Northern Sweden

Development redefined

Europaforum Northern Sweden and the County administrations in Northern Sweden in collaboration with EuroFutures AB, June 2003

Northern Sweden is uniqueThe four northernmost counties in Sweden (Västernorrland, Jämtland, Norrbotten and Västerbotten ) included in the NUTS II regions Mellersta Norrland and Övre Norrland are a uniquely sparsely populated area. This area, Northern Sweden, covers approximately 55 per cent of Sweden’s area, but has only 10 per cent of Sweden’s population. Northern Sweden has a mere 883,000 inhabitants but covers an area greater than Greece and Portugal combined. This sparseness and the peripheral location in Europe bring certain competitive disadvantages and difficulties.

• To individuals, this sparseness means limited availability of work and educational opportunities, and of public and commercial services.

• To companies, the sparseness means that the home market is greatly limited and that contacts and exchanges with larger markets and areas with greater population density in other parts of Europe entail high costs.

• To public bodies, the sparseness means that the costs of providing services are high in practically every area, reckoned per inhabitant : for schools, elderly care, public transport etc.

Neither do the sparse areas benefit from relative nearness to any large towns. Northern Sweden has no large towns. In Northern Sweden, the communities are generally small and dispersed. Southern Sweden, seemingly sparsely populated from a European perspective, when compared with Northern Sweden seems an urbanised, densely-populated area.

Northern Sweden is going through a restructuring process, in which new opportunities are being identified and developed in order to turn the negative trend. Northern Sweden therefore needs continued support for its restructuring work. The unique conditions prevailing in Northern Sweden should be noted in the European Cohesion Policy. We expand on this and argue in its favour in four sections as follows:A. The appearance of prosperity B. Extreme sparsenessC. Consequences of sparseness to companies, individuals and public bodiesD. Will to develop - projects to show that it is possible

Southern Sweden Northern Sweden

Northern Sweden has a per capita GRP which does not reflect the true situation in the region. The operating surplus within the extensive capital-intensive operations is channelled into other regions and few new jobs are created. In the period 1995-2000, Northern Sweden was among the regions in the EU that showed the highest relative GRP decline.

Compared with the national average in Sweden, a much larger proportion of Northern Sweden’s GRP is generated by industry, while the private service sector has a correspondingly lower share of the GRP than is the case in Sweden as a whole. Structural problems remain and give rise to negative growth figures.

A. The appearance of prosperity

GRP per capitaGRP per capita is an indicator that carries considerable weight in designing regional policy in the EU. GRP per capita, however, is a blunt instrument. Regions with a large proportion of capital-intensive operations in general have a high GRP per capita, which is far from the same thing as high regional income, steady growth and low unemployment. On the contrary, it is common for capital-intensive operations through continual rationalisation drives to reduce their workforce, while at the same time practically the entire operating surplus can go to other regions. ”Increased regional economic growth, expressed as a growing Gross Regional Product (GRP), does not necessarily mean either that employment in the region grows, nor that purchasing power has improved.” Regional policy evaluation, SOU 2000:36

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Change in GDP/per capita (PPS), 1995-2000

Northern Sweden

Both as regards per capita GRP and per capita wage packet, Northern Sweden is below the national average. In addition, both measurements of income show a clear downward trend, and each year more ground is lost to the rest of the country.

Both the total taxable income per person and the disposable income per person in Northern Sweden lie somewhat closer to the national average, because transfers are included in these figures.

The dependence on income insurance systems for day-to-day support is steadily increasing in Northern Sweden. This is a direct consequence of the region’s structural problems and in time will bring about an unsustainable situation.

In the final analysis, what counts is work that provides a livelihood. Rationalisations in traditional industry must be compensated by growth in the private service industries. The old works culture and industrial tradition must be replaced by new knowledge-based enterprises. This is a process that requires both time and money.

Alternative income measuring

“There is good reason to believe that aggregate wage data has considerable advantages over available GRP measurements as indicators of regional economic growth”Nilsson, R., Ekström, C. & Lagnerö, M., 2002: Regional economic growth in Sweden 1986-2001. Vinnova in co-operation with Statistics Sweden.

Per capita income development in North Sweden

Sweden=100%

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Income from employment - before tax

Total wages

Purchase power

In general, the rate of employment is high in Sweden, since traditionally, a large proportion of women are gainfully employed. Thus Northern Sweden also ranks high in a comparison with EU15/25 in the proportion of the population of productive age that is in gainful employment. Looking at the proportion of the whole population in employment, the difference between Northern Sweden and EU15/25 is much smaller. If one also includes the large proportion of persons in Northern Sweden in labour market programmes (whom are counted as being employed), then the difference is probably marginal.

Northern Sweden is a depopulation area. Over the last seven years, the region has lost almost four per cent of its population. This drain is most noticeable in the productive age group, where one must observe a growing gap between the employable population and the proportion of old and children.

The considerably ageing population is a problem in the whole of the EU. However, few regions are in such a dramatic situation as Northern Sweden, which is 10 years ahead of EU15/25 in this problematic development. To simultaneously experience structural problems, low growth figures and an increasing support burden puts the region in an disadvantageous position.

Growing support burdenIn Northern Sweden the employable population is diminishing faster than the population overall. Rapid and extensive out-migration of people of productive age (15-64 years) is leading to a growing support burden to be carried by the employed people who remain.

Population trend in Northern Sweden1995=100%

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As seen on the map, Northern Scandinavia in its entirety is the most sparsely populated area in EU25. The distance from Northern Sweden to more densely populated areas – primarily the Stockholm region – is also the longest in Europe. The nearest major towns are Oslo, Stockholm and Helsinki

If we compare single regions at NUTS II level, we find that the two North Swedish regions have the lowest population density in the whole of Europe (EU 25) at 3.3 and 5.4 inhabitants per square kilometre respectively. This is followed by Scotland at 9.3 inhabitants per square kilometre. The EU 25 overall average is 119 inhabitants per square kilometre.

The sparse population in Northern Sweden was a powerful argument for Sweden originally to receive aid from the Structural Funds. Since Sweden joined the EU and up to today, the population in the regions in question has diminished by 39,000 inhabitants (equal to about 4 per cent) and the problem of sparseness has thereby worsened.

B. Extreme sparseness

Sparseness worseningA low population density creates big disadvantages for people, companies and organisations operating in Northern Sweden. A description is given here of the concrete negative consequences of sparseness. The first question is of course: how sparsely populated in fact is Northern Sweden, compared to the rest of Europe?

Northern Sweden

The population density in Northern Sweden’s inland municipalities in general is less than two (2!) inhabitants per square kilometre, while for most of the coastal municipalities the figures are around or over 10. This underlines the dual character of Northern Sweden. Along the coast, development has been relatively stable – largely thanks to major public sector investments in regional colleges and other institutions – at the same time as the inland has been struggling with structural problems and accelerating depopulation.

The environment that is characteristic for the interior of Northern Sweden, with extreme sparseness and practically no large communities, creates particularly difficult circumstances for all types of enterprise and for individuals. However, ingenuity grows in adversity and new solutions to everyday problems are taking shape. The Structural Funds have played a vital role in this work. Several of the inland municipalities have managed to turn an extreme downward trend into more promising development. However, there is still a distinct lack of resilience and much remains to be done before the whole of Northern Sweden’s inland can be said to stand on its own feet and have control over its own development.

The coast municipalities also play an important role in this development work. The major towns in particular constitute important regional growth centres that offer tertiary education, specialised business services etc., but also a portal on the world. The interaction between coast and inland is vital to Northern Sweden’s development.

Intraregional differencesNorthern Sweden is not a homogenous region, either as regards sparseness or development. While the coast has relatively steady development, in particular around the dominant towns, the inland areas are characterised by rapid depopulation.

Population 1990 Population 2002 % ChangeCoast* 488 630 494 747 1%Interior 423 954 386 381 -9%

*Marked by yellow line on map

Northern Sweden covers approximately 55 per cent of Sweden’s total area, but has only 10 per cent of Sweden’s population. Even in comparison with the rest of Sweden the north is extremely sparsely populated – 3.9 inhabitants per square kilometre, compared to Southern Sweden’s 36 inhabitants per square kilometre. Population density is then almost 10 times greater in Southern Sweden.

In a comparison with other European states, the sparseness is even more marked. Northern Sweden is larger than Portugal, the Netherlands and Belgium together, but has less than three per cent of their aggregate population!

One interesting exercise to illustrate the sparseness of Northern Sweden is to imagine that some other states in Europe had the same population density (3.9 inhabitants per square kilometre). The number of inhabitants in some Member States would then be :

Great Britain 853,000 inhabitantsGreat Britain 853,000 inhabitants

BelgiumBelgium 107,000 inhabitants 107,000 inhabitants

Greece Greece 461,000 inhabitants 461,000 inhabitants

FranceFrance 2,121,600 inhabitants 2,121,600 inhabitants

Germany Germany 1,392,000 inhabitants 1,392,000 inhabitants

A distinctive region

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North Sweden

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Long distances

Northern Sweden is not simply a sparse region. The region is also far form the densely-populated, expansive regions. The distance from Northern Sweden to the capital, Stockholm, is greater than the distance many EU citizens have to Brussels.

• The major population centres in central parts of the EU mean that the difference compared to Northern Sweden is considerable as regards the number of people that can be reached within a given travelling time. In large areas of the EU, ten times more people than in Northern Sweden can be reached by three hours’ travel. Fewer than 5 million inhabitants can be reached from parts of Northern Sweden, compared with over 60 million from large central areas of the EU.

• The long distance and the home region’s sparseness make the situation in Northern Sweden comparable with that on many peripheral islands in the EU, i.e. the home market is extremely limited and passenger transport to the world around for reasons of duration, must largely be by air.

Northern SwedenAccessibility

An entrepreneur in Gällivare travelling to attend an afternoon meeting in London can serve to exemplify the difficulties caused by the long distance. In order to arrive in time for the meeting, which begins at 13.00, the flight must leave at 06.15 in the morning of day 1. The trip back from London begins on day 1 at 17.50. Upon landing in Stockholm at 21.15, there are no more connecting flights to Gällivare. The business leader’s trip home therefore must continue the morning of day 2 and he/she arrives home more than twenty-four hours after leaving home.

The air ticket for the above trip costs about SEK 12,000 (over 1,300 euro) and to this must be added the cost in working hours spent on the trip and for the hotel night. Trips from Northern Sweden to big towns in central parts of the EU often require two overnight stays even though the actual visit is brief.

The long distances and sparseness also make goods transports time-consuming and expensive. Companies in Northern Sweden are required to pay considerably more than their competitors for their goods to reach central parts of the EU market.

C. Consequences of sparseness

High costs of exchangesSparseness and the peripheral location in the EU bring a number of consequences for those operating in Northern Sweden. Geographical transaction costs, which have attracted increasing attention in recent years, are a key concept. Put simply, they are added costs that arise when companies do business or co-operate with players located in a different region. The costs increase with the distance, not only travel and freight costs: everything becomes more expensive when trade and co-operation take place over long distances. This is highly patently obvious in Northern Sweden.

Gällivare

Stockholm

London

Meeting 1 pm. to 3 pm.

Start at6.15 am, day 1

Back again11.25 am onday 2

8.25 am.

5.50 pm.

11.00 am.

9.15 pm.

9.15 am.

9.20 am.

Example: going from Gällivare Example: going from Gällivare

to a 2to a 2--hourhour meeting in Londonmeeting in London

Towns form nodes in labour market regions and commuting takes place from the surroundings. A town’s labour market region generally includes the areas within a commuting time of up to one hour. In Northern Sweden’s 30 labour market regions the towns and the workforce are both small. Several regions consist of a single town/community. In an area corresponding to more than two-thirds of Italy’s, there are only 0.35 million working people. In Italy there are 21.3 million working people.

”Of the total increase in payrolls between 1986 and 2001, the major part has occurred on local labour markets with a population exceeding 100,000, and in particular the local labour markets in Stockholm, Malmö and Gothenburg, which over this period have enjoyed more than 60 per cent of the total payroll increase. Even in the question of the growth expressed as a percentage, strong local labour markets lead developments.” (Nilsson, R., Ekström, C. & Lagnerö, M., a.a. 2002)

Northern Sweden’s labour market regions are not simply small, they are in many cases also vulnerable through their dependence on one or a few big employers. Unemployment in Northern Sweden has increased drastically over the period 1991-2001, from about 4 per cent to 7 per cent. At the same time in the EU (15) unemployment has fallen somewhat. In addition to open unemployment, Northern Sweden has a very large number of people in labour market programmes.

Small labour market regionsStudies show that the size of the labour market has proven to be the variable that above all others explains difference in a region’s development. Large and diversified labour market regions have structural advantages compared with smaller labour market regions. This applies both to vulnerability to changes in specific industries and companies and to the match between demand and supply of workforce.

Of the total 99 cluster formations identified in Sweden, only 5 are in Northern Sweden (Lindqvist, G., Malmberg, A. & Sölvell, Ö., CIND, Uppsala University 2003, in collaboration with Porter, M.E., ISC, Harvard Business School). Sparseness and long distances make it very difficult to achieve the agglomeration effects required to be a force on an international market.

Despite the decentralisation of higher education , the proportion of employees with tertiary education in the private sector in Northern Sweden still lags behind the rest of the country. It is true that an increasing proportion of Northern Sweden’s young people apply to regional colleges, but a large number, upon completing their education, then move on to the large labour markets in Southern Sweden. Northern Sweden has therefore acquired the role of exporter of educated, ready-trained workforce to the major city regions.

The development of the business sector in Northern Sweden towards a more sophisticated knowledge-based economy demands major investments, but will eventually lead to a good return in the form of increased employment and higher incomes.

Higher education in private sectorSweden=100%

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Competitive disadvantages Few strong clusters are formed in an environment where the number of players in many cases can be counted on the fingers of one hand and where the qualified workforce moves on to more favoured regions. Competitive disadvantages mean that Northern Sweden finds it hard both to compete for new ventures and to keep its own companies in the region.

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Northern Sweden Southern Sweden

The total cost per inhabitant of public services in Northern Sweden is 13 per cent above the national average, while municipalities in Sweden with the same population density as EU25 have a cost 10 per cent below the average.

The cost of the physical infrastructure rises drastically in proportion to sparseness. In Northern Sweden it is necessary to invest almost 40 per cent more per inhabitant on infrastructure than the national average, and nearly 60 per cent more than in the Swedish municipalities with a population density comparable with EU25.

The high cost level is also evident in elderly care, where the trend towards a greatly ageing population is already burdening Northern Sweden’s municipalities to a considerably higher degree than Sweden on the whole.

Only costs for childcare are somewhat lower in Northern Sweden than in the rest of the country, but this is primarily due to a lower proportion of children in the age group 0-6 and higher unemployment and thereby a higher proportion of parents in the home.

Additional costs for public services

A plain consequence of sparseness is that the costs of public services are considerably higher per inhabitant in Northern Sweden than for Sweden as a whole and compared with municipalities having the same population density as EU25.

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*”Swedish EU-25” refers to values for municipalities in Sweden with a population density corresponding to the EU-25 average.

In the period from 1995 to 1999, about 3,500 projects were carried out in Northern Sweden within the framework of the geographical objective programmes (Objective 2, Objective 5b and Objective 6). 15,000 new jobs were created and over 5,000 new companies were started, and 10,000 existing jobs were saved. These encouraging results were achieved with a 32 per cent contribution from the EU (Structural Funds), 44 per cent from public financiers in Sweden and 24 per cent from private co-financiers.

The evaluation stresses that the strategic choices made in the SPD for the period in question had a reasonable aim to meet the demands set for handling the problems in the area. However, the existing structural problems had developed over a number of years and the actions that could be implemented through a relatively limited programme were not sufficient to achieve the desired changes.

Project financing 1995-1999

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EU Public Private

D. Will to developThe importance of Structural FundsThe EU cohesion policy has been extremely significant to the development of Northern Sweden after Sweden’s joining the EU. Increased knowledge and awareness of the driving forces behind development in the region, in combination with the development of methods and new work modes in partnerships, and effective use of the development capital received through the structural funds have considerable added value, not merely for Northern Sweden but also for the entire Union.

The Structural Funds are of great importance to the future of Northern Sweden. There are a large number of forces in the region that wish to accomplish changes, which can be seen not least through all the activities carried out during the first programme period. Without the financial backing that the Structural Funds provide, however, the opportunities are few. The work is in no way complete, and the need for input is still very great.

Northern Sweden activities 1995-1999

Number of projects ~3,500New jobs >15,000Jobs saved >10,000New companies >5,000

Objective 1 2000-2006

Northern Sweden is covered by two Objective 1 programmes inthe present programming period 2000-2006. Objective 1 NorraNorrland and Objective 1 Södra skogslänen. The totalcontribution of EU funding in these programmes are EUR 750million.

• Strategies and control have been improved in the Objective 1 programmes in Northern Sweden during the period 2000–2006. Experience of the Objective 6 programme forms the basis for setting clearer priorities, which in larger elements contribute to structural transition in Northern Sweden.

• The fundamental aim for Northern Sweden is to develop a competitive infrastructure for sustainable industry with consideration given to the highly specific conditions that characterise the region – extreme demographic sparseness, long distances to markets both outside and within the region and a cold climate.

• The following part will present a number of examples of strategies, priorities and strategic development projects partly funded by EU:s structural funds. The projects are considered contributing to an added value for Northern Sweden and the European Union.

Regions eligible under Objective 1

Transitional support under Objective 1

Special programme to assist coastal areas of Sweden

Red areas = Regions eligible under Objective 1Purple areas = Transitional support under Objective 1Dark pruple areas: Special programme to assist coastal areas of Sweden Blue areas: Obective 2

EuropaForum Northern Sweden in thiscontext stresses the followingstrategies and priorities, which are ofspecial importance for development in Northern Sweden.

• The basic industries that depend on a plentiful supply of wood and minerals develop among other ways through increased knowledge intensity and product development. Innovation skills and collaboration in clusters create added competitiveness and attractiveness.

• The travel and tourism industries benefit from for example destination development in partnerships, improved marketing and packaging, and improved infrastructure.

• New industries, e.g. biotechnology and IT, benefit from increased collaboration between research, business and the community. By on the one hand focusing on the development of regional and local infrastructure for citizens, regarding e.g. e-health and distributed education, and on the other hand stimulating business development through product development and marketing for example IT applications, added value is created for both citizens and business. Car testing operations, utilising the unique conditions provided in Northern Sweden, represent another example of a new industry developed out of the conditions existing in the region.

• Innovative solutions have been developed to provide services to citizens, both through partnerships, collaboration and local initiatives, and through the support of IT infrastructure and applications.

• Increased ability to participate in, and increased knowledge and awareness of European co–operation. This applies both to participation in the dialogue on important future issues regarding European development and conditions for Northern Sweden, and to collaboration with other regions in Europe in project form or other forms.

Base industriesBase industries

Northern Sweden’s business structure is largely built aroundtraditional base industries, e.g. the forest industry, miningindustry and engineering industry. This is natural since theregion has abundant supplies of wood and minerals. Astrategically important prerequisite for Northern Sweden, metthrough EU Structural Funds, is the creation of conditions forpositive development of the base industries, among othermeasures through increased knowledge intensity, newapplications and product development. The capacity forinnovation and collaboration in clusters improvecompetitiveness and attractiveness. Here follow three examplesof projects that are partly funded by the Structural Funds.

Research and pilot plant for bioethanol,Research and pilot plant for bioethanol,

Örnsköldsvik, Umeå and SkellefteåÖrnsköldsvik, Umeå and Skellefteå

• The background of the project, the research and pilot plant for bio-ethanol is the need to reduce dependence on fossil fuels by introducing renewable fuels. Cellulose-based ethanol is an important factor in the development of alternative fuels in the transport sector.

 • The purpose of the project is to construct a research and pilot plant and

to develop the technology to produce ethanol and lignin, principally using coniferous wood as raw material. The pilot plant will function as a Swedish and international research and development unit for continued process optimisation and for the development of complementary and alternative process solutions, new equipment and testing of raw materials. Today there is no pilot plant where the whole process can be tested with recycling features, either in Sweden or abroad. The plant is unique in the world and forms a base for Swedish development and international contacts. Operations are expected to result in a research centre for ethanol development in Europe and to result in 15 permanent jobs, eventually also leading to research activities and spin-offs in industry and universities /colleges.

 • The project has a total budget of EUR 7,2 million, with part-funding

from the EU Regional Fund of EUR 1,6 million via Objective 1 Södra Skogslänen and is carried out in direct collaboration with an R&D project funded from Objective 1 Norra Norrland.

Georange, MalåGeorange, Malå

• The aim of Project Georange is, based on natural resources in the form of ores, minerals and related operations, successfully to contribute towards structurally developing the minerals and mining sector in Northern Sweden from its dependence on a small number of production sectors to a raised skills level and the capacity to provide qualified services.

• Sweden is the predominant mining nation in Europe and ranks number one or two in gold, silver, copper, lead zinc and iron ore in the EU area. Sweden’s share of the EU area’s production of iron ore is 94%, of lead 54%, of silver 64% and of copper 31% (1998). The development potential in the mining industry cannot be fully realised, due among other things to difficulties in recruiting key personnel. Northern Sweden – the ore district with perhaps the best development potential in Europe - is to become a centre for geoscientific teaching and research. The idea is to use modern technology to develop an industry which is one of the cornerstones in the Swedish inland economy and which must be regarded as a considerable added value to the entire Union.

 • This is the background to the initiative by the municipality of Malå to

raise and broaden skills via the project Georange. This is to be done partly by growth in knowledge, skills and service sectors. The project has a total budget of almost EUR 12 million, of which just over EUR 5,7 million is from the EU Regional and Social Funds via Objective 1 Norra Norrland.

Tools and product development centre AB,Tools and product development centre AB,

Norrbotten and Västerbotten countiesNorrbotten and Västerbotten counties

• The ” Tools and product development centre AB” project (VPUC) aims to develop companies in the tool industry in Norrbotten and Västerbotten and in so doing to achieve the goal of turning the negative trend as regards market shares and to raise the tools industry to an internationally competitive level.

 • The project comprises five subprojects; (1) Development of Verktygsteknik

AB into a centre for research and development of technology and processes in the field of product development, construction and manufacturing of moulding tools, (2) Technical laboratory for steel shuttering, (3) Rapid Prototyping & Tooling Centre (RPTC) in Skellefteå is a centre for rapid production of prototypes and tools. (4) Industrial networks aimed at the development of tool-based components with among its subgoals to create conditions for collaboration by building up an industrial network and (5) Development of process models and IT support for collaboration in virtual companies.

 • It is expected that the project will directly result in 35 new jobs, two new

companies and two new company networks. Additionally it is estimated that about 50 national and international client companies will be linked to the project. The indirect effects to the individual companies can be considerable. The project ” Tools and product development centre AB” (VPUC) has received funding to a total of EUR 5,4 million. The EU Regional Fund has contributed EUR 1,9 million, via Objective 2 Norra Norrlandskusten and Objective 1 Norra Norrland).

AC United: Development process in the travelAC United: Development process in the travel

and tourism industry in Västerbotten Countyand tourism industry in Västerbotten County

• Several local projects in the travel and tourism industry in

Västerbotten County during the current Structural Funds period have targeted the basic conditions for the development of the industry, such as skills, product and destination development, and to create conditions for a more structured collaboration with the sales aspect of tourism. In this context, discussion of functional destinations has taken place.

 • The inter-county project AC United aims to drive forward this positive

development and give organisations, destinations and geographically delimited projects effective tools for their work. The development process has been carried out during the period Feb. 2002 – June 2003. The project participants included the county’s 8 co-operation areas/destinations and thereby more than 150 representatives for tourist companies, organisations, projects and individuals. As a method development project, AC United has added value for other regions in Europe .

• The purpose of AC United is to strengthen the competitiveness and

attractiveness of the county, its companies and destinations, by creating a joint commitment and assumption of responsibility for future development. The goals encompass increased employment, profiling, increased participation and collaboration, improved skills, improved availability and quality of tourism products, as well as better marketing impact. The project budget amounts to EUR 0,5 million, of which EUR 0,25 million is from the EU Regional Fund.

Travel and tourism industryTravel and tourism industry

Northern Sweden has a major development potential when itcomes to the development of the travel and tourism industry. The EU Structural Funds have contributed to the further development of the travel and tourism industry, among other things by improving conditions for destination development in partnerships, marketing and packaging and through the development of infrastructure and research. A presentation follows of three projects examples co-financed by the StructuralFunds.

European tourism research institute, ETOUR,European tourism research institute, ETOUR,

Östersund Östersund

• An ongoing project is to complete the establishment of ETOUR, which began in 1997 with support form Objective 6. By 2004, ETOUR shall be a well-known and internationally leading tourism research institute that provides good research and dissemination of knowledge of practical value to the tourism industry and relevant public bodies. ETOUR’s operational concept is through research and the dissemination of knowledge to contribute to the development of the tourism industry.

 

• The project has an interdisciplinary approach with ”The tourist destination” as its research profile, that is, the development of the networks of companies, public bodies and organisations that form the character of the tourist destination. The research and development work is run in three programme areas; destination development, business administration, and natural and cultural resources. To this is added a special programme area for transfer of knowledge to the tourism industry with the task of disseminating information on research findings.

 

• Within the project 45 different research projects are currently going on. All the research projects are based on current issues in the tourism industry, which has lead to considerable interest from the business community, which sees it as an important source of information for the industry’s own development.

 

• The ETOUR project has a budget of EUR 7.9m for the period 2001- 2004 and the EU Regional Fund is contributing EUR 3.9m.

Tourism and infrastructure initiatives in Tourism and infrastructure initiatives in

Västerbotten inland: Hemavan –Tärnaby Västerbotten inland: Hemavan –Tärnaby

• The Hemavan-Tärnaby area is located in the north western part of Västerbotten County. During the period 1995 up to and including 2001 about 30 projects have been run in the area with the support of the EU Structural Funds. Two main industries have been closely studied; tourism and transport infrastructure. The transport infrastructure sector comprises two projects involving Hemavan Airport. The tourism industry project today comprises over 20 individual projects involving hotels, restaurants and alpine skiing facilities.

• During the present period, both air traffic and the tourism industry in the area have shown a clearly positive trend. The number of air passengers has increased from 1,666 in 1995 to 4,368 passengers in 2001, that is, a 262% increase over the period. In the first three months of 2002, the number of passengers was 5,814, which means that the number of passengers by the end of March was already greater than for any whole year previously. The tourism industry reports that the number of guest nights in the Hemavan-Tärnaby area has also increased, with a growth of 52,299 overnight stays, or 338% between 1995-2001.

• The total cost has amounted to EUR 4.1 million of which the Regional Fund has contributed EUR 2.0 million.

New industriesNew industries

Northern Sweden has three universities – Umeå University,Luleå University of Technology and Sweden’s University Of Agriculture. Mid Sweden University, with campuses in Sundsvall, Härnösand and Östersund, will gain university status in 2005. The Northern Sweden University Hospital is located in Umeå. Taken together, the research carried out at these universities and colleges creates good conditions for the development of new industries, for example, biotechnology and IT, through increased collaboration with business and the community. The EU Structural Funds have contributed to stimulating the development of new industries. In the following section, a number of projects are presented, which are part-funded by the Structural Funds.

Embedded Internet System (EIS), LuleåEmbedded Internet System (EIS), Luleå

• The purpose of the project is to build up an industrial platform for the company and a research platform inside Luleå University of Technology (LTU) dedicated to EIS. The project goal is to achieve a leading-edge position nationally within the strategic R&D area EIS.

• The industrial platform is to create a critical mass of skills and resources in the region’s business sector and comprises three areas; (1) increase awareness of EIS among in the business sector, (2) influencing attitudes to increase the level of maturity of businesses to work with EIS and their interest in working with LTU in R&D and (3) Stimulate and strengthen business networks.

• The research platform is on the way to gaining international scientific recognition and is already attracting competence. The project owners co-operate with universities and research centres internationally, for example L’Aquila University, Italy; Fraunhofer Institut, Erlangen, Germany; Stanford University, USA; Oxford University, UK; and the University of Karlsruhe, Germany.

• After 24 months, the project has created ten new jobs (target was 7), participating companies in the network: 277 (target 1), and one new company (target 2). The indirect effects in the participant companies have not been calculated. Luleå University of Technology (LTU) has received funding from the EU Regional Fund amounting to EUR 2,8 million via Objective 1 Norra Norrland. In all, EUR 5,3 million is being invested.

Digital Printing Centre, DPC, ÖrnsköldsvikDigital Printing Centre, DPC, Örnsköldsvik

• Digital four-colour technique opens completely new opportunities for producing printed matter. Rapid technological development in the industry, in combination with new possibilities and markets, makes new demands on both suppliers and users. Through digital applications, one can greatly reduce the disadvantage of long distances to the major markets that the graphics industry labours under in sparsely populated areas.

 • There is now a great demand for qualified research, development and

education and the purpose of the project Digital Printing Centre, DPC, is to create a centre for research and development. DPC shall maintain the highest international class and shall give Sweden and the region a leading position in digital printing techniques. The investment in DPC is part of Mid Sweden University’s effort named ”Fibre Science & Communication” and is run in collaboration with other research and education institutions, the forestry industry, the graphics industry, and other research institutes and education centres.

 • About ten research projects have been started, in fields such as colour

control, test printing, parallel publishing, variable and customised printing, post-processing, the effect of different raster techniques, packaging printing and distributed printing. Results achieved so far in relation to set goals show that the project is progressing satisfactorily. New jobs amount to seven (the target is ten), jobs saved number over 20 (20), the number of active researchers amounts to four (zero) and the number of research projects amounts to 25 (ten). In addition, there are about ten networks, some of them international, which have been set up and five new training courses have been developed.

• Project Digital Printing Centre, DPC, has a total budget of EUR 2,7 million, of which EUR 1,0 million is provided by the Regional Fund via Objective 1 Södra Skogslänen.

Cell culture and synthetic transplants forCell culture and synthetic transplants for

neurosurgeryneurosurgery

• About 600,000 injuries per annum occur in the western world where the patient is in need of reconstructive surgery. However, the amputation of a limb leads to the loss of nerve cells, which often causes chronic pain, sensory loss and reduced function. The project being carried out at Umeå University Hospital aims to produce a nerve prosthesis using nerve cultures, to replace the lost nerve tissue. The nerve prosthesis will also function as function as an alternative to primary nerve suture taken for example from the patient’s leg.

 • Stem cell research is the key to success in this field, and the first tests

on rats started in Umeå in spring 2002. The first results indicate that the cultivated cells double nerve healing. A multicentre study is planned in co-operation with the university hospitals in Manchester and Glasgow during 2003. An estimate of the market potential of an approved product is astounding– a sales price of EUR 1650 per nerve prosthesis would mean an annual turnover for this product of SEK EUR 3 billion.

 • Umeå University and Norrlands University Hospital through the

project ”Cell cultures and synthetic transplants for neurosurgery received funding for an en initial study during the year 2001-2003 amounting to EUR 0,3 million, of which EUR 0,12 million was provided through the EU Regional Fund. During the years 2003-2005, the same project has received EUR 0,7 million from the EU Regional Fund for a total project budget of EUR 4,5 million.

Development of local and regionalDevelopment of local and regional

infrastructure for service, training andinfrastructure for service, training and

business operationsbusiness operations

Northern Sweden’s conditions - extremely sparsely

populated and with long distances, demands new, innovative

systems to provide municipal services and education. A well

developed IT infrastructure and collaboration project

permits an infrastructure for service and training, which are

necessary for business development. The EU Structural

Funds have contributed to the development of a local and

regional infrastructure for service, education and business,

in several cases with IT support. Here follow some

examples, part-funded by the Structural Funds.

AC-Net: Information technology AC-Net: Information technology

infrastructure throughout the countyinfrastructure throughout the county

• Västerbotten County realised at an early juncture the importance of having a good IT infrastructure. As early as 1996 AC-Net went online with the regional logic network that links the administrative centres of the municipalities in the county. This was a broad alliance between the county’s municipalities, business, the County Council and the County Administrative Board. In the years 1996-1999, AC-Net was funded through the Structural Funds (Objective 2, 5b and 6) and players in the county, but has since been run on a purely commercial basis. The AC-Net co-operation, in addition to low-cost Internet access and telephony, has created awareness of the importance of co-ordinated efforts in the IT field. An organisation for the whole county for IT co-ordination (IT Västerbotten), and an early startup in building the physical IT infrastructure are clear effects of this. Much of the broadband infrastructure has come about on a non-profit basis, through the mobilisation of "village power" around the county. This has created a belief in the future and a co-operative spirit, which can lead to other growth effects.

• Through the early infrastructure efforts, Västerbotten today is seen as a leading county in Sweden in IT infrastructure, and the county has also attracted international attention. The county’s enterprises now have improved opportunities to strengthen their competitiveness and the inland municipalities through these investments have relatively quickly been able to access the benefits of an infrastructure which reduces telephony charges and which can support IT activities in rural areas.

• In all, EUR 2,6 million has been invested in AC-Net in the years 1995-1999, of which the EU Regional Fund has contributed EUR 0,8

million.

E-health from a growth perspectiveE-health from a growth perspective

• In interaction between Västerbotten County Council, Umeå Municipality and local businesses, the project Tillit is bringing results. By creating an effective tool for improved healthcare and social care, one also creates a more effective organisation with the patient at the centre. The local company STT Care contributes technical solutions and works to create new products of commercial value – which is the basis for growth and a dynamic region.

• New methods will improve conditions for those needing healthcare and social care in the home. A database of all relevant information about the care receiver is the base. When the project is completed it will be possible to determine exactly what every person in the care chain is doing and has done. For the present, care and social services personnel are working with ordinary computers. Fairly soon the work tools will be handheld computers and cell phones.

• Today, those who work with patients have little knowledge of what is done, and where and when it is done. The personnel seldom meet – with new technology they will be linked together. The system will be able to inform personnel whether, when and by whom interventions have been carried out. If for example a dressing for some reason has not been changed, then perhaps the next person in the chain can do it. If a patient has fallen and needs to be lifted, perhaps the nearest personnel member can come and help. There is great interest in and outside the county.

• The Tillit Project for the years 2001-2003 had a total project budget of EUR 1,0 million, of which the EU Regional Fund contributed EUR 0,35 million. Tillit is now in its second phase, 2003-2005. This phase has a budget of EUR 0,35 million, of which the EU Regional Fund is contributing EUR 0,4 million.

Academy NorthAcademy North

• Academy North is a framework programme focusing on strategic skills development as an instrument for regional development. The purpose is for thirteen inland municipalities in Northern Sweden to create county-wide collaboration on tertiary education. The programme will bring about a stronger and clearer voice in discussions and decision-making about aims, funding and localisation of tertiary education. The programme will increase the availability of tertiary education and improve the ability to identify, develop and implement innovative courses based on local conditions and increasing growth potential.

• Some examples of courses include Nordic Ski Academy in Lycksele, Sollefteå and Tärnaby, Car systems in Arvidsjaur and Arjeplog, and the GIS programme in Lycksele. In addition, both long programmes and short courses are offered at locations where there are concentrations of applications.

• The first phase of the framework programme was carried out during the period 2000-07-01—2002-12-31, with funding from the European Social Fund in Objective 1 Norra Norrland and Objective 1 Södra Skogslänen. The total project cost amounted to approximately EUR 3,2 million, of which the Social Fund contributed EUR 1,25 million. The framework programme is continuing during the period 2003-2005, with a total budget of approximately EUR 3,1 million, of which the Social Fund is contributing EUR 0,9 million.

Business@Jämtland - Small and medium- - Small and medium-

sized enterprises on the Internetsized enterprises on the Internet

• The Objective 6 project ”SMEs on the Internet” through the association IT Jämtland has made it possible for an additional 370 Jämtland small enterprises to reach the world. That is how many companies have received training on the possibilities of the Internet and through the project have acquired a website.

• Business@jamtland is a business portal that displays the services and products of Jämtland companies. The portal also has a much-visited editorial section (approx. 14,000 visitors per month), which deals with the everyday life of the Jämtland companies. The portal is member-based and today has over 1,500 members. The aim is to support business development, including different types of on-line functions. These include a resource bank, business register, contact support, web conferencing, training, etc. This is needed, not least because the individual companies find it hard on their own to develop techniques that are needed today and in the future. It is hoped that development processes in the business sector in the county will be sped up with the help of this portal.

• During the first period from 1998 –2000, the project was included as part of a larger project ”SMEs on the Internet” which via Objective 6 Regional Fund was financed with a contribution of EUR 0,6 million, out of a total project budget of approximately EUR 1,4 million. In the period 2001– 2003, the project, Business@jamtland has received a contribution of EUR 0,13 million from the EU Regional Fund.