Priority 2

Priority 2: Strengthen Sustainable Economic Development

Vast natural resources characterise the Northern Periphery, with regard to energy carriers, forests and maritime resources. Beautiful nature and a high quality environment are obvious assets of Northern Europe. But the nature of the north is vulnerable and under threat, both from pollution, overexploitation and climatic changes. This priority will therefore strongly involve the questions related to sustainable use of natural resources. A special focus must be put on the connection between environmental protection and commercial use of natural resources.

Priority 2 is in particular concerned with business development. Enterprises in the Northern Periphery area have to cope with changes stemming from globalisation of the world economy, new regulations, changing markets etc. All projects that address this and enforce the capacity in companies to change are welcome. Ways to commercialise rural recourses either through existing companies or by setting up new ones are of special interest. Supporting all sorts of entrepreneurship that can create new jobs in rural areas, especially for young people and women, will be given priority.

Relevant measures under this priority will be

sustainable use of nature and natural resources, and
Business innovation and development of human resources.

Measure 2.1 Sustainable Use of Nature and Natural Resources

This measure should embrace both planning and planning practises necessary to obtain environmentally sustainable resource exploitation, and initiatives to make new use of nature and natural resources for commercial purposes. Focus will be set on the development potential of resources, which are unique, and not transferable - e.g. distinctive cultural and natural heritage.

Other examples of possible project themes that may be supported:

Opportunities to be used within the resource-based industries in general, connected to the extraction of natural resources, or sustainable exploitation of the nature as such
Development of nature based adventure tourism
New employment opportunities deriving from the cultural heritage of the northern area
Diversification efforts with traditional agriculture and fishing as the starting point
Projects to encourage efforts for adding value to local production, enhanced opportunities for local processing based on regional resources
Projects focusing on housing requirements in cold climate, or technological challenges confronted in road, air and sea transport under cold weather conditions
Initiative to develop new markets for local resource based produce/services

Measure 2.2 Business Innovation and Development of Human Resources

There is a close link between the development of new business opportunities and innovation, and the continued development of the human resources of the programme area. In this context it is vital to strengthen the development of equal opportunities, and networking for women in public and private sector as well as for young people of both sexes.

The private sector in the Northern Periphery is, to an overwhelming degree, comprised of small and medium size firms. SMEs innovate through networks, making each enterprise able to exploit resources of other organisations (suppliers, costumers, academic institutions). Projects to develop business networks involving co-operation and exchange of good practice, new marketing approaches, or developing links with research institutes are highly relevant.

The Northern Periphery has a fairly skilled and adaptive workforce. The scope of opportunities for education is in general nevertheless more limited than in the central parts of Europe. Distance learning and training have become important methods for giving inhabitants of the periphery and locally employed access to education normally given in larger cities. Under this measure initiatives to promote entrepreneurial skills, particularly among young people and women will be particularly welcomed. Other relevant project themes may be:

Innovative strategies to overcome the problems connected to an enterprise structure entirely dominated by SMEs
Co-operation and exchange of good practice between development agencies responsible for industrial/regional development support
Initiative to promote entrepreneurial skills, particularly among young people
Piloting schemes which encourage small businesses to expand their horizons, both in regard to markets and competence
Innovative distance and e-learning systems relevant for local businesses
The setting up of business networks both at local and transnational level to share experience, innovate, develop partnerships for buying, selling, marketing or conducting R&D, and
The linking of such networks to research or innovation centres, such as universities, industrial parks etc.

European Union

Cross Programme Initiatives