| Oulu Growth Agreement |
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| By Ata Bos, Bonnie Hamilton | ||||||
| Tuesday, 18 October 2005 | ||||||
A new and encouraging development in Oulu?The Oulu Growth Agreement was written in 2002 to ensure improved development for the city's residents as well as its businesses. This 300 million Euro strategy is a huge investment in Oulu’s future and, consequently, the expectations are high. The key players of the growth agreement are The City of Oulu and The Oulu Region Centre of Expertise. The City is responsible for co-ordination while the regional body is responsible for most of the practical implementation of the programme. Five Clusters The Oulu Growth agreement is based on five clusters. Each cluster represents a sector with connected networks. The clusters cover: Environment, Bio-Cluster, Information and Technology, Content and Media and, last but not least, Wellness. The goal of each cluster is to develop business operations, increase expertise and internationalisation. In addition, each cluster will activate research operations and improve the business environment. The ultimate objective of the growth agreement is the creation of 150 new businesses, 6000 new jobs and a €1,5 billion increase in turnover. Famous Clusters People might think the concept of The Growth Agreement is a bold new idea but it is not. In fact, clusters have existed for centuries. The Italian leather fashion cluster, the Dutch flower industry, Silicon Valley and the Hollywood film industry are just a few examples. Moreover, it seems that The Oulu Growth Agreement is part of a growing European trend. During the last ten years, there has been a promising explosion of new clusters. For example, Silicon Fen, Silicon Glen and Silicon Ditch in the UK alone. German, French, Italian and Swedish clusters have also appeared on the market. The Oulu Growth Agreement can certainly be included in this group. Chicken or the egg? For expatriates not familiar with the history of the city, one of the fascinating questions is, of course, which came first? Was there a tendency for specialised companies to cluster together, or, were clusters put in place first to enhance business activity in the five fields? The truth probably lies somewhere in between. With Nokia as a leading technology company and its past marketing success, the road seemed open to a successful “Information Technology Cluster” with a more grounded background in the area than for instance, the Biocluster or Wellness cluster Location Geographical location is an important component in terms of working clusters. Clusters often include institutions such as universities, research facilities, standard setting agencies and think tanks as well as providers of specialised training. Education, information research and technical research are excellent examples of this specialised training. Oulu's trained and educated workforce makes it an ideal location for the establishment of clusters. Consequently, with The University of Oulu only a 15 minute drive away from Technopolis (one of Finland’s largest providers of operating environments for high tech companies), and a wide array of companies working in related fields, this concentration has resulted in increased economic activity and an unusual competitive success story. This concentration of like-minded professionals has greatly enhanced and continues to build on past successes. Despite the accomplishments of The Oulu Growth Agreement, until now not much emphasis has been put on advertising the quality of life that the city has to offer. Complementing the business advantages is a nurturing and welcoming environment, low crime rate, good schools, affordable housing, low land prices and friendly people. These qualities are all vital components in attracting and retaining entrepreneurs, investors and a highly educated workforce. All these factors favourably affect businesses and help to achieve rapid growth and job creation. Entrepreneurs Like so many other European cities with strong research capabilities, Oulu has tended to “drop the ball” when it comes to translating research ideas into successful commercial ventures. For instance, not much has been done to prepare students for converting their ideas into viable businesses. However, especially in times of low economic growth, innovative means must be found to further economic development in the city. While the city's role in initiating projects and their continued support of The Growth Agreement and cluster building is essential, the role of the entrepreneur should not be underestimated. Ultimately, it is these individuals who take risks to generate the very profits and growth that benefits us all. They invent new products and contribute greatly to the continued economic activity in our city. To those people working in the so-called "soft" sectors, be patient! If clusters become successful, they will extend and create new growth in the complementary/sustaining industries. Ref. Oulu 2006, Growth Agreement Stategy + Business: no:15 The cluster effect: Can Europe clone Silicon Valley. Des Dearlove Third Quarter 2001
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