-to-date information of the field also for other planning activities.
The members of the traffic task force can use the report in their own planning. The report enables a better comparison of development activity with other regions in Finland and abroad and thus provides a possibility for learning and innovations.
YSITIEN KEHITYSKÄYTÄVÄ
Jämsä – Korpilahti – Muurame – Jyväskylä - Jyväskylän maalaiskunta – Laukaa - Hankasalmi
HIMOS Voimakkaasti kehittyvä ympärivuotinen matkailukeskus. Kehittämishankkeita ovat mm. monitoimihalli, hyvinvointi- kylpylä, uusi golfkenttä, rinteiden laajentaminen, maastohiihtokeskus, pistäytymissatama ja kauppakeskus
Lisätietoja Jämsek Oy / nimi (ja/tai Himoksen tj.)
Figure 18. Example of the promotion material of the Road 9 development zone (Himos ski resort)
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Dissemination
The progress and results of the strategic projects of Work Package 3 were reported to the Managing Board of the Regional Council of Central Finland at six-month intervals, as well as to the managers of Central Finland’s thirty municipalities in the meeting of municipal managers. The municipalities, companies and other partners involved in the projects were sent information on the progress of the projects via a mailing list. Three open seminars and three planning seminars were organized during the implementation of Work Package 3. The launching, results and seminars of the Work Package 3 projects achieved visibility in local media, including newspapers and local TV. During the implementation of Work Package 3, a total of eight newspaper articles were published on the projects. The final reports of the Work Package 3 projects are available on the website of the Regional Council of Central Finland. The results of the Defris project in Central Finland will be reported and disseminated during the implementation of Work Package 4 (in 2007).
Based on reciprocity, the Defris project has placed the results of the project at the disposal of the partner organizations. For its part, the Defris project has thus contributed to the dissemination of the results of analyses and sub-projects in the other organizations. At the same time, it has made an effort to integrate the project’s background objectives and policies regarding regional development into the policies of the regional organizations. It is also noteworthy that the project has not only aimed at influencing and spreading its results and the produced information, but it has tried to implement participatory policies crossing organizational boundaries in the region and, consequently, also to have an impact on processes and attitudes.
Already during the project, the municipalities of Central Finland have shown interest both in the results and theoretical background of the Defris project and in the practical implementation of the development projects. It is obvious that the concept ’development zone’ and the related theoretical frame of reference offer a viable tool for regional development.
Dissemination activities by Central Finland’s projects during Work Package 3:
Regionalization – study and strategy - publication to communicate the results of the study 31.3.2006
Commercial network of Central Finland - public information conference 30.3.2006 for representatives of the press, municipalities and local businesses (Figure 19) - local newspaper coverage in Keskisuomalainen Newspaper article 31.3.2006: “There is still plenty of space for special retail stores in Central Finland” Editorial 2.4.2006: “Jyväskylä and Central Finland has attraction power” - local television coverage
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Development plan of Hirvaskangas - a steering group made of key actors in the area - opening seminar for ideas and objectives for the development of the area 22.9.2005 - seminar on alternative development suggestions 15.2.2006 - final seminar for interests groups 27.4.2006 - publication of the Hirvaskangas development plan 4.4.2006 - Newspaper article in Keskisuomalainen 28.4.2006: “A guideline is made up for the development of Hirvaskangas area” - Newspaper article in Sisä-Suomen lehti 29.4.2006: “Major expectations for Hirvaskangas” - Newspaper article in Pikkukaupunkilainen 3.5.2006: “Hirvaskangas as a third centre”
Road 9 Development zone - Newspaper article in Keskisuomalainen 27.6.2006: “Seven municipalities on behalf of road 9” - steering group meetings - a steering group to guide development measures - planned final seminar in April 2007
Central Finland Promotion Event - planning meetings - Central Finland Promotion Event 18.1.2007 in Helsinki - ”Power from Central Finland ” video - post-promotional brochure of the key points of value in Central Finland - Newspaper article in Keskisuomalainen 19.1.2007: “Feeling in the ceiling in Astoria –hall” - Feedback questionary
Publications and reports produced during Work Package 3:
Publications • ”Keski-Suomen kaupallinen palveluverkko 2005, kaupan keskukset ja kehitysmahdollisuudet”, Regional Council of Central Finland publications B 152, 2006, summary in English ”The Commercial Service Network of Central Finland ” • ”Näkökulmia Keski-Suomen kilpailukykyyn”, Regional Council of Central Finland publications B, 2006, summary in English ”Aspects on Central Finland’s competitiveness” • ”Defris WP3 Common report”, Regional Council of Central Finland publications B159, 2007
Reports • ”Hirvaskankaan kehittämissuunnitelma”, summary in English ”The development plan of Hirvaskangas area” • ”9-tien kehityskäytävä Jämsä-Jyväskylä-Hankasalmi”, summary in English ”Road 9 development zone Jämsä-Jyväskylä-Hankasalmi” • ”Central Finland Promotion Event”
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Transnationality and conclusions
The regional strategic projects implemented in the Work Package 3 have established new networks, produced new information for regional development, and strengthened the vitality of the regions. In addition, the five partners involved in the third part of the Defris project have compared and shared their experiences of the projects, the key issues of regional development, and the cooperation networks generated in the project.
The activities implemented within the Defris project in Central Finland include background analyses, five strategic projects, and active international cooperation and exchange of experiences with the other partners. In practice the cooperation has involved project presentations and discussions at meetings and seminars, the processing of joint inquiries, and the exchange of small- scale research papers. There has been four group meetings with an emphasis on group discussions and exchange of experiences on practices and methods in the development field. In addition, transnational exchange has been conducted also in four transnational seminars. Some of the results of the conducted studies have been published in the Space magazine in Poland. Defris activities have therefore been commonly presented to spread the results and conclusions of different projects.
Within the international cooperation of the Defris project, interest has not focused so much on the detailed contents and final results of the individual projects as on backgrounds, objectives, policies, research and analysis methods, and each partner’s regional development tools and topical themes. During this stage of the project, different thematizations, categorizations and listings of implemented projects have been especially important. In a way, the projects have been actively processed through different tools in order to allow their comparison. This has been an important stage in the project.
From the viewpoint of international cooperation, it has been challenging to determine the level of observation for the projects which is interesting also from the perspective of the other Defris partners. In the daily work environment, the questions of regional development are the subject of rather limited regional interest. The benchmarking of our country against the other Defris regions has broadened our perspectives. It has been particularly interesting to notice the similarity of the themes and objectives of regional development in different countries. On the other hand, as our administrative and organizational structures differ from each other, the policies and tools of regional development also vary. This has interestingly broadened the view of regional development in different countries. The projects implemented by our partners have been a fruitful point of comparison when considering the corner stones and new opportunities for development in our own region.
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The experts who have been involved in the project have also had the opportunity to develop their own competencies and make comparisons between the countries regarding the activities of their trade. The implementers of the project have also developed their professional perspective towards considering the themes of regional development in relation to a European perspective. Such international projects as the Defris will clearly be an increasingly important part of the activities of regional organizations in the future. It is challenging, in particular, for medium-sized regions to have the courage to view the daily challenges of regional development from a wider perspective and compare them to overall development in Europe.
The additional value generated by the implementation of an EU project can be seen in how
1) the project relates to the basic operation of the implementing organization in terms of themes and topicality 2) the activities, analyses and studies implemented in the project are part of the daily expert work of the participating individuals 3) it is possible to integrate the project with broader objectives of regional development and to make it serve some ”bigger” regional policy goal at the national level 4) the project manages to act both as an intermediary crossing conventional organizational structures and as an intermediary between new public-private relationships.
Based on the results and experiences of the Defris project in Central Finland, the success factors and action plan of medium-sized regions can be briefly characterized for example as follows:
- The implementation of participatory projects emphasizing civic action, side by side with the ”official machinery”, and open seminar work based on discussion - The implementation of projects which aim at developing the region’s identity and an insight into the region’s competitive ability jointly by several organizations - The implementation of strategic regional development projects through the cooperation of several actors, crossing organizational boundaries and focusing on the jointly defined appeal factors of the region - The creation of concrete target indicators and the measures for achieving them, as well as a long-term follow-up system - The implementation of case-type grass-roots level development projects, e.g. the development projects of a residential area and a nascent commercial centre - The analysis of regional public-private partnerships and benchmarking against another region, measures in order to develop these - Twin city projects and/or a joint project between two rather large growth centres (traffic, investment schemes, creating competitive advantage) - Active and open analysis, explication and sharing of the concepts related to regional development within a European frame of reference.
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Appendix 1: Target development zones
Zone 1: Jämsä-Jyväskylä-Äänekoski
• a development zone within the region
• the zone follows the main road 9 from Jämsä to Jyväskylä and main road 4 from Jyväskylä to Äänekoski. Length of the zone is about 110 km, Jämsä-Jyväskylä 58 km and Jyväskylä-Äänekoski 44 km
• biggest population centres are the cities of Jyväskylä (83 582 inhabitants 2004), Jämsä (15 282) and Äänekoski (13 717)
• in general population is increasing in municipalities around Jyväskylä and decreasing elsewhere
• railway section Jyväskylä-Jämsä is for passenger and freight traffic, travel time by train is about 30 minutes. Jyväskylä-Äänekoski section is only for freight traffic with 7 daily trains
5.4.2005
Zone 2: Tampere-Jyväskylä(-Kuopio)
• interregional development zone
• biggest population centres Jyväskylä (83 582 inhabitants), Jämsä (15 282) and Tampere (202 932)
• Jyväskylä-Tampere distance by car 149 km, travel time 1 hour 50 min, highway 9
• railway for passenger and freight traffic, electrified, appr. travel time 1 hour 30 minutes, 22 freight trains and 22 passenger trains running daily, about 1 million passengers yearly
• no direct flights from Jyväskylä to Tampere or Kuopio Kuopio Jyväskylä • places of business (2003) in Jyväskylä 3 872 and in Tampere 10 406 Tampere
• from Central Finland 1307 worked in Pirkanmaa region and from Pirkanmaa 1121 worked in Central Finland (2002)
5.4.2005
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Zone 3: Central Finland– Helsinki metropolitan area
• interregional development zone
• population (2004) of Uusimaa region 1 346 958 and region of Central Finland 267 182 (2004)
• population (2004) of the city of Helsinki 559 046 and the city of Jyväskylä 83 582
• Jyväskylä-Helsinki distance by car 270 km, average travel time 3 hours 30 minutes, highway 4
• railway for passenger and freight traffic, electrified, average travel time 3 hours 30 minutes, 22 passenger trains running daily Jyväskylä • Jyväskylä airport located about 25 km north of Jyväskylä, 9 daily flights to Helsinki, travel time 40-50 min
• from Uusimaa region 707 worked in Central Finland in 2002 and Helsinki from Central Finland 2206 worked in Uusimaa region
5.4.2005
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Appendix 2: Project Information formulas (3)
STRATEGIC PROJECTS / WORK PACKAGE 3 Project information formula
Name of Defris partner Regional Council of Central Finland
Name of the project Project “Regionalization” – study and strategy Contact person(s), contact information Satu Heikkinen / Hannu Korhonen Regional Council of Central Finland [email protected] Implementation time period 6/2005 – 12/2006 (MS2-MS5)
Main objective, end result The project aims to raise awareness of the possibilities and strengths of the region and to improve the connections to the capital region of Helsinki. The objective is to form a “sales strategy” and an action plan for utilizing the development potential of the Helsinki metropolitan area in Central Finland, as well as to promote Central Finland as an attractive location to settle and do business in. Implementation in the development zone: Central Finland – Helsinki Metropolitan Area.
End result: an assessment of Central Finland’s competitiveness, a promotional event of Central Finland in the metropolitan area (in Helsinki), and promotional material on Central Finland.
The project consists of two activities: a) The study Aspects on Developing Central Finland’s Competitiveness b) The Central Finland Promotion Event
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Activities (per MS if possible) Activity A The aim of the activity is to evaluate Central Finland’s capacity to meet the needs of the metropolitan area. Information is gathered in the metropolitan area and in Central Finland through interviews and the comparison of chosen regional indicators.
MS2 Phase 1: Assessment of the needs of the metropolitan area. The indicators of information were chosen, data was collected and studied. A total of 12 interviews with enterprises, public sector officials and NGOs operating in the metropolitan area were carried out. Phase 2: Assessment of Central Finland’s capacity to meet the needs. A total of 20 interviews with actors in Central Finland were carried out and analysed. MS3-4 Phase 3: Formulation of strategy, action plan and concrete development targets. Suggestions of immediate, short-term and long-term procedures. The report Aspects on Developing Central Finland’s Competitiveness was completed (in Finnish, including an English summary).
Activity B This activity includes the marketing of Central Finland to the actors deciding on regionalization, and to large companies. The Central Finland Promotion Event offers a networking arena for personal contacts between the metropolitan area and Central Finland. It is an opportunity to “sell” Central Finland in the metropolitan area.
MS4 During MS4 the representatives of different interest groups joined to plan the promotion event. Discussions and two planning meetings for selected key actors (development companies, municipalities, etc.) were organized. Activities during MS4: the script of the Central Finland Promotion Event, the selection of performers and speakers, the compiling of the list of people invited (representatives of the public and private sector who have connections to Central Finland), designing and sending the invitation. MS5 Interviews and research work related to the video promoting Central Finland, the implementation of the video in October - December 2006. The video is an interview-based current affairs review, covering topical talking points of crucial importance to the region.
The Regional Council of Central Finland and the Defris project organized the Central Finland Promotion Event in Helsinki on the 18th of January 2007. The programme of the evening provided examples of know-how in Central Finland with, for example, the video ’Power from Central Finland’. The programme also included key note speeches and a
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special creative product from Central Finland - the show group Semmarit - appeared on stage during the evening. The promotion of Central Finland in the metropolitan area with the video and the promotion event was designed to enhance the region’s image and future prospects. WP3 results and indicators Activity A • What are identified and established • The survey provides information on the basic starting networks in the project points for the regionalization of public services and the • What are the key questions analyzed in outsourcing activities of companies. the project for interregional and regional • The survey lists proposals for regional strategy work - in development other words, smaller projects enhancing competitive • In what way the project shows how a edge - in whose implementation regional actors have region can develop in co-operation with their own roles. other regions in interregional development zones. Activity B • The activity created wide interest among the municipal actors and e.g. development companies of the region. Various parties were involved in the planning of the event and the presented material. • The event promoted the core competencies of Central Finland and the competitive advantage of the region compared to other regions. The planning process strengthened cooperation between municipalities as unified and harmonious representatives of Central Finland. • The Central Finland Promotion Event in Helsinki was an opportunity for networking between Central Finland and the metropolitan area in order to build trust and ground for potential new ventures. • In particular, this subproject has made a move towards a genuine, interactive contact network between Central Finland and the representatives of industrial life, enterprises and the public sector in the capital region, which can be utilized for the development of the region in the future. Implementation network (national) Activity A The assessments involve metropolitan area state administration, decision-makers, major companies, developers and regional MPs, educational institutions, industries, major companies, etc. The strategy phase includes a plan for networking at the regional, decision- making and company level.
Activity B Several regional players participated in the planning of the Central Finland Promotion Event and in the production of its programme. These players include educational organizations, the seven regional development companies of Central Finland, municipalities, the Regional Council of Central Finland, Central Finland Chamber of Commerce, the
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Regional Organization of Enterprises in Central Finland, the Employment and Economic Development Centre, Jyväskylä Fair Ltd, Spa Hotel Peurunka, Himos Ltd, Meteco Ltd, CP Kelco Oy, Metso Paper Oy, Valtra Ltd, Karoliinan Kahvimylly Ltd, Nokka-Companies Ltd, and the Air Force Academy. Co-operation with Defris partners Co-operation: project presentations and discussions during Defris meetings and seminars. Project has connections to projects: • Östsam: “Conditions in the development zone” and ”Threats and opportunities with integration” Utilization and dissemination of Activity A experiences and results The survey pulls together and highlights the views of regional actors on the competitive ability and potential of the region and can be utilized by actors and decision- makers in Central Finland. The report is a strategic tool and a starting point for other pilot projects within the WP3 project item of Central Finland.
Activity B The Central Finland Promotion Event was very visible in the media, and the major regional newspaper Keskisuomalainen published a whole-page article about it on the day following the event. The participants from the capital region also received this newspaper issue at their workplace. The promotion video of Central Finland can be used to promote Central Finland in different regional occasions. The event is a starting point for a tradition of special events aiming to promote Central Finland in the capital region. Additional information and material Activity A report ”Aspects on Developing Central Finland’s Competitiveness”; in Finnish, including a summary in English Activity B report in Finnish and in English The reports are available on the websites of the Defris project at www.defris.net and the Regional Council of Central Finland at www.keskisuomi.fi/Defris
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STRATEGIC PROJECTS / WORK PACKAGE 3 Project information formula
COMMERCIAL CONCENTRATIONS IN CENTRAL FINLAND
Main Center, Jyväskylä
Regional Center Sub-Center
Commercial concentration
Name of Defris partner Regional Council of Central Finland
Name of the project Project Commercial service networks and future scenarios Contact person(s), contact information Satu Heikkinen/Jarmo Koskinen Regional Council of Central Finland [email protected] Implementation time period 4/2005-12/2006 (MS2-MS5)
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Main objective, end result During the past decades, the structure of retail sales has changed significantly. This structural change has effects on the accessibility and availability of commercial services. The main objective is to study the network of commercial services in the region of Central Finland.
The end results include a survey of commercial services in Central Finland, an analysis of the future scenarios and service ability of the network in changing competitive situations, and a comparison study against the Pohjois- Savo region.
Implementation in the entire region of Central Finland; the results have an impact especially within two development zones: Jämsä - Jyväskylä - Äänekoski (regional) and Tampere - Jyväskylä - Kuopio (interregional).
The project includes the following activity: C) The survey “Commercial Service Network of Central Finland”
A comparison study between Central Finland and the Pohjois-Savo region regarding commercial services was also carried out.
The survey results of activity C “Commercial Service Network of Central Finland” describe the development of the structure of business and purchasing power separately for each municipality of Central Finland. The survey demonstrates the basic trend of business in Central Finland: a relative decrease in daily consumer goods sales, a relative growth in special trade, and the concentration of large commercial units. The comparison study between Central Finland and Pohjois-Savo shows some differences in the commercial structure of these regions, for example, in the number of department stores and regional shopping centres as well as in the concentration of commercial services. Activities (per MS if possible) Activity C MS2-3 The base information was collected in April - May 2005, regarding e.g. the location and concentration of stores, the number of stores in different fields of commerce and population concentrations. The data was gathered through official information sources, statistics, surveys, and interviews. For more detailed information, surveys were performed with the representatives of municipalities in November 2005. MS4 Information on purchasing power (based on population development) was compared to the current service network. The development targets of
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municipalities were examined. Information on purchasing power in different fields of commerce and a prognosis for its development in 2010/2020 were produced. The effects of different commercial concentrations on the whole service network were examined, for example, the location decisions of single large-scale commercial units, commercial concentrations and major road-side service centres. The project was completed and the report “Commercial Service Network of Central Finland 2005” (160 copies, in Finnish) was distributed and promoted to all municipalities and other parties involved. A press conference and information meeting were held on the 30th of March 2006. A summary of the report was written in English.
MS5 A report on the similarities and differences between Pohjois-Savo and Central Finland regarding commercial services was produced. WP3 results and indicators Networks • What are identified and established Regional and national representatives of commerce, networks in the project municipal planners and land use planners. • What are the key questions analyzed in the project for interregional and regional Key questions development What is the structure of commercial services in Central • In what way the project shows how a Finland at the moment and what is the significance of region can develop in co-operation with commercial centres. What is the prognosis for purchasing other regions in interregional power available for retail consumption in the future - in development zones. 15 years? What are the plans of the municipalities regarding commercial centres?
Cooperation The survey provides information for municipality-specific development plans in order to support the balanced development of commercial services in the region in cooperation with other municipalities. Implementation network (national) 30 municipalities (municipal planners) of Central Finland
Co-operation with Defris partners • Pohjois-Savo: “Commercial service network of Pohjois- Savo” - Comparison study of the results • Kujawsko-Pomorskie: “Importance of Wloclawek as a service centre” and “Determinants of services and business development” - Information was exchanged and discussions deepened in terms of consumer behaviour and trends in retail trade and their impact on urban structure. Two smaller reports were combined based on the discussions of the Defris meetings: “Consumer Behaviour, Urban Structure and Retail Trade Trends in Finland” and “Public Authority Regulating Business in
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Finland”. • Östsam: “ Service and communication”
Utilization and dissemination of The information produced will, for its part, be used in experiences and results examining urban-rural relationships within the region. The data can be used to promote industrial and commercial activity within the entire region of Central Finland. The results have been publicized in all the municipalities and provided to the other parties involved as well as to the media. The results will be utilized in the regional land use plan. Additional information and material Activity C report “Commercial service network of Central Finland 2005, Commercial centres and the developmental potential of trade” in Finnish, a summary in English
Comparison study in English and Finnish (summaries)
The reports are available on the websites of Defris at www.defris.net and the Regional Council of Central Finland at www.keskisuomi.fi/Defris
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STRATEGIC PROJECTS / WORK PACKAGE 3 Project information formula
Äänekoski Hirvaskangas functional area
Hankasalmi
JYVÄSKYLÄ
Jämsä
Name of Defris partner Regional Council of Central Finland
Name of the project Project Studies of potential for business and transport Contact person(s), contact information Martti Ahokas / Satu Heikkinen Regional Council of Central Finland [email protected] Implementation time period 1/2005- 12/2006 (MS3-MS5)
Main objective, end result The primary aim is to improve the conditions of transport and create favorable conditions for business development, as well as to promote employment and connections to
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other areas within chosen development zones. The end result of the project includes two development plans: The Road 9 development zone and the Hirvaskangas functional area. The final development plans will combine the development interests and present the objectives of the area at the regional level. Implementation in two development zones: (Tampere) - Jämsä - Jyväskylä - Hankasalmi - Kuopio and (Jämsä) - Jyväskylä - Äänekoski.
The project consists of two activities: E) The Development Plan of the Hirvaskangas Area F) The Study on Road 9 Development Zone Jämsä - Jyväskylä - Hankasalmi
Activity E aims to make the Hirvaskangas area within the development zone Jyväskylä - Äänekoski a regionally, provincially and nationally competitive commercial and residential area. The Hirvaskangas area, 30 kilometres north of Jyväskylä, is developing into an attractive residential and business area. The area has potential for development: it is situated in a suitable logistic location and is part of the Jyväskylä - Äänekoski Road 4 development zone. The differing plans of the surrounding municipalities regarding the area have presented a problem. The aim of the activity is to generate a holistic, long-term multi-sectoral development vision and to define the direction of development activities in the area.
The objective of activity F is to enhance the competitiveness of the defined development zone Jämsä - Jyväskylä - Hankasalmi as part of the Road 9 area. It sets to find development measures for transportation, business, land use, recreation, and environmental aspects. The aim is to form a holistic view of the region’s development activities in the field of transport, connections and business development within this development zone. The aim is also to take part in the common development zone task force of the Regional Council of Central Finland and the Regional Council of Pohjois-Savo during the project. Activities (per MS if possible) Activity E MS2 The first official meeting of the work group was organized and a participation plan was prepared. The first open seminar was arranged on the 22nd of September 2005. The representatives of state, regional and municipal authorities, together with entrepreneurs and inhabitants of the area were present. The seminar was open to public and the media (announcements and news in regional and local newspapers). MS3 An analysis was drafted concerning the environment and landscape, land use planning, commerce and services, traffic prognoses, previous plans, related projects, and the
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area’s role in the development zone. The interviews with the key representatives took place in September- November 2005. Alternative models of action were created (alternatives for commercial concepts, land use, traffic arrangements, etc.) and a second seminar was organized. A draft of the development plan. MS4 The third work group meeting took place on the 11the of January 2006 and the second seminar on the 25th of January 2006. In the seminar alternative models of action in the area were presented and discussed. The final seminar was held on the 31st of March 2006, and the development plan was introduced to the representatives of municipal councils. The project was completed and the final report in Finnish finished in April 2006. The press conference on the results took place on the 27th of April 2006.
Activity F MS2-3 The identification of the current situation in terms of traffic and connections in the designated development zone. The mapping of on-going and planned development activities and projects in the zone. Participation in the work group formed for the interregional development zone Kuopio - Jyväskylä. MS4 Creating a research plan for the development work and the formation of a steering group consisting of the municipalities in the development zone. The first and second steering committee meeting and the selection of a consultant for the development work. MS5 Steering committee meetings and an initial situation report: the present and expected workplace/commuting areas were mapped and the possibilities for business development from the perspective of logistic accessibility were listed. An interim report including interviews with the representatives of municipal planners and business life was finished. In these interviews the seven municipalities within the development zone of Road 9 evaluated the development measures in detail. Each municipality listed the most important development targets related to recreational areas, cultural services, environmental improvement, business activity, and housing production.
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WP3 results and indicators Activity E The networks established in the project: • What are identified and established During the process of the development plan for networks in the project Hirvaskangas, the parties involved established forums and channels of intensified dialogue and cooperation. The • What are the key questions analyzed in project has strengthened the development zone within the the project for interregional and regional region as it has created an intensified node of housing and development business. The business cluster further increases the attractiveness of the transport corridor, providing • In what way the project shows how a considerable services for truckers and travellers. region can develop in co-operation with Key questions analysed: other regions in interregional Different operational models have been considered and a development zones. common vision has been formed during the project. The area has gained a more profound identity and therefore appeals to more businesses and residents. Cooperation: The work has continued as the municipal actors, private businesses and third sector actors have worked in unison to reach sustainable long-term solutions for the Hirvaskangas area. A marketing campaign was launched after the project, and new investments to the area follow the agreed strategy.
Activity F Established networks: During the planning and designing process, the municipalities within the Road 9 development zone formed a common forum for cooperation and zone-like project planning. Key questions: What are the possibilities for the development of business within the Road 9 development zone? How should the zone be developed in a balanced way to enhance the competitiveness of the region? Cooperation: The common development zone task force (the Regional Councils of Central Finland and Pohjois-Savo) has improved interregional communication in the development zone Jyväskylä - Kuopio between regional authorities, municipalities and enterprises. The task force gives decision-makers valuable information on the potential and possibilities of commuting by rail in the area and on the spatial and economic impacts of the system.
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Implementation network (national) Activity E The City of Äänekoski, the Municipality of Uurainen, the City of Suolahti, the Regional Council of Central Finland, the Central Finland Regional Environment Centre, Ääneseudun Kehitys Ltd., local inhabitants, land owners and entrepreneurs.
Activity F Development zone work group: the municipalities of Hankasalmi, Laukaa, Jyväskylä, Jyväskylä Rural Municipality, Muurame, Jämsä; the Regional Council of Central Finland, Jyväskylä Regional Development Company Jykes Ltd, Plancenter Consultants. The common development zone task force of two regional councils (Central Finland and Pohjois-Savo), other regional authorities of the regions, municipalities in the development zone. Co-operation with Defris partners E.g. follow-up of the process, study visits, exchange of experiences and reports. The activity has connection to: • Pohjois-Savo: ”Main Road 9” • Östsam: ”Conditions in the development corridor” and “Alternative rail transport solutions” • Kujawsko-Pomorskie: “Transport system in BTMA” Utilization and dissemination of Activity E experiences and results The final seminar took place on the 31st of March 2006, and the development plan was introduced to the representatives of municipal councils. A press conference for all the parties involved and for the media was held on the 27th of April 2006. The final report in Finnish and a summary in English are available on the website of the Regional Council of Central Finland.
Activity F The situation report will assist the work of the Regional Council on transport and traffic issues and provide up-to- date information on the field also for other planning activities.
The members of the traffic task force can use the report in planning. The report facilitates the comparison of development activity between regions in Finland and internationally, thus contributing to learning and innovations. A public information conference will be organized during MS6 where the final report will be distributed. Additional information and material Activity E “The Development Plan of Hirvaskangas”: A report in Finnish, including a summary in English
Activity F “Road 9 development zone Jämsä - Jyväskylä - Hankasalmi” : A report in Finnish, including a summary in
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English.
The reports are available on the websites of the Defris project at www.defris.net and the Regional Council of Central Finland at www.keskisuomi.fi/Defris
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SUSTAINABLE REGIONAL DEVELOPMENT STRATEGIES AND NETWORKS
Defris – DEVELOPMENT OF FIRST DIVISION REGIONS A project part-financed by the European Union (European Regional Development Fund) within the BSR INTERREG III B Programme