A Bioeconomy for the Baltic Sea Region

- impact, engaging the private sector and financing cooperation

18 September 2014

- by Thomas Winther (Innogate) and Henning Klarlund (Roskilde University)

Workshop Paper II:

“A Bioeconomy for the Baltic Sea Region

- Impact, engaging the private sector and financing cooperation”

About the Workshop Paper

At the first workshop in Tallinn 26-27 March 2014 it was concluded that in going

forward it is particularly important to “hit the ground”, i.e to:

• Ensure impact of cooperation activities.

• Engage more the private sector through cooperation efforts that are attractive to

companies.

• Support stakeholder in navigating between financial mechanisms for

cooperation in the Baltic Sea Region.

Workshop Paper II aims to address these issues to inspire further dialogue and

cooperation on tools and levers; good practices; and opportunities for going further.

FURTHER DEVELOPMENT

AND SHAPE OF THE

BIOECONOMY

ASSETS

Growing the bioeconomy by private sector sector engament

… and

Test facilities Clusters

Demonstration & awareness Eco-labelling

”Creative” financing

Public procurement

Industrial Symbiosis

Biorefineries

Productivity enablers Market enablers

Innovation and technology enablers Financial enablers

Confidence and stability enablers

Science: Progress of knowledge, thanks to advances in

theories, methodologies, models, and facts.

Research policy: Influences how policy makers and

policies act. It can provide evidence that influences policy

decisions and can enhance citizens’ participation in

scientific, environmental, societal, economic and

technological decisions.

Training: Curricula, pedagogical tools, qualifications, entry

into the workforce, etc.

Technology: Product, process, and service innovations, as

well as technical know-how, are types of impacts that partly

result from research activities.

IMPACTS

Economy: Organisation’s budgetary situation e.g. operating

costs, revenues, profits, the sale price of products; on the

sources of finance, investments and production activities; and on

the development of new markets.

Culture: Knowledge and understanding of ideas and reality, as

well as intellectual and practical skills, attitudes, interests, values,

and beliefs.

Society: Welfare, behaviour, practices, and activities of people

and groups, including their wellbeing and quality of life. It also

concerns customs and habits: consumption, work, sexuality,

sports, and food.

Organisation: Activities of institutions and organisations:

planning, organisation of work, administration, human resources,

etc.

IMPACTS cont.

Health: Public health, e.g. life expectancy, prevention of

illnesses, and the health-care system.

Environment: Management of the environment, notably

natural resources and environmental pollution, as well as the

impacts on climate and meteorology.

Symbolic: Gains in areas such as credibility due to e.g.

undertaking R&D.

IMPACTS cont.

Specific

Measurable

Achievable

Realistic

Time-dependent

INDICATORS

Inputs – assets, financial and human resources,

communication, cooperation.

Outputs – discoveries, publications, citations, patents,

etc.

Transfers/Exchanges – engagement with end-users.

Outcomes – new/improved products, services, or

processes.

Impacts – achieved improvements.

Benefits – to society.

Engaging the private sector. Good practices

Biorefineries: -Converting biomass (trees, energy crops, waste etc) to a wide range of products, including food,

feed, chemicals, materials, and energy…. New opportunities, new value chains.

Test facilities: -To reduce costs of testing, in particular for SMEs. Fact: Technology-based companies cluster

around test centres. Governments may facilitate. Smart specialisation opportunity in the BSR.

Life-Science-, cleantech- and bio-clusters: -3Helix industry hubs servicing companies with improved business enabling environment,

business match-making, investor attraction, internationalisation etc.

-Cooperation between and across these cluster, engaging also with other clusters such as ICT,

provides new opportunities.

Business meeting places: -Business match-making, innovation competitions, product fairs/conference

…. continued….Engaging the private sector: Good practices

Industrial Symbiosis: -Kalundborg: 20 companies participate in a cycle whereby residuals products (previously

considered as waste) becomes a production input in another company.

Public Procurement: -BSR Green Public Procurement project provides an overview of good practices. Accounting for

20% of consumption public procurement may create new demand. E.g. the Municipality of

Mariagerfjord created a market worth EUR 150 Mio pa. for locally produced bioenergy.

Eco-labelling -Has been key for organic food production and consumption. Also Nordic Swan for non-food

environmentally favourable products.

Private financing: -Energy Service Companies and Energy Performance Contracting have proved their business

case within energy efficiency, and also within renewable energy. Further opportunities for the

bioeconomy, if current externalities is more appropriately priced.

-Financial innovations such as crowd funding and local capital also offer new opportunities.

…. continued….Engaging the private sector: Good practices

Showcasing and storytelling:

-Baltic Deal: Uniting farmers and farmers’ advisory organisations to improve agri-environmental

practises. Result: Reduced nutrient losses from farms while at the same time maintaining

production and competiveness. Win-win, good story, engages others to also succeed.

-Baltic Manure: Aimed to change the perception of manure as waste, but rather as a resource –

including by identifying environmentally sustainable business opportunities through improved

management and use of manure.

-Submariner: Developed a compendium and road map for furthering sustainable development in

the Baltic Sea Region through environmentally friendly and economically attractive uses of

marine technologies.

Implications for going further?

Multiplication of good business practices -Storytelling, communication… inspire to embrace the bioeconomy

Multiplication of good policy practices -Storytelling, communication… both carrot and stick

Network existing resources and efforts -Realise synergies, avoid dupplication (cluster programmes; science- and business parks;

business and investor matchmaking platforms, funding schemes etc.)

… it is about win-win…. and it is about a BSR bioeconomy internal market…

Financing the transition towards the bioeconomy in the BSR?

The transition will only be genuinely realized when and if the private sector

embrace the bioeconomy…

… but the public sector can play an important role in seeding, fertilizing and

enabling multiplication of practices and models for growing the bioeconomy.

Funding available for development of the bioeconomy at different levels:

-European Union

-Transnational support from NCM, Nordic Institutions, CBSS and Si

-National

-Regional/local

Financing the transition towards the bioeconomy in the BSR?

European Union support:

-Horizon 2020

-The Baltic Sea Region Programme 2014-2020

-The Central Baltic and The South Baltic programmes

-EUSBSR Seed Money Facility

…. and also national and regional European Union co-financed regional

development programmes.

Financing the transition towards the bioeconomy in the BSR?

CBSS:

-Project Support Facility.

Si:

-Seed funding for projects between Swedish partner and South-Eastern partner.

NCM:

-NCM Bioeconomy Seed Financing.

-Nordic institutions and cooperation bodies – such as Nordic Agricultural

Committee for Agricultural and Food Research, Nordic Forest Research, Nordic

Gene Resource Centre, Nordic Innovation, Nordic Research Council, and Nordic

Energy Research.

Growing the bioeconomy by private sector sector engament

… and

Test facilities Clusters

Demonstration & awareness Eco-labelling

”Creative” financing

Public procurement

Industrial Symbiosis

Biorefineries

Productivity enablers Market enablers

Innovation and technology enablers Financial enablers

Confidence and stability enablers

Assets

Enablers

Vehicles