1. 1 Jens Erik Lund, VINNOVA, Regions for Economic Change, Innovation through Regional Policy To be download from www.VINNOVA.se The Mega Regional Scope The Baltic Sea Region in general

2. 2 Jens Erik Lund, VINNOVA, Regions for Economic Change, Innovation through Regional Policy Real GDP Development Over Time Baltic Sea Region Countries, 1993 - 2004 Source: Groningen Growth and Development Centre and The Conference Board (2005), authors’ calculations Sorted by CAGR, 1993 – 2004: Real GDP, PPP-adjusted, 1993 = 100

3. 3 Jens Erik Lund, VINNOVA, Regions for Economic Change, Innovation through Regional Policy Prosperity Selected Regions and Countries Estonia Baltic Sea Region Central Europe Norway Denmark Poland Russia Lithuania Latvia Germany Real GDP per Capita 2004, PPP-adjusted, $-US (2002) Growth of Real GDP per Capita (PPP-adjusted), CAGR, 2000-2004 Source: EIU (2005), authors’ calculations EU-25 Iceland Finland Sweden USA India China Brazil Mexico S Korea Hungary Slovak Rep. Czech Rep. Slovenia Taiwan Japan Singapore Austria Other EU countries Baltic Sea Region Other countries

4. 4 Jens Erik Lund, VINNOVA, Regions for Economic Change, Innovation through Regional Policy Source: WTO (2005), Institute for Strategy and Competitiveness, author’s analysis. World Market Share, 2002 Change in World Market Share, 1997 - 2002 Cluster Composition Baltic Sea Region Export Performance by Cluster Marine Equipment Production Technology Forest Products Automotive Metal Manufacturing Petroleum/Chemicals Furniture Chemical Products Telecommunication Fishing Products BSR overall: +0.031% BSR overall: 5.55% Biopharmaceuticals Prefabricated Enclosures Heavy Machinery Power Generation Equipment Analytical Instruments Aerospace Vehicles & Defense Tobacco

5. 5 Jens Erik Lund, VINNOVA, Regions for Economic Change, Innovation through Regional Policy R&D Expenditures Selected Regions and Countries R&D Expenditures in % of GDP, 2003 Growth of R&D Investments, annual average growth rate, 1998-2003 Source: Eurostat (2005), DG Research (2005), World Bank KAM, authors’ calculations * data for China, Japan, Iceland and EU-25 from 2002 ** annual growth rates in China have exceeded 10%; total R&D expenditures, in real terms, have grown by almost one-fifth each year Other EU countries Baltic Sea Region Other countries Iceland Finland Sweden Baltic Sea Region Denmark USA Japan Norway Germany Austria Central Europe EU-25 Czech Rep. Slovenia Estonia Lithuania Latvia China** Poland Hungary Slovak Rep.

6. 6 Jens Erik Lund, VINNOVA, Regions for Economic Change, Innovation through Regional Policy Business Competitiveness Index Ranking of European Regions Over Time Central Europe Baltic Sea Region Source: Global Competitiveness Report (2005), author’s analysis. Rank 10 20 30 BCI – Overall Index NBE – Business Environment Quality COS – Company Sophistication

7. 7 Jens Erik Lund, VINNOVA, Regions for Economic Change, Innovation through Regional Policy Four 2004 initiatives on Cross-National Cooperation in the Baltic Sea Region With Baltc Development Forum, the launch of the Baltic Sea Initiative 2010 With Tekes and Innovation Norway, the launch of the Northern Cluster Alliance Launched the Northern Dimension Working Group on Innovation Policymakers’ network And was launched supported by

8. 8 Jens Erik Lund, VINNOVA, Regions for Economic Change, Innovation through Regional Policy Baltic Sea Initiative 2010 A mega regional focus on increased prosperity Cross-national promotion of a mage regional concept Benchmarks with peer regions Identify and develop potentials (innovation) A global proactive perspective Stakeholder involvement, bottom-up BSI Core Group of key stakeholders: Nordic Council of Ministers, chair, Innovation agencies, TEKES and VINNOVA, Scanbalt, Council of the Baltic Sea States’ Advisory Business Council, “Invest in” organisations of the Baltic Sea Region (BIPA), and Baltic Development Forum

9. 9 Jens Erik Lund, VINNOVA, Regions for Economic Change, Innovation through Regional Policy Northern Cluster Alliance A network of innovation structures with national operative responsibility for innovation in Germany, Poland, Lithuenia, Latvia, Estonia, Russia, Finland, Sweden, Norway, Iceland and Denmark Focus on Innovation System Performance and Facilitation of Cluster Development Based on experiences so for, in August 2005 the Network and the Nordic Council of Ministers decided to set up a joint Pro Inno Net application.

10. 10 Jens Erik Lund, VINNOVA, Regions for Economic Change, Innovation through Regional Policy BSR InnoNet (The Baltic Sea Region Pro Inno Net Project) Objectives: To establish a joint conceptual framework for innovation policy formation, evaluation and operational activities across national borders in the Baltic Sea Region. To establish one or more joint innovation programmes among partner countries in the Baltic Sea Region. To be one of the core European learning cases on trans-national development of innovation serving the renewed Lisbon Agenda. Partners: Denmark, Estonia, Finland, Germany, Iceland, Latvia, Lithuania, Norway, Poland, Sweden, The Nordic Council of Ministers and Nordic Innovation Centre Russia will participate in all work packages

11. 11 Jens Erik Lund, VINNOVA, Regions for Economic Change, Innovation through Regional Policy BSR InnoNet The Triple-Helix concept PractitionersPolicymakers Researchers

12. 12 Jens Erik Lund, VINNOVA, Regions for Economic Change, Innovation through Regional Policy Key is competition Build on national strongholds Identify excellence, best knowledge/models in innovation Employ cross-regional potentials in chains of valuecreation Key elements in cooperation: Framework setting, Measurement and Evaluation Multi-dimensional relations, anchored in commercial opportunities and knowledge (science) BSR InnoNet, Principles of design and cooperation The overall focus is competitiveness

13. 13 Jens Erik Lund, VINNOVA, Regions for Economic Change, Innovation through Regional Policy Policymakers’ network Benchmarks of countries of the Baltic Sea Region in the field of innovation policy (Cluster Development). Representatives from 11 national ministries from Denmark, Estonia, Finland, Germany, Iceland, Latvia, Lithuania, Norway, Poland, Russia and Sweden. Forum for policy learning.

14. 14 Jens Erik Lund, VINNOVA, Regions for Economic Change, Innovation through Regional Policy ScanBalt was launched supported by Nordic Innovation Centre Life Science in 11 Countries of the Baltic Sea Region ScanBalt, a Network of Networks: – a not for profit association established initiated co-funded by the Nordic Innovation Center. 11 Regional Tripe Helix Networks Members of ScanBalt: BioTop Berlin-Brandenburg, Biomedico Forum, Biomobile, Bioforum Oulu, BioTeam South, BioTurku, BioCon Valley, Estonian Biotechnology Association, MedCoast Scandinavia, Medicon Valley, Norgenta + individual companies, universities, hospitals, tech transfer organisations and public authorities

15. 15 Jens Erik Lund, VINNOVA, Regions for Economic Change, Innovation through Regional Policy ScanBalt Objectives: C reate corporate identity for ScanBalt BioRegion Develop visibility for ScanBalt BioRegion and the members of ScanBalt Attract financial, human and industrial resources Coordinate joint efforts in research, education, technology transfer, innovation and economic development Provide a platform to facilitate dialogue and collaboration between networks, academia, hospitals, public authorities, private companies and individuals Create a platform to facilitate dialogue with supra-national institutions

16. 16 Jens Erik Lund, VINNOVA, Regions for Economic Change, Innovation through Regional Policy ScanBalt Projects Mega regionaI identity and infrastructure Thematic projects ScanBalt Campus (Interreg 111B) ScanBalt Network of Networks (NIC) ScanBalt Competence Region (EU FP6) Boosting Baltic FP6 (EU FP6) Educational mobility (NIC) Economic Barriers for borderless Cooperation (NIC) Biotech, one click away (NIC) Communication in ScanBalt BioRegion  ScanBalt IP Knowledge Network (EU FP6)  ScanBalt Marine Biotech (NorFA) ScanBalt Clinical Research Network (NIC)  ScanBalt AgroBiotech (NorFA)  ScanBalt Stem Cell Network (NorFA)

17. 17 Jens Erik Lund, VINNOVA, Regions for Economic Change, Innovation through Regional Policy Established Knowledge Networks in ScanBalt Campus (hub coordinator in brackets) Molecular Diagnostics (University of Gdansk/Medical University of Gdansk) Regenerative Medicine (University of Rostock and BioCon Valley, Germany) Environmental Biotechnology (Göteborg University, Sweden) Informational Biology. (Åbo Akademi University, Finland) Process Analytical Technology (PAT) (Linköping University, Sweden) Entrepreneurship and Innovation ▪ Intellectual Property and Bio- entrepreneurship (Chalmers University, Göteborg, Sweden) ▪ Baltic Entrepreneurship Training (Baltic Entrepreneurship Centre, Rostock, Germany) ▪ Education and training of leaders for the life science industry of the future (Copenhagen Business School, Denmark)

18. 18 Jens Erik Lund, VINNOVA, Regions for Economic Change, Innovation through Regional Policy Big Fish – Small Fish Model ScanBalt Boston Singapore

19. 19 Jens Erik Lund, VINNOVA, Regions for Economic Change, Innovation through Regional Policy An European Persepctive Reflections from the Baltic Sea Region No single action or linear thinking will meet complexity of knowledge creation, diversity of regions or of commercialisation The key focus should not be on institution building but on facilitation of performance of excellence and relation building(processes) How do we maintain an innovative approach? How do we challenge dynamic interactions between commercial opportunities, academics and financial means? How do we maintain focus on excellent innovate performance – not only technologically but in all dimensions/sectors of society? How do we avoid one dimensional/linear/top-down concepts as they do not support facilitation and relation building (processes)? How do we improve pluralism and multi-dimensional thinking – and still stay focused on excellent performance? How do we employ cross-regional potentials in chains of valuecreation? A competitve performance model based on excellent knowledge and high quality process facilitation seems to offer interesting possibilities