The smart specialization development strategy for
POHJOIS-SAVO 2014–2017 Contents
THE REGION OF POHJOIS-SAVO Pohjois-Savo is the sixth largest region in Finland. It has approximately 250,000 inhabitants.
Educational services in the region are diversified and boast a high academic level.
Pohjois-Savo hosts a high concentration of technologically advanced international industrial concerns, which between them account for 40% of the region’s exports and fully 20% of the workforce. Machine and metal industries include specialized transport solutions (Profile Vehicles Ltd.), forestry machinery (Ponsse Plc) and mining equipment (Normet Ltd). The region also boasts several world leaders in energy technology (Andritz Ltd, Amec Foster Wheeler) and mechanical and chemical wood processing (Keitele Group, Lunawood Ltd and Stora Enso).
The areas of top expertise of the University of Eastern Finland are 1) health and well being, 2) forests and natural sciences and 3) new technologies and materials. The university has 15 000 students.
Also the SME sector is the cornerstone of the region’s economy. Pohjois-Savo region is home to over 200 exporting companies whose innovative products and services represent the cutting edge of their fields. Pohjois-Savo is the strongest dairy area in Finland, with about 70% of all agricultural sales income coming from dairy production. Milk is used to produce cheese and other milk based products at two modern facilities (Maitomaa and Valio). The berry fields of the region produce one third of Finland’s strawberries and a significant amount of blackcurrants. The food processing companies of Pohjois-Savo are also actively developing new and innovative products. Pohjois-Savo also has expertise in health technology and environmental technology.
The region also hosts the Savonia University of Applied Sciences whose R&D priorities are 1) welfare products, 2) energy, the environment and safety, 3) integrated product development and 4) agriculture and foods. Number of students is 6000. Both universities are experienced and trusted partners in international collaboration projects and are actively seeking new international partnerships.
REALISATION OF SMART SPECIALIZATION AS PART OF THE REGIONAL DEVELOPMENT PLAN The strengths of and challenges faced by the region of Pohjois-Savo are outlined in the four main lines of action (LOA): (1) regional financial rejuvenation, (2) a plentiful supply of skilled labour, (3) welfare services and general well being and also (4) a functional and accessible municipal structure. The Regional Council of Pohjois-Savo approved these lines of action in 2013.
Development priorities form a broad framework for regional development. The five leading areas of smart specialization fit into the regional financial rejuvenation stated in the first line of action. This regional financial rejuvenation is aimed mainly at companies’ development projects as well as their operating environment, technological innovation, and encouraging research into companies’ service operations and international competitively.
Lines of action 2 – 4 also support smart specialization
The first line of action focuses on forest industry (inc. mechanical wood processing, bioprocessing, wood construction), technology industry, medical cluster and food production and environmental technology. Lines of action 2-4 also support smart specialization. The second line of action relates to the availability of a skilled workforce, including training and education, extension of working lives and reduction of unemployment.
The third line of action focuses on the development of social and health services as well as improvement of health and lifestyle changes. This increases the availability of a future workforce. The fourth line of action improves regional infrastructure, including telecommunications connections. Project groupings of the lines of action for the period 2014-2017 are mostly funded from the European structural and innovation funds as well as international EU funding programmes. Public funding is used to help attract both national and international investors.
TARGETS FOR POPULATION AND EMPLOYMENT IN POHJOIS-SAVO 2014-2030 The realisation of smart specialization in Pohjois-Savo will also ensure the aims for population growth in the region. The aim for Pohjois-Savo is to have a population of 250 000 in 2030. To reach this goal, the region requires the main growth center of Kuopio to maintain a steady population growth greater than one percent. Population growth across the whole region turned positive in the year 2011. If Kuopio can maintain its growth rate of about 1000 a year and the rest of the region surpasses the predictions made by Statistics Finland then this aim of a population of 250 000 can be reached by the year 2030. If this level of population is reached then there would be a potential workforce of about 103 000, which is about 7000 less than in the year 2012. This reduction in workforce is explained by an ageing population. However, participation in the workforce would be required to rise to 74 percent.
An increase in the available workforce is achieved by both an influx of new inhabitants as well as in increase in workforce participation across all age ranges. This can be achieved by a reduction in unemployment and an increase in the overall ability to work. Population growth in Pohjois-Savo has followed the regional aims in the last few years. A good development has been that Statistics Finland’s predictions for the year 2014 exceeded an increase of 1000 inhabitants.
Table 1. Pohjois-Savo Region target population 2030, population 1990-2014 and Statistics Finland´s population projection
Persons
265000
260000
255000
Regional Development Plan´s population projection 250 000
Population in 2014 248 407
250000
Statistics Finland´s population projection 246 000
245000
2030
2028
2026
2024
2022
2020
2018
2016
2014
2012
2010
2008
2006
2004
2002
2000
1998
1996
1994
1992
1990
240000
Source: Statistics Finland, projection from 2012, Regional Development Plan for the Pohjois-Savo Region 2030/Regional Development Plan
Other industry = mining, foodstuff processing, textiles, chemical industry, furniture production, machine maintenance, energy, water and waste management
SMART SPECIALIZATION IN POHJOIS-SAVO
Based on a series of 170 interviews, Pohjois-Savo is particularly known for its expertise in five areas of innovation where knowledge, technical development and expertise can be used to promote enterprise regeneration and competitiveness. These areas of expertise are: wood and bioprocessing, machine and energy technology, foodstuffs, health clusters as well as water and air processes. The regional economy is at present dependent on machine and energy technology, wood processing and foodstuffs. The region also has a strong tradition of RDI expertise in these fields. It is essential for the region to perform in these fields and great effort is put into ensuring expertise, regeneration and a ready supply of skilled labour in them.
Health clusters and water and air processes are new rising fields of expertise which involve high level interdisciplinary research and development. Pohjois-Savo is willing to take the risks involved to develop these fields into new important sectors of a growing economy. The above figure shows these five areas of smart specialization and highlights the most important development aims. The next segment describes the current strengths of each field as well as development potential and strong players in each field.
CURRENT LEADERS IN INNOVATION AND THEIR DEVELOPMENT RESOURCES Wood and bio processing Mechanical wood processing in the region has managed to find new markets and develop new products as well as to increase the level of processing. Despite chemical wood processing (cellulose and paper) having a lower financial turnover than mechanical processing in the year 2010, it still remains an important industry in the region. Both chemical and mechanical wood processing can act as a growth media for wood based bioprocessing. The cellulose and paper industries have made substantial investment decisions during 2014, which are renewing and increasing cellulose production as well as bringing new opportunities for growth in cardboard production. Bioprocessing creates new opportunities to make use of biomass of which possibly the most important is wood. The use of pyrolysis can through a rapid high temperature process produce energy oil, while a slow and low temperature controlled pyrolysis process can be used to release numerous wood molecules. These can be utilised in multiple products, including coatings, medicines, pesticides, herbicides, and food additives. Pyrolysis also produces charcoal, which can either be utilised in it's raw from or processed into synthetic gas. A third product of pyrolysis is gas, which can be used for such purposes as heating. One potential bioprocessing plant is a cellulose factory, which can easily be modified for alternative production.
Bioprocessing and the development of new bio products is an interdisciplinary project which takes many years. The first commercial products (biofuels and coatings) should be coming onto the market in the next couple of years. One potential method of facilitating bioprocess development is to create bioprocessing projects supporting the wood processing companies which already have the required raw material and the financial resources required to run multiyear development projects. The forests of Pohjois-Savo contain plenty of wood. Currently only a portion of potential logging is utilised. Taking sustainable forest growth into account, harvesting of industrial wood could be increased by 36 % and energy wood by 163 %. The University of Eastern Finland (UEF) campus in Kuopio hosts physics and chemistry departments which are ideally suited to develop wood based molecular production methods. The departments of microbiology, toxicology, medical chemistry and pharmacology, and nutritional sciences are essential in discovering suitable uses for the molecular products of bioprocessing. Other academic institutes based in Pohjois-Savo (THL, VTT, MTT, Metla and Savonia) have much to contribute to the development of bioprocessing. Cooperation with other universities is also essential.
The machine industry The machine and energy technology industries have grown into the financially most important industries in Pohjois-Savo. The fields financial turnover excluding service and multiplying effects is 1,4 billion euros. In Finland and Europe the machine and engineering industries have been criticised for shifting production to cheaper countries in a similar way to the electronics industry. The leading machine industry concerns in Pohjois-Savo still have solid success and growth potential as long as basic resources (skilled labour, infrastructure and contacts) are maintained and the companies endeavour to continuously improve production and innovation. This renewal and profitable production strategy is known as Pohjois-Savo's counter-current strategy. A counter-current strategy requires new tools, innovative working methods and improvements of service provision. Increased production is created by automatization. Welding, machining, coating and assembly need to be automized. 3D printing needs to be utilized. Planning and manufacturing processes digitalisation is automated and an efficient network of design and manufacturing is essential. Production development management
(PDM), industry internet, enterprise resource planning (ERP), customer records management (CRM) and product life management (PLM) are vital for efficient product customization, conception and service providers. Customer service is becoming an increasingly important part of the industries financial turnover including schooling in products and maintenance. Efficient service provision also helps to speed up product and service innovation. The future will bring surprises. One area where surprises might be found is in rapid manufacturing technologies. The below figure presents the expertise of various organisations which aid companies’ development projects and which can assist in technology transfers. Savonia University of Applied Sciences (UAS) plays a leading role in networking and development work, as well as specialising in automatic welding and digital production methods. Alongside Savonia is a network of universities and UAS specializing in skills development and research. An important part of this network involves international cooperation. Institutes of vocational education and regional development associations are also involved in companies’ development projects.
Energy technology
Pohjois-Savo is an ideal environment for the development of energy technology and bioenergy. Leaders in the field of energy technology are driving forces in new technology and they have partnerships with world class research institutions. Pohjois-Savo has expertise in combustion particles and environmental impact assessment, materials and corrosion, measurement and control technology, development of automation and machinery design and engineering.
Two of the three world leaders in combustion energy plant manufacturing are based in Varkaus in Pohjois-Savo. Energy technology makes up a significant part of exports. In the last decade technology created in the region has expand to include geothermal heat, waste incineration, biogas and battery technology. Leading companies in the field are concentrating on planning, marketing, project delivery and maintenance. They are surrounded by a network of producing and support companies. A growing proportion of production has been transferred to developing energy markets e.g. the Far East. Pohjois-Savo has concentrated its efforts on development and plant design.
Savonia UAS trains energy technology engineers as well as machinery, tool and automation designers. The growth and marketing of companies in these fields needs to be encouraged. A dedicated energy research center is being built in Varkaus by Savonia UAS in cooperation with the Technical University of Lappeenranta, UEF, Navitas Development Ltd and various private companies. The waste incineration power plant being built in Leppävirta will also be an industrial scale research environment.
Leading companies have developed technology for the burning of bio based energy sources. Energy markets are once again in flux, with an uncertain future to be determined by new as yet undiscovered energy sources, various sources of renewable energy and the ongoing competition between cheap coal, natural gas and nuclear energy in many countries. However, in countries with a plentiful source of bio energy reserves such as Finland, there is a strong believe in the future of renewable energy. Savonia UAS UEF
Development environment
Particle research and environmental information, material research and coatings
Vocational education
Energy technique training, automative techniques, machine techniques
Savonia’s research lab & Navitas & universities, Private enterprise and other actors • The waste incineration plant as a development environment
Engineering training, process managing training
RESOURCES FOR THE DEVELOPMENT OF
THE ENERGY SECTOR energy techniques, optical sensors, new measuring applications
The Technical Research Center of Finland (VTT)
Energy techniques, processing techniques, production economics
Lappeenranta Technical University
Foster Wheeler, Andritz, MY Power, Warkaus Works, SSG Sahala, Honeywell, European Batteries, Gebwell, HögforGST, OKE, GFN, Store Enso, UPM, Ekovoimala, Kuopion Energia, Savon Voima, sawmills, wood processing, energy companies
Private enterprise
• Planning, automative, programming and installation companies
Foodstuffs Pohjois-Savo is the strongest dairy region in Finland. Alongside milk production and processing, the region also has a high profile for berry and specialist plant production, juice and related drinks production and a fairly newcomer, fish processing. The development of foodstuff clusters in Pohjois-Savo is based on a comprehensive education, research and innovation network. Vocational education facilities have a base of strong agricultural entrepreneurship and production processes development. Training and development highlights increased productivity as well as animal health and welfare. Savonia UAS is responsible for developing dairy production as well as issues relating to the whole food chain. Issues of the environment and energy and their comprehensive management are showing huge potential. This whole process involves a wide and close knit innovative network including MTT, VTT and UEF. Milk proteins, berries, plants and fish are sources of healthy food. Making use of their health benefits involve research into nutrition, foodstuffs and medicine which still have a lot to give.
UEF's strengths in the area of food are related to nutrition sciences and foodstuff development. UEF is strengthening and widening its cooperation with the foodstuff industry. This also applies to other research institutes. Water usage and runoff from the food industry is high, which means that cooperation between different research institutions is vital (VTT, GTK, UEF, THL and UAS) to develop knowledge about water usage and technology. Interdisciplinary exchange of knowledge and technology will play a growing role in developing the competitiveness of food processing. This will assist in improved water, energy and nutrient use; improve measurement and control systems, increase health benefits and food safety, as well as creating new ideas for product development. Local development groups have their own profiles within the region based on their own strong food product and processing development and experience. Yl채-Savo is known for milk production, Sis채-Savo for berries, and Varkaus for fish processing.
NEW RISING FIELDS AND RELATED DEVELOPMENT RESOURCES Health clusters Medicine is one of the strongest disciplines among Kuopio's research and education institutes. Internationally cutting edge medical sciences in Kuopio are central nervous system diseases, heart and blood vessel diseases, diabetes, cancer and muscular skeletal diseases. Technological strengths in the field are imaging, human measuring and healthcare related IT. Areas of business growth have been research and medicine development as well as licensing agreements and sales of service. Kuopio’s strengths also include assessment of nutritional health benefits, and healthy nutritious foodstuff development. International markets for treatments and medicines as well as healthy and safe foodstuffs are growing fast. Kuopio also undertakes significant environmental health impact assessments and prevention work. Equipment and methodology for the detection prevention and eradication of environmental health problems is an international growth area.
Health clusters in Kuopio cover the entire chain medical research development: medicinal and pharmaceutical vocational education, treatment technology, nursing sciences, life sciences, genetic technology and chemistry, medical research, ethical animal research, treatment trials in the university hospital, medicine production including clean rooms for biomedicine production as well as medicine control and official permit regulation and research into the effects of health care procedures. Health clusters in Kuopio and their development resources are indicated in the below figure. Alongside the presented resources, skills are being improved through numerous national and international projects.
Water and air In Pohjois-Savo, water and air knowledge and skills are concentrated around Kuopio where there is a grouping of versatile interdisciplinary organisations and enterprises. Water and air skills are centered on process risk management, efficiency and clean development, environmental safety and human related health issues. Critically, areas lacking protection are rapidly industrialising countries as well as growing energy production and control of traffic emissions. A need for water technology is therefore growing both in Finland and worldwide. Industrially, closed water circulation systems must be increased, which demands new water processes. A topical problem is mine waste water and mineral refining waste water. Alongside industrial concerns, there is an increasing global shortage of clean drinking water. The figure below presents water specialists in Kuopio. Traditional strengths of the water profession have been water hygiene safety or water micro-biology (THL and UEF), water chemistry (UEF), ground water and mining related water issues (GTK) as well as water purification and monitoring skills (Savonia). What is still lacking is development of real time water distribution management. In Kuopio, this is being solved by the development of new measuring and analytical technology as well as adapting industrial solutions to the needs of the water profession. Kuopio has a large skills base for the improvement of water safety.
A special strength of the water profession in Kuopio is skills in mineral related water management, including mineral extraction and processing research and an understanding of mineral dissolution in natural waters. The environmental safety of mining, process circulation and water purification technologies are at the core of water technology development. An interdisciplinary scientific community offers new possibilities for the development of analysis, measurement and purification technology. Measurement, modelling, process regulation and purification have the opportunity to make major advances using new methods. The chemical research professions have to find new methods for, among other issues, better control of heavy metals in industry, especially the mining industry. The Eastern Finland GTK campus situated in Kuopio has responsibility for matters of the environment and water. In this work, GTK's mining environmental research group is supported by its subsidiary in Outokumpu, the MINTEK mine and mineral laboratory. Meanwhile, UEF is emphasising water based biochemical research and together with THL has a strong base on which to assess water related health and environmental risks. In 2014 the UEF created a water professorship, whose area of expertise is water chemistry research including in the mining industry.
Air research in Kuopio is a similar interdisciplinary environment to water research and technology: involving various departments of UEF, the Finnish Meteorological Institute, VTT, THL and private enterprise. Research is centered upon particle emissions from energy production, emissions from the specific area of bioenergy and new energy sources as well as the health effects of nanoparticle emissions from energy production. The group concentrating on research into the health effects of airborne emissions in Kuopio is the strongest in Finland and is also highly regarded internationally. THL's internal air quality is the leader in its fields on moisture damage and its underlying health effects in Finland and also has a high international profile.
Research conducted by UEF's department of pharmacology has discovered new openings in mine water processing, especially new more effective water purification chemicals for to deal with heavy metals. The UEF department of physics and VTT's new measuring and modelling systems, new chemicals, and Savonia's new purification technology and readiness to pilot new innovations will improve water technology in the mining and mineral industries, in heavy industry, as well as municipal water and waste water purification plants. Development of measuring and control technology is also producing commercial products. Water research is being undertaken in many laboratories, with the largest being Savonia, GTK and THL's water and waste water laboratories and mobile research and purification stations, THL and UEF's microbiology, chemistry and pharmacological laboratories, commercial research laboratories and the MINTEC mineral laboratory. There are currently over 40 researchers and experts working in these departments and that number is growing.
The strongest areas of scientific research into air are aerosol and small particle research, environmental toxicology, aerosol physics, environmental epidemiology and environmental microbiology. There are several large groups conducting air research in Kuopio. About twenty companies are involved in a project funded by Tekes. Important segments of the research involve emissions from energy and heat production, as well as research into moisture damage in buildings and assessment of health issues. Researchers are involved in the development of combustion processes as well as air filtration and techniques for the detection of microbial damage.
There is no similar concentration of expertise in the whole of Finland, and this gives regional actors unique potential to create new innovations, new methods and new business possibilities in the fields of water and mine safety. This expertise can also be adapted to other water intense industries such as the cellulose and paper industries and the chemical industry. UEF environmental sciences
Savonia UAS
Combustion technology, emissions from energy production (bioenergy, fossil fuels), emissions control, measuring and monitoring, health effects, nano materials, internal air
Finnish Meteorological Institute Kuopio campus
Energy technology Climate change, modelling of changing emissions and emission distribution
RESOURCES FOR THE DEVELOPMENT OF
THE AIR SKILLS Health effects of exposure, internal air, environmental risks, environmental health
National Institute for Health and Welfare (THL)
Development of measuring techniques
The Technical Research Center of Finland (VTT)
SYMO, Microbioni, Venacontra, UPM, Forter Wheeler, Andritz, Metso, Fortum, impact of biogenic Green Fuel Nordic emissions
Private enterprise
UEF physics
Picture: Mauri Leivo
Regional Council of Pohjois-Savo Sep채nkatu 1, P.O.Box 247 FI-70101 KUOPIO, Finland Tel. +358 17 550 1400 www.pohjois-savo.fi
Picture: Soile Nevalainen