fi - en

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Projects, Processes and Clusters - New Know-How
and New Technologies in Regional Development Work
New KnowHow and New Technology in Rural Areas -
seminar Kauhajoki, 06.04.2005
Mr. Timo Vesiluoma
Chief Executive Suupohja Development Association,
Finland
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• Timo Vesiluoma
• Projects, Processes and Clusters - New Know-How
  and New Technologies
• in Regional Development Work
• The Content of the presentation
• Backround The Suupohja Sub-region and Its
  Economic Structure
• The Story of LEADER-process and Development
  Association in Suupohja
• Local Knowledge Clusters in Suupohja
•  (wood furniture, agriculture food,
  automation systems)
• The Bases of Development
• The Regional Co-operation between Different
  Actors
• The Use of New Know-How and New Technologies in
  Local Projects
• The Summary Results, Lessons Learned Future
  Challenges

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1. Background

• Suupohja sub-region
• Consists of five municipalities Kauhajoki,
• Isojoki, Jurva, Karijoki and Teuva
• About 30 000 inhabitants (2005)
• Labour approx. 11 600 persons
• Regional Centre Kauhajoki, approx. 14 600
  inhabitants
• Economic structure
• agriculture 15 , industry 33 , services 49
• Population under 25 years 18 , 25 to 64 years
  63 ,
• over 65 years 19
• Number of unemployed persons 3/2005, average 10
• (1993 30 in Kauhajoki)
• Strong entrepreneurship more than 2000 companies
  1500 farms

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• Long Tradition of regional
• co-operation in Suupohja -
• Evolution and Some Milestones
• Joint projects involving two or more
  municipalities 1992-93
• Sub-regional development strategy for Suupohja
  1994,
• Individual sub-regional EU-projects 1995
• LEADER II-development strategy process 1995-96
  and LEADER II-program 1997-2001
• Suupohja Development Association 1996
• Suupohja Federation of Economic Development 1996
• LEADER -strategy process 1999-2000 and LEADER
  -program 2001-
• Regional centre strategy process 2001 (National
  programme)
• Regional Centre/Network Pilot Programme 2002-
• Suupohja Cultural Association 2003

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2. The Story of LEADER-process and Development
Association in Suupohja
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Suupohjan Kehittämisyhdistys ry Suupohja
Development Association

• Is a Local Action Group (LAG), formed in 1996
  and is one
• of the 58 Finnish LAGs
• The LAG administers and coordinates the Suupohja
• LEADER -program during years 2001-2006.
• The LAG implemented LEADER II program during
• the years 1997-2001
• The Association is also involved in the
  implementation
• of The Network Pilot Programme in Kauhajoki
  district (national
• funded programme) taking charge of the
  process related to the
• programme and the services of the Programme
  Manager
• The association operates on a partnership basis
  and it has
• about 130 members including e.g. five local
  municipalities
• and different local associations and
  companies. 

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Suupohja Development Associationsareas of
action

• Systematic and participatory
• regional development
• (ia planning, coordination and
• implementation of projects
• and programmes)

Interreg III
2. Promotion of international cooperation
National programs
LEADER
LEADER
Town twinning
3. Development of the villages (ia services and
housing)
4. Promotion of youth involvement
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Suupohja Development Association Board and Staff

• The Suupohja Development Association has a board
  of 15
• members and 15 personal vice members, chair
  person of
• the board is Mrs. Sirpa Kinnari
• The members of the board represent local
  municipalities,
• associations as well as businesses. Also some
  individual
• persons are members of the board as themselves.
  
• The Board is supported by three official
  sub-committees
• and many non-official thematic teams.
• In 2005 the association has an executive staff
  of seven
• persons, office in regional development centre
  in Logistia,
• Kauhajoki
•  

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Suupohja Development Association LEADER II
Programme 1996 - 2001

• About 300 project application submitted to LAG
• 152 project accepeted by LAG
• 50 small feasibility studies accepted
• New, full time job opportunies 150
• New, part time job opportunies 120
• Old jobs remained 225
• New enterprises founded 69
• New products or services developed 183
• Finance
• EU 1.680 Meuro
• National Public 1.680 Meuro
• Private funding 1.514 Meuro
• Total 4.874 Meuro

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• SUUPOHJAN LEADER PROGRAMME
• THEMES FOR THE YEARS 2001 2006
• Two basic themes in Suupohja LEADER programme
• The use of new technology and know-how
• The use of local natural and cultural resources
• To be implemented in the following entireties1.
  Education and activation2. Renewal and
  development of entrepreneurship - Craft
  technologies (especially wood and furniture) -
  Food industry - Travel - Computer technology3.
  Village services and environment4. Development
  of cultural activities

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LEADER Programme 2001 - 2008

• About 170 project application submitted to LAG
  (31.12.2004)
• 118 project accepeted by LAG
• 6 projects between regions accepted (line 2)
• New, full time job opportunies 54
• Part time or temporary job opportunies 132
• Old jobs remained 55
• New enterprises founded 12
• Persons trained 732
• Finance of the programme (appr.)
• European Union 2.35 Meuro 32.4
• Finnish State 1.41 Meuro 19.5
• Suupohja municipalities 1,00 Meuro 13.7
• Private 2.50 Meuro 34.4
• Total 7.26 Meuro 100.0

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3. Local Knowledge Clusters in Suupohja region
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Local Knowledge Clusters

• Definition What is a Local Knowledge Cluster?
• The term Local Knowledge Cluster is used in this
  presentation to mean a local crossroads or
  concentrations of some special knowledge or skill
• Clusters are frequently based on a traditional
  concentration of business, or on a school or
  other institution
• These clusters are frequently based on the
  evolution of decades of economy and are only
  occasionally the result of planned actions
• They possess knowledge skills that are of
  significance in regional development work
• Skills must be actively involved in regional
  development work
• Regional development actions can however be a
  significant catalyst for the development of a
  cluster
• In Suupohja local knowledge clusters are central
  actors in development actions that seek to
  develop new knowledge and technology
• The knowledge clusters in Suupohja are 1)
  furniture production, 2) logistical automated
  systems and 3) the food industry

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• Local knowledge clusters
• Furniture production
• The most traditional business, a more than
  200-year history
• Local business cluster approx. 200 companies,
  1100 workers
• Crucial to some individual municipalities, such
  as in the municipality of Jurva where every other
  person is employed directly or indirectly by
  furniture production
• Market share in Finland 35-40 of domestic
  production
• Innovation centres Jurva School of Culture and
  Design the National Carpenter Centre
• TEAK Ltd - Technology Centre devoted to wood
  handling (automation technology, robotics,
  laser)

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• Local knowledge clusters
• Industrial logistics and materials handling
  systems
• Local business cluster approx. 40 companies, 750
  workers
• 30-year history, began in the early 1970s
  with a single business
• Hi-tech products materials handling, packaging,
  lifting, storage automation systems. Market share
  in Finland 45-50
• Makes significant use of computer technology and
  project skills
• A very international business
• Development company LC Logistics Center Ltd (10
  persons)
• Technology Center Logistia in Kauhajoki (6500 m2,
  70 companies)

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• Local knowledge clusters
• Agriculture and the food industry
• Southern Ostrobothnia and Suupohja have
  traditionally been strong agricultural areas
• Among other things, EU-membership brought strong
  pressure for structural change
• The central lines of production have
  traditionally been vegetables, milk beef, and
  potatoes
• During the last 10 years specialization has
  occurred and new plants have been emphasized,
  such as for example berries (especially
  seabuckthorne 80 farms) and linseed
• A strong emphasis has been placed on continuing
  refinement as well as research and development.
  Innovation unit Kauhajoki Polytechnic
  Kauhajoki Food Lab, Food Development Unit, Pilot
  Factory for Food
• National and international networking
• At this time the area (Suupohja) has 60 small
  companies, 1 large company (Atria)

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4. The Bases of Development Regional
Co-operation Between Different Actors
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The bases of development

• Regional development in Suupohja is based on
  partnership with
• several key actors. These are
• Local municipalities
• A municipality in Finland has a strongly
  independent status and powers e.g. the right to
  tax. Municipalities are also locally responsible
  ia city planning, primary- and
  vocational-technical education and social- and
  health services.
• Municipalities can form municipal consolidations
  which handle specific duties. In Suupohja there
  are joint municipal consolidations administering
  vocational-technical education and economic
  development.
• Suupohjan kehittämisyhdistys ry - Suupohja
  Development Association (LEADER), Local Action
  Group
• Local Knowledge Clusters
• Private businesses and development corporations

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New kind of vitality in the area
Competence strengths Working partnership in the
area Useful networks
Actions
Vision/Common view of development
Local knowledge units
Trust capital and commitment
Municipal co-operation
LEADER II
Bottom up-planning and implementation
process The needs and possibilities of companies
and other actors
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• The Bases of Development
• The puzzle of regional development
• Each partner takes care of one piece
• of the puzzle in the area
• Complementation the different roles and tools of
  the actors. Specialization (ia municipalities,
  education centres, knowledge units, Local Action
  Group)
• Implementing Development Actions that support
  each others
• Having Small steps of success to convince people
  that we are building the puzzle in a right way!
• Monitoring and evaluation of the prosess, asking
• Are we building the the puzzle in the right
  way?

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The steps of program processes in Suupohja
6. Monitoring and evaluation of programme
implementation
5. Partnership-based implementation process
(companies etc. involved)
Implementation phase
4. Nationally approved programme - making
necessary changes to programme
Planning phase
3. The development plan - official commitment of
local actors
2. Bottom up-planning process in the
region (companies and appr. 300 persons
involved) - 10 to 15 different working groups

• The previous development workand evaluation of
  starting points
• The local actors strong will
• Organizing the planning process
• Support for the planning work

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5. The Use of New Know How and New Technologies
- Examples of local development projects and
processes
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Example 1 Development in the furniture business

• The LEADER programme has been of central
  significance in development processes of
  furniture business in the region
• The entire process was initiated through
  individual LEADER projects during the LEADER II
  period
• Activities were activated by local furniture
  industry businessmen in conjunction with the
  development association
• Over the years the process has grown to form an
  entirety of significant proportions (about 10 M
  in projects), one that includes many other
  sponsors in addition to LEADER, ia EU goals
  programmes and national development programmes
• Key question How can the marketing, production
  and product development of companies in this
  field of business be developed? And how can the
  threat of import furniture be addressed?

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Example 1 Development in the furniture business

• Current development goals are ia
• development of regional knowledge clusters
• development of R D activities ia by using
  production process innovations, e.g. new
  materials (thermowood), automation, computer
  networks
• development of cluster businesses ia by using new
  skills and new business models (marketing,
  networking etc.)
• The process is planned using a participatory plan
  where the participating local businesses and
  skilled persons have defined a common vision.
  This has created a strong sense of commitment to
  the actions planned. Actions are guided by
  professional area groups, a majority of whose
  members are businessmen.
• The process also has international dimensions,
  thus global as opposed to local competencies are
  in interaction in the region
• The following slide shows the development of the
  process

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The development of cluster competencies through
interaction
The Development Processof the South Ostrobothnian
furniture business from a single project to a
large scale process.
R D processes 5M consumer design 04
Intelligence furniture
Information center 03 CC- investment 04 Business services 03-04
CC-concept research 03-04
Professor 2002 Reseach program 03 Oy FFH Ltd 03
International furniture pilot 2002-04 Salesperson training 03 Middle level management training 03
Indiv.projects in firms 03
Carpenter Centre I (CC) 1997 CC II 1998 Companies development strategy 2000 New Management training 2001 International marketing 2002 National Centre for exellence 2006
Other programmes
LEADER-projects
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Example 2 Development in the food industry

• The theme of the LEADER programme was renewal of
  the food industry, ia by an increase in
  refinement The LEADER process was of great
  significance in the development of this field of
  business.
• Key Question is How can we raise the development
  degree of this business field and initiate new
  business activity? Bio, vegetables, root crops
  and berries, local food. What new support
  structures are needed in order that this line of
  business would develop?
• Projects
• Local food projects (information and activation,
  production techniques)
• Projects which seek to develop new types of
  products and production processes
• Professional area team action projects creation
  of professional area groups
• FoodPark- business park planning project
• Pilot factory project for the food industry
• Business projects e.g. seabuckthorne and flax
  refinement projects

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Example 3Learning regionand the use of ICT

• Learning region is a pilot programme covering a
  wide range of professional fields. The objectives
  of the programme are
• To create and strengthen regional competency
  structures
• To increase regional competency capital
• To develop regional networking (internal and
  external networking of the region)
• The programme is led by the University of Vaasa,
  which has 6 employees in the area
• The key question of Learning Suupohja is
• How do we raise the level of education of the
  area residents and bring learning opportunities
  as close as possible?
• How do we guarantee businesses the availability
  of a capable workforce?
• What kind of new structures should be created to
  support learning? How we can use new technology
  in learning?

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The interaction of learning region makes possible

• Educational equality between towns, rural areas
  and villages, in other words, better interaction
  between urban and rural areas
• Bringing to the vicinity of the students a new
  type of education having many forms
• The possibilities of an open learning environment
• New types of learning bases and the services of a
  resource centre
• Widespread and fast connections provided by
  computer networks
• Arrival of a coordination unit and university to
  the area
• Development and specialization of regional
  cooperation
• An increase in competency capital

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Example 3Learning Regionand the use of ICT

• Learning region ICT-Projects, in which LEADER
  has been a participant
• Regional portal www.suupohja.fi
• includes ia educational, residential and
  employment pages
• Learning base -projects. All in all the region
  has 13 learning bases
• Regional broadband project
• The objective is a broadband network based on
  fibre-optics and covering the entire region
• The network will be built during the summer of
  2005
• 95 of households in the region will be within
  the scope of the network
• Will function on a principle of Open Access (48
  pairs of fibre)
• Household connections 8 Mb at the minimum
• Makes possible e.g. undisturbed transmission of
  a moving picture for interactive education
  purposes

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The Learning Region Model
Seinäjoki
Vaasa Wasa
Suupohja sub-region
Operators

• Corporate University
• Open university
• Professors (2) and
• reseach groups
• 4. Learning bases and
• web-based training
• (Moodle)
• Broadband to
• every village
• Other co-operation
• between schools
• - joint training
• moduls

Regional coodinator
Kauhajoki
Other regions
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6. The SummaryResults, Lesson Learned Future
Challenges

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LEADER process - bottom up-approach

• The best result LEADER has taught the actors
  of the region a new
• manner of action
• use of bottom up-planning processes
• increasing / intensifying regional strategic
  planning
• New actors included in development activities
  (activation
• implementation). Active idea groups were
  formed. This has produced
• new, innovative projects and introduced new
  ideas.
• Through the programme significant development
  processes were
• set in motion, ia
• - Carpenter Centre and development of the
  furniture
• business,
• - linseed flax and seabuckthorn berry
  refinement
• - Kauhajoki Food Park process (pilot factory
  and visitor centre)

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LEADER process - bottom up-approach

• Increased general program awareness and
  competency in the area
• Increased networking contacts nationally as
  well as internationally
• Advanced regional cooperation
• A model for action based on partnership has
  also been the
• basis for the aims and organization of other,
  national funded
• development programme
• Last but not least Naturally, LEADER process
  has also created new
• jobs, new companies and new products.

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Some Future Actions

• Guaranteeing the results of successful
  development processes and preparing the strategic
  programmes of a new programme period
• EU, ia LEADER-type activities
• National programmes
• Continued strengthening of rural competency
  clusters
• Renewing local business activities through their
  support
• Efficient use of the new information network and
  ICT in the area
• Creation of new types of business activities
• Food industry components
• New manners of business in the wood and furniture
  industries
• Design, marketing, process innovations
• Culture of entrepreneurship
• Application of computer technology, for example
  in care services

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• Everyday challenges of the development
• programme process, ie
• How to maintain the activeness of the actors in
  the LAG and in other workgroups?
• How to continue the development of communications
  and interaction
• How to efficiently manage the coordination
  between projects?

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Finally the fundamental challenges

• In order to maintain the active partnership
  process of
• development, we should from time to time ask some
  questions
• do the actors have an adequately common
  understanding of the vision, goals and actions?
• do the actors accept the goals and actions of the
  vision and are they committed to them?
• are cooperation structures and contracts clear?
• is the model of cooperation too difficult?
• do the actors involved have the authority to act?
• diversity of the actors network are all
  essential actors involved?
• are there adequate resources for internal
  communications?
• Exterior challenges
• reacting to and anticipating changing trends.
  Have the right things been done? Well, the
  future will tell us

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LEADER approach The driving force of
development work ?
Thank you for listening. More information
www.suupohjadevelopmentassociation.fi www.suupohj
a.fi