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Sustainability in the Arctic Regions: What, How and Why? BUSINESS INDEX NORTH Issue #04—March 2020

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Issue #04—March 2020 – A periodic report with insight to business activity and opportunities in the Arctic Sustainability in the Arctic regions: what, how and why? BUSINESS INDEX NORTH Issue #04—March 2020 Contributing authors and organizations Acknowledgements Contacts We gratefully acknowledge the basic funding for the BIN project Chair of the BIN Project Board Alexandra Middleton Andrey Mineev Ossi Pesämaa provided by the Norwegian Ministry of Foreign Affairs (through the Erlend Bullvåg, PhD, Dean at Nord University Business School Assistant Professor, Researcher, High North Center at Associate Professor, Arctic 2030 program) and Nordland County Council (through the DA [email protected] University of Oulu Nord University Business School Luleå University of Technology Nordland program). +47 906 49 591 [email protected] [email protected] [email protected] We would like to thank our strategic Expert Partners for con- tributing to the strategic development of the BIN project: The Arctic BIN project coordinator Anders Hersinger Elena Dybtsyna Peter Dahlin Economic Council, the Norwegian Shipowners’ Association, MGIMO Andrey Mineev, PhD Professor, Associate Professor, Assistant Professor, School of Business, University, Akvaplan-niva, Maritime Forum Nord, the Center for High Researcher at the High North Center for Business, Luleå University of Technology Nord University Business School Society and Engineering, North Logistics. Nord University Business School [email protected] [email protected] Mälardalen University [email protected] [email protected] +47 957 26 128 Andrey Bryksenkov Erlend Bullvåg Deputy Director of representative office Dean, Sissel Ovesen « Russian State Hydrometeorological Nord University Business School Senior Advisor University» in Moscow [email protected] Bodø Science Park [email protected] [email protected] Jaakko Simonen Professor, University of Oulu [email protected] Project partners Consortium partners responsible for R&D and technical work related to the production of BIN report: BUSINESS SCHOOL Expert partners contributing to strategic development of the BIN project: Basic funding provided by: Cover Image Night hiking in Tromsø for Sustainable development goals, August 2019. Photo: Ole-Martin Sandness/ 2 Scream Media for Norad 3 BUSINESS INDEX NORTH Issue #04—March 2020 N BIN area What is BIN? BARENTS SEA FINNMARK TROMS NENETS Business Index North (BIN) is a project that contributes to sustain- ods and provide factual and comparable indicators across a set of MURMANSK YAMALO-NENETS able development and value creation in the Arctic. The overall goal topics and geographic regions. The findings of the BIN reports are OBLAST LAPLAND is to set up a recurring, knowledge-based, systematic information presented through maps and figures which are easy for most users NORDLAND NORRBOTTEN tool for stakeholders such as businesses, academics, governments to understand. and regional authorities, as well as media, in the Arctic states. The NORTH KOMI OSTROBOTHNIA coordinator of the BIN project is the High North Center for Business Previous BIN reports VÄSTERBOTTEN and Governance at Nord University Business School (Norway). The Our previous reports emphasized the value of the people who live in KAINUU ARKHANGELSK KARELIA project is implemented through the international network of partners or deal with the north, their livelihoods and the importance of quality OBLAST SWEDEN from Norway, Sweden, Finland, and Russia. Nordland County Council education and job creation. At the same time, successful business FINLAND (Norway) and the Norwegian Ministry of Foreign Affairs provide basic activities and economic development are another vital component NORWAY funding for the project. of value creation. Thus, value creation involves activities beneficial to Helsinki Oslo This is the fourth “Business Index North” periodic analytical report both individuals and legal entities. In this regard, Business Index North St Petersburg that focuses on sustainable development in northern regions of seeks to trace both societal and economic developments in the Arctic Stockholm RUSSIA Norway (Finnmark fylkeskommune, Troms fylkeskommune, Nordland and offers a detailed considered view of how these evolve in combina- NORTH SEA fylkes kommune), Sweden (Norrbottens län and Västerbottens län), tion. Sometimes we observed success stories associated with positive BALTIC SEA Finland (Lapin maakunta, Pohjois-Pohjanmaan maakunta, Kainuun trends for both, sometimes we encountered worrying contradictions. Copenhagen Moscow maakunta) and North-West Russia (Murmansk oblast’, Arkhangelsk So far we have produced three annual reports and two special issues. oblast’, Republic of Karelia, Nenets Autonomous District, Komi Republic The first BIN annual report issued in 2017 focused on three large and Yamalo-Nenets Autonomous District). These regions as statistic topics: People, Business and Production. The second annual report units correspond to the NUTS3 classification of territorial units intro- (2018), in addition to continuing topics of the first report, included duced by the European Union. Hereafter in our report, we use the chapters on Connectivity and Maritime Transportation in the Arctic. English names of these regions without the word “region” from each The third annual report (2019) focused on value creation in the north corresponding language (e.g. Norwegian “fylkeskommune”, Finnish through the development of businesses, society and people, as well as “maakunta”, Swedish ”län”, and Russian “Oblast”, District, Republic infrastructural conditions such as energy, connectivity and knowledge are abandoned). infrastructure. Maritime traffic and transportation infrastructure along WESTERN EUROPE EASTERN EUROPE These regions are referred to collectively as the “BIN area” (fig- the Northern sea route became a topic of the first special issue (2019). Density of ure below). Our definition of the BIN area correlates with the EU con- There we have analysed drivers for development of the Northern Sea Population population in thousands per sq. km cept of a macro-region1. The BIN area runs across national borders Route and produced maps showing regional on land infrastructure in has common characteristics and challenges. The BIN area can be the Arctic Europe which is and can be connected to the Northern Sea viewed as a strategic layer across countries for future development Route. The second special issue (published at the beginning of 2020) Norway 5328.21 17.51 focused on innovative companies in the European Arctic. Based on and cooperation. Nordland 243.39 6.75 a detailed study of 63 innovative companies and organizations we The BIN reports provide a comprehensive analysis of sustainable Troms 167.20 6.72 present implicit and explicit conditions for successful business devel- business development in the European Arctic including the northern Finnmark 75.87 1.66 territories of Norway, Finland, Sweden, and Russia. The reports are opment in the Arctic. based on statistical data from multiple sources, using scientific meth- Sweden 10230.19 25.12 Västerbotten 270.15 4.94 Norrbotten 250.50 2.58 Issue #01 Issue #03—June 2019 —March 2017 – A periodic report with insight to business activity and opportunities in the Arctic A periodic report with insight to business Finland 5517.92 18.16 activity and opportunities in the Arctic – A periodic report with insight to business activity and opportunities in the Arctic People Business Development conditions Kainuu 73.06 3.62 Provides analysis on Gives an overview of business Focuses on key issues of demographic and human activity and perspective Connectivity, R&D in business capital trends in the region of value creation and Electricity production Lapland 178.52 1.93 Production Focuses on renewable energy and growth in the BIN area North Ostrobothnia 412.16 11.19 Business Highlights the BIN area’s innovations, business activities and cooperation Russia 146880.42 8.95 People Business Connectivity Gives an overview of the Maps growth potential of Focuses on the roles of maritime human dimension in the North, the BIN area and highlights transport, digital infrastructure and including demography, education, selected innovative clusters, broadband availability in increasing quality of life and work. companies and brands. connectivity of the BIN area. Issue #02 — April 2018 People Gives overview of population structure, human capital and employment in the BIN area Arkhangelsk Oblast (excl. NAOs) 1111.03 2.74 Komi Republic 840.87 2.05 Murmansk Oblast 753.56 5.67 Nenets Autonomous Okrug 44.00 0.26 1 An area including a territory from a number of different Member States or regions associated with one or more common features and challenges Republic of Karelia 622.48 4.49 4 (EU definition). Yamalo-Nenets Autonomous Okrug 538.55 0.85 5 BUSINESS INDEX NORTH Issue #04—March 2020 Executive summary We measured and analysed the level of sustainable development in 14 Society have regionally specific strategies and plans for climate change mitiga- bility shall be done in conjunction to human development, sustainable regions in the Arctic Europe including Norway, Sweden, Finland, and tion that take into consideration all pillars of sustainable development. consumption and environmental sustainability. Russia. The United Nations Agenda 2030 of sustainable development Special attention needs to be paid to safety on the roads and to deep goals was used as a measurement framework. We used 52 indica- underlying
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