Dialog Conference on Smart Specialisation in Eastern Norway

1. Päijät-Hämeen liitto The RegionalCouncil of Päijät-Häme • Dialog conference on Smart Specialisation in Eastern Norway Marko Mälly RegionalCouncil of Päijät-Häme/Finland 12 January 2016 www.paijat-hame.fi #phliitto

2. Päijät-Häme – Lahti Region

3. RegionalCouncils in Finland 18 regions in mainland Finland and the ÅlandIslands. Finland's Regional Councils are statutory joint municipal authorities operating according to the principles of local self-government. The delegates to the decision-making bodies of the Regional Councils are political appointees of the member municipalities. Planning for a region includes a strategic regional plan (Act on regional development (7/2014)), a regional land use plan (Land Use and Building Act (132/1999)) and a regional development programme and its implementation plan. A strategic regional plan is the basis for regional development. All the other plans and programmes regarding regional development, including implementing EU Structural Fund Programmes, are derived from the three documents listed above.

4. RegionalCouncils in Finland Regional innovation strategy work combined to overall strategy work in the region e.g. regional development plan and its implementation; strategy work on business and economy etc. Law based co-operation scheme with other two South Finnish regions of Helsinki-Uusimaa and Häme. Co-operation on long-term strategic planning in selected thematic fields. Forthcomingreform of regionalself-governance – new regionsfrom 2018? The number of new empoweredregionswillstay the same.

5. Ourpastwork on research and innovation Recessionuntil the mid of the 1990´s: Iron wallfalls > SovietUnion market (lucrative clearing business) for the companiesin Päijät-Häme disappearsover ”onenight”. In the late 1990´s the 1st National Centres of Expertise Programme was dedicated to regional development innovations (for example the Design-Quality-Environment model - methodology for integrated business development). Regional innovation platform in 2001 (design-innovation-environment). Innovation strategies2004–2009, 2009-2014 and 2014-2020. The 2nd national Centres of Expertise Programme in Lahti was dedicated to Cleantech (2007-2014), and managed by the Lahti Science and Business Park and also hosted the national Housing Organisation.

6. SmartSpecializationContext of Päijät-Häme Network-like university model gains necessary expertise without fragmenting the university sector. The network of universities ensures tailored university expertise that focuses specifically on the needs of the region. The current high education infrastructure is built on Lahti University of Applied Sciences and the Lahti University Consortium, combining three universities and operating as a network and forms the basis of the region’s high level expertise. Practice-based innovations: high innovativeness stemmsfrom the interaction between companies and users, based on market-led thinking, company-driven challenges which trigger innovation. Päijät-Häme region belongs to the leaders in innovation as a part of Southern Finland/ Etelä-Suomiregion (R&D) if input in the Päijät-Häme region is scarce (appr. 250 euros/resident, in contrast to 3300 euros/resident in the Oulu region)(Regional Innovation Scoreboard 2014)

7. JARI PARKKONEN, EXECUTIVE DIRECTOR • RIITTA NIEMINEN-SUNDELL, REGIONAL DEVELOPMENT DIRECTOR • JUHA HERTSI, REGIONAL DEVELOPMENT MANAGER • MARKO MÄLLY, SENIOR ADVISOR • ESSI ALALUUKAS, DIRECTOR, NEW VENTURES • DEVELOPMENT MANAGERS , CLEANTECH, DESIGN, START UPS, ECT. BUSINESSES POLICY LAHTI SCIENCE & BUSINESS PARK REGIONAL COUNCIL OF PÄIJÄT-HÄME • KARI SARTAMO, INNOVATION AND INTERNATIONALISATION UNIT • SINIKKA KAURANEN, STRUCTURAL FUNDS UNIT • TUOMO UOTILA, PROFESSOR, INDUSTRIAL MANAGEMEN • VESA HARMAAKORPI, PROFESSOR, INNOVATION SYSTEMS • Institutional framework of implementation (triple-helix) LUT-LAHTI Lappeenranta University of Technology ELY-KESKUS, HÄME REGION LAHTI SCHOOL OF APPLIED SCIENCES, INNOVATION CENTRE LAHTI UNIVERSITY CONSORTIUM • SENJA JOUTTIMÄKI, THE SECRETARY-GENERAL • Operatedby Helsinki University • ILKKA VÄÄNÄNEN, RESEARCH DIRECTOR • RDI, RESEARCH MANAGERS KNOWLEDGE

8. Critical friendsneeded • Regionalstakeholdersworkmostlythroughtriple-helixapproach. • At planning and researchlevelstherearemanyinteractionsbetweenpolicymakers and education as well as betweenpolicymakers and businesses. • At implementationlevel the flowbetweenknowledge and business needs to bestrengthened. Manyregionsface the samechallenge as Päijät-Häme. Policy Flow - explorative knowledge needs strengthening Flow - New innovations information Knowledge Businesses Knowledge as externality to businesses: flow needs strengthening

9. SmartSpecializationContext of Päijät-Häme EU structural funds financing dropped for about 50% in the region 2014-2020, the main sources of R&D funding in Päijät-Häme region are the national R&D funding programmes and TEKES (Finnish Funding Agency for Innovation) instruments The main business sectors in Päijät-Häme region are: energy industry, grain, furniture, wood construction, environmental technology and ICT. The Päijät-Häme region’s top areas of expertise are:cleantech, design and practice based innovation and the strongly expanding tourism and wellbeing sectors. The number of businesses compared to the population is quite high in the region, 12 915 SMEs in 2012. Companies are smaller than average, the turnover of the local companies is slight, the proportion of growing companies is small and despite of some big international companies, local SMEs lack international connections.

11. Currentwork on RIS3 A systematic smart specialisation effort, as of early 2000s, was consolidated with the regional innovation strategy (RIS) 2009-2015. > introduced a selected and limited number of areas through which the interactions between businesses, universities, research institutes, development organisations and users can be reinforced. > to raise the overall innovation environment in Päijät-Häme(and beyond) to a new level, in such a way that the strong-points of the region become stronger, evolve into innovative results and results growth and increase of productive. Logic of RIS3 was further explored through one 2007-2013 INTERREG IV C project (FRESH), and the rationale and path towards selection of industries was introduced then. It was that Päijät-Häme is a region in transition towards higher added value and diversification towards upscale specialisation. www.freshproject.eu

13. Päijät-Häme Strategiescombined RegionalDevelopmentProgramme 2014 – 2017 SmartSpecialization (to beupdated) SpearHeads of the RegionalStrategy (2040) Environment Cleantech Bioeconomy Globalbusinesses and knowledge • Expertise for developingmarkets • Potentials on the markets of St. Petersburg and Russia • Business from Wellness • Sustainableuse of naturalresources • Social inclusion Innovations Citizens and wellbeing Wellbeing Design Sustainableenvironment

14. ECO INNOVATION COMPONENT The eco-innovation component (EIC) serves to support one sectorial specification S3 in Päijät-Häme. The sectorial specification is sustainable construction. The importance of sustainable construction in economic and sustainability terms has been promoted by the FRESH project. For example, the low-energy (0 level) self-heating home complex MERA is acknowledged one of European best practices in Interreg IV C. All this effort contributed to the decision of further focusing development actions on sustainable construction and hybrid renewable energy systems! Sustainable construction is part of the cleantech cluster in Päijät-Häme. It is also aligned with the national cleantechpriorities, which include sustainable wooden and other types of construction and promote zero (0) energy solutions in homes and public buildings. http://phame.emedia.fi/easydata/customers/paijathame/files/ph_liitto/tehtavat/kansainvalisyys/eco-innovation_component_for_paijat-hame.pdf

15. Main bottlenecks Quadruple helix needs to be made to “work”; eco system approach to become more real and demand – based, beyond regional and national borders, towards industry-lead networks. The RIS3 “clusters”: strategy and actions needed to promote smart specialisation business activities and related variety options around the prioritisedindustries. Improve design for eco innovation tools and applications. Project pipeline to speed up RIS3 implementation benefits needs to be formulated. Populating the regional network bringing together RIS3 industries, related advanced research, and start-ups. Aligning funding instruments. EU structural funds will be restricted in the new period. There is a need to exploit national funding instruments and link them to RIS3 strategically.

16. Main bottlenecks RIS3 related variety options cluster development practical approaches. There is a need to benchmark our innovation tools, coming from all the lengthy innovation management experience in Päijät-Häme, adjust and update to better facilitate the RIS3 implementation. At the same time, we need to invest to improve these tools to suit better RIS3 needs. There is a need to map and then address accordingly knowledge, research, methodology and market access gaps & needs. There is a need to invest in transnational research in the prioritized industries and ecosystem – based methodological tools.

17. Lessonslearnt …

18. Lessonslearnt …

19. Päijät-Hämeen liitto The RegionalCouncil of Päijät-Häme Thankyou for yourattention! E-mail: marko.mally@paijat-hame.fi www.paijat-hame.fi #phliitto