Intro
This parallel session discussed how to create strategies for prosperous peripheral regions. The central question was: What remedies do we need in order to secure a balanced growth in the entire BSR? The session was hosted by four devoted regional actors; the Baltic Sea Solutions, the West Pomeranian Region, Region Skǻne and the BTV-Cooperation.
Main Messages
• There are three factors on which peripheral regions should construct their development strategies. 1) Local assets, 2) Networking, and 3) Innovation. -Danuta Hübner
• Instead of a purely supporting function, regional development policies should act more like catalysts that would dynamise the development in peripheral areas. - Danuta Hübner
• The demographic challenges of peripheral areas (e.g. an ageing population, the scarcity of labour and the prevalence of age-related diseases) need to be tackled now. This can be seen as an opportunity for peripheral regions to develop innovative products, services and technologies that can also be delivered to the metropolitan regions later.– Wolfgang Blank
• A closer interaction between innovation poles and actors in more remote regions is needed. – Hannes Manninen
Themes
The Changing Concept of Periphery
Commissioner for Regional Policy in the European Union, Danuta Hübner, underlined that innovation, technology, research, and education are the foundations of competitiveness, growth and sustainable jobs across Europe. According to Hübner, “the conceptual perception of the periphery has shaped out” and the transition to a knowledge-based economy brings new possibilities for the regions. Some important factors determine the success of regional development, such as ICT infrastructure, availability of educated workforce, level of cooperation of enterprises and research institutions leading to the emergence of innovation and competitive clusters. Technological progress and social and economic pressures coming from globalisation all have impact on the concept of peripherality, she argued, and acknowledged that support policies often have failed to fully address the challenges peripheral regions suffer from. “Today we need policies that function as dynamising instruments and not just purely supporting policies”, she said. Hübner stated that locally fostered development strategies and initiatives indeed play key roles in turning sluggish development trends into positive spirals of development.
Peripheral challenges
Managing Director of BioCon Valley GmbH, Wolfgang Blank, had three main messages to share with the audience. Firstly, he addressed the key challenge of demographical development (ageing and age-related diseases) in peripheral areas. He pointed out that these problems are not only faced by peripheral regions of the BSR, but will soon be faced by metropolitan regions too. Secondly, he expressed the hope that these dramatic challenges could be overcome by being innovative enough to develop products, services and technologies that also could be delivered to the metropolitan regions later. The field of life science, biotechnology and healthcare can make things possible and make life viable, he argued, when talking about their focus areas. Blank sees this as a great opportunity for peripheral regions to focus on. R&D and education in life science and biotechnology are areas that must be equally emphasised, he stated. Thirdly, Blank underlined that it would be vital for peripheral and metropolitan areas to work together on a structural basis and to enhance cooperation in the life science industry. He optimistically argued that maybe it is the peripheral regions that have the possibility to become competence hubs and metropolitan regions the competence satellites.
Managing Director of SIA Latvija Statoil, Baiba Rubess, talked about the business point of view of the peripheral challenges of the location of remote regions and the scarce labour force. She pointed out that there is a lack of man power and entrepreneurship in remote areas. Rubess believes that the most important thing for peripheral regions is to understand their people in amount, demographics, in education and knowledge, and the passion of what they do. “You can have the best ideas of the world, but if you don’t have the people to actually create them and move them further, they will not happen”. You have to have a strong vision for your peripheral area, she underlined.
Regional Development Strategies
Commissioner Hübner argued that there are three factors on which peripheral regions should construct their development strategies. 1) Local assets (e.g. unspoiled environment, local knowledge, problem solving skills etc.), 2) Networking and coordination or, in other words, the capacity to shape dynamic networks of regional and local branches of administrations, local bodies and partners, and strengthening networking inside and outside of the regions, and 3) Continuous innovation. In fact, Hübner emphasised that if the peripheral regions want to catch up, they must invest even more in innovation than the central areas. She believes that the combination of these factors will turn peripherality into an opportunity instead of a disadvantage.
Finnish Minister for Regional and Municipal Affairs, Hannes Manninen, pointed out that Finland is highly dependent on international trade and Finland’s remote location poses many challenges. The bases for their competitiveness are an open society, high standard education system and a pragmatic approach in behaviour and business, he advised. Investment in knowledge and innovation system, meaning education and R&D as well as closer cooperation between business and research institutions at the regional level are all important determinants of Finland’s success. Interestingly, he told the audience, the bases for the current regional innovation policy measures have been laid by creating a decentralised network of higher education institutions in regional centres throughout the country. Most importantly, he pointed out, the innovation policy does not only promote the development of the strongest regions and cities, but is equally important in less developed, remote regions. In Finland the national objective to maintain a network of vital centres throughout the country greatly depends on the success of regional innovation policy, he said. “A closer interaction between innovation poles and actors in more remote regions is needed!” Manninen referred to the Finnish program in Northern Finland, where a particular network of innovation centres has been developed. This ‘Multipolis’ model connects smaller innovation centres in sparsely populated areas. This model could be used as an example of development in peripheral areas, Manninen argued.
The question of how to create quality of life in the smaller peripheral areas was also discussed; creating an attracting environment is crucial in order to attract people. Commissioner Hübner pointed out that public investment is not enough. In fact, the involvement of the private sector is most vital. Thus, the question of how to attract private investments to the local and regional level is even more important, she stated. Minister Manninen brought up the example of Ireland and said that good incentives will make people return to their home regions.
EU’s role in peripheral development
Hübner talked about the ways the new European Regional Policy for 2007-13 can address the challenges of peripheral areas. She underlined that the new thematic strategic concentration of policy investment in the development of ICT and innovation, human capital and modern infrastructure is one way to help. She pointed out the importance of the newly proposed legal instrument, the European Grouping of Territorial Cooperation, which will allow more cross-border cooperation among the regions of the BSR than ever before. Another new instrument that can dynamise the local and regional strategies, the Regions for Economic Change, is a creation of a national and transnational platform for networking and sharing best practices.
Hübner stated that local strategies greatly benefit from international cooperation with other regions and municipalities. In fact, transnational cooperation and knowledge transfer can help regions to find the necessary inspiration and tools to successfully develop and implement their own strategic initiatives. She strongly believes that network creation and the exchange of best practices would not only be beneficial for the regions but for the entire EU. Even though there are many success stories of constructive cooperation, there is still room for new ideas and new cooperation constellations. Although peripheral regions cannot change their geographical location, they can change their comparative advantages. The Commissioner finally stated that whether the new regional policy of the EU will be an essential instrument in boosting innovation and competitiveness in the periphery or not depends on “all of us, all the actors that are involved in this policy”.
Minister Manninen reminded the audience that innovation policy is a key priority of Finland’s EU presidency.
Moderator, Research Fellow at Nordregio - Nordic Centre for Spatial Development, Tomas Hanell, summarised the session by stating that joining forces and networking can make even the smallest areas large. He added that personal enthusiasm and will need to be there from the policy side as well as the business side. Policies have to build not only the fundamental conditions, but they also need to become catalysts in the process of getting the local initiatives up and running. Finally, he underlined, more investments and businesses are needed in remote areas.
