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ECONOMIC COMPETITIVENESS IN SM å LAND-BLEKINGE (Ch.2) Yancy Vaillant Regional Development Policy Division Directorate for Public Governance and Territorial Development OECD. 10 November 2011. Competitiveness in Sm å land-Blekinge. Sm å land- Blekinge development paradox: - PowerPoint PPT Presentation
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ECONOMIC COMPETITIVENESS IN SMÅLAND-BLEKINGE (Ch.2)
Yancy VaillantRegional Development Policy DivisionDirectorate for Public Governance and Territorial DevelopmentOECD
10 November 2011
Competitiveness in Småland-Blekinge
Småland-Blekinge development paradox:
The region has continued to compete successfully in sectors which in other OECD countries have largely lost out to developing countries.
10 November 2011 Ronneby Seminar 2
Competitiveness in Småland-Blekinge
Development of knowledge-intensive businesses is a promising route for ensuring the maintenance and growth of the region’s prosperity
10 November 2011 3Ronneby Seminar
Competitiveness in Småland-Blekinge
“knowledge-based economies”
- economies which are directly based on the production, distribution and use of knowledge and information (OECD 1996).
10 November 2011 4Ronneby Seminar
Competitiveness in Småland-Blekinge
The four counties have a promising firm structure,
but an urgent need of new skills to make the most of that structure.
10 November 2011 5Ronneby Seminar
Old and New Industrial Paradigm
10 November 2011 6
Old Approach New Approach
Strategic focus Efficiency-driven Knowledge-driven
Competitive strategy Cost LeadershipInnovation-based
differentiation
Source of competitive advantage
Tangible resources,
Market Power
Human and intangible resources
Keys for competitivenessScale efficiencies,
Process innovation
Flexibility,
Strategic innovation
Productive objectives Quantity Quality
Capital focus Financial capital Social and human capital
Organisational StructureRigid organisational
structureFlexible organic structure
Preferred leadership style
Managerial Entrepreneurial
Dominant firm size Large corporations SMEs
Ronneby Seminar
Competitiveness in Småland-Blekinge
The adjustment of the local industrial fabric will require:
A prior shift in the characteristics and availability of the local labour supply,
But, this will not occur unless skilled workers find Småland-Blekinge an attractive place to live and work.
710 November 2011 Ronneby Seminar
Competitiveness in Småland-Blekinge
Need for simultaneous change:
Shift in local industry
and
in the local labour markets
Must change together to successfully transition towards a more strategic and competitively sustainable future.
810 November 2011 Ronneby Seminar
Competitiveness in Småland-Blekinge
Three main targets for closing labour-market mismatches in the transition towards a knowledge-driven economy are:
i. Better integrate young people in the regional economy;
ii. Attract talent from outside; and
iii. Better integrate women in the private sector.
910 November 2011 Ronneby Seminar
OPPORTUNITIES FORYOUNG PEOPLE
1010 November 2011 Ronneby Seminar
Opportunities for Youth
• Young people may well be a leading indicator of a region’s future trajectory…
• …but youth in Småland-Blekinge tend to leave the region
1110 November 2011 Ronneby Seminar
Opportunities for Youth
Steps to retain and regain skilled youth:
• Assure a good match between the educational system and local business;
• Promote a favourable framework for the personal and entrepreneurial development of youths; and
• Engage youth in the development of the region.
1210 November 2011 Ronneby Seminar
OPPORTUNITIES FOR IMMIGRANTS
1310 November 2011 Ronneby Seminar
Opportunities for Immigrants
Immigrant labour may also play an essential role in filling the existing skilled labour gap
Foreign students should be encouraged to stay
Opportunities for immigrant entrepreneurship should also be promoted
1410 November 2011 Ronneby Seminar
OPPORTUNITIES FORWOMEN
1510 November 2011 Ronneby Seminar
Opportunities for Women
A knowledge-based economy will help change the labour market gender bias, and vice versa
Better integration of women in the private sector should be favoured
Through entrepreneurship the human capital potential of women can be more effectively utilised
1610 November 2011 Ronneby Seminar
Attractiveness of Småland-Blekinge
Things that can help make Småland-Blekinge an attractive place:
i. The region’s natural and cultural amenities;
ii.A stronger and more diversified business framework;
iii.Improved regional connectivity to better promote regional development.
1710 November 2011 Ronneby Seminar
AMENITY-BASEDDEVELOPMENT
1810 November 2011 Ronneby Seminar
Amenity-Based Development
• Natural Amenities,• Cultural Amenities,• Systems Amenities
19
From To
Sectoral approach → Territorial approach
Subsidies → Investments
Place of production and extraction (resources)
→ Place of consumption (amenities)
Export goods → Import people, ideas and
investments
10 November 2011 Ronneby Seminar
Amenity-Based Development
ABTD requires agreement on how to promote, protect and make productive use of local amenities
Good public and private services can complement the attractive power of natural and cultural assets
2010 November 2011 Ronneby Seminar
FRAMEWORK FOR COMPETITIVENESS
2110 November 2011 Ronneby Seminar
Framework for Competitiveness
Local businesses need to modernise and diversifyShare of workers in professional and scientific
activities
2210 November 2011 Ronneby Seminar
Framework for Competitiveness
Need for quality entrepreneurship:
Allows a territory to commercialise its endogenous resources and capabilities efficiently and sustainably through an optimal use of the region’s human capital, whether as entrepreneur or as employee.
2310 November 2011 Ronneby Seminar
Framework for Competitiveness
However, business retention and expansion are as important as business creation.
For this, authorities must have clear and unbiased knowledge of the local business fabric.
(public-private relationship, trust and better coordination)
2410 November 2011 Ronneby Seminar
BETTER CONECTIVITY
2510 November 2011 Ronneby Seminar
Improving Regional Connectivity
Increasing regional attractiveness, competitiveness and interactions requires better connectivity,
but, Småland-Blekinge’s existing Regional Connections are in need of improvement…
2610 November 2011 Ronneby Seminar
Improving Regional Connectivity
New strategic role of south-east in a new eastern-oriented trade context.
Firms in Småland-Blekinge may be particularly well situated to take advantage of these opportunities,
which fall in line with the region’s need for a new diversified client base.
2710 November 2011 Ronneby Seminar
Improving Regional Connectivity
However, better connectivity requires better territorial co-ordination…
Improvements in infrastructure are necessary, but not enough!
2810 November 2011 Ronneby Seminar
CONCLUSIONS
2910 November 2011 Ronneby Seminar
Conclusion
A shift is needed in Småland-Blekinge’s labour force to encourage the transition towards a greater value-added and knowledge-intensive business model.
There is a need to better promote the area’s strong endowments and improve connectivity in the region,
Strong SME structure and managerial capabilities are a good basis for establishing a modern knowledge-based economy.
3010 November 2011 Ronneby Seminar
ECONOMIC COMPETITIVENESS IN SMÅLAND-BLEKINGE (Ch.2)
Yancy VaillantRegional Development Policy DivisionDirectorate for Public Governance and Territorial DevelopmentOECD
10 November 2011