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”Central Baltic programme’s opportunities to strengthen region’s competitiveness”
Project Manager Ülari Alamets
Content• Where to intervene to achieve change?
ÞOur niches => Specific objectives
• How we achieved selected specific objecvtives and set target values?
• ”Intervention logic’s” of two chosen specific objectives (of Competitive economy)
• How we work to find projects needed for achieving programme’s results?
Central Baltic region Regions of Finland, Sweden, Latvia, Estonia, Åland
Total population: 10.5 M inhabitants (2% EU)
Population density• Average: 53 inhab./km2 (EU
28: – 116 inhab./km2)
CB Regions combined GDP – ca 300 bn EUR
Baltic sea as common sea Home of great global companies
in traditional sectors and Excellent education systems Significant differences in wealth
(west/north – east/south ...
=> What can be changed with ca 29 MEUR
Based on what objectives were chosen?
• Central Baltic economies strengths and complementarities
• What others are not doing?
• Where co-operation interest existed (project ideas)
• EC-s new/old approach on ”taking results seriously”
5
Global Competitiveness
Global Competitiveness Report 2013-2014 (World Economic Forum)SWEDEN: Rank – 6
(+2) Innovation led Quality of public
institutions High degree of trust and
transparancy Efficient financial
marketsFINLAND: Rank – 3 (+-0) The 2nd innovative in
Europe Transparant public
institutions (1st in ranking)
The top position in health, primary, higher education and training
ESTONIA: Rank – 31 (-3) The best in Eastern
Europe Excellent education Efficient goods and
financial markets Advancing technology
readiness
LATVIA: Rank – 52 (-3) High level higher
education and training Commitment to
technological readiness Improved macroeconomic
environment Infrastructure, Innovation
as problematic areasSource: Global Competitiveness Report (2014)
6
• Potential for Central Baltic region to be Technology start-ups hub • Presence of well recognized
networks, events, co-working initiatives, mentorship programmes, business idea competitions in all CB countries
• Success stories of new technology start-ups in all CB countries
• Common CB region / environment for business development to market globally
Innovativeness, Competitiveness, Business Development
7
Summary: challenges and opportunities
Challenges and opportunities related to economic development:
• Further integration of the Central Baltic economies and markets;
• Identifying common interests (on the basis of clusters of different economic sectors) and further develop and market those clusters to access the new markets;
• New technology start-up activities to strengthen Central Baltic region’s position as globally competitive hub for technology start-ups;
• Exploitation of potential target sectors for new business development such as ICT, “low-carbon” solutions, “silver” economy, as well as supporting the “green” and “blue” economy;
• Developing entrepreneurial attitude in the society already from the early school years.
How we achieved selected specific objectives?
• Strategy process
• ”Convincing decision makers”
• Regional Analysis
• Project Ideas
• Thematic workshops
9
Programming logic for the CB Programme 2014-2020
INVESTMENT PRIORITY 3.1.
STRATEGIC
PROJECTS
PROJECT IDEAS, CO-OPERATION INTERESTS
PROJECTS
SMALL PROJECTS
TO 2
TO 3
TO 1
TO 4
INVESTMENT PRIORITY 3.2
INVESTMENT PRIORITY 6.1
INVESTMENT PRIORITY 6.2
INVESTMENT PRIORITY 6.3
Specific Objective 1.1
Specific Objective 1.2
Specific Objective 6.1.1
Specific Objective 6.2.1
Specific Objective 6.3.1
National, regional strategies
Europe 2020
EUSBSR Strategy, Action Plan
Menu of 11 TO-s
Result 1Result 2
ONGOING: ANALYSIS, CONSULTATION
Result 3Result 4Result 5Result 6Result 7
ANALYSIS, CONSUL-
TATION
EXPERIENCE OF THE
CURRENT PROGR.
IDENTI-FICATION OF THE
MAIN CHALLEG
ES OF THE
CENTRAL
BALTIC REGION
INVESTMENT PRIORITY 7.1
INVESTMENT PRIORITY 7.2
INVESTMENT PRIORITY 10.1
Specific Objective 7.1.1
Specific Objective 7.2.1
Specific Objective 10.1.1
Result 8Result ..
10
Available IPs
(a) Promoting entrepreneurship, in particular by facilitating the economic exploitation of new ideas and fostering the creation of new firms(b) Developing and implementing new business models for SMEs, in particular for internationalization(c) Supporting the creation and the extension of advanced capacities for product and service development(d) Supporting the capacity of SMEs to engage in growth and innovation processesE
mp
hasis
on
in
novati
ve
SM
Es
Low
carb
on
ICT
(1) To exclude:
(b) Developing and implementing new business models for SMEs, in particular for internationalization(c) Supporting the creation and the extension of advanced capacities for product and service development
(2) To choose:
(a) Promoting entrepreneurship, in particular by facilitating the economic exploitation of new ideas and fostering the creation of new firms
(d) Supporting the capacity of SMEs to engage in growth and innovation processes:• emphasize on innovative
SMEs• by developing links and
synergies between enterprises, R&D centres, higher education institutions
• by interpreting internationalization as precondition for growth
• by addressing the capacity of services and product development
3) To address specific needs of business development in isolated remote areas via AI sub-programme
TO 1 (b) Supporting the capacity of SMEs to engage in growth and innovation processes
• All 4 TOs are broadly defined, all of them should have focus on innovative SMEs
• IP (a) is clearly addressing new businesses, IP (b), (c), (d) - established SMEs
• IP (a), focusing on new businesses, supports the potential for CB region as technology-start ups hub
• IP (d) addresses SMEs capacity and growth, innovation, also covering internationalization
Explanations/interpretations:
Delegations’ comments (via written procedure)Estonia:• Supports to exclude (b) and (c)• Emphasizes specific needs of business
development on scope of AI programme (maybe also SFE programme)
Finland:• No comments regarding IPs
Latvia:• Emphasizes a need to have more
focused scope of results via enhanced competitiveness through innovation driven investments
• Reminds of moving TO1 (b) to TO3• Supports choice of (a) and (b)• Asks for justification of (c), before
excluding it
Sweden:• IP (d) should include capacity building and
internationalizationÅland• Supports selection of (a), (b), (d)
Additional consideration
s
Horizontal Themes
3/Enhancing the competitiveness of SMEs
New knowledge intensive companies
More entrepreneurial youth
More exports by the Central Baltic
companies to new markets
Natural and cultural resources
developed into sustainable tourist
attractionsSustainably planned
and managed marine and coastal
areas
Better urban planning in the
Central Baltic region
Reduced nutrients, hazardous
substances and toxic inflows to the
Baltic Sea
Improved transport flows of people and
goods
Improved services of CB small ports for
mobility and tourism
More people benefiting from
stronger CB communitiesMore aligned
vocational education and
training programmes
Competitive economy
of the region(29 meur)
Sustainable use of common resources
(37 meur)
Well-connected region
(37 meur)
Skilled and socially inclusive region
(12 meur)
Access to and use and quality of ICT
The shift towards a low-carbon economy
Specific Objectives
Specific objective definition + result indicator’s definition + baseline value + target value
SO 1.1 New joint and co-operating Central Baltic knowledge intensive companies
SO 1.2 Joint CB student companies – leading to more entrepreneurial youth
SO 1.3 More exports by the Central Baltic companies to new markets via clusters’ co-operation
What results should we achieve via the financed projects by 2023?
• 100 new joint Central Baltic companies +
co-operating new Central Baltic companies• 50 joint Central Baltic student companies• 10 Central Baltic cluster based co-
operations achieve sales to new markets
New joint and co-operating Central Baltic businesses ”Intervention Logic”
Potential (BUSINESS AREA):
• This specific objective aims to exploit the opportunities of “green”, “silver”, and “blue” economy. The potential of ICT and low-carbon solutions, climate change mitigation and adaptation (as resource efficiency, renewable energy etc.) have been defined as a basis for new business creation.
• The Central Baltic region has a good potential to strengthen its position as a globally competitive technology start-ups region.
• This specific objective aims also to target challenges related to the sustainability of the businesses operating in sparsely populated, rural, peripheral, isolated island and archipelago communities. The seasonality of some traditional activities (e.g. tourism, fishing, agriculture) adds complexity to the challenge.
• Specific attention is paid to the need of developing diverse sets of skills to be successful and sustainable in isolated and sparsely populated areas.
New joint and co-operating Central Baltic businesses
Definitions:Knowledge intensive enterprises are the ones with a potential to grow and internationalize, aiming to achieve higher value added than the regional average level of the industry they belong in.New enterprises are defined as 2 years from the registration or the start of operations. ! In the case of islands and archipelagos “new business models of existing SMEs” are equaled to “new businesses”.“Joint” is defined as joint teams (key people), joint management or joint ownership by people from at least 2 Member States/Åland.“Co-operating” is defined as new Central Baltic companies that have established co-operation in relevant areas of their business development (e.g. product development, marketing).
Results:The aim is to achieve the creation of new joint Central Baltic enterprises and co-operation between new enterprises in the Central Baltic region, although it is accepted that a certain share of targeted teams and businesses will not become joint or co-operating.
How?The main approach is to implement development projects via intermediate bodies in the field of business development. The Central Baltic
Programme will not use grants and financial instruments to new start-up companies.
Exports to new markets via clusters’ co-operation
Potential (BUSINESS AREA):This specific objective aims to support the clustered Central Baltic SMEs to enter into new markets with focus on innovation, product development and internationalization, which are relevant preconditions for sustainable growth.
Definitions• New markets are defined as markets outside the European Union / European Free Trade
Area (EFTA).• Cluster is defined as an established co-operation between similar or complementary
businesses and research and development (R&D) institutions.• Meta-cluster is a co-operation between established clusters within the Central Baltic
region, undertaking joint activities with the aim to enter new markets.How?Here a cluster-based approach for co-operation within the Central Baltic region is used promoting co-operation between already established clusters forming “meta-clusters”. This should enable the SMEs to enter into the new markets with new or adapted products and services.
Project partners are encouraged to set symbolic participating fees for target group companies who benefit from project activities. This is seen as a way to increase their commitment.
! No costs related to permanent costs of distribution networks, trade offices are eligible.
Towards results
Concrete Results => Implement
Measurable Change Good PlanQuantifiable Baselinevalue Strong teamChange Targetvalue
Follow the same logic while pre-consulting, assessing, monitoring
How we work to find strong projects?
• Continuos work with project ideas: informing, consulting, project development seminars, consultation days, written feedback, face to face meetings,...
• Two step application process: first step ”to understand is project right for CB programme”, second step ”to elaborate on demonstrate that good plan and resources are in place”
First call project applications – Priority 1
• 46 project applications: 41 regular, 5 small
• SO 1.1 – 22 (20+2), 11 consulted• SO 1.2 – 8 (6+2), 4 consulted• SO 1.3 – 16 (15+1), 13 consulted
28 consulted
The big picture: P1
With projects through first step:
• Contribution to result targets:
• SO 1.1 110/100 (110%)
• SO 1.3 5/10 (50%)
Required ERDF: 18 583 697,72/28 754 691 (65%)
What we do in the middle of first call?
• After first step: Explain, demand, support, explain,...that results are relevant and have to be achieved
• For second call: Inform, seek, consult, direct, support,...
