MODERN ENTREPRENEURSHIP AND TERRITORIAL DEVELOPMENT IN

RURAL AREAS.

A NORDIC-RUSSIA COOPERATION IN THE BALTIC-BARENTS REGIONCOMMENTS ON THE PROJECT

JOHN BRYDEN AND KAREN REFSGAARDGROUNDED INNOVATION GROUP

NILF, NORWAY

THREE SUB-THEMES

• Development of local entrepreneurship in rural areas of NW Russia and Nordic countries

• Creation, adaptation and correction of the innovative strategies for the rural areas, including training of the local administration

• Development of territorial self-government as a tool for better management and development of rural areas.

SUB-THEME 1. LOCAL ENTREPRENEURSHIP

•To establish Nordic-Russian network (academia, business and authorities)

– WORK TOGETHER – MUTUAL LEARNING – QUALITY INFORMATION - FOLLOW UP

– DOCUMENTATION – SUCCESS AND FAILURE, KEY ELEMENTS– INPUT TO DECISIONS

•To identify priority sectors of economic cooperation in rural municipalities

– Between SMEs, NGOs and authorities of the Nordic and the North-West Russian regions.

– Directions for future development based on local resources, value added opportunities, market tendencies etc.

– Promotion of Nordic experience, best practices, and know-how in North-West Russia.

SUB-THEME 2. INNOVATIVE STRATEGIES

• IDENTIFY AND EVALUATE LOCAL RESOURCES– NATURAL– CULTURAL– HUMAN– SOCIAL

• CULTIVATE AND CREATE A ‘BREEDING GROUND’ FOR INNOVATION– HOW TO CREATE A GOOD CONTEXT AND GOOD

INSTITUTIONS FOR LOCAL INNOVATION

SUB-THEME 3: TERRITORIAL SELF-GOVERNMENT

• CREATE A PLATFORM BETWEEN 15 (+) NORDIC AND NW RUSSIA MUNICIPALITIES

• STUDY VISITS TO IDENTIFY AND LEARN ABOUT ‘BEST PRACTICES’

• JOINT EVENT FOR 50 (+)• OTHER JOINT EVENTS TO PROMOTE IDEAS– EG ‘LOCAL INITIATIVES FAIR’

By working together we can find new and better ways of doing forest-based bioenergy that simultaneously..•improve energy security & flexibility •increase production of environmentally-friendly energy•develop rural economies & communities through providing better jobs, incomes and quality of life

Great Idea!

OUR APPROACH TO GROUNDED INNOVATION

The AIM is to understand and foster systems for bioenergy innovation and related support policies that can produce such positive social, economic and environmental outcomes in a range of different contexts.

Our METHOD uses the Grounded Innovation Platform (GRIP) approach. GRIP is a bottom-up process which brings the relevant private and public stakeholders together to work out what needs to be done, how, and by whom to produce such outcomes in specific case study regions or localities.

Change involves INNOVATION. = new or better ways of doing things, in this case from the growing and harvesting of trees, to the transport of trees to bioenergy producers, and on to end consumers of the energy; And/or changes in policies and institutions.

INNOVATION involves LEARNING. We can learn by study (RT&D) or we can learn by doing (DUI). Research has shown that a combination of these two approaches works most effectively. Our work in Grounded Innovation is also founded on this idea – researchers and practitioners are mutual and equal partners working towards common goals.

Two cases in brief!

• Freislân, solar boats platform• Finnish North Karelia wood-based platform

Fryslân, Netherlands

• Creation a small ‘platform’ around solar and electric boating, battery and control systems, and hull design– involves ~ 30 small enterprises, local schools and

nearby universities and colleges – every second year since 2006, has organized a 220km

six day ‘energy solar challenge’ for solar boats • the ‘world cup for solar powered boats’• entries from local and international sme’s, schools,

universities and individuals • follows route of the Fryslân ‘eleven cities ice skating race’

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Key points, Fryslân

• Embedded in local skills and the canal system• Strong common goal of sustainability• Strong cooperation between powerful

regional authority, small enterprises, schools, colleges

• Global vision and visibility

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North Karelia, Finland• Size: 166 000 inhab, 21,585 km2 14 municipalities• Renewables 63% of energy consumption

– Cf 28.5% in Finland, < 9% in the EU.– Wood: >70% of all fuels used for heat and power generation. – Significant SMEs & direct + indirect employment created by the

forest bio-energy & biomass cluster• Significant Innovation in …

– forest machinery – biomass transport & logistics– wood stoves and burners– design & construction of large &small wooden buildings– wood-based bioplastics …

• Today’s focus on new wooden products, liquid fuels and bio-chemical products

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LOOKS FAMILIAR!

E.g. Tuliviki Corporation

• Listed family company• HQ and main production in N Karelia• 350 employees• 50% exports, 22 countries• World’s largest manufacturer of heat-

retaining fireplaces• Soapstone fireplaces and Saunas etc

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Key Features: North Karelia Innovation System

• Key drivers– Deepen forest supply chain– Improve energy security & lower costs– While reducing CO2 impacts

• Key partners, working together– Local businesses along the supply chain as well as users– 2 Universities, 2 Research Institutes– Regional authority and Municipalities

• Having good links with Central Government and EU as well– External linkages, Finland, EU and beyond– Global approach at all levels from forests to marketing

• Vertical & horizontal policy integration/ coordination

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The habitable world gets drier

20Kilde: The National Science Foundation

Where can food be grown?

With thanks to Dr. Petter Heyerdahl, UMB

We need more cases like Freislân and North Karelia in the North!

Climate change has direct and indirect impacts as population and food/biomass production will move north!

=> Need to foster sustainable development– triple bottom line approach ’win, win, win’– GDP growth + environment not sufficient as indicators

•Renewable energy the ‘green engine’ in the North– but need to capture local benefits and legitimacy

•Decentralised community led energy solutions– E.g. geothermal for district heating; wood-based bioenergy, biofuels – Other important ‘green development’ elements are water, food,

waste, transport, designs for living., sustainable tourism•Local approaches needed

– Local policies & local innovation platforms are vital!

Conclusion

• This is a useful project for all– Find more good cases together

• Seeks to improve opportunities and options for rural regions of the North

• Creates opportunities for mutual learning and follow up

• Involves the right mix of partners from different perspectives and positions

• We are very happy to be involved!

Ideas from the Nordics on the four+ themes

• For study visits and for May conference– Bioenergy– Food processing– Sustainable tourism– The creative economy– Others

Bio-energy

– Energy farm (NO) – A Bioenergy Information Center• Courses and seminars• Guided tours to local bioenergy facilities• Consulting• Production of biofuels and bioheat

Food Processing – local food

• Food processing– Hanen ideas – Norwegian (NO): A national business

organisation for businesses within

– Stensaas, reindeer slaughter house (NO)• Family business originally founded on reindeer trade around 1890• Strong relationships to the reindeer owners with mutual trust to

ensure stability and security for consumers, producers and the business

• Also other game and other activities – delivers the game to Oslo– Thise organic dairy (DK)

– Local dairy coop– organic producers– Against all odds!

Hanen–A national business organisation for businesses within

• Rural tourism, local food and inland fishing• Around 400 members and growing• http://www.hanen.no/de/reiserute

Sustainable tourism• Sustainable tourism– The Norwegian Trekking Association - hiking (NO)– The Göta Canal Company – boating and biking (SE)– Fishing, kajaking and canoing (SE and NO)

The Göta kanal – for boats and

bikes

– Runs the canal and property business– Activities (laying up boats and shipyard work, external work, bridge

maintenance, sales and museum activity– Forest management, land and property connected to the canal for

both historical and practical purposes– Bike route along the canal– Food and lodging (youth hostels),

The Norwegian Trekking Association - DNT

• Member organisation with 240 000 members in 57 local organsations across Norway

• Access to the areas for everybody• Based on extensive volunteer work and• Individual responsibility• Cabins, trails & activities• Children, youth, mountain sports, elderly

Study visits 3

• Creative Economy– Events, • festivals, • cultural schools (Ås)• Music economy (Hultsfred, Sweden)

• Other ideas– Ecological sanitation – decentralised and

sustainable sanitation for rural areas (NO)– Cooperative housing

Potential partners for May-conference

• With links between local authorities, entrepreneurs, citizens & local resources

• Bioenergy: Erik Eid Hohle, Energy farm• Food processing: Hanen, Norway• Creative economy: Hultsfred, Sweden• Sustainable tourism: – DNT, the Göta Kanal

• Rural sanitation:– Petter Jenssen, NMBU

Training and thematic seminars

• Reflexivity• Evaluation• In addition: Platform thinking