How we made it the Joensuu Region’s success story
Regions for economic change:
Regional Policy responses to demographic challenges
Brussels - 25 and 26 January 2007
Keijo Mutanen, Managing Director
Jarmo Kauppinen, Programme Director
Joensuu Regional Development Company Ltd.
www.josek.fi
Population changes in Joensuu sub-regional unit 1990 - 2005
Live births, Deaths, Net migration and Tolal Population
Persons
2000
1500
1000
500
0
-500
-1000
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005
Live births
2006 regional boundaries
Source: Statistics Finland, Demographic statistics
Deaths
Net migration
Total population
SeutuNet
From depression to strong growth in Joensuu Region
• Unemployment rate jumped from 7 to 23 % during period 1990 - 1995
• Main reasons:
• disruption of Soviet Union => loss of exports
• world depression
• failed national economical policy
• Turn around of direction by:
• long term investments and development activities in selected business sectors
• development of education and innovation system in close cooperation with industry
and other sectors
• establishment of regional development company and systematic networking
strategy, regional business development programme with challenging targets
• utilization of EU structural funds, National Centre of Expertise Programmes and
Regional Centre Programme
www.josek.fi
Long term investments and development activities in
selected business sectors
• Selection on key business sectors; plastic and metal products, forestry and wood
products, information and communication technology, tourism
• Programme agreements between main financing and development organizations
(Objective 6 Programme 1995 - 1999)
• investments in infrastructure (e.g. Joensuu Science Park / Imtec and Puugia,
University of Applied Sciences / D’ART design centre and Cadimef studios)
• Growth programmes for different business sectors (Objective 1 Programme
2000 - 2006)
• Carelian MetPlast Programme for SMEs in metal and plastic product sectors
(about 130 companies)
• WoodHow Programme for SMEs in wood product sector (about 25 companies)
• same type of programmes also for tourism and ICT sectors
www.josek.fi
Development of education and innovation system in close cooperation
with industry and other sectors
• Multiple educational opportunities; e.g. University of Joensuu, University of
Applied Sciences, vocational education including adult education and training
• Joensuu Science Park, universities and high tech companies operate in same
premisies and form a collaborative innovation environment, incl. Incubator services
• Direction of vocational and engineering education according to needs of industry
and other business
• Investments in specific education sectors, e.g. design (D’ART), advanced welding
and tooling, product development and engineering (in cooperation with
Lappeenranta University of Technology)
• Investments and development of new high tech sectors, e.g. modern optics
(InFotonics Centre) and material research (SMARC = The Special Material
Research Centre)
www.josek.fi
Establishment of regional development company JOSEK Ltd
and systematic networking strategy, regional business
development programme with challenging targets
Owner
municipalities (8)
Operational responsibility
Real estate
companies of
municipalities
Educational
organisations
National
partners
e.g. SEKES, TEKES
Neighbouring regions
Joensuu Science
Park Ltd.
Joensuu Regional
Development Company Ltd
• regional business policy and development
• business councelling
• marketing of the region
North Karelia Jobs &
Society,
Incubator services
Business
associations,
Companies
Karelia Expert
Tourist Service Ltd
Financial
organizations
International
partners
e.g. Eurada
www.josek.fi
Utilization of EU structural funds, National Centre of Expertise
Programmes and Regional Centre Programme
• EU structural fund programmes have played key role in financing of the
investments in the innovation system and the implementation of the
development and growth programmes
• National Centre of Expertise Programmes until the end of 2006 in two fields:
1) Wood Technology and Forestry and 2) Plastics and Tooling
• the task was to use internationally competitive knowledge and skills as a resource
for business activities, creation of new jobs and for regional development
• National Regional Centre Programme has complemented other programmes
and has been used as a tool for management of the regional business
development programme
• Systematic and complementary utlization of all programmes in cooperation
with different development organizations
www.josek.fi
Enterprise start-ups and closures in the area of JOSEK Oy
1999 - 2005
500
Number
Start-ups
Closures
400
300
200
100
0
1999
2000
2006 regional boundaries
Source: Statistics Finland, Business Statistics
2001
2002
2003
2004
2005
SeutuNet
Industrial jobs and unemployment rate in
Joensuu region 1990 - 2006
12000
25
10000
20
8000
15
6000
10
4000
5
2000
0
0
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005
Industrial jobs
Unemployment rate %
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Conclusions - summary of the results
• Number of population is increasing
• Number of industrial jobs is growing
• International companies are making investments (e.g. John Deere’s
investment in Joensuu was awarded the best investment in Europe
by 2004 World Investment Conference in LaBaule)
• Region’s investment level/capita is the 2. highest in Finland
• Region’s business image is the 3. best in Finland
What next?
• Attract foreign labour and new international investments
• Utilization of new EU structural fund period 2007 - 2013 (e.g. new
growth programmes in different sectors)
• Utilization of emerging new markets, especially Russia
=> Joensuu region - the most attractive centre of growth in Finland!
www.josek.fi