European observatory for clusters and industrial change : policy briefing : North-Middle Sweden.
Date: 2019-10-28
Institutions: Executive Agency for Small and Medium-sized Enterprises
Subjects: North Middle Sweden, Sweden, aid to undertakings, business cluster, innovation, investment, modernisation of industry, regional cooperation, regional policy, small and medium-sized enterprises, technology transfer

European Observatory for Clusters 

 and Industrial Change 

Policy Briefing –  

North-Middle Sweden 

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 This policy briefing report was carried out for the European Commission by 

Authors: 

Maria Lima-Toivanen (VTT) 
Nina Rilla (VTT) 

Andrea Zenker (Fraunhofer ISI) 

DISCLAIMER 

The information and views set out in this publication are those of the author(s) and do not necessarily reflect 
the official opinion of EASME or of the Commission. Neither EASME, nor the Commission can guarantee the 
accuracy of the data included in this study. Neither EASME, nor the Commission or any person acting on their 
behalf may be held responsible for the use which may be made of the information contained therein. 

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The European Commission is not liable for any consequence stemming from the reuse of this publication.  

Luxembourg: Publications Office of the European Union, 2019 

© European Union, 2019 

Reuse is authorised provided the source is acknowledged.  

The reuse policy of European Commission documents is regulated by Decision 2011/833/EU (OJ L 330, 
14.12.2011, p. 39). 

For any use or reproduction of photos or other material that is not under the copyright of the European 
Union, permission must be sought directly from the copyright holders. 

PDF      ISBN 978-92-9202-657-8         doi: 10.2826/73752         EA-02-19-816-EN-N 

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Table of Contents 

Selection as one of 10 regions in industrial transition .................................................................................................... 6 

1. 

Introduction .......................................................................................................................................................................... 7 

1.1.  Aims and objectives of the exercise ..................................................................................................................... 7 

1.2.  Key economic and innovation indicators for the pilot region ................................................................... 8 

2. 

3. 

4. 

Key challenges, barriers, and drivers of industrial modernisation in North-Middle Sweden ............ 12 

Proposed regional strategy to address the challenges .................................................................................... 15 

Specific recommendations for policy intervention............................................................................................. 18 

4.1. 

Integration and coordination function ............................................................................................................ 21 

4.1.1.  Description ......................................................................................................................................................... 21 

4.1.2.  Benefits and Costs .......................................................................................................................................... 23 

4.1.3.  Risks, obstacles and challenges ................................................................................................................. 25 

4.2.  Technological and innovation knowledge development function ....................................................... 25 

4.2.1.  Description ......................................................................................................................................................... 25 

4.2.2.  Benefits and Costs .......................................................................................................................................... 28 

4.2.3.  Risks, obstacles and challenges ................................................................................................................. 30 

4.3. 

Internationalisation function ................................................................................................................................ 31 

4.3.1.  Description ......................................................................................................................................................... 31 

4.3.2.  Benefits and Costs .......................................................................................................................................... 33 

4.3.3.  Risks, obstacles and challenges ................................................................................................................. 34 

5. 

Roadmap and action plan with activities, timeframe and actors .................................................................. 35 

European Observatory for Clusters and Industrial Change ........................................................................................ 38 

List of Figures 

Figure  1:  Selected  economic  data  for  the  10  pilot  regions:  GDP/capita,  Employment  rate,  Share  of 
employees with higher education degree and Specialisation in manufacturing ................................................. 8 

Figure 2: Selected technological indicators for North-Middle Sweden ................................................................... 9 

Figure 3: Composite indicators for Industrial Change: North-Middle Sweden .................................................. 10 

Figure 4: Composite indicator industrial change (total index) and cluster stars (total) for pilot regions 11 

Figure 5: The regional ecosystem and framework conditions of North-Middle Sweden .............................. 12 

Figure 6: Overview of the regional industrial modernisation strategy in North-Middle Sweden............... 16 

Figure 7: Action plan for creating an innovation ecosystem approach in North-Middle Sweden ............. 20 

Figure 8: Prioritised actions for integration and coordination function ............................................................... 21 

Figure 9: Prioritised actions for technological and innovation development function ................................... 26 

Figure 10:  Prioritised actions for internationalisation function ............................................................................... 31 

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List of Tables 

Table 1: Strengths, weaknesses, opportunities, and threats of industrial transition ........................................ 13 

Table 2: Benefits and costs for key actions in integration and coordination ...................................................... 23 

Table 3: Benefits and costs of key actions in technology and innovation knowledge development........ 28 

Table 4: Benefits and costs of key actions of internationalisation function ........................................................ 33 

Table 5: Action plan ................................................................................................................................................................... 35 

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Selection as one of 10 regions in industrial 

transition 

The customised advice on modern cluster policy in support of industrial modernisation provided to the 
10  regions  in  industrial  transition  is  funded  by  the  Directorate-General  for  Internal  Market,  Industry, 
Entrepreneurship and SMEs (DG GROW), as part of the European Observatory for Clusters and Industrial 
Change (EOCIC). The regions were selected as a result of an open call for expression of interest, published 
and assessed by the Commission services. The Commission launched a first call for expression of interest 
on  29  September  2017  and,  as  a  result  of  demand  from  regions,  a  second  call  was  launched  on  14 
December 2017.1   

The following regions were selected2: 

Lithuania 

•  Cantabria (Spain)  
•  Centre Val de Loire (France)  
• 
East & North Finland 
•  Hauts-de-France (France) 
• 
•  North-Middle Sweden 
•  Piemonte (Italy) 
• 
• 
•  Wallonia (Belgium) 

Saxony (Germany) 
Slovenia 

The aim of the work being provided by the 
EOCIC to 10 regions in industrial transition 
is to define a set of actions in the form of 
foster 
a  comprehensive  strategy 
regional economic transformation, identify collaboration and funding opportunities and connect with 
other regions in regional and cluster partnerships.  

to 

This pilot will help test new approaches to industrial transition and provide the European Commission 
with evidence to strengthen post-2020 policies and programmes.  

The output of the first phase of the EOCIC advisory services was an assessment report, which summarises 
the key challenges of industrial  modernisation for the region and the potential  policy directions. The 
second  phase  of  the  EOCIC  advisory  services  will  build  on  this  report  to  develop  concrete  policy 
proposals for each industrial transition region. DG GROW and the EOCIC are working closely with the 
Directorate-General for Regional and Urban Policy (DG REGIO) and the OECD to provide advice services 
for the pilot regions. 

More information on the activities carried out by the EOCIC is available at the end of this report. 

1 Details on the selection procedure are available at: 
https://ec.europa.eu/regional_policy/en/policy/themes/industrial-transition/  
2 12 regions were initially selected for the overall process of the project on pilot regions in industrial transition, of 
which 10 then engaged with the project through to the final stages of the work carried out by the EOCIC. 

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1.  Introduction  

1.1.  Aims and objectives of the exercise  

The aim of the work in North-Middle Sweden is to support regional authorities and stakeholders in 
designing modern cluster policies that promote broad-based innovation and support industrial 
in  the  region.  Regional  policy  challenges,  proposed  strategy  and  policy 
modernisation 
recommendations  presented  in  this  policy  brief  are  based  on  the  North-Middle  Sweden  assessment 
report and dialogue with regional stakeholders.  

A first round of interviews and workshops (with different regional innovation systems actors) took place 
in  May  2018  in  Stockholm  and  North-Middle  Sweden  region,  while  a  policy  review  meeting,  was 
organised  in  November  2018  in  Stockholm.  The  latter  event  was  arranged  together  with  ‘Regions  in 
Industrial Transition’ project and AMI expert3.  

The  main contributors  to  identifying policy  challenges in North-Middle Sweden’s  industrial  transition 
and  cluster  development  have  been  regional  authorities  and  industry  clusters  with  whom  ideas  and 
solutions have been discussed and verified during the project on various occasions. Policy dialogue has 
continued further with the regional authorities to formulate the regional strategy and recommendations 
presented in this report.    

This document includes the main challenges  for the region through a SWOT (Strengths, Weaknesses, 
Opportunities and Threats) analysis and a PEST (Political, Economic, Socio-cultural and Technological) 
analysis. Both are described in Chapter 2. Based on these challenges, Chapter 3 provides a customised 
strategy  designed  to  address  the  needs  and  challenges  identified.  Chapter  4  presents  two  specific 
recommendations for policy intervention. Their respective action plans are in Chapter 5. 

3 External experts contracted by DG REGIO to provide support to the pilot regions in industrial transition 

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1.2.  Key economic and innovation indicators for the pilot region  

In 2017, North-Middle Sweden had a gross domestic product (GDP) of EUR 38 000 per capita, which is 
above the EU level of EUR 30 000, but below the national figure (EUR 47 200). North-Middle Sweden has 
the highest per capita GDP of the 10 pilot regions. 

Figure 1 combines selected economic indicators for the 10 pilot regions (see also Annex A). It clearly 
shows  North-Middle  Sweden's  good  position  in  terms  of  economic  strength,  measured  as  GDP  per 
capita. The region also ranks first in terms of its employment rate. With 33.5% of employees with a higher 
education degree, North-Middle Sweden ranks eighth among the pilot regions and has a below-average 
level of highly educated employees compared to the EU average (34.4%) and the national share (41.1%). 
North-Middle  Sweden  is  specialised  in  manufacturing  compared  to  the  EU;  the  regional  location 
quotient is 1.2789. 

Figure 1: Selected economic data for the 10 pilot regions: GDP/capita, Employment rate, Share of 
employees with higher education degree and Specialisation in manufacturing 

Source: EOCIC, based on Eurostat data and own calculations 

North-Middle  Sweden's  share  of  employment 
(high-technology 
manufacturing and knowledge-intensive high-technology services) is below the national and EU levels. 
The business enterprise sector in North-Middle Sweden spends a higher percentage of the total business 
expenditure  on  research  and  development  activities  than  enterprises  in  Sweden  as  a  whole  and  the 
European Union. However, the region's share of R&D personnel in the business sector is below the EU 
figure and the national level (figure 2).  

in  high-technology  sectors 

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30.035.040.045.050.055.060.065.070.010,00015,00020,00025,00030,00035,00040,00045,000SloveniaCantabriaCentre-Val de LoireWalloniaHauts-de-FrancePiedmontSaxonyNorth Middle SwedenGDP / capita 2017 Employment rate 2017 (%)Symbol size: Share of employees with higher education degree 2017 (%)Dark symbol colour:Specialisation in manufacturing compared to EU average 2015 (location quotient> 1)East & North FinlandLithuaniaEUROPEAN UNION 
 
 
 
Figure 2: Selected technological indicators for North-Middle Sweden 

Source: EOCIC, based on Eurostat data and own calculations  

In order to provide insights into industrial modernisation, the European Observatory for Clusters and 
Industrial Change (EOCIC) provides composite indicators on seven dimensions: Evolution towards a more 
innovative  regional  economy;  New  and  emerging  technologies;  Digitalisation;  Firm  investments; 
Internationalisation; Creativity; and Entrepreneurship. Each dimension is represented by a set of specific 
indicators, which are condensed to a composite indicator. Figure 3 presents the results for those seven 
dimensions  in  North-Middle  Sweden.  The  region’s  highest  scores  are  for  the  firm  investments, 
digitalisation and creativity dimensions, while its lowest score is for new and emerging technologies. On 
the entrepreneurship, internationalisation, innovation and new technologies dimensions, North-Middle 
Sweden is below the national and EU levels. Even though the pilot region's scores are below those for 
Sweden  as  a  whole  on  each  dimension,  North-Middle  Sweden  exceeds  the  EU  level  on  its  strongest 
dimensions, i.e. with respect to firm investments, digitalisation and creativity.  

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0.01.02.03.04.05.06.0North Middle SwedenSwedenEuropean UnionEmployment in high-technology sectors 2017Share of total employment (%)0.000.200.400.600.801.001.201.40North Middle SwedenSwedenEuropean UnionR&D personnel in the business enterpr. sector 2016Shareof active  population (%)0.0010.0020.0030.0040.0050.0060.0070.0080.00North Middle SwedenSwedenEuropean UnionBusiness expenditure on R&D 2016Share of total R&D expenditures(PPS 2005 prices) 
Figure 3: Composite indicators for Industrial Change: North-Middle Sweden 

Source: EOCIC, based on various data sources and own calculations 

Figure 4 shows the most recent total composite indices for industrial change and the total number of 
cluster stars in the pilot regions (NUTS2 level). The composite indices show industrial change in a range 
between 0.4 and 0.8, and the total number of cluster stars in a range between 10 and 70 in the 10 pilot 
regions. Five NUTS 2 regions have 45 or more cluster stars. Piemonte is the clear leader (69 stars). By 
contrast, various regions have 20 or fewer cluster stars – among them North-Middle Sweden (15 stars). 
Figure 4 also shows that the industrial change ranking is led by Walloon Brabant: on a scale of 0 to 1, 
this NUTS 2 region has a score of 0.751.  

Mapping the pilot regions’ industrial change and cluster stars reveals three different types of region: (1) 
high number of cluster stars, but moderate composite index of industrial change (below 0.5) (Piemonte, 
Nord-Pas-de-Calais, Picardie, Centre-Val de Loire, Lithuania), (2) regions with moderate figures for both 
indicators (below 35 cluster stars and composite indices of industrial change below 0.6) (Hainaut, Liège, 
Slovenia, Dresden, Namur, East & North Finland, Leipzig, Luxembourg, North-Middle Sweden, Cantabria, 
Chemnitz), and (3) Walloon Brabant (composite index of 0.75 and close to 40 cluster stars). In the second 
group,  Hainaut,  Liège  and  Slovenia  stand  out  from  the  other  regions  due  to  the  higher  numbers  of 
cluster stars. In part, this is also the case for Chemnitz, but it has a lower index for industrial change. 

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00.10.20.30.40.50.60.70.80.91CreativityDigitalisationEntrepreneurshipFirm investmentsInnovationInternationalisationNew technologiesNorth Middle SwedenSwedenEU 
 
 
Figure 4: Composite indicator industrial change (total index) and cluster stars (total) for pilot regions 

Source: EOCIC, based on various data sources and own calculations 

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102030405060700.4000.4500.5000.5500.6000.6500.7000.7500.800Cluster stars (total number)Composite indicator industrial change (composite index)Wallonia: LiègeSachsen: ChemnitzWallonia: Walloon BrabantSachsen: DresdenWallonia: NamurEast & North FinlandWallonia:LuxembourgSachsen: LeipzigCantabriaPiedmontHauts-de-France: Nord-Pas-de-CalaisHauts-de-France: PicardieLithuaniaCentre-Val de LoireSloveniaNorth Middle SwedenWallonia: Hainaut 
 
 
 
 
 
2.  Key challenges, barriers, and drivers 

of industrial modernisation in 

North-Middle Sweden 

This  chapter  summarises  the  main  findings  from  the  regional  assessment  report,  highlighting  key 
challenges, barriers and drivers  related  to  industrial  modernisation  in  North-Middle Sweden with the 
help of political, economic, social and technological (PEST) and strengths, weaknesses, opportunities and 
threats  (SWOT)  frameworks.  The  political,  economic,  socio-cultural  and  technological  conditions  in 
North-Middle Sweden, as seen in Figure 5, reveal that the region suffers mostly because of its peripheral 
location compared to the capital region of Stockholm. This shows in the region’s low attractiveness to 
private finance, skills and talent, and international companies, to name but a few examples. A key driver 
in North-Middle Sweden is, in turn, a well-functioning regional innovation system (RIS) that integrates 
clusters  in  research,  development  and  innovation  (RD&I).  Development  of  co-creation  and  open 
innovation platforms will  help to  disseminate  regional RD&I capabilities in national and international 
contexts.    

Figure 5: The regional ecosystem and framework conditions of North-Middle Sweden 

Source: EOCIC 

Table  1  summarises  the  SWOT  analysis  related  to  industrial  transition  in  North-Middle  Sweden.  This 
assessment is based on the regional AMI expert’s work. North-Middle Sweden has multiple examples of 
current good practices, e.g. Academy of Smart Specialisation, which can be replicated in other parts of 
the region and elsewhere to improve technological and innovation competences. Moreover, developing 

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new services, for example in the area of open innovation, could bring future opportunities for North-
Middle Sweden.  

Table 1: Strengths, weaknesses, opportunities, and threats of industrial transition  

Strengths 

Opportunities 

•  North-Middle  Sweden 

is  strategically 
focused 
in  Triple-helix  collaboration 
(including  clusters)  and  all  the  priority 
areas  of  the  regional  innovation  smart 
specialisation strategies (RIS3) are linked 
to cluster initiatives.  

•  Well-developed 

innovation 

support 

• 

infrastructure.  
The Academy for Smart Specialisation to 
broaden 
(a 
flagship project for S3).   

capabilities 

innovation 

•  Positive  experiences  from  public  private 
partnership  (PPP)  in  low-carbon  and 
circular economy initiatives.   

•  Relatively 

strong 

support 

for 
entrepreneurship  among  young  people 
and  students  at  higher  education 
institutions (HEIs).  
Strong  focus  on  gender-equal  regional 
growth’.  

Weaknesses  

Skills  mismatch 
vocational 
workforce. 

(e.g. 

inefficiency 
and 

in 
lack  of 

training) 

•  Relatively  ‘closed’  innovation  processes 
in  small  and  medium-sized  enterprises 
(SMEs).  

•  Cluster  participants  not  able  to  capture 
innovation  and 
from 

‘value-added’ 
internationalisation. 

•  Difficulties  in  scaling-up  demo  and  test 
cases (e.g. collaborative leadership). 

•  Weak SME access to testbeds. 
• 

Lack  of  residential  attractiveness  for 
talented (international) individuals.  

•  Weak  entrepreneurial  perspective 

in 

education.  

•  High youth unemployment.  
•  Gender imbalance in certain sectors.   

• 

• 

• 

• 
• 

• 

• 

• 

• 

Focused  efforts  to  improve  digital  and 
automation skills in smaller companies. 
Further development of open innovation 
platforms and incubators. 

•  Adding  service  competence  at 

the 

• 

testbeds. 
Inclusion  of  civil  society  in  innovation 
processes. 

•  Adapting existing regulations to leverage 
for 

tool 

public  procurement  as  a 
innovation.  
Leveraging  connections  with  resident 
MNEs  to  extend  collaboration  beyond 
North-Middle Sweden.   
Leveraging bioeconomy.  
Stronger  focus  on  talent  attraction  (e.g. 
immigrants and refugees).  

Threats  

Lack  of  experimentation  with  new 
instruments/policy approaches related to 
regional labour market.   
The  Academy  for  Smart  Specialisation 
does  not  extend/disseminate  to  whole 
North-Middle Sweden.  

• 

• 

lack 

financial 

long-term 

sustainable 

large  company 

•  Clusters 
models.  
Lack  of 
commitment.  
Insufficient awareness and competences 
to  manage  trade-offs  (e.g.  balanced 
implementation  of  targets  related  to 
circular 
innovative 
entrepreneurship). 

economy 

and 

•  Rigidity  among  key  stakeholders 

in 
regional  innovation  ecosystem  prevent 
resilience.  
Insufficient  competences  in  workforce 
may  result  in  companies  leaving  North-
Middle Sweden. 

• 

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Source: Enhanced Strategy for Economic Transformation based on Smart Specialisation - Analysis prepared for 
Region of North-Middle Sweden (internal report prepared by Emily Wise, Lund University) 

PEST  and  SWOT  analyses  for  the  region,  in  addition  to  a  policy  review  meeting  with  North-Middle 
Sweden’s regional authorities and clusters, revealed four broader categories of policy challenges to be 
addressed in North-Middle Sweden’s regional development.   

Improve conditions for inter-regional integration and collaboration;  

1. 
2.  Generate innovation (including technological and entrepreneurial) capabilities;  
3.  Strengthen resources and structures for clusters; and  
4.  Generate opportunities for North-Middle Sweden’s innovation ecosystem.  

These challenges are addressed in designing policy recommendations and interventions for industrial 
transition in North-Middle Sweden in Chapter 3. For further description of how these challenges were 
formed in policy review meeting see Annex B. 

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3.  Proposed regional strategy to 

address the challenges 

Two of the three North-Middle Sweden regions, namely Värmland and Dalarna, have gone through an 
organisational  change  in  regional  governance  since  the  beginning  of  2019.  In  both  regions,  a  new 
governing  organisation  was  set  up  which  merged  the  County  Council  and  the  federation  of 
municipalities. In Värmland, two local traffic companies (Värmlandstrafik and Karlstadsbuss) were also 
merged with the new organisation. This recent change will affect regional governance in the near future. 
A new cluster strategy is in preparation in the Värmland region for 2019. 

In parallel to work on regional innovation and cluster strategy, North-Middle Sweden has launched a 
new smart specialisation project which aims to integrate regional innovation systems into one (referred 
to in this policy brief by the acronym SSNMS II4). This work started at the beginning of 2019 and is being 
handled  by  the  Dalarna  Region.  The  main  focus  is  to  increase  the  extent  and  effect  of  research  and 
innovation among SMEs in North-Middle Sweden, and to stimulate information, skills and resource flows 
that contribute to better realisation of innovation in the innovation system. This coordination project 
is  in  great  synergy  with  policy  recommendations  highlighted  in  this  policy  brief.  Due  to  the 
overlap, some of the suggested actions are already under way and funding has been secured. This 
has made it possible to prioritise and focus on selected actions within this policy brief.   

Because of the background and on-going initiatives on innovation system integration, discussion in the 
policy review meeting mainly focused on how to improve the integration of the three regions in North-
Middle  Sweden  and  how  best  to  take  advantage  of  industrial  transition  and  smart  specialisation. 
Participants in the policy review meeting formulated the following vision for North-Middle Sweden:  

“By 2030 the industrial region of North-Middle Sweden will excel as a unique innovation ecosystem in 
attracting global talents, business players and capital, building upon smart specialization.” 

Based on the discussions with stakeholders, the aim of the regional strategy is to create an innovation 
ecosystem approach which relies on strong integration/collaboration of structures, functions and 
governance. As the assessment report  showed, North-Middle Sweden has strong clusters and RIS in 
which structural components are thriving and most of the functions perform well. However, with better 
integration  of  central  structures  and  functions,  North-Middle  Sweden  could  upgrade  its  regional 
innovation  activities.  Therefore,  we  suggest  adopting  an  innovation  ecosystem  approach,  which 
emphasises, for instance, common value creation, openness, trust and co-creation.  

The regional strategy encompasses four critical elements:  

1.  activities  related  to  alignment  of  region-  specific  priorities  to  enhance  inter-regional 

collaboration; 

2.  stronger  role  of  technology  in  incumbent  companies  and  on  the  part  of  technology 

operators, and better conditions for innovation-based start-ups;  

3.  upgraded inter-regional clusters in regional development; and  

4 Smart specialisation in North-Middle Sweden II 

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4.  more  international  connections  at  all  levels  of  the  ecosystem,  in  both  inward  and 

outward internationalisation.  

Figure 6 illustrates a process of how the regional challenges identified are addressed in this report to 
achieve short-term outcomes and long-term impact.  

Figure 6: Overview of the regional industrial modernisation strategy in North-Middle Sweden 

To embed the proposed ecosystem in the different layers of integration of North-Middle Sweden, both 
intra- and inter-region, we have selected the three functions that are addressed in the context of this 
project to improve openness, co-creation and common value creation. These functions relate to:  

1) Integration and coordination   

For North-Middle Sweden to develop in terms of industrial modernisation, the most essential challenge 
to  solve  is  generating  collaboration  conditions  that  integrate  the  three  regions  more  closely.  Better 
integration  is  the  most  vital  issue  to  solve,  given  that  many  of  the  other  challenges  identified  in  the 
region are related to, and partly dependent on, seeing North-Middle Sweden as a coherent region with 
common priorities, legitimacy and identity. This challenge provides a starting point for regional strategy.  

2) Technological and innovation knowledge development  

innovation  ecosystem 

robust 
An 
experimentation activities and strong governance are necessary on the part of business (start-ups, SMEs, 
large  companies)  to  cover  the  whole  innovation  process  from  science  to  commercialisation.  As  the 

requires  strong  RD&I  competences,  but  simultaneously 

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ActionGenerate an innovation ecosystem approach•Integration and coordination•Technological and innovation knowledge development •InternationalisationRegional challenges to address•Improve conditions for inter-regional integration and collaboration. •Generate innovation (incl. technological and entrepreneurial) capabilities. •Strengthen resources and structures for clusters.•Generate opportunities for the NMS innovation ecosystem. SolutionTo create an innovation ecosystem approach which relies on strong integration/ collaboration of structures, functions and governance. Key problemInsufficient intra-regional integration and cooperation ImpactIncreased global exploitation of NMS innovation ecosystemResults•NMS has an integrated decision-making  process (via ecosystem meta-structure)•NMS produces (technologically advanced) innovations in tighter industry-academia collaboration•NMS clusters operate in an open and co-creative ecosystem way•NMS is a proactive player in global value networks in selected priority areasSource: EOCIC 
 
assessment report for North-Middle Sweden revealed, the region has innovation system components 
and functions well in place, but they lack refinement and integration. For instance, several good practices 
have been identified that are waiting for replication in the whole, or parts of, the region.   

3) Internationalisation 

By developing  greater  cross-border connections and partnerships, innovation ecosystems are able to 
connect  with  global  value  networks,  in  which  tangible  and  intangible  flows  of  resources  (people, 
technology, knowledge etc.) are moving both inward and outward. Internationalisation  is an inherent 
component  of  ecosystems  (and  clusters),  which  needs  therefore  to  be  spread  to  all  levels,  from 
individuals and labour to the whole innovation ecosystem and regional governance. In general, stronger 
international connections are seen to offer future opportunities for North-Middle Sweden.  

Clusters are one of the main actors in the regional innovation ecosystem. Therefore, a broader system 
cannot be separated from the discussion of developing clusters. Clusters have an especially strong role 
in regional development in North-Middle Sweden. Thus, it was agreed in the policy review meeting that 
this  policy  brief  should  embrace  a  firm  cluster  perspective  to  help  regional  authorities  and  cluster 
managers exploit the industrial transition process. Recommendations and policy interventions are thus 
discussed from the perspectives of both the regional innovation ecosystem (regional authorities) and 
clusters in Chapter 4, and a set of policy recommendations and actions is therefore be formulated for 
these  two  actor  groups  to  support  short-term  regional  decision  making  in  North-Middle  Sweden  in 
particular, but also with a view to the long term.  

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4.  Specific recommendations for 

policy intervention  

Discussions  in  the  policy  review  meeting  focused  on  how  to  generate  and  upgrade  conditions  for 
collaboration  in  North-Middle  Sweden.  To  succeed,  there  is  a  need  for  better  alignment  of  regional 
strategies and priorities in order to integrate decision-making processes and better streamline North-
Middle Sweden innovation activities.  

To better foster conditions for collaboration, we propose adoption of an innovation ecosystem 
approach  which  leads  to  a  more  integrated  way  of  working  in  different  functions  of  the 
innovation  ecosystem.  The  ecosystem  approach  focuses  on  the  interactions  between  the  elements 
within the ecosystem, and emphasises the dynamics of functions such as knowledge creation, diffusion 
and absorption within a large community of stakeholders5.  

For an ecosystem to operate, a shared logic, or goal, is an essential element as it enables differing actors 
to co-exist with minimal friction regardless of their conflicting logics6. Mutual trust builds on norms of 
openness  and  professionalism.  Technological  and  knowledge  interdependencies  between  actors  are 
another key element of innovation ecosystems. The emphasis here is on multi-disciplinary and cross-
sectoral  collaboration  to  identify  special  competences  and  capabilities  to  excel  in  synergistic  and 
cumulative  interaction  between  ecosystem  actors.  Specialisation  and  complementarity  of  actors’ 
capabilities and competences is the substance from which the value is potentially co-created7. 

Ecosystems are not static but dynamic constellations in which value co-creation and value capture evolve 
in  the  course  of  the  ecosystem  life  cycle  as  do  actors’  competences  and  capabilities.  Therefore, 
ecosystem functions should change in parallel to alternating ecosystems.   

For regional authorities, innovation ecosystem thinking facilitates the design of functions from a value 
creation  perspective.  In  addition,  they  are  potentially  able  to  adopt  an  experimental  policy-making 
approach for quick pilots and learning, given the dynamisms and resilience of ecosystem functions.  

Clusters,  in  turn,  should  focus  on  strengthening  the  innovation  ecosystem  approach,  such  as 
formulating  shared  vision  and  value  co-creation  statements,  and  ecosystem  services,  e.g.  an 
internationalisation strategy and open (and co-creation) innovation services. A recent evaluation 
of  North-Middle  Sweden  clusters8 reveals  room  for  improvement,  for  example  in  developing  value-
added for companies, although the innovation work in clusters was valued highly. Furthermore, the role 
of clusters as a regional development tool needs strengthening, which means clusters could be given 
more autonomy to implement regional development policies and plans related to smart specialisation 
and facilitating open and co-creative industrial transformation in North-Middle Sweden.   

5 Romano, A. et al., 2014. The innovation ecosystem as booster for the innovative entrepreneurship in the smart 
specialisation strategy. International Journal of Knowledge-Based Development, Vol. 5 (3), 271-288. 
6 Thomas, L.D.W. & Autio, E., 2014. The fifth facet: The ecosystem as an organizational field. Paper presented at the 
DRUID Society Conference 2014, CBS, Copenhagen, June 16-18. 
7 Adner, R. & Kapoor, R., 2010. Value creation in innovation ecosystems: How the structure of technological 
interdependence affects firm performance in new technology generations. Strategic Management Journal, Vol. 
31(3), 306-333. 
8 Oxford Research, 2017. Analys av kluster i Norra Mellansverige, Februari 2017. Rapport för projektet Smart 
Specialisering – Starka företag i Norra Mellansverige.  

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Figure  7  illustrates  an  action  roadmap 9 for  creating  and  embedding  such  an  innovation  ecosystem 
approach in the three selected strategic functions, namely integration and coordination, technological 
and  innovation  knowledge  development,  and  internationalisation.  These  three  functions,  or 
processes, were selected as they reflect best the policy challenges identified in North-Middle Sweden. 
These functions will be developed in more detail in the following sections. Actions and the division of 
responsibilities  are  proposed  in  three  phases  over  the  next  seven  years  to  implement  such  a 
comprehensive agenda in North-Middle Sweden, with responsibility further divided between regional 
authorities and clusters.  

The  first  phase,  in  2019,  would  consist  mostly  of  preparatory  actions,  such  as  evaluating  the  current 
situation, and identifying needs and gaps. These actions require immediate attention for the following 
phases to materialise. The following two phases occur at three-year intervals up to 2026, and they involve 
actions  that  are  more  related  to  implementation  and  launch  of  concrete  tools  and  mechanisms  for 
different innovation ecosystem functions. Evaluation and impact assessment are also emphasised in later 
phases in order to monitor ecosystem development and life cycle phases. It is envisioned that North-
Middle  Sweden  will  have  a  regionally  embedded  innovation  ecosystem  by  2026  with  the  region 
functioning as a test demonstrator for S3 and having strengthened its influence in the design of national 
RD&I and regional development programmes.   

The main challenge in embedding the innovation ecosystem approach in North-Middle Sweden 
is that transformation might progress more slowly than anticipated. The reasons for this may lie in 
regional  or  national  politics,  internal  regional  governance  and  coordination,  or  draining  of  funding 
sources for regional development. No major risks are envisaged given that the suggested change does 
not require major system alterations but is more related to cognitive models and process changes that 
are seen to materialise once collaboration between the three regions (at different levels) is intensified.    

9 Actions presented in the action roadmap have been prioritised and verified with regional authorities (Värmland 
and Gävleborg) from 51 actions originally created for North-Middle Sweden. Verification of actions was carried 
out in February 2019.   

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Figure 7: Action plan for creating an innovation ecosystem approach in North-Middle Sweden 

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Integration and coordinationTechnology and innovationknowledge development Internationalisation•Set up a working group with the regional authorities to upgrade NMS S3 and create coordinated implementation process •Mobilise ESIF to implement S3 priorities in NMS •Increase marketing and communication in promoting innovation ecosystem functions (/services)•Identify international benchmark regions •Set up (inward-outward) internationalisation priorities for NMSInnovation ecosystem approach regionally embedded •Establish a regional coordination authority for NMS (e.g. virtual) •Share decision-making about ERDF programmeswith regions•Engage new city neighbourhoodsas demo arenas for NMS cooperationPhase 42026->•Revise and set up innovation support services for mid-sized firms •Evaluate technological and innovation competences and identify gaps •Map process mature companies •Assess cluster ecosystem services in addition to internationalisation•Revise clusters’ viability (ecosystem life-cycle) •Assess clusters’ potential for intra-region (NMS) extensionCLUSTERSREGIONAL AUTHORITIES •Expand innovation platform (collaboration and co-creation for sharing solutions)•Design measures to increase number of process mature companies•Implement measures of responsible regional development •Design tools (e.g. co-creation) that facilitate developing NMS wide innovation capabilities•Design process where researchers and companies do joint FP applications•Set up incentives for regional actors to utilize funding schemes for RD&I that require intra-region (NMS) and cross-border collaboration •Increase cluster companies’ involvement in EU framework projects (include interregional approach) •Seek additional funding mechanisms to increase cross-border R&D&I•Develop and implement peer-learning tools for internationalisation(for companies and clusters)Phase 22020-2022Phase 32023-2025Phase 12019•Initiate international talent attraction agenda•Involve the top management of MNEs and regional commissioners (politicians) in cluster and S3 development•Integrate technological environment (test beds) to better support innovation•Design support for companies low in process maturity and offer concrete tools  (e.g. white-and blue-collar levels) to facilitate peer-learning•Expand expertise of low process mature companies to  Dalarna and Gävleborg•Engage in RD&I that requires intra-region (NMS) and cross-border collaboration•Evaluate engagement in cross-borderR&D&I  •Revise cluster structures (new tech and innovation combinations) •Develop talent attraction platform and tool box (engage companies and public services)•Increase collaboration with neighbouringregions (Norway, East Middle Sweden & strategic EU regions) •NMS as a test demonstrator for S3•NMS produces (technologically advanced) innovations in tighter industry-academia collaborationCLUSTERSREGIONAL AUTHORITIES CLUSTERSREGIONAL AUTHORITIES •NMS has an integrated decision-making  process (via ecosystem meta-structure)•NMS has increased synergies with and influences design of national programmes•NMS clusters operate in an open and co-creative  ecosystem way•NMS is a proactive player in global value networks in selected priority areasSource: EOCIC 
4.1. 

Integration and coordination function  

4.1.1.  Description  

One of the most important functions of any system is governance. This coordinates the activities of all 
actors  involved.  In  non-platform-based  ecosystems,  governance  relies  more  on  leadership  than 
ecosystem management. In the case of North-Middle Sweden’s innovation system, the main component 
of governance is the integration and coordination across the three regions of Värmland, Dalarna and 
Gävleborg.  Intensifying  collaboration  among  regional  authorities  is  a  prerequisite  for  an  innovation 
ecosystem  approach  to  be  implemented  and  accepted  in  North-Middle  Sweden,  and  their  role  is 
reflected in the large number of actions designed for them compared to clusters. Because of the systemic 
and complex nature of implementation of an ecosystem agenda, which evidently creates a large volume 
of parallel actions, actions were prioritised together in consultation with the regional authorities. Only 
the most important actions from the whole action roadmap are presented in this policy brief. Figure 8 
introduces 10 selected actions to achieve better integration and coordination in North-Middle Sweden’s 
innovation ecosystem. Many of the actions are performed in conjunction with another, often ongoing, 
project, or they are initiated in another context.   

Figure 8: Prioritised actions for integration and coordination function 

The  first  steps  in  2019  for  regional  authorities  relate  to  the  assessment  of  the  current  situation  and 
initiation of actions, which, according to the regional authorities, are mostly under way. One of the key 
actions,  Action  1,  is  to  launch  a  working  group  to  steer  the  proposed  action  plan  forward.  The  main 
initiators of this integration process are the three regional authorities in North-Middle Sweden and they 
are  also  a  key  enabler  for  a  working  group  to  achieve  meaningful  results.  Although  North-Middle 
Sweden’s regions have a long-term collaboration relationship, there has not been enough coordination 
and strategic planning of North-Middle Sweden priorities. The working group has to some extent been 
initiated within the  project preparations and agenda-setting for  smart  specialisation in  North-Middle 
Sweden. Coordination of the process and creation of a document connecting the three S3 strategies will 
help prioritise actions for implementation even further. The next task in Spring 2019 is Action 2, which 

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Phase 42026->Phase 22020-2022Phase 32023-2025Phase 12019REGIONAL AUTHORITIES CLUSTERS* on-going or initiated action Action 1: Set up a working group with the regional authorities to upgrade NMS S3 and create coordinated implementation process*Action 2: Mobilise ESIF to implement S3 priorities in NMS*Action 5: Establish a regional coordination authority for NMS (e.g. virtual)*Action 6:Share decision-making about ERDF programmeswith regions*Action 7: Engage new city neighbourhoodsas demo arenas for NMS cooperation*Action 9:Set up incentives for regional actors to utilize funding schemes for RD&I that require intra-region (NMS) and cross-border collaboration Action 3: Revise clusters’ viability (ecosystem life-cycle)*Action 4: Assess clusters’ potential for intra-region (NMS) extension*Action 8:Increase cluster companies’ involvement in EU framework projects (include interregional approach)*Action 10:Engage in RD&I that require intra-region (NMS) and cross-border collaborationSource: EOCIC 
 
deals with development of an industry strategy for North-Middle Sweden. This is closely linked to the 
EOCIC and industrial transition projects and should mobilise European structural and investment funds 
(ESIF) for its implementation. 

Two main actions in 2019 for clusters relate to assessing pre-conditions for excellence and complying 
with their envisaged role as central innovation ecosystem actors in integrating the regions. It is positive  
that both the actions, namely: Action 3) revising clusters’ viability (ecosystem life cycle) and Action 4) 
assessing clusters’ potential for intra-regional extension, are to some extent already under way in the 
region. The former requires, for example, implementing a cluster survey (following a tested SLIM project-
based methodology10); the latter requires external consultancy. Some clusters have performed such an 
assessment  (including  national  level  scanning  of  potential  cooperation  partnerships)  that  provides  a 
methodological  benchmark  for  other  clusters  to  replicate.  Paper  Province  cluster  is  one  these 
forerunners. The two cluster-related actions could potentially feed and update clusters’ strategy work. It 
would be beneficial to perform this simultaneously with S3 work.  

In the following phase, 2020-2022, four actions, of which three are the responsibility of regional 
authorities,  are seen as important. All these actions rely on work that has been started in different 
contexts.  Given  the  recognised  importance  of  strengthening  collaboration  in  North-Middle  Sweden, 
setting up a coordination authority for North-Middle Sweden is high on the region’s agenda. Two on-
going cooperation projects, namely SSNMS II and Smart Industry North-Middle Sweden 2, will facilitate 
the founding of a more formal structure for collaboration and coordination among the three regions. 
These projects have, for instance, a common steering group, but further work is required to establish 
coordination among regional development agencies (Action 5). One area to modify within the next four 
years  is  to  move  closer  to  the  EU  model  in  European  Regional  Development  Fund  (ERDF)  decision-
making (Action 6). This would transfer decision-making to the regions as the current Swedish model is 
seen as inefficient in producing regional growth11.  For this to happen, dialogue between Sweden and 
the EC should be strengthened with existing resources.  The new neighbourhoods to be built as demo 
arenas  for  piloting  cross-region  collaboration  (Action  7)  are  another  area  where  experimentation  of 
integration is possible. 

Cluster  competitiveness  and  internationalisation  can  both  be  enhanced  by  their  participation  in 
international  EU-funded  projects.  To  increase  cluster  member  companies’  involvement  in  EU 
framework  projects  by  2022  (Action  8),  a  support  programme  is  needed  to  allow  clusters  to 
recruit, for instance, grant advisors. This position could be a part-time and funding can be sought 
from the ERDF or national sources.  

Actions to be taken within the following seven years have not yet been developed as concretely 
as  earlier  actions  for  helping  to  embed  an  innovation  ecosystem  approach  in  North-Middle  Sweden. 
However, two important actions have been identified. One falls within the responsibility of clusters; the 
other is for regional authorities. Engaging clusters in RD&I that requires intra-regional and cross-border 
collaboration  should  be  included  in  support  programmes  designed  to  increase  involvement  in  EU 
projects  and  the  costs  could  be  incorporated  (Action  9).  To  foster  intra-regional  and  international 
collaboration in North-Middle Sweden, new incentives are needed for regional actors to utilise funding 
schemes. To implement this action, ERDF calls will be utilised. Regional authorities can decide on these 
within their operational budget (Action 10). In addition, a discussion paper is needed defining priorities 

10 Bjurulf, S. & Vedung, E., A theory-based Triangulation Approach to Impact evaluation: The MCET Method 
Revised, SLIM-Rapport, 19, 2013.  
11 Since 1 January 2019 a thematic organisation for regional development has been in place that allows national 
level policy makers to cooperate more closely with the regions. 

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for  S3  and  the  entrepreneurial  discovery  process  (EDP)  to  find  partners  and  alliances  to  implement 
projects.  

4.1.2.  Benefits and Costs  

One of the main benefits of integrating regional decision-making functions is that it allows North-
Middle  Sweden  to  streamline  innovation  activities  by  cutting  out  duplicate  work.  The  actions 
selected  naturally  aim  to  improve  the  current  situation  in  North-Middle  Sweden  and  therefore  many 
benefits are envisaged. The benefits are summarised below in conjunction with estimated costs. Given 
that  many  activities  are  ongoing, costs  are allocated  to different budgets.  Table  2 extracts  estimated 
monetary costs and funding sources for each of the prioritised actions. In cases where it was difficult to 
estimate monetary costs, the amount of work required is given.  

The overall benefits for current intra-regional clusters are seen in  improved  collaboration in terms of 
identifying opportunities and extending activities to the whole North-Middle Sweden, whereas for inter-
regional clusters more streamlined collaboration offers scaling up benefits in terms of larger technology 
and innovation resources, and a larger skills pool. It is also envisaged that actions presented in this policy 
brief  would  give  more  autonomy  to  clusters  to  implement  regional  development  policies  and  plans 
related to smart specialisation. An innovation ecosystem type of operational logic would challenge and 
require clusters to act as regional development tools. 

Table 2: Benefits and costs for key actions in integration and coordination  

Actions 

Key recommendation 

Benefits 

Cost & funding   

- Increased information 
flow  

- Stronger North-Middle 
Sweden level leadership 

- Integrated regional plans 
and schemes 

Set up a working group 
with the regional 
authorities to upgrade 
North-Middle Sweden 
S3 and coordinate 
implementation process 

Mobilise ESIF to 
implement S3 priorities 
in North-Middle Sweden 

- Boost to North-Middle 
Sweden innovation 
collaboration  

EUR 100,000/6 months to 
continue integration process in 
Spring 2019, i.e. create an 
industry strategy for North-
Middle Sweden 

Funding (50%) is already 
available and needs to be 
allocated on a project basis (to 
be developed), 50% needs to be 
acquired from other sources 

Time devoted to writing the 
ERDF programme. Costs are in 
the budget already; no extra 
funding needed 

Revise clusters’ viability 
(ecosystem life cycle) 

- 
A 
application  

common 

ERDF 

Cost EUR 50,000 per region 
(EUR 150,000 in total) 

-  Updated  information  on 
clusters’ life cycle, strengths 
and weaknesses 

Funding foreseen from ERDF & 
national sources  

Assess clusters’ potential 
for intra-region (North-
Middle Sweden) 
extension 

New potential areas for 
business and cross-
fertilisation 

EUR 50,000 for professional 
research services 

1 

2 

3 

4 

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5 

6 

7 

8 

9 

Costs are within existing budget  

Establish a regional 
coordination authority 
for North-Middle 
Sweden (e.g. virtual 
body)  

- Better coordination of 
North-Middle Sweden 
activities 

- Improved information 
flow  

- Stronger cohesion, 
regional self-esteem, 
visibility, legitimacy   

Share decision making 
about ERDF programmes 
with regions 

Engage new city 
neighbourhoods as 
demo arenas for North-
Middle Sweden 
cooperation 

- Increased autonomy for 
regions for regional 
development and growth  

Intensification of dialogue can 
be performed with current 
resources  

- Better inclusion of 
clusters in regional 
development process 

- Dissemination of good 
practices throughout 
North-Middle Sweden 

- Wide inclusion of civil 
society (e.g. NGOs, citizens) 
and companies 

Increase cluster 
companies’ involvement 
in EU framework projects 
(include interregional 
approach) 

Set up incentives for 
regional actors to utilise 
funding schemes for 
RD&I that require intra-
region (North-Middle 
Sweden) and cross-
border collaboration 

- Improved competence in 
grant writing  

- increased involvement in 
EU and international 
networks  

- Increased involvement in 
European-wide 
collaboration via calls 
within component 5 in the 
next programming period  

- Being more active in S3 
platforms, also in relation 
to the Vanguard Initiative 
(q.v.) 

Cost EUR 50 000/cluster with 
expected rapid payback time if 
participation in EU projects 
increases 

Costs relate to producing a 
revised discussion paper, e.g. 
travel costs for meeting the 
relevant regional actors, to 
point out the funding 
opportunities and mechanisms  

10 

Engage in RD&I that 
requires intra-region 
(North-Middle Sweden) 
and cross-border 
collaboration 

- Wider innovation 
collaboration networks, 
within North-Middle 
Sweden and internationally 

Costs can be included in Action 
8, as actions relate to clusters’ 
participation in EC Framework 
Programme projects  

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4.1.3.  Risks, obstacles and challenges  

The need for integration and coordination of North-Middle Sweden’s innovation related activities 
have been acknowledged by the region and actions to improve the situation are being launched 
independently  of  this  project.  Given  such  a  high  priority  in  the  region,  the  policy  interventions 
suggested are complementary to on-going work that improves the chances of achieving the objectives 
of embedding an innovation ecosystem approach. A potential challenge is the fact that integration might 
not  proceed  at  the  envisaged  pace  due  to  regional  differences  and  governance  models.  Additional 
emphasis  should  be  placed  on  assessing  the  impacts  of  actions  beyond  mere  monitoring  of  actions 
which all have easily observable outputs. The process for achieving tighter integration in North-Middle 
Sweden has, however already been set in motion, and this will facilitate the progress of other functions 
too.   

4.2.  Technological and innovation knowledge development 

function 

4.2.1.  Description  

innovation  knowledge  base.  They  also 

Technological  and  innovation  knowledge  development  functions  are  a  central  process  of  an 
innovation  ecosystem,  providing  an 
incorporate 
business/entrepreneurial  experimentation  processes  on  how  to  face  uncertainty.  In  addition,  an 
ecosystem  without  a  vibrant  experimentation  space  and  openness  will  eventually  stagnate.  For  this 
reason,  four  of  the  challenges  identified  in  North-Middle  Sweden,  i.e.  strengthening  the  role  of 
technology operators in the innovation ecosystem, creating growth through innovation-based start-ups, 
improving  innovation  capabilities  in  existing  companies,  and  finally  integrating  clusters  into  an 
innovation  platform  mode  of  operation  are  incorporated  under  the  technological  and  innovation 
knowledge development function.  

In total 13 actions (Figure 9) have been identified to improve technological and innovation knowledge 
development  in  the  envisaged  North-Middle  Sweden  innovation  ecosystem.  Most  of  the  actions  lie 
within  the  responsibility  of  clusters  and  are  scheduled  to  be  implemented  within  the  next  five  years. 
Furthermore,  several  of  the  prioritised  actions  relate  to  existing  practices  which  require  expansion  to 
other regions, thus benefiting from local benchmarks.     

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Figure 9: Prioritised actions for technological and innovation development function 

In  2019,  the  responsibility  of  regional  authorities  is  to  take  action  to  increase  marketing  and 
communication promoting the regional innovation ecosystem (Action 1). This promotion has started but 
should  involve also  clusters’  S3 work and  the Vinnväxt  programme, which offers funding  for  clusters. 
Furthermore, different arenas for reaching companies (national, EU, international) should be included.  

In the first phase, the actions mainly require clusters to evaluate and assess their current services and 
competences  in  technology  and  knowledge  development.  For  revising  and  setting  up  innovation 
support  services  for  mid-sized  firms  (Action  2)  and  evaluating  technological  and  innovation 
competences (Action 3), the Värmland based cluster IUC (Steel & Engineering) offers such support which 
could be extended to other clusters as a good practice. This concept is called an industrial dynamics tool 
in which SMEs’ needs are mapped and connected to researchers mostly identified within the network of 
Research  Institutes  of  Sweden  (RISE)  and  local  universities  for  solutions.  This  tool  follows  a  TBN12-
analysis.  This  is  a  standardised  tool  for  detecting  development  needs  in  companies  and  is  designed 
primarily for evaluation of existing/mature companies for industrial transition. Another good aspect is 
that  this  analysis  takes  less  than  a  day  to  complete  and,  since  it  provides  standardised  information, 
results  can  be  registered  in  a  database.  The  IUC  network  has  a  national  database  that  provides 
knowledge at different levels, e.g. individual company, regional or national feedback. National feedback 
offers  information  on  the  needs  of  Swedish  SME  industry  as  a  whole.  To  detect  process  maturity  in 

12 From Swedish Tillväxt i Befintligt Näringsliv, which can be translated as Growth in Mature Companies. 

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Phase 42026->Phase 22020-2022Phase 32023-2025Phase 12019REGIONAL AUTHORITIES CLUSTERS* on-going or initiated action Action 1: Increase marketing and communication in promoting innovation ecosystem functions (/services)*Action 2:Revise and set up innovation support services for mid-sized firms*Action 3:Evaluate technological and innovation competences and identify gaps*Action 4: Map process mature companies* Action 13:Revise cluster structures (new tech and innovation combinations) Action 5:Expand innovation platform (collaboration and co-creation for sharing solutions)Action 6: Design measures to increase number of process mature companies*Action 7: Implement measures of responsible regional development Action 8:Design tools (e.g. co-creation) that facilitate developing NMS-wide innovation capabilities*Action 9: Design process where researchers and companies make joint framework programmeapplicationsAction 10:Integrate technological environment (test beds) to better support innovation Action 11:Design support for companies low in process maturity and offer concrete tools  (e.g. white-and blue-collar levels) to facilitate peer-learning*Action 12: Expand expertise of low process mature companies to  Dalarna and Gävleborg*Source: EOCIC 
 
                                                      
 
companies  (Action  4)  with  the  industrial  dynamics  tool,  a  new  component  is  currently  under 
development.  

Many of the next phase actions (from 2020-2022) also relate to improving cluster competences. This 
also needs to be carried out in close collaboration with regional authorities. For example, taking a better 
advantage of test beds (Action 10) should be implemented as part of projects to develop S3 and services 
to clusters (Actions 5, 6, 8, 9). This implementation also applies to profiling the regions and marketing 
actions  in  previous  phase.  Several  parallel  processes  are  envisaged,  such  as  cluster  development, 
profiling university-related services, and services provided by RISE. In Värmland there are test beds that 
are being used as arenas for cooperation between researchers and companies. Both their operational 
model and their reach should be duplicated (Action 10). Replication of test beds might potentially be 
hindered by different rules and regulations for acquisition of equipment in different regions, given that 
technologies,  machines  and  different  types  of  equipment  are  expensive  but  crucial  elements  of  tests 
beds. The ERDF or other funding sources have been used for acquisition of equipment so far. 

In following up actions related to integration and coordination functions, attention should be paid to 
measures  implementing  responsible  regional  development  (Action  7),  based  on  the  concept  of 
responsible research and innovation. This means the adoption of “a transparent, interactive process by 
which societal actors and innovators become mutually responsive to each other with a view to the (ethical) 
acceptability, sustainability and societal desirability of the innovation process and its marketable products” 
(von Schomberg, 2013:6313). 

Designing and offering support for transformation of companies’ processes (Action 11) is another action 
that demands strong collaboration between clusters and regional authorities. Certain training practices 
to  support  process  mature  companies  already  exist,  e.g.  a  Knowledge  Transfer  Programme,  in  which 
students develop projects for companies, and trainee programmes, staff training, lead engineer for the 
company and industrial doctorate programmes. In addition, research projects within the Academy for 
Smart Specialisation could be helpful here. Nevertheless, adoption of different practices depends on the 
companies’ absorption capacity.  

It is the responsibility of regional authorities to design new co-creation tools (Action 8), which could be 
of the open innovation platform type, or even internet-based. Some good practices have been identified, 
such as Experio Lab14. This is developing citizen-centric healthcare services. A network (coordinated by 
Värmland) of regions’ Experio labs is a good example of a competence group that could be a useful peer 
learning tool for all regions.  

Offering support for companies low in process maturity is one of the core development objectives in 
North-Middle Sweden to improve the region’s technological and innovation competences. Given that 
good practices exist locally, regional authorities and clusters can easily develop an offer for companies 
assuming that funding is provided. Gävleborg will, for example, replicate such good practices within its 
smart  region  project  that  is  improving  the  possibility  for  mutual  learning  and  expansion  (Action  12). 
Since many things happen at the same time, smart coordination and identification of adequate tools is 
required for smooth running of operations.   

The only action prioritised for period of 2023-2025 (Action 13) is the revision of cluster structures 
(new technological and innovation combinations). This should be carried out at the end of the period 
(i.e. starting 2025) to be give input to next programming period to start in 2027. This evaluation is the 

13 Von Schomberg, R. (2013). A Vision of Responsible Research and Innovation. In R. Owen, J. Bessant, and M. 
Heintz (Eds.), Responsible Innovation. London: John Wiley, 51–74. 
14 https://experiolab.se/#null (accessed 16.2.2109) 

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common responsibility of clusters and region. Often such a revision, e.g. a survey of the performance of 
existing clusters, is introduced by the region.   

4.2.2.  Benefits and Costs  

As indicated North-Middle Sweden’s regions have a variety of good practices which are awaiting 
replication to other regions, so that there is no great need for resources to design new actions from 
the  beginning.  Because  there  is  this  positive  starting  point  for  embedding  the  innovation  ecosystem 
approach in the region, cost estimates are also easier to make. Estimated costs required by each action 
are  presented  in  Error!  Reference  source  not  found.  in  addition  to  a  summary  of  the  envisaged 
benefits.  

Clusters,  and,  in  particular,  their  member  companies,  are  the  main  beneficiaries  of  the  function 
developing technology and innovation knowledge as new services for refining their innovation activities 
are offered. Following an innovation ecosystem construct, openness and co-creation are at the core of 
many  proposed  actions.  It  is  envisaged  that  these  processes  will  foster  knowledge,  technology  and 
innovation transfer to lead to novel knowledge combinations and technological complementarities.  

Table 3: Benefits and costs of key actions in technology and innovation knowledge development   

Actions 

Key recommendation 

Benefits  

Costs & funding   

1 

2 

3 

4 

5 

6 

Increase marketing and 
communication in promoting 
innovation ecosystem 
functions (/services) 

-Improved knowledge 
of innovation 
ecosystem services 
lead to legitimacy 

Budget cost estimates EUR 
400 000-500 000 per 
year/region 

Revise and set up innovation 
support services for mid-
sized firms 

- Improved assistance 
for companies  

EUR 100 000 per year/cluster for 
full time personnel and 
additional services 

Funding could be sought from 
ERDF programmes 

Evaluate technological and 
innovation competences and 
identify gaps   

- Informed knowledge 
of technological/ 
innovation 
competences residing 
in clusters 

Costs can be included in action 
2. Implementation of other 
mechanisms for industry-
university cooperation may 
accumulate extra costs  

Map process mature 
companies  

Costs can be included in action 
2  

- Awareness of the 
state of sectoral 
competitiveness and 
opportunities for 
improvement  

Expand innovation platform 
(collaboration and co-
creation for sharing 
solutions) – e.g. Gävleborg 

- Improved innovation 

processes and 
societal acceptability 
and legitimacy 

A coordinator and the actual 
cost of a specialisation platform 
is about EUR 400 000 per 
year/region. 

Design measures to increase 
number of process mature 
companies 

- Intensified 
knowledge transfer  

- Enhanced 
professional training  

200 000-1 000 000 

EUR 
year/region  

per 

28 | P a g e  

 
 
 
Implement measures of 
responsible regional 
development (next ESF 
programming period starting 
in 2020)   

- Inclusive and 
transparent regional 
development 
programmes (open to 
citizens and other 
stakeholders)  

Resources in house (analysts) 

Need to buy some software or 
consultancy services 

Costs EUR 50 000-100 000 per 
year/ region 

7 

8 

9 

Design tools (e.g. co-
creation) that facilitate 
development of North-
Middle Sweden-wide 
innovation capabilities 

Design process where 
researchers and companies 
make joint Framework 
Programme applications 

10 

Integrate technological 
environment (test beds) to 
better support innovation  

Design support for 
companies low in process 
maturity and offering 
concrete tools (e.g. to white- 
and blue-collar levels) to 
facilitate peer learning  

Expand expertise of low 
process mature companies to 
Dalarna and Gävleborg 

Revise cluster structures (new 
technological and innovation 
combinations) 

11 

12 

13 

- Intensified peer-to-
peer learning  

Costs EUR 50 000 per year/ 
region for professional support 

- Enhanced industry-
academia 
collaboration 

- Joint development of 
advanced solutions at 
low cost 

- Enhanced 
internationalisation 

- Informed knowledge 
of potential links and 
use of North-Middle 
Sweden test beds 

- Development 
potential for 
internationalisation 
through test beds 

- Good practices 
disseminated in 
North-Middle Sweden 

No need for individual budget 

Costs could be integrated in the 
budget of grant writers, i.e. 
EUR 50 000/cluster, as action is 
strongly related to cluster 
capacity building  

Cost estimate for the profiling of 
technological environment is 
EUR 50 000 for North-Middle 
Sweden to be distributed within 
different projects  

Equipment costs for test beds 
are high, e.g. 3D printer cost 
EUR 500 000 and in test bed on 
barriers for packaging machine 
costs are up to EUR 1 000 000  

No  need  for  a  major  effort  to 
transfer  methodology  among 
the regions, but some effort has 
to be made for dissemination 

Costs  EUR  100 000  for  North-
Middle Sweden for coordination 
and training among clusters 

Tools  could  be 
different projects 

financed  by 

See action 11 

See action 11 

- Identification of 
novel multidisciplinary 
combinations of 
innovation  

Cost estimate for a consulting 
service is EUR 50 000 

29 | P a g e  

 
 
 
 
 
 
 
 
4.2.3.  Risks, obstacles and challenges  

Given  that  many  activities  are  already  ongoing,  designing  from  scratch  is  avoided  and  the  potential 
replication  process  becomes  easier.  While  lessons  can  be  learned,  and  potential  barriers  are  known, 
major challenges can be prevented. 

The main challenge foreseen to implement the actions in this function relate to potentially insufficient 
communication among the actors involved. As the actions are supposed to run in tandem with a process 
of tightening cooperation among the regions, transparency in the communication process with many 
feedback loops and joint visioning of desirable future/s should be a mutual and everyday exercise.  

30 | P a g e  

 
 
 
4.3. 

Internationalisation function 

4.3.1.  Description  

The selected function of internationalisation, in its many forms, is an inherent component of an 
innovation ecosystem by extending markets for RD&I competences and perspectives for market 
formation, and resource mobilisation, as well as helping to achieve legitimisation and recognition. 
Due to its crosscutting and horizontal nature, internationalisation was one of the main topics discussed 
in the policy review meeting and is hence prioritised in this policy brief. The internationalisation function 
involves the following regional challenges: widening the clusters’ funding base and stimulating cluster 
policy with new concepts and ideas. Overall,  increased  internationalisation  in  the  functioning  of  the 
innovation ecosystem will translate into better competitiveness and growth of companies.  

In total 10 actions are prioritised to improve internationalisation in embedding an innovation ecosystem 
approach in North-Middle Sweden (Figure 10). These actions are fairly equally distributed in the seven-
year action roadmap, and between clusters and regional authorities.   

Figure 10:  Prioritised actions for internationalisation function 

In order to get the internationalisation agenda running in North-Middle Sweden’s innovation ecosystem, 
regional authorities need first to identify international benchmark regions (Action 1) and also set up a 
comprehensive internationalisation strategy for the region (Action 2). Steps towards completion of the 
former will be initiated in SSNMS II project. Moreover, the industrial transition project has established a 
light  benchmark,  but  firmer  sector-specific  analysis  is  needed.  To  provide  a  focus  in  regional 
internationalisation,  the  governance  system  requires  equal  attention  that  can  be  facilitated  by  peer 
learning among EU regions.   

31 | P a g e  

Phase 42026->Phase 22020-2022Phase 32023-2025Phase 12019REGIONAL AUTHORITIES CLUSTERS* on-going or initiated action Action 1:Identify international benchmark regions Action 2:Set up (inward-outward) internationalisation priorities for NMS*Action 4:Initiate international talent  attraction and retention agenda*Action 5:Involve the top management of multinational enterprises (MNEs) and regional commissioners (politicians) in cluster and S3 developmentAction 8:Increase collaboration with neighbouringregions (Norway, East Middle Sweden & strategic EU regions) Action 9:Develop talent attraction platform and tool box (engage companies and public services)Action 3:Assess clusters’ ecosystem services in addition to internationalisationAction 6:Seek additional funding mechanisms to increase cross-border RD&I *Action 7: Develop and implement peer-learning tools for internationalisation(for companies and clusters)Action 10:Evaluate engagement in cross-borderRD&I Source: EOCIC 
 
 
 
Identifying  an  internationalisation  strategy  for  North-Middle  Sweden  should  help  decision-
making and priority setting. This strategy work, which highlights both inward and outward flows, could 
be  incorporated  in  the  Vanguard  Pilot  Initiative  and  European  Strategy  Forum  on  Research 
Infrastructures  (ESFRI)  platforms,  and  supported  by  the  regional  (North-Middle  Sweden)  EU  office  in 
Brussels. The regional office can coordinate and facilitate the participation of different regional offices 
in the pilots. However, a division of labour between the Värmland and Central Sweden Office (Dalarna 
and Gävleborg) is needed. These two regions could work on harsh environments (Vanguard Initiative 
Project), for instance. However, for the Brussels office to actively support the internationalisation strategy 
for  North-Middle  Sweden  (e.g.  secure  funding),  it  must  be  given  a  clear  mandate  on  the  work  to  be 
carried out. 

Action  3,  assessing  clusters’  ecosystem  services,  which  is  prioritised  for  2019,  relates  strongly  to 
development of the internationalisation strategy. One potential option for arranging the services is to 
create a ‘meta cluster’ applicable to a broader geography when considering “spreading” the clusters (e.g. 
IUC,  Triple Steelix or  Paper Province). This idea is  still in  an  early phase and requires further  concept 
development, and lessons from other regions of Europe.   

For  the  next  phase,  2020-2022,  regional  authorities  would  need  to  initiate  an  international  talent 
attraction  and  retention  agenda  (Action  4)  to  better  incorporate  inward  internationalisation.  Here 
Copenhagen  can  be  used  as  benchmark,  as  it  has  developed  various  good  practices 15 that  can  be 
replicated  in  North-Middle  Sweden.  As  a  local  example,  the  Triple  Steelix  cluster  has  been  working 
actively on talent attraction, e.g. it organises a summer school for international students to teach them 
about industry and ecosystems. In addition, engaging regional multinational companies  and regional 
commissioners  (politicians)  better  in  cluster  work  and  S3  strategies  is  seen  as  important  in  fostering 
internationalisation  in  North-Middle  Sweden.  It  is  worth  noting  that  a  lack  of  experts  is  a  common 
problem for many of the regions and countries more at the periphery of Europe. For example, Finland is 
facing  similar  problems  and  is  working  on  internationalisation  of  its  higher  education  and  research 
systems. Talent attraction and retention is one of the strategy’s priorities. This shows that these European 
regions may face competition even among themselves to attract and retain experts in the near future. 

To enhance cluster internationalisation two actions are prioritised for 2020-2022, namely searching for 
additional  funding  mechanisms  for  cross-border  RD&I  (Action  6)  and  developing  and  implementing 
peer-learning tools for internationalisation (Action 7). Building cross-border RD&I projects is challenging 
because of the current funding mechanisms’ applicability rules. For instance, national level policy makers 
are sceptical about  the  Interreg programme. Also, the collaboration with Norway is a bit  challenging 
because  the  budget  from  Norwegian  side  is  smaller  than  Sweden’s  and  a  support  program  should 
consider both countries as a full collaborative entity. There is a clear need to establish a dialogue with 
national  level  organisations  to  show  the  relevance  of  cross-border  partnerships.  The  imbalance  also 
applies to foreign investments in test beds. Peer-learning tools for internationalisation could be added 
in an upcoming North-Middle Sweden project.  

In the last phase of the action roadmap 2023-2025, regional authorities should intensify collaboration 
with neighbouring regions further (and also those overseas) (Action 8). This action could be included in 
the same upcoming project together with other actions. The next programming period (component 5) 
approaches  EU  level  collaboration  more  broadly  and  potentially  offers  the  means  to  address 
international collaboration more thoroughly. A second action for regional authorities is  the proposed 
development of a talent attraction platform and tool box (Action 9), to implement work initiated in the 
previous  phase.  Such  talent  attraction  tools  should  be  designed  in  close  collaboration  with  business 

15 See a benchmark study of immigrants in innovation economy, http://urn.fi/URN:ISBN:978-952-287-503-7 

32 | P a g e  

 
                                                      
organisations, municipalities, and research and higher education institutes is essential; therefore, strong 
involvement  of  the  clusters  is  required.  Tools  should  be  designed  for  both  technical  experts  and 
entrepreneurs.  A  local  benchmark  can  be  found  in  the  tourism  sector  in  Dalarna.  When  looking  for 
international  benchmarks,  Finland’s  Talent  Boost  programme 16 led  by  the  Ministry  of  Economy  and 
Employment can be an example. 

Given  that  it  is  suggested  that  many  new  actions  be  implemented  in  North-Middle  Sweden  and  its 
clusters, it is essential that evaluation of these projects be performed to pinpoint successes and barriers 
(Action 10). Evaluating cross-border RD&I should include, e.g. RISE’s cross-border activities, participation 
in EU framework projects, joint R&D by companies, and use of test beds, just to name a few.   

4.3.2.  Benefits and Costs  

internationalisation  strategy,  evaluation  and 

The benefits of internationalisation to clusters are seen to materialise in  a polished innovation 
ecosystem service portfolio for companies, such as formulating shared vision and value statements, 
impact  assessment,  regional  branding  and 
an 
communication,  and  open  (&  co-creation)  innovation  services.  By  including  actions  related  to 
internationalisation  in  embedding  the  innovation  ecosystem  in  North-Middle  Sweden,  regional 
authorities  are  better  informed  on  the  current  level  of  internationalisation  in  companies,  clusters, 
academia etc., and are able to design better policies to improve internationalisation in the region. See 
below for benefits and costs of key actions related to internationalisation.  

Costs  related  to  internationalisation  were  slightly  more  challenging  to  estimate  as  fewer  actions  are 
ongoing or have been initiated compared to the two previous functions.  

Table 4: Benefits and costs of key actions of internationalisation function 

Action 

Key recommendation 

Benefit 

Costs & funding 

1 

Identify international 
benchmark regions  

- Integrated in S3 areas 

- Improved intelligence for 
regional decision-making 

Cost is EUR 200 000 for 6 
regions in a 3-year project 

Foreseen funding source is 
EU Interreg programme 

2  

Set up (inward-outward) 
internationalisation priorities for 
North-Middle Sweden   

- Realisation of North-
Middle Sweden-wide 
internationalisation 
strategy  

Costs  about  EUR 10 000  per 
specialisation  area  in  North-
Middle Sweden 

Assess clusters’ ecosystem 
services in addition to 
internationalisation (e.g. 
evaluation and impact 
assessment, regional branding, 
communication, co-creation)  

Initiate international talent 
attraction agenda   

3 

4 

- Improved innovation 
ecosystem service 
portfolio 

Costs can be linked to Action 
2 (internationalisation 
strategy)  

- International talent 
function integrated in 
internationalisation of 
region 

Cost of implementing an 
international trainee 
programme 

16 https://tem.fi/en/talent-boost-en (accessed 06.03.2019) 

33 | P a g e  

 
 
 
                                                      
5 

6 

7 

8 

9 

Involve the top management of 
MNEs and regional 
commissioners (politicians) to 
cluster and S3 development 

- Secure sufficiency of 
labour in North-Middle 
Sweden 

- Better use of regional 
internationalisation 
competences 

- Intensified policy 
dialogue 

No additional costs foreseen 

Search for additional funding 
mechanisms to increase cross-
border RD&I 

- Better synergies with 
different funding 
instruments  

Costs relate to human 
resources for screening 
possibilities 

Develop and implement peer-
learning tools for 
internationalisation (for 
companies and clusters) 

Increase collaboration with 
neighbouring regions (Norway, 
East Middle Sweden & strategic 
EU regions)  

- Improved learning and 
knowledge exchange in 
cluster network 

- Stronger involvement in 
global value chains  

Estimated cost EUR 10 000 
over 3-year period  

IDEA funding for e.g. 
workshops 

Included in action 6 

Develop a talent attraction 
platform and tool box (engage 
companies and public services)  

- Better integration of 
international talent in 
business life  

10 

Evaluate engagement in cross-
border RD&I 

- Detailed information of 
status of cross-border 
activities in North-Middle 
Sweden 

Cost estimation has to be 
done pending definition of 
features and what already is 
available in the region. 

Estimated cost is EUR 50 000 
for North-Middle Sweden 

4.3.3.  Risks, obstacles and challenges  

The internationalisation function has fewer prioritised actions than the other two functions. This might 
result  in  less  attention  being  devoted  to  it,  compared  to,  for  example,  integration  and  coordination 
related actions due to the latter’s importance to regional coherence. This is not, however, seen as a likely 
scenario  because  these  actions  are  prioritised  by  regional  authorities,  and,  as  is  the  case  of  other 
ecosystem functions, implementation of some of the actions has started already. To secure funding to 
carry out several activities simultaneously can be a challenge and sufficiency of personnel might be an 
obstacle. In general, for any action to be implemented, strong ownership and leadership are needed.  

34 | P a g e  

 
 
 
 
 
 
 
5.  Roadmap and action plan with 

activities, timeframe and actors  

Given  that  the  previous  section  of  this  policy  brief  presents  selected  actions  in  detail,  the  owner 
responsible for the actions, as well as foreseen benefits and costs, only a summary action plan is provided 
in this section. The section summarises all prioritised actions suggested for the three essential functions, 
namely  integration  and  coordination;  technology  and  innovation  knowledge  development;  and 
internationalisation of an innovation ecosystem. Altogether 11 actions require immediate attention in 
2019;  16  are  suggested  for  action  within  the  next  four  years,  and  the  remaining  6  actions,  demand 
attention  in  the  period  2023-2025.  In  this  assessment,  ownership  of  the  action  is  divided  between 
clusters and regional authorities.  

Table 5: Action plan  

Action 

Timing 

Owner 

Set up a working group with the regional 
authorities to upgrade North-Middle Sweden S3 
and create coordinated implementation process.  

Mobilise ESIF to implement S3 priorities in 
North-Middle Sweden. 

Review cluster viability (ecosystem life cycle).  

Assess clusters’ potential for intra-region   
(North-Middle Sweden) extension. 

Establish a regional coordination authority for 
North-Middle Sweden (e.g. virtual).  

Share decision-making about ERDF programmes 
with regions. 

Engage new city neighbourhoods as demo 
arenas for North-Middle Sweden cooperation. 

Increase cluster companies’ involvement in EU 
framework projects (include interregional 
approach). 

Set up incentives for regional actors to utilise 
funding schemes for RD&I that require intra-
region (North-Middle Sweden) and cross-border 
collaboration. 

Engage in RD&I that require intra-region (North-
Middle Sweden) and cross-border collaboration. 

n
o
i
t

a
Increase marketing and communication in 
v
e
o
g
promoting innovation ecosystem functions 
n
d
n
(/services). 

o
l
e
v
e
d

t
n
e
m
p

e
l
w
o
n
k

i

i

n
o
i
t
a
n
d
r
o
o
c
d
n
a
n
o
i
t
a
r
g
e
t
n
I

o
n
h
c
e
T

l
a
c
i
g
o

l

d
n
a

2019 

Regional authorities 

2019 

Clusters 

2020-2022 

Regional authorities 

2020-2022 

Clusters 

2023-2025 

Regional authorities 

2023-2025 

Clusters 

2019 

Regional authorities 

35 | P a g e  

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revise and set up innovation support services 
for mid-sized firms. 

Evaluate technological and innovation 
competences and identify gaps.   

Map process mature companies.  

2019 

2019 

Clusters (with 
support of regional 
authorities) 

Clusters 

Clusters 

Integrate technological environment (test beds) 
to better support innovation.  

Design measures to increase number of process 
mature companies. 

2020-2022 

2020-2022 

Clusters & Regional 
authorities 

Regional authorities 
& clusters 

Implement measures of responsible regional 
development (next ESF programming period 
starting in 2020).   

Design tools (e.g. co-creation) that facilitate 
developing North-Middle Sweden wide 
innovation capabilities. 

Design process where researchers and 
companies make joint EU framework 
programme applications. 

Expand innovation platform (collaboration and 
co-creation for sharing solutions) - e.g. 
Gävleborg. 

Design support for companies low in process 
maturity and offer concrete tools (e.g. white- 
and blue-collar levels) to facilitate peer learning. 

Expand expertise of low process mature 
companies to Dalarna and Gävleborg. 

Revise cluster structures (new tech and 
innovation combinations). 

Identify international benchmark regions.  

Set up (inward-outward) internationalisation 
priorities for North-Middle Sweden.  

Assess cluster ecosystem services in addition to 
internationalisation (e.g. evaluation and impact 
assessment, regional branding, communication, 
co-creation).   

Initiate international talent attraction agenda.  

Involve the top management of MNEs and 
regional commissioners (politicians) in cluster 
and S3 development. 

Search for additional funding mechanisms to 
increase cross-border RD&I. 

n
o
i
t
a
s
i
l
a
n
o
i
t
a
n
r
e
t
n
I

2020-2022 

Regional authorities 

2020-2022 

Clusters 

2023-2025 

Clusters 

2019 

Regional authorities 

2019 

Clusters 

2020-2022 

Regional authorities 

2020-2022 

Clusters 

36 | P a g e  

 
 
 
 
 
 
 
 
 
 
 
Develop and implement peer-learning tools for 
internationalisation (for companies and clusters). 

Increase collaboration with neighbouring 
regions (Norway, East Middle Sweden & 
strategic EU regions).   

2023-2025 

Regional authorities 

Develop talent attraction platform and tool box 
(engage companies and public services).  

2023-2025 

Regional authorities 
and clusters 

Evaluate engagement in cross-border RD&I. 

2023-2025 

Clusters 

From  Figure  7,  it  can  be  seen  that  North-Middle  Sweden  envisions  having  an  Innovation  ecosystem 
approach  regionally  embedded  within  all  its  activities  by  2025  and,  from  2026  onwards  to  work  to 
become a test demonstrator for S3 (globally) and to increase synergies with and influence the design of 
national programmes. Although actions to reach these two last goals are not explicitly addressed in this 
document, they are deemed to be intertwined in the vision established together with local stakeholders. 

37 | P a g e  

 
 
 
 
 
 
 
 
European Observatory for Clusters and 

Industrial Change 

Internal  Market, 

The European Observatory for Clusters and Industrial Change (#EOCIC) is an initiative of the European 
Industry,  Entrepreneurship  and  SMEs  Directorate-General.  The 
Commission’s 
Observatory provides a single access point for statistical information, analysis and mapping of clusters 
and cluster policy in Europe, aimed at European, national, regional and local policy-makers, as well as 
cluster managers and representatives of SME intermediaries.  

The  aim  of  the  Observatory  is  to  help  Europe's  regions  and 
countries design better and more evidence‐based cluster policies 
and  initiatives  that  help  countries  participating  in  the  COSME 
programme to:  

• develop  world‐class  clusters  with  competitive  industrial  value 
chains that cut across sectors;  
• support Industrial modernisation; 
• foster  Entrepreneurship  in  emerging  industries  with  growth 
potential; 
• improve  SMEs'  access  to  clusters  and  internationalisation 
activities; and 
• enable  more  strategic 
inter‐regional  collaboration  and 
investments  in  the  implementation  of  smart  specialisation 
strategies. 

In  order  to  address  these  goals,  the  Observatory  provides  an 
Europe-wide  comparative  cluster  mapping  with  sectoral  and 
cross-sectoral 
the  geographical 
concentration  of  economic  activities  and  performance,  made 
available  on  the  website  of  the  European  Cluster  Collaboration 
Platform  (ECCP) 17 .  The  Observatory  provides  the  following 

analysis  of 

statistical 

services:  

•  Bi-annual  "European  Panorama  of  Clusters  and  Industrial  Change"  that  analyses  cluster 
strengths and development trends across 51 cluster sectors and 10 emerging industries, and 
investigates  the  linkages  between  clusters  and  industrial  change,  entrepreneurship,  growth, 
innovation, internationalisation and economic development; 

• 

"Cluster and Industrial Transformation Trends Report" which investigates the transformation 
of clusters, new specialisation patterns and emerging industries; 

•  Cluster policy mapping in European countries and regions as well as in selected non-

European countries; 

• 

"Regional  Eco-system Scoreboard for Clusters and  Industrial Change" that  identifies and 
captures favourable framework conditions for industrial change, innovation, entrepreneurship 
and cluster development; 

17 European Cluster Collaboration Platform, Official Website. Available at: https://www.clustercollaboration.eu/. 

38 | P a g e  

 
                                                      
 
•  Updated  European  Service  Innovation  Scoreboard 18,  that  provides  scorecards  on  service 

innovation for European regions; 

• 

"European Stress Test for Cluster Policy", including a self-assessment tool targeted at cross-
sectoral  collaboration,  innovation  and  entrepreneurships  with  a  view  to  boosting  industrial 
change; 

•  Customised  advisory  support  services  to  twelve  selected  model  demonstrator  regions, 
including expert analysis, regional survey and benchmarking report, peer-review meeting, and 
policy briefings in support of industrial modernisation; 

•  Advisory support service  to European Strategic Cluster Partnerships, in order to  support 
networking  between  the  partnerships  and  to  support  exchanges  of  successful  practices  for 
cross-regional collaborations and joint innovation investments; 

•  Smart Guides for cluster policy monitoring and evaluation, and for entrepreneurship support 

through clusters that provide guidance for policy-makers; and 

•  Brings together Europe’s cluster policy-makers and stakeholders at four European Cluster 
Policy Forum events, European Cluster Days, and at the European Cluster Conference in 2019 in 
order to facilitate high-level cluster policy dialogues, exchanges with experts and mutual cluster 
policy learning. Two European Cluster Policy Forums took place in February and April 2018, and 
the European Cluster Conference is scheduled for 14 to 16 May 2019 in Bucharest (Romania). 

•  Online  presentations  and  publications,  discussion  papers,  newsletters,  videos  and  further 
promotional  material  accompany  and  support  information  exchanges  and  policy  learning  on 
cluster development, cluster policies and industrial change. 

More information about the European Observatory for Clusters  and Industrial Change is available at: 
https://www.clustercollaboration.eu/eu-initiatives/european-cluster-observatory. 

18 Previous versions for 2014 and 2015 were developed by the European Service Innovation Centre (ESIC), see 
http://ec.europa.eu/growth/tools-databases/esic/index_en.htm.  

39 | P a g e  

 
 
 
                                                      
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