Joensuu Region's Success Story: From Depression to Strong Growth

1. How we made it - the Joensuu Region’s success story Regions for economic change: Regional Policy responses to demographic challenges Brussels - 25 and 26 January 2007 Keijo Mutanen, Managing Director Jarmo Kauppinen, Programme Director Joensuu Regional Development Company Ltd. www.josek.fi

3. From depression to strong growth in Joensuu Region • Unemployment rate jumped from 7 to 23 % during period 1990 - 1995 • Main reasons: • disruption of Soviet Union => loss of exports • world depression • failed national economical policy • Turn around of direction by: • long term investments and development activities in selected business sectors • development of education and innovation system in close cooperation with industry • and other sectors • establishment of regional development company and systematic networking • strategy, regional business development programme with challenging targets • utilization of EU structural funds, National Centre of Expertise Programmes and • Regional Centre Programme www.josek.fi

4. Long term investments and development activities in • selected business sectors • Selection on key business sectors; plastic and metal products, forestry and wood • products, information and communication technology, tourism • Programme agreements between main financing and development organizations • (Objective 6 Programme 1995 - 1999) • investments in infrastructure (e.g. Joensuu Science Park / Imtec and Puugia, • University of Applied Sciences / D’ART design centre and Cadimef studios) • Growth programmes for different business sectors (Objective 1 Programme • 2000 - 2006) • Carelian MetPlast Programme for SMEs in metal and plastic product sectors • (about 130 companies) • WoodHow Programme for SMEs in wood product sector (about 25 companies) • same type of programmes also for tourism and ICT sectors www.josek.fi

5. Development of education and innovation system in close cooperation • with industry and other sectors • Multiple educational opportunities; e.g. University of Joensuu, University of • Applied Sciences, vocational education including adult education and training • Joensuu Science Park, universities and high tech companies operate in same • premisies and form a collaborative innovation environment, incl. Incubator services • Direction of vocational and engineering education according to needs of industry • and other business • Investments in specific education sectors, e.g. design (D’ART), advanced welding • and tooling, product development and engineering (in cooperation with • Lappeenranta University of Technology) • Investments and development of new high tech sectors, e.g. modern optics • (InFotonics Centre) and material research (SMARC = The Special Material • Research Centre) www.josek.fi

6. Establishment of regional development company JOSEK Ltd and systematic networking strategy, regional business development programme with challenging targets Operational responsibility Owner municipalities (8) Neighbouring regions Real estate companies of municipalities Joensuu Science Park Ltd. • Joensuu Regional • Development Company Ltd • regional business policy and development • business councelling • marketing of the region Business associations, Companies Educational organisations North Karelia Jobs & Society, Incubator services Karelia Expert Tourist Service Ltd National partners e.g. SEKES, TEKES Financial organizations International partners e.g. Eurada www.josek.fi

7. Utilization of EU structural funds, National Centre of Expertise Programmes and Regional Centre Programme • EU structural fund programmes have played key role in financing of the • investments in the innovation system and the implementation of the • development and growth programmes • National Centre of Expertise Programmes until the end of 2006 in two fields: • 1) Wood Technology and Forestry and 2) Plastics and Tooling • the task was to use internationally competitive knowledge and skills as a resource • for business activities, creation of new jobs and for regional development • National Regional Centre Programme has complemented other programmes • and has been used as a tool for management of the regional business • development programme • Systematic and complementary utlization of all programmes in cooperation • with different development organizations www.josek.fi

9. www.josek.fi

10. Conclusions - summary of the results • Number of population is increasing • Number of industrial jobs is growing • International companies are making investments (e.g. John Deere’s • investment in Joensuu was awarded the best investment in Europe • by 2004 World Investment Conference in LaBaule) • Region’s investment level/capita is the 2. highest in Finland • Region’s business image is the 3. best in Finland • What next? • Attract foreign labour and new international investments • Utilization of new EU structural fund period 2007 - 2013 (e.g. new • growth programmes in different sectors) • Utilization of emerging new markets, especially Russia • => Joensuu region - the most attractive centre of growth in Finland! www.josek.fi