Lessons from Öresund Regional Innovation System on Cleantech

Lessons from Öresund Regional Innovation System on Cleantech Development, Cross-border Cooperation and Academic Entrepreneurship Уроки Инновационной Системы Эресунна Чистые технологии, Транс-граничное сотрудничество, Научные инновации by PETER KIRYUSHIN

Source: IIIEE 2011

Research question: What could be learned from Öresund from the perspective of cleantech, cross-border cooperation and academic entrepreneurship?

Step 1: Literature review on cleantech, academic entrepreneurship and cross-border innovation system Step 2: Interviewing experts in entrepreneurship and innovation, researchers, business people

Step 1: Results of the literature review Preliminary lessons from Öresund for policy -makers in other regions Step 2: Results of the interviews Stages of the cross-border collaboration in innovation and entrepreneurship

ÖRESUND LOW-CARBON GOALS • Sjælland -20% GHG by 2020 (to 1990 level) Skåne -30% GHG by 2020 (to 1990 level) • Lund -50% GHG by 2020 (to 1990 level) • Ballerup 25% RES by 2015 • Kristianstad • København carbon-neutral in 2025 • Albertslund -25% GHG by 2015: -20% GHG by 2020 1990 level) • Malmö 100% RES by 2025 (t

Literature-based lessons from Öresund 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. Invest more public funds in concrete goals-oriented research Create a public and private demand for cleantech innovations Support new environmental strategies and promote cleantech Promote small and medium enterprises, related to sustainability Involve citizens and develop new cultural and behavioral patterns Create triple-helix network collaboration for real practical outcomes Develop changes in academia for applying open innovation approach Promote new financial schemes to attract more innovators and investor Establish effective guidance and consultancy for sustainable innovations Develop competence building and specific education for entrepreneurship

Literature review provided generally positive knowledge on the Öresund RIS development, based on the studying of the past trends Interviews gave the different perspectives. “Pieces of puzzle”, concerning the current stage and the future, based on the individual experience, research results and personal reflections

What cleantech is? Зеленые решения? Strategies for cleantech–industry collaboration Стратегии продвижения? Skepticism about the future transnational collaboration Скептицизм! Öresund Entrepreneurship Academy and LUIS Примеры развития инноваций Are social innovations coming? Социальные инновации Development of crossborder relations takes time Социо-культурное сотрудничество требует времени Entrepreneurship then and now Предпринимател ьство до и после When networks and clusters are efficient? Насклько эффективны сети и кластеры? Biotech companies moved to more attractive regions! Биотех компании переехали!

Stages of cross-border innovation collaboration 1990’s – mid 2000’s: policy-cooperation, rise of biotech & pharmaceuticals, bridging the sides mid 2000’s – nowadays: sober view on the networking, scientific and economic results of cooperation nowadays – the future: “climate-smart region”, role of cleantech development and entrepreneurship?

Lessons for Green Growth Arena? • Medicon Valley Alliance? – The only sucesfull case? • Need for Branding! • Strategic thinking • Russian approach?

• TAK! • TACK!

Kiryushin Peter Lomonosov Moscow State University, Deparment of Economics Кирюшин Петр МГУ им М. В. Ломоносова, экономический ф-т

International collaboration project for the green growth in Kaliningrad region: energy efficiency, renewable energy, waste management Проект международного сотрудничества для зеленого инновационного роста Калининградского региона: энергоэффективность, возобновляемая энергетика, управление отходами TARGET AUDIENCE ЦЕЛЕВАЯ АУДИТОРИЯ Administrations Гос. управление Бизнес Companies Int’l partners Межд. партнеры

Who our people work for and who do we work with Где работают участники нашего проекта и наши партнеры Institute of Sustainable Development

Further economic development of Russia requires green growth • • Russian official targets = GG Shift from resource-based economy Medvedev: need for green economy Energy efficiency is a key Potential for GHG reduction Need to learn practices from abroad and promote it in Russia © Prof S. Bobylev, Moscow State University Дальнейшее экономическое развитие России предполагает зеленый рост • Официальные цели РФ = зел. рост • Переход к новой экономике • Медведев: зеленая экономика! • Энергоэффективность • Снижение выбросов • Нужны лучшие межд. практики • и их продвижение в России (с) Проф. С. Н. Бобылев, МГУ им. М. В. Ломоносова

Why Kaliningrad region? Почему Калининградская обл. ? Opportunities for int’l partnership Возможности для партнерства Need for the development Необходимость развития Attractive economic policy Экономическая политика Renewables Проекты ВИЭ

In order to promote green growth and sustainable development in Kaliningrad region experience of Scandinavian regions plan to be utilized, in particular, of the Bornholm “Bright Green Island”. Для продвижения технологий зеленого роста в Калининградском регионе предполагается использовать опыт регионов Скандинавии, в частности, датского «ярко зеленого острова» Борнхольм.

Bornholm before mid 2000 th Борнхольм до середины 2000 -х • Not very promising region, especially comparing to the whole Denmark • Не слишком перспективный в социально -экономическом плане регион Дании • Dependence on tourism, which has the seasonal fluctuations • Decreasing of population, youth is not interested to stay on the island Borhnholm • Зависимость от туристического сектора, имеющего сезонную активность • Снижение численности населения, нежелание молодежи оставаться на острове Kaliningrad region

“Bright Green Island” development 1. Regional Growth Forum 2. Identification of opportunities: wind energy, energy efficiency and other cleantech 3. Strategy and brand 4. Bright Green Citizenship/ Industry/ Engineering 5. Support from Denmark, EU business. Развитие «Ярко Зелного Острова» 1. Региональный Форум Развития 2. Определение возможностей: ветроэнергетика, энергоэффективность и др. 3. Стратегия и Бренд 4. Ярко Зеленое Гражданство/ Промышленность/ Инжиниринг 5. Поддержка Дании, EC, бизнеса

BORNHOLM Bright Green Island Произв одство энергии Инженер ные решения Управ ление отход ами • Централи зованное отопление (Солома) Электро машины Промышл енность Green Solution House 40 % Ветро энергии Тепло насосы Автомат изация Энерго обновлен ие Edison & My. Car Стиральные машины Геотерма льная станция Bio. Power Произв одство энергии Зеленое строител ьство Еда Биомасса Лососевый инкубатор Солнце & Ветер Offshore Wind Power Источник: Bornholm Business Center, 2011 Лососе вая ферма

Our solutions 1. Organization of the Green 1. Growth Council in Kaliningrad region, which includes regional, federal and international stakeholders 2. Development of the strategy 2. and brand 3. 3. Coordination and promotion of the projects Наши предложения Создание Совета по зеленому росту Калининградской области из региональных, федеральных и иностранных партнеров Разработка стратегии и бренда Координация и продвижение проектов

Kaliningrad region generation assets prospects in 5 years Looking into Kaliningrad region generation facilities development until 2016 program § Renewables potential in Kaliningrad region is estimated at 200 MW 1 for wind capacities and min. 40 for small hydro. 450 § All the projects are non-budget funded. 50 Capital construction § Particularly, the sum, required for co-generation plants is estimated at 15 RUR bn. level. Commissioning (MW) Baltic nuclear PP construction 2 300 Co-generation PP construction Wind-farm construction Totally: 2 800 What we suggest § To maximize the renewables share (additional 100 MW for wind farms and 40 MW for small hydro) by reducing the portion, attributed to heat and power plants (from 450 to 310). Effect observed RUR bn. Fuel costs savings 0, 47 annually Not invested in 140 MW of cogeneration 4, 67 Invested in 140 MW of renewables replacing 8, 32 The difference would be erased in (payback period) Ecological effect (standard fuel not burnt) § Conservative Neutral Favorable 7, 75 yrs. 5, 38 yrs. 3 yrs. 235, 6 ths. t/year § Will be partially solved the problem of additional resources delivery to meet the fuel needs of power co-generation. Even such a "revolutionary" step does not help to reach the target level of 4. 5% (≈170 MW) in the development of alternative energy sources, set in Russia's national development plan in 2020, but it will be a “giant leap” in the development of renewable energy equal status along with traditional sources. P. P. Bezrukov estimate Conservative case involves $2 m per MW of wind installed capacity and $1, 5 m per MW of small hydro, neutral – 1, 75/1, 25 and favorable – 1, 5/1, 25, respectively 1 2 26

What is the problem that we’re solving for Kaliningrad region? February 21, 2012 - dumping of tires in p. Melnikovo, Kaliningrad * May 10, 2012 - Dune Park “Kurshskaya kosa” was dumped with old tires May 11, 2012 - tire recycling facility was burnt in Zelenograd district August 3, 2012 - the first modern landfill was built in Neman district of Kaliningrad region Valentin Balanovsky : 30% of waste is sent for recycling, and 70% - for landfill * According to the "Green Patrol", Kaliningrad region is the 52 th place in the sustainable development index The index looks at the state of the environment, power efficiency, the level of civil initiatives and responsible business Kaliningrad region requires used tires recycling facilities 3/17/2018 Moscow School of Management SKOLKOVO 27

Executive summary Project Used tires recycling plant What are the required resources? What is the problem? Investment Strict control over environment No administrative barriers Used tires are dumped in forest areas of Kaliningrad region Not enough recycling facilities to solve environmental problem What is our solution? Used tires recycling plant by Danish equipment producer Eldan recycling What is the goal? Total capital investment: $ 3, 7 MLN Investment period: 2013 IRR = 39. 29% NPV=22 mln rub PBP = 3 Y 5 months Environmental improvement Increase of ecological rating of Kaliningrad Region Energy efficient facility 3/17/2018 Moscow School of Management SKOLKOVO 28