INTERREG IIIC Sub-Theme Working Group
"Youth for Innovation"
Sector profiles
March 2006
I.
General Introduction
Background
1
The City of Oldenburg (DE) as lead participant in co-operation with five partners from
Andalusia (ES), Lubelskie (PL), North Karelia (SF), South Aegean Region (GR) and Upper
Austria (AT) is working together in the project "Youth for Innovation" (Y4I). This
project is funded by the European Union within the Regional Framework Operation (RFO)
"Change on Borders" under the INTERREG III C programme. The core objective of the
project is the exchange of know-how and experience concerning the cross-border
utilization of schools/universities as instruments for regional development.
Objectives of the project
The activities of "Youth for Innovation" aim at training and education of young people
between 15 and 30 in all aspects of innovation. For this the basis is the development of a
modular system of three "innovation curricula", which can be used in the final years of
general schools, vocational schools, universities and polytechnics. Pupils and students
should be motivated to develop mini-research-projects concerning questions with
relevance for the regional economy. For the implementation of these projects a support
system was developed. It comprises an "idea and cooperation pool", which delivers
ideas for the "mini-research projects". Also a "mentor pool" of experts who are going to
support the young researchers and their projects will be set up.
Purpose
To offer basic information to the pupils, students and their teachers four templates with
information of the six participating regions were prepared. The templates are concerning
the following issues:
a) Template 1: Educational Systems
b) Template 2: Regions Profiles
c) Template 3: Sector Profiles
d) Template 4: Business and Innovation Culture Report
The actual Template 3: "Sector Profiles" gives an overview about the selected economical
sectors agro-business, tourism, environmental technologies, IT-sector and mechanical
engineering of the participating regions and their neighbouring regions. The partners
agreed on these sectors to facilitate the coordination for the development of the
curricula. The branches have the same importance for every participating region and
cover the whole spectrum of innovative ability.
Contents
In the beginning the template gives a first overview about the five relevant branches in
the region. Afterwards the actual situation, the importance as well as relevant players are
shown in detail. At the end of every chapter the relevant economical chapters of the
neighbouring region are described.
II.
Weser-Ems (Germany)
a) Introduction
2
In order to get a first overview about the Weser-Ems region, some structural data is
described below. This makes it possible to rank the area in relation to the Federal State
Lower Saxony.
According to the statistical region code „NUTS” of the European Union the Weser-Ems
region is one of four NUTS II regions in Lower Saxony. In addition to Weser-Ems exist
the regions Braunschweig, Hannover and Lüneburg. The Weser-Ems region is located in
the north west of Germany and in the relative outskirts of European centres. Overall the
area covers an area of about 15.000 km²; in comparison this is nearly equivalent to half
of the kingdom Belgium. In twelve districts and five independent cities of the region live
about 2.5 million people, this means a proportion of 30,9 % of the total habitants of
Lower Saxony (cp. tab. 1). The following economic data of the Weser-Ems region
corresponds to this data: The number of employees, with an amount of 30.5 %, lies
lightly underneath the average and the number of enterprises, with an amount of 31.9 %
lies lightly above the average of Lower Saxony. However the economical importance of
the Weser-Ems region is mainly clarified by a share of 37.4 % in the total exchange of
the economy in Lower Saxony (cp. tab.1).
Tab. 1: Structural date of Weser-Ems and Lower Saxony
Weser-Ems
Area in km²
Lower Saxony
Share of Weser-Ems
in Lower-Saxony
14.966,2
47.619,6
31.4 %
2.472.394
8.000.909
30.9 %
Employees 06/2005
703.800
2.305.451
30.5 %
Enterprises 12/2004
100.085
313.930
31.9 %
94.087
251.579
37.4 %
Habitants 12/2004
Exchange 2002 in Mio. Euro
(Source: NLS, 2005: K70G3531, K1000014, M1001696 and NLS, 2004: Unternehmensregister;
own calculations)
The economical structure in the Weser-Ems region is characterised by a large diversity
of economical branches. Because of the location at the North Sea the northern parts of
Weser-Ems are dominated by maritime industry. Due to the hinterland connections you
can also find many companies from the logistic service sector within the region. In
addition tourism and food production are very strong in Weser-Ems, because of the
spatial conditions of the region. Other important sectors are the construction of vehicles,
plastics processing, the textile and electrical industry as well as mechanical engineering.
There is a close connection to the environmental technologies in the field of renewable
resources and energy production. High innovative sectors like IT are especially growing in
the centres of the region (Oldenburg, Osnabrück).
Within the region partially exist explicit structural differences, which are primarily
caused by the available natural landscape and historically grown economical structures.
The following map (fig. 1) gives an overview about the location of the five relevant
sectors and their different importance for the parts and districts in Weser-Ems. The circle
diagrams show the share of the several sectors in the total sum of the five sectors within
the several districts. The height of the circles is the share of the five sectors in the total
3
employment of the several districts.1 The selected sectors will be described in the
chapters a) until e).
Figure 1: Relevance of the selected sector and share in the total employment of
the districts
*
**
%
* Agriculture & food industry
** Hotel & restaurant services, health
care, veterinary and welfare
(Source: NLS, 2002: M70E3031 and OFFIS, 2005:
IuK-Wirtschaft in Weser-Ems (values from 2002);
own calculations
No data of mechanical engineering and
IT-sector in LK Wittmund und SK Emden
b) Agro-business sector
1
Due to an inadequate data situation it was methodical not possible to integrate the sector environmental
technologies (cp. Chapter c) into the figure. Therefore only four of the relevant sectors are illustrated by the
following map.
4
General description
The agro-business covers the branches agriculture, food production, preliminary
and downstream branches of industry respectively services here.
The economical data of the Federal Republic of Germany demonstrate that agro-business
in Germany has continually lost its importance. Only 1.15 % of the total employees work
in the agriculture, 2.54 % work in the food industry. In contrast to this situation the
production and processing of agricultural good and food is further one of the key
competences in the Weser-Ems region. 2.05 % of the employees are working in the
agriculture and 5.28 % are employed in the food production (cp. fig. 2) in the middle of
the year 2005. This means an amount of more than 52.000 workers which were
employed in the sector agro-business (agriculture: 14.450, food industry: 37.175).
Altogether 44.8 % of total employees of the agro-business in Lower Saxony work in
Weser-Ems and 39 % of all the enterprises in agro-business of Lower-Saxony are located
in the region (cp. tab. 2). The mentioned values demonstrate the extraordinary
importance of agro-business in Weser-Ems in relation to Germany and Lower-Saxony.
Fig. 2: Proportion of agro-business at the total employment 2005 in percent
8,00%
agriculture
7,00%
food industry
6,00%
5,00%
5,28%
4,00%
3,58%
3,00%
2,54%
2,00%
1,00%
2,05%
1,51%
1,15%
Low er Saxony
Germany
0,00%
Weser-Ems
(Source: NLS, 2005: K70G3524; Destatis, 2005: Genesis-Table 13111-0001; Destatis, 2006:
Fachserie 1 Reihe 4.2.1; own calculations)
Tab. 2: Statistical data of Weser-Ems und Lower Saxony
Weser-Ems
Lower Saxony Share of Weser-Ems
in Lower-Saxony
Employees 06/2005
51.625
115.318
44.8 %
Enterprises 12/2004
7.482
19.199
39.0 %
(Source: NLS (2005): K70G3524, NLS (2004): Unternehmensregister; own calculations)
The Weser-Ems Region possesses a unique concentration of intensive animal
husbandry and analogical specialised production- and service-branches in preliminary
and down streaming branches as well as research and development facilities of supraregional relevance (see below).
5
The southern districts of the Weser-Ems Region (Cloppenburg, Emsland, Osnabrück,
Vechta) are partly designated as „Silicone Valley" of modern, marked-focused agrobusiness and food production. Regional emphasis are located in the districts of
Cloppenburg (meat processing, baking goods, feed industry, potato processing),
Ammerland (milk processing, meat processing, horticulture), Vechta (meat processing,
feed industry) and Osnabrück. (cp. fig. 1 and 3) (NIW, 2004: Regionalreport, p. 48).
Fig. 3: Livestock husbandry and share of agro-business in the employment of
the districts in Weser-Ems
%
(Source: NLS, 2002: M70E3031 und NLS, 2001:
Q0990093; own calculations)
The current situation of the agro-business in Weser-Ems permits different chances for the
development of the sector in the future.
6
Because of explicit advantages of location like sufficient production space, traffic
infrastructure and regional concentration of processing industries, the region gets the
chance to become a leading location for animal- and environmental protecting food
production of the highest quality (Weser-Ems, 1998: S. RIS Weser-Ems, p. 19).
Other opportunities are offered in the fields of biological food production and alternative
energies. The district Ammerland is already worldwide leading in the field of horticulture.
In spite of a comparative steady development (with the exception of agriculture) marked
melting processes can be noticed indeed. Therefore the future of the predominantly
small- and middle-sized enterprises is not without risk. Especially the aggravated
competition as a result of the EU-Enlargement to Eastern Europe will generate problems
for the small enterprises (NIW, 2004: Regionalreport, p. 48).
SWOT Analysis
STRENGTHS
 Advantages of location (sufficient
production space, traffic infrastructure,
regional concentration of processing
industries.
 44.8% of total employees and 39% of
total enterprises of agro-business in
Lower Saxony.
 Regional competence-networks,
specialised R&D- und education-facilities.
OPPORTUNITIES
 Chance to become a leading location
for animal- and environmental protecting
food production of the highest quality.
 Biological agriculture and biological
food.
 Advancement of alternative energies
(bio-energy): financial opportunities for
new agriculture.
WEAKNESSES





Necessary structural change in
agriculture.
Only few growing potentials in
inland.
Low export rates.
Increasing income and exchange.
Low innovation rate
the
the
THREATS

Sustained worsening of the agricultural
situation.
 Pressure by environmental politics.
 Competition as a result of the
EUenlargement to Eastern Europe
(Cp. RIS Weser-Ems, 1998: S. RIS Weser-Ems, p. 19)
The most important players and projects in the sector
The so far mentioned statistical data give a first impression of the importance of the
agro-business in Weser-Ems. To comprehend the quality of the sector in the Weser-Ems
region some important facilities and institutes will be introduced below. These players
support a positive development of agro-business in the region. These are for example
Centre of competence for food economy of Lower Saxony NieKE in Vechta, the German
Institute of Food Technology DIL in Quakenbrück, the chamber of agriculture of Lower
Saxony und its research institute LUFA in Oldenburg as well as the polytechnics in
Osnabrück.

Institutions integrating and supporting the sector / cooperation in the sector
7
- Centre of competence for food economy of Lower Saxony NieKE in Vechta
The Centre of competence of food economy of Lower Saxony NieKE in Vechta is a
continuation of the successful Centre of competence of food economy of the regional
innovation strategy (RIS) Weser-Ems and it bundles know-how of every category
group inside the food economy of Lower-Saxony since the beginning of the year 2002.
Basis is a small but efficient office as well as a network of the partners with the help of
decentralized expert centres, the control commission, the research group and groups of
discussion with credit institutes and business developments. Existing potentials can
corporately be used by this network. The Centre of competence of food production in
Lower Saxony tries to improve the performance of the food producing enterprises.
The financing for the period of three years is assumed by the Ministry for Economics,
Technology and Traffic, the Ministry for Agriculture, Nutrition and Forests as well as the
Ministry for Science and Culture of Lower Saxony. Also about 30 enterprises and credit
institutes support the work of NieKE, too. This capital commitment is an expression of
the high acceptance, which developed through the departed pilot phase in the WeserEms region. The local regional administrative bodies in Weser-Ems, which already
financed the preceding pilot phase, contribute likewise your portion to the continuation of
this mechanism. Local authorities also continue to finance NieKE at present
(www.ernaehrungswirtschaft.de).
German Institute of Food Technology (DIL) in Quakenbrück (district Osnabrück)
The German Institute of Food Technology - DIL - is placed in Quakenbrück, in the
centre of the food industry of the northern part of Germany. More than 100 members of
the DIL association are located within the areas of food and feed producing industry,
construction and engineering industry, measurement engineering industry, and process
engineering industry. Since the foundation 1985, DIL realises industrial oriented
research. The business of DIL with over 80 employees is the connection of science and
the realisation of the know-how in the industry. DIL provides assistance in product
and/or process development to interested enterprises. The concept of DIL is the
integrated reflection of production processes. Know-how of production processes will be
combined with skills in a broad range of food and feed products. Experienced staff
members as well as various types of equipment provide the opportunity to solve complex
questions up to construction and engineering of special purpose machines. Furthermore
DIL carries out service analytics (chemical, microbiological, physical), preparation of
official expertises, consulting services, planning plants and machines, and training on the
job additional to the research and development (www.dil-ev.de).
- Chamber of agriculture (LWK) of Lower Saxony and research-institute LUFA
North-West in Oldenburg
The main task of the chamber of agriculture (LWK) of Lower Saxony in Oldenburg is to be
a helpdesk and a training facility for employers and employees in the agriculture and
forestry. In addition to this the chamber of agriculture is engaged in numerous
sovereign tasks. An example for this is the realisation of laws and ordinances and the
administrative transaction in the field of governmental support for agriculture.
Furthermore the chamber of agriculture performs the tasks of the agricultural division
authority opposite to other public and governmental corporation in Lower Saxony. The
associated research institute LUFA North-West covers the Institutes for soil and
environment, for fertilisers and seeds, for animal feed and health and for food quality. It
carries out a broad range of research and valuations (www.lwk-hannover.de).
8

Examples of research and implementation projects realized with universities
Polytechnic Osnabrück
The faculty of agricultural science and landscape architecture is a part of the
polytechnic in Osnabrück. The so called green faculty offers the bachelor study
courses agricultural economy, nutritional science and producing horticulture and the
continuative master study courses land soil protection, sustainable service- and
nutritional economy, as well as product- and quality-management in agriculture and
horticulture. In addition to education in these fields current research and development
activities are conducted at the faculty (www.al.fh-osnabrueck.de).
Furthermore the DEULA in Westerstede and the Gartenculturcentrum of Lower
Saxony (garden culture centre) in Bad Zwischenahn constitute additional competence in
the field of horticulture in the district Ammerland. The 3N – centre of competence for
renewable primary products which also acts in the field of agro-business is described
in chapter c).
Cross-border situation
Also in the in the Dutch neighbouring regions agro-business is an important
economical sector. In the province Drenthe agriculture as well as oil and natural gas
extraction account for around 9 % of employment which is two times higher than in the
Netherlands. Agriculture's share is likely to fall in the years to come. The importance of
greenhouse horticulture is on the increase, with the annual growth rate for the
greenhouse complex in Emmen being above the national average.
The province Groningen in contrast has also a strong agricultural tradition and a
tradition of industrial development which is bound up with it, but with the mechanization
of agriculture, industrialization and increasing competition from foreign farmers,
employment in agriculture quickly diminished from the 1960s onwards. In the past 10
years the number of jobs has fallen by more than 50%. One of the reasons for this is the
basic restructuring in the traditional sectors of Groningen's industries. For a long time
Groningen had a flourishing straw board industry, but this has almost completely
disappeared; the remaining factories have been completely modernized and are less
labour-intensive. Furthermore, the newly arrived industries, such as chemicals, are
capital intensive and provide relatively few jobs. Anyhow some positive developments
within the agro-business in Groningen are recognizable, too. The following example
demonstrates the promotion of agricultural production in Eemsmond.
Greenhouse farming in Eemsmond (Province of Groningen)
Working in partnership with the Municipality of Eemsmond, the Province of Groningen is
developing a new, large-scale greenhouse farming region in Oostpolder, just south of
Eemshaven. This area has a rich agrarian tradition, and if the initiators achieve their aims
it will soon become the main centre for large-scale industrial greenhouse farming.
The benefits of this coastal location are sufficient options for expansion, a favourable
climate powerful energy and logistic structure. The Eemsmond location will provide
sufficient space for a good 200 hectares of greenhouses (net) intended primarily for
companies wanting a large-scale set-up. More than 900 companies have now settled in
the municipality until now. They include many companies in the green sector. Future
market farming workers are trained by organisations including the agrarian training
centre (AOC) Terra. This college provides ‘green’ study programmes at lower secondary
9
and intermediate vocational education level and has twelve establishments at locations
including Winsum, Groningen and Eelde (www.daaromgroningen.nl).
c) Tourism sector
General description
The tourism sector is a „cross section sector“. Classical fields of tourism are
the hotel and restaurant service, travel business and transport services (airlines, shipping
companies, train-, bus and car rental companies). In addition the division of health
care and wellness, which possess large potentials in the Weser-Ems region, are
integrated in the following descriptions of the tourism sector. The sector is already one of
the most important economical sectors in Weser-Ems.
In comparison with the federal state of Lower Saxony (15.85 %) and the federal republic
Germany (14.71 %) the tourism sector in Weser-Ems is nearly equal (in relation to the
shape in total employment) (cp. fig. 5). The amounts of over-night stays in the several
districts of Weser-Ems however illustrate large regional varieties. The hotel and
restaurant service in the districts Aurich, Wittmund, Leer, Friesland (Coastal regions und
-islands) as well as the districts of Osnabrück and Emsland owns an extraordinary
regional relevance (cp. Abb. 1 und 6).
These regions are in contrast to less developed parts of the back-country, which also
began to develop its potentials in the field of tourism.
Fig. 5: Share of the tourism sector in the total employment 2005 in percent
18,00%
hotel and restaurant services
health care, veterinary, welfare
16,00%
14,00%
12,00%
10,00%
12,70%
13,11%
2,70%
2,74%
2,85%
Weser-Ems
Lower Saxony
Germany
8,00%
11,86%
6,00%
4,00%
2,00%
0,00%
(Source: NLS, 2005: K70G3524; Destatis, 2005: Genesis-Table 13111-0001; Destatis, 2006
Fachserie 1 Reihe 4.2.1; own calculations)
10
Classical fields of tourism
The cultural landscape like for example moor, islands, coast and wadden sea is the base
of tourism in the Weser-Ems region. It affords a large diversity of forms within the
tourism sector. These forms base on the great sports and free time potentials of the
cultural landscape like cycling, water sports, tennis, golf and many other recreation
activities. In addition Weser-Ems offers broad range of cultural facilities. Some examples
are numerous theatres and folk festivals, a variety of 150 state-run and public museums
etc. The Weser-Ems region still holds a relatively good cost-performance ratio.
Fig. 6: Overnight-stays and share of heath care in the districts of Weser-Ems
%
(Source: NLS, 2002: Q0990095 and NLS,
2002: M70E3031, own calculation
In the year 2005 the hotel and restaurant services of the Weser-Ems region counted an
amount of more than 13 million overnight stays and about 120 million day trips. This
11
comes up to a share of 42.7 % in total overnight stays in Lower Saxony and underlines
the great significance of the tourism in the Weser-Ems region. However the number of
foreign tourists is comparatively small.
More than 19.000 people are employed within the hotel and restaurant services of
Weser-Ems at present (cp. tab. 3). However the huge number of self-employed and
temporary jobs is not integrated in the statistics of the sector which is dominated by
small and medium-sized enterprises. Therefore the real employment effect of the tourism
and the size of hotels and restaurants is much higher than in table 3. Because of a rising
demand the high-quality tourism will gain in importance in the future.
Health care and wellness
Beside the classical tourism the fields of health care and wellness are also very
important for the economy of Weser-Ems. Scores of prevention and rehabilitation
institutions (48 rehabilitation clinics) are located in the health resorts, spas and
therapeutic baths (e.g. in the district of Osnabrück). Beside exists a tight cluster of
specialized hospitals and doctors as well as technical service providers and companies in
the field of sanitary technologies. In the district of Osnabrück by itself more than 13.000
people (about 14 % of total employees) are employed in the health sector.
The current demographical change and the increasing number of older people in the
near future offer new opportunities for the health sector. Especially prevention cures and
wellness tourism possesses great potentials for the Weser-Ems region.
Tab. 3: Data of the tourism sector in Weser-Ems and Lower Saxony
Weser-Ems
Lower Saxony
Share of Weser-Ems
in Lower-Saxony
Hotel and restaurant services
Employees 06/2005
19.005
63.159
30.1 %
Enterprises 12/2004
10.261
28.081
36.5 %
Health care, veterinary and welfare
Employees 06/2005
89.368
302.176
29.6 %
Enterprises 12/2004
6.825
22.736
30.0 %
(Source: NLS, 2005: Tab. K70G3524; NLS, 2004: Unternehmensregister; own calculations)
12
SWOT Analysis
STRENGTHS
 Great economical importance in WeserEms (e.g. high employment effect).
 Various
cultural landscape,
intact
environment, natural resources, healthy
climate, great sports and cultural
offerings.
 Relative good cost-performance ration.
 High acceptance and competence, selfcontained profile.
 Specialized technical service providers
and sanitary technologies, hospitals and
doctors.
 Number of health resorts, spas and
therapeutic baths.
OPPORTUNITIES
 Positive trends in combination with
quality
and
nature
awareness
of
demanders and providers.
 Tourist potentials of the back-country
(e.g. for new trends in sport and
recreation).
 High significance of cures and spas.
 Increasing number of older people
(demand for preventing cures and
wellness)
 Good approaches for innovative cure
marketing.
WEAKNESSES





Some districts are weakly developed in
tourism.
Small number of foreign tourists.
Low pronounced profile and orientation
on target groups.
Deficient marketing of special products.
Partially insufficient cost-performance
quality.
THREATS


Sensitivity of worldwide tourism.
Competition by other coastal regions
(especially the Baltic Sea).
 Dependence on weather and season
 Current changes inside the health- and
social insurance system
(Cp. EDR, 2001: Interreg III A Programm, S. 57; RIS Weser-Ems, 1998: RIS Weser-Ems, p. 21 )
The most important players and projects in the sector
Some important facilities which support the development of the tourism sector
are settled in the Weser-Ems region. The polytechnic Wilhelmshaven and the Centre of
competence tourism Weser-Ems in Bad Zwischenahn are exemplarily portrayed in the
following section. The tourism sector in Weser-Ems in mainly stamped by small and
middle-sized companies, therefore large tourism companies are not settled in the region.
- Polytechnic Wilhelmshaven
The polytechnic in Wilhelmshaven offer the study course tourism economy which
is known beyond the borders of Lower Saxony. By a practise orientated education the
four years of studies at the academic institute prepare the next generation of commercial
managers in the fields of tourism. The basic study period lasts three semesters with the
focus on the acquirement of academic basic knowledge of economy. During the main
study period the students get toughed in three directions: communal tourism, hotel and
restaurant business and travel business optionally in combination with information
management and media economy
(www.wilhelmshaven.de/bildung_wissenschaft/fachhochschule.htm).
13
- Centre of competence tourism Weser-Ems in Bad Zwischenahn
Another important facility which promotes the development of tourism as well as
cooperation and communication in the fields of the sector in Weser-Ems is the centre of
competence tourism in Bad Zwischenahn (district of Ammerland). With its helpdesk
and services it supports several tourist institutions, federations and municipalities. As an
initiative of the regional innovation strategy (RIS) the Centre of competence engage in
the field of the interior marketing. Other marketing tasks remain as a central business on
the responsibility of established local and regional tourism organisations.
Beside information and consulting services the topic-focused project work is an important
occupation field for the Centre of competence. It helps its partners to implements of
projects and additionally initiates and accomplishes projects by itself. With the help of
the sponsorship by the German economic science institute of tourism at the University of
Munich (dwif) an effective cooperation of know-how and practical experiences for the
tourism in Weser-Ems is ensured (www.ris-weser-ems.de/kompz/tourism/index6.html).
- Education and research facilities of the health sector
Weser-Ems possesses only a few education and research facilities. But capable
institutions are settled in neighbouring regions e.g. at the universities of Hannover,
Münster and Groningen. By the use of information and communication technologies it is
possible to equalize existing deficits in the Weser-Ems region.
In the course of resumption of the new RIS initiative a new Centre of competence for
tourism and health care for Weser-Ems is planned.
Cross-border situation
Because of similar natural conditions in comparison with Weser-Ems the tourism
sector also possesses a great importance in many parts of the neighbouring regions in
the Northern-Netherlands. About 740.000 people are altogether employed in the
tourism of the northern Dutch region. This correlates with a share of 3.8 % of the total
employment (www.nom.nl). However the province of Groningen is comparatively weak
developed and because of a deficient touristic infrastructure it counts relative few
numbers of beds. The tourism sector plays secondary role in this region. The tourism in
the province of Drenthe is more significant. Drenthe benefits from its good overnight stay
possibilities like youth hostels, campsites and other group accommodations (EDR
Interreg III Programm, p. 23), as well as from touristic highlights like for example the
zoo in Emmen or the historical fortress town in Bourtange.
This situation can be illustrated by the numbers of overnight stays in the regions: In the
year 2004 about 2.4 million tourists were counted in the province of Groningen while the
province of Drenthe registered more than 7.8 million overnight stays. However the
numbers of day trips to Groningen (31.3 million day trips) are relatively high in relation
to Drenthe (25.4 million). This is caused by the short way of German tourists who want
to do shopping in the city of Groningen.
Short trips to the regions of the Northern-Netherlands in combination with activities like
cycling are also very famous. This becomes apparent by the so called "Fiet4daagse"
(cycling days) which are a good example for cross-border cooperation in the tourism
sector. An important player for Dutch and German cooperation in the divisions of
14
tourisms is the partnership of convenience Ems-Dollart-Region (EDR) which is also
portrayed in the following part.
- Cycling tourism
About 20.000 people take part at the traditional cycling tour "Fiets4daagse" in the
Ems-Dollart-Region (EDR) between the 25th and the 28th of July. For four days the
cyclists explore the regions Emsland and Drenthe on routes between a length of 40 and
60 kilometres. On their trip they collect controlling stamps at different locations to
achieve a participation medal (www.lingen.de). Another example for cross-border
tourism by bike is the „United countries tour" in the Ems-Dollart-Region. Specific
cross-border cycling routes are signposted also in German and Dutch language. Similar
activities are initiated for boat tourism (by connection of canals) and cultural tourism
(e.g. by cooperation between museums and theatres).
- Partnership of convenience Ems-Dollart-Region (EDR)
An important institution promoting cross-border cooperation between the border-regions
is the Ems-Dollart-Region (EDR). Its aim is to establish and improve contacts between
people, companies and organisations within the border region. Since its foundation in
1977 the EDR has worked on drawing its member's attention to their common interests
in the fields of physical planning, infrastructure, regional economic development and
culture. Above all it wants to strengthen, stimulate and maintain contacts between
people on both sides of the border.
The most important benefit for the tourism sector is the consolidated Marketing
and product development trough the EDR. The cross-border cooperation develops
regional strength and announces the attractiveness of the regions beyond national
borders. In this way tourism organisation develop consolidated activities, flyers and new
strategies (www.edr-org.de).
d) Environmental technologies sector
General description
Environmental technologies in Germany
The sector environmental technologies fulfilled a rapid scientific and technological
development since the 1980´s and it afforded a huge number of innovations. Today
this cross-section industry possesses a great importance and it concentrates on the
prevention of harmful substances and the protection of air, water and soil. Beside
classical services of waste and water management the sector develops technological
products and processes. In this way the environmental technologies contribute to a
future orientated and lasting direction of total economy. The protection of environment
includes among others the production and development of recycling as well as the
efficiency enhancement of energy and water
www.innovation.nrw.de/ForschungTechnologie/EnergieUmweltwasistumwelttechnologie.h
tml).
Especially in the division of sustainable energies the number of employees strongly
increased through the last few years. About 130.000 people in Germany are employed in
the future-orientated branch at present and in addition the practical implementation
of alternative energy sources power the whole economy. The exchange of the branch in
15
the year 2001 was about 20 percent higher then a year before (www.tatsachen-ueberdeutschland.de).
Further on the demand for technologies which protect the environment will increase. Also
because of its dynamic and important cognitions and solutions the environmental
technologies sector will be a growth engine for German economy in the future.
Sector environmental technologies in Weser-Ems
The environmental technologies sector already possesses a substantial significance in
the Weser-Ems region. Emphases are situated in the development and practical
application of sustainable energy like for example wind energy and biomass within the
region.
Regional emphases of wind energy, which is high developed in Weser-Ems are located
in the coastal parts of the region. In harbour cities like Emden and Aurich great
economical potentials can be expected by the settlement of suppliers and constructors of
offshore wind energy plants.
Because of its cross-section character the environmental technologies sector in WeserEms is still difficult to describe by official statistics. The economical divisions
recycling, energy supply, water supply and waste management employ more than
10.000 people in about 1.000 enterprises (cp. tab. 4). Because of the cross-sector
character of environmental technologies these data are merely benchmarks. 2
Tab. 4: Data of the sector environmental technologies in Weser-Ems and LowerSaxony
Weser-Ems
Lower Saxony
Share of Weser-Ems
in Lower Saxony
Environmental technologies
Recycling, energy and water supply, waste water and waste material disposal
Employees 06/2005
10.519
35.263
29.8 %
Enterprises 12/2004
1.052
2.374
44.3 %
(Source: NLS, 2005: Tab. K70G3524, NLS, 2004: Unternehmensregister; own calculations)
2
On the one hand only some parts of these divisions can directly be related to the environmental technologies
sector, on the other hand the number of employees e.g. in the field of research and development are not
included in figure 1 and table 4.
16
SWOT analysis
STRENGTHS
 Great regional and international
relevance.
 Specialised facilities and institutes.
 Business and market structure.
 High rate of innovation
 Good conditions at the location (in
particular infrastructure and human
capital)
 Implementation of the technologies
within the region
OPPORTUNITIES
 Worldwide
demand
for
regional
products and technologies (in particular
alternative/ renewable energies).
 Good
prospects
for
additional
employment and revenues in the
region.
 The region holds out high-value
know-how.
WEAKNESSES


Pronounced foreign orientation.
Relative small number of employmees.
THREATS

Conflicts with other sectors (e.g. tourism
vs. wind energy plants).
 Dependence on German legislation
(cp. RIS Weser-Ems, 1998: RIS Weser-Ems, p. 20)
The most important players and projects in the sector
Though the number of enterprises and employees in several divisions of the sector
environmental technologies possesses increasing tendencies, it is not able to reveal the
relevance of the sector for the economy in Weser-Ems. But it is possible to show the
importance of the sector by the number of innovations and solutions which can be
found in nearly every line of business. Therefore the relevance of the environmental
technologies is to be revealed by the following descriptions of outstanding facilities
and companies in the Weser-Ems region.
- ForWind – in Oldenburg
ForWind Center for wind energy research of the universities of Oldenburg and
Hannover was founded in August 2003. The first part represents the research program,
consisting of nine areas under investigation. The researcher's task is the implementation
of research & development presented projects – the research program is in force for five
years. Due to the constantly funded research program, ForWind is able to conduct nine
projects inter alia the analysis of offshore-meteorology, electricity network connection,
life span analysis or offshore foundation structures. It is a manifested intention to do
research on an internationally comparable level.
ForWind strives for an exchange and a co-operation with renowned research institutions
in Denmark (Risø) and the Netherlands (ECN). Vital stays the orientation towards the
requirements of the (wind) power sector, so the results of the latest research can be
applied to further developments in the industry. The competency centre's task is the
transmission of research results to the industry as well as the acquisition of new research
contracts for the research area (development projects). Moreover the competence team
accomplishes other tasks in the division of services and products. Examples are the wind
17
power forecast program „Previento“ and the software FlaP to optimize the design of wind
parks, both developed at the university of Oldenburg (www.forwind.de).
In the field of wind energy research the German Wind Energy Institute (Deutsches
Institut für Windenergieforschung – DEWI) in Wilhelmshaven also exists within the
region Weser-Ems (www.dewi.de). Another example for cooperation between different
players of the environmental technologies sector is the "energy-cluster" in Oldenburg
(www.energiecluster.de). This network brings together the different stakeholders in the
field of energy in Oldenburg (e.g. companies, research institutions, public
administration). The city Emden also distinguishes itself as an energy location with high
competence.
- 3N – Centre of competence for renewable primary products in Werlte
The Centre of competence for renewable resources of Weser-Ems and the former
information centre bio-energy in Göttingen constituted the 3N centre of competence
for renewable primary products in Werlte (district Emsland). Since the beginning of
the year 2006 it combines both divisions. Supporting organisations of the Centre of
competence are the administrative district Emsland, the German institute of food
technology in Quakenbrück, the Agricultural chamber of Lower Saxony and the
polytechnic Hildesheim/Holzminden/Göttingen.
The 3N center of competence tends on the development and the implementation of
marketable products, production processes and services in the divisions of renewable
primary products and bio-energy in Lower-Saxony. This takes place by an active
cooperation of facilities and enterprises. In addition the centre of competence serves as
a central contact point for information and consulting. Acting fields of the 3N centre
are among others:
The different players of "research and development", "qualification, further training and
test system" and the operationally working 3N competency centre are connected through
the associated 3N network (www.3-n.info).
- Institute for environmental technologies EUTEC
The institute for environmental technologies EUTEC in Emden cooperates with the
study courses bio-informatics, environmental technologies and mechanical / process
engineering of the polytechnic in Emden. EUTEC does environmental relevant
research in the fields of environmental controlling / process improvement, reduction of
contaminants in soil, conditioning of fluids and gas, emissions and immissions analysis,
measurement technologies and renewable resources raw materials (http://spot.fhoemden.de/eutec).
- Deutsche Bundesstiftung Umwelt (DBU) in Osnabrück
The German environmental foundation (Deutsche Bundesstiftung Umwelt - DBU) is
one of Europe's largest foundations and promotes innovative and exemplary
environmental projects. Since 1991, almost 6.600 projects have received financial
funding of about € 1.2 billion. Promotional activities concentrate on small and middlesized companies and the themes environmental technology and research, nature
conservation as well as environmental communication and cultural assets. Supported
projects have to correspond to the DBU-criteria innovation, model character and
environmental relief (www.dbu.de).
18
- Enercon in Aurich and EWE in Oldenburg
Furthermore supra-regional relevant companies are settled beside the illustrated facilities
in environmental technologies sector in Weser-Ems. Enercon in Aurich and Emden for
example is the German market leader of wind energy systems (market share 41.6 % in
the year 2005) (www.enercon.de) and EWE in Oldenburg (services around electricity,
natural gas, information technologies, communication and environment) is the fifth
largest energy company in Germany (www.ewe.de).
Cross-border situation
The energy division in the neighbouring border-regions Drenthe and Groningen
also rapidly developed though the last years. Already 18.000 people (2.4 % of total
employment) are working in the energy branch of the Northern-Netherlands. Beside the
oil and gas extraction the activities of the sector also concentrate on the division
sustainable energies such as biogas, bio-ethanol, bio diesel, hydrothermal upgrading
oil (HTU), and other products on the basis of biomass. An example for this development
is the cultivation and refining of relevant raw materials like potatoes, sugar beet, grains
and rapeseed. The spread across the region is wide, with concentrations of companies in
Groningen, Assen, Leeuwarden, and Emmen.
The project „energy valley“ and the EDR „cross border business meeting“ which are
examples for cross-border cooperation in the region will be described in the following.
The mission of "Energy Valley"
With Energy Valley public and private parties have joined hands to enable the energyrelated activities in North Netherlands (Noord-Nederland) to grow into a cluster of
national and international value. The aim is to strengthen the economy and employment
in North Netherlands by deploying the energy activities in an optimal way. By its nature
the north has the conditions available that give Energy Valley a solid basis: a large
number of activities related to petroleum and natural gas and alternative forms of
energy, as well as a concentration of knowledge of energy and the energy business.
Energy Valley is founded on three cornerstones: Development of sustainable energy;
Expansion of the knowledge infrastructure; Stimulating energy-related business
activities.
The organisation has the task of creating the right preconditions to enable public and
private initiatives to succeed. It plays a stimulating and supporting role for the
companies and institutions that together form "Energy Valley". In this way a broad and
integrated cluster of activities must come into existence that contributes to the economic
development of the north of the Netherlands (www.energyvalley.nl).
Ems-Dollart-Region (EDR)
The EDR supports measures that contribute to business growth also in the sector
environmental technologies. The ‘cross-border business meeting’ for example which
is organised by the EDR offers participants the opportunity to exchange thoughts and
ideas, and to establish and improve contacts. In 2004, around 650 business people
attended the latest meeting in Emden (Weser-Ems). A main topic at the business
meeting in the year 2006 in Aurich (Weser-Ems) is the development of renewable
energies.
19
Normally the EDR does not focus its activities on specific sectors. The projects are
mainly aimed at improving company productivity and business orientation towards superregional or international markets and target groups. In respect of innovation and
technology, they work on improving the co-operation of regional companies with
educational institutions and research institutes (www.edr-org.de).
e) IT sector
General description
IT-sector in Germany
The sector of the information and communication technologies (IT) covers the
production of office machines, data processing devices and mechanisms as well as the
data processing, data bases as well as data- and communication services. Behind the
vehicle construction and the electro-technology / electronic industry the information and
telecommunications sector (ITK) is the third most important industry in Germany.
With about 750.000 employed persons at present and a turnover of 130 billion Euro its
proportion of the world-wide market for information and communications amounts to
about 6 %. Thus Germany is the most important IT-market in Europe and world-wide at
the third position (behind the USA and Japan). The IT-sector is one of the particularly
most innovative industries; nearly half of total economic productivity growth was gained
since the middle of the 1990's by the IT-sector. Additionally its cross section technologies
afford and initiate many product and process innovations in other industries
(www.bmwi.de/BMWi/Navigation/Wirtschaft/branchenfokus.html).
IT-Sector in Weser-Ems
Data from the statistical state office of Lower-Saxony in the year 2002 show a number of
1.224 companies with about 9.000 employees in the IT-sector of the region. This means
a rise of 24.3 % in comparison with the companies in the year 1998 (see tab. 4). Indeed
the large share of temporary jobs is not integrated in the official statistics. However the
IT-sector in Weser-Ems is further on low developed in comparison to Lower Saxony.
The share of the sector in the total employment amounts to only 1.23 % and is smaller
the in Lower Saxony where the IT-sector covers 2.08 % of total employment (cp. fig. 9).
In order to function as a growth engine for other economic sectors the characteristic of
the IT-economy is still too low pronounced in the region today.
20
Fig. 9: Share of the IT-sector in total employment 2002 in percent
2,50%
2,00%
1,50%
1,00%
0,50%
1,23%
2,08%
Weser-Ems
Lower Saxony
0,00%
(Source: OFFIS, 2005: IuK-Wirtschaft in Weser-Ems, p. 46, Data from 2002)
The share of the IT-sector in the total employment of Weser-Ems is comparatively small
even though it embraces nearly 24 % of all IT-enterprises in Lower Saxony (cp. Tab. 5).
The reason for this situation is that the IT-sector mainly consists of small and mediumsized enterprises which employ only few people. More than 50 % of the enterprises
employ less than 10 people.
Tab. 5: Data of the IT-Sector in Weser-Ems and Lower-Saxony
Weser-Ems
Lower Saxony
Share of Weser-Ems
in Lower-Saxony
IT-Sector
Employment 06/2002
8.956
50.186
17.8 %
Enterprises 12/2002
1.224
5.136
23.8 %
(Source: OFFIS, 2005: IuK-Wirtschaft in Weser-Ems, p. 38 and 46)
Although the IT-sector in Weser-Ems developed rapidly through the last years its
characteristic is still too low pronounced in order to function as a growth engine for
other economic sectors. The strongest branches of trade inside the information-andtelecommunication-sector are software-houses and data processing services.
Local focuses of the IT-sector in Weser-Ems are located in the centres of the region,
Oldenburg (where most of the IT-enterprises are settled) and Osnabrück as well as partly
in the district of Osnabrück (cp. fig. 1 and 11).
21
Fig. 11: Spreading of the IT-enterprises in the districts of Weser-Ems
(Source: OFFIS, 2005: IuK-Wirtschaft in
Weser-Ems, p. 25, data from 2002)
22
SWOT analysis
STRENGTHS
 Specialized R&D facilities, universities
etc.
 Public administration and enterprises
are open-minded for IT.
 High innovation rate.
 Cross-section technologies, relevance
for different branches.
OPPORTUNITIES
 Improvement of
cost and offer
situation after liberalisation of the
telecommunication market.
 Remedy of localisation disadvantages
by IT.
 Opening and development of supraregional markets.
 Continuous growth of the branch
WEAKNESSES

Only
a
small
number
of
large
companies.
 Relative small number of employees and
revenue
THREATS

International competition.
(Cp. Weser-Ems, 1998: RIS Weser-Ems, p. 16)
The most important players and projects in the sector
Some supra-regionally known institutes for research and education exist in
the Weser-Ems region: The Oldenburg Forschungs- und Entwicklungsinstitut für
Informatikwerkzeuge und -systeme OFFIS (Oldenburg Research and Development
Institute for Information Technology Tools and Systems), the IT-centre it.emsland as well
as the institutes for informatics at the Universities of Oldenburg and Osnabrück.
Because of the cross section character of the IT-sector exist various interfaces to
other regional fields of competence and economic sectors (for example in combination
with the technology fields bio-informatics, health services and particularly with the sector
mobility).
- IT-centre it.emsland in Lingen
By upgrading of the polytechnics Lingen and the University of Cooperative Education as a
development centre for future information technologies it.emsland support connection
of science and regional economy. In the IT-centre research projects and innovative,
young enterprises are settled and connected since the year 2004. The success of
it.emsland is based on the combination of scientific knowledge transfer and private
economic engagement. Thereby every division of technology, organisation, management
and service are implicated in the strategically action of it.emsland.
Target groups of the IT-centre are students, universities and polytechnics, founders of
new businesses and organisation for further education and training (www.it-emsland.de).
- OFFIS in Oldenburg
OFFIS (Oldenburg R&D institute for information technology media and systems) was
founded on July 6, 1991. OFFIS works closely together with the Carl von OssietzkyUniversity of Oldenburg based on an agreement of cooperation and is allowed to use the
term "An-Institut". OFFIS sees itself as an application oriented research and
23
development institute and as a centre of excellence for selected areas of information
technology and its fields of application.
OFFIS is divided in six research and development divisions which cover the following
divisions: Safety critical systems, embedded hardware- and software systems, healthcare
information and communication systems, business information management, multimedia
and internet information services, microsystems technology and nanohandling.
In this way the institute acts like an engine of innovation for the Weser-Ems region.
Furthermore it is engaged in education and training by symposiums and training courses
as well as on academic basis by the “IT-academy Oldenburg” and the “University of
Cooperative Education for IT and economy Oldenburg”.
OFFIS employs a staff of more than 180 people and possesses a basic financing by the
state of Lower Saxony Ministry of Science, third-party-financing from international,
national and regional Projects) of 9 million Euro in the year 2004. Co-operation partners
are amongst others: Airbus, Opel, BMW, DaimlerChrysler, Deutsche Telekom, Deutsches
Zentrum für Luft- und Raumfahrt (German aerospace centre), IBM, Microsoft
Deutschland, Motorola, Nokia, Philips, Siemens and many more (www.offis.de).
Cross-border situation
The information and communication technologies sector (IT) is also a quite young
and growing sector in the Netherlands. In the year 2000 already 10.000 people were
employed in the sector (nearly twice as much as in the year 1997).
Similar to the Weser-Ems region the sector is also dominated by small and medium-sized
enterprises (two-thirds of the employees work in enterprises with less than 100
employees). According to a demand analysis more than 40 % of the interviewed
enterprises plan to increase their IT-budget and about 47 % of the purchases will be new
IT-equipment. The other part of demand will be reparation purchases because the
hardware and software can be seen obsolesce in many organisations and enterprises.
The Centraal Planbureau expects a rise of 15 % of capital investment in the field of
information technologies. More than two-thirds of the 16 million Dutchmen already
regularly use the internet and in April 2005 about 3.4 million broad band connections
were already established (German Office for Foreign Trade, 2006: The Netherlands –
Economic trends 2006).
Zernike Science Park in Groningen
Groningen is an example for growth of the IT-sector through the last years. More than
29 % of the enterprises in the city belong to the IT-sector. The presence of KPN and
Castel as important economically strategic telecom companies has resulted in a
flourishing IT services sector in Groningen. Zernikeborg (Zernike Science Park) has
become the hub for IT infrastructure in the North of the Netherlands and it connects IT
know-how and facilities such as the university computer centre by a high-performance
broadband network (www.daaromgroningen.nl/en/rubrieken/doing_business/it).
Lofar (Low Frequency Array)
Another example for innovation and high tech initiative in the Dutch IT-sector is the
project LOFAR in Borger-Odoorn near Emmen in the province of Drenthe. Lofar is a
next-generation astronomical telescope which comprises 25.000 single radio sensors, an
ultra-fast terabit data network and a central supercomputer, making it the largest radio
24
telescope in the world. The telescope can look in several directions at once and is able
to change to any viewing direction instantly. Its brief: to search for first-generation stars
and black holes in the early universe immediately after the big bang. By its high-speed
network LOFAR can also provide a trial platform today for the Internet of tomorrow
(www.snnonline.nl).
f) Mechanical engineering sector
General description
Mechanical engineering in Germany
The mechanical engineering sector represents the core of German capital good
industry. On the one hand it supplies complex products for all industries of German
economies and on the other hand it demands sophisticated preliminary products.
Mechanical engineering is the most important industrial sector and it is mainly
represented by middle-sized enterprises.
Nearly 70 % of the 6.000 enterprises employ less than 100 workers (average of the
sector is about 150 per enterprise). Altogether the mechanical engineering sector
employed 868.000 workers in the year 2004 which corresponds to a regression of 1.9 %.
Because of an export rate of more than 70 % the sector is strongly orientated on foreign
markets (www.bmwi.de/BMWi/Navigation/Wirtschaft/branchenfokus.html).
Mechanical engineering sector in Weser-Ems
Not only in Germany but also in the Weser-Ems region the mechanical engineering
sector is one of the most important industrial branches. Nearly 22.000 people (in the
middle of the year 2005) were employed in 884 mechanical engineering enterprises in
the Weser-Ems region. This is up to a share of 3.12 % in total employment of WeserEms and is lower than in Germany (3.81 %) but higher than in Lower Saxony (2.64 %)
(cp. fig. 12). Altogether 36.1 % of total employees and 36.6% of total enterprises of
Lower-Saxony’s mechanical engineering industry are settled in the Weser-Ems region
(cp. tab. 6). These data illustrate, that the mechanical engineering industry in WeserEms is well presented (above-average) in comparison with Lower Saxony.
Fig. 12: Share of mechanical engineering in total employment 2005 in percent
4,00%
3,50%
3,00%
2,50%
2,00%
1,50%
3,12%
2,64%
3,81%
Weser-Ems
Lower Saxony
Germany
1,00%
0,50%
0,00%
(Source NLS, 2005: K70G3524; Destatis, 2005: Genesis-Table 13111-0001; Destatis, 2006 Fachserie 1 Reihe
4.2.1; own calculation)
25
Tab. 6: Data of mechanical engineering in Weser-Ems and Lower Saxony
Weser-Ems
Lower Saxony
Share of Weser-Ems
in Lower Saxony
Employees 06/2005
21.945
60.750
36.1 %
Enterprises12/2004
884
2.411
36.6 %
(Source: NLS, 2005: Tab. K70G3524, NLS, 2004: Unternehmensregister; own calculations)
Regional focuses are located in the districts Emsland and Osnabrück. Together more
than two-thirds of the employees in Weser-Ems region’s mechanical engineering industry
are engaged (cp. Abb. 1). In several other districts of Weser-Ems the mechanical
engineering sector holds shares of four to five percent (cp. fig. 1 and 13).
Fig. 13: Share of mechanical engineering in total employment of the districts
%
(Source: NLS, 2002, Tab. M70E3031,
own calculations)
26
SWOT analysis
STRENGTHS
 36.1 % of total employees of mechanical
engineering in Lower Saxony.
 36.6 % of total enterprises of mechanical
engineering in Lower Saxony.
 Specialised
education
and
training
facilities.
OPPORTUNITIES

Close connection with other branches
(e.g. vehicle construction).
WEAKNESSES

Specialisation
branches.
on
“traditional”
THREATS
 Relative low innovation activities in
traditional branches has an effect on
demand for new products.
The most important players and projects in the sector
The polytechnics in Emden, Wilhelmshaven und Osnabrück offer the study
course mechanical engineering and develop education and research in this field of
economy in Weser-Ems. The science at all of these locations is connected with the
regional industry. Due to its high name recognition and its great relevance for the region
the Meyer-shipyard in Papenburg will be described in the following. The Meyer-shipyard
is one of numerous imported companies in the mechanical engineering sector and
neighbouring branches in Weser-Ems.
Meyer-shipyard (Meyer-Werft) in Papenburg (district Emsland)
Over the past few decades the Meyer-shipyard in Papenburg (district Emsland) has
earned an excellent reputation in the construction of special-purpose ships. Longstanding experience in the construction of passenger vessels gained in the 80s has been
the basis for successfully entering the market of large-scale, modern cruise vessels. To
date the shipyard has delivered 20 luxury liners of different tonnages to customers all
over the world. Other fields of activity of Meyer Werft are constructions of passenger
ships, luxury car and passenger ferries, RoRo ferries, river cruise ships, gas tankers and
container ships. Moreover, Meyer Werft is an international market leader in the
conversion of cargo ships to livestock carriers. 27 ships of this type, which carry sheep,
cows, camels and horses, have so far been delivered.
Today, at its Papenburg premises, Meyer Werft has a staff of 2.200 people. The workload
will last into the year 2009 (Meyer Werft (2005): “Meyer Werft at a glance”).
Polytechnics
Oldenburg/Ostfriesland/Wilhelmshaven
Polytechnics Osnabrück (FH OS)
(FH
OOW)
and
The polytechnics of Weser-Ems make an important contribution to the development of
the regional economy. The close connection between science and business
generates numerous synergies for both sides. On the one hand the study courses get an
expressly practical orientation; on the other hand innovative research products are
locally employed. Especially in the division of mechanical engineering the polytechnics
are not only training posts for qualified labour but also research institutes to develop
innovations.
27
The polytechnic Oldenburg/Ostfriesland/Wilhelmshaven (OOW, about 10.000
students and 60 study courses) offer study courses in the division of mechanical
engineering at its location in Emden. During the practical orientated studies of
engineering and design (bachelor) the students are able to focus on two different
directions. Either they choose the division of engineering with plant technology,
construction and production technology or the division of product development and
design. Because of its combination of industry design and modern methods of product
development with mechanical engineering the division of product development and
design is unique at German poloytechnics.
At the FH OOW location in Wilhelmshaven as well as at the polytechnic Osnabrück
(about 8.000 students and 50 study courses) the studies of mechanical engineering are
more straightened on classical fields. The study courses (bachelor and master) cover
the divisions production technology, development and construction as well as energy,
processing and environmental technology. In close connection with industry and business
the education at the polytechnics is permanently updated and adapted to the
requirements of practice. In addition to the theoretic scientific education the studies
consist of the realisation of projects in team-work. Furthermore research and
development institutes in the fields of mechanical engineering are settled at all the
mentioned locations of polytechnics in Weser-Ems (www.fh-oow.de; www.fhosnabrueck.de).
Cross-border situation
Like in Germany mechanical engineering is also one of the most important
industries in the Netherlands. However in the neighbouring Dutch regions (provinces
Drenthe and Groningen) of Weser-Ems only 0.6 % (5.000 people) of the total
employment is working in this sector (www.nom.nl). The prospects for mechanical
engineering in the Netherlands are positive. The Centraal Planbureau bargain for an
increase in spending for mechanical engineering products of 17 % in 2006. Experts
expect that the business prospects of the customers of plants and engines will brighten in
the year 2006. Due to the successful sales of the Dutch industry on foreign market the
output sizes and capacity utilisation increase (in 2004 capacity utilisation sector
amounted 82 %). Therefore the willingness to invest in extensions of production plants
shall increase in the year 2006.
Furthermore the Dutch mechanical engineering itself offers sales opportunities. The
majority of small and medium-sized enterprises want to concentrate on their core
competencies and want to source out the less productive parts of the value-added chain.
Therefore suppliers from foreign countries get the possibility to enlarge their
activities. In this way German producers are able to benefit from the strengths of Dutch
mechanical engineering such as high quality and international marketing. The various
contacts of the companies and competences in the fields of logistic would also be an
advantage for foreign cooperation partners (German office for foreign trade (2005): The
Netherlands – economic trends 2006).
An important player for education and research of the economy in the
neighbouring regions in the Netherlands is the University of Groningen (RUG –
Rijksuniversiteit Groningen). With more than 20,000 (about 5.000 first-year)
students it is one of the largest universities in the Netherlands. Ten faculties and a large
number of teaching institutes (with about 270 professors) and research schools are
28
settled there. The RUG offers a wide range of study courses and it creates an
international educational environment, applies international themes in its courses and
stimulates international exchange. Altogether the University offers 61 bachelor's courses,
114 master's programmes and 5 top master's programmes.
The University of Groningen provides high quality research and education, is
internationally oriented, respects differences in ambition and talent, works actively with
businesses, the government and the public, and ranks among the best universities in
Europe.
The faculty of mathematics and natural sciences is endued with numerous mixing
points of the five described economic sectors in the divisions industrial engineering and
management, Energy and environmental sciences, Life science, computing science and
information science. Thus the education and research at the RUG is very relevant for the
mechanical engineering sector, the environmental technologies sector and the IT sector
in the region (www.rug.nl).
29
III.
Upper Austria (Austria)
a) Introduction
Upper Austria is the third-largest of the nine federal states of Austria. Is has
1.401.270 inhabitants. The provincial government is the regional capital Linz. Upper
Austria has 445 communes and is traditionally divided into 4 sectors:
Innviertel, Mühlviertel, Hausruckviertel, Traunviertel.
Upper Austria is divided in 2 parts through the Danube which goes from West to East. To
the North of the Danube there is the hill country Mühlviertel, which belongs to the
“Böhmische Masse”. It is one of the oldest areas of Europe with “Plöckenstein (1.378 m)
as highest elevation.
To the South the Danube divided the “Sauwald” (895 m) and the “Kürnberger Wald” of
this area.
To the South of the Danbue there is the so called “Alpenvorland”, which was tertiary
underneath the sea level. It is divided through four rivers, the Traun, Krems, Steyr and
Enns.
Further in the South – the “Kalkalpen” begin with the highest elevation of the country
(Dachstein 2.995 m). Here there are also located the Eastern glaciers (Hallstätter
Gletscher) of the Alps. The area of the Alps covers the “Salzkammergut”, the “Totes
Gebirge” and the “Phyrn-Eisenwurzen-area”.
The Danube area has always been a connecting link at the crossroad between the East
and the West as well as between the North and the South through out history.
Especially the economy of Upper Austria understood to use those links and connections
to the European partner countries and regions.
About one quarter of the industrial production and the exports from Austria come from
Upper Austria, which is the number 1 from all nine federal states.
Source: http://www.upperaustria.org
30
b) Agro-business sector
General description
Agriculture and forestry has an important value. Most of the Upper Austrian
population believes that agriculture and forestry is very important. This emanates from a
public opinion poll, operated in 2002.
Farmers are a minority, but act with lots of responsibility for the country. The “company
agriculture” is one of the most important employer of Upper Austria and a big economy
factor of Upper Austria. The farmers produce food which gives consideration highest
quality demands. Sustainable production and ecological agriculture form the agriculture
country Upper Austria.
Here are some facts:
-
About 39.000 companies manage approx. 566.000 ha agricultural
area.
-
The average agricultural area per company is 14,4 ha.
-
About 43 % of the companies take their basic income of
agriculture and forestry
-
About 3210 companies manage almost 10 % (approx. 52.500 ha)
of the agricultural area with biological farming.
-
In Upper Austria there are 24,7 % of all cow owners and 30 % of
all cows and 36 % of pigs in Austria are owned in Upper Austria.
-
31 % of milk production derive from Upper Austria
-
47,2 % of the agricultural area is grassland, whereof 60 % are
located in the mountain areas – in those area 49 % of all
companies of Upper Austria are located.
Mountain Farmers
In Upper Austria almost 50 % of the agricultural area is located in this disadvantaged
area. Those plains are managed by mountain farmer companies with natural
management difficulties such as steep plains and unfavourable soil and climate rates and
difficult reachability.
Biological Cultivation
Biological cultivation has developed considerably in Upper Austria. The country was a
pioneer in encouragement and advancement of the biological cultivation.
1989 was the start of direct advancement for biological cultivation companies. Upper
Austria was the first - European wide. From that time on the amount of bio – farmers
and the managed areas increases constantly.
Biological products became even in the meantime also in big supermarket chains
presentable and marketable. At the moment there are 3.125 bio-farmers which manage
over 52.000 ha useful area, that is more than 10 % of the companies alternatively of the
total area.
Entailed Estate
In Upper Austria from 1931 on the name „entailed estate – in German - Erbhof“ was
invented with the so-called „entailed estate law“. The right to use that name is awared
31
via applying of the Upper Austrian Government and authorizes to fix the name visibly on
the residential building.
Requirement for the award is, that the peasant holding is transferred since 200 years
(minimum) within the same family, is funished with a residential house and is inhabited
and managed by the owner itself.
The „entailed estate“ sign is provided by the Upper Austrian Government for free.
Free of Genetic Engineering
Usage of genetically modified organisms of agriculture and forestry, especially in crop
production, is not free of risk.
According to the latest scientific cognitions the existence of genetic engineering together
with ecological and conventional crop production is not possible.
Those agricultural companies, which decided to not use genetic engineering, have the
right on protection from unregulated broadening of genetically modified plants.
Furthermore, Upper Austria committed itself to a biodiversity in order to protect the
environment.
2002 the country Upper Austria has created the Upper Austrian genetic engineering
forbiddance law and joined the “network of genetic engineering freedom of regions of
Europe”.
Soil protection
The soil as supreme layer of the earth´s crust fulfils a set of important functions and is
fundament for human being, animals and plants. The soil is – as well as water and air – a
sensible environmental medium which has to be protected –qualitative and quantitative.
Protection of soil contains exploration of soil in order to judge the condition of the soil,
conservation and recreation of the soil health, reduction of area usage, consultancy and
information of publicity, shaping of opinions and soil protection advancement.
The legal basis for soil protection in Upper Austria is the Upper Austrian soil protection
law 1991.
• Number of companies in this sector and tendencies of development
Upper Austria has 41.804 companies in this sector.
The biggest chances of development are seen in the new areas such as energy
production (f.e. biogas), farm holidays, bio-cultivation and direct marketing.
From the traditional productions, the livestock husbandry of pigs and the forestry have
the best expectations. Less expectations are given to classic productions such as beef,
corn and milk production. Source: http://www.land-oberoesterreich.gv.at

Employees
Upper Austria has 123.000 employees in this sector.

Regional value
Upper Austria is undisputed the agricultural region number 1 in Austria. One could
quite see the agriculture sector therefore as the largest enterprise of Upper Austria. That
means in facts and figures: One holding-company with more than 41,800 farms, which
covers more than 44,100 full-time workers and around 30,000 part-time workers. That´s
around 6.5 per cent of the totally employed persons in Upper Austria, who are working in
the agriculture and forestry sector. The farmers are an important economical factor, what
32
shows up in the fact, that they annually invest more than 200 million Euros in the
advancement of their farms.
In addition, Upper Austria is a very self-confident agricultural region, positioning itself as
the cleanest agricultural country in Europe.
This shall be reached by a campaign against GMO cultivation, a very high proportion of
organic farmers and the highest levels concerning animal and nature protection within
the European Union. All of this leads Upper Austria to a gourmet country with highestquality food. Beyond that, the Upper Austrian farmers are keeping the countryside clean
and lively and give the Upper Austrian landscape its beautiful face due to their ecological
and sustainable land management.
SWOT analysis
STRENGTHS
 Freedom of genetic engineering.
 Biological cultivation.
 Agricultural furtherance.
 Excellent partnership
OPPORTUNITIES



Furtherance of milk and grassland.
Further education.
Standardized protection of quality,
animals and environment.
WEAKNESSES
 Disadvantaged mountain areas.
 Regressing stock of farmers.
 Pricing pressure, high resource prices.
 Long hours of work.
THREATS
 Close-by nuclear power plants.
 EU-Eastern enlargement
 Press coverage of epidemics (BSE, bird
flu,…)
The most important players and projects in the sector

Most important companies
EFKO - Frischfrucht und Delikatessen GesmbH
Since 1941 one of the biggest sour – vegetable processing companies of the country.
About 45.000 tons of fruits and vegetables per year are processed and handled by efko.

Institutions integrating and supporting the sector / cooperation in the sector
Landwirtschaftskammer
Oberösterreich
(Upper
Austrian
Chamber
of
Agriculture)
(http://www.lk-ooe.at/)
There are nine regional chambers of agriculture which represent the agricultural and
forest interests in the country. The main tasks are:
-
Representing the interests of agriculture and forestry
-
Providing legal, economic, technical and social advice for people
working in agriculture and forestry
-
Representing the interests of the agricultural and forestry
population to to public authorities and government officials
Bio-Austria (www.bio-austria.at)
Bio-Austria is the network of Austrians biological farmers. With a contingent of more than
11% of biological farmers and a biological area management of almost 14% Austria ist
33
the “Bio-Country” Nr. 1 in Europe. The work of bio-farmers enables a sustained ecology
of the Austrian agriculture and the production of high quality bio-food.
Lebensministerium (http://www.lebensministerium.at/)
Amt
der
oberösterreichischen
oberoesterreich.gv.at/)
Landesregierung
(http://www.land-
Oberösterreichischer Bauernbund (http://www.ooe.bauernbund.at)
The Upper Austrian bunch of farmers and sideline farmers counts 32.500 members. Most
important aim as political representation of interests is to represent concerns and
requests of the agricultural economy in the political decision board. Five national councils
and two federal councils represent the agriculture of Upper Austria at federal level, nine
delegates represent requests in the Upper Austrian parliament. 29 of 35 members of the
„Landwirtschaftskammer-Meeting“ are elected from the Upper Austrian „Bauernbund“.

Innovative project/product/service application
Project "Genussland Oberösterreich" (www.genussland.at), initiated from the
member of provincial government Dr. Josef Stockinger.
Seven food processing companies use together the umbrella brand name „The best from
“Mühlviertel”. The corporate appearance for products from the “Mühlviertel” in the
supermarkets shows the professionalism on the market.
The involved companies in the appearance “The best from Mühlviertel” avow themselves
to regional added value and to homelike resources from agriculture. In our globalized
world people desire for regionalism and “real” straight food.
c) Tourism sector
General description
In Upper Austria in the touristy year 2004/2005 there were 2.077.666 arrivals and
6.509.056 overnight stays registered. This is a cumulation of + 1,4 % in comparison to
the last year. The average duration of a stay was 3,1 days. This is a regressive
development in comparison of 10 years ago: the average duration of a stay was about
4,2 days in Upper Austria.
The foreign tourism increased with + 3,5 %, about 57 % of the guests are from Austria.
The winter-tourism has become more important. The part of stays during wintertime is
33 % of the total stays.
Upper Austria has about 70.055 beds, in the last five years Upper Austria had a reduction
of 6.400 beds and 612 companies.
46 % of all over-night stays of the year 2003 have been in 5/4* - and 3* category, only
36% of all beds can be found in those categories.
Recapitulating - Upper Austria has to take care of the trend of the reduction of the
average duration of stays as well as the minus of beds and companies.
The added requests of high quality beds and companies have to be taken into
consideration too.
The country Upper Austria developed an overall concept "Kursbuch Tourismus- und
Freizeitwirtschaft Oberösterreich 2003 bis 2010" as basis for the cooperation between
infrastructural providers, companies and touristy organisations. It is a widespread
34
structured concept. The most important aim is the commercial residence tourism, but
also the year-round tourism.
Until 2010 Upper Austria should reach an increase of the added value of the tourism –
and leisure economy of 40 %, which means at the same time an increased quality of life
of inhabitants and companies.
An increase of high quality beds of 25-30 %, increase of efficiency and fluting as national
theme-leader for the topics „bicycle“ and “health/wellness“ are further clear defined aims
of the Upper Austrian tourism.
Upper Austria stands for an offensive growth-strategy for the sector „tourism and leisure”
and initiates all necessary general frameworks in the fields of organisation, product
development, marketing and financing.
Most important questions for Upper Austria are:
What is the will of the visitor/guest?
Where are the touristic strengths of Upper Austria?
How to manage marketing of our strengths?
With those aspects Upper Austria developed and marketed five main topics:
Bicycle – health/wellness – hiking – sports – culture/cities and congresses
(Source: OÖ Landestourismuskonzept 2004-2007)
• Number of companies in this sector and tendencies of development
The number of companies in this sector was 4.012.890 in total in the year 2005.

Employees
Upper Austria has 28.000 employees in the toursistic sector.
SWOT analysis
STRENGTHS
 Diversity of landscape of Upper
Austria
(Salzkammergut,
mountain
area of Mühlviertel, area along the
Danube).
 Good national and international
reachability (transport sector).
 One of the best well funded economic
area of Mid-Europe.
 High economical potential of the
country
 Direct neighbourhood to Germany
and Czech Republic
OPPORTUNITIES
 Increasing demand for high quality
beds and hotels.
 Linz 2009: Cultural Capital of Europe.
 High qualification and motivation of
employees.
WEAKNESSES


Regression of beds and hotels.
Strong structural obsolescence of many
touristic infrastructures and companies .
 Low touristical awareness of many
touristical providers (lack of acquisitive
thinking).
 Strong one-seasonal stamped tourism.
THREATS


Unemployment.
Low size of hotels and touristic companies
without economical development potential
35
The most important players and projects in the sector

Most important companies
Oberösterreich Tourismus (Upper Austria Tourism)
(http://www.oberoesterreich-tourismus.at/)
Upper Austria tourism is an „implementing disc“ for trips – and overnight-stay tourism. A
great number of national and international activities is set in order to further develop the
holiday country Upper Austria with all its facets. Benchmark are the wishes of the tourists
as well as the hosts.
OÖ Tourismus Technologie GmbH
(www.ttg.at)
The Upper Austria Tourism Technology GmbH (TTG) is a 100% subcompany of the Upper
Austria Tourism which takes care of Upper Austrian tourism organisations and companies
in the field of communication- and information technologies.
TTG takes care of the platform www.oberoesterreich.at – the official touristic information
– and booking sytem of Upper Austria in the internet.
OÖ Werbung GmbH
www.ooew.at
The Upper Austrian Advertisement GmbH (OÖW) is a 100% subcompany of the Upper
Austrian tourism.
Since 1995 the company is responsible for „classical“ touristic
advertisement. It is a creative studio for fairs and events, press and public relations,
advertising material production, photos and decoration- and technology rent.

Innovative project/product/service application
www.oberoesterreich.at
Website with all necessary information about tourism in Upper Austria for guests
OÖ Touristik GmbH
www.touristik.at
• Examples of research and implementation projects realized with universities
Johannes Kepler Universität Linz
The university offers an in-service training course andnd MBA for tourism-management.
d) Environmental technologies sector
General description
• Number of companies in this sector and tendencies of development
Environmental technologies, climate protection and energy efficiency are of major
importance in Upper Austria. Companies get advice and support on how to improve their
environmental performance.
36
Upper Austria offers support to network co-operation. Around 1.600 partners are
currently active in the existing 8 Cluster initiatives, 85% of it are SMEs. In order to
enhance the innovative capacity of people and companies, Upper Austria runs industryspreading networks within the ranges Human Resources, Logistics, Design & Media and
Environmental technology.
In Upper Austria the „environmental energy cluster of Upper Austria“ is the network of
environmental energy company in Upper Austria. There are already 140 companies
networked.

Employees
6.600 emloyees in Upper Austria
• Regional value
In the field of renewable energy sources and energy efficiency, Upper Austria
plays a leading role - more than 30 % of the primary energy consumption are produced
from renewable energy sources (approx. 15 % hydro energy, 13 % biomass, 2 % solar
energy and others).
SWOT analysis
Not available
The most important players and projects in the sector

Most important companies
O.Oe. Energiesparverband
The O.Oe. Energiesparverband is a regional energy agency with the tasks to promote
energy efficiency, renewable energy sources and innovative energy technologies. The
company is also responsible for the management of the OEC - the network of green
energy businesses in Upper Austria. The company´s main task is to help energy
consumers to reduce the environmental load and use energy efficiently.
• Institutions integrating and supporting the sector/ cooperation in the sector
Ökoenergie-Cluster OÖ
The „environmental energy cluster of Upper Austria“ is the network of environmental
energy company in Upper Austria. There are already 140 companies networked. Aim of
this cluster is to increase the ability of innovation and competetiveness of companies in
the environmental energy branche.
The country Upper Austria offers ideal conditions for such a cluster with its active
environmental technology sector and the high amount of regenerative energy sources.
This cluster (OEC) is advised through the Upper Austrian “Energiesparverband”. The
activities of the cluster are financed by the country Upper Austria.
37

Innovative project/product/service application
Energy 21 - the Energy Action Plan for the 21st Century
Background
Ensuring a sustainable future requires innovative solutions which meet energy demands
in an environmentally friendly way and at the same time maintain or improve living
standards. Facing this challenge, the Upper Austrian Government unanimously passed
the "Energy 21" strategy, continuing the strategy of the successful first energy plan
(1994-99) in the 21st century.
Aims and Objectives
The "Energy 21" strategy focuses on the development of a well-targeted action plan
based on the following four guidelines: Improving energy efficiency; increasing the use of
renewable energy sources (RES); utilising hydro power (up to ecologically defined limits);
reducing the use of fossil fuels. For a successful implementation of the energy action
plan, the following goals were defined, covering various fields:
Renewable Energy Sources
Additional 10 PJ from RES will be produced until 2010, the share of modern biomass
heating systems will be doubled. Additionally, 3 % of electricity are to be generated from
RES (except hydro) until 2005 and 1 million m² of thermal solar collectors are to be
installed until 2010.
Energy Efficiency
Overall as well as industry-specific energy efficiency will be increased by 10 % by 2010.
Heating and Hot Water
The energy consumption for heating and hot water supply will be reduced by 20%.
New Businesses, New Markets
30 new companies in the fields of RES technology and energy efficiency are to be
established until 2010, thus creating a total of1500 new jobs.
Energy Research
15 new energy RTD research and demonstration projects are planned annually.
Targeted Action Plan
These objectives will be met by implementing a detailed action plan comprising 25
concrete measures in the fields of housing/buildings, public buildings/municipalities,
energy supply and companies/institutions. The action plan is based on the experience
gained from the implementation of the first phase of Upper Austrian energy strategy,
European directives and nation-wide climate protection activities; it focuses on measures
which are best implemented on a regional level.
Training and eduction
A broad energy training programme is carried out by the O.Ö. Energiesparverband.
Specialised training courses and seminars for different target groups are organised. So
far, about 500 persons have been trained. The most important training programme is the
education of energy advisers. Target groups are: representatives of utilities and
municipalities, teachers, plumbers, technology producers etc.

Fachhochschule: "Erneuerbare Energietechnologien"
("eco energy" engineers):
The short study on green energy technology started in
October 2002. It is especially suitable for people (18 years
onwards) who have a technical background.
38

Lehrberuf
"ÖkoenergietechnikerIn"("eco
energy"
plumbers):
The vocational training started in September 2002 and
educates people mainly 15-18 years old who are becoming
installers. The curriculum especially features installing
biomass heating systems including buffer storage and solar
thermal collectors.

Job platform:
A "job platform" is implemented on the website: www.oec.at
which is managed by O.Ö. Energiesparverband. The platform
offers members of the Ökoenergie-Cluster the possibility to
place a job advertisement, and on the other hand, people
looking for a job in the sector of "green energy businesses",
can also place a job advertisement.
• Examples of research and implementation projects realized with universities
The campus in FH Wels offers programs in the fields of engineering,
environmental and renewable energies studies. The academic programs in Wels are
divided into three different clusters: Engineering, Renewable Energies and Environmental
Studies.
Bio- and Environmental Technology focuses on environmental and biotechnological
factors in the development, planning, design, manufacture and operation of plants with a
view to achieving sustainability. Eco-Energy Engineering produces graduates who are
qualified to develop and apply renewable energy technologies.
d) IT sector
General description
• Number of companies in this sector and tendencies of development
At the moment there are 1.566 companies in Upper Austria’s still growing IT sector. As
an important branch of the region’s economy it is supported by various initiatives.

Employees
The IT sector currently offers employment to around 5.960 people in Upper Austria.
• Regional value
Upper Austria has all the makings for locations of IT businesses.
SWOT analysis
Not available
39
The most important players and projects in the sector

Most important companies
Gericom
Since the foundation of the company in 1990, the GERICOM brand has rapidly developed
into a symbol for technology and innovation in the notebook branch. Within 13 years,
the company has evolved into one of the largest market suppliers of mobile computing
and communications in Europe.
Our comprehensive marketing concepts, as well as our European sales partnerships
represent a decisive factor for success in this regard. Since 2003, GERICOM has also
been causing a furore with home entertainment devices such as plasma televisions
and digital recorders.
Gericom AG combines telecommunications, entertainment electronics and mobile data
processing on the basis of innovative technological concepts for the digital lifestyle of a
new generation.
Business Areas: Marketing and service enterprise for manufacturer and commercial
groups in the area of distribution of notebooks, multimedia products and communication
electronic which are compatible for internet, the run of call-centres, e-commerce and
BTO-concepts.
chiliGREEN
chilliGREEN was founded in 1998. It is one of the leading Austrian companies dealing
with computer systems, which are known as chiliGREEN and PROWORX.
• Institutions integrating and supporting the sector/ cooperation in the sector




















SoftwareparkHafenberg
Technologiezentrum Braunau
Technologiezentrum Ried/Innkreis
Technologie- u. Gründerzentrum Schärding
Technologie- und Innovationszentrum St. Florian
Technologiezentrum Salzkammergut - Bezirk Gmunden
Technologiezentrum Salzkammergut - Bezirk Vöcklabruck
Technologiezentrum Freistadt
TechCenter Linz-Winterhafen
Technologie- und Innovationszentrum Kirchdorf/Krems
Technology & Innovation Center TIC Steyr GmbH
Technologiezentrum Perg
Technologiezentrum Attnang-Puchheim
Technologiezentrum Bad Ischl
Technologiezentrum Gmunden
Technologiezentrum Landl-Grieskirchen
Gründungs- und Technologiezentrum Wels
Business- und Informationszentrum Wels
Technologiezentrum Linz (TZL)
TDZ Donau-Böhmerwald Technologie- und Dienstleistungszentrum
Bezirk
Rohrbach
Technologie- und Dienstleistungszentrum Donau-Böhmerwald/Neufelden
40

Innovative project/product/service application
Broadband connection innitiative: http://bbi.eduhi.at/
Upper Austria is the first Austrian province to realise the construction of an area wide
glass fibre network (Backbone network) that will reach each borough. The investment
is huge but the project is future orientated.
Area wide provision is guaranteed and the same fee is requested everywhere, regardless
if you are living in the rural areas or in the towns of the region. Upper Austria has to
remain the number 1 technology province.
The target area of the BBI’s activities is all of Upper Austria with ist 445 boroughs. In
each borough a point of present (POP) is provided. The construction is done via the
parent companies in agreement with the respective areas. The connection bandwidth of
the POP is 1 gigabit/s or more.
• Examples of research and implementation projects realized with universities
Not available
d) Mechanical engineering sector
General description
• Number of companies in this sector and tendencies of development
There are currently 586 companies in the mechanical engineering sector of the province.

Employees
The number of employees is 24.981.
• Regional value
Another sector of high regional value in Upper Austria!
SWOT analysis
Not available
The most important players and projects in the sector

Most important companies
voest alpine
voestalpine is a leading European processing group with its own steelmaking facilities and
headquarters in Austria. The four divisions Steel, Railway Systems, Automotive and
Profilform, all occupy top positions in their respective markets.
About half of the group's turnover is accounted for by "mobility", namely the automobile
industry (including suppliers and the commercial vehicle industry) as well as the railway
41
industry. Furthermore, voestalpine is one of the leading partners of the construcion
sector, civil and mechanical engineering, the household appliance industry (white goods),
the energy sector (oil and gas) and the transportation and storage sector.
Engel Austria GmbH
As one of the world-wide leading companies in injection moulding machine
construction the ENGEL group does not see its activities limited to the production of
injection moulding machines but provides all technology modules such as injection
moulding machine, mould and automation from one source. New technologies and stateof-the-art production systems make it possible for ENGEL partners to be competitive and
successful.
Personal responsibility and the readiness for innovation of it´s employees rank highly at
ENGEL. The products are the result of their effort. The division of the responsibility
through largely independent corporate areas guarantees the speed of innovation and
increases the flexibility when faced with customer requirements.
ENGEL turnkey solutions consist of injection moulding machine, mould and automation
while individual components are also competitive and successful on the market on their
own. Partnerships with specialists open up those fields of technology not covered by
ENGEL.
KEBA AG
In keeping with this motto KEBA has developed and produced innovative and
qualitatively high value solutions in the fields of industrial, banking and service
automation for more than 30 years.
Founded in 1968, KEBA has become an internationally successful electronics company
and stands for technical innovations, professionalism and dynamic force. Around 623
employees generate an annual turnover of €90 million, 75 % of which comes from
abroad.
Market position
Globally acting and international leading machine building manufacturers rely on
automation solutions from the house of KEBA. Each year thousands of machine and
robotic controls bear the KEBA name throughout the world.
In the industrial automation sector, KEBA concentrates on two business areas in
particular:
- Automation of machines and
- Mobile automation.
MAN Steyr
The company philosophy of „MAN Nutzfahrzeuge AG“ is targeted towards assigning
individual product identification to each location in the international production compound
thereby enforcing the employees’ connections to the vehicles produced on the location
and the components.
That also includes responsibility for the further development of all vehicles build on the
location. Various development sectors are cooperating via data sharing speeding up the
development process as a result. Computer aided constructing with CAD-facilities is
42
precondition for accomplishing the extensive volume of work, documentation and for
ensuring high quality development.
Scheuch GmbH
SCHEUCH is one of the leading manufacturers of components and plants in the
ventilation and environmental technology. To be able to fulfill this high standard in
the future, SCHEUCH attaches great importance to the development of new processes,
technologies and products and to the advancement of existing ones.
• Institutions integrating and supporting the sector/ cooperation in the sector
The mechatronics cluster
Networked mechatronics competence
The Mechatronics Cluster represents an information and co-operation platform for
companies from the mechanical engineering and plant building, equipment and apparatus
construction sectors, their special sub-suppliers and services companies, as well as
related R&D, educational and further training bodies. The planning and realisation of
measures in the network takes place in close co-operation with the Upper Austrian
Chamber of Commerce. At present, initial network activities are being agreed in a series
of personal discussions.

Innovative project/product/service application
Not available
• Examples of research and implementation projects realized with universities
Structural Control
Structural Control is the name given to systems that actively suppress vibration using a
network of sensors and actuators connected by an intelligent control system. Applications
for Structural Control are to be found in virtually every major industry: automotive,
aerospace, machine and plant construction, building construction and medicine
technology.
Harmful vibrations under control
Disturbing and pathogenic noise caused by vibrations in thin-walled constructions, safety
risks due to heavy vibrations in buildings, bridges and sensitive machinery, insufficient
product quality due to undesirable vibrations during production processes – the technical
solution to all these problems and more is being investigated by a new area of research
called Structural Control, an important subject for the future in Mechatronic technology.
43
III.
South Aegan Region (Greece)
Partner has not provided the required materials.
44
V.
Lubelskie (Poland)
a) Introduction
The Lublin region economy differs from the rest of the country in terms of
structure. It is characterized by high share of agriculture and non-market services in
GDP. Industry here is hardly developed and with little innovation. However, market
services develop dynamically. Despite advanced transformation processes the region still
does not attract many foreign investments.
45
In the profile structure of industry the dominant profiles are food and mechanical
engineering. High-tech profiles have an inconsiderable share in total output and export.
Among the five analyzed sectors, the ones most advanced in development are
mechanical engineering and IT. Significant in the regional development is, and surely will
be in the future, the agribusiness sector. Unfortunately, it is still of little efficiency and
generates low profits. Tourism and environmental technologies sectors remain
underdeveloped.
b) Agro-business sector
General description

Number of companies in this sector and tendencies of development
The Lublin Region, thanks to the great climatic and soil conditions has
exceptionally good perspectives for the development of the agriculture-based business
and food processing. The main asset of the surface of the region (57%) is of agrarian
use, 23%-forests and 20% other land. The best soil are situated in central and southeast of the region (Wyzyna Lubelska, Kotlina Hrubieszowska). The climatic conditions
create the favourable conditions to cultivation of plants which are typical for our
geographical zone.
Unfortunately, the agrobusiness sector is still hardly developing, the situation concerning,
particularly farms. These are underinvested, with low efficiency and mostly producing for
own consumption. There are 246.000 such farms and the number is higher than in entire
Great Britain. The average farm area is very low (6, 9 ha per farm). Only in the recent
years, with pre-accession and structural funds available for Poland, has the process of
modernization of farms and agricultural equipment been slowly advancing. More
favorable conditions exist in the agricultural surrounding institutions, that is in
agrobusiness. Due to the access to large EU funds for agricultural and food industry
modernization, investment into this line has considerably increased and has been
intended to develop freezing and storage systems to increase the region’s export of
agricultural goods.
Another strategic goal in the sector is the development of advanced agricultural
processing and the production of highly processed goods. Food processing ability of the
industry does not assure full developing of materials produced in the Region. That is why
the implementation of advanced technologies and managing systems established by EU,
is an essential priority and can be the object of investments in Lubelskie. One of the
priorities in development of Lublin’s agricultural sector is ecological products. The Region
aspires to the creation of organic food valley based on very clean environment and
methods of production of organic food used in the region. Presently in the region there
are about 400 farms which have licenses to produce organic food. Another crucial
agricultural profile in which the region is the national leader is gardening production,
including seedlings and flowers. The voivodship also occupies a top position in herbal
production which develops intensely, considering very clean environment.
46

Employees
At the end of 2004 the number of people working in this sector was 278600 people,
according to the Main Statistical Office data.

Regional value
The agriculture and agribusiness sector is crucial for the regional economy. Over 40%
of the total number of people employed in the region work in this sector. It may by
assumed that in the eastern part of the region employment in the sector is going to be
the key source of income for inhabitants for many years to come. Unfortunately, the
agribusiness line still offers low income, which strengthens the low level of the region’s
wealth. However, profile development and growing ecological production (offered at
considerably higher prices on the market) may prospectively result in improving the
economic condition of people employed in the sector. Consequently, agriculture may
become the driving force for increase in production and income in other sectors of
economy in the region.
SWOT Analysis
STRENGTHS
 Extremely favorable conditions for
agricultural production in the region.
 Dominant
position
in
agricultural
production of many goods in Poland.
 Relatively strong support from sector
institutions and organization.
 Well developed sphere of agricultural
sciences in the region.
OPPORTUNITIES
 Good assessment of Polish food
products in EU states.
 Increase in extra-regional export and in
export to international markets.
 Expected considerable funds transfers
(direct subsidies and resources for
investments).
 Rise in income for people employed in
the sector
WEAKNESSES
 High fragmentation of agriculture.
 Low qualifications of farmers.
 High
level
of
employment
in
agricultural sector.
 Low agricultural productivity.
 Insufficient support from food industry
 Rural mentality - reluctance towards
change and modernization
THREATS

Competitive products from other EU
markets.
 Migration from rural areas.
 Necessity
to
adjust
agricultural
production to EU and international
standards
The most important players and projects in the sector

Most important companies
There are more and more companies in the Region which initiate activity and invest in
the sector. New agricultural companies and cooperatives are established to manage
extending land areas. Agricultural companies in the southeastern part of the region, with
the best soil quality in Poland, specialize in producing grain, colza, sugar beets, and
onion (RSP Hophie, PGR Kulcze). The crop yield per ha here is comparable with Dutch
agriculture. In the western part of the region the dominant lines are the flower and
seedling production (companies: The Dębscy Brothers, JMP, Kurowscy) and gardening
47
production (raspberries, apples, etc.). In the northern part of the region, considering
poorer soil quality, stock and horse breeding develop (Janów Podlaski) as well as fish
breeding (Siemień, Kock).
The sector of agricultural surrounding also grows with its food processing companies and
freezing plants in the lead. One of them is ZOMAR (www.agram.lublin.pl), which is a
private owned Polish joint stock company operating on European markets for more than
ten years. Currently they produce frozen fruit and vegetables. Here, in the eastern part
of Poland where there is neither industry nor traffic, ecological crops - including fruit and
vegetables - are harvested by farmers from fertile fields. One of the largest squash
producers is SVZ Poland. Another company with special position on the local market is
Symbio Polska (www.symbio.pl). It organizes production, processing, selling, and
delivery service of ecological food. The company delivers the products to processing
industry and to the world markets. The aim of the company is to deliver organic food to
the consumer. There are also over a dozen large dairies and meat processing companies.

Institutions integrating and supporting the sector / cooperation in the sector
Institutions which integrate the Agricultural Sector of Lubelskie Region are: Lublin
Chamber of Agriculture (www.lir.lublin.pl) - it is the institution of professional
autonomy of farmers. Its task is to coordinate the group matters towards external
surroundings of agriculture, and promote internal integration of local rural communities.
LCA acts in favour of solving agriculture problems and represents the matters of the
united farmers. It also influences the forming of agriculture policy and participates in its
realisation. LCA participates in organizing and financing: conferences, exhibitions,
holidays and harvest home festivals at province and district level. It pays a lot of
attention to improve work and safety conditions in agriculture because in this respect the
Lublin province gives farmers free legal advice etc; The Lublin Centre of Agricultural
Consultancy in Konskowola – its main mission is to develop and introduce to
agricultural production new ecological methods of farming, to promote agricultural
knowledge and training and developing professional skills of farmers; the Department of
Environmental Protection, Development of the Country and Geodesy at the Marshal’s
Office in Lublin.
The strong aspect of the Lubelskie Region is the fact that it has well organized agrarian
market. The most important and known is the Lublin Wholesale Market in Elizówka
(www.elizowka.pl). It serves the intraregional agricultural products wholesale trade in
eastern and southern Poland. Another examples of markets are: Eastern Fair of Goods
and Crops in Lublin and Eastern Centre of Export in Biala Podlaska. Professional fair and
exhibition events take place in the most modern in the eastern part of Poland Fair
Centre. The Lublin Fairs are organized by International Fairs of Lublin, the company
which has many years of experience in organizing similar events.

Innovative project/product/service application
Innovations implemented in Lublin’s companies are for example in Symbio Polskacompany where thorough controlling system for detection of pesticides in vegetable, fruit
and herbal production, is being developed. The company aspires to the creation of
individualized system for the needs of individual customers. The main partner of the
company - Fructosad is implementing the HACCP system. Also Zomar S.A. has innovative
solutions such as: HACCP system introduced, full trackability of the product, kosher
certificate for some of their products, modern production system audited by large group
of clients from EU, direct access to ecological raw materials.
48
Recently more farmers improve their production with introducing new technologies. One
of the most known farms from Lublin District has an electronically-controlled piggery.
Another succesful farm is JMP in Stężyca (Ryki District). It is the biggest producer of
anthurium in Poland and second in Europe and can be proud of having computer
controlled greenhouse. More farmers comply with EU standards by introducing advanced
equipment e.g. fodder machine which facilitates farm’s activity.

Examples of research and implementation projects realized with universities
The essential factor, favourable in the development of the agriculture and
agricultural-food processing in the Region is qualified personnel educated in Agricultural
University of Lublin (12 000 students) and the existence of research back in the scope of
agriculture (Institute of Agrophisics of PAS, W. Chodzka Institute of Rural Medicine,
Artificial Fertilizers Institute in Pulawy, Cultivation, Fertilizing and Pedology Institute in
Puławy, National Veterinary Research Institute in Pulawy (NVRI), The Land Reclamation
and Grasslands Institute in Lublin. The cooperation between science and agribusiness
sector is developed by each of the mentioned institutions and is quite advanced in
many areas. The Agricultural University carries out research and implements solutions
into agricultural production in the field of new pig and cattle breeds. The center is also
known for designing new species of fruit and decorative plants as well as for constructing
new equipment for fruit pick. Institute of Agrophisics implemented new methods for
decreasing the amount of loss in mechanical grain harvest. NVRI is in the process of
advanced research on diagnosing and preventing animal diseases.
Cross-border situation
• Situation in neighbouring region in analogous sector
Agriculture has traditionally been one of the most developed sectors of economy
in the Volyn oblast/region. Over 50% of land in the region (1.054.500 ha out of
2.014.400 ha) is arable, including 674.600 ha of fields and 368.500 ha of pastures and
meadows3. Ukrainian agriculture has been struggling with problems left after USSR – lack
of resources for development and lack of modern technologies. The condition of
agriculture in the Volyn oblast/region is no exception and hence any structural reforms
are extremely slow in progress.
Currently the government is attempting to reform the agricultural sector so that its
efficiency increases. A key factor to accelerate the development in agriculture will be
private land ownership and molding market prices. In the current stage there are 496
large farms in the region, owned by private entrepreneurs (earlier there were mostly
public collective farms). Additionally, there are new smaller farms (around 750 in
number) and 49.700 larger family farms. Specific for Ukrainian agriculture is the
existence of small family farms producing dairy products mostly for own consumption
and to a small extent for sale. There are 244.000 such farms in the region.
The agricultural infrastructure includes 15 crediting companies and 35 production
cooperatives. There are 1245 food purchasing centers and a food wholesale chain of 24
markets operating in the oblast. A regional leasing fund was also established.
State assistance in this sector is limited to subsidizing production. There are no
institutions (beside public organizations and the above mentioned infrastructure) which
would promote cooperation within the sector. The cooperation between agriculture and
3
Statystyka silskoho hospodarstva i navkolyshnioho seredovysha, Holovne Upravlinniya Statystyki u Volynskyi
Oblasti, Lutsk 2006
49
science is underdeveloped as well. The only academic center supporting agricultural
activity in the region is the Volyn Institute of Agrarian and Industrial Production which
has been working on the problem of land drainage in the region (the issue is extremely
accurate since the majority of land in the region is swamped) as well as introducing other
technological improvements.
• Cross-border cooperation
Unfortunately, so far the cooperation between the Volyn oblast and the lubelskie
voivodship in the sphere of agriculture has not been properly developed.
c) Tourism sector
General description

Number of companies in this sector and tendencies of development
The tourist advantages of the Lubelskie Region show that the development of
infrastructure and tourist sector should be a vital direction in the economic development
of the whole Region. The increasing importance of the regional tourism is the factor
which may lead to the recovering of the gastronomy, commerce and transport. The
number of companies within the sector in Lublin region is ca. 3000, among which the
majority (over 80%) are companies run by natural persons conducting economic activity.
The advantages of the tourist sector in Lublin region are: attractive natural environment,
cultural legacy of culture and many cultural events. Important adventages for the
regional tourist are special rank objects (museums, pilgrimage places, Catholic and
Orthodox sanctuaries, and cultivated in some places folk culture. Within the region there
are many places with the II and III category of tourist attraction e.g. Kazimierz DolnyNałęczów Region, The Łęczyńsko-Włodawskie Lake District, Roztocze Region and
extensive forest complex of Janowskie Forests and The Solska Woods. There are also
many landscape parks and protected landscape areas which attract tourists and visitors.
The parks play important role in promotion and development of the region, especially
eco- and agritourism. There is a possibility of using the tourist borderland on the base of
arrangements with Ukraine and Belarus (the conception of tourist development in the
scope of Interregional Protected Areas). The possibilities of the tourist development also
depends on the number of people which can stay in the area in the same time. The
tourist areas of the lubelskie region fulfill these conditions. Places which attract tourists
are connected with tourist trails and interested historical and natural curiosity, history of
the region, architectural monuments. The most important tourist trails are: Natural Trail,
Landscape Trail, Vistula Trail, Magnate Residence Trail, The Jewish Culture Keepsake
Trail, Permeating Cultures Trail, sacred Architecture etc. In the past 2 years ski tourism
has been vividly developing, due to investments into downhill network (ski lifts) in the
upland part of the region. The lubelskie voivodship presently has the best skiing
infrastructure in Poland, obviously excluding the mountains and hilly areas.
Unfortunately, The Region does not use the its potential to attract tourists. The main
reason of that situation is that there are insufficient funds for marketing and promotion.
The opportunity still to take in the sector development is conference tourism. In Lublin as
well as in the entire region there are several dozen scientific conferences held each year,
including over a dozen large national and international meetings (with the number of
participant reaching even 1000 people). In 2004 Lublin universities held a prestigious
European Congress of Rectors. However, the lack of infrastructure (airport and
50
conference room with a capacity of 3000 people) result in restraining this subsector from
development, although the potential here, considering Lublin a significant academic
center, is huge. Many opportunities for development are found in business tourism
(conferences, presentations, etc.).

Employees
The share of people employed in hotels and tourism sector (7100 people) in relation
to total employment in the region (725.300 people) is faint.

Regional value
Despite favorable conditions for tourism development, the sector’s share in the
regional economy is marginal. Capital expenditure is also extremely low. The average
salary in the sector reaches only 60% of average salaries in all other sectors in the
region and is among the lowest. A promising tendency is relatively high hire rate
(28,2%) which is higher than the average in the region (19,5%), thus confirming quick
increase in employment in the sector, yet also the sector’s poor condition in the past.
SWOT Analysis
STRENGTHS






Unique natural and cultural value of the
region.
Wide range of recreation opportunities.
Innovative and modern programs of
active tourism.
Developed network of hotels in the
region’s capital.
Varied agritourist offer.
Wide range of events in the region
(including festivals, competitions and
large events).
OPPORTUNITIES
 Increase in number of domestic and
foreign visitors resulting from improved
communication accessibility.
 Increase in employment in rural areas
and incorporating excessive employment
from agriculture.
 Towns/cities vitality increase.
 Tourist network development
 Increase in significance of the region
and Lublin itself.
WEAKNESSES
 Underdeveloped
communication
network, lack of airport, poor accessibility
of the region.
 Lack of network of inexpensive hotels of
economical standards.
 Lack of large conference center in
Lublin.
 Lack
of
tourism
supporting
infrastructure (swimming pools, sports
facilities, etc.).
 Lack of professional marketing and
advertising campaigns for the region.
 Lack of renowned academic centers
which would educate experts for the
sector.
THREATS

Insufficient funds for investments and
promotion of the sector.
 Decreasing significance of the region
due to lack of infrastructural investments.
51
The most important players and projects in the sector

Most important companies
In the tourism sector in the Lublin region there are many companies offering a variety
of products for potential customers. These include hotels, travel agencies, companies
arranging large events, agritourist farms and companies offering service in scientific
conferences. The are also companies based on foreign capital. Unfortunately, as already
mentioned, the lack of promotion of the region and its poor communication accessibility,
the potential of these companies remains unused.
In the hotel business there are 28 hotels, mostly in Lublin. The most representative hotel
is the four-star Lublinianka (www.lublinianka.com) with considerable share of Dutch
capital. Other renowned hotels are the Europa Hotel (www.hoteleuropa.pl) and
Campanile (www.campanile.com.pl). Alongside the hotel activity, the hotels arrange
conferences and business meetings. In the Lublin area the best developed hotel network
is in Kazimierz Dolny – a typical tourist center and in Zamość – city registered in the
world heritage of UNESCO.
An extremely significant tourist center is the health spa in Nałęczów. The spa
“Uzdrowisko Nałęczów” (www.uzdrowisko-naleczow.com.pl) has so far been the only
Polish spa enterprise to be privatized. Due to new investments (Termy Pałacowe,
Aquapark, new medical equipment) Nałęczów attracts wealthier tourists from abroad and
new domestic ones. Along with high quality medical care, they have the opportunity to
participate in a variety of cultural events of the place, and in numerous events in the
nearby Lublin.
The offer of many tourist agencies is also interesting and varied. One of the most
important travel agencies in the region is Foreign and Domestic Tourist Agency Beatur
from Lublin (www.beatur.lublin.pl). They organize thematic trips around tourist routs
of the region such as: “From the history of the city’”, “Cultural Legacy”, “Styles in the
Art”, “Culture of the Religion”. Globtroter Tourist Agency (www.globtroter.lublin.pl)
provides summer and winter holiday camps, eco-camps, package tours in Poland and
abroad, package holidays in Poland and abroad, pilgrimages and organizes various
workshops. Polish Tourist Association (http://lublin.pttk.pl/) with its office in
Lublin which organizes promotional activity for Lublin and Lublin region, adventure
tourism-tourist routes and trails, guided sightseeing tours, training courses for tour
operators, and provides bookstore for tourists - "Na Starówce". The Lublin Village
Museum (www.skansen.lublin.pl) also makes an unforgettable impression. It
arranges guided tours round the open air museum, live history and occupational lessons,
presentations of forgotten crafts, organizations of symposium and festivals, catering
services, concerts and folk poetry meetings. Tourist are also attracted to the Lublin
Castle Museum which arranges occasional art exhibitions of famous artists. For example,
the exhibition of M. Chagall’s works attracted over 60000 visitors, with many foreign
tourists.
In Lubelskie Region very popular is farm-tourism. There are many associations and
organizations for farmers who make their farms available for tourists. One of them is
Lubelskie Stowarzyszenie Agroturystyczne (www.agroturystyka.pl). Farms are
situated in picturesque and varied regions. The farmers offer comfortable rooms, modern
52
bathrooms and pleasant sitting rooms. Many are in old, historical habitats, renovated
specially for tourists. Quite as important in the offer are the possibilities of spending not
only a restful holiday but also an active one. They offer issailing or rowing, angling or
hunting, skiing or sleighing, sightseeing or simply walking in a beautiful forest. In almost
all the farms guests may hire bicycles and various types of boats, ride horses and
somtimes play tennis. Farm tourism is very popular particularly in the area of Kazimierz
Landscape Park and Roztocze.

Institutions integrating and supporting the sector / cooperation in the sector
The cooperation the tourism sector has been developing for many years in the region.
Its obvious results include improvement of tourist network, establishment of many new
agritourist farms and designing new services. Unfortunately, the effect of the activities of
many institutions is not a radical increase in the number of visits to the region, as it has
been so far, yet what needs to be remembered is that there are numerous external
factors, independent of the companies in the sector (e.g. infrastructure) which restrain
this increase. The examples of institutions supporting tourism, beside the mentioned
agritourism
association
include:
Regional
Chamber
of
Tourism
in
Lublin
(www.rig.lublin.pl), Consortium of the Tourist Organization in the Lublin Voivodship.
(www.lsi.lublin.pl/porozumienie/). The Consortium has been operating for over 20
years. Members of the Consotrium are the companies/organisations which provide
costumer service of superior quality and which aim is to promote the Lublin Region.

Innovative project/product/service application
The companies in the Lublin region offer many innovative tourist products. For
instance, communication attractions are being offered, such as ‘’Retro Journey’’ by
narrow-gauge railway on the route from Nałeczów to Opole Lubelskie trough Wawolnica,
Karczmiska, Poniatowa with visiting historical places on the way. Lakes of LeczynskoWlodawskie District enable doing water sports including sailing. In the Zemborzycki
artificial lake in Lublin there is one of the two water ski lifts in the country available.
European and world championships in this discipline are held here. There is a ferry
crossing the Vistula from Kazimierz Dolny to Janowiec, excursion criuses and many other
attractions. There are many tourist attracions in Janów Lubelski and Nałeczów such as:
jeep-trips trough landscape park in Janow Lubelski, pottery workshops, visiting a salt
cavern, journey with a over 100 years old narrow-gauge railway combined with visiting
interesting monuments. Very unusual but interesting way of attracting visitors has The
Grodzka Gate – Inn Theatre Centre (www.tnn.lublin.pl) which organizes “Lublin
Underground Routes” – trips where visitors can have a walk on the Old Town’s
underground and see the basement of the Hall Town from 16 th and 18th century. ITC
organizes numerous cultural events promoting multicultural heritage of Lublin.

Examples of research and implementation projects realized with universities
The cooperation of the tourism sector with universities virtually does not exist. This
condition in part results from the fact that education of staff in this business has been
available only in the last several years. No scientific research into this field has been
carried out, and the few available reports are incomplete. Only the University of Maria
Curie-Skłodowska and a few departments of the University of Agriculture do include
some tourism issues into their research frameworks.
53
Cross-border situation
• Situation in neighbouring region in analogous sector
Tourist sector in the Volyn oblast/region is only beginning to grow. Huge
potential of natural resources of the region is not fully utilized. It is the result of the
situation which existed in Ukraine from the formation of an independent state until 2002.
In the regional budget there was no item concerning the spending on tourism. Culture,
complementary to tourism, was also considerably unsubsidized. Hence tourist attractions
and recreational areas established during the planned economy period went into decline.
Only by the end of 2002 was the Regional Tourism Development Plan for the period
2002-2010 verified and adopted. Ever since the economic activity in this sector has been
increasing. Currently only 1,2% of the region’s area is recreational in character. Officially
there are 56 companies with tourist profile, 84 health spas and 32 hotels. The total
amount of employees in the line is 1300. However, considering extensive development in
the grey zone and inaccurate statistical data, it can be assumed that the sector is much
better developed. In 2003 tourist companies contributed ca. 160.000 USD into the
regional budget4.
The region lacks larger renowned tourist companies. The majority of them operate only
locally. The most developed area in the tourism sector is the largest lake cluster in
Ukraine – the Shats’kyi National Park. Quite attractive in this respect is also Lutsk where
tourists find the remains of a medieval castle, the Jesuit church, the church and
monastery of Bernadines, numerous museums and other historic sites.
Tourism development in the Volyn oblast/region has in the recent years been attributed
to organizations promoting tourism and recreation in the region. Around the Shats’kyi
Lakes the Foundation for Supporting the Shats’kyi Region Development “Blue Lakes” was
established and combined 20 companies in the hotel industry. A project of agri-tourism
development by the Regional Development Office “Volyn” is currently in its final stage of
preparation. It is based on the experiences of the warminsko-mazurskie voivodship and
is going to be co-funded by the Boog Euroregion. Promotion and information tasks are
also performed by the Volyn Regional Tourism Information Center.
• Cross-border cooperation
The regional cooperation of Volyn and Lublin in the field of tourism is able to
develop due to the “Euro Triange of Friendhsip” project (co-funded by the EU). The
project’s achievements include the marked tourist trail Lublin-Lutsk-Brzesc and the
project service office which organizes various trips and promotes transnational tourism
development.
d) Environmental technologies sector
General description

4
Number of companies in this sector and tendencies of development
Prohramma Rozvytku Turyzmu i olynskij Oblasti na 2002-2010 roky, Volynska Oblasna Derzhavna
Administracja, Lutsk 2002
54
The Lubelskie voivodship, though located far from major industrial and mining
industry centers of the country, is not a region with no ecological issues. Major problems
the region faces include rising amount of waste and the necessity to manage it, extensive
river pollution and lack of sewage systems in rural areas and uncontrolled and chaotic
housing which encroach on valuable natural areas.
In the environmental technologies sector in the region there aren’t many established
companies. Mostly in the following sections: recycling and recovering of urban waste,
environment consultancy, environmental engineering and water management (they total
200 enterprises in the region, located mostly in Lublin and the neighboring area).
In majority these are rather small companies with limited capital and access to
knowledge and modern technologies. On the other hand, however, the environment
consultancy sector is dynamically developing (due to inflow of EU funds). Recycling is
becoming quite significant, and although in the lubelskie voivodship the recycling
materials do not total much, the region’s capital boasts of having highest segregation
and recycling rates in the country.

Employees
It is hardly possible to tell the number of people employed in the sector and company
profits since there is no statistical database in this field.

Regional value
Estimates demonstrate that 1-2% of income relative to the total GRP is generated in
the sector. The share is faint, which exposes high potential of the sector and
opportunities for development to adjust the region to all EU directives in the field of
environment protection (until the end of all transition periods which Poland managed to
establish).
SWOT analysis
STRENGTHS
 Extended system of environmental
protection.
 EU
regulations
and
directives
concerning environmental protection.
 Support from the Lublin academic
center.
 Rising awareness of the society
OPPORTUNITIES

Investment programmes supported
by EU funds.
 The extension of ecological areas.
 The
implementation
of
local
environmental protection programmes.
WEAKNESSES
 Great investment needs.
 Dominant
small
and
medium
size
companies.
 No companies of national renown.
 High and occasionally corrupt competition
within the sector.
 Low level of innovation
THREATS
 Companies having difficulties in compying
with
new
regulations
concerning
environmental protection.
 Insufficient
consideration
of
environmental requirements in enterprise
developement policy
55
The most important players and projects in the sector

Most important companies
Geology & Environmental Protection EKO-GEO (www.ekogeo.com.pl). At the
beginning of its activity it brought together a few specialists with relevant knowledge and
experience in sulphur and coal industry in fields of geology, hydrogeology, environmental
protection, water supply & sewage disposal. It prepares documents necessary for
receiving grants from the European Union (Report on Environmental Impact Assessment,
Feasibilty Study and Project Fiche). Since 1999 they have prepared documents mainly for
infrastructure projects: roads, waste water treatment plants, water supply networks and
sewage systems (e.g. Renovating the Old Town in Lublin). In 2001 EKO-GEO Consulting
was separated from EKO-GEO Geology & Environmental Protection and focused on
preparing all kinds of economic & financial analysis in forms of Feasibility Studies,
Bussiness Plans and Development Strategies of Cities and Communes. The Lublin
Agency of Environmental Protection - the mission of the firm is to protect natural
environment and therefore to increase the quality of living through harmonizing
economical and social targets with the aims of ecological policy. Klimapol
(www.klimapol.pl) is a company that offers advanced technologies and solutions,
which are used in the environmental protection sector. It specializes in processing of
deposit coming into existence in the route of cleaning sewers and optimization of
technological processes. Kom-Eko (www.kom-eko.lublin.pl) KOM-EKO, beside
cleaning towns/cities, is involved in advanced waste recycling and segregation. The
company was rewarded for its application of modern technologies in the field of waste
segregation. Polifolia is another renowned company which processes plastic waste into
plastic foil goods.


Institutions integrating and supporting the sector / cooperation in the sector

Lublin Agency of Environmental Protection

Regional Fund of Environmental Protection and Water Sources

Lublin Ecological Office

Lublin Fundation of Environment Protection- Regional Centre of Ecological
Education

UNESCO Ecological Club

Ecological Association ‘For Earth’

The Regional Inspectorate of Environmental Protection

The Regional Fund of Environmnetal Protection
Innovative project/product/service application
MPWiK which services water supply in Lublin, applies innovative methods of water
treatment.
56

Examples of research and implementation projects realized with universities
The cooperation between the environmental technologies sector companies and
universities runs mostly with the University of Technology in Lublin. The department of
Environmental Engineering is one of the management of residue waste from Lublin
sewage treatment plants, new methods of pollution reduction and utilizing production
waste in regional cement plants. Agricultural University in Lublin initiated research into
natural methods of cyanophyceae elimination from lakes and the program has been
realized on the Zemborzyce artificial lake for 3 years.
Cross-border situation

Situation in neighbouring region in analogous sector
When characterizing the environment protection sector in the Volyn
oblast/region, it needs to be stressed that the sector’s development is slow not only in
the region but in entire country. Considering the specific character of Ukrainian economy
development, investments in this sector are unprofitable. Hence many companies in the
profile are still public and heavily subsidized. The market regulates only small private
enterprises, e.g. Landshaft which offers services in green area design in Lutsk.
The “Ecology 2010” program was developed in 2005 in the Volyn oblast/region. It is a
long term strategy of the regional environment protection, which determines the
priorities in this field. According to the program framework the most prominent
operations in ecology in the region for the coming years are modernization and
development of sewage piping and treatment infrastructure which has for many years
been completely outdated and does not meet ecological requirements. Other priorities
include design and development of modern storage areas for solid waste and
modernization of the farming system for better soil protection. There are also important
plans to increase the number of natural reserves, which is going to improve tourist
appeal of the region.
One of the most disturbing problems in the region is radioactive contamination. Statistics
demonstrate that the average soil contamination in the area after the Chernobyl nuclear
power plant breakdown increased tenfold, and in the most devastated areas (KaminKashirsky, Lubeshivsky, Manevichivsky regions) it was even fifty times higher. Thus the
majority of total funds intended for environment protection is directed to eliminate the
damages after the breakdown5.
In the 2006 budget of the Volyn oblast/region the amount of 961.000 UAH (188.000
USD) is intended for environment protection, including 582.000 UAH for soil protection
against the effects of Chernobyl breakdown, 170.000 for waste recycling, 174.000 for
protection and rationing of natural resources utilization, and 35.000 for any other
operations within the scope of ecology. However, it needs to be emphasized that the
amount constitutes merely 0,17% of total budget resources in the region 6. There is a
huge potential for business development.

Cross-border cooperation
Transnational partnership of the lubelskie voivodship and the Volyn oblast/region in
the field of ecology resulted in the projects “Joint management of water resources in the
5
6
See: http://www.voladm.gov.ua.
Rishennya Pro oblasnyj biudżet na 2006 rik vid 30.12.2005 no. 25/3, Holovne Finansowe Upravlinnya
Volynskoji Oblderzhadministraciji, Lutsk 2005.
57
basin of the Pryp’yat river” (within the TACIS program) and “Developing transnational
strategy for preventing floods in the Bug riverbed” (co-funded by PHARE).
e) IT sector
General description

Number of companies in this sector and tendencies of development
The IT sector has been one of the most dynamically developing sector in economy for
the past few years. Also in the Lubelskie Region the sector is presently booming, which
results also in the fact, that more companies connected with IT technologies are coming
into existence. The IT sector is the one in the region which has great chances to develop
on the condition of development of other sectors. At present there are several successful
companies, mainly in the capital of the region, that play the important role on the
market. Major companies in the IT sector in the region belong to the leader position of
the IT sector in the country – in their profiles and recess segments. They deploy more
frequently modern solutions not different form the ones commonly applied in EU rope.
The majority of these companies sell their products all over Poland. Some of them intend
of expand to the EU markets.

Employees
In all companies in the sector (including small one-person family businesses) over
5000 people found employment.

Regional value
The sector’s development may be crucial for the regional economy in the future. In
the present situation with poor communication accessibility of the region and,
consequently low FDI inflow, the IT sector may well become one of the mainstays of
regional knowledge-based development and prevent the outflow of highly educated
university graduates to other cities. Presently many graduates choose employment in the
sector and stay in the region. Their income is considerably higher than average, thus
improving the economic network of Lublin (in other parts of the region the IT sector
virtually isn’t developed). It is worth emphasizing that successful activity of many IT
companies attracts talented employees and encourages to open new enterprises.
Unfortunately, the region still lacks a large foreign investor in the sector who would open
an IT Research Center.
Considering the lack of detailed reports on the studied sector, what can be demonstrated
is estimated figures of companies’ profits and the level of employment. Turnovers of five
crucial IT companies in the region in 2005 reached above 120mln €, with employment
totaled in 600.
58
SWOT analysis
STRENGTHS
 High
level
of
technological
advancement and innovative character in
IT regional companies.
 High level of entire Polish market
penetration and good recognition of
sector companies.
 Existence
of
several
companies
nationally renowned.
 Wide access to qualified IT staff from
the Lublin academic center.
 Fairly low costs of employment
 Short distance to Warsaw where most
potential customers are being located
OPPORTUNITIES
 Attracting new companies to the sector.
 Development of cooperation with the
Lublin academic center in terms of new
IT solutions.
 Expansion
of
regional
companies
towards Central and Eastern Europe and
(or) Western Europe.
 Opening research centers in the region
by western corporations
WEAKNESSES





Lack of foreign investment into the
sector.
Faint (or no) support from the local
authorities of the city and voivodship
Majority of companies are small and
medium size.
Lack of resources for new products and
database systems development.
Services of mainly niche character.
THREATS

Hostile takeovers and bringing IT
regional companies down to role of
subcontractors of major international
corporations.
 IT sector regress in Poland
 Employment of top graduates of IT and
technology department by companies in
Warsaw.
The most important players and projects in the sector

Most important companies
The major and most innovative companies in the IT sector in the region offer a wide
variety of services in programming and developing support management systems in
companies and public institutions. There are also several companies producing computer
systems mostly wireless. Quite well developed are the services in sales of ready made
systems and hardware service and logistics.
Anica System (www.anicasystem.com.pl) which is a Polish-origin IT company,
specializes in developing and implementing mobile, integrated and analytical solutions to
support the management of networks of sales representatives. The company is: the
leader on the market of mobile systems, especially support systems for companies which
operate through its representatives; the producer of ebi mobile – a leading SFA (Sales
Force Automation) class system on the Polish market which helps thousands of users
send an infinite number of orders to nearly a thousand of distributors. Anica System
provides IT solutions and a viable business partner offering a broad canvas of
consultancy services within the framework of its implementation projects. It offers
comprehensive outsourcing services to its clients including infrastructure, software, and a
highly specialist service package. The enterprise is a business partner of several dozen
largest FMCG companies, both manufacturers and distributors, pharmaceuticals, financial
59
institutions, and public sector organizations7. In 2006 the company wants to enter the
Warsaw Stock Exchange to gain capital for development and establishing new
outsourcing date center.
Infinite (www.infinite.pl) is another company that creates modern IT solutions that
boost the efficiency of an enterprise's functioning. The use of those tools allows company
client's economic processes to be executed faster, cheaper, more effectively and
faultlessly. They particularly specialize in planning, designing and building solutions with
regard to the following: Electronic Data Interchange (EDI communication), integrated IT
Systems, modern marketing solutions, retail market analysis, shop systems.
Currently the solutions made by Infinite are used by approximately 1850 different firms,
from the greatest international concerns to the smallest family firms. Thanks to correctly
programmed input-output channels and index translators it is possible to fully integrate
with clients' IT systems. The company has received numerous awards in national
competitions for its modern technological and innovative solutions.
MikroBIT (www.mikrobit.pl) is a company with a strong position on the local IT
market. It produces software for entrepreneurs and local government offices. The
company also implements the software and ensure the complex service from advising
through delivery and installation of the software. The company has won many awards
e.g. the Economic Award Of the Lublin Region, The Regional Business Leader, The
Economic Award of Eastern Poland, Excellence in Business Award, The Most Innovative
Company Title. The company has made internet visualization of the national general
election in 2005 which was considered the most technologically advanced and the best
visualization of elections in Poland so far.
Safo S.A. (www.safo.biz) is the company that specializes in creating the enterprise
management systems. They make logistic programs called ‘safo.mag’ which are used by
the biggest companies in the country. The software developed by the company works in
the total of over 250 enterprises in Poland.
ICom (www.intercom.pl) is one of the top producers of notebooks in Poland. Its
products score high points in various tests of the most prestigious computing periodicals
in Poland.

Institutions integrating and supporting the sector / cooperation in the sector
IT Companies in the region are not integrated and do not cooperate closely with one
another, within e. g. sector institutions. It may result from the fact that they operate in
competitive market segments.

Innovative project/product/service application
Small but dynamically developing IT sector has many innovative and successful
projects such as for example computer program eSARD made by Infinite. The program
analyzes data about sales dynamic, competitive products which is crucial for the
enterprise management. Also Mikrobit has advanced solutions for customers like
managing systems connected with MRP, MRP II, ERP standards. One of the most
advanced corporation software in Europe, which operates on smartphones originated in
eLeader in Lublin.
7
See: www.anicasystem.com.pl
60

Examples of research and implementation projects carried out with universities
Cooperation with universities is poorly developed. It is limited to sharing information
on the talented graduates. There are no joint research projects of business and
universities realized in IT. One of the reasons is presumably that departments educating
in IT are fairly fresh and do not have the expert research personnel. Most IT institutes
and departments in the region employ people who are experienced in scientific research
in physics or mathematics and who had to change their qualifications.
Cross-border situation

Situation in neighbouring region in analogous sector
The information and communication technology sector in the Volyn
oblast/region is beginning to develop. Considering the lack of access to technologies
and the general lack of resources in economy, the sector was developing unhurriedly
compared to other countries. It also resulted from the lack of qualified staff.
Currently, however, the ICT market in entire Ukraine is booming and making up for the
lost time. In 2005 the number of mobile phone users in Ukraine increased twofold and
now as much as 60% of the entire population owns a mobile phone. Compared to 2001,
the rate increased thirteen times. Over 14% of population has access to the Internet.
FITL network is quickly developing. The share of IT sector in national GDP is ca. 6%.
In 2005 in the Volyn oblast/region the number of Internet connections increased twofold.
The “Ukrtelecom” enterprise launched new FITL networks: Kovel-Ratne-Belarus and
Gorochiv-Volodymir-Volynsk. Presently the broadband Internet connection is available in
all cities of the region. A new radio transmission center was launched as well. The mobile
operators (“Kyivstar” and “UMC”) installed 13 new transmitters in the region in 2005.
The largest income and turnover in the sector is generated by telecom companies, and
particularly by mobile operators. For this reason the sector attracts the majority of
investments. 40% of funds in the sector development came from foreign investors.
In the Volyn oblast/region there are also other IT services which develop quite quickly
and dynamically. Numerous large portals on economic, industrial and other information
have been developed. On-line sale is growing. Internet service providers are “Visor”,
“Infokom” and “Fotakom” (and the aforementioned “Ukrtelekom” corporation).

Cross-border cooperation
Within the scope of IT the cooperation works nationally. The contract signed by
Poland and Ukraine is limited to joint operation in the field of electronic communication.
There are no significant projects of shared operation by the lubelskie voivodship and the
Volyn oblast/region in this area.
61
f) Mechanical engineering sector
General description

Number of companies in this sector and tendencies of development
Mechanical engineering industry in the Lublin Region has a long tradition. For
instance, cars and planes were produced in Lublin in the interwar period. After the Warld
War II production of lorries and delivery trucks was also developed. In the 1990’s Lublin
was a place of French (Peugeot) and then Korean (Daewoo) car assembly. Additionally,
other products in his profile have been manufactured here since the second half of the
19th century.
Nowadays engineering industry in Lubelskie has many representatives. The sector has
been developing fairly quickly and, what is essential, it has attracted foreign investments.
The prospects seem promising since many regional companies enjoy nationally renowned
brand names and the scope of international cooperation is extending (e.g. cooperation
with the largest world corporations). Due to strong institutional support, qualified
personnel and high quality of vocational education, with low production costs at the same
time, the sector has opportunities (similar to those in the IT sector) to attract further
foreign investments. A fairly well developed industrial infrastructure of the former
Daewoo car plant in Lublin is also quite significant for the sector to attract foreign capital.
The plant is presently leased and operated by many new companies. Now the sector FDI
is second in the region, right after trade which enjoys high interest (due to high rate of
return on investment), and despite unfavorable transportation network with the rest of
Poland.
The essential factor which substantiates the fact that engineering industry is a strategic
sector of the regional economy, is also qualified and cheap labour. Technical University
Of Lublin is not only the educational centre, but also scientific-research center, which is
willing to cooperate with enterprises and it provides highly qualified staff. The existence
of many enterprises in the engineering industry sector creates the opportunity for subsuppliers and cooperators and gives a solid base for the engineering cluster in the region.
The priority direction in the development of engineering sector is the development of the
high-tech industry. There are many advantageous conditions in the region for
establishing the aviation valley based on PZL Swidnik, Park of Technology in Swidnik,
scientific-research potential of the University of Technology in Lublin and qualified
personnel. Innovative acitivities in the scope of advanced technologies can be supported
by the Regional Innovation Strategy funds.
In terms of the number of companies in the sector, only estimates are available: in 2004
there were ca. 1300-1400 entities, including 170 trade law companies. Compared to
2000, the number increased insignificantly by several percent.

Employees
People employed in the mechanical engineering sector constituted 12,6% of the total
number of the employed in the entire manufacturing (13800 employees). The biggest
company in that sector – PZL Swidnik employed in 2004 more than 3000 people.
62

Regional value
As already mentioned, the sector contributes much to the regional economy. The
sector sold output in 2004 constituted 9,1% of sales in the entire manufacturing and
totaled 350mln €. The output is highly clustered since 5 largest companies generate
almost 60% of the sector’s income. Production growth in the same year, compared to the
previous year, was 22,5%. The average salary in the sector was 21,8% higher than the
average for the entire manufacturing8.
SWOT analysis
STRENGTHS
 Diversity of industry potential, which
obtains high participation in national and
international commerce.
 Sufficient level of
automation in the
industry production connected with the
usage of IT technologies in companies.
 Existence of a few renowned companies
with national importance.
 Huge tradition in the sector.
 Great resources of highly qualified
personnel.
 Relatively cheap labour force.
 The existence of institutional system of
innovation support in the Region (Lublin
Park of Science and Technology, Regional
Information Centre (RIC)).
OPPORTUNITIES

Improvement in communication network
in the region.
 Attracting new investments, including
foreign investors.
 Expanding network of technologically
advanced partners.
WEAKNESSES

Low level of economic development of
the Region.
 Low level of advanced technologies
and implementation of technological
progress, especially in case of SME
enterprises.
 Technological gap in the most of
Region’s production in comparison with
the latest world achievements.
 Low level of innovation in companies.
THREATS
 Disadvantageous level of capital
investments in comparison to other EU
countries and Polish regions.
 The possibility of using the public
funds for consumption rather than for
investments
 Possible difficulties in usage of HighTech solutions.
 Increasing capital barrier
 Further restructuralisation in
companies, based mostly on
employment cuts
The most important players and projects in the sector

Most important companies
In the Lublin region the mechanical engineering sector offers a wide variety of
products. The most renowned and innovative enterprises produce cars and car parts,
agricultural equipment, helicopters, equipment for the food industry, component parts for
construction machines, hydraulics equipment and others.
8
Statistical Yearbook 2005, Statistical Office, Lublin 2006, pp. 305-310
63
Very important role in the regional industry plays WSK “PZL” Swidnik
(www.pzl.swidnik.pl). For over 50 years the company has been the leader in aviation
production in Poland. Currently, alongside the manufacture of several marks of
helicopters for national use and for export, it cooperates with the most renowned and
significant international companies (Augusta, Boeing, etc.) producing parts and
components for airplanes and helicopters.
INTRALL Polska (www.intrall.pl) was established in December 2003. As a new
manufacturer, the company have successfully started rebuilding LUBLIN 3 car brand
name and gaining the market share in light commercial vehicles segment. The Company
cooperates with nearly 300 suppliers in Poland and more than 20 suppliers from abroad.
Since the start of the Company operation INTRALL Polska has employed 540 people. It is
directly related to the achieved and forecasted steady increase in production volume. The
LUBLIN 3 dealers network has grown up from 37 centres in the beginning of the
operation to 50 currently. A significant aspect of the company’s activity is designing new
technological solutions in manufactured cars. For this reason the Research and
Development Center was established which is equipped with modern designing
instruments and employs top constructors.
SIPMA (www.sipma.pl) is a leader among the farming equipment manufacturers in
Poland. The company’s success was achieved mainly due to innovative production
technologies and offering technologically advanced agricultural equipment.The reputation
of the company’s products among customers is evidenced by many medals, cups and
diplomas granted by the committees of various trade fairs and exhibitions. It was the
only Polish company to be awarded 7 golden medals during the International Trade Fair
"POLAGRA" in Poznań. In 2003, the company self-loading bale wrapping machine Z-557
was granted the "AGRO POLSKA" Promotion Logo. Other awards are: the Reliable Partner
Certificate, Perfect Company award, and a diploma of "The Best Innovative Company in
Lublin Region". Sipma is among the few Polish companies which participated in the offset
project F-16 realized in cooperation with American partners.
SAME DEUTZ-FAHR Polska (www.samedeutz-fahr.pl) is one of the leading
producers of tractors in the world. The company's products are made in five production
plants: Treviglio, Italy, Lauingen, Germany, Lublin, Poland, Ranipet, India and Zupanja,
Croatia. SDF boasts around 100 importers all over the world, serving a sales and service
network of some 3,000 dealers. The company’s success was possible due to deploying
modern technologies, innovative character and high quality of products. In the plant near
Lublin the company invested 25mln € and employs 300 people. It produces 3000 tractors
per year and is the most efficient of the SDF plants in the world.
Lift Service (www.lift.pl) is a joint-stock company with 21 years of uninterrupted lift
trade work. The company’s products represent the highest level of European engineering
- the production rests on Swiss Bucher Hydraulik Company and the modern lift controller
produced by ThyssenKrupp Elevator (which is a shareholder of the company). Lift Service
was awarded the Lublin Governor Economy Award for the best invention in the field of
product and technology. The lifts made by the company are characterized by innovative
technological solutions. The company employs 240 people and generates 10mln € annual
income.
Among other crucial companies within the mechanical engineering sector there are the
following: Inergy Automotive Systems Poland (innovative producer of component
parts to motor vehicles and their engines – a French investor), Caterpillar Poland
(producing components to construction equipment, which in 2005 was the first company
in Poland to obtain the Class A certificate), Ecris Polska (representative of Volvo, which
invested 10mln € in Lublin to produce cabs to Volvo trucks), Transtools (hydraulics
64
instruments producer – a German investor), Sigma (mining equipment producer) and
Echo-Son (manufacturing modern ultrasonic scanners for which the company received
numerous awards and certificates).

Institutions integrating and supporting the sector / cooperation in the sector
In the region there are numerous institutions organizing and coordinating the
cooperation within the industrial sector, including the profile of interest here. One of such
institutions is The Regional Chamber of Commerce in Lublin (www.rig.lublin.pl),
the organization of the economic self-government, representing the business of its
members as far as production, trade, building and service are concerned. There is a court
of conciliation by the Chamber, which can arbitrate disputes between companiesmembers of the Chamber as well as companies non-members. The Lublin Business
Club Association (www.lkb.lublin.pl) is the biggest regional organization created to
serve the needs of investors, institutions and entrepreneurs of the Lublin region. The
association was launched in the year 2000. Today, over 300 representatives of regional
companies, SME's as well as large ones, are supporting the idea and the total of mebers
is at the moment 150 companies. BCA helps companies to promote their business and to
create contacts both in Poland and abroad. Business Club of Lublin organizes
international meetings for business people and arranges commercial delegations abroad
for companies interested in foreign investment. It offers education, organizes seminars
and conferences.

Innovative project/product/service application
Companies within the mechanical engineering sector manufacture many innovative
products. One of them is Lift Service, that continually introduces new technologies.They
offer the decentralized LS-2020 control system which is destined for the cooperation with
passenger and goods lifts of all types. All the control units are connected by a CAN bus to
reduce the installation costs. The LS-2020 controller is equipped with a user-friendly
interface with Polish, English and Russian languages.The controller registers last 99 faults
and keeps them in an EEPROM together with a travel counter. A special device can be
used to enable voice communication between passengers in a car and a service call
center. Also technology, innovation, reliability, quality and high standard of customer
service are the fundamental pillars of development and strategic priorities for Same
Deutz-Fahr Polska company. The product range, which includes models from 30 to 265
HP, therefore covers all possible requirements, including special purpose and crawler
tractors. Advanced technologies are also implemented by SIPMA. The company has
deployed the BaaN advanced integrated management system based on world standard
computer technology, as well as the Quality Management System ISO 9001:2000 and
machine design system 3D Solid Edge.

Examples of research and implementation projects realized with universities
Regional companies cooperate with universities (mostly with the University of
Technology in Lublin – UT). One of the example of research and implementation of
projects realized with universities is LS-2020 control system worked out by Lift Service in
cooperation with scientists from the above mentioned university. The UT offers a course
on constructing and operating helicopters for PZL Swidnik. The majority of the course
graduates find employment in the company. Unfortunately, the access to projects
realized in cooperation of the business line in question with universities is difficult since
the majority of projects remain undisclosed.
65
Cross-border situation

Situation in neighbouring region in analogous sector
Engineering industry is of high importance for the economy of the region. The sector
is among the few that are currently the driving force behind the regional development.
As much as 11% of total industrial output is produced in this particular sector. In 2005
the increase in production value in the engineering industry reached 47%. The number of
companies within the sector is not high, they are clustered in larger industrial centers in
the region.
The most significant of them is Lutsk and its suburbs where the largest industrial
companies are located, including Elektotermometria (“Electothermometry”) which
produces ca. 30% of Ukrainian measuring instruments, and Lutsk Bearing Plant
producing 50% of total amount of bearings in Ukraine. Lutsk is one of the few centers in
Ukraine with developing automobile industry. The ŁuAZ (“Lutsk Automobile Plant”)
produces 20% of the total car production in the country. In 2005 the plant increased its
output by 40%. Almost 30.000 cars were produced so far, including 1100 of KIA and
Hyundai marks. The remaining cars are the Russian VAZ mark. In the same year the
plant provided almost 800 new jobs. Lutsk is also the place where electrical and
municipal equipment is produced.
Volyn is the industrial center known also for production of agricultural equipment. There
are large plants “Kowelsilmash” and “Rozhyshefermmash” in Kovel and Rozhyshe
respectively. Other companies in the region produce machines for cattle breeding
automation, transport trailers and other equipment. In Kovel there are plants specializing
in modernization and reconstruction of railroad trucks.
Machine engineering industry in the Volyn oblast/region is quite profitable and has many
opportunities for development. The majority of investments in the recent years has been
directed into this particular sector. It is also fairly competitive both on the home market
and abroad (25,5% of total regional export is machines and equipment). However the
vast majority of export from this sector goes to Russia and Belarus. Only some
measuring instruments and component parts (due to their low prices) can be highly
competitive on European markets.

Cross-border cooperation
There are no significant projects of shared operation by the Lublin region and the Volyn
oblast/region in this area.
66
VI.
Andalucía (Spain)
a) Introduction
The Andalusian economy maintains a productive structure more traditional than
the national average, due to a higher proportion in the primary sector.
Industry also has a lower level of modernisation than the national average and it is
mainly focused to activities of low technological content. Although energy sector has a
high potential for the development of the renewable energetic resources, with enclaves of
great possibilities for wind, hydraulic, biomass and solar energies, Andalusia has an
important energy deficit.
There is a higher presence of the Service Sector in the Andalusian economy, basically
due to Commerce and Tourism activities.
67
b) Agro-business sector
General description

Number of companies in this sector and tendencies of development
The number of farms is up to 274,136 in 2002.
Andalusian agriculture has developed in the last years, in the sense farmers have
modernized adopting a huge number of innovations. In general, no large companies have
been created and most farms are still being small, even those called ‘large states’ in
other ages. It could be said that all the farming companies are in the group of SMEs.
This evolution has defined that agriculture have lost its ancient importance as the
supplier sector of food to the consumers, due to the higher specific importance achieved
by alimentary transformation and distribution sectors. Agriculture is being replaced in the
food supplying by the agro alimentary system.
The Andalusian agriculture spaces and the methods of farming are quite varied. In the
low coast Areas, subtropical and intensive cultivation under plastic are the base of a very
dynamical agriculture.
One of the most representative cases in this sector is the corresponding to the Eastern
Almeria region, which highly is involved in vegetables production. The fruit and vegetable
expansion of this region follows these features:
 A growing number of small familiar farm companies and some other higher farms,
which use wage-earning labour force, located in a relatively small place.
 Creation of cooperatives which are mainly destined to export.
 Specialization in the different stages of production and commercialisation.
 Expansion of the production and commercialisation companies together with the
creation of auxiliary companies.

Employees
During the last three months of 2005 the number of people working in this sector was
283,500 people, according to the Working Population Poll.

Regional value
There are a lot of historical, social and geographical factors to explain why Andalusia
goes on being one of the European regions in which agriculture still plays a key role in
the socioeconomic reality of the region. The farming activity has an important weight so
it determines its own role as backbone of the socioeconomic tissue of the country land.
Due to this strategical, territorial, social and environmental dependence of the rural area
in this Autonomous Region, every circumstance, coming both from regional or outer,
which may affect agrarian sector will have a determinant impact on Andalusia.
68
Farming production, including grants to crops, achieved in 2005 incomes up to 10,055
millions euros.
This value for the region represented a 24 percent of the national total in 2005.
This sector is much shared along all the Andalusian land, where is able to create job
opportunities and richness. Moreover, more than a half of the products that Andalusia
exports are coming from the farming sector.
SWOT analysis
STRENGTHS


Important level of competitiveness.
High export capacity, mainly in
vegetables, fruits and olive oil.
 Support of agriculture in a farming
sector well organized.
 Introduction
of
new
crops,
no
endogenous and very profitable.
OPPORTUNITIES
 Advantageous weather.
 Fertility of the lands.
 Encouraging of products with special
characteristics produced in a determined
region and there is a tradition in their
production.
WEAKNESSES
 Deficit on modernisation of an important
segment of the farms.
 Necessity of improvement in marketing
area.
 Unable to generate incomes and
employment in some rural areas.
 Lack of modernisation in the fisheries
sector.
THREATS


Process of turning land into desert.
Irregularity of the rainy.
The most important players and projects in the sector

Most important companies
Commercialization cooperatives of farming products have a huge importance in
Andalusia, especially in products like oil, fruits and vegetables, cattle raising and lacteals.
Particularly in oil, the first positions correspond to second level cooperatives specialised
in olive oil. The most important are the following:
 Hojiblanca Oil Cooperative of Malaga (Cooperativa Oleícola Hojiblanca de Málaga).
 Cordoliva Cooperative (Cooperativa Cordoliva).
 Jaencoop Cooperative (Cooperativa Jaencoop).

Institutions integrating and supporting the sector / cooperation in the sector
On the one hand, since 2006 the European Union has created in Spain a special fund
for research and development, guaranteeing the direct grants to agriculture till 2013.
On the other hand, the Andalusian Regional Government has the aim of contributing to
increase and improve the life and work conditions in the rural areas through the
69
Framework Plan of Agriculture, Cattle Raising and Rural Environment of Andalusia (Plan
Director de la Agricultura, Ganadería y Medio Rural de Andalucía).
In the farming sector there are networks in which a group of companies collaborates
among them. They present different variations, from those networks with very intense
relations, based in a hard integration of the companies involved, to those characterised
by a situation in which the relations are weaker.
Most relations involve commercial cooperation. However, they also may include relations
of other types like, for instance, production, products transportation, collective trade
marks, R&D or exchange of technical information.
A farming company may decide to join a network of companies in which there is a main
farming company to establish a commitment to deliver a product with a determined
specification. The farmer joins a group of companies in which marketing activities are
carried out by the main company, although the farmer could implicate more him/herself
or whether collaborate in these actions or not. This is the case, for instance, of the
lacteals producers, which own a network of milk suppliers, meat industries, sugar
companies and preserved vegetable companies.

Innovative project/product/service application
Several technical and organizational innovations have being introducing in the
vegetable production of Almeria. One of the characteristics is the system of "sanding",
that consists on covering the ground with a coat of manure and a coat of sand, in order
to diminish evaporation and it saves water for irrigation. This system also makes the
vegetable maturation to arrive faster due to the increased temperature effect, removing
at the same time the weed, as well as eliminating the salinity effect of the waters.
Other important innovation is the one regarding to the cultivation under plastic. It is
remarkable the creation of a greenhouse adapted to the area necessities, without a
heating system, exploiting heat irradiation during the day and avoiding the cold
temperatures at night.
The Project OLIVÍSSIMO, promoted by the Foundation CITOLIVA and the Foundation of
the Olive Tree, aims the commercialisation of products in which the animal fat added is
replaced by virgin olive oil. It is an innovative project for the commercialisation of olive
oil, through the contact with other companies, with the aim of making a wider range of
products authorised, like the already cooked and precooked dishes, as well as dietetic.

Examples of research and implementation projects realized with universities
The University of Almeria Rural Engineering Group is carrying out a research project
for the development of new materials for protection of cultivation under plastic. The aim
of the project is to protect greenhouses against plagues, without damaging the
ventilation systems. The project is being developed in collaboration with some companies
and with the Center of Agro Alimentary Innovation and Technology.
70
Cross border situation

Situation in neighbouring region in analogous sector
The farming sector plays a leading role in the Moroccan economy, which is reflected
in its important impact in terms of employment, contribution to GDP and sharing of
national exports.
As a Mediterranean country, the agrarian sector in Morocco is featured by the production
and export of vegetables and fruits.
The rainy periods presents many fluctuations between one year and the following, with
several periods of long droughts. Moreover, inside the country there are remarkable
differences between the rains recorded from one region to another.
The farming production has increased in a regular way in the last years, which has
permitted to face the necessities of a continuously increasing population. The self food
supplying has improved and it has maintained a remarkable export flow in some
products. Some factors have contributed to this progress, like the increasing extension of
the irrigation farming and the policies of support and protection of the sector.
Regarding to Tunisia, some problems are detected in the agrarian sector, like the
important variability of production both quantitative and qualitative from one year to
another. In addition to that, the limited performance of its crops is far from its
competitor countries.
For these reasons, an improve in the performance is required in the sector, falling upon
factors like the increasing of lands dedicated to irrigation farming, the development of
research or the solution of the excessive division of the land into plots, in order to
improve the profitability.

Cross-border cooperation
A collaboration project between the Andalusian and Moroccan citrus sector, called AlAndalus Citrus, included in the European program Interreg III, establishes different lines
of collaboration with the aim of eliminating the reciprocal feeling of competitiveness and
to turn it on an improvement of their resources, based in investments of agrarian
entrepreneurs in Morocco and vice versa.
c) Tourism sector
General description

Number of companies in this sector and tendencies of development
The motivation of tourists who visit Andalusia has been diversifying in the last years.
So, although beaches and weather are still the first reasons to choose Andalusia as a
tourist destination, some other elements are encouraging the tourism, like the historic
heritage.
71
In the last years it has producing an important development of the rural tourism,
promoting the natural resources of interior regions. This fact, together with the
enlargement of the high tourist season, it is translated in a minor dependence of the
season factor.
The Andalusian tourist offer includes a complete network of leisure facilities. Apart from
the big thematic parks, like Isla Mágica in Sevilla, it is necessary to mention the highest
concentration of golf clubs in Spain and also the European southern sky station of Sierra
Nevada. The region also has 37 yachting harbours and several ports of entry.
In close relation with the tourist sector, sport has been an outstanding element for
foreign projection in the last years. Among other international competitions, the following
have been celebrated in Andalusia: the Sevilla 99 Athletism World Championship, Sevilla
2002 Piraguism and Rowing World Championship, the Cadiz 2003 Olimpic Sailing World
Championship, the Huelva 2004 Iberoamerican Athletism Games and the Almería 2005
Mediterranean Games.
An important phenomenon is the evolution that the lowcost airlines are experiencing, and
also the increase of the individual arrangement of travels, which are the most popular
option to travellers, facing those who prefer to make use of intermediates or travel
agencies.
Andalusia accomplishes with the requirements of the visitants in relation to quality of the
accommodation, whose relation quality-cost, moreover, is mainly considered as very
good.
In relation to the world tourist scenery, Andalusia presents good perspectives for the
future derived from its conditions of European destiny and the interest that creates the
Andalusian cultural heritage in emerging markets like the Asian.
The forecast of the Council of Tourism, Commerce and Sport for 2006 indicates an
increase of 5.2 percent in the number of visitants, over the 24 millions, especially due to
the national tourism.

Employees
In Andalusia, during year 2005, 375,000 employments were achieved related to
tourist sector.

Regional value
Tourism is an important source of employment in Andalusia, playing a leading role for
the development of the regional economy, especially due to its effect on other sectors
like the commerce.
In 2005, 23.6 million tourists visited Andalusia, and the sector generated richness up to a
13 percent of the Andalusia GDP.
72
SWOT analysis
STRENGTHS



Good quality of the tourist offer.
Good relation quality-cost.
High level of health conditions.
Decrease of dependence in the
seasoning of tourist demand.
OPPORTUNITIES
 Huge natural and cultural heritage.
 Geographic situation.
 Favourable weather.
WEAKNESSES
 Not enough development of rural, cultural
and environmental tourism.
 Education of human resources in some
sectors of the tourist offer.
 Marketing, promotion and diversification
of the tourist offer.
 Lack
of
events
of
international
repercussion.
THREATS
 Competitiveness
of
other
tourist
destinations.
 Reduction of grants to the sector.
The most important players and projects in the sector

Most important companies
The main companies of this sector are associated in different sectorial organisations:

Association of Promoters of Residential and Sport Tourism in Andalusia
(Asociación de Promotores de Turismo Residencial y Deportivo de Andalucía).

Andalusian Federation of Hotel Trade (Federación Andaluza de Hostelería).

Travel Agencies Business Federation of Andalusia (Federación Empresarial de
Agencias de Viaje de Andalucía).

Andalusian Association of Cruisers and Leisure Tourist Businesses (Asociación
Andaluza de Empresas Turísticas de Cruceros y Ocio).
Association of Rural Hotels of Andalusia (Asociación de Hoteles Rurales de
Andalucía).
Association of Equestrian and Rural Tourism Entrepreneurs of Andalusia
(Asociación de Empresarios de Turismo Ecuestre y Rural de Andalucía).



Institutions integrating and supporting the sector / cooperation in the sector
The support to the sector is produced by institutions like the Ministry of Industry,
Trade and Commerce, the Junta de Andalucía Regional Council of Tourism, Trade and
Sport or the Innovation and Development Agency of Andalusia.

Innovative project/product/service application
The innovation may be introduced in the sector with the aim of improve and
modernise the tourist services and to promote the competitiveness among the
companies.
It is also possible the introduction of new technologies in the tourism area. In this sense,
there are different applications like virtual tourist tours or arqueological researches.
73
Project Turinnova is a good example, whose aim is the increase of competitiveness of
SMEs in the Tourist sector of Baleares and Andalusia, through the practice application in
companies of the Value Analysis’s methodology.

Examples of research and implementation projects realized with universities
Scientists from the University of Jaen Computing Department, in collaboration with
the University of Granada and the Travel Agency ViveSpain, have developed a completely
innovative work of application to the adventure sport.
It deals with the introduction of a system of communication that integrates information
from different sources, as meteorological data or routes already done and signalised by
GPS, in order to help both expert and novel pilots in flying without engine, and also
travel agents in the design of routes of free flight. In the future, the system is intended
to involve those activities regarding to tourism which me be forecasted, like hang-glider.
Cross-border situation

Situation in neighbouring region in analogous sector
Tourist sector in Morocco shows important advantages due to its several natural and
cultural attractions, a political stability and closeness to Europe.
The Government has implemented the strategy known as "View 2010", which consists on
a date Morocco has forecasted to be the end of the great tourist projects that have
already begun, like the construction of huge hotel complexes to be able to receive ten
million tourist per year since that year.
Tourism is the most important economic activity in Tunisia, which is making efforts to
diversify the tourist products. Its image of political stability and its geographical situation
in the Mediterranean are two of the advantages.
Nevertheless, the country has an important concentration of tourist frameworks in some
coastal areas, planning the necessity of offering tourist alternatives outside the great
hotel facilities.

Cross-border cooperation
As an example of cross-border cooperation in the tourist area, we may mention the
Interreg Project of tourist quality and cross-border cooperation, which has been
developed between Nerja (Malaga) and Tanger (Morocco).
The project deals with an exchange of experiences for the implementation of an Online
Tourist Courier Service in Tanger that warns the visitants of cultural and sport activities
carried out in the city. This initiative is working successfully in Nerja.
Another interesting example is the project Alcantara, which has been developed through
the Community Initiative Interreg III-A, Spain-Morocco Program. In this project different
activities have been carried out in the tourism general area, being the province of Malaga
and the North of Morocco the regions were the activities took place.
74
d) Environmental technologies sector
General description

Number of companies in this sector and tendencies of development
The environmental sector in Andalucía is made up of 792 companies (data of AESMA,
Association of Environmental Sector Companies of Andalusia) with activities related to
environment. First of all, the most representative area of activity is refuse management.
Within it, most companies carry out recycling activities and recovering of urban waste. It
is remarkable the number of companies dedicated to industrial waste management and
the urban waste consultants.
Secondly, the sectors of environmental consultancy, environmental engineering and
management of the water are also important. Thirdly, in number of companies, the
natural environment and renewable energy should be mentioned.
More than a half of the sector companies are located in the provinces of Seville and
Malaga.
The participation of public and mixed companies in the sector continues being significant,
due to the own nature of many of the activities developed, directly related to the benefit
of public services. However, in the last years, it is shown a greater representation of
private companies in the management of these services supplying integral environmental
solutions. This tendency shows the accumulation of experience and efficiency that the
private sector is acquiring in the management of the environment.
There are many challenges that the industry of environmental goods and services is
facing at present in Andalusia. From its appearance around the Eighties, the exposition
has changed before the rising of new knowledge and technologies and a more and more
demanding law.
In relation to the internationalization of the Andalusian environmental industry, two great
fronts of action are opened: on the one hand, the enlargement of the European Union
and, by another one, the geographic situation of Andalusia between the Mediterranean
Sea and the Atlantic Ocean:

The recent incorporation of fifteen new countries to the European Union allows the
Andalusian environmental industry to performance in different fields for which
these countries are going to receive numerous aids coming from the European
Union, directed to the control of pollution, the treatment and recycling of
remainders or the protection of natural resources.

In addition, the internationalization could be oriented to the countries located in
the Mediterranean river basin and to the American continent.
Also the important challenges of the European Union in relation to the agreement signed
in Kyoto must be considered to reduce the gases produced by the global heating of the
planet.
75

Employees
According to estimations of the Association of Companies of the Environmental Sector
in Andalusia (AESMA), the number of employees in the sector is up to 43,000 people.

Regional value
The sector trend in Andalusia will be increasing its participation in the GDP,
supporting on the following factors:

The irreversible change experimented by the social conscience, both individual
and collective.

The hastened development of environmental technology.

A more strict legislation, originated by the European Union and by the
international agreements signed by it.
SWOT analysis
STRENGTHS

High potential of growth for the
sector.
 Strong dynamism.
 Institutional
and
social
actors
consensus.
OPPORTUNITIES
 Importance of rural spaces in the
region and advance in environment
preservation.

Higher sensitizing and participation
of the society in the environment
preservation.
 Low level of self energy supply in the
region.
 Fast develop of the environmental
technology.
 More
demanding
law
in
environmental matters.
WEAKNESSES
 Limited size of the sector companies.
 Lack of specialisation.
 Internationalization is still hard for most
companies in the sector.
 Limited cooperation among companies of
the sector.
THREATS

Energy model of limited participation of
the renewal energies in the total energy
consumption.
 Excessive pressure on the land.
The most important players and projects in the sector

Most important companies
The main companies of the sector are associates through the Association of
Companies of the Environmental Sector of Andalusia (AESMA).

Institutions integrating and supporting the sector / cooperation in the sector
Both the central administration and the Autonomous, together with private agents,
are making important efforts to promote the sector development. The support comes
76
mainly from the Junta de Andalucia Councils of Innovation, Science and Business,
Agriculture and Fishing and Environment, through institutions like the Andalusian Agency
of Energy or the Public Company of Environmental Management (EGMASA).

Innovative project/product/service application
The Council of Environment, through the Public Company of Environmental
Management (EGMASA), has 21 projects within its Research, Development and
Innovation (I+D+i) program for the year 2006.
The research projects that will promote this public company are related to different areas
of the environment, which include from studies for the prevention of fire to the product
generation from the recycled one.
Among these initiatives of I+D+I, it is remarkable the initiatives destined to the
production of bioplastics from agricultural products, the manufacture of preservatives
and colouring with the reusability of the citruses remainders, and the creation of a
cement with recycled glass that could be used for the asphalt paving of forest roads.
On the other hand, the Seville company Ingeniería Energética y de Contaminación S.A.
(INERCO) develops a technology for the heat generation using as combustible rest of
pruning. This initiative, pioneer in Andalusia, will suppose the development of an
innovating technology that takes advantage of an ecological solid propellant to obtain a
combustible gas. For the company will suppose great saving, since part of the fuel
derived from the petroleum, with which it obtains thermal energy, more expensive and
polluting, will be able to replace. In addition to a great saving, the biomass use supposes
a benefit for environment.

Examples of research and implementation projects realized with universities
An example of projects of research with the universities in the environmental sector is
the project made by a group of research of the University of Cadiz, along with the
Verinsur company, manager of dangerous remainders.
This project tries to fight the not at all beneficial effects of the spills of organic character
that have as final destiny the rivers and seas. When a spill of high laid-down load takes
place, it usually consumes oxygen, which reduces as well to these aquatic natural means.
In this way, the oxygen levels of water diminish and all the biological processes that
occur in her become difficult. The project raises the oxidation processes like a possible
solution to treat the remainders.
The application of this new technology will be able to reduce the costs of treatment of
oily waters, mainly produced by the agro-alimentary industry and perfumery. Companies
like Verinsur are the example of small company without R&D department, that needs a
concrete procedure to treat their concrete problem, and collaborates along with the
University to search for a solution.
Cross-border situation

Situation in neighbouring region in analogous sector
77
Morocco has elaborated about forty projects to finance the instruments of clean
development in the sectors of renewable energies and the treatment of solid wastes,
residual waters and others. Such projects allow Morocco to locate itself in forward lines in
the African continent.
Numerous specific programs of protection of environment were conceived in Tunisia as
“Blue Hand”, “Green Hand” and “Yellow Hand”.
The program “Blue Hand” tends to protect the aquatic coast and resources front to the
inherent risks to the located activities in the coastal regions.
The program “Green Hand” tends to preserve the nature and to promote the green
spaces in the urban zones.
The program “Yellow Hand” is focused in the fight against the advance of the desert.

Cross-border cooperation
Andalusia and Morocco share a geographic location and hydrologic systems
determined by the Mediterranean climate that frequently cause serious periods of
droughts and floods. A seminar was organized in Malaga, in November 2005, to promote
technological and management tools to face the common problems in the water provision
in both borders of the Mediterranean. This seminar, financed by the European Program
Interreg IIIA, was organized by the Junta de Andalucia through the Center of New
Technologies of Water and the International University of Andalusia.
In spite of the importance of civil engineering in prevention matters, experts and
consultants are also studying other natural and environmental measures as it is the
protection of the slopes of the river basins, through reforestation, with the purpose of
mitigating floods and sliding.
This community initiative allowed the construction of the Center of Water Technologies
Transference in Tetuan (Morocco) in its first stage. The cooperation continues through
the attendance in the establishment of systems of residual water purification in towns
located in the north of Morocco.
e) IT sector
General description

Number of companies in this sector and tendencies of development
Andalusia suffers an important gap in the implantation of companies related to
information and communication technologies sector, with regard to other Autonomous
Regions in Spain, which place themselves at the top, like Madrid or Catalonia.
Nevertheless, the sector grows in Andalusia as far as number of companies, employees
and turnover, due to the competitiveness of its companies and to the strength of the
local market. The expectations for the future are of important growth in the sector, as
much in invoicing as in number of employees or quota of market of the companies.
78
The sector is mainly located in the provinces of Seville and Malaga and counts on 600
companies according to a study made by the Entrepreneurs Association of Information
and Communication Technologies of Andalusia (ETICOM) in 2004.

Employees
During the year 2004, the sector experienced in Andalusia a strong growth of
employment, exceeding 12,000 employees according to the ETICOM study.
The greater growth at employment is generated in the companies of medium size,
between 50 and 250 workers.

Regional value
The smaller penetration of the information society in Andalusia is reflected in
indicators as the use of Internet by the population older than 14 years old, although
other indicators like the percentage of companies that make activities of electronic
commerce or the percentage of companies with Website locate Andalusia in a similar
position to the other Spanish regions.
The most important gap of Andalusia takes place in the number of companies and
employees in the sector in relation to the Spanish leading regions.
SWOT analysis
STRENGTHS
 Sector made up of companies with a
high capacity of adaptation to the
environment and a changing market.
 Existence of a changing spirit among
the sector entrepreneurs.
 Higher predisposition to cooperation
with other companies.
 Existence of good telecommunications
infrastructures.
OPPORTUNITIES
 European,
national
and
regional
policies, indicated to incorporate the
information
and
communication
technologies in the companies.
 Initiatives to introduce the citizens in
the Information Society.
 Implementation by the governments of
services based on information and
communication technologies.
WEAKNESSES




High level of public finance dependence.
Lack of business culture in the sector.
Geographical dispersion in the region.
Entrepreneurs have a very technical
profile and not business knowledge.
THREATS


79
Limited study at education level.
Productive task developed by
universities that compete with
companies of the sector.
the
the
The most important players and projects in the sector

Most important companies
The most important companies of the sector are affiliated with the Entrepreneurs
Association of Information and Communication Technologies of Andalusia (ETICOM),
whose aim is the interests’ defence of the sector in the region.

Institutions integrating and supporting the sector / cooperation in the sector
There are different initiatives coming from the following institutions in the sector:

In order to foster the incorporation of the information and communications
technologies in the PYMES, the Ministry of Industry, Tourism and Trade, together
with the financial institutions Banesto and La Caixa, start up the “Technological
Loan that facilitates financing to 0% of interest.

The Regional Council of Innovation, Science and Trade, the Andalusian Council of
Chambers of Commerce and the Upper Council of Chambers of Commerce have
signed a collaboration agreement for the development of Nexopyme Program, an
initiative whose aim is to improve the competitiveness of SMEs, microSMEs and
professionals, through the integration of Information and Communication
Technologies in their business process. The companies will be able to use a series
of basic infrastructures, like online services, computing and communication
equipment, web domain register and a website design, as well as assistance and
maintenance through a promoters network.

The Regional Government Council has agreed to begin an Information Society
Development Plan in Andalusia 2006-2010. The carrying out process will count
with the participation of different administrations and economic and social agents.
The Regional Council of Innovation, Science and Trade will elaborate an initial
proposal which will be completed with the other departments of the Andalusian
Government contributions. This document will include measures indicated to
guarantee the accessibility and disposal of infrastructures and information and
communication technologies (TIC) in the whole Andalusian region.
The plan will be organised in four main axes. The second one will be Empresa
Digital, which will include measures to stimulate the incorporation of information
and communication technologies in the manufacturing tissue, especially in the
SMEs, as well as fostering the competitiveness of the Andalusian TIC sector in the
global markets. In this matter, it is remarkable the aim that the 99 percent of the
Andalusian companies had Internet connection in 2010, facing the 85,5 percent
nowadays.

Innovative project/product/service application
With the aim of promoting the development of the Information and Communication
Technologies in Andalusia, the Regional Council of Innovation, Science and Trade has
signed collaboration agreements with different companies of the sector, creating projects
indicated to the development of information and communication technologies in
Andalusian companies. These projects are:
80


Mercurio Program, to extend the use of wide-band Internet to the most isolated
towns in Andalusia.

Hercules Project, to create a platform of research and development of the new
UMTS mobile telephone system.

MetroLan, for the development of an ethernet wide-band (local network), with a
speed from 10 Mbps. to 10 Gbps., in the eight Andalusian capitals, Jerez de la
Frontera and Algeciras.
Examples of research and implementation projects carried out with universities
ISIS project: Intelligent System of Integrated Access to Patient Clinical Record and
Medical Related Documents (Sistema Inteligente de Acceso Integrado a la Información
del Historial Clínico del Paciente y Documentación Médica Relacionada) is a Ministry of
Industry, Turism and Trade project, in which the University of Huelva, the European
University of Madrid, Fuenlabrada Hospital and Bitext company collaborate.
Its main objective is to integrate various techniques of access to text and data
information, allowing doctors and patients to access easily to clinical records and relevant
information coming from scientific or press releases.
Cross-border situation

Situation in neighbouring region in analogous sector
The telecommunication sector has experimented a very important growth in recent
years in Morocco due to the process of liberalisation of the sector initiated by the
Government, which has stimulated a remarkable increase in the number of internet
users. Moreover, Morocco has one of the largest telecommunications network in Africa,
due to its infrastructure and quality of service. This network has experimented a strong
growth during the last years, due mainly to the implementation of new techniques of
telecommunication. In spite of this positive evolution, the Information Technologies
sector development in Morocco does not reach the levels of technological development of
the European countries because it does not have the necessary infrastructures yet to
reach those countries level.
The Tunisia Government knows the important role communication technologies have in
the economic development of Tunisia. In fact, the strategy of the Government is to
hasten the sector development with the aim to respond the growing needs of diversified
and quality services.
The Tunisia Government has also deployed several measures to stimulate private
iniciatives of investments in communication technologies. This effort is shown, for
instance, in the creation of a communication technology park.

Cross-border cooperation
81
CDTEC project, through the Community Initiative Interreg III-A, intends to stimulate
the technological development cooperation between the North of Morocco and the
province of Malaga, as well as contributing to the diffusion of the Information Society.
The province of Malaga manufacturing tissue is mainly composed of SMEs with a low
technology development. Nevertheless, the increasing technology R&D activity, promoted
from the Technological Park of Andalusia (PTA), plays a key role for the business
development and the technology transfer in this region. So, the PTA participation as a
project partner is going to help the cross-border cooperation because of its experience in
the technological area.
To hasten the technological development in Morocco and the promotion for the use of the
NTIC, both in companies and homes, the project develops activities to allow a high level
of experiences exchange in the technological area. This will be posible mainly due to:

The creation of a Technological Cross-border Cooperation Office in the PTA that
will actively collaborate with the Moroccan project partners.

The organisation of visits of Moroccan entrepreneurs to companies and projects in
Malaga and viceversa.

The participation of Moroccan students in courses that stimulate the technological
development.

The development of techno-practices by Moroccan students and/or professionals
in companies of the PTA.
f) Mechanical engineering sector
General description

Number of companies in this sector and tendencies of development
In Andalusia, aerospace, armament and car industries are the most important within
this sector.
The Andalusian aerospace industry is one of the most important in Europe, together with
Toulouse (France) and Hamburg (Germany), thanks to the participation in important
projects like the assembly and final delivery of the A400M transport aircraft for military
use, or the manufacturing of key parts for the A380, the bigger aircraft ever built.
These projects have consolidated Andalusia as the second focus of the Spanish aerospace
industry, a position which will be held with the new projects of the new A350 passengers
aircraft.
The number of aerospace companies is growing. So, this is a dynamic sector where new
companies are being created, university spin off and new foreign companies that create
subsidiary companies or buy other existing firms. This way, Andalusia has more than 92
specialised firms in the aerospace industry at present.
The Aerospace Development Plan designed by the Regional Council of Innovation,
Science and Business, deals with a series of activities designed for the final stimulation of
82
the sector. Some of these activities are dedicated to search for new aerospace projects to
be developed in Andalusia.
There is even more growth potential in the contracting of Andalusian companies for
engineering, designing and tools manufacturing works.

Employees
In the aerospace industry, Andalusia is the second Autonomous Region in Spain
regarding to job creation. Particularly, during the last tour years, the jobs created by the
Andalusian aerospace industry has increased around a 20 percent, up to 4,500 jobs.
More than a half of these employees work in small companies; nevertheless, there is a
circumstance that engineering companies used to have a small but very qualified staff,
with a predominance of engineering graduates.
Among the higher levels, the most representative qualification is Upper Engineer.
Aerospace Engineering studies appeared in the University of Seville for first time in 2002.
Although employment has increased in all categories, the group of qualified workers is
the one which has grown faster.

Regional value
During the last years, strong investments have been carried out in order to
modernise the sector, result of the good expectative for Andalusia.
The recent increase in the number of companies specialised in mechanical engineering
activities have been a consequences by the arriving of aerospace projects.
Most companies in this sector work as subcontracting companies, due to the fact that the
business tissue is mainly made up of auxiliary companies of small size.
Companies usually look first for regional market while they need to subcontract. This
creates a positive effect on the sector, avoiding loses of value out of the region.
SWOT analysis
STRENGTHS



Dynamic sector.
Important encouraging strength.
Andalusian high qualified techniques and
workers.
 Huge tradition in the sector.
OPPORTUNITIES
 Increasing demand: A380 and A400M
projects for the aerospace industry and
new projects for the new passenger
aircraft A350.
 Important incentives granted by the
public administrations.
83
WEAKNESSES
 Necessity of administration measures
to
increase
cooperation
among
companies in the sector.
 Necessity of reducing environmental
impact.
 Very cyclical sector.
 High investments requirements and a
long period of expense recovery in R&D.
THREATS

Competitiveness threat of the
international suppliers.
 Financial difficulties and lack of
qualified personnel.

Important potential of the Andalusian
young people: the first promotion of
aerospace engineering left the University
of Seville in the academic year 2005/06.
The most important players and projects in the sector

Most important companies
Aerospace industry stands out within the sector, specially in Seville, where is leaded
by the firm EADS-CASA, counting more than twenty auxiliary industries in the provinces
of Seville and Cadiz.
The Aeropolis technological park is strategically located next to the San Pablo airport in
Seville and the new EADS-CASA factory, with the aim of promoting the Andalusian
aerospace sector joining its auxiliary industry in a small space with the last technologies.
The creation of the park is one of the Junta de Andalucía objectives to promote the
aerospace auxiliary industry, stimulating with this aim the promotion of appropriated
industrial ground for the installation of this type of companies.
Aeropolis has 580.000 square meters of total surface; 344,376 of them are suitable for
building.

Institutions integrating and supporting the sector / cooperation in the sector
All the Aeropolis Park assets have been transferred to the Junta de Andalucía
Regional Council of Innovation, Science and Development, through the Innovation and
Development Agency of Andalusia, which is the only share holder in the society
Technological and Aerospace Park of Andalusia (Parque Tecnológico y Aeronáutico de
Andalucía).

Innovative project/product/service application
The different lines of research that may be developed in the sector have several
applications like, for instance, the following ones:


Mechanical design and construction of mobile robots.

Improvement of car security.

Optimization of the calibration process of industrial measure equipments.
Examples of research and implementation projects realized with universities
INMA is a research group of the University of Malaga in the sector of mechanical
engineering, which has developed different R&D projects in collaboration with companies
of the sector. The following are examples of this cooperation:

Design of an automatic device for soldering of photovoltaic cells terminals, in
collaboration ISOFOTON S.A.

Monitoring of a car braking system for the company IVESUR S.A.

Design of an automatic weighing device in collaboration with E. MORENO S.A.
84

Research on the muffling influence of cars at braking efficiency, together with
IVESUR S.A.
Cross-border situation

Situation in neighbouring region in analogous sector
The Moroccan aerospace industry carried out exports up to a value of 264 millions
dirhams in 2005, and it received investments for 500 millions. There are two main
companies that dominate the Moroccan market, Snecma and EADS, and they strongly
represented in maintanance and manufacturing. They are followed in importance by the
engineering, the assemblies, the composites and electronic parts, the precission
mechanics or even the metal traitments companies.
The car auxiliary industry has experimented in Morocco a strong expansion in recent
years in areas like Casablanca and Tanger.
These two areas show important advantages due to the taxes cut for foreign investments
and, of course, lower labour costs than European countries.
Italian companies like OMR Morocco and NRF Morocco, French like Intertonic and
Japanese like Sews Cabind, have installed in Casablanca. The American Delphi and Poli
Design, together with the Japanese Yazaki are already established in Tanger. All of the
produce parts for their groups in Europe.
Likewise, during the last years, the car parts industry in Tunisia has experimented a
dynamic increase supported by specific commercial measures introduced while the local
assembly of cars was suspended.

Cross-border cooperation
In spite of being in an initial situation of development, the aerospace sector in
Morocco presents important advantages for european customers: cultural and
geographical proximity, disponibility of workforce or engineers coming from Europe... In
this favourable context, the Federation of Metalurgical, Mechanical, Electrical and
Electronics Industries (FIMME) of Marocco, was in charge of a sectorial research, in
collaboration with the Supporting Program to Professional Associations (PAAP), whose
results indicate that industrial aerospace subcontracting gives employment to 1,900
people and it has a turnover around 600 millions dirhams. This quantity may be
considered not enough while there is still a great potential for this country.
VII.
85
North Karelia (Finland)
a) Introduction
The predominantly agricultural and forestry-based economy of North Karelia went
through dramatic restructuring in the 1960s and 1970s in particular, and the region
suffered a considerable drain of population to the urban centres in the south of the
country and across the Gulf of Bothnia in Sweden. Despite growing industrialization and
the development of the service sector, North Karelia was in the 1990s still one of the
poorest parts of the country. During the past few years, North Karelia has experienced a
period of very positive economic development. Parallel to this, an extremely fast
structural change from an agricultural society towards a modern information based
society has taken place.
The Republic of Karelia
North Karelia
http://pk-kartat.jns.fi/map.php
The strength of North Karelia`s industrial sector derives from three diverse directions:
forestry, plastics and metals, and stone industries.
The plastics and metal industry is the most important growth sector in North Karelia. This
sector’s increased demand for employees and premises has been stronger in North
Karelia than in other parts of Finland. Training and education and centre of expertise
programme have strongly supported the growth of this sector’s enterprises.
North Karelia has a traditional stone sector, which along with new forms of production
and research have been developed into successful business activities. North Karelian
produced ovens and fireplaces, and the region’s soap stone in general, are world famous.
b) Agro-business sector
86
General description
The leading position in this sector takes a wood and forestry activity as one of the
main activity when measured by employment and regional income.
North Karelia lives off the forest. This sector is the most important provider of export
income in the region. A rich combination of forest resources, forest industries and
forestry know-how in the region has led to the unofficial recognition that North Karelia is
the "Region of Forests in Europe". The fact that The European Forest Institute, the
Research Centre of the Finnish Forest Research Institute and the high-tech workshop of
wood product technology, Puugia, are located in Joensuu, the region’s capital, attests to
this unofficial recognition.
Forest resources: 80 % of the total area in North Karelia is forest land and the forests
have good growing potentials. The average annual growth of forests is around 5 million
m3 but during the past decades the annual fellings have varied between 3.2 and 4.8
million m3. The extensive forest resources in North Karelia do not only cover the above
indicated timber resources, but also the non-wood resources: hunting, fishing, picking
berries and mushrooms, landscape values and possibilities for outdoor activities, forestbased tourism and recreation.
North Karelia
Forest area
1.42 mill. hectares
Exploitable forest area of total
area
Forest area per capita
80.1 %
8.80
hectares/inhabitant
Finland
19.5 mill. hectares
64 %
4.68
hectares/inhabitant
Share of forestry land
forest land
78.7 %
65.8 %
scrub land
4.8 %
9.8 %
waste land
3.4 %
10.3 %
roads, depots, etc.
0.8 %
0.5 %
Growing stock
146.8 mill m3
1886.6 mill m3
per hectare
98 m3/hectare
91.9 m3/hectare
Tree species by growing stock volumes
pine
50.0
45.8
spruce
33.2
36.6
birch
13.6
14.6
other broadleaves
3.1
3.1
Source: Statistical Yearbook of Forestry, 1996
Forest ownership: When comparing the forest ownership structure, the share of forests
owned by companies in North Karelia is higher than the countrywide average
87
(7.7%) Respectively, the share of state forests is higher in countrywide
comparison (33.4%)
Employment and income from forest sector: For generations the forest resources of
North Karelia have provided job opportunities both in forestry and forest-based
industries. Today a total of 6000 people earn their living directly from forestry or
forest industries.
Characteristic for the forest industry in the region are the large-scale industries, such as
the pulpmill, sawmills and paperboard mill of the Enso Ltd., the plywood factory of the
UPM-Kymmene Ltd., and the sawmills of the Vapo Timber Ltd. In addition to the largescale sector, there are over 300 small and medium-sized forest enterprises employing
over 1000 people.
The employment effect of forest sector extends not only to direct forestry or forest
industries, but also to work opportunities in transportation, services for forest industries
and in the related sectors, such as metal and engineering industries manufacturing forest
machines and machinery.
Ten largest forest companies in North
Karelia
Total employees
1841
Turnover
0.6 billion Euro
5.8 mill. m3
Wood consumption
Source: Statistical Yearbook of Forestry, 1996.

Number of companies in this sector and tendencies of development
Forest sector SMEs in North Karelia (1995)
Sawing, planing, dressing
141 firms
Wood construction
55 firms
Carpentry
97 firms
Other wood products
44 firms
Total
337 firms
1072 employees
Forest sector exports from North Karelia
1994
0.295 billion Euro
88
of total exports
61.3%
1995
0.352 billion Euro
60.5 %
1996
0.322 billion Euro
56.6 %
Sources: FORWARD project, 1996; Puu-Suomi project, 1995 and the Foresign Trade Associan, Regional
Office in Joensuu.

Regional value
The forest sector represents app. 60 % of export income for the region - a high share
compared with the app. 40 % level in the national figures. Main markets for the North
Karelian products are in the EU, but products are also sold to Russia, USA, and for
example, to Japan.
SWOT analysis
STRENGTHS
 Forest resources.
 Know-How
(research,
machinery,
education).
 Importance for region.
OPPORTUNITIES
 Potential for the future development.
 Cooperation with Republic of Karelia.
 Production facilities to Russia.
 Forest in tourism
WEAKNESSES



Importance for region.
Import from Russia.
High hourly rate for domestic workers.
THREATS


Import from Russia.
High level of exporting.
The most important players and projects in the sector

Most important companies
North Karelia’s wood industry uses around 5 million m3 of timber annually. There is
large scale international sawn wood production of pine, spruce and birch, whose output is
around 1.2 million m3 within a 100 km radius of Joensuu.
The Joensuu Region produces sawn timber and panels, as well as other further processed
products such as planed and finger jointed wood products, veneers, parquet, doors,
windows, building components, glued boards, furniture, public building furnishings and
heat treated products.
The Region’s locally based metal, plastic and electronic companies, support and serve a
strong wood product industry.
The Region’s wood product company growth potential is supported by e.g. the State’s
Centre for Wood Technology programme as well as research and educational institutions.
New wood technologies and development processes are supported by e.g. computer
simulation, robot technology, NC- technology, machine vision and product design.
89
Examples of innovative wood products are heat treated wood, wood fiber composites and
joining technology of large scale wood structures.
Sawmills: Stora Enso Timber Ltd (Kitee and Uimaharju), Finnforest Plc/ Kiihtelysvaara
Ltd,Kaivospuu Ltd (Pyhäselkä), Ukkola Ltd (Eno), Vapo Timber Ltd (Lieksa and Nurmes).
Parquetmill: Karelia Parketti Ltd (Tuupovaara). Plywoodmill: UPM-Kymmene/Schauman
Wood Ltd (Joensuu). Heat treated wood: Finnforest Plc/Ikipuu Ltd (Pyhäselkä). Office and
home furnitures: Martela Ltd (Kitee), Havukainen Ltd (Kitee), Joensuun Puukaluste Ltd
(Pyhäselkä), Kontiopuu Ltd (Kontiolahti). Glued birch boards: Appowood Ltd (Pyhäselkä),
Carelia SER-Wood Ltd (Rääkkylä). Planingmills: Liperin Höyläämö Pts , Enon Höyläämö
Pts. Door factory: Finnfutter Ltd (Polvijärvi). Window factories: Karelian-Ikkuna Ltd
(Joensuu), Kamppuri Ltd (Rääkkylä). Pulpmill: StoraEnso/Enocell Ltd (Eno). Others:
John Deere Ltd, the world’s largest manufacturer of forest harvesting equipment.

Institutions integrating and supporting the sector / cooperation in the sector
Forestry Centre of North Karelia. Forest management is the Centre’s most
important activity. The Center also advises on the benefits of sustainable forest resourses
and harvesting methods. www.metsakeskus.fi/pk
Joensuu Science Park. Business development services are a major part of the Joensuu
Science Park. The Business and Innovation Centre BIC Carelia and the IDEKA Business
Incubator Service are also located in the Park. www.carelian.fi
European Forest Institute (EFI) is an international forest research organisation with
over 140 member organisations from 36 countries. It's mission is to promote, conduct
and co-operate in research of forestry and forest products at the Pan-European level;
and to make all results of the research known to all interested parties, in order to
promote the conservation and sustainable management of forests in Europe. www.efi.fi
Finnish Forest Research Institute (Metla). The research centre is a multi-disciplinary
expert organisation responsible for promoting, through research, regional economic and
enterprise activities based on especially forests and forest products in Eastern Finland.
There are at the moment around 45 researchers and 60 other personnel in the Centre.
www.metla.fi
Centre for Wood Technology (PUUGIA). This is a high-level wood research and
development service centre. Its core activities are: wood product development, wood
composites, modern timber construction, company research projects as well as
technology know-how, transfer and exchange. www.puugia.fi
Internet links: Employment and Economic Development Centre for North Karelia
www.te-keskus.fi/pohjois-karjala, Invest in Finland
www.investinfinland.fi,
Joensuu Regional Development Company Ltd www.josek.fi, North Karelia Educational
Federation of Municipalities www.pkky.fi, North Karelia University of Applied Sciences
www.ncp.fi, Regional Council of North Karelia www.pohjois-karjala.fi , University of
Joensuu, Faculty of Forestry www.joensuu.fi .

Innovative project/product/service application
90
The EUBIONET II - European bioenergy network will analyse current and future
biomass fuel market trends and biomass fuel prices. http://www.eubionet.net/
Baltic Biomass Network. The Baltic region with its agricultural and forest resources has
great potential for implementing the EU objectives for biomass heat, power, and fuel
production and use. Integrating new biomass processing schemes for bio-energy
applications into areas with poorly developed biomass logistic infrastructures or with
competing biomass processing and land-use structures raises complex spatial planning
issues. http://www.bsrinterreg.net

Examples of research and implementation projects realized with universities
NKUAS’s (www.ncp.fi) degree program in forestry participates in various
international projects.
5EURES project will bring together the best experts in forestry and bioenergy from
Barnim (Germany), Catalonia (Spain), East-Lithuania, Jyvaskyla and Joensuu regions
(Finland) and Marvão (Portugal) to work together at a project consortium to set up
practical demonstrations of bioenergy heat plants in these five regions.
http://www.5eures.eu.com/
A Northern Periphery Programme funded project managed by Highland Birchwoods with
partners in Scotland, Iceland and Finland. Northern WoodHeat aims to set up small and
medium scale woodfuel supply chains optimising benefits to local communities.
http://www.northernwoodheat.net/
Cross border situation

Situation in neighbouring region in analogous sector
Total area of the the state wood fund land makes 14,8 million hectares, the general
stock of trees is 943,02 million cubic meters, of which 424,20 million cubic meters of
mature and overmature forest, including 375,09 million cubic meters of coniferous forest.
Middle age of trees of coniferous breeds makes 70 years, and 43 years regarding
deciduous breeds.
Timber industry complex defines the general state of economy of the republic in many
respects, as its share in the volume of industrial output makes 40.9%. More than one
half of those who work in the industrial sphere work in the timber industry complex
enterprises.
Most important companies: Pitkaranta Pulp Mill, Inc., Kondopoga, Inc., Segezhsky Pulp
and Paper Mill, Inc., Zapkarelles Close corporation, Segezhsky Saw-Woodworking Mill,
Inc., of Ilyinsky Saw-Mill, Inc., Kemsky Saw-Woodworking Mill, Ltd., Medvezhiegorsky
Timber Industry Enterprise, Ltd., Muezersky Timber Industry Enterprise, Inc.,
Swedwood-Karelia, Inc., Letnerechensky Saw-Woodworking Mill, Ltd., Segezhsky Pulp
and Paper Mill, Inc.,
On results of 2004 all three branches of Timber Industry Complex have increased
volumes of manufacture in comparison with 2003: the index of physical volume as a
whole in Timber Industry Complex (on a full circle of enterprises) has made 110.3% to
2003, produced commodity output cost has made 21 billion rbls. (120%).
91
In logging Industry volume of tree hauling in 2004 (on a full circle of enterprises) has
made 6,7 million cubic meters (110.4% to the level of 2003), the index of physical
volume is 110.8%, produced commodity output cost has made 5,5 billion rbls. (139.3%).
In 2004 by the enterprises of woodworking industry produced commodity output to the
sum 3027 million rbls. (103.4% to the level of 2003). Growth of volumes is provided due
to 2.5% increase in volumes of manufacture of saw-timbers, and 20.4% growth in
manufacture of wood-shaving plates.
During 2004 enterprise pulp and paper industry have improved their work. Commodity
output has increased up to 12 454 million rbls. (17.5%), the index of physical volume
has made 111.9%. Manufacture of paper has increased 13.6%, and on commodity
cellulose manufacture has grown 11.1% having made 862,4 thousand tons and 89,8
thousand tons accordingly.
Sources: http://www.gov.karelia.ru/Info/2004/eco_man_wood04_e.html

Cross-border cooperation
Export share of timber and wooden goods is about 30% from the total amount of
export. The harvesting company OAO Ladenso, a subsidiary of Stora Enso a good
example of cooperation.
Forest
Research
Institute
http://www.krc.karelia.ru/structure/fri/index.en.html
(Petrozavodsk). It is currently comprised of 6 laboratories, 2 research stations and 4 field
laboratories.
Petrozavodsk State University (PetrSU)
http://petrsu.karelia.ru/Structure/structure_e.html
c) Tourism sector
General description
North Karelia is a region shaped by lakes and its own distinctive culture. Joensuu
area is centre for trade, culture, education and technology. The orchestra, theatre and
art museum are among the many town institutions catering to visitors seeking cultural
experiences. The Kontiolahti Biathlon Centre is one of the most technologically
advanced in the world. In Kontioniemi the golfers will find a championship class full-size
18-hole golf course.
Two Orthodox monasteries, unique in the Nordic countries, are situated in Heinävesi. The
Valamo Manastery and the Lintula Convent are living centres of the orthodox faith and
culture and they heartily welcome all visitors.
Ilomantsi can offer you listen to the enchanting sounds of kantele at the Rune Singer's
House in Parppeinvaara, or let the silence surround you in our beautiful churches. Travel
back through out nation's military history at the "Heroes House", or discover the historic
art from iron making at the Möhkö Ironworks.
92
Easternmost point of the European Union on Lake Virmajärvi and experience the
proximity of the Russian border. Outdoor activities: Karelian nature in the Petkeljärvi
National Park and along the hiking paths of the Karelian Circuit, or canoe along the
twisting River Koitajoki through ancient forests. Local specialities: Karelian, Vatruska and
Sultsina pastries, berry wines and liquers.
Lake Pielinen region is a place to enjoy culinary and visual delights and find real country
life on farms and in holiday cabins. The lakes, which abound with fish, guarantee good
catches throughout the year. The Bomba House, the Ruunaa rapids, and the modern
Stone Pole.
The Koli Hills have been a popular tourist attraction since the turn of the century. Rising
347 metres above the sea level they are the highest hill range in southern Finland. The
Koli Hills provide excellent tourist services and great opportunities for a variety of
captivating outdoor activities. In winter Koli is a popular downhill and cross-country
skiing resort.
Central Karelia is home to delightful little museums and handikraft shops. Kitee town is
also famous for its "moonshine" and for its Finnish baseball enthusiasm.
Accommodation statistics cover all hotels and guest houses, holiday villages and camping
sites with at least ten rooms / cottages / caravan pitches and all youth hostels.
Accommodation establishments by region, (2003–2005)
Region
Total
Rooms
Beds
Nights spent
1.1.2004 1.1.2005 1.1.2004 1.1.2005 1.1.2004 1.1.2005
2003
2004
All
North Karelia
71
70
2 002
1 920
5 158
4 902
1 409
1 394
60 863
60 350
144 375
142 903
North Karelia
37
36
1 524
1 452
3 587
3 365
Whole country
762
755
49 966
49 675
106 403
Camping sites
Similar
establishments
294
289
4 237
4 065
198
187
3 904
44
47
729
111
116
2 027
Whole country
456 711
16 508
254
454 849
16 626
590
105 518
325 523
12 982
683
337 138
13 251
289
16 882
16 215
2 247
266
2 095
352
3 660
10 198
9 684
607 058
539 155
812
1 996
2 200
118 983
131 775
2 138
8 896
9 286
552 264
609 019
Hotels
Youth hostels
Holiday villages
Source: Business Trends: Transport and Tourism

Number of companies in this sector and tendencies of development
Accommodation services
Food services
93
266
231
Organizing services
Transport services
Tourist offices
Total
Sources: Raivo 2005

104
95
46
742
Employees
About 1,500 full time workers and 500 part time workers (Sources: Raivo 2005).

Regional value
SWOT analysis
STRENGTHS
 Developmental activities.
 Importance for region.
 All year around (for seasons).
 Location (nature and silence)
WEAKNESSES
OPPORTUNITIES
THREATS



Potential for the future development.
Cooperation with Republic of Karelia.
Infrastructure.





Infrastructure (micro size enterprises).
Marketing.
Location (distance).
Economic depression.
Oil price.
The most important players and projects in the sector

Most important companies
Karelia Expert Tourist Service Ltd is a full-service tourist bureau and a
professional management company. Itä-Suomen Matkatoimisto Oy, Outokummun
Matkailu Oy, Matkakarjala Oy, Matkatoimisto Matka-Vekka Oy, Pohjolan Matkatoimisto
Oy. Hotel Atrium Oy, Hotel Karelia.
Sokos Hotels is the biggest hotel chain in Finland, 38 hotels in 26 cities all around the
country. In addition to accommodation Sokos Hotels offer a wide range of restaurant
services. There are app. 6400 rooms all together and staff approximately 3200 persons.
The turnover including restaurant sales was 236,7 million euros in the year 2005. In
Joensuu Sokos Hotel Kimmel, Hotel Vaakuna Molly's, Koli Hotel.

Institutions integrating and supporting the sector / cooperation in the sector
Karelia Expert Tourist Service Ltd is a full-service tourist bureau and a professional
management company.
Josek Oy: Joensuu Regional Development Company, is to strengthen and diversify the
regional business structure, to enhance the competitiveness of the region and to improve
the operating conditions of businesses in the increasingly international environment by
consolidating co-operation.
94
North Karelia University of Applied Science, Degree
http://www.ncp.fi/koulutusohjelmat/matkailu/

Programme
in
Tourism
Innovative project/product/service application
Ecotourism is considered the fastest growing market in the tourism industry. Ecotourism focuses on local cultures, wilderness adventures, volunteering and personal
growth. It is typically defined as travel to destinations where the flora, fauna, and
cultural heritage are the primary attractions. Responsible ecotourism includes programs
that minimize the adverse effects of traditional tourism on the natural environment, and
enhance the cultural integrity of local people. Therefore, in addition to evaluating
environmental and cultural factors, initiatives by hospitality providers to promote
recycling, energy efficiency, water re-use, and the creation of economic opportunities for
local communities are an integral part of ecotourism. In North Karelia operate plenty of
micro size companies, that provides eco-touristm services.

Examples of research and implementation projects realized with universities
The Savonlinna Institute for Regional Development and Research has launched a
project which focuses on the development of tourism between Finland and Russia. This
project, called the Forum Tourism in Russia, creates common framework to the
development and cooperation of local area tourism in Russia. The FTR supports business
and development of tourism collaboration. Collaborative meetings and projects
strengthen the know-how of tourism business on the both sides of the border. The tools
of the project are research, use of experts, information service and the heightening of
information change.
The General aims of the TravelGate Finland project are: implementation of an XML
interface library for the exchange of tourism content and services, construction of the
conceptual framework and concept libraries containing definitions, On the basis of
definitions, the construction of translation tables for tourism and leisure content, and
development of the business model for commercial exploitation of the project results in
distributed information systems within Finland and abroad. The Savonlinna Institute for
Regional Development and Research.
Flexible lifestyles and rural-urban interaction project Flexible lifestyles are examined from
the perspective of individuals in one hand and society on the other. The following subthemes are approached: (1) Flexible welfare services, (2) Second housing and mobility
and (3) Rural and urban in the place representations of Finnish towns. The fourth subtheme Policy and potentiality is a synthesis of three previous sub-themes. Since urbanrural interaction is a complex institutional ensemble rather than a unitary political
process, is the purpose of the fourth sub-theme to conceptualise urban-rural interaction
both methodologically and practically. The Savonlinna Institute for Regional Development
and Research.
Cross-border situation

Situation in neighbouring region in analogous sector
95
Tourism is an important component of inter-regional cooperation. Since December of
2003 Karelia actively participates in work of the Moscow Agreement within which
implementation opportunities of the republic in advertising, publishing and exhibition
promotion of its tourist potential and attraction of investments extend essentially.
In the territory of the republic, in particular in places where the basic tourist potential is
concentrated, hotel construction was developed, more than 350 new places for
accommodation of tourists has been put into operation. The priority was given to putting
into operation of small country hotels and cottage complexes.
Largest investment projects: "Black Stones" hotel-tourist complex on Janisjarvi lake,
continuation of the tourist complex "Karelia" and "Kivatch" sanatorium reconstruction,
beginning of works on creation of thematic park "Karelia".
In 2004 leading tourist companies and services has been presented at the following
exhibitions: INWETEX (St.-Petersburg), WTM (London), MATKA (Helsinki), ITB (Berlin),
MITT (Moscow), MITF (Moscow).
On the estimated data total number of visitors in the republic in 2004 has made 1,55
million people (105.4% to the level of 2003).

Cross-border cooperation
In 2004 implementation of the republican target program Development of Tourism in
the Republic of Karelia in 2003-2006 aimed at preservation and rational use of cultural
and natural potential of Karelia and increase of contribution of tourism in the economy
proceeded. Successful development of tourism in Karelia is based on construction of new
and reconstruction of existing objects of tourism infrastructure, attraction of investments,
first of all, private, for these purposes.
International cooperation in the sphere of tourism developed, special attention was paid
to start of a network of the small projects aimed at becoming of the branch in districts of
the republic. At active participation of the Government of the Republic of Karelia 10
international projects related to development of tourism in Kalevala, Medvezhyegorsk,
Muezersky, Olonets, Pitkäranta, Pudozh, Suojarvi districts and Petrozavodsk with the
total budget of €2320 thousand have been implemented. The TACIS SBS-Project
"Development of Tourism in the Northwest of Russia" has been launched.
In North Karelia small and micro size companies working in collaboration with Russian
tourism service providers and organise different type of travel packages for domestic
consumers.
d) Environmental technologies sector
General description
96
Worldwide, environmental technology is one of the most expanding fields of industry
and business. It can be defined as follows: environmental technology stands for
improvement of the stage of the environment and environmental protection,
maintenance of the desired stage, and environmental follow-up with the help of all
technical methods available. Some of the vastly growing fields of environmental
technology include water technology, noise control, ecological energy production, waste
management and recycling, for example. Pure water supply and waste water treatment
are of worldwide importance.

Number of companies in this sector and tendencies of development
Not available information. Projects to clarified situation under planning stage.

Employees
Not available information. Projects to clarified situation under planning stage.

Regional value
Not available information. Projects to clarified situation under planning stage.
SWOT analysis
STRENGTHS
 Know-How.
 Public funding.
 Close cooperation between companies
and research organizations.
OPPORTUNITIES
 Potential for the future development.

Cooperation with Republic of Karelia.
 Export of knowledge.
WEAKNESSES



Location.
Small amount of small companies.
Small market area.
THREATS

Increasing competition.
The most important players and projects in the sector

Most important companies
The EUBIONET II - European bioenergy network will analyse current and future
biomass fuel market trends and biomass fuel prices. http://www.eubionet.net/
Baltic Biomass Network. The Baltic region with its agricultural and forest resources has
great potential for implementing the EU objectives for biomass heat, power, and fuel
production and use. Integrating new biomass processing schemes for bio-energy
applications into areas with poorly developed biomass logistic infrastructures or with
competing biomass processing and land-use structures raises complex spatial planning
issues. http://www.bsrinterreg.net
5EURES project will bring together the best experts in forestry and bioenergy.
http://www.5eures.eu.com/
97
North Karelia University of Applied Since, Degree Programme in Environmental
Technology. http://ymparisto.ncp.fi/
Oy FEG Ltd. is a consulting company providing expertise in the field of forestry,
environment and bioenergy, its areas of operation being North-West Russia, countries in
transition in eastern Europe and Finland.
The third generation natural fiber composites manufactured by Kareline Oy Ltd combine
in a new and innovative way excellent properties of natural fibers and plastics.

Institutions integrating and supporting the sector / cooperation in the sector
Centre for Wood Technology (PUUGIA) This is a high-level wood research and
development service centre. Its core activities are: wood product development, wood
composites, modern timber construction, company research projects as well as
technology know-how, transfer and exchange. www.puugia.fi
Degree Programme in Environmental Technology http://ymparisto.ncp.fi/. The
objective of the Degree Programme in Environmental Technology is to train professional
experts in planning, training, instructing and research of environmental protection and
care.
North Karelia Regional Environment Centre promotes biodiversity, sustainable use of
natural resources and good living environment in co-operation with citizens and interest
groups. http://www.ymparisto.fi/default.asp?contentid=113677&lan=en

Innovative project/product/service application
LIFE-Nature project is a financial instrument contributing to the implementation of
conservation projects in Natura 2000 network. The aim of Natura 2000 network is to
preserve biodiversity within EU. Based on EU's Birds and Habitats Directive the Ministry
of the Environment prepared the Finnish proposal of the areas to be included in the
network. The European Commission selects LIFE-Nature projects for the funding.
Pilot project of the innovative actions in the region of Eastern Finland
http://www.innovatiivisettoimet.fi/en/isit/index.htm
GEO Information Centre: The project will create an innovation environment, GEO
Information Centre, to be located in the Finnish Stone Centre. It will combine information
society expertise, stone sector know-how and exchange of experiences based on
research into a regional innovation structure. The project will contribute to the creation of
a modern learning environment based on natural resource based economy, including also
expertise, research and product development services of the stone sector as well as an
information system concerning geological by-product materials of the natural stone
industry. The learning environment will in an innovative way bring forward the culture of
utilisation of stone and the stone industry as well as new opportunities relating to the
development of the stone sector in the regional economy.

Examples of research and implementation projects realized with universities
Pilot project of the innovative actions in the region of Eastern Finland
http://www.innovatiivisettoimet.fi/en/isit/index.htm
98
Network service for forest owners: The project will create an independent forest resource
and planning service in the Internet for forest owners in eastern Finland. The project will
combine the know-how and skills of forest resource and forest management experts in an
innovative way by creating co-operation between the Faculty of Forestry of the University
of Joensuu, the Finnish Forest Research Institute, forest owners, forestry centres and
enterprises offering geographic information services. The main objective is to increase
and maintain forest owners’ economic activity by innovative means. Thanks to the new
technology, distances between service providers, forest owners and forests do not cause
problems in the production of high quality services.
Cross-border situation

Situation in neighbouring region in analogous sector
Not available information. Projects to clarified situation under planning stage.

Cross-border cooperation
Comparison and intercalibration of some chemical methods in autumn 2003 as a
part of the Tacis project Management of aquatic resources of Lake Ladoga and its
catchment (MAQREL). The North Karelia Regional Environment Centre carried out the
proficiency test for analyses of iron, manganese, total phosphorus, copper and nickel.
Four synthetic water samples, three surface water samples and six spiked surface water
samples were distributed to the Finnish environment laboratory in Joensuu and two
Russian research institutes, the Northern Water Problems Institute of Karelian Research
Center, Russian Academy of Sciences in Petrozavodsk and the Institute of Limnology of
Russian Academy of Sciences in St. Petersburg. The nickel and total phosphorus results
obtained were acceptable. Some random differences were detected for copper, iron and
manganese. It should be noted that the number of participating laboratories was rather
small and in the case of iron and manganese different methods of analysis were applied.
The plan of water and water ecosystem protection for Lake Karelian Pyhäjärvi. Lake
Pyhäjärvi, in Karelia, is an oligotrophic transboundary lake between Finland and Russia. It
is a valuable clear water lake for fishing, recreation, research and nature protection. It
belongs to several local and national monitoring programmes. The lake is loaded mainly
by non-point sources such as forestry and agriculture. The anthropogenic impact is
evident on the Finnish side, whereas the Russian side is considered almost pristine. The
lake is very vulnerable to changes. Deterioration of water quality was noticed in the
1980’s. The water conservation done in 1990’s improved the water quality. Water
protection is still needed at the lake, but it requires cooperation between authorities,
local people, doers and industries. This report introduces the lake and its catchment,
summarises the land use, loading sources and quantity of the load and presents the
present state of the lake. In the end are introduced the water protection measures of
different fields usable at Lake Pyhäjärvi.
e) IT sector
General description

Number of companies in this sector and tendencies of development
99
Information technology is one of the priorities in the regional development.
Networking of IT sector enterprises will produce competitiveness to product development
and marketing. The sector's structure can be strengthened through intensification of cooperation between enterprises as well as through creation of international business
contacts.
Number of companies raise by 50%. (Sources: Josek Oy 2003)

Employees
Companies
Workers
North
Karelia
64
324
Finland
4,481
36,713
Turnover
euro)
(1,000
22,827
3,982,718
Sources: Tilastokeskus 2003

Regional value
Co-operation between enterprises of the IT sector and training and education
organisations has traditionally been strong and successful in the Joensuu Region. Further
development of this co-operation as well as searching for new forms of co-operation will
occupy an important role in wide-scale utilisation of the new information technology also
in the future.
SWOT analysis
STRENGTHS
 Know-How (education).
 Innovative companies.
 Cooperation with Republic of Karelia.
OPPORTUNITIES
 Potential for the future development.
 Cooperation with Republic of Karelia.
WEAKNESSES


High competition.
Small market area.
THREATS

Cooperation with Republic of Karelia.
The most important players and projects in the sector

Most important companies
The IT service unit of Joensuu Science Park Ltd implements the ICT part of the
Regional Development Programme of the Joensuu Region. The role of the Science Park is
100
to create facilities for the region's enterprises to meet with the research know-how of the
internationally high level IT sector. Development is based on the Regional Technology
Strategy drawn up in 2003, which will be implemented in co-operation with the region's
strong sectors, the forest, plastic, metal and stone industries.
International competition and continuous changes in business operation environments
create challenges to increase productivity in information-related work. Joensuu Science
Park aims at meeting with these challenges through the ongoing and planned operation
environment development projects. Particular attention is paid to the eWork, mWork and
netWork methods of flexible information work as well as to understanding, building and
further development of a new kind of work community culture. The ongoing netWork
Oasis concept design searches for opportunities to increase the productivity of creative
information work, which is independent of time and place.

Institutions integrating and supporting the sector / cooperation in the sector
Josek Oy: The business idea of JOSEK, Joensuu Regional Development Company, is
to strengthen and diversify the regional business structure, to enhance the
competitiveness of the region and to improve the operating conditions of businesses in
the increasingly international environment by consolidating co-operation. JOSEK is
responsible for business counselling, marketing and business facility services in the
Joensuu region, and it counsels enterprises planning to establish themselves in the
region. The focal areas in the business strategy are the plastics and metals industry,
wood product industry and wood energy, information and communications technology,
welfare technology and services, and tourism. JOSEK is involved in both administering
and financing business development projects in the selected focal areas. Project funding
provided by JOSEK serves as seed funding required to launch the necessary development
projects. The overall objective is to raise the effectiveness of business development,
business counselling and marketing of the region significantly in co-operation with the
other players involved.
North Karelia University of Applied Sciences, Degree Programme in Information
Technology http://tekniikka.ncp.fi/tieto/ and Degree Programme in Communication
(Media) http://media.ncp.fi/.
University of Joensuu, The Department of Computer Science is one of the university's
largest units. Top fields in research are media computing, educational technology and
cognition of computing. http://www.joensuu.fi/tkt/english/

Innovative project/product/service application
On-going projects: FlexLab is a project accomplished by Joensuu Science Park
Ltd. FlexLab space is founded for testing and developing further on environment for
future knowledge work, which supports innovation process. In FlexLab we test for
netWork Oasis IT applications, interior and furniture solutions and standads of activity for
multiorganisational working space. netWork Oasis will be constructed before the end of
year 2006 and included in next expansion phase of Joensuu Science Park. Customers can
test their applicability and capability to work in space like FlexLab and also their own
flexible working equipment and habits.
Projects under preparation: The SME Logistics Service Center project offers small and
medium-sized enterprises an opportunity to join the logistic centre regardless of the
101
logistics software or method they use. The project will test and develop a concept to
enable production of the electric documents and transfer of information related to the
material flow in the whole value chain, when the different parts of the chain use different
logistics software and method. The project will be implemented in 2005-2007. Joensuu
Science Park Ltd.
Realised projects: The Oasis Cottage Network project was implemented with a test group
coming mainly from the capital region. The project tested the rental cottages of the rural
entrepreneurs Sampo Pitkänen, Juhani Tukiainen and Raimo Pölönen as environments for
distant work in August-September 2003. The project results and experiences will be
utilised both in the development of the business activities of tourism entrepreneurs and
in the development work of new operation environments of Joensuu Science Park.
IT Networker 2003 was a continuation for the project started in 2002. The project
developed the facilities for operation of the IT sector enterprises e.g. through training cooperation with the project "Learning Organisations 2000+". The project ended
31.12.2003, but training continued in 2004. Joensuu Science Park Ltd.
The IT sector management training programme was created based on the study realised
in connection with the IT Networker (IT-Verkottaja) 2003 project. A total of five training
days will be organised during the spring. The themes during the contact training days
were strategic planning in the IT sector (1 day), partnership and networking (2 days),
international sales in the IT sector (1 day) and jurisprudence in the IT sector (1 day).
The programme includes also enterprise-specific consultancy in the chosen themes. The
programme were implemented in co-operation with the project Learning Organisations
2000+ administered by the Employment and Economic Development Centre for North
Karelia. Joensuu Science Park Ltd.

Examples of research and implementation projects carried out with universities
The project Increasing and promotion of Linux know-how aims at creation of an
environment, in which all entrepreneurs utilising information technology would have
equal opportunities to implement their own business activities. The environment would
enable development of new business activities also in North Karelia, regardless of the
software environment. On the other hand the operation model for moving from one
information system to another will improve the possibility of competitive tenders and
cost-efficiency even in bigger organisations. The project was administered by the North
Karelia University of Applied Sciences. Joensuu Science Park Ltd.
Cross-border situation

Situation in neighbouring region in analogous sector
In December 2004, the "e-Karelia" project was launched on the territory of the
Republic of Karelia. Its main goal being fostering economic growth and competitiveness
through development of up-to-date Information Communication Technoligies (ICT);
accessibility for small and middle enterprises (SME)in the republic, as well as support to
increased utilization of advanced information technology.
"e-Karelia" aims to win the objectives of raising the efficiency of economy by introducing
and wide spreading ICT, creating technological conditions to subdue ‘information
inequality’ in business community, and ensuring citizens’ rights to have free access to
information.
102
The project supports SMEs in promotion, training, marketing, and using up-to-date
information technology, in developing international ICT-based business relations, and is
supposed to constitute an integral part of the informatization process in Karelia.
http://e-karelia.ru/Homepage/?lang=eng

Cross-border cooperation
Ministry of Economic Development of Republic of Karelia
Aleksandr Vladimirovich Grischenkov, Minister
Address: 2 Andropov St., 185028 Petrozavodsk. Tel.: +7(814 2)782 734
E-mail:economy@karelia.ru
URL: http://gov.karelia.ru/gov/Power/Ministry/Development/index.html
Chamber of Commerce and Industry of RK
Aleksandr Aleksandrovich Pankratov, President
Address: 4 Engels St., Room 16, 185035 Petrozavodsk
Tel./Fax: +7 (8142) 783 040, +7 (8142) 765 478
E-mail: chamber@karelia.ru
URL: http://chamber.karelia.ru
Karelian Regional Small and Medium Business Support Agency
Alexander A.Senichev, Director General
Address: Gogol str. 56-1, Petrozavodsk, 185035. Tel. +7 (8142)782 255
E-mail: company@onego.ru URL: http://msb.onego.ru
Karelian Foundation for SME development
Michail S. Rubin, Director
Address: 4 Engels St., Room 16, 185035 Petrozavodsk
Tel. +7 (8142)782 191, 762 165
E-mail: business@onego.ru
URL: http://delo.karelia.ru
f) Mechanical engineering sector
General description

Number of companies in this sector and tendencies of development
In North Karelia Region about 25 years ago mechanical engineering, plastic and metal
sectors was united to one special sector – Plastics and Metals.
The plastic, metal and engineering industry in North Karelia focuses especially on the
creation of innovative business concepts, utilisation of information and communications
technologies, and development of cost-efficient production, services and manufacture.
Metal sector’s growth strategy: The main objective of the strategy is to improve the
competitiveness of leading companies and production networks in the global market. The
programmes focus on the development of products and production networks. The
subcontracting networks’ functionality, quality of operation and mastering of production
technologies play a key role. Companies are encouraged to participate in regional,
national and international technology programmes and development projects.
Products and services: Locks and security products, Logistics machinery and equipment
103
for the forest industry, Manufacture and assembly of forwarders and road graders,
Machinery and equipment for the sawmill industry, Loaders and access platforms, Sheet
metal products, Transmission gears, Component assembly of industrial equipment and
machinery, Materials handling equipment and machinery, Machinery and equipment for
the process, concentration, and metallurgical industry, Cable connectors, Connectors and
base station components for the ICT industry, Current path solutions and instrumentation
components, High-precision machined parts, Transport containers, Manufacture of
trailers and bodywork, Die-casting products, Manufacture of tools, Welded steel
structures, Versatile surface treatment, Subcontracting,
State-of-the-art technologies: distributed networked 3D design and manufacture, new
cutting and welding technologies.
Key technologies: robotics, automation, CAD, CAM, tool engineering, die-casting,
materials technology, coating
Associated technologies: hydraulics, electrical engineering, simulation systems
Plastic sector’s growth strategy: The strategy aims at improving the expertise and
quality of the sector, developing and applying new technologies at a rapid pace, and
focusing on the service that will be demanded by the customers of the future. Superior
know-how, differentiation, and standing out from competitors are the most important
competition strategies. Intelligent materials, design, coating technologies, international
marketing and microparts are the areas of focus in the development of the products,
services and production networks.
Products and services: High-precision thermoplastic injection moulding components,
Plastic laboratory equipment and supplies, Medical dosing apparatus and components,
Production of elastic packing materials, Lattice mast structures,
Light-weight composite structures, Ropes, strings and nets, Manufacture of die-casting
and injection moulds, Thermoplastic consumables, Subcontracting.
State-of-the-art technologies: materials technology, modern optics, tool manufacture
based on 3D product design.
Key technologies: digital manufacture, CAD, CAE, CAM, product design, PDM,
manufacture of microparts, injection moulding technology, tool manufacture, FMS,
measuring technology, quality control and SPC, industrial design.
Associated technologies: electronics, automatic control engineering, coating and painting,
recycling, ICT, light-weight composite structures, computer vision, sheet metal
engineering and cutters, microelectronics, integration of metal parts, logistics.

Employees
The region has about 400 businesses in the plastics and metals sector. Ten years ago,
they employed 3,000 people. Today, they employ more than 6,000. Experienced leading
companies, SMEs inclined to grow, and a large number of quick-moving subcontractors
constitute the skeleton of the industry.

Regional value
One of the main attractions of the region is its location near the Russian border:
firstly, close to the city of St. Petersburg with more than 5 million inhabitants and
secondly, the Republic of Karelia with abundant natural resources and the Barents
region, rich in energy resources.
104
Thanks to intensive development and expertise, the North Karelian plastics industry now
holds the number one position among Finnish plastic manufacturers when measured by
value added.
SWOT analysis
STRENGTHS
 Availability of skilled labour force.
 Versatile expertise and interdisciplinary
research services.
 The business structure of the North.
 Karelian plastics and metals sector.
OPPORTUNITIES
 Potential for the future development.
 Cooperation with Republic of Karelia.
WEAKNESSES

Location.
THREATS
 Increasing competition in locations of
plants.
The most important players and projects in the sector

Most important companies
Telecommunications and electronics: Perlos Oyj, Valukumpu Oy, Mastsystem Int’l Oy,
Carelia Tools Oy, Oy All-Plast Ab, Toolman Oy, Abloy Oy, Joensuun Hienomekaniikka Ky,
Konepaja Kirike Oy, Alsiva Oy, Exel Oyj, R. Nilsén Ky, Esa Kaariaho Oy, Okun
Koneistuspalvelu Oy, Fin-Koneistus Oy, Suomen CNC-Metal Oy, Tuotepaja Ky, Karjalan
Kunnossapito Oy, Jotwire Oy, Vibratec Oy, Muuntosähkö Oy, MTM Connections Oy,
Fodesco Oy, Greenfox Oy, Valtimo Components Oyj.
Forest Industry and Bioenergy: Timberjack Oy, Kesla Oyj, Mantsinen Oy, Outokummun
Metalli Oy, Kit-Sell Oy, Konepaja Kirike Oy, MFG Components Oy, Hassinen Veljekset Oy,
Konekorjaamo Riikonen Oy, New Steel Oy, Pentin Paja Oy, Karjalan Laakeri Oy,
Rakennustempo Oy, Hymat Oy, Suomen Levyprofiili Oy, TTT Technology Oy Ab.
Contract Manufacturing in the Metal and Engineering Industry: Outokumpu Technology
Turula Oy, Konepaja Kirike Oy, Alsiva Oy, Rakennustempo Oy, New Steel Oy, Suomen
CNC-Metal Oy, Katatec Oy, MFG Components Oy, Okun Koneistuspalvelu Oy, Toolman
Oy, Hestek Oy, Suomen Levyprofiili Oy, Lapinlahden Levypalvelu Oy, Tuotepaja Ky, R.
Nilsén Ky.
Construction and Light Structures: Abloy Oy, Aillos Oy, Joptek Oy Composites, Toolman
Oy, Valukumpu Oy, Carelia Tools Oy, Ouneva Oy, Okun Koneistuspalvelu Oy, Fodesco
Oy, Poimukate Oy, Tecwill Oy, Mitaxin Ky, Lieksan Profiili Oy, Katatec Oy,
Rakennustempo Oy, Tmi Esa Kaariaho, MTM Connections Oy, Vibratec Oy.
Transport and Logistics: Mantsinen Yhtiöt Oy, Konepaja Antti Ranta Oy, Joptek Oy
Composites, LST-Säiliöt Oy, Toolman Oy, Karjalan Kone-Hydro Oy, AMT-Veneet Oy, MFG
Components Oy, New Steel Oy, Ampi-Autosähkö Oy, Kesmac Oy, Rakennustempo Oy,
Veekmas Oy, Polttoleikkauspalvelu Pääkkönen Ky.

Institutions integrating and supporting the sector / cooperation in the sector
Special Material Research Centre (SMARC) commercialises the know-how of the
University of Joensuu’s Department of Chemistry, The University of Joensuu established
105
an academic chair in materials research, InFotonics Center commercialises optics knowhow and offers businesses research services, Lappeenranta University of Technology’s
academic chair in “modern design and production methods” is located in Imtec, Further
education programme “From engineer to graduate engineer”, New post-graduate degrees
for engineers at the University of Applied Sciences, Excellent learning environments,
post-graduate education and internationalisation programmes for companies and
employees, Many types of further and specialist qualifications, D’ART Design Resource
Centre, Accredited Calibration Service of Eastern Finland, VTT, Technical Research Centre
of Finland
North Karelia University of Applied Sciences, Degree Programme in Plastics Engineering
http://muovitekniikka.ncp.fi/

Innovative project/product/service application
Special Materials Research Center SMARC is a research unit operating in co-operation
with the University of Joensuu’s Department of Chemistry which serves local businesses.
Together with industrial enterprises, SMARC develops innovations made in the materials
sector into products. The research centre produces top research in the materials sector
and research for product development, and follows the latest developments in the field.
SMARC also offers its versatile expertise and equipment stock for companies to use.
The InFotonics Center at Joensuu in Finland is a research and business service centre for
modern optics which combines photonics and information technology know-how. The
core expertise of the InFotonics Center concentrates on wave-optical engineering and
spectral colour research, in which the center has become a global leader in research. The
InFotonics Center provides an interface between industry and the University of Joensuu
in the commercialisation of high technology optical research. The InFotonics Center is
establishing an intensive co-operation network with the leading laboratories and
institutes in the field.

Examples of research and implementation projects realized with universities
The third generation natural fiber composites manufactured by Kareline Oy Ltd
combine in a new and innovative way excellent properties of natural fibers and plastics.
The materials offer you a whole new possibility to manufacture environmentally friendly
injection molding or extrusion molding composite products that comply with all
environmental requirements. The Kareline natural fiber composites boast a whole
number of valuable properties. Some of the properties offered by these materials are
such that can’t be reached with any other competing material. In addition, the Kareline
materials can be very extensively customized even as comes to the requirements of a
single end product. Cooperation in research wit University of Joensuu and North Karelia
University of Applied Sciences.
Cross-border situation

Situation in neighbouring region in analogous sector
The basics of the economy structure of Karelia are industrial complexes connected
with the use of natural resources.
106
More than a half of people employed in the Karelian industry work in timber, lumbering,
woodworking and cellulose-and-paper industries. It provides 56% of the whole produced
output and one third of the incomings of the republican budget. Two thirds of the
lumbering industry outputs are exported; practically each third Russian newspaper is
printed on a paper produced in Karelia.
The group of enterprises of metallurgy and mining complex holds the second position in
the regional economy. The largest iron ore deposit in the North belongs to
Kostomukshsky industrial complex; the production of Nadvoitsky aluminium plant is on
the increase. Hundreds of thousand meters of decorative tile, granite detritus for the
road building, diabase solid blocks and building materials are made out of the natural
stone of Karelia.
The machine building industry of the republic produces the equipment for lumbering,
paper, chemical and woodworking industries. For a number of years particularized boats,
promenade yachts and boats for a mass consumption had been produced at the
shipbuilding plant in Petrozavodsk.

Cross-border cooperation
Chamber of Commerce and Industry of RK, Aleksandr Pankratov, President
Address: 4 Engels St., Room 16, 185035 Petrozavodsk
Tel./Fax: +7 (8142) 783 040, +7 (8142) 765 478
E-mail: chamber@karelia.ru
URL: http://chamber.karelia.ru
Karelian Foundation for SME development,
Michail S. Rubin, Director
Address: 4 Engels St., Room 16, 185035 Petrozavodsk
Tel. +7 (8142)782 191, 762 165
E-mail: business@onego.ru
URL: http://delo.karelia.ru
107
VIII.
Conclusions
Conclusions will be presented at the planned meeting in Linz.
108