june 2016 - blue growth - north sea - workshop report ... · in june 2016, a second workshop was...

Workshop on Strategic Cooperation on Blue Growth in the North Sea

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WorkshopReportIntroduction – context and aim In September2013, the EuropeanParliament approvedapreparatory action - a regionalstrategy for the North Sea region to support cross-sectoralmaritime cooperation in theNorth Sea region through a bottom-up process engaging stakeholders in workshops onfunding,spaceandresourcemanagement,environmentalissuesandinnovation.Itaimsto:

• RaiseawarenessofthepotentialofEUsea-basincooperationfortheimplementationofEU legislation related to Blue Growth, marine and maritime issues including theMaritime Spatial Planning andMarine Strategy Framework Directives, the RenewableEnergyDirectiveandtheCommonFisheriesPolicy;

• Raiseawarenessontheneedforcross-sectoralcooperationatsea-basin leveltoavoidconflicts on space use, allow for a sustainable use of resources and stimulate thedevelopmentofoffshorerenewableenergyproduction;

• EnablecooperationacrosstheNorthSeabasin,buildingonexistingfora;• Giveguidancetostakeholdersandpotentialprojectpromoters;• LiaisewithmanagingauthoritiesofEUfundingprogrammes;• Helpstakeholders identify fundingformarineandmaritime-relatedprojectsatEUand

nationallevels;andbringtogetherprojectpartnerstodevelopcross-sectoralactivities;

The first workshop under the "Preparatory action” explored the opportunities andchallenges in the energy sector, involving a number of key stakeholders as speakers andpanellists.InJune2016,asecondworkshopwasorganisedtodiscussabroadersetofblueeconomyopportunitieswithaviewtofosteringthedevelopmentofstrategiccooperationinoneormorebluegrowthvaluechainsorcross-cuttingtechnologies(e.g.sub-seasystems)orservice(e.g.maritimedata)fields.

Transnational strategic cooperation is defined as an agreement among three or moreorganisations (businesses, governments, education, research or innovation institutes,cluster organisations, etc.) from three or more countries to cooperate on issues/areasconsidered strategic for their development (e.g. identified in regional strategies), sharing


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key skillsor know-howandpooling resources (humanand financial) inorder tomaximisetheir individual and joint potential, accomplishing more than they could achieve actingalone. Strategic cooperation is distinct from a transnational project (e.g. funded byINTERREGVorHorizon2020)as it isbasedona longer-termframework (e.g.a roadmap)that helps to prioritise and ensure synergies between a portfolio of actions or (co-)investmentsinordertoachieveajointlyagreedobjective.Strategiccooperationmobilisesandcombinesfundsandexpertisefromdiversesourcestoimplementthepriorityactions.

Figure1:Workshopparticipantsbycountryandtypeoforganisation

The workshop targeted participants from all North Sea countries and from national andregionalpublicauthoritiesresponsibleforbluegrowthissues,businessfederations,clustermanagers, economic development and innovation agencies, industrial and universityresearch centres, etc. The participants (not including harvesters, speakers and EuropeanCommissionrepresentatives)metthisgoalwithagoodspreadbycountry(Netherlandsasthehostcountryhadthehighestnumberofparticipants)andtypeoforganisation(including

Belgium17%

Germany12%

Denmark9%

France3%

Netherlands36%

Norway11%

UK8%

Sweden2%

Ireland2%

Regional Government dept./agency

22%

Private business17%

Business cluster/sectoral

organisation16%National

government dept./agency

14%

Local authority11%

University/Higher Education Institute

9%

Inter-regional organisation

5%

Research/technology organisation

5%

Port authority1%


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agoodparticipationofprivatesectorcompaniesandrepresentativeorganisationssuchasclustermanagersandbusinessfederations).SeeFigure1

The workshop sought to identify the need for and potential priority areas for strategicpublic-private cooperation harnessing Blue Growth economic opportunities in the NorthSea.Theday-and-a-halfprogrammeaddressedthechallengesofidentifyingjointpriorities,mobilisingandinvolvingbusinesses,cooperationtoolsandformsofassistance(otherthanfinance),investmentplatforms,etc.tosupportandacceleratestrategiccooperation.

Figure2:workshopprocess

The workshop was organised (see Figure 2) as a participatory ‘brainstorm’ with threeconsecutivemoderatedbreak-outsessionsaddressing:

• Session 1: working toward a consensus on the priority areas for cooperation/prioritysetting(e.g.aquaculture/food,short-seashipping,bluebiotech,offshorerenewables);

• Session2:foreachpriorityarea,sketchingoutavisionandnecessaryactionstodevelopstrategictransnationalcooperation;

• Session 3: identifying sources of funding and the need for new financial instruments(e.g.aninvestmentplatform)tosupportthecooperation.

Eachsessionbeganwithoneortwospeakerssettingthescene,afterwhichtheparticipantssplit into break-out groups for a moderated discussion. At the end of each break-outsession,theharvestersreportedbacktoaplenarysessiontoenableaconsensustoemerge.The aim was to agree on a short-list of priorities and ‘flagship’ public-private actions tomaximisejointbusinessopportunitiesinbluegrowthintheNorthSearegion.


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Dutch and European priorities for Blue Growth TheworkshopwasopenedbyRogiervanderSande,theRegionalMinisterforInternationalAffairsof theProvinceofZuid-Hollandwhowelcomedtheparticipants toTheHague. Mrvan der Sande stressed how important a role the sea played in the economic andtechnologicalprioritiesoftheProvince.Themajorportinfrastructureandtheinlandwaterways connecting Zuid-Holland to the heart of Europemean that the region is a hub formaritimetrade.ThehistoricbattletokeeptheseaoutofthelowcountryrepresentstodayanopportunityforDutchcompaniesanduniversitiestoexportknowhowinwateranddeltamanagement technologies. These technologies are increasingly relevant in the face ofclimatechange.

Mr vander Sander stressed that the full potential of BlueGrowth for Zuid -Holland andotherregionscanonlybeachievedthroughmorestructuredcooperationinandaroundtheNorthSea. Cross-sectoralcoordinationandmulti-levelgovernancearerequiredtoensurethatabettergovernedregioncanprosper.Zuid-Holland,likeotherregions,hasidentifiedanumber of blue growth field in the regional Smart Specialisation strategy. These includeconstructionwithnature (including the SandEngineproject, aunique large artificial sandbankthatisanewcoastaldefencetechnique),smartandcleanshipping(wheretheregionisworkingwith17partnersfromtheUK,Belgium,GermanyandtheNetherlandstoreduceairpollution and emission from inland shipping); water and delta technology and dikemonitoring (again working with partners from around the North Sea); and finally blueenergy, including the Katwijk and Brouwersdam tidal power plants that use noveltechnologiesthatexploitdifferencesbetweenhighandlowtidesandfreshandsaltwater.Such initiatives underline the potential for scaling up and sharing of expertise throughstrategiccooperationaroundtheNorthSea.

DonnéSlangenoftheNetherlandsMinistryof InfrastructureandtheEnvironmentsetouttheDutchinitiativesforBlueGrowthintheNorthSea.Thepriorityistoensurethathealthyoceans, healthy seas and healthy coastal area can provide blue ecosystem goods andservices.TheNorthSeaecosystemisconnectedtootherseabasinsandcoastalandinlandwaterway ecosystems areas. Protecting and restoring theproductivity of this area is vitaland on 11 June, the Dutch Government approved final proposals for meeting marineprotectedareatargetsafterlongdiscussionwithallpartners.Theproposalsseektofindtheright balance between use of the sea and protection of marine life. Developing adecarbonised blue economy by 2050 requires both new players and that current playersreinventthemselvesanddevelopnewbusinessmodels,withthesupportofthetriplehelixand broader civil society. Recently, falling oil prices have undermined investment incleantechbutthereisanupsideinthatindustryisadoptingtransitioneconomythinking.Forinstance,theDutchoilandgasandoffshorewindsectorshaveannouncedaco-investmentof€100minR&Dtobringdownthecostofoffshorewind.

The Dutch North Sea Spatial Agenda 2050 has the theme of “building with North Seanature” and seeks to bridge the tension betweenmarine environment and the pressurehumansputonit. AnexampleofsustainabledevelopmentistheinvestmentintheNorthSeaseaweedfarmnearScheveningenharbour. Energytransitionisaprioritywithafocusonoffshorewindfarmsbutalsotheneedtocombinedifferentsourcesofoceanenergy.The


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OceanGrazer1projectinGroningenisagoodexampleofapplyingtechnologiesthatensurethemulti-useofmaritimespace.Aswellasafocusonportsandshipping,anotheremergingtopicisland-seainteractionandtheneedtofurtherdevelopthepotentialsynergies.

The Dutch Presidency aimed to make concrete and practical progress on a number ofmaritime priorities. Results include joint efforts to revise the short sea shipping strategy,combatting climate change via rapid implementation of the UNFCCC COP 21 Parisagreementandpushingthecirculareconomytoreducewasteendingupinthesea.Akeyoutcomehasbeenthepoliticalagreement,signedon6June,forcloserenergycooperationbetween North Sea countries2. A high-level conference on Blue Growth, organised inFebruary in Harlem, brought to light the importance ofmobilising regions to create bluejobsbyimprovingvaluechaincooperationandleveragingfunds,includingtheEFSI‘Juncker’financial mechanism. The event also underlined the need to work across institutionalbordersandimprovemulti-levelgovernance.TheDutchPresidency,followingtheEuropeanMaritime Days in Turku, has also brought together an informal High Level Focal PointMeetingonIMPtodiscussjointlypriorities,reflectionsonareastodrawupamoredetailedIntegrated Maritime Policy agenda focussed on progress towards the blue economy inEurope.Inclosing,MrSlangenstressedtheimportanceofNorthSeaco-operationtosecuremarinefoodsupply,harvestmarineenergy,etc.whileensuringecosystemsustainability.

Claus Schultze of the European Commission, DGMaritimeAffairs (MaritimeAffairs BalticSea,NorthSeaandLandlockedMemberStates)underlinedtheimportanceofbluegrowthasan importantelementoftheEU'sJobsandGrowthagenda.Other internationalbodies,suchastheOECD,alsoexpecttheoceaneconomytodoublevalueaddedinnext20years.TheBlueeconomyintheEUisthesizeoftheBelgianeconomyandDGMAREislookingathowtomeasure theblueeconomymoreprecisely including thevaluechains thatgowaybeyond the coastal regions. The Blue Growth strategy was designed as an overarchingframework structured around five key sectors. Since the strategy was launched, theconcepthasbeendeveloped further and international bodies such as the FAOor theUNhavepushedforsustainableoceangovernancewhichtheEU isalsogivingmoreattentionto.TheCommission is takingstockofwhathashappenedsince2012and focusingon thespecificopportunitiesandchallengesofeachseabasin.Thesectoralapproachhashadsomesuccess,forinstance,oceanenergyhasmovedtowardsthecommercialphaseandisbeingscaleduptomakeitcompetitivewithariskinsuranceschemeandaninvestmentplatformbeingworkedon.

However,morefuturegrowthisexpectedtocomefromastrongercross-sectoralapproachandbystructuringvaluechainsthatdonotrespectstandardsectorsorextendbeyondthesea-basin. This has been done, for instance, through the Vanguard Initiative pilot onOffshoreTechnologies(e.g.newmaterialsintooffshorewindparks).Suchcooperationisledby regions but with a strong industry involvement and is a good example of the sort ofbottomupstrategicco-operationthattheCommissionwantstoencourage.TheEuropeanParliamentisalsoconvincedoftheneedforextendingthisbottomupcooperationandtookthe decision to finance the preparatory action to support cross-sectoral cooperation andbottomupprocesses.Inthiscontext,theCPMRisanimportantpartneroftheCommissionandhasbeenactiveinpromotingcooperationintheseabasins,includingtheNorthSea.

1 http://www.oceangrazer.com/ 2 https://ec.europa.eu/energy/en/news/north-seas-countries-agree-closer-energy-cooperation


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Thesurveyunderlinesthatfundingremainsanissueandthatcertaintypesofinvestmentorprojectsdonotaccess financeeasily. TheEFSIprovidesone importantsourceof funding,notably for major investments (wind parks, etc.) but investments under 25m can bepackaged into investmentplatforms. TheCommission is currentlyworkingon investmentplatforms for ocean energy, bioeconomy and green shipping. Indeed, stakeholders areencouragedtobringforwardstrategicandbankableprojects.Thereissignificantscopeformore strategic projects across sea-basins. Themeaning of 'strategic' is very important inthat respect in that projects should be based on joint visions, prioritise strategicdevelopmentopportunities, enhance synergies and criticalmass andbe transformative inbringing forward new solutions and business opportunities. These ideas were taken onboard for theBlueTechcallofDGMARE3with theaimthatdynamicandentrepreneurialorganisations(suchasclusters)cometogetheracrossasea-basintoworkonaroadmapanddevelopbankableprojects.ThedeadlineisinSeptemberandtheCommissionhopesthatatleastoneprojectwillemergefromtheNorthSeapartnerships.

Session 1: Prioritising transnational cooperation in Blue Growth value chains Thefirstoftheworkingsessionsaddressedthreekeyquestions:

• WhatarethelessonsfrompasttransnationalcooperationforBlueGrowthintheNorthSeaarea,whatarethedo’sanddon’tsforfutureactions?

• In which North Sea blue growth sectors/value chains is there the most need oropportunityfortransnationalcooperation?

• WhatarethebarrierstomaximisingthepotentialfromBlueGrowthandtowhatextentdotheyrequireatransnationalresponse?

Before splitting into break-out groups, participants were addressed byMarcella Smyth,Chair of the Atlantic Strategy Group and Maritime Affairs Attaché at PermanentRepresentation of Ireland to the European Union, who outlined the experience of theAtlantic Strategy Group in developing a more strategic approach to cooperation. Manylessons have been learned in developing the Atlantic Strategy and the process andgovernancemodelprovideinsights intohowstrategiccooperationcanbedeveloped. TheEUIntegratedmaritimepolicyadopted in2007wasan importantelement inthat itcalledforseabasinstrategiesandin2010theEuropeanCouncilandtheEuropeanParliamentbothcalled for an Atlantic Strategy to be developed. In 2011, the strategy was adopted andlaunchedafter followingaCommissionCommunicationandabroadbasedconsultation inthefivememberstates.MsSmythunderlinedthatabroadconsultationishugelyimportantto ensure a sense of ownership and that a sea basin strategymust be based on a cleardemandfromMemberStates.

TheAtlanticStrategyisstructuredaroundfiveover-archingandinterlinkedthemes:

• Implementinganecosystemapproach–through,forinstance,theCFPmarinestrategyframeworkdirective

3 https://ec.europa.eu/easme/en/call-proposals-blue-technology-transfer-innovative-solutions-sea-basin-economies


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• ReducingEurope’scarbonfootprint–oceanrenewableenergy, lowemissionmaritimetransport,etc.

• ExploitingtheAtlanticseafloor’snaturalresources–marinerawmaterialsforfood,fuel,marinepharmaceuticals,marineknowledgeetc.

• Responding to threats and emergencies – maritime safety, crisis management,surveillance,etc.

• Sociallyinclusivegrowth–vocationaltraining,tourism,maritimeclusters,etc.

The implementationof the strategy isbasedon theprincipleof the“ThreeNos”:nonewfunding,nonew legislation,nonew structures. This requires strongpolitical commitmentandcoordination. AnAtlantic Forumwascreated in2012 todrawupanactionplanandagreeonpriorityactionsviafurtherconsultationwithall interestedparties,overseenbyaLeadersGroup (high level representativesof theEU institutionsand theAtlanticMemberStates). TheActionPlanwasapproved in2013,under the IrishPresidency,alongwithaninternational dimensionwith the signing of theGalway Statement4 onmaritime researchwiththeUSandCanada.

Itwas important to have the action plan in place to allow the priorities to feed into theplanningfortheESIFprogrammesfor2014-20andotherexistingfundingprogrammes.Fourprioritieswereselected:

• Promoteentrepreneurshipandinnovation;• Protect,secureandenhancethemarineandcoastalenvironment;• Improveaccessibilityandconnectivity;• Createasociallyinclusiveandsustainablemodelofregionaldevelopment;

The implementation of the action plan is overseen by the Atlantic Strategy Group(representativesoffivememberstatesandEUinstitutions)whichhastheremittoprovidepolicyguidanceonthestrategyandactionplan.Inaddition,asupportteamfortheAtlanticAction Plan has been createdwhich consists of a network of National Units operating inFrance, Ireland, Spain, Portugal and the United Kingdom coordinated by a central officebasedinBrussels.Theteamprovidesguidanceandproactivesupportforpublicandprivateorganisations,researchinstitutionsanduniversities,institutionalandprivateinvestorsfromtheAtlanticregionwishingtoengageintheimplementationoftheAtlanticPlan.Overthelast18months,thesupportteamhassuccessfullyreachedouttoover4500stakeholders,gathered109projectideasandidentified95fundingoptions.

TheAtlanticStrategyisnowreflectedinthemaritimestrategyofalloftheAtlanticmemberstates, the partnership agreements, ESIF operational programmes and territorialcooperation (INTERREG V). Several flagship projects have been launched through theAtlantic INTERREG programme including MARNET (marine socio-economic network)ACRUNET, MAREN2. Moreover, Horizon 2020 has allocated €70m for transatlanticcooperation with 20 projects funded after the first call in 2015, including Aquaspace,Atlantos(oceanobservatory),Atlas(deepwaterecosystemspatialplanning). Moreover,afirst transatlanticmapping surveywas launched last year, undertakenby the Irishmarineresearchvessel.

4 http://ec.europa.eu/research/iscp/index.cfm?lg=en&pg=transatlantic-alliance


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MsSmythunderlinedthemanybenefitsofthestrategywhichhascreatedastrongerfocuson themaritimeeconomy in the region andhelped topush theblue economyhigher upnational and regional planning, including for ESIF funding. Ocean energy has a hugepotentialthatrequiresmobilisingthescientific,technicalandcommercialcapacitiesofthewholeAtlantic region, includingenergy inter-connection tomoveenergy fromwhere it isproducedtowhereitisneeded.

Inclosing,MsSmythoutlinedthreemainlessonsfromtheAtlanticStrategyarerelevantforfutureNorthSeacooperation:

• Buildonthemomentumyouhaveinplace:thegapbetweenthelaunchoftheAtlanticStrategyandtheAtlanticplanandthenthelaunchofthesupportunit,meantthatsometime was lost and some stakeholders became less engaged or moved on to otherprojectsinotherareas.

• Visibility–don’tlosesightofwhatyouhavedeveloped.ActionstakentomaintainatthepoliticallevelincludearecentjointmeetingwiththeEuropeanParliament.Theannualstakeholder platform event is hugely important in keeping a high level visibility. ThisyeartheeventwillbefocusedonthethemeofentrepreneurshipandthelaunchoftheAtlanticStrategyawards.

• Youneedtobecreativeinfindingfundingfromarangeofsourcesandthiscanbearealchallenge.TheAtlanticStrategyGroupislookingatthisissuecurrently.Muchhasbeendone in embedding the strategy in ESIF operational programmes but accessing othersourcesoffundingposespecificproblemsincludingissuesaroundaligningobjectivessothatpriorityprojectsareeligible.Makingsharedobjectivesexplicitishugelyimportant.

AsecondpresentationsummarisedtheresultsofthesurveyofNorthSeastakeholdersandof thebackgroundpaper prepared for theworkshop.AlasdairReid beganbynoting thatblue growth is a ‘sub-theme’ of economic and innovation strategies in all North Seacountries and in many regions. It is notably high on the political agenda in the GermanNorth-Sea regions, Denmark andNorway,with a particular focus on offshore energy andmaritime(transport)industries.Offshorewindreceivesalotofattentionacrossallcountrieswithshipping,seafoodandoceanrenewableenergyalsofrequentlytargeted.Anumberofcountries/regions have developed ‘roadmaps’ (e.g. blue energy,maritime industries, etc.)and these could provide a basis for North Sea wide match-making and common‘masterplans’.

Themappingcarriedoutforthebackgroundpaperidentifiedadiverse‘shoal’of38clusterorganisationsaroundtheNorthSeaworkinginvariousbluegrowthfields:

• Theseincludeeightclustersineachoftheshort-seashipping,seafood/aquacultureandoffshorerenewablesfields

• Alessvisiblepresenceofclustersinbluegrowth‘servicesectors’(someintourismandwatersports)and‘pre-development’fields(blue-biotechetc.)

• Other cluster organisations in related fieldsmay be relevant for blue-growth sectors:e.g. cross-cutting engineering know-how (sub-sea electrics, corrosion technologies) orlifesciencetechnologies.

There is bilateral and project based co-operation between clusters but not strategicplatforms established on a more permanent or long-run basis. There is also significantactivity of universities and research organisations in blue growth fields. This often occurs


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withinbroaderEU-widepartnerships(e.g.throughHorizon2020),anddoesnotnecessarilyfocusonNorthSeachallengesandopportunities.

Figure3:NorthSeaclusters

Source:BackgroundpaperbyREIDConsulting

Theevidencesuggeststhatexistingtransnationalandinter-regionalcooperationisfocusedon offshore wind and ocean renewable energy with seafood/aquaculture and short-seashipping (green shipping and smart/green ports) also covered by a range of projects orinitiatives.Muchofthepastco-operationhasbeenfocusedonnetworkingandexchangeofexperiencewithstakeholders surveyed indicating theneed fora switch towardsmoreco-investment and co-creation though demonstration actions, cluster co-operation and jointdevelopment of market opportunities as well as more collaborative R&D on targetedprioritiesfortheNorthSeaecosystemandeconomy.

Thethreebreak-outgroupdiscussionswereharvestedandreportedbackusingacommonframework.Thefigurebelowsummarisestheharvestedresultsofthediscussions,includingthreeprioritythemesforfuturestrategictransnationalcooperationintheNorthSeaarea.


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Figure4:summaryofbreak-outsession1conclusions

PrioritisingtransnationalcooperationinBlueGrowthvaluechains

Fivekeylessonsfrompastandcurrentcooperation

• Break down ‘silos’ between regions, sectors, stakeholders – implying need to mobilise‘quadruplehelix’andworkatimprovingmulti-levelgovernance.Thiscanincludeexploringnewwaysoflinkingupstakeholders(socialmedia,crowd-funding/sourcing,etc.)

• Enhancebusinessinvolvementandactiveengagementthroughdemonstrationactions,etc.• There is not necessarily a need for a strategy but there has to be political commitment for

strategiccooperationonanumberofclearurgentissues.• Strategicco-operationshouldbedrivenbybottomupneedsandthisrequiresthatBlueGrowth

ishighenoughonnationalandregionalpolicyagendas• Lackofanintegratedapproachwithfragmentedfundingfromvariousprogrammesimpliesthe

needforanorganisedsupportatseabasinlevel(e.g.AtlanticSupportteam).

DriversofbluegrowthintheNorthSeaarea

• Combined know-how on Blue growthsufficient to address common needs (e.g.vesselsforthefuture)

• Better regulation (e.g. related toenvironment,energy,climatechainetc.)asadriverofnewvaluechains

• Cluster cooperation can structure valuechains&fosterbusinessmatchmaking,etc.

• High value added sectorswith internationalpotential, for instancecreatinga ‘NorthSeamaritimequalitybrand’

Barrierstostrategictransnationalcooperation

• Vested interests and competition in bluegrowthfields

• Non-alignmentofnationalpolicy‘systems’&frameworks

• Lackofacommonvisionon‘urgentissues’• Sloworunevenimplementationofmaritime

relatedlegislation• Difficulties in combining funding from

varioussources

Prioritythemesforfuturetransnationalcooperation

• Naturally‘derived’productsfromthesea

à Securingthelong-termpotentialoftheNorthSeaasasourceofnutritionandhealthbenefits

• Cleanmaritimeoperations(shipping,ports,etc.)

à Maintaining the competitive position of North Sea maritime sector by minimising theenvironmentalcoststoindustryandsociety.

• Skills&technologieswithmulti-useapplicationsforBlueGrowthvaluechains

à Exploiting the potential for applying new methods (e.g. big data applications), land-seatechnologyandeconomic‘cross-overs’andrenewingtheskillsbaseoftheblueeconomy.


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Session 2: Designing and developing transnational cooperation platforms for Blue Growth Building on the priority selection process conducted in day 1, the second session of theworkshop aimed to further develop ideas on promoting strategic cooperation for eachprioritytheme.TheparticipantsdiscussedhowtodevelopacooperationplatformonBlueGrowthwhich isofaddedvalue toallactorsandbenefitsoneormorebluegrowthvaluechains.Thediscussionalsoaddressedhowtomobilisebusinessestobeinvolvedinorleadtransnationalcooperation.

Thesessionbeganwithtwobackgroundpresentations,thefirstpresentingtheexperienceofaregioninitsefforttooptimisesustainablebluegrowthvalue;thesecondprovidingkeyfindings from research on howmaritime value chains and industries transformover timeandcreatevalue.

Richard Korteland, Vice-Mayor of Drechtsteden and representing the Dutch NetworkMaritimeTopRegion,outlinedavisionofhow‘cross-oversandecosystems’arekeystothefuture blue economy. The Drechtsteden region has a population of some 300,000inhabitantsinthemiddleoftheDutchdeltaareawiththeislandofDordrechtdelimitedbythe rivers Rhine andMaas. The unique natural environment, the densely populated andindustrialisedhabitatandthecombinationofmaritime(shipping,ports, inlandwaterways)and ‘land-based’ industries and know-how provide an interesting example of challengesfacedbycoastalregions.

Theregionisseekingtocreatenew‘ecosystems’thatcombinetheexpertiseofvariousland-sea sectors such as composite technologies from the aerospace industry being applied inthemaritimesector. MrKortelandunderlinedthat thedevelopmentofsuch“cross-over”opportunitiesrequiresthemobilisationofallstakeholdersandpoliticalleadershipasoftenbusinessesdonotsee initially therelevanceofsuchcross-sectoralplatforms.Anotherkeyelementintheapproachisnottoonlyfocusontheoreticalideasbuttodeveloplarge-scaletests or demonstration actions. The Drechtsteden region has developed a number of‘fieldlabs’, which are industry led demonstration centres. In terms of finance, the Dutchregionaldevelopmentboardisthemainsupplierofriskcapitalandtheregionispromotingashifttowardrevolvinginvestmentfunds.Thepublicauthoritiesshouldbealerttolawandregulationsthathinderorpromotenewbusinessmodelsrelevantfortheblueeconomy.

MrKortelandunderlined that his regionwelcomes theopportunity to share facilities andexperienceand learn frompastcooperation todevelopmorestrategiccooperation in theNorth Sea. To this end, he called for a reinforcement of ‘open source’ approaches thatensure that knowledge and data is shared as well as a stronger focus on jointcommercialisationofinnovation.Thereareanumberofareaswhereitwouldbebeneficialto build ecosystems and cooperation platforms around the North Sea. Regionalgovernmentscanplayaroleasbrokerstohelpputtogethertherightpartnersandthroughfinancialinstrumentsreducetheinvestmentriskfortransnationalprojects.

Thomas Roslyng Olesen, Assistant Professor at Copenhagen Business School’s MaritimeBusiness in Society Platform, drew on research into the changing business models andcooperation platforms in the Danish maritime value chains to explore the potential forindustry led transnational cooperation. Mr Olsen began by underlining that in recentdecades the Danishmaritime sector haswitnessed a shift away frommanufacturing and


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standardisedservicestowardsthehighervalueaddedpartofthevaluechain(seeFigure5).Muchofthemanufacturinghasmoved‘offshore’(tolowercostcountries)andthishasledto a consolidation and amore complex structure of business groups (also in part due toforeigninvestmentandchangingownership).Fromoneperspective,thiscanbeconsideredtohaveweakenedtheDanishmaritimecluster.

Figure5:valuechainsandglobalisation

On the other hand, as illustrated by the changing structure and business models of anumberofthemainDanishmaritimeplayersinthe1980sand1990s,entrepreneurshiphasdrivenchangeover time towardsnewmorespecialisedandhighervalueaddedactivities.This has notably led to traditional maritime companies looking cross-sectorally forknowledgesharingandtoopportunities in relatedtechnologies indifferentsectors (e.g.amarineboilercompanywhichisnowinvolvedinsolartechnologies). TheevolutionoftheDanishmaritimeclusterunderlines theopportunities thatcanarise fromcross-sectoralormulti-usetechnologies. BroadeningsuchtrendstotheNorthSealevelwouldsuggestthatthere are significant opportunities for cooperation in developing newbusinessmodels orshiftingtohighervalueactivitiesinexistingmaritimesectorsorland-seacross-overs.

Intermsofthetypeofpublicsupportthatcouldfacilitatesuchbusinessledcooperation,MrOlsen suggested that the problem solving potential of collaboration increases with thediversityofknowledgeofthepartners,againunderliningthepotentialgainsfromNorthSeacooperation.He also argued thatpast research suggests that there are gains tobemadefromcross-sectoralcollaboration.However,thereisaneedtobeawareofthebarrierstoprivate businesses engaging in longer-term strategic cooperation including the problem

2

What are the main competitive challenges and strategic development possibilities for companies in the Blue Denmark?

Challenges and opportunities are closely related to globalization

Source: Mudambi (2008): Location, control and innovation in knowledge-intensive industries. Journal of Economic Geography (8), pp. 699–725

Location 1 Location 2 Location 3 Location 4 Location 5

Value Chain Disaggregation

Basic and Applied R&DCommercialisationDesign

MarketingAdvertisingBrand ManagementSpecialised LogisticsAfter-Sales Services

ManufacturingStandardisedServicesR&D

Knowledge

Marketing Knowledge

AddedValue

• Developing new products and services• Expanding from the home market to new markets• Establishing a global organisation• Weakening of the cluster?


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related to different norms and information or managerial gaps. There is a need forintermediariesorbrokerswhosupportsearchandmatch-makingandhelpaccessfunding.

Following the presentations, the participants divided into three groups to discuss theselectedprioritythemes.Eachgroupwasaskedtodiscuss:

• what are the specific barriers or opportunities that can be tackled by transnationalcooperation or investment; and/or what complementary know-how or technologiesexistthatcouldbecombinedtoboostBlueGrowthpotentialintheNorthSeaarea?

• Whatarethebestmethodstomobilisebusinesstobecomeinvolvedinorleadstrategictransnationalcooperation inBlueGrowth(e.g.roleofclusterorganisationsasbrokers,mobilising major companies located in several regions to encourage involvement ofsupplierfirms,etc.)?

• How can strategic cooperation be best accelerated? (e.g. large-scale demonstrationactions, developing strategic road-maps, public-private platforms on cross-cuttingtechnologiesrelevanttoseveralbluegrowthsectors)?

Attheendofthesession,thegroupsworkedtoreachaconsensusonanumberofpriorityactions that could be taken forward to establish strategic cooperation. As for the firstsession,theharvestersforeachbreak-outgroupcompiledthefindingsinacommonposterstructure.Theconclusionsofeachgrouparesummarisedinthefollowingfigures.

Figure6:Cleanmaritimeoperations

Theme:Cleanmaritimeoperations(shipping,ports,etc.)

Basisforstrategiccooperation

• The North Sea region has unique strengths in multi-purpose and specialised vessels (e.g.dredging,offshoresupply,etc.)andalternative-fueltechnologiesandhybridvessels

• Weaknesses include skills transferability between countries and sectors and the overallattractivenessofthesector(althoughthereisapositivetrendinsomecountries)

• Thereisaneed/opportunitytopositiontheNorthSearegionasadriverofstandardsinmulti-purpose/specialisedvesselsandinprofessionalqualifications(IMO).

Acommonvision

Optimising green economic growth intheNorthSeamaritimesector

Mobilisebusinessintransnationalcooperation

• Focusonprofitability-actionsthatreducecoststobusiness

• Use the network of well-functioning clusterorganisations

• Prioritise one or two challenges and avoidfragmented approaches – ensure early businessengagement.

Priorityactionstopromotestrategiccooperation

• There is a need for a more detailed mapping of expertise and know-how to identify allrelevantclusters,universityandtrainingexpertise,keycompanies,etc.

• Ensure that the theme is given a political priority (e.g. similar to recent North Sea energyagreement)atNorthSealevel

• Engagement actions with industry – ‘roadshow’ at industry conferences rather thanorganisingpolicyforumandtryingtoattractsomecompanies


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Figure7:Naturalderivedproductsfromthesea

Theme:Naturalderivedproductsfromthesea


• A number of inter-linked value chains exist that draw on different natural resources (fish,shellfish,seaweed,etc.)

• Furtherresearchandinnovationcansupporttheexploitationofnewnaturalproducts(food,healthcare,etc.)forfuturegenerations

• Amoredetailedmappingwouldhelpidentifythebasisforkick-startingstrategiccooperationonnaturalproducts–thisshouldcoverscientificknow-how,clusterspecialisation,etc.andbecross-sectoral/technological.

Acommonvision

Create a better future value chain ofnatural derived products from theNorthSea.


• Createabetterorganisedecosystembydevelopingmore interdisciplinary networks and by helpingclusterstointernationalise

• Identify‘innovationhubs’thatcanprovideservicestoNorthSeacompaniesactiveinnaturalproducts


• Political level:Agreeonstrategicsynergiesthatrequireatransnationalapproachinordertofullyexploitthepotentialinthisarea.Thiscouldbedonebydevelopingastakeholderforum,e.g. buildingon theNorth SeaCommissionnetwork, involving regional authorities, etc. andcoulddrawonsmartspecialisationstrategiesinplaceintheregions.

• Operationallevel:launchcross-cuttingworkinggroupstodevelopstrongerlinkagesbetweenclusters and important businesses in the North-Sea region. Identify and showcase successstoriesandlaunchmatch-makingevents

Figure8:Skills&technologieswithmulti-useapplicationsforBlueGrowthvaluechains

Theme:Skills&technologieswithmulti-useapplicationsforBlueGrowthvaluechains


• Strengths includeastrongpublicsectorsupporting investmentsandmanystrongclusters indiversefields.

• A number of success stories of entrepreneurship and new businessmodels and successfulcross-oversexist,theseneedtobepromotedandreplicated.

• Weaknessesincludelackofcommonknow-how,accesstomaritimeandenvironmentaldata,insufficientclusterco-operationsandtendencytoengagein‘projectshopping’.

Acommonvision

To maximise the entrepreneurialpotential in the blue economy tobetter our region in the globaleconomy.


• Internship programme (ERASMUS type) for youngemployeesinbluegrowthsectors

• Summer schools for businesses in blue growthtopics(e.g.seeUniversityofGhentexample)

• Develop a knowledge and innovation communitytype model for triple helix cooperation in bluegrowthfortheNorthSea


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• Target cooperation on solutions to urgent problems than combine expertise from multi-sectors,etc.–suchas(micro-)plasticsinthemarineecosystem.

• Adoptacommonapproachtomarineecosystemplanning–requirespoliticalagreement• Moresystematicuseofplatformstogather(crowd-sourcing)andlaunchideasanddisruptive

processes–NorthSeainnovationfestival?• Develop first an inventory of all existing facilities as a basis for co-investment in joint ‘field

labs’orscalableinfrastructuresandtestfacilities.• Optimiseland/seavaluechainsviauniversity-businesscooperation,e.g.bigdatafordrilling.

Session 3: Mobilising funding for strategic cooperation flagship actions Buildingonthefirsttwosessions,thethirdbreakoutsession3examinedavailableoptionstomobilisepublic-private funding for strategicBlueGrowthcooperationand,particularly,howtoattractprivateinvestorstoinvestthroughinvestmentplatforms.Thediscussionalsoaddressed whether there are regulatory or legal obstacles to strategic cooperation. Theexpectedoutcomewasanagreementon2-3priorityflagshipcooperationactions.

The session was opened by a presentation from François Gaudet, Loan Officer, NewProducts and Special Transactions Department, European Investment Bank. Mr Gaudetpresented the experience of the development of a first Investment Platform on GreenShipping. The Green Shipping Guarantee (GSG) programme is a first example of thedevelopmentofasectorfocussedpan-Europeanfinancingplatforminthebluegrowthfield.It grewoutof theneed for the shipping sector tomeetnewsulphuremissionand futureballast water treatment regulations. Initially the EIB engaged with stakeholders in fourcountries (France, the Netherlands, Sweden and Finland) to identify market gaps andfinancing barriers in order to develop the new financial instrument. The main aim is toreducethecreditriskoftheloanstotheshippingindustry.However,asMrGaudetstressed,itisatargetedinstrumentseekingtoencourageinvestmentingreenertechnologiesandnotaninstrumentthatcansolveindustryfundamentals.

Thedevelopmentoftheplatformtookseveralyearsandtheinitialmodelproposedhadtobe adjusted as commercial lenders were not willing to adopt a portfolio and riskmutualisation approach. Hence, the option of providing a guarantee for senior andsubordinate obligations with a high rate of guarantee for the green components ofretrofitting operations was finally adopted. The overall funding approach by the EFSIinvestmentcommitteeandtheEIBinJune2016isfora750millionguaranteeprogramme(to support total investment of around €3 billion) with the initial pilot run in the fourcountriesmentionedabove.

Inclosing,MrGaudetunderlinedthatguaranteeorinvestmentplatformsrequireacertainscale of ‘bankable projects’ and that their development takes time to ensure that theinstrument is tailored to the market needs of the targeted sector. In theory, such aninstrument couldbeapplicable forbluegrowthpriorities in theNorthSeabut thiswouldrequirefurtherin-depthanalysisbeforedevelopingaproposal.


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Followingthepresentation,theparticipantssplit intothethreethematicbreakoutgroups,withdiscussionsstructuredaroundthreekeyquestions:

• To what extent do existing funding programmes provide complementary forms ofsupport at different points of BlueGrowth value chains? Are there funding gaps (forspecific typesofactions)or issues incombiningmainstreamfundsthatunderminethepotentialforBlueGrowthstrategiccooperation?

• Isthereaneedfornewinstruments(e.g.equitytypefinancingorguaranteeagreementsvia the EIB or EIF), investment platforms (to gather projects below the €25 millionthresholdforfundingthroughtheEuropeanFundforStrategicInvestment),etc.?

• How importantareregulatoryor legislativebarriers indrivingor impedingvaluechaindevelopment? Isthereaneedforstakeholderstructuresattransnational leveltoalignregulatoryframeworksandfosterBlueGrowthpartnerships?

Theresultsofthediscussionsaresummarisedinthefigurebelow.

Figure9:summaryofsession3-futureflagshipactions

Theme:shortseashipping/aquaculture&food/bluebiotechnology/other

Identifyingfundingneeds

• Additionalscopingworkisrequiredtoidentifyfundingneedsatdifferentpointsinbluegrowthvaluechains

• Alignment of funding programmes priorities with strategic cooperation priorities agreed byNorthSeacountries

• Combine strategic investments made from a longer-run perspective with easier access tocommercial or equity investments for the threeblue growthpriority areas –potentially someformofinvestmentplatform.

• Dedicated research and innovation programme targeted at multi-use technologies for bluegrowthintheNorthSea(drawingonexperienceofBonusProgrammeinBalticSea)

Whatsortoffinancialinstrumentsarerequiredtosupportfuturetransnationalcooperation?

• Many instruments already exist and a firststepistomapwhatisavailableandhowthefinancial means could be mobilised tosupportNorthSeastrategiccooperation

• Develop an online portal to provide NorthSea blue growth stakeholders with a one-stopshoptohelpaccessfinancialsupportfortheiractivities.

What supporting actions are needed to fosterstrategiccooperation?

• Create a North Sea Cooperation Supportteam(modelledonAtlanticexample)

• Formapilotgroupforeachprioritythemetofurther develop the ideas generated duringtheworkshop.

• Extend and deepen mapping of know-how,expertise, clusters, pivotal companies,funders,testbeds,R&Iinfrastructures,etc.

Possibleflagshipactions

• setting up a transnational partnership between clusters, businesses, universities and otherknowledge and education providers for blue growth, modelled on the existing European'KnowledgeandInnovationCommunities';

• pooling funding in a Joint Programming Instrument to invest in transnational blue growthinnovationprojects;

• includingabluegrowthpriorityaxisandbluegrowth flagshipoperationswithin the INTERREGNorthSeaprogramme;


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• settingupacross-borderfinancialinstrumenttosupportbluegrowthdemonstrationprojectsintheNorthSea;

• creating a competition for innovative cross-over solutions for blue growth targeting, inparticular,youngpeople;and

• settingupaschemetoplaceyounggraduatesasinnovationassistantsinblueeconomySMEs.

Conclusions and way forward On behalf of the CPMR, the North Sea Commission President, Kerstin Brunnströmhighlightedsomeconclusionsshedrewfromtheevent.Shebeganbyunderliningthattheeventwas verymuch in linewith the objectives of theNorth Sea Commission’s recentlyrevisedstrategydocumentNSR20205.TheNSR2020isdesignedtoensurethatthestrengthandcompetitivenessoftheNorthSeaRegionismaintained,andtheregionfurtherdevelopsas a sustainable andattractive regionwhich is anengine for growth in Europe. Thus, theobjectiveofthestrategyistofocusontransnational issues,wherethereisaddedvalueinworkingcollaboratively.MsBrunnströmalsodrewtheattentionof theparticipants totherecent‘LEGOLANDdeclaration’6whichcallsontheEUMemberStatesandNorway,togetherwiththeEuropeanParliamentandtheEuropeanCommission,tothetakenecessarystepstoformaliseacooperationplatformforthecountriesandregionsaroundtheNorthSea.

In summing up, Kerstin Brunnström, listed a number of needs that had been identifiedduringtheworkshop,shestressed:

• theneedforaclearPoliticalwillanddirection,usingtheNorthSeaRegion2020Strategyasanexample

• the need for compilation of knowledge and data about the sea and the marineenvironmentandtomakeitavailableforstakeholders.

• the need for mapping of support structures, both physical such as test beds, andimmaterialsuchaspossibilitiesoftrainingandeducationine.g.entrepreneurship.

• theneed formatchmaking, for support to findpartners,within or outside the sector,within(orratheroutside)theregionandnation.

• theneedforsuccessstories,resultsfromcooperationthatshowthebenefits,thatit isworthwhileparticipatinginprojects.Thesesuccessstoriesshouldreachoutandattractnewstakeholders,sotheyhavetobewellexposedandmuchtalkedabout.

• Andtohavetheseflagships,thereisaneedforgoodprojects,thatareatthesametimenecessary and innovative and crossing borders, drawing on the NorthSEE-project, amultisectoral, multinational project on Maritime Spatial Planning as an example.MaritimeSpatialPlanning,isonlyoneofseveralareascentraltostrategiccooperation.

• thereisaneedforlessbureaucracyandaneasierwaytocombinefundingforespeciallySMEs,tobeabletohangontotransnationalandtrans-sectoralcooperation.

KerstinBrunnströmnotedthattheworkshopparticipantshadsuggestedthattheCMPRNSCcouldprovidesupporttofuturestrategiccooperationbybuildingontheexistingbottom-upstakeholder network.However, she noted that current resources limitwhat can be done

5 http://northsea.org/index.php/documents/doc_download/1179-revised-nsr2020-draft 6 http://northsea.org/index.php/documents/doc_download/1176-legoland-declaration-building-blocks-for-the-future


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andsuggestedthattheAtlanticmodelwithasupportstructureforfacilitatingprojectsandcooperationprovidesagoodexampleofacoordinationmechanismfortheNorthSea.

OnbehalfoftheEuropeanCommission,ClausSchultzethankedtheCPMRandtheEuropeanParliament for their initiative and support for the Participatory Action. He informedparticipants that aworkshop reportwill bepresented to theEuropeanParliament's Seas,Rivers,IslandsandCoastalAreasIntergroupforfurtherdiscussiononthewayforward.Theoutcomeswillfeedintopolicythinkingonwhattypeofinitiativesshouldbefundedunderexistingprogrammesandwhatsortofnewinstrumentsarerequired.

MrSchultzealsothankedalltheparticipantsfortheircontributiontowhathadbeenadayandahalfof intense,highly interactiveand rewardingdiscussions.Heconcluded that thekeyrecommendationistheneedtore-energiseNorthSeacooperationforbluegrowthbyfocusingona limitednumberof joint strategicprioritiesandmarketopportunities,whichshould be used to structure future cooperation and move from focus on individual,disconnectedprojectstoafocusonprocessandaportfolio-typeofinterconnected,strategicprojectstodrivenewbluegrowthforwardinspecificopportunityareasinastructuredway.Henotedthatthedelegateshadidentifiedthreesuchprioritytopics:

• naturally‘derived’products(marinefoodandproductsfrommarineresources);• cleanmaritimeoperations(shipping,ports,etc.);and• innovativecross-sectorsolutionswithmulti-useapplications.

The workshops discussions had also highlighted the need to encourage public privatepartnerships with an emphasis on cooperation across clusters and sectors, as a way tobetterexploittheinnovationpotentialoftheblueeconomyandtorenewitsskillsbase.

ThediscussionsonhowtotakeNorthSeacooperationonbluegrowthforwardgeneratedseveralcreativeideasandrecommendations,asmentionedundertheflagshipactions.

In closing, Claus Schultze, underlined that he hoped the participants would build on theideas generated and view them as an opportunity to further develop jointly ideas forstrategic cooperationactions that could go forward to theBlueTech call or seek supportunderotheravailablefundingstreams.


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Further information:

Conferencewebsiteincludingpresentationsandbackgroundpaper:

http://thehague.maritimecooperation.eu

Directorate-GeneralforMaritimeAffairsandFisheries:http://ec.europa.eu/maritimeaffairs/policy/sea_basins/north_sea/index_en.htm

ConferenceofPeripheralandMaritimeRegionsNorthSeaCommission

http://www.northseacommission.info/

EuropeanParliamentSeas,Rivers,IslandsandCoastalAreasIntergroup:

http://searica.eu/en/

Disclaimer:Theinformationandviewssetoutinthisreportarethoseoftheauthor(s)anddonotnecessarilyreflecttheofficialopinionoftheEuropeanUnion.NeithertheEuropeanUnioninstitutionsandbodiesnoranypersonactingontheirbehalfmaybeheldresponsiblefortheusewhichmaybemadeoftheinformationcontainedtherein.

Reportpreparedby:RegionalEconomic&InnovationDynamicsConsultingSPRLAvenueMauriceMaeterlinck12B-1348Louvain-la-Neuve,BelgiumEmail:[email protected]

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