Innovation as a driver for

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Innovation as a driver for Regional Economic
Development - the case Fiber Optic
Valley Kristofer Erlandsson The Competitiveness
Institute
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Kristofer Erlandsson M Pol Sc

• 1975-80 Expert, Swedish Board of Trade
• 1980-84 Expert, industrial policies Nordic
  Council of Ministers
• 1984-90 Expert, trade and industrial policies
  Swedish Federation of Manufacturing
  Industries (expert ICC,UNICE,BIAC)
• 1990-94 President Swedish Coalition of Service
  Industries
• 1994- Independent advisor, strategy consultant
  and analyst
• (i a evaluation of structural funds programs)
• 1998- Founder of Process Simulation
• 2001- Commissioned by NUTEK/ VINNOVA/VISANU for
  i a an extensive Triple Helix Management
  training program
• 2004 Commissioned by Ministry of Economy and
  Labour, Poland, together with Gdansk Institute
  for Market Economics
• 2005 Commissioned as RIS expert by
  EEDRI/University of Lodz
• Appointed Executive Director of The
  Competitiveness Institute

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The global network for regional competitiveness
We offer information on clusters and competitive
regions worldwide. We use multiple arenas in real
life and on the net for exchange of ideas,
knowledge and experiences on methodologies for
economic growth. We work on clusters, innovation
systems, promotion of entrepreneurship and
regional branding.
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The 9th annual TCI conference will be held in
Lyon France October 2006 - Governance and
Companies as Cornerstones of Cluster Initiatives
Visit us on the web www.competitiveness.org and
become a member you too !
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Fiber Optic Valley

• Fiber Optic Valley is
• a cluster focusing on development and test of
  broadband technique,
• e-services and photonics

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FOV main areas of focus are
- Fiber to the user - E-services to the home and
SME - Fiber optical industrial applications
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What is fiber optics?
- Systems creating, transporting and detecting
light carrying information. Major application
areas - Digital communication, sensor systems,
medical applications, illumination
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Fiber Optic Valley
- The single largest Swedish effort building
competence in RD, manufacture and education to
support the new fiber optic IT infrastructure - A
unique competence mix - Supplies the environment
required for development of the technique and
e-service platforms of the information society of
tomorrow
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Fiber Optic Valley the region
Situated in the center of Sweden, on the east
coast between Sundsvall and Hudiksvall.
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Hudiksvall

• Almost in the middle of Sweden
• Three large industries
• 1 700 SMEs
• Only 37 000 inhabitants in a region seven times
  the size of Stockholm

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Hudiksvall an international competence center in

• Paper
• Hydraulics
• Telecom cables

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Fiber Optics History in Hudiksvall

• LM Ericsson builds a cable factory in Hudiksvall
  1966
• Fiber optics within Ericsson-Televerket (Swedish
  PTT) during the 70s
• Fiber optic cables manufactured from 1984

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FOV Background
Metropolitan Area Fiber Network in
Hudiksvall Phase 1 1996
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FOV Background
First fiber to the home (FTTH) installation in
Sweden, in Hudiksvall 1998
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2005
More than 150 partners, including about 40
co-financiers
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FOV Background
1999 - The community of Hudiksvall decided to
start Infocom - a project for initialization
of - Fiber Optic RD - Fiber Optic Education and
Training - Commercialization of the Fiber Optic
Metropolitan Area Network - Commercial
Growth 2000 started the lobby group Via Futura
(www.viafutura.nu) 2001 Opening of Acreo
FiberLab 2002 Mid Sweden University starts
research and higher education within fiber
optics 2003 Fiber Optic Valley
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Winner of Vinnväxt
- VINNOVA, the Swedish agency for innovation
systems, has a program aimed at stimulating
innovation and growth in different regions of
Sweden. - Fiber Optic Valley was chosen as one
of the winners of this initiative called
VINNVÄXT. - This means a financial support of six
million Swedish kronor a year for a period of ten
years.
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Acreo
The largest Swedish research institute in
microelectronics and optics

• Main product contract RD
• Turnover 2003 212 Mkr ( 30 MUSD)
• of which 50 from the industry
• 160 employees (1/3 PhDs)
• Three major laboratories FiberLab (Hudiksvall),
  Semiconductor Lab (Kista), Organic Semiconductor
  Lab (Norrköping)

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Acreo FiberLab - Hudiksvall, Sweden
- Inaugurated Sept 13, 2001 - 30 MSEK equipment
(3,3 MEuro) - 2000 m2 of which 500 m2 clean
room - Two hours by train from Arlanda
Airport (Stockholm)
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International research network

• Above all via Acreo, MiUn, HiG, UU, KTH, WII, ECA
  and international projects
• World Internet Project
• MUSE (EU Frame 6)
• NOBEL (EU Frame 6)
• MUPBED (EU Frame 6)
• Innovation Relay Centres (IRC)
• Outside EU

USA ATTBell Cisco Corning Microsoft South
America E/// Brasil Univ. do Brasil
Russia FORC Asia Sumitomo Hitachi Samsung CETC Fa
sten Photonics
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Center for Development and Learning

• Education and training in fiber optical network
  development, installation and operation
• - Has the No. 1 environment in Northern Europe
  for fiber optical education and training
• - Produces and publishes own course litterature
  
• - Runs custom designed education for companies
• - Has several partnerships, Ericsson Training
  Partner, Cisco Networking Academy, Microsoft IT
  Academy, VUE Testing Partner

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The Testbed first of its kind in Europe
- A realistic environment where contracted users
(test pilots) form a representative picture of
the society. - Researchers, manufacturers,
suppliers and users, develop, test and verify
function, quality and market requirements of
products and services before introduction on the
open market.
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The Digital SchoolA Project in Hudiksvall

• Fiber optic access to all class rooms, teachers
  rooms and group rooms
• 100 Mbit/s within the school
• 1 Gbit/s or more between the schools
• Access to the Acreo testbed

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Hudiksvalls hospitalFiber in and around the
X-ray dept. already year 2000

• Most modern in Northern Europe 2001
• Most modern computer tomograph in 2005
• Raw data 1,8 Gbit/s, fiber optics only possible
  communication link

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FOV Success Stories
RD
Companies
Innovation
Establishments
MUSENOBELMUPBED Old_at_Home
In Hudiksvall since 2004 Studies usage and
effects of Internet and digital communication
technique on individuals, society and business
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Summary FOV 1999-2005

• The lobby group Via futura (www.viafutura.nu)
• Commercializing of Hudiksvalls Metropolitan Area
  Network
• Acreo FiberLab (www.acreo.se)
• The fiber optical test bed
• Fiber optic education and training (techn. - PhD)
  
• World Internet Institute
• Fiber optic industry applications
• The IT Advisers
• Firmly established and representative management
  and board
• Vinnväxt-winner 2004
• 24 new companies within fiber optics in the
  region
• gt 100 well paid new jobs

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Fiber Optic Valley - critical observations for
politicians

• Realize that cluster development is a process
  (which has to be adequately financed) and not a
  project
• Accept that results will show in value not in
  volume
• Never lose focus on the commercialization
• Accept politically that business has no
  boundaries and that science is global
• Equity is good (upbringing) money and grants are
  bad money
• Contests focuses on those which can deliver and
  not those which are pitied

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Creating an Innovative Europe -the Aho report to
the EC

• Provide an innovation-friendly market
• Regulation
• Standards
• Public procurement
• IP
• Large scale strategic actions on European level
• Increase in resources
• Structural funds share to RD trebled
• Mobility
• Financial mobility
• Clusters and technology platforms

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Structural funds - Infrastructure or RD ?

• Both infrastructure and RD
• plus
• socio-economic infrastructure (process
  facilitation and trust creation)
• and
• venture capital (reinforcing local capital
  formation)

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Thank you , for further information please
contact
Kristofer Erlandsson ke_at_processim.com www.processi
m.com www.competitiveness.org www.fiberopticvalley
.se