1/27

Innovation as a driver for Regional Economic Development

- the case Fiber Optic Valley

Kristofer ErlandssonThe Competitiveness Institute

2/27

Kristofer Erlandsson M Pol Sc

• 1975-80 Expert, Swedish Board of Trade• 1980-84 Expert, industrial policies Nordic Council of Ministers• 1984-90 Expert, trade and industrial policies Swedish Federation of

Manufacturing Industries (expert ICC,UNICE,BIAC)• 1990-94 President Swedish Coalition of Service Industries• 1994- Independent advisor, strategy consultant and analyst

(i a evaluation of structural funds programs)• 1998- Founder of Process Simulation• 2001- Commissioned by NUTEK/ VINNOVA/VISANU for i a an

extensive Triple Helix Management training program• 2004 Commissioned by Ministry of Economy and Labour, Poland,

together with Gdansk Institute for Market Economics• 2005 Commissioned as RIS expert by EEDRI/University of Lodz

Appointed Executive Director of The Competitiveness Institute

3/27

The global network for regional competitiveness

We offer information on clusters and competitive regions worldwide. We use multiple arenas in real life and on the net for exchange of ideas, knowledge and experiences on methodologies for economic growth.

We work on clusters, innovation systems, promotion of entrepreneurship and regional branding.

4/27

ArgentinaAustraliaAustriaBelgiumBoliviaBrazilCanadaCzech RepublicChileChina/ Hong KongCosta RicaDenmarkEcuadorEstoniaFinlandFranceGeorgiaGermanyGuatemalaHonduras

LatviaIcelandIndonesiaIrelandItalyJapanJordanKazakhstanLatviaMalaysiaMauritiusMexicoMoroccoMozambiqueNicaraguaThe NetherlandsNew ZealandNicaragua

NigeriaNorwayRussiaSan SalvadorSenegalSloveniaSouth AfricaSpainSwedenSwitzerlandTanzaniaThailandUgandaUkraineUnited Emigrates of ArabiaUnited KingdomUnited States of America

OVER 500 MEMBERS FROM MORE THAN 50 DIFFERENT COUNTRIES

5/27

The 9th annual TCI conference will be held in Lyon France October 2006 - Governance and Companies as Cornerstones of Cluster Initiatives

Visit us on the web : www.competitiveness.organd become a member you too !

6/27

Fiber Optic Valley

Fiber Optic Valley is

a cluster focusing on

development and test of

broadband technique,

e-services and photonics

7/27

- Fiber to the user

- E-services to the home and SME

- Fiber optical industrial applications

FOV main areas of focus are:

8/27

- Systems creating, transporting and detecting light carrying information. Major application areas:- Digital communication, sensor systems, medical applications, illumination

What is fiber optics?

9/27

- The single largest Swedish effort building competence in R&D, manufacture and education to support the new fiber optic IT infrastructure

- A unique competence mix

- Supplies the environment required for development of the technique and e-service platforms of the information society of tomorrow

Fiber Optic Valley

10/27

Fiber Optic Valley – the region

Situated in the center of Sweden, on the east coast between Sundsvall and Hudiksvall.

11/27

•Almost in the middle of Sweden

•Three large industries

•1 700 SMEs

•Only 37 000 inhabitants in a region seven times the size of Stockholm

Hudiksvall

12/27

• Paper

• Hydraulics

• Telecom cables

Hudiksvall – an international competence center in

13/27

• LM Ericsson builds a cable factory in Hudiksvall 1966

• Fiber optics within Ericsson-Televerket (Swedish PTT) during the 70’s

• Fiber optic cables manufactured from 1984

Fiber Optics History in Hudiksvall

14/27

Metropolitan Area Fiber Network in Hudiksvall

Phase 1 1996

FOV Background

15/27

FOV Background

First fiber to the home (FTTH) installation in Sweden, in Hudiksvall 1998

16/27

More than 150 partners, including about 40 co-financiers

2005

17/27

1999 - The community of Hudiksvall decided to start Infocom - a project for initialization of:

- Fiber Optic R&D

- Fiber Optic Education and Training

- Commercialization of the Fiber Optic Metropolitan Area Network

- Commercial Growth

2000 – started the lobby group Via Futura (www.viafutura.nu)

2001 – Opening of Acreo FiberLab

2002 – Mid Sweden University starts research and higher education within fiber optics

2003 – Fiber Optic Valley

FOV Background

18/27

Winner of Vinnväxt- VINNOVA, the Swedish agency for innovation systems, has a program aimed at stimulating innovation and growth in different regions of Sweden.

- Fiber Optic Valley was chosen as one of the winners of this initiative called VINNVÄXT.

- This means a financial support of six million Swedish kronor a year for a period of ten years.

19/27

•Main product: contract R&D•Turnover 2003: 212 Mkr ( 30 MUSD)

of which 50% from the industry•160 employees (1/3 PhDs)•Three major laboratories: FiberLab (Hudiksvall), Semiconductor Lab (Kista), Organic Semiconductor Lab (Norrköping)

The largest Swedish research institute in microelectronics and optics

Acreo

20/27

- Inaugurated Sept 13, 2001

- 30 MSEK equipment (3,3 MEuro)

- 2000 m2 of which 500 m2 clean room

- Two hours by train from Arlanda Airport (Stockholm)

Acreo FiberLab - Hudiksvall, Sweden

21/27

USAAT&TBellCiscoCorningMicrosoft

South AmericaE/// BrasilUniv. do Brasil

RussiaFORC

AsiaSumitomoHitachiSamsungCETCFasten Photonics

Above all via Acreo, MiUn, HiG, UU, KTH, WII, ECA and international projects:

• World Internet Project• MUSE (EU Frame 6)• NOBEL (EU Frame 6)• MUPBED (EU Frame 6)• Innovation Relay Centres (IRC) Outside EU:

International research network

22/27

Center for Development and Learning- Education and training in fiber optical network development, installation and operation- Has the No. 1 environment in Northern Europe for fiber optical education and training

- Produces and publishes own course litterature

- Runs custom designed education for companies

- Has several partnerships, Ericsson Training Partner, Cisco Networking Academy, Microsoft IT Academy, VUE Testing Partner

23/27

The Testbed – first of its kind in Europe- A realistic environment where contracted users (test pilots) form a representative picture of the society.

- Researchers, manufacturers, suppliers and users, develop, test and verify function, quality and market requirements of products and services before introduction on the open market.

24/27

• Fiber optic access to all class rooms, teachers’ rooms and group rooms

• 100 Mbit/s within the school

• 1 Gbit/s or more between the schools

• Access to the Acreo testbed

The Digital SchoolA Project in Hudiksvall

25/27

•Most modern in Northern Europe 2001

•Most modern computer tomograph in 2005

•Raw data 1,8 Gbit/s, fiber optics only possible communication link

Hudiksvall’s hospitalFiber in and around the X-ray dept. already year 2000

26/27

FOV Success Stories

R&D Companies

Innovation Establishments

MUSENOBEL

MUPBEDOld@Home In Hudiksvall since

2004

Studies usage and effects of Internet and digital communication technique on individuals, society and business

27/27

•

Commercializing of Hudiksvall’s Metropolitan Area Network

•

Acreo FiberLab (www.acreo.se)

•

The fiber optical test bed

•

Fiber optic education and training (techn. - PhD)

•

World Internet Institute

•

Fiber optic industry applications

•

“The IT Advisers”

•

Firmly established and representative management and board

•

Vinnväxt-winner 2004

•

24 new companies within fiber optics in the region

•

> 100 well paid new jobs

Summary FOV 1999-2005

28/27

Fiber Optic Valley - critical observations for politicians• Realize that cluster development is a process (which has to be adequately financed) and not a project

• Accept that results will show in value not in volume

• Never lose focus on the commercialization

• Accept politically that business has no boundaries and that science is global

• Equity is good (upbringing) money and grants are bad money

• Contests focuses on those which can deliver and not those which are pitied

29/27

Creating an Innovative Europe -the Aho report to the EC• Provide an innovation-friendly marketRegulation StandardsPublic procurementIPLarge scale strategic actions on European level

•Increase in resourcesStructural funds share to R&D trebled

•MobilityFinancial mobilityClusters and technology platforms

30/27

Structural funds - Infrastructure or R&D ?

Both infrastructure and R&D

plus

socio-economic infrastructure (process facilitation and trust creation)

and

venture capital (reinforcing local capital formation)

31/27

Thank you , for further

information please contact Kristofer Erlandssonke@processim.comwww.processim.com

www.competitiveness.org

www.fiberopticvalley.se