Transcript North Sweden - Europaforum

Northern Sweden
Development redefined
Europaforum Northern Sweden and the County administrations in Northern Sweden in collaboration with
EuroFutures AB, June 2003
Northern Sweden is unique
The four northernmost counties in Sweden (Västernorrland,
Jämtland, Norrbotten and Västerbotten ) included in the
NUTS II regions Mellersta Norrland and Övre Norrland are
a uniquely sparsely populated area. This area, Northern
Sweden, covers approximately 55 per cent of Sweden’s
area, but has only 10 per cent of Sweden’s population.
Northern Sweden has a mere 883,000 inhabitants but covers
an area greater than Greece and Portugal combined. This
sparseness and the peripheral location in Europe bring
certain competitive disadvantages and difficulties.
• To individuals, this sparseness means limited availability
of work and educational opportunities, and of public and
commercial services.
• To companies, the sparseness means that the home market
is greatly limited and that contacts and exchanges with
larger markets and areas with greater population density in
other parts of Europe entail high costs.
• To public bodies, the sparseness means that the costs of
providing services are high in practically every area,
reckoned per inhabitant : for schools, elderly care, public
transport etc.
Neither do the sparse areas benefit from relative nearness to
any large towns. Northern Sweden has no large towns. In
Northern Sweden, the communities are generally small and
dispersed. Southern Sweden, seemingly sparsely populated
from a European perspective, when compared with
Northern Sweden seems an urbanised, densely-populated
area.
Northern Sweden is going through a restructuring process, in which new
opportunities are being identified and developed in order to turn the
negative trend. Northern Sweden therefore needs continued support for its
restructuring work. The unique conditions prevailing in Northern Sweden
should be noted in the European Cohesion Policy. We expand on this and
argue in its favour in four sections as follows:
A. The appearance of prosperity
B. Extreme sparseness
C. Consequences of sparseness to companies, individuals and public bodies
D. Will to develop - projects to show that it is possible
Southern Sweden
Northern Sweden
A. The appearance of prosperity
GRP per capita
GRP per capita is an indicator that carries considerable weight in
designing regional policy in the EU. GRP per capita, however, is a
blunt instrument. Regions with a large proportion of capitalintensive operations in general have a high GRP per capita, which is
far from the same thing as high regional income, steady growth and
low unemployment. On the contrary, it is common for capitalintensive operations through continual rationalisation drives to
reduce their workforce, while at the same time practically the entire
operating surplus can go to other regions. ”Increased regional
economic growth, expressed as a growing Gross Regional Product
(GRP), does not necessarily mean either that employment in the
region grows, nor that purchasing power has improved.” Regional
policy evaluation, SOU 2000:36
Northern Sweden
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Northern Sweden has a per capita GRP which does not reflect
the true situation in the region. The operating surplus within the
extensive capital-intensive operations is channelled into other
regions and few new jobs are created. In the period 1995-2000,
Northern Sweden was among the regions in the EU that showed
the highest relative GRP decline.
Compared with the national average in Sweden, a much larger
proportion of Northern Sweden’s GRP is generated by industry,
while the private service sector has a correspondingly lower
share of the GRP than is the case in Sweden as a whole.
Structural problems remain and give rise to negative growth
figures.
Change in GDP/per capita (PPS), 1995-2000
Alternative income measuring
“There is good reason to believe that aggregate wage data has
considerable advantages over available GRP measurements as
indicators of regional economic growth”
Per capita income development in
North Sweden
Sweden=100%
Nilsson, R., Ekström, C. & Lagnerö, M., 2002: Regional economic growth in
Sweden 1986-2001. Vinnova in co-operation with Statistics Sweden.
GDP
Both as regards per capita GRP and per capita wage packet,
Northern Sweden is below the national average. In addition,
both measurements of income show a clear downward trend,
and each year more ground is lost to the rest of the country.
Both the total taxable income per person and the disposable
income per person in Northern Sweden lie somewhat closer to
the national average, because transfers are included in these
figures.
The dependence on income insurance systems for day-to-day
support is steadily increasing in Northern Sweden. This is a
direct consequence of the region’s structural problems and in
time will bring about an unsustainable situation.
In the final analysis, what counts is work that provides a
livelihood. Rationalisations in traditional industry must be
compensated by growth in the private service industries. The old
works culture and industrial tradition must be replaced by new
knowledge-based enterprises. This is a process that requires
both time and money.
Income from employment - before tax
Total wages
Purchase power
100%
98%
96%
94%
92%
90%
88%
86%
84%
82%
1998
1999
2000
2001
Growing support burden
In Northern Sweden the employable population is diminishing
faster than the population overall. Rapid and extensive outmigration of people of productive age (15-64 years) is leading to a
growing support burden to be carried by the employed people who
remain.
80%
70%
60%
50%
40%
30%
20%
10%
0%
Pop 15-64 as %
of total pop
Northern Sweden is a depopulation area. Over the last seven
years, the region has lost almost four per cent of its population.
This drain is most noticeable in the productive age group, where
one must observe a growing gap between the employable
population and the proportion of old and children.
EU25
EU15
Sweden
Employment rate
as % of pop 15-64
North
Sweden
In general, the rate of employment is high in Sweden, since
traditionally, a large proportion of women are gainfully
employed. Thus Northern Sweden also ranks high in a
comparison with EU15/25 in the proportion of the population of
productive age that is in gainful employment. Looking at the
proportion of the whole population in employment, the difference
between Northern Sweden and EU15/25 is much smaller. If one
also includes the large proportion of persons in Northern Sweden
in labour market programmes (whom are counted as being
employed), then the difference is probably marginal.
Employment
Employment rate
as % of total pop
Population trend in Northern Sweden
1995=100%
Total population
Pop 15-64
100%
98%
96%
2002
2001
2000
1999
1998
1997
1996
94%
1995
The considerably ageing population is a problem in the whole of
the EU. However, few regions are in such a dramatic situation as
Northern Sweden, which is 10 years ahead of EU15/25 in this
problematic development. To simultaneously experience
structural problems, low growth figures and an increasing support
burden puts the region in an disadvantageous position.
B. Extreme sparseness
Sparseness worsening
A low population density creates big disadvantages for people,
companies and organisations operating in Northern Sweden. A
description is given here of the concrete negative consequences of
sparseness. The first question is of course: how sparsely populated
in fact is Northern Sweden, compared to the rest of Europe?
As seen on the map, Northern Scandinavia in its entirety is the
most sparsely populated area in EU25. The distance from
Northern Sweden to more densely populated areas – primarily
the Stockholm region – is also the longest in Europe. The
nearest major towns are Oslo, Stockholm and Helsinki
If we compare single regions at NUTS II level, we find that the
two North Swedish regions have the lowest population density
in the whole of Europe (EU 25) at 3.3 and 5.4 inhabitants per
square kilometre respectively. This is followed by Scotland at
9.3 inhabitants per square kilometre. The EU 25 overall average
is 119 inhabitants per square kilometre.
The sparse population in Northern Sweden was a powerful
argument for Sweden originally to receive aid from the
Structural Funds. Since Sweden joined the EU and up to today,
the population in the regions in question has diminished by
39,000 inhabitants (equal to about 4 per cent) and the problem
of sparseness has thereby worsened.
Northern Sweden
Intraregional differences
Northern Sweden is not a homogenous region, either as regards
sparseness or development. While the coast has relatively steady
development, in particular around the dominant towns, the inland
areas are characterised by rapid depopulation.
The population density in Northern Sweden’s inland
municipalities in general is less than two (2!) inhabitants per
square kilometre, while for most of the coastal municipalities
the figures are around or over 10. This underlines the dual
character of Northern Sweden. Along the coast, development
has been relatively stable – largely thanks to major public sector
investments in regional colleges and other institutions – at the
same time as the inland has been struggling with structural
problems and accelerating depopulation.
The environment that is characteristic for the interior of
Northern Sweden, with extreme sparseness and practically no
large communities, creates particularly difficult circumstances
for all types of enterprise and for individuals. However,
ingenuity grows in adversity and new solutions to everyday
problems are taking shape. The Structural Funds have played a
vital role in this work. Several of the inland municipalities have
managed to turn an extreme downward trend into more
promising development. However, there is still a distinct lack of
resilience and much remains to be done before the whole of
Northern Sweden’s inland can be said to stand on its own feet
and have control over its own development.
The coast municipalities also play an important role in this
development work. The major towns in particular constitute
important regional growth centres that offer tertiary education,
specialised business services etc., but also a portal on the world.
The interaction between coast and inland is vital to Northern
Sweden’s development.
Coast*
Interior
Population 1990
488 630
423 954
*Marked by yellow line on map
Population 2002
494 747
386 381
% Change
1%
-9%
Area
A distinctive region
Northern Sweden covers approximately 55 per cent of
Sweden’s total area, but has only 10 per cent of Sweden’s
population. Even in comparison with the rest of Sweden
the north is extremely sparsely populated – 3.9 inhabitants
per square kilometre, compared to Southern Sweden’s 36
inhabitants per square kilometre. Population density is
then almost 10 times greater in Southern Sweden.
North Sweden
Greece
Portugal
Netherlands
Belgium
In a comparison with other European states, the sparseness
is even more marked. Northern Sweden is larger than
Portugal, the Netherlands and Belgium together, but has
less than three per cent of their aggregate population!
0
50000 100000 150000 200000 250000
sq km
Population
One interesting exercise to illustrate the sparseness of
Northern Sweden is to imagine that some other states in
Europe had the same population density (3.9 inhabitants
per square kilometre). The number of inhabitants in some
Member States would then be :
North Sweden
Greece
Great Britain
853,000 inhabitants
Portugal
Belgium
107,000 inhabitants
Netherlands
Greece
461,000 inhabitants
France
2,121,600 inhabitants
Germany
1,392,000 inhabitants
Belgium
0
5
10
million
15
20
Long distances
Northern Sweden is not simply a
sparse region. The region is also far
form the densely-populated,
expansive regions. The distance
from Northern Sweden to the
capital, Stockholm, is greater than
the distance many EU citizens have
to Brussels.
• The major population centres in central
parts of the EU mean that the difference
compared to Northern Sweden is
considerable as regards the number of
people that can be reached within a given
travelling time. In large areas of the EU,
ten times more people than in Northern
Sweden can be reached by three hours’
travel. Fewer than 5 million inhabitants
can be reached from parts of Northern
Sweden, compared with over 60 million
from large central areas of the EU.
• The long distance and the home region’s
sparseness make the situation in Northern
Sweden comparable with that on many
peripheral islands in the EU, i.e. the home
market is extremely limited and passenger
transport to the world around for reasons
of duration, must largely be by air.
Accessibility
Northern Sweden
C. Consequences of sparseness
Example: going from Gällivare
High costs of exchanges
to a 2-hour meeting in London
Sparseness and the peripheral location in the EU bring a number of
consequences for those operating in Northern Sweden.
Geographical transaction costs, which have attracted increasing
attention in recent years, are a key concept. Put simply, they are
added costs that arise when companies do business or co-operate
with players located in a different region. The costs increase with
the distance, not only travel and freight costs: everything becomes
more expensive when trade and co-operation take place over long
distances. This is highly patently obvious in Northern Sweden.
Gällivare
Start at
6.15 am, day 1
8.25 am.
9.20 am.
An entrepreneur in Gällivare travelling to attend an afternoon meeting
in London can serve to exemplify the difficulties caused by the long
distance. In order to arrive in time for the meeting, which begins at
13.00, the flight must leave at 06.15 in the morning of day 1. The trip
back from London begins on day 1 at 17.50. Upon landing in
Stockholm at 21.15, there are no more connecting flights to Gällivare.
The business leader’s trip home therefore must continue the morning
of day 2 and he/she arrives home more than twenty-four hours after
leaving home.
The air ticket for the above trip costs about SEK 12,000 (over 1,300
euro) and to this must be added the cost in working hours spent on the
trip and for the hotel night. Trips from Northern Sweden to big towns
in central parts of the EU often require two overnight stays even
though the actual visit is brief.
The long distances and sparseness also make goods transports timeconsuming and expensive. Companies in Northern Sweden are
required to pay considerably more than their competitors for their
goods to reach central parts of the EU market.
Back again
11.25 am on
day 2
9.15 am.
Stockholm
9.15 pm.
11.00 am.
Meeting
1 pm. to 3 pm.
London
5.50 pm.
Small labour market regions
Studies show that the size of the labour market has proven to be the
variable that above all others explains difference in a region’s
development. Large and diversified labour market regions have
structural advantages compared with smaller labour market regions.
This applies both to vulnerability to changes in specific industries
and companies and to the match between demand and supply of
workforce.
Towns form nodes in labour market regions and commuting
takes place from the surroundings. A town’s labour market
region generally includes the areas within a commuting time of
up to one hour. In Northern Sweden’s 30 labour market
regions the towns and the workforce are both small. Several
regions consist of a single town/community. In an area
corresponding to more than two-thirds of Italy’s, there are only
0.35 million working people. In Italy there are 21.3 million
working people.
”Of the total increase in payrolls between 1986 and 2001, the
major part has occurred on local labour markets with a
population exceeding 100,000, and in particular the local labour
markets in Stockholm, Malmö and Gothenburg, which over this
period have enjoyed more than 60 per cent of the total payroll
increase. Even in the question of the growth expressed as a
percentage, strong local labour markets lead developments.”
(Nilsson, R., Ekström, C. & Lagnerö, M., a.a. 2002)
Northern Sweden’s labour market regions are not simply small,
they are in many cases also vulnerable through their dependence
on one or a few big employers. Unemployment in Northern
Sweden has increased drastically over the period 1991-2001,
from about 4 per cent to 7 per cent. At the same time in the EU
(15) unemployment has fallen somewhat. In addition to open
unemployment, Northern Sweden has a very large number of
people in labour market programmes.
Competitive disadvantages
Southern Sweden
Higher education in private sector
Sweden=100%
1999
1998
1997
1996
1995
1994
58%
57%
57%
56%
56%
55%
1993
The development of the business sector in Northern Sweden
towards a more sophisticated knowledge-based economy
demands major investments, but will eventually lead to a good
return in the form of increased employment and higher incomes.
Northern Sweden
1992
Despite the decentralisation of higher education , the proportion
of employees with tertiary education in the private sector in
Northern Sweden still lags behind the rest of the country. It is
true that an increasing proportion of Northern Sweden’s young
people apply to regional colleges, but a large number, upon
completing their education, then move on to the large labour
markets in Southern Sweden. Northern Sweden has therefore
acquired the role of exporter of educated, ready-trained
workforce to the major city regions.
100
80
60
40
20
0
1991
Of the total 99 cluster formations identified in Sweden, only 5
are in Northern Sweden (Lindqvist, G., Malmberg, A. & Sölvell,
Ö., CIND, Uppsala University 2003, in collaboration with
Porter, M.E., ISC, Harvard Business School). Sparseness and
long distances make it very difficult to achieve the
agglomeration effects required to be a force on an international
market.
Number of industrial clusters
1990
Few strong clusters are formed in an environment where the
number of players in many cases can be counted on the fingers of
one hand and where the qualified workforce moves on to more
favoured regions. Competitive disadvantages mean that Northern
Sweden finds it hard both to compete for new ventures and to keep
its own companies in the region.
Additional costs for public services
A plain consequence of sparseness is that the costs of public services are
considerably higher per inhabitant in Northern Sweden than for Sweden
as a whole and compared with municipalities having the same
population density as EU25.
The total cost per inhabitant of public services in Northern
Sweden is 13 per cent above the national average, while
municipalities in Sweden with the same population density as
EU25 have a cost 10 per cent below the average.
The cost of the physical infrastructure rises drastically in
proportion to sparseness. In Northern Sweden it is necessary to
invest almost 40 per cent more per inhabitant on infrastructure
than the national average, and nearly 60 per cent more than in
the Swedish municipalities with a population density
comparable with EU25.
The high cost level is also evident in elderly care, where the
trend towards a greatly ageing population is already burdening
Northern Sweden’s municipalities to a considerably higher
degree than Sweden on the whole.
Only costs for childcare are somewhat lower in Northern
Sweden than in the rest of the country, but this is primarily due
to a lower proportion of children in the age group 0-6 and higher
unemployment and thereby a higher proportion of parents in the
home.
Per capita cost of public
services
Swedish EU25*
Northern Sweden
Total
Elderlycare
Education
Childcare
Infrastructure
0
50
100
150
Sweden = 100
*”Swedish EU-25” refers to values for municipalities in Sweden with a
population density corresponding to the EU-25 average.
D. Will to develop
The importance of Structural
Funds
Northern Sweden activities 1995-1999
The EU cohesion policy has been extremely significant to the
development of Northern Sweden after Sweden’s joining the EU.
Increased knowledge and awareness of the driving forces behind
development in the region, in combination with the development of
methods and new work modes in partnerships, and effective use of
the development capital received through the structural funds have
considerable added value, not merely for Northern Sweden but also
for the entire Union.
Number of projects
New jobs
Jobs saved
New companies
The Structural Funds are of great importance to the future of
Northern Sweden. There are a large number of forces in the region
that wish to accomplish changes, which can be seen not least
through all the activities carried out during the first programme
period. Without the financial backing that the Structural Funds
provide, however, the opportunities are few. The work is in no way
complete, and the need for input is still very great.
~3,500
>15,000
>10,000
>5,000
Project financing 1995-1999
EU
Public
Private
In the period from 1995 to 1999, about 3,500 projects were carried out
in Northern Sweden within the framework of the geographical
objective programmes (Objective 2, Objective 5b and Objective 6).
15,000 new jobs were created and over 5,000 new companies were
started, and 10,000 existing jobs were saved. These encouraging
results were achieved with a 32 per cent contribution from the EU
(Structural Funds), 44 per cent from public financiers in Sweden and
24 per cent from private co-financiers.
The evaluation stresses that the strategic choices made in the SPD for
the period in question had a reasonable aim to meet the demands set
for handling the problems in the area. However, the existing structural
problems had developed over a number of years and the actions that
could be implemented through a relatively limited programme were
not sufficient to achieve the desired changes.
0
2
4
Billion SEK
6
8
Objective 1 2000-2006
Northern Sweden is covered by two Objective 1 programmes in
the present programming period 2000-2006. Objective 1 Norra
Norrland and Objective 1 Södra skogslänen. The total
contribution of EU funding in these programmes are EUR 750
million.
•
Strategies and control have been improved in the
Objective 1 programmes in Northern Sweden during the
period 2000–2006. Experience of the Objective 6
programme forms the basis for setting clearer priorities,
which in larger elements contribute to structural transition
in Northern Sweden.
•
The fundamental aim for Northern Sweden is to develop a
competitive infrastructure for sustainable industry with
consideration given to the highly specific conditions that
characterise the region – extreme demographic
sparseness, long distances to markets both outside and
within the region and a cold climate.
•
The following part will present a number of examples of
strategies, priorities and strategic development projects partly
funded by EU:s structural funds. The projects are considered
contributing to an added value for Northern Sweden and the
European Union.
Red areas = Regions eligible under Objective 1
Purple areas = Transitional support under Objective 1
Dark pruple areas: Special programme to assist coastal areas of Sweden
Blue areas: Obective 2
EuropaForum Northern Sweden in this
context stresses the following
strategies and priorities, which are of
special importance for development
in Northern Sweden.
•
The basic industries that depend on a plentiful supply of
wood and minerals develop among other ways through
increased knowledge intensity and product development.
Innovation skills and collaboration in clusters create added
competitiveness and attractiveness.
•
The travel and tourism industries benefit from for
example destination development in partnerships,
improved marketing and packaging, and improved
infrastructure.
•
New industries, e.g. biotechnology and IT, benefit from
increased collaboration between research, business and the
community. By on the one hand focusing on the
development of regional and local infrastructure for
citizens, regarding e.g. e-health and distributed education,
and on the other hand stimulating business development
through product development and marketing for example
IT applications, added value is created for both citizens
and business. Car testing operations, utilising the unique
conditions provided in Northern Sweden, represent
another example of a new industry developed out of the
conditions existing in the region.
•
Innovative solutions have been developed to provide
services to citizens, both through partnerships,
collaboration and local initiatives, and through the
support of IT infrastructure and applications.
•
Increased ability to participate in, and increased
knowledge and awareness of European co–
operation. This applies both to participation in the
dialogue on important future issues regarding
European development and conditions for Northern
Sweden, and to collaboration with other regions in
Europe in project form or other forms.
Base industries
Northern Sweden’s business structure is largely built around
traditional base industries, e.g. the forest industry, mining
industry and engineering industry. This is natural since the
region has abundant supplies of wood and minerals. A
strategically important prerequisite for Northern Sweden, met
through EU Structural Funds, is the creation of conditions for
positive development of the base industries, among other
measures through increased knowledge intensity, new
applications and product development. The capacity for
innovation and collaboration in clusters improve
competitiveness and attractiveness. Here follow three examples
of projects that are partly funded by the Structural Funds.
Research and pilot plant for bioethanol,
Örnsköldsvik, Umeå and Skellefteå
•
The background of the project, the research and pilot plant for bioethanol is the need to reduce dependence on fossil fuels by
introducing renewable fuels. Cellulose-based ethanol is an important
factor in the development of alternative fuels in the transport sector.
•
The purpose of the project is to construct a research and pilot plant
and to develop the technology to produce ethanol and lignin,
principally using coniferous wood as raw material. The pilot plant will
function as a Swedish and international research and development unit
for continued process optimisation and for the development of
complementary and alternative process solutions, new equipment and
testing of raw materials. Today there is no pilot plant where the whole
process can be tested with recycling features, either in Sweden or
abroad. The plant is unique in the world and forms a base for Swedish
development and international contacts. Operations are expected to
result in a research centre for ethanol development in Europe and to
result in 15 permanent jobs, eventually also leading to research
activities and spin-offs in industry and universities /colleges.
•
The project has a total budget of EUR 7,2 million, with part-funding
from the EU Regional Fund of EUR 1,6 million via Objective 1 Södra
Skogslänen and is carried out in direct collaboration with an R&D
project funded from Objective 1 Norra Norrland.
Georange, Malå
•
•
•
The aim of Project Georange is, based on natural resources in
the form of ores, minerals and related operations, successfully
to contribute towards structurally developing the minerals and
mining sector in Northern Sweden from its dependence on a
small number of production sectors to a raised skills level and
the capacity to provide qualified services.
Sweden is the predominant mining nation in Europe and ranks
number one or two in gold, silver, copper, lead zinc and iron ore
in the EU area. Sweden’s share of the EU area’s production of
iron ore is 94%, of lead 54%, of silver 64% and of copper 31%
(1998). The development potential in the mining industry
cannot be fully realised, due among other things to difficulties
in recruiting key personnel. Northern Sweden – the ore district
with perhaps the best development potential in Europe - is to
become a centre for geoscientific teaching and research. The
idea is to use modern technology to develop an industry which
is one of the cornerstones in the Swedish inland economy and
which must be regarded as a considerable added value to the
entire Union.
This is the background to the initiative by the municipality of Malå to
raise and broaden skills via the project Georange. This is to be done
partly by growth in knowledge, skills and service sectors.
The project has a total budget of almost EUR 12 million, of which
just over EUR 5,7 million is from the EU Regional and Social Funds
via Objective 1 Norra Norrland.
Tools and product development centre AB,
Norrbotten and Västerbotten counties
•
The ” Tools and product development centre AB” project (VPUC)
aims to develop companies in the tool industry in Norrbotten and
Västerbotten and in so doing to achieve the goal of turning the
negative trend as regards market shares and to raise the tools industry
to an internationally competitive level.
•
The project comprises five subprojects; (1) Development of
Verktygsteknik AB into a centre for research and development of
technology and processes in the field of product development,
construction and manufacturing of moulding tools, (2) Technical
laboratory for steel shuttering, (3) Rapid Prototyping & Tooling
Centre (RPTC) in Skellefteå is a centre for rapid production of
prototypes and tools. (4) Industrial networks aimed at the development
of tool-based components with among its subgoals to create conditions
for collaboration by building up an industrial network and (5)
Development of process models and IT support for collaboration in
virtual companies.
•
It is expected that the project will directly result in 35 new jobs, two
new companies and two new company networks. Additionally it is
estimated that about 50 national and international client companies
will be linked to the project. The indirect effects to the individual
companies can be considerable. The project ” Tools and product
development centre AB” (VPUC) has received funding to a total of
EUR 5,4 million. The EU Regional Fund has contributed EUR 1,9
million, via Objective 2 Norra Norrlandskusten and Objective 1 Norra
Norrland).
Travel and tourism industry
Northern Sweden has a major development potential when it
comes to the development of the travel and tourism industry.
The EU Structural Funds have contributed to the further
development of the travel and tourism industry, among other
things by improving conditions for destination development in
partnerships, marketing and packaging and through the
development of infrastructure and research. A presentation
follows of three projects examples co-financed by the Structural
Funds.
AC United: Development process in the travel
and tourism industry in Västerbotten County
•
Several local projects in the travel and tourism industry in
Västerbotten County during the current Structural Funds period have
targeted the basic conditions for the development of the industry, such
as skills, product and destination development, and to create
conditions for a more structured collaboration with the sales aspect of
tourism. In this context, discussion of functional destinations has taken
place.
•
The inter-county project AC United aims to drive forward this positive
development and give organisations, destinations and geographically
delimited projects effective tools for their work. The development
process has been carried out during the period Feb. 2002 – June 2003.
The project participants included the county’s 8 co-operation
areas/destinations and thereby more than 150 representatives for
tourist companies, organisations, projects and individuals. As a
method development project, AC United has added value for other
regions in Europe .
•
The purpose of AC United is to strengthen the competitiveness and
attractiveness of the county, its companies and destinations, by
creating a joint commitment and assumption of responsibility for
future development. The goals encompass increased employment,
profiling, increased participation and collaboration, improved skills,
improved availability and quality of tourism products, as well as better
marketing impact. The project budget amounts to EUR 0,5 million, of
which EUR 0,25 million is from the EU Regional Fund.
European tourism research institute, ETOUR,
Östersund
Tourism and infrastructure initiatives in
Västerbotten inland: Hemavan –Tärnaby
•
An ongoing project is to complete the establishment of ETOUR,
which began in 1997 with support form Objective 6. By 2004,
ETOUR shall be a well-known and internationally leading tourism
research institute that provides good research and dissemination of
knowledge of practical value to the tourism industry and relevant
public bodies. ETOUR’s operational concept is through research and
the dissemination of knowledge to contribute to the development of
the tourism industry.
•
The Hemavan-Tärnaby area is located in the north western part of
Västerbotten County. During the period 1995 up to and including
2001 about 30 projects have been run in the area with the support of
the EU Structural Funds. Two main industries have been closely
studied; tourism and transport infrastructure. The transport
infrastructure sector comprises two projects involving Hemavan
Airport. The tourism industry project today comprises over 20
individual projects involving hotels, restaurants and alpine skiing
facilities.
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The project has an interdisciplinary approach with ”The tourist
destination” as its research profile, that is, the development of the
networks of companies, public bodies and organisations that form the
character of the tourist destination. The research and development
work is run in three programme areas; destination development,
business administration, and natural and cultural resources. To this is
added a special programme area for transfer of knowledge to the
tourism industry with the task of disseminating information on
research findings.
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During the present period, both air traffic and the tourism industry in
the area have shown a clearly positive trend. The number of air
passengers has increased from 1,666 in 1995 to 4,368 passengers in
2001, that is, a 262% increase over the period. In the first three
months of 2002, the number of passengers was 5,814, which means
that the number of passengers by the end of March was already
greater than for any whole year previously. The tourism industry
reports that the number of guest nights in the Hemavan-Tärnaby area
has also increased, with a growth of 52,299 overnight stays, or 338%
between 1995-2001.
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The total cost has amounted to EUR 4.1 million of which the Regional
Fund has contributed EUR 2.0 million.
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Within the project 45 different research projects are currently going
on. All the research projects are based on current issues in the tourism
industry, which has lead to considerable interest from the business
community, which sees it as an important source of information for
the industry’s own development.
The ETOUR project has a budget of EUR 7.9m for the period 20012004 and the EU Regional Fund is contributing EUR 3.9m.
New industries
Northern Sweden has three universities – Umeå University,
Luleå University of Technology and Sweden’s University Of
Agriculture. Mid Sweden University, with campuses in
Sundsvall, Härnösand and Östersund, will gain university status
in 2005. The Northern Sweden University Hospital is located in
Umeå. Taken together, the research carried out at these
universities and colleges creates good conditions for the
development of new industries, for example, biotechnology and
IT, through increased collaboration with business and the
community. The EU Structural Funds have contributed to
stimulating the development of new industries. In the following
section, a number of projects are presented, which are partfunded by the Structural Funds.
Embedded Internet System (EIS), Luleå
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The purpose of the project is to build up an industrial platform for the
company and a research platform inside Luleå University of
Technology (LTU) dedicated to EIS. The project goal is to achieve a
leading-edge position nationally within the strategic R&D area EIS.
The industrial platform is to create a critical mass of skills and
resources in the region’s business sector and comprises three areas;
(1) increase awareness of EIS among in the business sector, (2)
influencing attitudes to increase the level of maturity of businesses to
work with EIS and their interest in working with LTU in R&D and (3)
Stimulate and strengthen business networks.
The research platform is on the way to gaining international scientific
recognition and is already attracting competence. The project owners
co-operate with universities and research centres internationally, for
example L’Aquila University, Italy; Fraunhofer Institut, Erlangen,
Germany; Stanford University, USA; Oxford University, UK; and the
University of Karlsruhe, Germany.
After 24 months, the project has created ten new jobs (target was 7),
participating companies in the network: 277 (target 1), and one new
company (target 2). The indirect effects in the participant companies
have not been calculated. Luleå University of Technology (LTU) has
received funding from the EU Regional Fund amounting to EUR 2,8
million via Objective 1 Norra Norrland. In all, EUR 5,3 million is
being invested.
Digital Printing Centre, DPC, Örnsköldsvik
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Digital four-colour technique opens completely new opportunities for
producing printed matter. Rapid technological development in the
industry, in combination with new possibilities and markets, makes
new demands on both suppliers and users. Through digital
applications, one can greatly reduce the disadvantage of long
distances to the major markets that the graphics industry labours under
in sparsely populated areas.
There is now a great demand for qualified research, development and
education and the purpose of the project Digital Printing Centre, DPC,
is to create a centre for research and development. DPC shall maintain
the highest international class and shall give Sweden and the region a
leading position in digital printing techniques. The investment in DPC
is part of Mid Sweden University’s effort named ”Fibre Science &
Communication” and is run in collaboration with other research and
education institutions, the forestry industry, the graphics industry, and
other research institutes and education centres.
About ten research projects have been started, in fields such as colour
control, test printing, parallel publishing, variable and customised
printing, post-processing, the effect of different raster techniques,
packaging printing and distributed printing. Results achieved so far in
relation to set goals show that the project is progressing satisfactorily.
New jobs amount to seven (the target is ten), jobs saved number over
20 (20), the number of active researchers amounts to four (zero) and
the number of research projects amounts to 25 (ten). In addition, there
are about ten networks, some of them international, which have been
set up and five new training courses have been developed.
Project Digital Printing Centre, DPC, has a total budget of EUR 2,7
million, of which EUR 1,0 million is provided by the Regional Fund
via Objective 1 Södra Skogslänen.
Cell culture and synthetic transplants for
neurosurgery
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About 600,000 injuries per annum occur in the western world where
the patient is in need of reconstructive surgery. However, the
amputation of a limb leads to the loss of nerve cells, which often
causes chronic pain, sensory loss and reduced function. The project
being carried out at Umeå University Hospital aims to produce a nerve
prosthesis using nerve cultures, to replace the lost nerve tissue. The
nerve prosthesis will also function as function as an alternative to
primary nerve suture taken for example from the patient’s leg.
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Stem cell research is the key to success in this field, and the first tests
on rats started in Umeå in spring 2002. The first results indicate that
the cultivated cells double nerve healing. A multicentre study is
planned in co-operation with the university hospitals in Manchester
and Glasgow during 2003. An estimate of the market potential of an
approved product is astounding– a sales price of EUR 1650 per nerve
prosthesis would mean an annual turnover for this product of SEK
EUR 3 billion.
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Umeå University and Norrlands University Hospital through the
project ”Cell cultures and synthetic transplants for neurosurgery
received funding for an en initial study during the year 2001-2003
amounting to EUR 0,3 million, of which EUR 0,12 million was
provided through the EU Regional Fund. During the years 2003-2005,
the same project has received EUR 0,7 million from the EU Regional
Fund for a total project budget of EUR 4,5 million.
Development of local and regional
infrastructure for service, training and
business operations
AC-Net: Information technology
infrastructure throughout the county
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Västerbotten County realised at an early juncture the importance of
having a good IT infrastructure. As early as 1996 AC-Net went online
with the regional logic network that links the administrative centres of
the municipalities in the county. This was a broad alliance between the
county’s municipalities, business, the County Council and the County
Administrative Board. In the years 1996-1999, AC-Net was funded
through the Structural Funds (Objective 2, 5b and 6) and players in the
county, but has since been run on a purely commercial basis. The ACNet co-operation, in addition to low-cost Internet access and
telephony, has created awareness of the importance of co-ordinated
efforts in the IT field. An organisation for the whole county for IT coordination (IT Västerbotten), and an early startup in building the
physical IT infrastructure are clear effects of this. Much of the
broadband infrastructure has come about on a non-profit basis,
through the mobilisation of "village power" around the county. This
has created a belief in the future and a co-operative spirit, which can
lead to other growth effects.
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Through the early infrastructure efforts, Västerbotten today is seen as
a leading county in Sweden in IT infrastructure, and the county has
also attracted international attention. The county’s enterprises now
have improved opportunities to strengthen their competitiveness and
the inland municipalities through these investments have relatively
quickly been able to access the benefits of an infrastructure which
reduces telephony charges and which can support IT activities in rural
areas.
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In all, EUR 2,6 million has been invested in AC-Net in the years
1995-1999, of which the EU Regional Fund has contributed EUR 0,8
million.
Northern Sweden’s conditions - extremely sparsely
populated and with long distances, demands new, innovative
systems to provide municipal services and education. A well
developed IT infrastructure and collaboration project
permits an infrastructure for service and training, which are
necessary for business development. The EU Structural
Funds have contributed to the development of a local and
regional infrastructure for service, education and business,
in several cases with IT support. Here follow some
examples, part-funded by the Structural Funds.
E-health from a growth perspective
Academy North
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In interaction between Västerbotten County Council, Umeå
Municipality and local businesses, the project Tillit is bringing results.
By creating an effective tool for improved healthcare and social care,
one also creates a more effective organisation with the patient at the
centre. The local company STT Care contributes technical solutions
and works to create new products of commercial value – which is the
basis for growth and a dynamic region.
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New methods will improve conditions for those needing healthcare
and social care in the home. A database of all relevant information
about the care receiver is the base. When the project is completed it
will be possible to determine exactly what every person in the care
chain is doing and has done. For the present, care and social services
personnel are working with ordinary computers. Fairly soon the work
tools will be handheld computers and cell phones.
Academy North is a framework programme focusing on strategic
skills development as an instrument for regional development. The
purpose is for thirteen inland municipalities in Northern Sweden to
create county-wide collaboration on tertiary education. The
programme will bring about a stronger and clearer voice in
discussions and decision-making about aims, funding and localisation
of tertiary education. The programme will increase the availability of
tertiary education and improve the ability to identify, develop and
implement innovative courses based on local conditions and
increasing growth potential.
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Some examples of courses include Nordic Ski Academy in Lycksele,
Sollefteå and Tärnaby, Car systems in Arvidsjaur and Arjeplog, and
the GIS programme in Lycksele. In addition, both long programmes
and short courses are offered at locations where there are
concentrations of applications.
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The first phase of the framework programme was carried out during
the period 2000-07-01—2002-12-31, with funding from the European
Social Fund in Objective 1 Norra Norrland and Objective 1 Södra
Skogslänen. The total project cost amounted to approximately EUR
3,2 million, of which the Social Fund contributed EUR 1,25 million.
The framework programme is continuing during the period 20032005, with a total budget of approximately EUR 3,1 million, of which
the Social Fund is contributing EUR 0,9 million.
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Today, those who work with patients have little knowledge of what is
done, and where and when it is done. The personnel seldom meet –
with new technology they will be linked together. The system will be
able to inform personnel whether, when and by whom interventions
have been carried out. If for example a dressing for some reason has
not been changed, then perhaps the next person in the chain can do it.
If a patient has fallen and needs to be lifted, perhaps the nearest
personnel member can come and help. There is great interest in and
outside the county.
The Tillit Project for the years 2001-2003 had a total project budget of
EUR 1,0 million, of which the EU Regional Fund contributed EUR
0,35 million. Tillit is now in its second phase, 2003-2005. This phase
has a budget of EUR 0,35 million, of which the EU Regional Fund is
contributing EUR 0,4 million.
Business@Jämtland - Small and mediumsized enterprises on the Internet
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The Objective 6 project ”SMEs on the Internet” through the
association IT Jämtland has made it possible for an additional 370
Jämtland small enterprises to reach the world. That is how many
companies have received training on the possibilities of the Internet
and through the project have acquired a website.
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Business@jamtland is a business portal that displays the services and
products of Jämtland companies. The portal also has a much-visited
editorial section (approx. 14,000 visitors per month), which deals with
the everyday life of the Jämtland companies. The portal is memberbased and today has over 1,500 members. The aim is to support
business development, including different types of on-line functions.
These include a resource bank, business register, contact support, web
conferencing, training, etc. This is needed, not least because the
individual companies find it hard on their own to develop techniques
that are needed today and in the future. It is hoped that development
processes in the business sector in the county will be sped up with the
help of this portal.
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During the first period from 1998 –2000, the project was included as
part of a larger project ”SMEs on the Internet” which via Objective 6
Regional Fund was financed with a contribution of EUR 0,6 million,
out of a total project budget of approximately EUR 1,4 million. In the
period 2001– 2003, the project, Business@jamtland has received a
contribution of EUR 0,13 million from the EU Regional Fund.