1. Rural Clusters Torfi Jóhannesson Iceland
West Iceland Regional Development
(Ministry of Industries and Innovation)
Iceland

4. Area: sqkm
Population: inhabitants
Population growth: Slightly positive
Unemployment rate: 5%
Industries: Aluminium melting, fisheries, tourism, agriculutre
West Iceland

5. Geographical position; close to Reykjavik and the international airport in Keflavik and close to rich fishing grounds.
Two small higher educational institutes and few local research centres with 3-5 researchers.
Grundartangi industrial site and harbour.
Efficient fishing industry.
Good transport and IT infrastructure.
Growing tourism.
Strenghts

6. Declining and aging population, especially in the rural areas.
Reliance on relatively few large companies and sectors.
Demographic shift.
Cut-downs in health service and education
Weaknesses
-2,4%
-2,1%
+9,7%

7. Population development
Agricultural communities
Population development
Fishing communities

8. Since 2007: Focus on rural clusters and triple helix partnership
Support to clusters in tourism, building industry, fisheries, knowledge intensive sectors as well as local cross-sectoral partnership
Many attempts to stimulate the co-operation between the local knowledge centres and the businesses.
Innovation Policy

9. Hypothesis: ...form rural clusters, which benefit the region as whole
knowlede centres
busines leaders
local governments
...form rural clusters, which benefit the region as whole

10. case: tourism The first clusters emerged in 2004
By 2007 most of the larger companies in the region had joined clusters
three tourism clusters
knowledge cluster
industry cluster
...
case: tourism

11. rural challenges Weak universities Weak industry leadership
Weaklocal government
Much of the cluster work was carried by few industry leaders...

12. By 2009 many of the leading companies were bankrupt or busy keeping themselves alive
the 2008 crisis

13. National dept as % of GDP

14. Netto Imigration to Iceland

15. Currency rate – ISK vs EUR

16. Revival in Tourism A need analysis was conducted the autumn 2011.
18 companies in West Iceland were interviewed and compared to companies in other parts of Iceland.
The study confirmed a widespread need for increased knowledge building in the tourism industry.
Many new start-ups had no prior experience

17. Management
Marketing
Product development
Co-operation
Knowledge gaps

18. „we are opening 36 new „beds“; everything will be ready for the summer – I have the staff and we are finishing painting – we only have to find out how to get the guests ... advertise and such...“
„Is this rye bread baked locally? I don‘t know – this came in a plastic bag“
„We are thinking of having open during the winter – no we have never done that before, but then there have not been any guests...“
„We are only open during the summer – from, say, mid June to August – but then of course we close in July for a summer holiday...“
Examples of answers

19. are clusters the answer?
previous results
A need for long term external support.
A constant need for guidance towards „appropriate“ cluster activities.
Difficulties convincing the small universities to participate.
Small company base means that the same people are always dragging the wagon.
Is it a cluster?
are clusters the answer?

20. A need for long term external support.
A constant need for guidance towards „appropriate“ cluster activities.
Difficulties convincing the small universities to participate.
Small company base means that the same people are always dragging the wagon.
Is it a cluster?
let’s give them constant support!
let’s give them students
let’s leave the free riders out
never mind if it works

21. Micro clusters A handful of companies Carefully selected
Predefined period of time with the possibility for continuation
Micro clusters

22. Micro clusters - advantages
High degree of uniformity between partners
Possible to hand-pick partners based on interviews and individual assessment.
Easy to obtain trust within the group and get the partners to share company information.
Strong sense of commitment and possibility for long lasting bonds between the companies
Micro clusters - advantages

23. a pilot project 9-10 companies are interviewed for a pre-selection
a group of 4-7 companies is formed and the companies commit themselves to the co-operation
Common goals for the co- operation are set.
Individual and group consultations
Group meetings hosted by the participants
Group work with and without consultants
Evaluation and reporting
a pilot project

24. The restaurants, menues and the establisment of a kitchen handbook
Management and the planning of service
Methods for deciding pricing level and discounts
Envirionment and green management
content

25. Micro-cluster work-flow diagram
Administration
Leadership
Staff-issues
Quality control 6
Sustainability
Food/menu
Sustainable tourism 5
Cluster collaboration
Active networking
Co-operation & competition
Future work 4
Get-together
Micro-clusters and the advantages of local collaboration 3
Product developement
Packages
Local collaboration 2 1
Marketing
Service
Sale
Contracting
Tourism outside peak season

26. preliminaray results are positive and indicate we have a new tool for rural clusering

27. Does not regard itself as a cluster but development forum
Has all the necessary elements of a cluster
The present focus of the group is to increase the regional participation of the industry
They have the means and a good will but may need some guidance to channel the efforts.
The Regional Network

28. Scenario method
Method for strategic planning. It‘s a method to stimulate different perspectives or images of the future of a certain area to gain more insight into possible future development
Questionary sent to over 100 residents in Snæfellsnes
The main purpose to identify major driving forces in industry and living standards in Snæfellsnes

29. Key questions: How will the industry be like in Snæfellsnes in 2025?
Here we are, where do we want to go?
Define the most uncertain variables in the local environment/society and evaluate how the future will look like if these factors develop in different ways
Key questions:
Consequence – leiðing
Cause

30. Workshop I Introduction Potential driving forces Marine resources
Quota share in fisheries
Fisheries
Nature
Energy
Education and research
Consensus – Co-operation – Municipal amalgamation
Tourism
Human health
Environment
Two main driving forces were chosen to create future scenarios

31. Work shop II Participants were divided into four groups
Each group had to create one scenario and name their scenario with a characteristic name

34. Driving Forces Exploitation of marine resources Bulk production
Infrastructure of society
Diversified utilization
High education level
Research, cooperation
Services, creation, cohesion
Low education level, little cooperation
and services
Value added processing of marine
products
Diversity
Diversified utilization
Value added processing of marine
products
High education level
Research, cooperation
Services, creation, cohesion
Strong
Weak
Low education level, little cooperation
and services
Limited utilization
Limited utilization
Bulk production
Uniformity

35. Driving Forces Snæfellsnes Region of opportunities No man‘s land
Uniformity
Diversity
Strong Infrastructure of society Weak
Snæfellsnes
Region of opportunities
No man‘s land
Dreamland
Everybody‘s on their own
Expl. of marine resources

36. Dreamland In 2025 Snæfellsnes is a knowledge society
Main industries are tourism, fisheries, research and development, specialized health care services
Municipal amalgamation
Cooperation between municipalities, companies and individuals
Progress in the energy sector
Improvements in energy efficiency
Diverse culture - Cultural and Conference Center

37. Everybody‘s on their own
Low unemployment rate
Only one important industry – Fishing industry
Increased purchasing power and financial security among inhabitants
People are building new houses and buying new cars
Population is not growing
Low education level
Few jobs available for people with specialized education
In the area are few strong companies but little co-operation between them.
The society is really dependant on a main industry

38. Snæfellsnes Region of opportunities
Population increasing rapidly
High education level
R&D center
Growing tourism
Innovations in agriculture
Exciting job opportunities
Technical society
Diverse culture
Environmental friendly society
Good public transportations
Cooperation between municipalities, companies and individuals

39. No man‘s land Population decreased Little interest in co-operation
No mans‘s land
No man‘s land
Population decreased
Little interest in co-operation
High unemployment rate
The society is more dependent on public funds
Real estate prices go down
Low education level
Little environmental awareness
Opportunities for entrepreneurs

40. Timeline
What were the main factors leading to the “No man’s land” scenario?
Global warming – fish stocks collapse, higher unemployment rate, decreasing population, opportunities in unique nature
Municipalities forced to amalgamate, Opportunities for individuals to rise, Old fish factory renovated as a movie studio, more focus on art and culture, Current villages will become Leisure villages
offal

41. Timeline
What were the main factors leading to the “No man’s land” scenario?
Global warming – fish stocks collapse, higher unemployment rate, decreasing population, opportunities in unique nature
Municipalities forced to amalgamate, Opportunities for individuals to rise, Old fish factory renovated as a movie studio, more focus on art and culture, Current villages will become Leisure villages
offal

42. Seek alternatives to reduce energy cost in the region.
Work with local knowledge centres on diverse environmental issues
Assist local actors in marketing the region to increase tourism.
Examples of projects

43. Leadership in Tourism Homework
Using own company data as input and hypothesis testing
Distance learning
Weekly assignments
Course start
Get-to-gether
Intensive teaching bout at the University
Networking
Course end
Intensive teaching bout at the University
Group work
Evaluations

44. Development projects