1. The North Denmark Development Path and Smart Specialization Analysis of the Region By/ Henning Christensen, Head of Division

2. About Smart Specialization? Smart Specialization is basically not just about specialization but very much about smart diversification Has resulted in a set of guidelines for the process of designing and implementing a RIS3 strategy An ex-ante conditionality for receiving and distributing EU structural funds 2014 to 2020.

3. Main recommendations RIS 3 – Expert Assessment (Bjørn Asheim): 1. Build on national strengths positions 2. Move towards high value-added niches 3. Increase educational and competence level in the private sector 4. Mobilize additional funding for knowledge intensive R&D-driven sectors 5. Make use off Public Procurement for Innovation (PPI) 6. Focus on the attractiveness of North Denmark 7. Establish clear action lines in the strategy

4. Industrial areas with growth potential for North Denmark - The 8 national ”Growth areas” Maritime Industry Energy & Climate tech. ICT & Digitalization Tourism & Experience Food Creative Businesses Health & welfare solutions Water, Bio & Environment solutions

5. The 8 national ”Growth areas” – Mapping of growth potential Growth Area Public research in fields related to the Industry (AAU) Sub branches with economic growth Sub branches with employment growth Sub branches with regional specialization Presence of regional supporting organizations and institutions Presence of a relatively high number of growth- businesses

6. The 8 national ”Growth areas” – Growth potentials for North Denmark North Danish growth potentials Energy & Climate - Oil rigs, Windmills, Boilers, Pumps and Biogas Plants. Maritime Industry - Logistics, green equipment and service. Health & Welfare - Possibilities for developing local business access to develop and test innovative solutions in collaboration with the public sector. Tourism - Development of the regional tourism product towards high value niches Water, Bio & Environment - Possibilities for development in the recycling industry Foods - High quality non/semi processed foods & agro technology Information & Communication Technology - Potentials within ICT services, e.g. software and ICT -consultantsy. Creative businesses & Design - High specialization in production of fur Construction & Housing - Many specialized subcontractors for the construction sector

7. Analysis of The Industrial ”Growth Layer” in North Denmark: More than 1.000 enterprises in the Growth Layer 553 Growth enterprises479 Potential growth enterprises

8. Distribution of 553 growth enterprises by sectors Share of growth enterprises by sector 2013

9. Industries included in NDR growth areas Distribution of 553 growth enterprises by industrial sectors - relative to national average

10. Geographical distribution of the Growth Layer (553) Growth enterprises share of private companies, 2013 Share of private employment in growth enterprises, 2013 NDR average NDR average

11. Jobcreation in the Growth Layer More than 5.000 new jobs in 3 years … in the 553 Growth enterprises alone …and in a term with overall employment stagnation

12. The growth enterprices share of overall economic growth (GVA) Number of enterprises 2013 GVA increase 2010 to 2013 (billion kr.) Growth enterprisesOther private enterprises

13. The growth enterprises utilization of regional business support programs Share of all growth enterprices 2013 Share of growth enterprises participating in regional support programs 2007 to 2013 Participated 2007 to 2013 Did not participate Support did influence growth No effect / don’t know

14. Preparatory analysis - some main conclusions for North Denmark Problems with productivity growth, especially because some areas are less innovative Average performance on entrepreneurship - but problems in terms of new firm growth A number of well performing business areas, with considerable growth potential The existence of ”growth layer” – a limited number of enterprises sustaining overall growth.

15. The analythical structure of the strategy SW TO Preparatory analysis 123 456 987 Strategic areas of action SWOT –analysis for North Denmark Global trends (megatrends) Main challenges and recommendations New growth Better mobility Increased attractivity Globalization Demography Climate change

16. Analysis: SWOT, megatrends, main challenges and strategic actions 1. Secure a quallified laubourforce RECOMMENDATIONS AREAS OF ACTION 6. Increase internationali- zation of businesses New growth Better mobility Increased attractiveness 5. Match qualifications to business needs 4. Create more businesses with growthpotential 3. Increase private capacity for innovation 2. Exploit business areas of strength 7. Secure mobillity and accessibility 8. Secure an attractive North Denmark 9. Strengthen the regionens international collaboration MEGATRENDS Demography Globalization Climate change SW OT Reference to challenges 1,2,3,4,5,6,9 1,2,3,4,7,9 2,4,5,8,9

17. From recommendations to strategic focus areas - an example Recommendation 2: Exploit regional strengths within businesses and technologies SMART REGION Promote growth and coherrency for all North Denmark while at the same time creating an innovative framework for regional businesses developing new digital sollutions within the area of transport and logistics. Recommendation 3: Improve private capacity for innovation Recommendation 7: Secure mobillity and accessibility through digital infrastructure RECOMMENDATIONSFOCUS AREA

18. Preparatory analysis - approach 1. Analysis of North Denmark's primary structural and socioeconomic challenges. 2. Benchmark analysis of the general framework conditions for socioeconomic growth, imbedded in the region. 3. Analysis and assessment of the growth potential within specific “national stronghold industries” with a strong presence in the region. 4. Analysis of the presence and relevance of an industrial “growth layer” in North Denmark, as the primary target group in the new strategy.