The North Denmark Development Path and Smart Specialization Analysis of the Region

By/ Henning Christensen, Head of Division

About Smart Specialization?

• Smart Specialization is basically not just about specialization but very much about smart diversification

• Has resulted in a set of guidelines for the process of designing and implementing a RIS3 strategy

• An ex-ante conditionality for receiving and distributing EU structural funds 2014 to 2020.

Main recommendations RIS 3 – Expert Assessment (Bjørn Asheim):

1. Build on national strengths positions

2. Move towards high value-added niches

3. Increase educational and competence level in the private sector

4. Mobilize additional funding for knowledge intensive R&D-driven sectors

5. Make use off Public Procurement for Innovation (PPI)

6. Focus on the attractiveness of North Denmark

7. Establish clear action lines in the strategy

Industrial areas with growth potential for North Denmark - The 8 national ”Growth areas”

Maritime IndustryEnergy & Climate tech.

ICT & Digitalization Tourism & Experience

FoodCreative Businesses

Health & welfare solutions Water, Bio & Environment

solutions

The 8 national ”Growth areas” – Mapping of growth potential

Growth

Area

Public research in fields related to

the Industry (AAU)

Sub branches with economic

growth

Sub branches with employment

growth

Sub branches with regional specialization

Presence of regional

supporting organizations and

institutions

Presence of a relatively high

number of growth-

businesses

The 8 national ”Growth areas” – Growth potentials for North Denmark

North Danish growth potentials

Energy & Climate- Oil rigs, Windmills, Boilers , Pumps and Biogas Plants.

Maritime Industry- Logistics, green equipment and service.

Health & Welfare- Possibilities for developing local business access to develop and test innovative solutions in collaboration with the public sector .

Tourism- Development of the regional tourism product towards high value niches

Water, Bio & Environment - Possibilities for development in the recycling industry

Foods- High quality non/semi processed foods & agro technology

Information & Communication Technology- Potentials within ICT services, e.g. software and ICT -consultantsy.

Creative businesses & Design- High specialization in production of fur

Construction & Housing- Many specialized subcontractors for the construction sector

Analysis of The Industrial ”Growth Layer” in North Denmark: More than 1.000 enterprises in the Growth Layer

553 Growth enterprises 479 Potential growth enterprises

Distribution of 553 growth enterprises by sectors

Agriculture & fishing

7%Manufactureing of componants

13%

Manufact. of consumer

goods23%

Construction10%

Trade25%

Knowledge services

11%

Operational services

11%

Share of growth

enterprises by sector

2013

North Denmarks share of growth enterprises compared to national share - by industry

00,20,40,60,8

11,21,41,61,8

Industries included in NDR growth areas

Distribution of 553 growth enterprises by industrial sectors - relative to national average

Geographical distribution of the Growth Layer (553)

Growth enterprises share of private companies, 2013

Share of private employment in growth enterprises, 2013

NDRaverage

NDRaverage

Jobcreation in the Growth Layer

More than

5.000 new jobs in

3 years

… in the 553 Growth enterprises alone

…and in a term with overall employment stagnation

The growth enterprices share of overall economic growth (GVA)

Number of enterprises

2013

GVA increase

2010 to 2013 (billion kr.)

Growth enterprises Other private enterprises

The growth enterprises utilization of regional business support programs

Share of all growth

enterprices 2013

Share of growth enterprises

participating in regional support programs 2007 to

2013

Participated 2007 to 2013Did not participate

Support did influence growth No effect / don’t know

Preparatory analysis - some main conclusions for North Denmark

• Problems with productivity growth, especially because some areas are less innovative

• Average performance on entrepreneurship

- but problems in terms of new firm growth

• A number of well performing business areas, with considerable growth potential

• The existence of ”growth layer” – a limited number of enterprises sustaining overall growth.

The analythical structure of the strategy

S W

TO

Preparatoryanalysis

1 2 3

4 5 6

987

Strategic areas of action

SWOT –analysis for North Denmark

Global trends (megatrends)

Main challenges and recommendations

New growth

Better mobility

Increased attractivity

GlobalizationDemographyClimate change

Analysis: SWOT, megatrends, main challenges and strategic actions

1. Secure a quallified laubourforce

RECOMMENDATIONS

AREAS OF ACTION6. Increase internationali-

zation of businessesNew growth

Better mobility

Increased attractiveness

5. Match qualifications to business needs

4. Create more businesses with growthpotential

3. Increase private capacity for innovation

2. Exploit business areas of strength

7. Secure mobillity and accessibility

8. Secure an attractive North Denmark

9. Strengthen the regionens international collaboration

MEGATRENDS

Demography

Globalization

Climate change

S W

O T

Referenceto

challenges

1,2,3,4,5,6,9

1,2,3,4,7,9

2,4,5,8,9

From recommendations to strategic focus areas - an example

Recommendation 2:Exploit regional strengths

within businesses and technologies SMART REGION

Promote growth and coherrency for all North Denmark while at the same time creating an innovative framework for regional businesses developing new digital sollutions within the area of transport and logistics.

Recommendation 3:Improve private capacity for

innovation

Recommendation 7:Secure mobillity and

accessibility through digital infrastructure

RECOMMENDATIONSFOCUS AREA

Preparatory analysis - approach

1. Analysis of North Denmark's primary structural and socioeconomic challenges.

2. Benchmark analysis of the general framework conditions for socioeconomic growth, imbedded in the region.

3. Analysis and assessment of the growth potential within specific “national stronghold industries” with a strong presence in the region.

4. Analysis of the presence and relevance of an industrial “growth layer” in North Denmark, as the primary target group in the new strategy.