| Authors |
Roos, G; Ahlqvist, T; Dufva, M; Kettle, J; Vanderhoek, N; Hytönen, E; Niemelä, K; Kivimaa, A; Valovirta, V; Loikkanen, T |
| Abstract |
This paper discuss how regional economic renewal can be achieved within a region that is highly dependent on a traditional low value added industry with relatively low technology level and the competitiveness of which has declined, over a short period of time, to a level where economic viability is questionable. The approach is built around government intervention to reduce the information asymmetry between local players and global state-of-the-art whilst simultaneously instigating a culture shift enabling cluster development for the implementation of identified transformation pathways. The project involved the establishment of a policy framework with a balanced supply side tool, information provision and demand side tool portfolio. This was then followed by a mapping of the local value network and its participating actors to identify their present status as compared to world best practice. Following on from this, there was construction of alternative strategic technology roadmaps which differed on the raw material lenses used, time lines, competence levels and investments. In parallel with this there was communication and engagement processes to enable a self-organised cultural shift towards a situation conducive to initiating industry led clusters. The early successes are identified as well as indicators for the desired trajectory being followed. Purpose - The purpose of the research is to capture a novel approach to regional economic renewal through the application and synthesis of approaches from several different domains. The theoretical lens, the tools, the process and the outcomes are described. Design/methodology/approach - The approach taken was descriptive with the roadmaps adding prescriptive conclusions, and hence the studied project is in its own right was both descriptive and prescriptive. The methodology is a triangulation of theory and literature review, empirical data collection, qualitative and quantitative analysis as well as observation of outcomes. Originality/value - This methodology puts in evidence of integrating methodologies from foresight, strategy, social science, policy science, innovation studies, cluster studies and Schumpeterian economics 1. The combination of methods adds to the current innovation management and industry renewal theory. Practical implications The main outcomes of the project are (a) the changed attitude among the value chain participants, (b) the identified renewal trajectories, (c) the identified and verified balance of policy tools for economic renewal, and (d) the acceptance of cluster development as an industry led route to success. The combination of these methods adds to the current innovation management and industry renewal theory and generates, at least, three implications. Firstly, the integration of company assessment, value chain analysis and identified renewal trajectories created new opportunities, but also new challenges, on both the micro and meso levels. Secondly, the future- oriented, lens specific, global view was a new approach among the regional players that formed a cornerstone in raising awareness about the needs to collaborate and form a joint strategy and it also provided an educational input for policy makers dealing with regional industrial development in a new way. Thirdly, the project also had a strong policy perspective that focused on the interaction between path dependency and path creation in a technologically very dynamic domain and within an agglomeration economic and Schumpeterian framework. The project had both practical and managerial implications: Firstly, the company assessment identified domains where individual firms had weaknesses as well as where the group as a whole lagged global best practice. Secondly, the value chain analysis showed strengths and weaknesses of the present industrial structure in the region, but also delineated the necessary components to be developed in order to move towards highervalue added production. Thirdly, the renewal trajectories identified the present and future operational frontiers in advanced cellulose fibre-based industries, and made possible a successful positioning of the Green Triangle region, the regional industry and the individual firms for future success. Fourthly, the project has generated a high level of international interest resulting in several high-value adding cellulose fibre related firms approaching the region for potential relocation. The study contributed to the creation of a future-oriented strategic agenda for the Green Triangle region on the macro, meso and micro levels. The integrated approach created in the project will also benefit innovation, industry and innovation policy, and industry and regional transformation and renewal scholars. Individual companies can apply the assessment framework and key transformation trajectory findings in their own strategy work. It can be concluded, as evidenced in the main text, that the project is a clear success at this point in time but it remains to be seen what trajectories the path creation in the Green Triangle will take into the future. |