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STATEOFTHEREEGIOIONNRERPEOPORTRTMTTM<br />
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2009<br />
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Boosting the Top of Europe<br />
Key messages<br />
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The Baltic Sea Region has been hit disproportionately hard by the global crisis but is now<br />
expected to rebound quicker than others<br />
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The impact of the crisis is<br />
Foreword<br />
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The 2009 edition of the State of the Region<br />
Report o?ers like most economic reviews over the<br />
past 12 months troubling but essential reading.<br />
The Baltic Sea Region has been hit hard by the<br />
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Table of contents<br />
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Key messages <br />
Executive Summary<br />
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<br />
The 2009 State of the Region Report, the sixth<br />
in this series of annual evaluations of competi-<br />
tiveness and cooperation across the Baltic Sea<br />
Region, provides a perspective on th<a title="BDF SoRR 2009 page 1" href="http://www.zmag.dk/showmag.php?mid=rqpgdt&pageid=1"> STATEOFTHEREEGIOIONNRERPEOPORTRTMTTM 2009</a> Boosting the Top of Europe
<a title="BDF SoRR 2009 page 2" href="http://www.zmag.dk/showmag.php?mid=rqpgdt&pageid=2"> Key messages The Baltic Sea Region has be</a>en hit disproportionately hard by the global crisis but is now expected to rebound quicker than others The impact of the crisis is
<a title="BDF SoRR 2009 page 3" href="http://www.zmag.dk/showmag.php?mid=rqpgdt&pageid=3"> Foreword The 2009 edition of the State of the R</a>egion Report o?ers like most economic reviews over the past 12 months troubling but essential reading. The Baltic Sea Region has been hit hard by the
<a title="BDF SoRR 2009 page 4" href="http://www.zmag.dk/showmag.php?mid=rqpgdt&pageid=4"> Table of contents Key messages </a>
<a title="BDF SoRR 2009 page 5" href="http://www.zmag.dk/showmag.php?mid=rqpgdt&pageid=5"> Executive Summary The 2009 State of the Region </a>Report, the sixth in this series of annual evaluations of competi- tiveness and cooperation across the Baltic Sea Region, provides a perspective on th
<a title="BDF SoRR 2009 page 6" href="http://www.zmag.dk/showmag.php?mid=rqpgdt&pageid=6"> developments in the global economy. Among the cou</a>ntries of the Region with less favorable public ?nances at the outset of the crisis, many were also su?ering from severe macroeconomic imbalances as t
<a title="BDF SoRR 2009 page 7" href="http://www.zmag.dk/showmag.php?mid=rqpgdt&pageid=7"> Figure C: Competitiveness pro?le of the Baltic Se</a>a Region Micro (20) GDP pc (26) GCI (17) Macro (19) Business Environment Quality (22) Company Sophistication
<a title="BDF SoRR 2009 page 8" href="http://www.zmag.dk/showmag.php?mid=rqpgdt&pageid=8"> Figure D: Assessing the EU Baltic Sea Region stra</a>tegy YES Addressing real problems of the Region? Providing better structures to address them? LIMITED the competit
<a title="BDF SoRR 2009 page 9" href="http://www.zmag.dk/showmag.php?mid=rqpgdt&pageid=9"> informal channels, might be more in linw with a c</a>ountrys needs and easier to accept than from a far-away international organization. But even with these improvements, shocks will continue to occur.
<a title="BDF SoRR 2009 page 10" href="http://www.zmag.dk/showmag.php?mid=rqpgdt&pageid=10"> Introduction Why a State of the Region Report? </a> Economies around the globe are in turmoil. The downturn is signi?cantly deeper and more global than any- thing experienced since the Great Depression
<a title="BDF SoRR 2009 page 11" href="http://www.zmag.dk/showmag.php?mid=rqpgdt&pageid=11"> antshave gained in population but the decrease e</a>lsewhere, especially in north-western Russia and the Baltics, was even higher. In 2009 the Regions labor force of 27.5 million employees is decreas-
<a title="BDF SoRR 2009 page 12" href="http://www.zmag.dk/showmag.php?mid=rqpgdt&pageid=12"> This section of the State of the Region Report de</a>scribes the context for cross- national cooperation in the Baltic Sea Region. In the last twelve months, the global ?nancial and economic crisis has b
<a title="BDF SoRR 2009 page 13" href="http://www.zmag.dk/showmag.php?mid=rqpgdt&pageid=13"> Section A: The context for cross-national coopera</a>tion in the Baltic Sea Region Regional cooperation among neighboring countries, on upgrading competitiveness as well as on other policies,
<a title="BDF SoRR 2009 page 14" href="http://www.zmag.dk/showmag.php?mid=rqpgdt&pageid=14"> The dramatic deterioration in the global econ</a>omy has triggered major stabilization efforts to shore up ?nancial systems and led to monetary and ?scal policy actions of an unprecedent
<a title="BDF SoRR 2009 page 15" href="http://www.zmag.dk/showmag.php?mid=rqpgdt&pageid=15"> The extent of the economic crisis s</a>oon led The most immediate attention was directed to comparisons with the great recession of the to the ?nancial syste
<a title="BDF SoRR 2009 page 16" href="http://www.zmag.dk/showmag.php?mid=rqpgdt&pageid=16"> SECTION A The context for cross-national cooper</a>ation in the Baltic Sea Region instruments. As the traditional interest rate chan- nel was not working su?ciently, Central Banks started to purc
<a title="BDF SoRR 2009 page 17" href="http://www.zmag.dk/showmag.php?mid=rqpgdt&pageid=17"> SECTION A The context for cross-national</a> cooperation in the Baltic Sea Region After having ?nally caught up with US growth rates in 2006, Europe is now again in danger of falling behin
<a title="BDF SoRR 2009 page 18" href="http://www.zmag.dk/showmag.php?mid=rqpgdt&pageid=18"> SECTION A The context for cross-national cooper</a>ation in the Baltic Sea Region But the worsening global ?nancial market condi- tions quickly a?ected the markets in the Baltic Sea Region. Those
<a title="BDF SoRR 2009 page 19" href="http://www.zmag.dk/showmag.php?mid=rqpgdt&pageid=19"> SECTION A The context for cross-national</a> cooperation in the Baltic Sea Region and 6% in 2009, following a 1% growth rate for the total of 2008. For 2010, GDP is projected to be ?at. Th
<a title="BDF SoRR 2009 page 20" href="http://www.zmag.dk/showmag.php?mid=rqpgdt&pageid=20"> SECTION A The context for cross-national cooper</a>ation in the Baltic Sea Region that looks at the lessons that can be drawn from the Nordic experience when thinking about restructur- ing the ar
<a title="BDF SoRR 2009 page 21" href="http://www.zmag.dk/showmag.php?mid=rqpgdt&pageid=21"> SECTION A The context for cross-national</a> cooperation in the Baltic Sea Region surplus for the most recent years, reaching 3.8% of GDP in 2007. An important driver of growth had been th
<a title="BDF SoRR 2009 page 22" href="http://www.zmag.dk/showmag.php?mid=rqpgdt&pageid=22"> SECTION A The context for cross-national cooper</a>ation in the Baltic Sea Region which are responsible for a large share of govern- ment spending. In terms of more support for the business secto
<a title="BDF SoRR 2009 page 23" href="http://www.zmag.dk/showmag.php?mid=rqpgdt&pageid=23"> SECTION A The context for cross-national</a> cooperation in the Baltic Sea Region expected further contraction of 4% in 2009. For 2010, the outlook is for a resumption of growth at 0.4%.
<a title="BDF SoRR 2009 page 24" href="http://www.zmag.dk/showmag.php?mid=rqpgdt&pageid=24"> SECTION A The context for cross-national cooper</a>ation in the Baltic Sea Region 2009/2010 amounts to 1.5% of GDP, with most of the resources directed at the labor market. Because of the automat
<a title="BDF SoRR 2009 page 25" href="http://www.zmag.dk/showmag.php?mid=rqpgdt&pageid=25"> SECTION A The context for cross-national</a> cooperation in the Baltic Sea Region Figure 10: Policies to Support the Financial Sector across EU countries Discretionary Stimulus overal
<a title="BDF SoRR 2009 page 26" href="http://www.zmag.dk/showmag.php?mid=rqpgdt&pageid=26"> SECTION A The context for cross-national cooper</a>ation in the Baltic Sea Region a consequence, the government de?cit will increase, reaching -2.9% of GDP. Finland is thus in danger of hitting t
<a title="BDF SoRR 2009 page 27" href="http://www.zmag.dk/showmag.php?mid=rqpgdt&pageid=27"> SECTION A The context for cross-national</a> cooperation in the Baltic Sea Region lending, together with the in?ows of capital in re- lation to a number of big aluminum investments, create
<a title="BDF SoRR 2009 page 28" href="http://www.zmag.dk/showmag.php?mid=rqpgdt&pageid=28"> SECTION A The context for cross-national cooper</a>ation in the Baltic Sea Region spending, as well as an increase of 1 percentage point in personal income tax. Further cuts and tax increases equ
<a title="BDF SoRR 2009 page 29" href="http://www.zmag.dk/showmag.php?mid=rqpgdt&pageid=29"> SECTION A The context for cross-national</a> cooperation in the Baltic Sea Region than 20%. Bankruptcy rates increased, threaten- ing a number of well known companies like Opel and Karstad
<a title="BDF SoRR 2009 page 30" href="http://www.zmag.dk/showmag.php?mid=rqpgdt&pageid=30"> SECTION A The context for cross-national cooper</a>ation in the Baltic Sea Region European Central Bank (ECB), which had started to reduce interest rates and directly provide liquid- ity starting
<a title="BDF SoRR 2009 page 31" href="http://www.zmag.dk/showmag.php?mid=rqpgdt&pageid=31"> SECTION A The context for cross-national</a> cooperation in the Baltic Sea Region and thus further exacerbating the crisis. Overall, GDP dropped by 15% in the ?rst quarter, with early data
<a title="BDF SoRR 2009 page 32" href="http://www.zmag.dk/showmag.php?mid=rqpgdt&pageid=32"> SECTION A The context for cross-national cooper</a>ation in the Baltic Sea Region the public sector by 9.5% and maternity bene?ts by 50% are being discussed. Instead of applying for IMF assistanc
<a title="BDF SoRR 2009 page 33" href="http://www.zmag.dk/showmag.php?mid=rqpgdt&pageid=33"> SECTION A The context for cross-national</a> cooperation in the Baltic Sea Region 35). The minimum wage was decreased from LVL 180 to LVL 140. As of February 2009, excise taxes on beer wer
<a title="BDF SoRR 2009 page 34" href="http://www.zmag.dk/showmag.php?mid=rqpgdt&pageid=34"> SECTION A The context for cross-national cooper</a>ation in the Baltic Sea Region ing Baltic countries. Unemployment had dropped to 7.1% in 2008; this was still the highest rate in the region, bu
<a title="BDF SoRR 2009 page 35" href="http://www.zmag.dk/showmag.php?mid=rqpgdt&pageid=35"> SECTION A The context for cross-national</a> cooperation in the Baltic Sea Region equity markets abroad, especially the UK. By the third quarter of 2008, private sector external debt was U
<a title="BDF SoRR 2009 page 36" href="http://www.zmag.dk/showmag.php?mid=rqpgdt&pageid=36"> SECTION A The context for cross-national cooper</a>ation in the Baltic Sea Region Assessment Four main observations stick out from this discus- sion of the macroeconomic context in the Baltic Se
<a title="BDF SoRR 2009 page 37" href="http://www.zmag.dk/showmag.php?mid=rqpgdt&pageid=37"> The level of regional collaboration efforts r</a>emains high, with no visible impact yet of the economic crisis Innovation and environment issues are a key concern across many of the activ
<a title="BDF SoRR 2009 page 38" href="http://www.zmag.dk/showmag.php?mid=rqpgdt&pageid=38"> SECTION A The context for cross-national cooper</a>ation in the Baltic Sea Region policy, where the CBSS works with the social partners, i.e. Trade Unions and employers organi- zations in the Re
<a title="BDF SoRR 2009 page 39" href="http://www.zmag.dk/showmag.php?mid=rqpgdt&pageid=39"> SECTION A The context for cross-national</a> cooperation in the Baltic Sea Region and provide input to the Copenhagen UN Cli- mate Summit (COP15) in December. The Nordic countries have ini
<a title="BDF SoRR 2009 page 40" href="http://www.zmag.dk/showmag.php?mid=rqpgdt&pageid=40"> SECTION A The context for cross-national cooper</a>ation in the Baltic Sea Region Baltic Sea Region as a ?agship-project in the framework of the EU Baltic Sea Strategy. In youth poli
<a title="BDF SoRR 2009 page 41" href="http://www.zmag.dk/showmag.php?mid=rqpgdt&pageid=41"> SECTION A The context for cross-national</a> cooperation in the Baltic Sea Region BaltMets current project portfolio is support- ed by a total budget of 10 million euros.
<a title="BDF SoRR 2009 page 42" href="http://www.zmag.dk/showmag.php?mid=rqpgdt&pageid=42"> SECTION A The context for cross-national cooper</a>ation in the Baltic Sea Region the Baltic Sea Region will be an important tool box for health region. Fostering collaboration a
<a title="BDF SoRR 2009 page 43" href="http://www.zmag.dk/showmag.php?mid=rqpgdt&pageid=43"> SECTION A The context for cross-national</a> cooperation in the Baltic Sea Region A key priority of BDF in 2008/2009 has been the provision of input to the EU Baltic Sea R
<a title="BDF SoRR 2009 page 44" href="http://www.zmag.dk/showmag.php?mid=rqpgdt&pageid=44"> SECTION A The context for cross-national cooper</a>ation in the Baltic Sea Region There are a number of reasons of why a dense network of regional collaboration e?orts is high- ly likel
<a title="BDF SoRR 2009 page 45" href="http://www.zmag.dk/showmag.php?mid=rqpgdt&pageid=45"> Political conditions in the Region are stable</a>; no new problems have emerged that would fundamentally undermine collaboration in the Region Existing challenges with regards t
<a title="BDF SoRR 2009 page 46" href="http://www.zmag.dk/showmag.php?mid=rqpgdt&pageid=46"> The crisis has shifted the focus to policies </a>controlled at the national level and led to a divergence of needs and perceptions across the Region Regional collaboration has not lo
<a title="BDF SoRR 2009 page 47" href="http://www.zmag.dk/showmag.php?mid=rqpgdt&pageid=47"> the gap. But the challenge is not only dealing wi</a>th the actual economic reality of the crisis; it is also dealing with the di?erences in how the countries in the Region perceive the crisis. This peri
<a title="BDF SoRR 2009 page 48" href="http://www.zmag.dk/showmag.php?mid=rqpgdt&pageid=48"> This section of the State of the Region Report tr</a>acks the status quo of current competitiveness across the Baltic Sea Region, following up on the assessments done in previous Reports. Data is analyze
<a title="BDF SoRR 2009 page 49" href="http://www.zmag.dk/showmag.php?mid=rqpgdt&pageid=49"> Section B: Competitiveness in the Baltic Sea Regi</a>on Competitiveness captures the medium-term economic fundamentals that ultimately determine the level of prosperity an economy and its cit
<a title="BDF SoRR 2009 page 50" href="http://www.zmag.dk/showmag.php?mid=rqpgdt&pageid=50"> SECTION B Competitiveness of the Baltic Sea Reg</a>ion spree, the private sector will often even cut spending with the view that the public debt that will have to be covered through taxes or spen
<a title="BDF SoRR 2009 page 51" href="http://www.zmag.dk/showmag.php?mid=rqpgdt&pageid=51"> The Baltic Sea Region remains one of the most</a> prosperous regions internationally despite a signi?cant drop in prosperity in the wake of the crisis So far productivity has taken t
<a title="BDF SoRR 2009 page 52" href="http://www.zmag.dk/showmag.php?mid=rqpgdt&pageid=52"> SECTION B Competitiveness of the Baltic Sea Reg</a>ion The contraction after the fast growth of the last few years has, of course, not been limited to the Baltic Sea Region. The
<a title="BDF SoRR 2009 page 53" href="http://www.zmag.dk/showmag.php?mid=rqpgdt&pageid=53"> SECTION B Competitiveness of the Baltic </a>Sea Region Within the Baltic Sea Region, there has been a dramatic reversal of fortunes. Countries that used to grow at high rate
<a title="BDF SoRR 2009 page 54" href="http://www.zmag.dk/showmag.php?mid=rqpgdt&pageid=54"> SECTION B Competitiveness of the Baltic Sea Reg</a>ion From prosperity to the quality of life GDP per capita is one indicator of prosperity, but there is a recognition that other factors, like s
<a title="BDF SoRR 2009 page 55" href="http://www.zmag.dk/showmag.php?mid=rqpgdt&pageid=55"> SECTION B Competitiveness of the Baltic </a>Sea Region Figure 16: Prosperity decomposition in selected cross-national regions, 2009 GDP per Capita (PPP) OCEANIA (+1) NAFTA
<a title="BDF SoRR 2009 page 56" href="http://www.zmag.dk/showmag.php?mid=rqpgdt&pageid=56"> SECTION B Competitiveness of the Baltic Sea Reg</a>ion Within the Baltic Sea Region, Norway (mainland economy) will continue to register the highest level of GDP per hour worked wi
<a title="BDF SoRR 2009 page 57" href="http://www.zmag.dk/showmag.php?mid=rqpgdt&pageid=57"> SECTION B Competitiveness of the Baltic </a>Sea Region countries remains between a third (Russia) and close to half (Baltics) of the level in the Nordic countries. Poland is expected to be
<a title="BDF SoRR 2009 page 58" href="http://www.zmag.dk/showmag.php?mid=rqpgdt&pageid=58"> SECTION B Competitiveness of the Baltic Sea Reg</a>ion than an average working week of production was lost per capita. Within the Baltic Sea Region, Iceland retained its lead on
<a title="BDF SoRR 2009 page 59" href="http://www.zmag.dk/showmag.php?mid=rqpgdt&pageid=59"> SECTION B Competitiveness of the Baltic </a>Sea Region Figure 22: Relative price changes, European countries Price level, EU-27=100 160
<a title="BDF SoRR 2009 page 60" href="http://www.zmag.dk/showmag.php?mid=rqpgdt&pageid=60"> SECTION B Competitiveness of the Baltic Sea Reg</a>ion Figure 23: World export market shares, Baltic Sea Region World market shares % 7 % 6 % 5 % 4 % Goods Services Total GDP (FX) GDP (PP
<a title="BDF SoRR 2009 page 61" href="http://www.zmag.dk/showmag.php?mid=rqpgdt&pageid=61"> SECTION B Competitiveness of the Baltic </a>Sea Region Figure 24: Domestic investment over time, Baltic Sea Region and EU-27 Gross investment in % of GDP 23 22 21 20 19 BSR EU-27 1
<a title="BDF SoRR 2009 page 62" href="http://www.zmag.dk/showmag.php?mid=rqpgdt&pageid=62"> SECTION B Competitiveness of the Baltic Sea Reg</a>ion Outward foreign direct investment (FDI) is an important indicator for the ability of local companies to transfer t
<a title="BDF SoRR 2009 page 63" href="http://www.zmag.dk/showmag.php?mid=rqpgdt&pageid=63"> SECTION B Competitiveness of the Baltic </a>Sea Region global economy, the Regions own attractiveness for investment, both from foreign and domestic sources, is only average. Pate
<a title="BDF SoRR 2009 page 64" href="http://www.zmag.dk/showmag.php?mid=rqpgdt&pageid=64"> SECTION B Competitiveness of the Baltic Sea Reg</a>ion Figure 28: Overview on investment activity in the Baltic Sea Region World market share % 10 8 6 FDI inflow - annual FDI inflow - 3
<a title="BDF SoRR 2009 page 65" href="http://www.zmag.dk/showmag.php?mid=rqpgdt&pageid=65"> SECTION B Competitiveness of the Baltic </a>Sea Region Figure 30: Level and growth rate of patenting in the US Patents per Capita (million), 2008 300 United States
<a title="BDF SoRR 2009 page 66" href="http://www.zmag.dk/showmag.php?mid=rqpgdt&pageid=66"> SECTION B Competitiveness of the Baltic Sea Reg</a>ion The exceptions are the countries in deep economic crisis, i.e. Iceland and the Baltic countries, where both productivity and employment have
<a title="BDF SoRR 2009 page 67" href="http://www.zmag.dk/showmag.php?mid=rqpgdt&pageid=67"> The Baltic Sea Region remains one of the most</a> competitive regions in the global economy, supporting its high level of prosperity Company sophistication and strong institut
<a title="BDF SoRR 2009 page 68" href="http://www.zmag.dk/showmag.php?mid=rqpgdt&pageid=68"> SECTION B Competitiveness of the Baltic Sea Reg</a>ion become very visible. For the ranking methodol- ogy the new approach developed by a team under the leadership of Professor Michael Porter is
<a title="BDF SoRR 2009 page 69" href="http://www.zmag.dk/showmag.php?mid=rqpgdt&pageid=69"> SECTION B Competitiveness of the Baltic </a>Sea Region Geography and competitiveness: Implications for the Baltic Sea Region Over the last few years, the role of geographic fac- tors has
<a title="BDF SoRR 2009 page 70" href="http://www.zmag.dk/showmag.php?mid=rqpgdt&pageid=70"> SECTION B Competitiveness of the Baltic Sea Reg</a>ion Macroeconomic competitiveness Macroeconomic factors set the overall context in which companies operate but they do not directly in?uence th
<a title="BDF SoRR 2009 page 71" href="http://www.zmag.dk/showmag.php?mid=rqpgdt&pageid=71"> SECTION B Competitiveness of the Baltic </a>Sea Region at an aggregate level in balance. Fiscal policy largely has to ensure that the balance of public revenues and spending remain within
<a title="BDF SoRR 2009 page 72" href="http://www.zmag.dk/showmag.php?mid=rqpgdt&pageid=72"> SECTION B Competitiveness of the Baltic Sea Reg</a>ion Figure 33: Microeconomic competitiveness over time, Baltic Sea Region Micro (21) 2008 Micro (20) 2001 Business Environment Quality (2
<a title="BDF SoRR 2009 page 73" href="http://www.zmag.dk/showmag.php?mid=rqpgdt&pageid=73"> SECTION B Competitiveness of the Baltic </a>Sea Region Figure 34: Factor input conditions over time, Baltic Sea Region Year 2001
<a title="BDF SoRR 2009 page 74" href="http://www.zmag.dk/showmag.php?mid=rqpgdt&pageid=74"> SECTION B Competitiveness of the Baltic Sea Reg</a>ion Figure 36: WEF IT Readiness index, Baltic Sea Region 1. Denmark 2. Sweden 6. Finland7. Iceland (+1) 8. Norway (+2)18. Estonia (+2) 18. BSR
<a title="BDF SoRR 2009 page 75" href="http://www.zmag.dk/showmag.php?mid=rqpgdt&pageid=75"> SECTION B Competitiveness of the Baltic </a>Sea Region Figure 37: Innovation in the Baltic Sea Region Firm Activities Firm investments Business R&D expenditures (% of GDP)
<a title="BDF SoRR 2009 page 76" href="http://www.zmag.dk/showmag.php?mid=rqpgdt&pageid=76"> SECTION B Competitiveness of the Baltic Sea Reg</a>ion Figure 38: Context for Strategy and Rivalry in the Baltic Sea Region Indicator Rank vs
<a title="BDF SoRR 2009 page 77" href="http://www.zmag.dk/showmag.php?mid=rqpgdt&pageid=77"> SECTION B Competitiveness of the Baltic </a>Sea Region Figure 40: World Bank Doing Business Index, Baltic Sea Region Dimension
<a title="BDF SoRR 2009 page 78" href="http://www.zmag.dk/showmag.php?mid=rqpgdt&pageid=78"> SECTION B Competitiveness of the Baltic Sea Reg</a>ion Figure 42: Supporting and related industries in the Baltic Sea Region Indicator Rank vs.
<a title="BDF SoRR 2009 page 79" href="http://www.zmag.dk/showmag.php?mid=rqpgdt&pageid=79"> SECTION B Competitiveness of the Baltic </a>Sea Region Cluster policy: the state of the debate The Baltic Sea Region has over the last few years seen a huge rise in cluster efforts, mostl
<a title="BDF SoRR 2009 page 80" href="http://www.zmag.dk/showmag.php?mid=rqpgdt&pageid=80"> SECTION B Competitiveness of the Baltic Sea Reg</a>ion Figure 44: Demand sophistication in the Baltic Sea Region Indicator Rank vs. 2008
<a title="BDF SoRR 2009 page 81" href="http://www.zmag.dk/showmag.php?mid=rqpgdt&pageid=81"> SECTION B Competitiveness of the Baltic </a>Sea Region Figure 46: Company sophistication in selected Baltic Sea Region countries Indicator
<a title="BDF SoRR 2009 page 82" href="http://www.zmag.dk/showmag.php?mid=rqpgdt&pageid=82"> SECTION B Competitiveness of the Baltic Sea Reg</a>ion Figure 47: Competitiveness pro?le: Sweden (2009), author's analysis. Related and Industr Supporting ies (4) Demand C
<a title="BDF SoRR 2009 page 83" href="http://www.zmag.dk/showmag.php?mid=rqpgdt&pageid=83"> SECTION B Competitiveness of the Baltic </a>Sea Region Figure 48: Competitiveness pro?le: Denmark (2009), author's analysis. Related and Industr Supporting ies (4) Demand C
<a title="BDF SoRR 2009 page 84" href="http://www.zmag.dk/showmag.php?mid=rqpgdt&pageid=84"> SECTION B Competitiveness of the Baltic Sea Reg</a>ion some drop in public trust of politicians and the perceived transparency of policy making, possibly related to issues of party funding discus
<a title="BDF SoRR 2009 page 85" href="http://www.zmag.dk/showmag.php?mid=rqpgdt&pageid=85"> SECTION B Competitiveness of the Baltic </a>Sea Region Figure 51: Competitiveness pro?le: Norway (2009), author's analysis. Related and Industri Supporting es (19) Demand C
<a title="BDF SoRR 2009 page 86" href="http://www.zmag.dk/showmag.php?mid=rqpgdt&pageid=86"> SECTION B Competitiveness of the Baltic Sea Reg</a>ion Figure 52: Competitiveness pro?le: Iceland (2009), author's analysis. Related and Industri Supporting es (30) Demand Co nditio
<a title="BDF SoRR 2009 page 87" href="http://www.zmag.dk/showmag.php?mid=rqpgdt&pageid=87"> SECTION B Competitiveness of the Baltic </a>Sea Region Region, gaining nine ranks since last year. This is the best rank the country has achieved since com- parative data has been availabl
<a title="BDF SoRR 2009 page 88" href="http://www.zmag.dk/showmag.php?mid=rqpgdt&pageid=88"> SECTION B Competitiveness of the Baltic Sea Reg</a>ion tional quality. Company sophistication remains the key weakness, but it registered huge improve- ments, especially in organizational practic
<a title="BDF SoRR 2009 page 89" href="http://www.zmag.dk/showmag.php?mid=rqpgdt&pageid=89"> SECTION B Competitiveness of the Baltic </a>Sea Region strategy is down. Higher taxation as a consequence of the governments crisis measures are one con- cern, and a signi?cantly less pos
<a title="BDF SoRR 2009 page 90" href="http://www.zmag.dk/showmag.php?mid=rqpgdt&pageid=90"> SECTION B Competitiveness of the Baltic Sea Reg</a>ion Figure 57: Competitiveness pro?le: Russia (2009), author's analysis. Related and Industri Supporting es (65) Demand Co ndition
<a title="BDF SoRR 2009 page 91" href="http://www.zmag.dk/showmag.php?mid=rqpgdt&pageid=91"> SECTION B Competitiveness of the Baltic </a>Sea Region patterns characterizing the Region: Germany ranks signi?cantly higher on micro- than on mac- roeconomic competitiveness. Lithuania, P
<a title="BDF SoRR 2009 page 92" href="http://www.zmag.dk/showmag.php?mid=rqpgdt&pageid=92"> SECTION B Competitiveness of the Baltic Sea Reg</a>ion Figure 59: Competitiveness and prosperity Competitiveness ranking
<a title="BDF SoRR 2009 page 93" href="http://www.zmag.dk/showmag.php?mid=rqpgdt&pageid=93"> The Baltic Sea Region remains the Top of Euro</a>pe on the goals of the Lisbon Agenda A cross Europe, a number of structural weaknesses have led to overall disappointing outcomes
<a title="BDF SoRR 2009 page 94" href="http://www.zmag.dk/showmag.php?mid=rqpgdt&pageid=94"> SECTION B Competitiveness of the Baltic Sea Reg</a>ion able for the many countries in the Baltic Sea Region that are equivalent to NUTS-2 regions. To aggregate the data, we ?rst
<a title="BDF SoRR 2009 page 95" href="http://www.zmag.dk/showmag.php?mid=rqpgdt&pageid=95"> SECTION B Competitiveness of the Baltic </a>Sea Region Figure 63: Lisbon Agenda challenges for selected Baltic Sea Region countries Denmark · Labor market participation of old workers and
<a title="BDF SoRR 2009 page 96" href="http://www.zmag.dk/showmag.php?mid=rqpgdt&pageid=96"> SECTION B Competitiveness of the Baltic Sea Reg</a>ion across the countries from the Region; these posi- tions have not changed signi?cantly since then. Overall, the analysis of the Baltic Sea Re
<a title="BDF SoRR 2009 page 97" href="http://www.zmag.dk/showmag.php?mid=rqpgdt&pageid=97"> SECTION B Competitiveness of the Baltic </a>Sea Region of supporting innovation, further deepening of the internal market, and modernizing the labor market also continue to be seen as impo
<a title="BDF SoRR 2009 page 98" href="http://www.zmag.dk/showmag.php?mid=rqpgdt&pageid=98"> SECTION B Competitiveness of the Baltic Sea Reg</a>ion nomic policy choices. The Internal Market was for some countries (Germany, UK) a way to increa
<a title="BDF SoRR 2009 page 99" href="http://www.zmag.dk/showmag.php?mid=rqpgdt&pageid=99"> SECTION B Competitiveness of the Baltic </a>Sea Region geographic levels, from the local and regional, the national, the Baltic Sea, and ?nally to the
<a title="BDF SoRR 2009 page 100" href="http://www.zmag.dk/showmag.php?mid=rqpgdt&pageid=100"> Deepening regional integration within the Bal</a>tic Sea Region remains a crucially important goal, and will go some way to addressing key weaknesses challenging the Region Moving tow
<a title="BDF SoRR 2009 page 101" href="http://www.zmag.dk/showmag.php?mid=rqpgdt&pageid=101"> providing better information and </a>by support- ing the implementation of actions. The EU Baltic Sea Region strategy pro- vides
<a title="BDF SoRR 2009 page 102" href="http://www.zmag.dk/showmag.php?mid=rqpgdt&pageid=102"> This part of the State of the Region Report discu</a>sses the EU Baltic Sea Region Strategy. Last year's Report provided background information on the Baltic Sea Region's deep integration into the Europe
<a title="BDF SoRR 2009 page 103" href="http://www.zmag.dk/showmag.php?mid=rqpgdt&pageid=103"> Section C: The EU Baltic Sea Region strategy </a> The Baltic Sea Region is closely integrated into the European Union, with a deep network of institutional and contractual ties. The Euro- p
<a title="BDF SoRR 2009 page 104" href="http://www.zmag.dk/showmag.php?mid=rqpgdt&pageid=104"> 1. Drafting the EU Baltic Sea Region strategy:</a> the perspective from the European Commission This section has been written by Anders Lindholm, DG Regio, who has been intimately involved in the C
<a title="BDF SoRR 2009 page 105" href="http://www.zmag.dk/showmag.php?mid=rqpgdt&pageid=105"> education, and entrepreneurship, as well as the f</a>unctioning of the single market. Ensuring the competitiveness of energy markets is also a high priority challenge to be addressed. Priority issues for
<a title="BDF SoRR 2009 page 106" href="http://www.zmag.dk/showmag.php?mid=rqpgdt&pageid=106"> SECTION C Europe, Energy, and the Environment </a> Key issues for the Baltic Sea Region The EU Baltic Sea Strategy addresses, in a con- crete way, the four key issues facing the Baltic Sea Regio
<a title="BDF SoRR 2009 page 107" href="http://www.zmag.dk/showmag.php?mid=rqpgdt&pageid=107"> SECTION C Europe, Energy, and the Enviro</a>nment Key issues for the Baltic Sea Region the concrete implementation of the actions and projects. In order to ensure a full ?ow
<a title="BDF SoRR 2009 page 108" href="http://www.zmag.dk/showmag.php?mid=rqpgdt&pageid=108"> 2. Implementing the EU Baltic Sea Region strat</a>egy: the perspective from VINNOVA This section has been written by Karin Nygård Skalman, VINNOVA, with the support of Emily Wise, Research Fellow a
<a title="BDF SoRR 2009 page 109" href="http://www.zmag.dk/showmag.php?mid=rqpgdt&pageid=109"> For societal partners, cooperation between the co</a>untries can lead to joint actions in order to solve future challenges for society. Increased linkages between the Baltic Sea Region countries and its
<a title="BDF SoRR 2009 page 110" href="http://www.zmag.dk/showmag.php?mid=rqpgdt&pageid=110"> SECTION C Europe, Energy, and the Environment </a> Key issues for the Baltic Sea Region Innovative SMEs and networks. This part of the program aims at strengthening the S
<a title="BDF SoRR 2009 page 111" href="http://www.zmag.dk/showmag.php?mid=rqpgdt&pageid=111"> The EU Baltic Sea Region Strategy is an impor</a>tant step forward for regional collaboration To reap the full bene?ts of the Strategy, countries in the Region now need to act on aligning
<a title="BDF SoRR 2009 page 112" href="http://www.zmag.dk/showmag.php?mid=rqpgdt&pageid=112"> SECTION C Europe, Energy, and the Environment </a> Key issues for the Baltic Sea Region economic pillar of the strategy. There seems to be a consensus in the Region that the proposed strat- egy
<a title="BDF SoRR 2009 page 113" href="http://www.zmag.dk/showmag.php?mid=rqpgdt&pageid=113"> SECTION C Europe, Energy, and the Enviro</a>nment Key issues for the Baltic Sea Region and innovation, are under way but there is a mul- titude of e?orts from di?erent groups within the
<a title="BDF SoRR 2009 page 114" href="http://www.zmag.dk/showmag.php?mid=rqpgdt&pageid=114"> SECTION C Europe, Energy, and the Environment </a> Key issues for the Baltic Sea Region respects there is an interesting parallel to the Lisbon Agenda process after the 2005 relaunch. The EU Bal
<a title="BDF SoRR 2009 page 115" href="http://www.zmag.dk/showmag.php?mid=rqpgdt&pageid=115"> Final observations The year that has passed has</a> been a trying time for the Baltic Sea Region, as it has been for the world economy at large. Economic outcome indicators have dropped with a ferocity
<a title="BDF SoRR 2009 page 116" href="http://www.zmag.dk/showmag.php?mid=rqpgdt&pageid=116"> About the author Dr Christian H. M. Ketel</a>s Dr. Christian Ketels is a member of the Harvard Business School faculty at Professor Michael E. Porters Institute for Strategy and Competitiveness
<a title="BDF SoRR 2009 page 117" href="http://www.zmag.dk/showmag.php?mid=rqpgdt&pageid=117"> Layout: Bitdesign, Leena Närhi, Finland Photo cre</a>dits: page 12, Magnus Fröderberg norden.org, page 48, www.oresundsregionen.org, page 102, Johannes Jansson norden.org Printing: InPrint, Riga, Lat
<a title="BDF SoRR 2009 page 118" href="http://www.zmag.dk/showmag.php?mid=rqpgdt&pageid=118"> Baltic Development Forum The leading high-level n</a>etwork for decision-makers from business, politics, academia and media in the Baltic Sea Region. Nyga
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