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

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:

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

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.

RIBS - Project Population in Oulu Region Population City of Oulu is around (2013) and it´s surrounding including (50 km) app Oulu International Airport is 2. largest in Finland Oulu University, 2. largest in Finland Number of Hi-tech businesses in Oulu Region (18 %) Hi-tech jobs in Oulu Region (21 %) Average population density: 11 inhabitants/km 2 Economic Structure: Services 66%, Manufacturing 22%, Construction 6% and Agriculture and forestry 6% (Labor force by occupation )

RIBS - Project 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 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. 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

RIBS - Project How SMEs were selected ?

RIBS - Project Interviewed SMEs Recycling electronics1 Biotech1 Software5 Cleantech2 Wood products3 Energy technology1 Testing and approvals1 Access control systems1 Stone products1 Medical devices2 Maintenance services1 Robotic systems1 Engineering workshop2 Interface production1 HVAC automation1 Lead light fittings1 Recycling electronics1 Biotech1 Software5 Cleantech2 Wood products3 Energy technology1 Testing and approvals1 Access control systems1 Stone products1 Medical devices2 Maintenance services1 Robotic systems1 Engineering workshop2 Interface production1 HVAC automation1 Lead light fittings1 SMEs to internationalisation Software2 Energy technology1 Testing and approvals1 Medical devices1 Robotic systems1 Engineering workshop2 Interface production1 Lead light fittings1 Software2 Energy technology1 Testing and approvals1 Medical devices1 Robotic systems1 Engineering workshop2 Interface production1 Lead light fittings1

RIBS - Project How interviewing was done ? 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 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

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.

RIBS - Project 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 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 First pilot tool of internationalisation

RIBS - Project First pilot tool of internationalisation 2. Process and Product Production capacity Certificates (e.g. CE-mark) Is the product protected? Quality management system? Marketing and sales channels 3. Resources Equipments and Premises Human resources Marketing resources Financing 4. Financing Is financing secured? Share of self-financing Possible external financers Share of public financing Requirements of the legislation Materials Technical requirements Customer requirements Support, services and maintenance Product documentation Additional questions of product readiness

RIBS - Project Rural area SME support process – Steps 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 Project team Consultant Participants: Project mgr SME representative Development and financial plan for funding application

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  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

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 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

RIBS - Project  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 SMEs based 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  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 SMEs based 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 What next?

RIBS - Project WAITING FOR SUMMER ! THANK YOU !