The ESS in Lund – its effects on regional development The ESS, like MAX IV, will be a world leader in its field and ­together these two facilities will be a hub in the European ­research infrastructure and a unique opportunity to create a stimulating research environment. The ESS will contribute to growth in the region and to strengthening the research and development brand of the ­Öresund Region and Sweden. The effects on growth will partly be direct based on the amount of money that is invested in Skåne, partly more long-term and indirect as a result of the significance of the facility for the climate of innovation, techno­ logical developments, branding of the region and possible spin-off effects. How great the indirect effects will be is, however, dependent on how well we succeed in integrating the ESS and exploiting the long-term effects it can provide. Today, Skåne is one of the foremost growth regions in Sweden and the opening of the ESS and MAX IV could be an opportunity to accelerate growth in the region. If the ESS and MAX IV are to be springboards for future growth then a large number of players in the region have to work actively and strategically. Society for Science – Science for Society The ESS is a European research project. The decision on what is to be built, how it is to be financed and where it is to be located is made by negotiations at government level between a host country and the countries that intend to use the facility. The ESS will be a jointly financed European research facility. Building the ESS in Lund will cost around 1.38 billion euros while the running costs are estimated to be 100 million euros per year. A decision on where the ESS should be built is expected during the first half of 2009. Planning is expected to start around 2011. The first neutrons can then be produced in 2018/2019 and the facility completely up and running in 2023. As a continuation of the developments that have taken place at the MAX-lab, there is a proposal that the next generation’s synchrotron radiation facility is built – MAX IV. MAX IV will be the most powerful synchrotron radiation facility in the world. MAX IV will make possible new advances in a wide range of areas such as biomedicine, medicine, material technology, nanotechnology, energy research, geology and environmental science. The ESS and MAX IV complement one another in their study of various materials and can thus create significant synergy effects. Together the ESS and the MAX IV will create a centre that is a world leader in material science and form a hub in the European research infrastructure. is a national Swedish laboratory studying synchrotron radiation. Research is also carried out at the MAX-lab into accelerator physics and a branch of nuclear physics that uses energy-rich electrons. The MAX-lab in Lund What are the ESS and MAX IV? How scientists can better understand many of the illnesses for which there are no cures today. is planned to be a world leader for material research and life sciences where neutrons are to be used to screen a wide range of materials from proteins and plastics to medicines and molecules at the atomic level. Neutrons are used today by scientists in a wide variety of fields – chemistry, biology, engineering, archaeology, environmental technology, energy, life sciences. Neutrons have been used to find advanced solutions to materials that are found in many objects around us – cell phones, consumer products, packaging, detergents, aircraft wings and car engines. They have been used to make processes for cleaning water and soil, and to make environmentfriendly paints. The ESS will also make it possible for scientists to acquire know­ ledge that is impossible today. Unlike existing neutron sources, the ESS will primarily be used as a more powerful tool for life sciences. The ESS is expected to contribute to knowledge on things like: The European Spallation Source (ESS) How transport can be made more effective and less energy demanding. How catalysts can be improved. MAX IV SCIENCE CITY Technology and research laboratories Overview of the location of the ESS and MAX IV in north-eastern Lund Visitors’ centre Superconductors for energy transmission without losses. Target station Tailor-made materials with nano techniques. Travel terminal To Lund C: 10 mins. To Copenhagen Airport: 30 mins. How consumer products such as detergents and cosmetics can be improved and made more environmental friendly. How batteries can be improved for example for electric cars. Linear accelerator How biofuels can be made from agricultural waste instead of from cereals. Understand the powerful greenhouse gas methane which is primarily bound up on the seabed but which is a tremendous climate threat and an enormous energy reserve. The new proteins that are expected to be a major part of tomorrow’s medicines. Neutron source How historical objects like fossils, coins and glass can be understood and how valuable works of art can be preserved for the future. How human DNA functions in living cells. New medical implants that are tolerated better by the body. Source: ESS Scandinavia How gene therapy can cure serious virus infections. Photo: Stadsbyggnadskontoret Lunds kommun LED display Examples of the benefits of neutron research Photonic materials Digital camera CCD chip Cosmetics Glasses Artificial lenses TiO2 Nano particles Photonic polyms Optic materials Cell phone SWA structures Bicycle frame Carbon polymers Artificial hip Biocompatible fibres Pacemaker Lithium batteries VISION 2030 Society for Science – Science for Society The ESS and MAX IV have been the bases for several and building projects in the region. New landmarks see If this vision can be realised it requires a creative imagination, a totally committed regional of the researchers who have been awarded Nobel the light of day and are discussed in an increasingly management and an interactive community that melds global opportunities with regional Prizes. This has meant among other things that the globalised world. Visiting the region gives an infusion of entrepreneurship! results from the facilities break all records for income, energy and confidence in the future! social benefit and goodwill in relationship to the costs The Öresund Region remains the place for prestigious Society for Science, which lays the foundations for a incurred. It has also meant concrete growth in the form investments in various types of research infrastructure. research culture that gives payback through Science of new companies and jobs in all aspects from manu- The region gives impetus to prosperity and growth, for Society, that is to say research in the service of facture of components for the facilities in Tollarp and and is a world leader through its international materials Man and Nature. The region with its renowned Öresund Östra Göinge to new cutting-edge companies within research institute. The ESS and MAX IV are multidimen- University and its two fixed links symbolises ‘regional bio-tech. This is mainly due to the innovation system sional springboards that enable the Öresund Region to internationalisation’ and a bridge between the commu- finding new, creative functional forms of cooperation step into the Europe of the future with all flags flying. nity, trade & industry and research built on the attitude where not least Ideon 3.0 and Lund University Innova- that each needs the others. The concept of Helix Lund, tion Capital have succeeded in attracting international via Helix Skåne and Helix Öresund, develops into Helix risk capital. This is also highly positive for the Öresund Baltic as a result of the extensive links with Hamburg. Region’s high ambitions for providing skilled workers The ESS and MAX IV make the Öresund Region a more interesting, attractive and well-positioned knowledge innovation community with a justifiable world reputation based on relevant scientific excellence. The Öresund Region is distinguished by a uniquely visionary, innovative and practical cooperation between various sectors in society based on entrepreneurship at all levels from basic research to commercialisation of future technologies within many scientific fields, not least energy, the environment and the life sciences. The Öresund Region is a clear example of how a ­dynamic and integrated innovation system creates a By investing in the ESS and MAX IV new advances and scientific breakthroughs have been achieved which and integrated worker immigration. That the attraction of the Öresund Region as a brand has led to insoluble problems being solved! The most has increased and developed into one of Europe’s concrete expression of the facility’s public successes is most interesting and respected is quite natural at the that sustainable developments within the environmental same time as its drawing power is continually ampli- and energy fields have been made possible through fied through creative investments in the infrastructure, the results obtained from being able to study individual public services and the arts. The attractive architec- hydrogen atoms in the ESS. tural and social design that characterise the facility has rubbed off in the form of many major investment Because Sweden dared commit itself to both the ESS and MAX IV at the end of 2008, the region has developed and grown exponentially. There is continual discussion in the international media of a practical academic entrepreneurial region that is accelerating, expanding, investing, innovating, commercialising and integrating. What everybody is discussing is the ‘story’ that has developed around the Öresund Region as a centre of learning and growth, and is now also renowned for its intellectual and imaginative tourism and interactive Science Centre that has developed thanks to the ESS and MAX IV. The springboard to the vision The whole ESS and MAX IV process is a balancing act between the ability of ESS and MAX IV to deliver scientific excellence on the one hand, Science for Society, and on the other the community’s creation of the necessary requirements for ESS and MAX IV, Society for Science. 2030 The question everybody is asking is: How could one get so much more than “just ­research” from two facilities? It is all about collaboration and co-design, in other words cooperation. A short description of just how value creation (contribution) is expected to flow between the community and the ESS and MAX IV is given below. Science for Society Society for Science The ESS and MAX IV in cooperation The efforts of the community in cooperation Growth Contributions from the ESS and MAX IV to the ­surrounding community: Contributions from the community to the ESS and MAX IV: An international, world-class materials research centre in the Öresund Region that focuses on future business areas including Space, Telecom, The answer to this question from all the leading players in the region is: We dared to put aside our own special interests and agendas and concentrate on what was best for the ­region as a whole in everything from ­attitudes to cooperation to planning models and the creation of ­legi­timate regional leaders in all sectors of the ­community who relate the story of the future. Developing the innovation system even further. Well constructed communications and infrastructure that make the region fast, environmentally adapted Nano-tech, Bio-tech, Clean-tech and Medicine. and time saving. Create the conditions for interdisciplinary ­research in the service of society and mankind. Exciting meeting places and challenging architecture that give the region an identity and make it A unique research environment constructed that attractive. attracts world-class researchers to the region that, in turn, will attract capital, companies and A well planned and thought out child care and schooling system in the right locations. High other entrepreneurs. quality international schools. Education capacity in the region that emphasises natural sciences and technology and collaborates with the facilities and services them and the rest of society with the relevant skills in the correct volumes. An exciting international World Citizen Village where there is a high density of network/relations, The slogan is: culture/leisure, talent/skills, discovery/application “What’s in it for us”, not “what’s in it for me” words A World Leading Knowledge Hub. in academics, business, associations etc.; in other 11 Effects in the long term 2018–2040 technicians. It is therefore of great importance to increase the interest in technical education and that the country’s colleges and universities turn out a sufficiently large number of engineers. Following the completion of the construction of the facility there are primarily two factors that will affect growth in the region; the first are the running costs; these costs are estimated to be approximately SEK 1 billion per annum. Although the second is more difficult to quantify, it is also the most interesting in respect of the spin-off effects or spill-over; in other words will the facility attract other companies to the region to be close to the facility? Since education has been internationalised and there is now an international market for students and scientists, it is equally important to become one of the most attractive places to study and do research in order to retain the newly qualified students in the country and to attract students and researchers from the rest of the world. Effects on the property market The effects of the ESS on growth and various sectors Effects during the pre-construction 2009–2011 The growth effects of the ESS fall into two main categories. The first is a direct result of financial investment that will create new job opportunities as well as a demand for goods and services, and secondly a rather more difficult to estimate effect that is the result of the facility’s importance for technological developments, the innovative climate and the possible spin-off effects. In the estimates that have been made, the long-term effects are considered to be the greatest. If the ESS leads to long-term positive effects on the innovation system, and the creation of technological solutions that can be converted into competitive companies and products, the effects of the facility can be relatively large. If this does not turn out to be the case, the effects on the region’s growth will be marginal. In other words, it is of significant importance as to how the facility is received by the local community. Assuming that the transfer of knowledge and technology between the research world and the business sector works so that discoveries are converted into new products and production processes, the ESS could result in: It is fair to assume that the final decision about the siting of the ESS facility in the Municipality of Lund will affect expectation values, for example an increase in land values based on expectations of future exploitation. The initial decisions concerning the acquisition of the nece­ ssary land are affected by the general expectations of growth in the region and municipality. The ESS facility can be a positive trigger to acquire additional land in this geographically attractive area. 0.08 per cent higher GRP/year An increase in the number of jobs by 700 /year The scope of the research at the ESS and MAX IV can open the way for the creation of research and businesses in new fields in the region. Assuming this increase in growth, the effect on the housing market would be an increase in demand of about 500 homes per year in Skåne as a result of the ESS. This can be seen against the background of an average increase of 3,500 homes per year over the past decade, nearly 4,700 over the last five years and a goal of 5,000 homes per year in the regional development programme. Effects on the public services The ESS could mean an increase of some 200 foreign children and adolescents. This creates a need to expand the international kindergarten and school as well agreements between the municipalities in Skåne. An increase in the number of office workers would mean an increase in demand for office space. If 50 per cent of the total increase in fulltime jobs of over 7,000 per year comes from office workers this means an increase in demand of around 7,000 m² of office space per year because of the ESS. This can be compared with the annual demand for office space by LTH and Ideon which is put at 12,000 m²; this includes Sony Ericsson. Effects during construction 2011–2018 Effects on the infrastructure The cost for the ESS facility is budgeted at 1.38 billion euros. A large part of this investment will benefit the region in the form of wages etc. Parts of the facility will be manufactured outside the region. We assume that 30 per cent of the investment will be spent in the region. Over and above the direct investment there will be multiplier effects as a large portion will be in the form of wages that will benefit the economies of other parts of the region. This means that the effect of the investment in the facility will be greater than the actual investment sum. Based on the assessment that 23,000 new fulltime jobs, on average 700 per year, are created in Skåne then this means that, given that the transport system is expanded at the rate required to cope with the increase in traffic even without the ESS, the planned traffic system can cope with the increase in travelling generated by the ESS. A major expansion of the infrastructure is necessary even without the ESS and will be even more necessary with the ESS. “The town/region that has the most ballets, theatres and symphony orchestras wins” (Arthur Bienenstock, Professor at Stanford University working at SNS and former scientific research advisor to Bill Clinton). The municipalities believe that the arts in each town and region are of an international standard. It is important to maintain and develop the arts that in this context are competitive and internationally acceptable. Are there cultural activities that in this context are competitive and internationally acceptable? The ESS projects will mean the holding of international events, exhibitions and conferences that will demand various cultural programmes. The region of Skåne also has great natural attractions such as Brösarpsbackar, Stens huvud, Hovs Hallar, Ales stenar as well as the close proximity of the sea which from an international perspective are both exotic and exciting. Effects on research and development Building the ESS makes great demands on the community in general to supply the facility with highly skilled scientists and 23,000 more jobs by 2040 An accumulative higher GRP of SEK 214 billion by 2040 12 13 Various scenarios The future Qualitative Innovative cooperation Quantitative Growth NB! This growth is dependent on the innovations system in the region functioning. Vision Actively cooperating community 0.08 % higher GRP/year, SEK 214 billion until 2040 Cross border regional leadership 700 more fulltime jobs/year Cooperation between the ESS and MAX IV Exploit the ESS as an active catalyst Joint ownership of the vision Strategic communication externally/internally, nationally/internationally 500 more dwellings/year Society for Science ESS MAX IV The region Science for Society 7,000 m² higher demand for office space/year Major upgrading of the infrastructure Expansion of the international school Experiences from similar facilities According to the plans, the ESS will be the world leader for this type of facility from technological and scientific points of view. But other criteria such as level of service and cultural capital will determine researchers’ choice of facility to do their work. It is quite clear that the ability to attract skilled staff from various disciplines is decisive. The purchase of technical equipment etc that is needed for the running of the facility is generally purchased locally. The Institut Laue-Langevin in France, for example, has an annual purchasing budget of approximately 80 million euro; 75–80 per cent is purchased within the country and the greater part in the immediate region. Contingency plans are required for: The facilities – such as the ESS – that are financed by several countries run greater risks of becoming enclaves with a lesser degree of exchange with the surrounding community. Openness and cooperation are two key ingredients for success. One example of a facility’s direct effects on the community is that local and regional suppliers benefit and there is an upswing in the business visitor/tourist industry. Present position: strong Position, skills, brand, infrastructure 14 15 – Communication investments – Long-term territorial brand building – Clarification to meet local opinion – not least with respect to matters related to the environment Conclusions The community cooperating practically The effect of the ESS on growth in the regional economy is estimated to be 0.08 per cent per annum, or, in other terms, an accumulated GRP of SEK 214 billion by 2040; this is providing that all the stakeholders cooperate, that is to say the various sectors of society. Cross-border regional leadership Cooperation between ESS and MAX IV The ESS and MAX IV illustrate that 1+1=11, that is to say there is a marked synergy effect. This is primarily about positioning the region and Sweden as a future, state-of-the-art research player that can help solve a number of the big questions about the environment, energy and technology that will result in sustainable, long-term solutions. The Continuing process The global cooperative community of the future requires a high level of interaction, cooperation and joint production by the key players from the various sectors of the community (e.g. region, municipality, state, private companies, nonprofits and committed citizens). In order to create the optimal conditions for Society for Science, the ESS areas/issues that are judged to be the most urgent should be identified. Region Skåne, the municipalities of Skåne and other public authorities as well as Danish representatives are invited to participate in the work together with residents, members of the academic and research communities, the business community and other organisations to a continuous process that is characterised by part ownership, interaction and concretising. The region’s attractiveness is a key question Skills gravitate to creative environments. In global competition the skills at the facility will be almost as transitory as global financial capital. It therefore follows that the matter of how to hold on to people who have strategic cutting-edge skills and keep them in the region is vital, this is a knowledge assurance factor. The appearance and function of the community will play a major role in this area. Catalyst for growth Deliberately use the ESS/MAX IV process as a strategic catalyst for regional growth in close cooperation between all the players in society. Special focus should be put on the players that are connected to the various universities in the region. Creating an attitude for success Externally/internally – The benefit of the ESS facility (that is to say how the results of the research work carried out in the facility will affect both research and the daily lives for people in the future) have to be communicated to the community on a wide front. National/international – The connection between the national and regional/local levels have to be strengthened so that Sweden, the Öresund Region and Lund shall get the maximum possible return on the investment. The international dimension is also important. This applies to the different facilities in cooperation with other similar facilities as well as the possibility of acquiring new international capital. In a closer perspective it is about cooperation in the Northern European region, that is to say Lund, Copenhagen and Hamburg. Without taking prestige into account, intra-organisational cooperation between the Municipality of Lund, Lund University, ESS and MAX IV is necessary in order to create a better concentration of effort at the national and international levels. A clear and legitimate regional leadership has to be created that manages the coming ESS and MAX IV processes – irrespective of the sector of the community. Regions and municipalities in Sweden and Denmark have a responsibility to create value for themselves and other players by acting strategically in the process. Strategic communication Joint ownership in the vision A committed joint ownership in a common vision is a premise for success with this/these mega-projects. In the future all the different players who have an interest in the ESS and MAX IV need to coordinate their own visions and strategies with the ESS vision to maximise effectiveness. The ESS and MAX IV are megaprojects that strengthen the local and regional attractiveness The ESS and MAX IV are good examples of the type of mega­ project that is needed for Sweden to strengthen its international competitiveness and to boost the legitimacy of Skåne and the Öresund Region as a Global Knowledge Innovation Zone. 16 It is necessary to create engagement and participation in an interactive and mutual future process based on three key dimensions: – Focus on attractiveness and the brand – A society that facilitates scientific excellence – Society for Science – A research structure (ESS/MAX IV) that delivers technical and scientific breakthroughs in the major questions – Science for Society In conclusion The greatest risk with the ESS project is that the players in the region (irrespective of their level in the community) do not exploit all the opportunities that the facility, in combination with MAX IV, generates. The players in the region need to have a joint picture of what makes the difference, stands out and attracts attention, and what goes without saying in a leading knowledge region that is exposed to international competition. A wider discussion and support are needed on acquired experience and current research within the field of strategic regional development. Allow future visions and strategies within the region to create new, exciting logics and sometimes with new concepts that have a unique, fresh content. A new focus on social and intellectual capital is needed based on the dimensions knowledge capital (the individual), structural capital (the organisation’s support system) and relationship capital (social intelligence or organisational intelligence). 17 The project As commissioned by Region Skåne, PricewaterhouseCoopers has carried out a study on the expected effects on regional development as a result of siting the ESS in Lund. The project has been jointly financed by Region Skåne, Malmö City, the Municipality of Lund, Helsingborg City, the County Administrative Board in the County of Skåne and EU’s regional fund. Our time frame is to set our sights on 2020 with 2040 on the horizon. To get a better understanding of what we are looking at, if we turn the clock back to 1976 we would be setting our sights on 1988 with 2008 on the horizon. During this time there has been an oil crisis, improved EU collaboration, the fall of the Berlin Wall, a global IT revolution and the opening of the Öresund Link. Malmö has changed from an industrial city to a knowledge and service industry centre. Over and above this, what nobody believed could ever happen has happened, a global finance crisis. This fact is unlikely to have any marked affect on life in 2040 and the longterm decisions that are now being taken, but, in the short-term, the establishment of the ESS facility will be even more important for the region. The quantitative analysis is primarily done in three stages. The basis is the historical growth pattern of the region and a future growth forecast for the whole region without including the ­effects of the ESS. Using this, the anticipated effects of the ESS on ­primarily growth in various sectors, including the housing market and infrastructure, are studied. The qualitative analysis has its origins in an analysis of the world situation, a questionnaire, interviews and seminars that have resulted in a proposal for a common view of how the ESS (together with MAX IV) affects the development of the region in a number of fields. The two tracks in the process are conditional on one another. The vision cannot be realised if the assumptions and measures that are indicated quantitatively do not occur and are implemented combined with a qualitative interactive process. The aim of the report is To produce a common vision of how the ESS can contribute to developments in Skåne and the Öresund Region with its sights on 2020 and with 2040 on the horizon. To clarify what opportunities and challenges building the ESS in Lund means for the region. To create the basis for a constructive discussion of common visions as well as various scenarios and strategies for action through a broad and transparent process. To give Region Skåne, the municipalities in Skåne and other players information for strategic preparedness for action. To increase regional involvement in, and understanding of, the establishment of the ESS in the region by employing a trans­ parent development process with a high level of participation. The overriding question: What are the possible and likely effects on regional development of the building of the ESS? How has the study been carried out? The study has been made in two parallel tracks – one qualitative and one quantitative. The quantitative analysis describes the effects the siting of the ESS in Lund can have on various sectors. For a number of these sectors, the starting point is, in what way will the ESS affect the innovation climate, economic growth and employment. Other sectors are more concerned with what will be required with respect to functionality and attractiveness. 18 THE EFFECTS ON REGIONAL DEVELOPMENT WHEN BUILDING THE EUROPEAN SPALLATION SOURCE (ESS) Project manager Charlotte Lindström, Department for Regional ­Development, Region Skåne Project secretary Therése Nilsson, Department for Regional Development, Region Skåne Text and analysis Öhrlings ­Price­waterhous e­Coopers English translation Mark Wells Layout ­Informationsfabriken, ­Helsingborg Printers Ljungbergs, Klippan No. of copies 3,000 Published by Region Skåne, ­Department for Regional Development (2009) POLITICAL CONTROL GROUP Region Skåne Christine Axelsson, Pia Kinhult Municipality of Lund Anders Almgren, Mats Helmfrid Helsingborg City Mats Rosdahl, Sven-Åke ­Tannerstig Malmö City Julia Janiec, Patrick Reslow PRODUCTION TEAM Municipality of Lund Jan-Inge Ahlfridh, Inga Hallén, Matts Hansson, ­Christer ­Källqvist, Fredric Palm, Peter Sörbom Helsingborg City Stellan ­Folkesson, Helen Mårtenson County Administrative Board in Skåne Elin ­Henriksson Lund ­University Marianne Ekdahl Malmö City Jan Haak, Magnus Hultgren, Kristina Ohlsson ­ Region Skåne Douglas Almquist, Jerker ­Bjurnemark, Carina Johnsson, Ola Richardsson This is an abridged version of the report The ESS in Lund – its effects on regional development. A complete copy of the report is available at www.skane.se/ess www.skane.se/ess EUROPEISKA UNIONEN Europeiska regionala utvecklingsfonden