Innovation and Research Cross- Border Regional Development through Public-Private Partnership

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2 Innovation and Research Cross- Border Regional Development through Public-Private Partnership Catarina Segersten Larsson First vice president Region Värmland, member of the ECOS Commission, Committee of the Regions

3 THE COMMITTEE OF THE REGIONS ISSUED THE FOLLOWING RECOMMENDATIONS: The Committee noted in particular that PPP projects must not be seen as a short-term financing solution but must be evaluated from a lifecycle perspective, from planning, conception and funding right up to implementation and operation, by taking into account the fact that the total cost of a project depends on the project's total duration, which can sometimes be up to 30 years. The Committee did not believe that public-private partnerships are suitable in every context; an assessment should be made for each individual project, each public service and each innovation as to whether entering a partnership with the private sector will give added value.

4 POLICY RECOMMENDATIONS THE COMMITTEE OF THE REGIONS: 1. welcomed the intention of the EU and the Member States to implement ambitious recovery plans with the aim of stabilising the financial sector. At the same time the Committee emphasised the importance of regional and local authority involvement; 2. also believed that, in relation to these recovery plans, public-private partnerships (PPPs) can be an effective means of implementing infrastructure projects, providing public services and promoting innovation towards noted in particular that PPP projects must not be seen as a short-term financing solution but must be evaluated from a lifecycle perspective, 4. did not believe that public-private partnerships are suitable in every context; an assessment should always be made as to whether entering a partnership with the private sector will give added value;

5 5. called on local and regional authorities to carefully examine any cross-border leasing schemes for financing public infrastructure or other PPP projects they may already have entered into or which they may be considering for the future, in order to avoid negative surprises and serious repercussions for their budgets; 6. noted that financing approaches vary between the different Member States and therefore public-private partnerships can be used only in certain cases to manage public money more efficiently and implement large projects more effectively; 7. was of the view that public-private partnerships can provide an effective way of managing public investment, but it should be for local and regional authorities to judge which method is most appropriate for any given project, public service or innovation. 8. believed that the EU Structural Funds or the European Investment bank (EIB) can under certain conditions provide funds which may be used to support public-private partnership projects;

6 9. agreed that public-private partnerships can provide one means of overcoming problems caused by climate change. It also agreed that they can be a way of improving growth and employment in EU industry and the public sector; 10. emphasised how important it is to make it easier for small and medium-sized enterprises to be involved in public-private partnerships; SMEs are often an underutilised resource in promoting economic growth and creating long-term job opportunities; 11. it is often also local and regional authorities that are best placed to assess how public services should be funded.

7 Värmland By Lake Vänern, Europe's largest inland sea 16 municipalities 273,000 inhabitants Stockholm Karlstad 308 km Gothenburg Karlstad 248 km Oslo Karlstad 230 km

8 Forests Elks Story-tellers Artists Musicians Experiences Creative entrepreneurs

9 The Paper Province Unique expertise in paper and pulp technology Around 90 member companies with a total of 8,400 or so employees Total turnover SEK 18 billion One of Europe's most successful and innovative clusters

10 The Packaging Arena An interest body in the graphics industry Its mission is to create the packaging solutions of the future Focus on function, design, userfriendliness and environmental consideration Approx. 50 member companies with a total of or so employees Total turnover SEK 22,5 billion

11 Compare Competence Area a cluster in IT and Telecoms (ICT) Drives business and competence development Approx. 100 member companies with a total of 2,700 or so employees Total turnover SEK 3 billion Compare Testlab, a centre for software testing

12 Steel & Engineering Värmland is one of Europe's leading regions for steel and engineering Enterprise, business development, research and development The aim is to strengthen competitiveness through forward-looking renewal 73 member companies with a total of 5,000 or so employees Total turnover SEK 13,3 billion

13 Visit Värmland The great outdoors, water, skiing, culture and commerce attracts tourtist to Värmland. In 2013 the tourism industri had a turnover of SEK 11,5 billion and generated man-years. Visit Värmland is a business association for those who work with the tourism industry in Värmland.

14 Karlstad University Modern, open and innovative A creative meeting-place and an engine in the region's industrial development 12,000 students 80 degree programmes 900 courses

15 Examples of major employers in Värmland Stora Enso Karlstad University Billerud Volvo Construction Equipment Uddeholm Tooling Tieto Rolls-Royce Metso Wasabröd

16 Successful Interregional projects from Värmland

17 FEM is an abbreviation and stands for Renewable energy, Energy efficiency and Environment. It is a cross border cooperation between the Norwegian counties Akershus and Hedmark and the Swedish counties Värmland and Dalarna. The aim of the cooperation has been to contribute to new and greener products, services and workplaces within the FEM region. Between the years 2008 and 2013 the cooperation has been co-funded by Interreg Sweden Norway. FEM has established unique collaboration that has strengthened the region s position in sustainable energy and the environment. The result is new meeting places and networks, and enhanced development of technology. Both supplier development projects and businesses has been established across borders.

18 Examples of FEM-initiatives for energysmart development: Energy parks such as Akershus Eneregy park and Glava Energy Center. Energy League - a meeting place for owners and managers of larger buildings where the participants share their expertise and set new targets. Energy Challenge a project which teaches children about energy efficiency and stimulates their curiosity.

19 ISIS stands for IT and Security in Inner Scandinavia and is a Norwegian-Swedish joint project run by the Norwegian Kunnskapsbyen Lillestrøm, which is a business research center, and Compare Karlstad, a cluster organization for IT and telecom companies. The project is co-funded from Interreg Sweden-Norway and is the result of a longstanding collaboration between the two organizations. It started in January 2013 and has just reached the concluding phase (September 2014).

20 Two main goals for the project: 1. Contribute to the development of research parks within the area of IT and security and strengthen the inter-regional cooperation between them. 2. Establish an inter-regional cluster in IT security, and by this initiate a development project within IT security.

21 Successfull PPP s are about: Knowledge among all stakeholders Creating a win-win situation Not primary about financing but about a long term cooperation

22 Thank you for your attention!