RIBS - Project

1. RIBS - Project RURAL INNOVATION AND BUSINESS SYSTEMS SME´S INTERNATIONALISATION Kari Autio Iin Micropolis Ltd Finland 27.2.2013 Nairn, Scotland

2. Micropolis operates in Oulu Region The Oulu region is a major locomotive in Finland. The aims of Micropolis are to generate new business opportunities and support business ventures. More information: www.micropolis.fi

3. Micropolis Technology and industrial hub offers… • Industrial and business premises • Networking possibilities • Exploiting new commercial opportunities • Cluster assembly..

4. A place to suit your company Micropolis comprises a network between companies, research and regional developers. Techonology center offers facilities for start-ups, growing businesses and internationally established companies.

5. Oulu Region 2013 Sub regions Municipalities KUUSAMO Koillis-Suomen Posio aluekeskus TAIVALKOSKI Koillismaan sk II Oulunkaaren sk PUDASJÄRVI OULU HAILUOTO Raahen KEMPELE aluekeskus LUMIJOKI Raahen sk UTAJÄRVI MUHOS TYRNÄVÄ Haapaveden- Siikalatvan sk LIMINKA Ylivieskan sk Oulun Eteläinen SIIKAJOKI aluekeskus RAAHE Nivala- MERIJÄRVI PYHÄJOKI Haapajärven sk ALAVIESKA 29 Municipalities SIIKALATVA OULAINEN KALAJOKI HAAPAVESI YLIVIESKA PYHÄNTÄ 7 Sub regions KÄRSÄMÄKI NIVALA SIEVI HAAPAJÄRVI Town REISJÄRVI PYHÄJÄRVI RIBS - Project • Population in Oulu Region 393 800 • Population City of Oulu is around 200 000 (2013) and it´s surrounding including (50 km) app. 250 000 • Oulu International Airport is 2. largest in Finland • Oulu University, 2. largest in Finland • Number of Hi-tech businesses in Oulu Region 1 600 (18 %) • Hi-tech jobs in Oulu Region 18 052 (21 %) Oulun aluekeskus Oulun sk Average population density: 11 inhabitants/km2 Economic Structure: Services 66%, Manufacturing 22%, Construction 6% and Agriculture and forestry 6% (Labor force by occupation )

6. RIBS - Project • The Rural Innovation and Business Systems (RIBS) project will specifically help SMEs to address the effects of the economic downturn and strengthen their competitiveness and growth potential. • On rural areas is difficulties to recognize (find) potential SMEs which will grow and are favor to start export. WP 4: Internationalisation of SMEs • Strategic Focus: To assist rural knowledge based SMEs to internationalise more quickly • Expected Outcome: A fast track business support product which help rural knowledge based SMEs to internationalise more quickly • Description of WP4: • Develop and test a product to strength SMEs engagement in the innovation system and thereby to enable them to internationalise more quickly • Focus on SMEs that have the potential to internationalise and are weak in seeing how to convert this potential to revenue

7. RIBS - Project How SMEs were selected ?

8. RIBS - Project Interviewed SMEs SMEs to internationalisation • Recycling electronics 1 • Biotech 1 • Software 5 • Cleantech 2 • Wood products 3 • Energy technology 1 • Testing and approvals 1 • Access control systems 1 • Stone products 1 • Medical devices 2 • Maintenance services 1 • Robotic systems 1 • Engineering workshop 2 • Interface production 1 • HVAC automation 1 • Lead light fittings 1 • Software 2 • Energy technology 1 • Testing and approvals 1 • Medical devices 1 • Robotic systems 1 • Engineering workshop 2 • Interface production 1 • Lead light fittings 1

9. RIBS - Project • Programme Manager had meetings with all representatives of 25 SMEs • One meeting took time normally 2 – 2,5 hours • The Business and Innovation Compass forms and also Navigation Tool forms were filled together with SMEs´ representatives: Situation in SME 3 years ago, at the moment, after next 3 years ? • Results were preliminary analyzed by Luleå Technical University How interviewing was done ?

10. RIBS - Project What after interviews ? • TwinSpark Consulting Ltd was chosen as external expert for internationalisation • First pilot tool of internationalisation was created together with external expert on 1 st of February 2012 (Template of questions ) • 10 potential SMEs were chosen from 25 earlier interviewed SMEs by Project Team (Programme Manager, Project team member, external expert) • Individual proposals to each SME for first acts was done by Project Team • A half day meeting was held between each SME and Project Team where first acts were agreed. • Supporting of SMEs to take first acts for internationalisation was started.

11. RIBS - Project First pilot tool of internationalisation • Five main categories of questions: • Has SME internationalisation strategy or plan? • Process and Product • Resources • Financing • Public and Private support to internationalisation • During interviews every SME have to pick up one category which is most actual to them at the moment. • In selected category were some extra questions to answer

12. RIBS - Project First pilot tool of internationalisation Additional questions of product readiness

13. RIBS - Project Development and financial plan for funding application Create a questionnaire for SMEs Interview of SMEs Analysis of Interview results Create a proposal for actions Discussion with SMEs for actions Participants: Project mgr SME representative Participants: Project mgr Project team Consultant Participants: Project mgr Project team Consultant Participants: Project mgr Project team Consultant SME representative Participants: Project mgr SME representative Participants: Project mgr Project team Consultant Rural area SME support process – Steps

14. RIBS - Project Situation today ? • Seven SMEs have got funding and they have started first acts: • 3 SMEs are already on export market • SMEs have got funding for business development including: • employing managing director • employing marketing people • employing engineers • investments production processes • Three SMEs have got venture capital investment • One SME has left in application for funding • Two SMEs are planning to make application for funding

15. RIBS - Project • What are first acts? • Example about proposed first acts to one SME • 1.Internationalisation strategy/plan • From Centre for Economic Development, Transport and the Environment will be looked for 50% or 70 % funding from total cost. • Market study in Baltic countries and Ireland. • Material for marketing. • Search and create marketing and distribution chains. • Types of financing and terms of payment(leasing and etc.). • Agreement types • Production in target countries(subcontracting) • 2. Presentation of product to EU officers in Brussels • North Finland EU Office will arrange a meeting. • 3. Venture capitalist to financing internationalisation • 4. Investments to increase personnel • 5. Ensure acceptable production capacity • Subcontracting in Latvia and Belarus • Quality assurance system • Education of personnel

16. RIBS - Project What next? • Comments to Business and Innovation Compass: To create usable tool for persons which are dealing with SMEs • Internationalisation Tool will be tested with five SMEs which have not been among earlier 10 SMEs • Tool for internationalisation of SMEsbased on platform created in Business and Innovation Compass • Best practices to support SMEs in Ireland, Scotland and Finland will be analysed and presented to main funding agencies in Finland • Business and Innovation Tool and also Internationalisation Tool will adapted • to Finnish conditions; • reducing and simplifying questions • translating questions into Finnish • more visual outcome • usable in PC and Smart phones

17. RIBS - Project WAITING FOR SUMMER ! THANK YOU !