RIBS - Project

RURAL INNOVATION AND BUSINESS SYSTEMS

SME´S INTERNATIONALISATION Kari AutioIin Micropolis LtdFinland

27.2.2013 Nairn, Scotland

Micropolis operates in Oulu Region

The Oulu region is a major locomotive in Finland.

The aims of Micropolis are to generate new business opportunities

and support business ventures. More information: www.micropolis.fi

Micropolis Technology and industrial hub offers…

• Industrial and business premises

• Networking possibilities

• Exploiting new commercial opportunities

• Cluster assembly..

A place to suit your companyMicropolis comprises a network between companies, research and regional developers. Techonology center offers facilities for start-ups, growing businesses and internationally

established companies.

RIBS - Project

• Population in Oulu Region 393 800

• Population City of Oulu is around 200 000 (2013) and it´s surrounding including (50 km) app. 250 000

• Oulu International Airport is 2. largest in Finland

• Oulu University, 2. largest in Finland

• Number of Hi-tech businesses in Oulu Region 1 600 (18 %)

• Hi-tech jobs in Oulu Region 18 052 (21 %)

Average population density: 11 inhabitants/km2

Economic Structure: Services 66%, Manufacturing 22%, Construction 6% and Agriculture and forestry 6%(Labor force by occupation )

PYHÄJOKI

KALAJOKIOULAINEN

MERIJÄRVI

YLIVIESKA

ALAVIESKA

SIEVI

RAAHE

HAAPAVESI

NIVALA

HAAPAJÄRVI

REISJÄRVIPYHÄJÄRVI

KÄRSÄMÄKI

PYHÄNTÄ

LIMINKA

MUHOSTYRNÄVÄ

HAILUOTOKEMPELE

IIPUDASJÄRVI

UTAJÄRVI

TAIVALKOSKI

KUUSAMO

LUMIJOKI

SIIKAJOKI

Oulu Region 2013

29 Municipalities

7 Sub regions

Sub regions Municipalities

Posio

Oulunkaaren sk

Haapaveden-Siikalatvan skYlivieskan sk

Nivala-Haapajärven sk

Koillis-Suomen aluekeskus

Raahen aluekeskus

Oulun Eteläinen aluekeskus

Koillismaan sk

Raahen sk

Town

SIIKALATVA

OULU

Oulunaluekeskus

Oulun sk

RIBS - Project

Strategic Focus: To assist rural knowledge based SMEs to internationalise more quickly

Expected Outcome: A fast track business support product which help rural knowledge based SMEs to internationalise more quickly

Description of WP4:•Develop and test a product to strength SMEs engagement in the innovation system and thereby to enable them to internationalise more quickly•Focus on SMEs that have the potential to internationalise and are weak in seeing how to convert this potential to revenue

The Rural Innovation and Business Systems (RIBS) project will specifically help SMEs to address the effects of the economic downturn and strengthen their competitiveness and growth potential. On rural areas is difficulties to recognize (find) potential SMEs which will grow and are favor to start export.

The Rural Innovation and Business Systems (RIBS) project will specifically help SMEs to address the effects of the economic downturn and strengthen their competitiveness and growth potential. On rural areas is difficulties to recognize (find) potential SMEs which will grow and are favor to start export.

WP 4: Internationalisation of SMEs

RIBS - Project

How SMEs were selected ?

RIBS - Project

Interviewed SMEs Recycling electronics 1Biotech 1 Software 5Cleantech 2Wood products 3Energy technology 1Testing and approvals 1Access control systems 1Stone products 1Medical devices 2 Maintenance services 1Robotic systems 1Engineering workshop 2Interface production 1HVAC automation 1 Lead light fittings 1

Recycling electronics 1Biotech 1 Software 5Cleantech 2Wood products 3Energy technology 1Testing and approvals 1Access control systems 1Stone products 1Medical devices 2 Maintenance services 1Robotic systems 1Engineering workshop 2Interface production 1HVAC automation 1 Lead light fittings 1

SMEs to internationalisationSoftware 2Energy technology 1Testing and approvals 1Medical devices 1 Robotic systems 1Engineering workshop 2Interface production 1Lead light fittings 1

Software 2Energy technology 1Testing and approvals 1Medical devices 1 Robotic systems 1Engineering workshop 2Interface production 1Lead light fittings 1

RIBS - Project

How interviewing was done ?

• Programme Manager had meetings with all representatives of 25 SMEs

• One meeting took time normally 2 – 2,5 hours

• The Business and Innovation Compass forms and also Navigation Tool forms were filled together with SMEs´ representatives: Situation in SME 3 years ago, at the moment, after next 3 years ?

• Results were preliminary analyzed by Luleå Technical University

• Programme Manager had meetings with all representatives of 25 SMEs

• One meeting took time normally 2 – 2,5 hours

• The Business and Innovation Compass forms and also Navigation Tool forms were filled together with SMEs´ representatives: Situation in SME 3 years ago, at the moment, after next 3 years ?

• Results were preliminary analyzed by Luleå Technical University

RIBS - Project

What after interviews ?

TwinSpark Consulting Ltd was chosen as external expert for internationalisation

First pilot tool of internationalisation was created together with external expert on 1 st of February 2012 (Template of questions )

10 potential SMEs were chosen from 25 earlier interviewed SMEs by Project Team (Programme Manager, Project team member, external expert)

Individual proposals to each SME for first acts was done by Project Team

A half day meeting was held between each SME and Project Team where first acts were agreed.

Supporting of SMEs to take first acts for internationalisation was started.

RIBS - Project

Five main categories of questions:

Has SME internationalisation strategy or plan? Process and Product Resources Financing Public and Private support to internationalisation

During interviews every SME have to pick up one category which is most actual to them at the moment.In selected category were some extra questions to answer

Five main categories of questions:

Has SME internationalisation strategy or plan? Process and Product Resources Financing Public and Private support to internationalisation

During interviews every SME have to pick up one category which is most actual to them at the moment.In selected category were some extra questions to answer

First pilot tool of internationalisation

RIBS - Project

First pilot tool of internationalisation

2. Process and Product

Production capacity

Certificates (e.g. CE-mark)

Is the product protected?

Quality management system?

Marketing and sales channels

3. Resources

Equipments and Premises

Human resources

Marketing resources

Financing

4. Financing

Is financing secured?

Share of self-financing

Possible external financers

Share of public financing

Requirements of the legislation

Materials

Technical requirements

Customer requirements Support, services and maintenance

Product documentation

Additional questions of product readiness

RIBS - Project

Rural area SME support process – Steps

Create a questionnaire

for SMEs

Interview of

SMEs

Analysis of Interview

results

Create a proposal

for actions

Discussion with SMEsfor actions

Participants:

Project mgr

SME representative

Participants:

Project mgr

Project team

Consultant

Participants:

Project mgr

Project team

Consultant

Participants:

Project mgr

Project team

Consultant

SME representative

Participants:

Project mgr

Project team

Consultant

Participants:

Project mgr

SME representative

Developmentand financial

plan for funding

application

RIBS - Project

Situation today ? Seven SMEs have got funding and they have started first acts:• 3 SMEs are already on export market

SMEs have got funding for business development including:• employing managing director • employing marketing people• employing engineers• investments production processes

Three SMEs have got venture capital investment

One SME has left in application for funding

Two SMEs are planning to make application for funding

Seven SMEs have got funding and they have started first acts:• 3 SMEs are already on export market

SMEs have got funding for business development including:• employing managing director • employing marketing people• employing engineers• investments production processes

Three SMEs have got venture capital investment

One SME has left in application for funding

Two SMEs are planning to make application for funding

RIBS - Project

What are first acts? Example about proposed first acts to one SME

1. Internationalisation strategy/planFrom Centre for Economic Development, Transport and the Environment will be looked for 50% or 70 % funding from total cost.Market study in Baltic countries and Ireland.Material for marketing.Search and create marketing and distribution chains. Types of financing and terms of payment(leasing and etc.).Agreement typesProduction in target countries(subcontracting)

2. Presentation of product to EU officers in Brussels North Finland EU Office will arrange a meeting.

3. Venture capitalist to financing internationalisation

4. Investments to increase personnel

5. Ensure acceptable production capacitySubcontracting in Latvia and BelarusQuality assurance system Education of personnel

What are first acts? Example about proposed first acts to one SME

1. Internationalisation strategy/planFrom Centre for Economic Development, Transport and the Environment will be looked for 50% or 70 % funding from total cost.Market study in Baltic countries and Ireland.Material for marketing.Search and create marketing and distribution chains. Types of financing and terms of payment(leasing and etc.).Agreement typesProduction in target countries(subcontracting)

2. Presentation of product to EU officers in Brussels North Finland EU Office will arrange a meeting.

3. Venture capitalist to financing internationalisation

4. Investments to increase personnel

5. Ensure acceptable production capacitySubcontracting in Latvia and BelarusQuality assurance system Education of personnel

RIBS - Project

Comments to Business and Innovation Compass: To create usable tool for persons which are dealing with SMEs

Internationalisation Tool will be tested with five SMEs which have not been among earlier 10 SMEs

Tool for internationalisation of SMEs based on platform created in Business and Innovation Compass

Best practices to support SMEs in Ireland, Scotland and Finland will be analysed and presented to main funding agencies in Finland

Business and Innovation Tool and also Internationalisation Tool will adapted to Finnish conditions;• reducing and simplifying questions• translating questions into Finnish• more visual outcome• usable in PC and Smart phones

Comments to Business and Innovation Compass: To create usable tool for persons which are dealing with SMEs

Internationalisation Tool will be tested with five SMEs which have not been among earlier 10 SMEs

Tool for internationalisation of SMEs based on platform created in Business and Innovation Compass

Best practices to support SMEs in Ireland, Scotland and Finland will be analysed and presented to main funding agencies in Finland

Business and Innovation Tool and also Internationalisation Tool will adapted to Finnish conditions;• reducing and simplifying questions• translating questions into Finnish• more visual outcome• usable in PC and Smart phones

What next?

RIBS - Project

WAITING FOR SUMMER !

THANK YOU !