State of the Nordic Region 2016: “Regional Development in the Nordic countries”
Stockholm, Capital of Sweden. |
The report* draws on the latest available statistics to present an analysis of demographic changes, labour market trends, education, economic performance, and developments in accessibility and infrastructure. For the first time, the report includes a Regional Potential Index, which highlights the strengths and weaknesses of the 74 Nordic Regions in relation to one another, and identifies the regions with the strongest growth potential.
What is the Nordic Region?
The
precise definition of “the Nordic Region” has shifted over time. This report
defines the Nordic Region as all municipalities and administrative regions of
the five Nordic countries (Denmark, Finland, Iceland, Norway and Sweden), as
well as the Faroe Islands and Greenland (both part of the Kingdom of Denmark),
and Åland (part of the Republic of Finland). This definition is consistent with
that used by the Nordic Council of Ministers. It is important to recognise that
there are a number of Nordic territories which are not part of the
administrative systems of Nordic countries but still belong to or are
administered by these countries. Languages: Swedish, Finnish, Danish, Icelandic,
Norwegian.
ECONOMIC
DEVELOPMENT: Economically strong but crisis still shows
The
Nordic Regions have generally maintained their previously strong positions in
relation to the EU average when it comes to economic development. Urban and
capital city regions show high levels of GRP per capita, as is the pattern
throughout Europe. Stockholm, Oslo, Copenhagen and the western Norwegian
regions are among the wealthiest in Europe. It is also the case that capital regions
and larger cities remain strong economic centres in the Nordic Region. These
regions show GRP per capita levels which correspond, or even exceed, most other
metropolitan regions in Europe. While southern European city regions have
suffered reductions in relative GRP (Gross Regional Product) per capita, Nordic
city regions continue to place at the top of the scale. The picture is not
however as clear cut as it once was. Helsinki has for instance lost its
position among the highest performers in the last 3-years. And in Denmark and
Sweden some regions now have a significantly lower GRP per capita compared to
previous years; notably Kalmar, Värmland, Hovedstaden, Syddanmark and Östfold;
the same is also true for Åland. At the same time other regions are improving
and have risen up the rankings e.g. Hordaland in Norway.
In
addition to the urban regions referenced above, there are now also a number of
peripheral regions displaying high levels of GRP per capita (figure 8.1). The
Swedish and Norwegian northern regions are all performing well in relation to
the European average. Indeed, some of these regions can even be viewed as ‘top
performers’. Greenland and the Faroe Islands are also above the European
average (for Greenland though, Danish subsidies supply roughly 60% of
government revenue and 40% of Greenland’s GRP). However promising these facts
may appear, they should nevertheless be seen in the context of the existing
economic structures in those territories. Indeed, whereas urban economies are
often based on a diverse range of economic activities and benefit from trends
in urban growth, the economies in the top-performing but more peripheral
regions are usually thriving thanks to a large, single industry often highly
specialised internationally: in Åland, the transport sector; in Norrbotten,
mining; and in Northern Norway, oil exploitation and fisheries.
INNOVATION:
Nordic lead the charts
Existing
global challenges and continuing economic pressures place innovation at the
forefront of Europe’s efforts to transform the economy and stimulate global
competitive advantage. The Europe 2020 Flagship Initiative, Innovation Union
aims ‘to improve conditions and access to finance for research and innovation,
to ensure that innovative ideas can be turned into products and services that
create growth and jobs’ (COM 2010). In the Nordic Region, innovation is also
high on the agenda. Sweden, Denmark, and Finland are the top performers
according to the European Commission’s Innovation Union Scoreboard 2015 and
therefore offer interesting examples of how to create conditions that
facilitate innovation and contribute to the EU’s smart growth strategy.
TOURISM:
A new economic driver?
Tourism
has become big business and a key services export for many economies around the
world. Tourism contributes to job creation and regional economic development
(OECD, 2014). The importance of the tourism industry for the Nordic economies
has, moreover, mandated the development of national and regional tourism
strategies across the region. Most of these strategies incorporate the
principle of sustainable tourism development (see box). The role of tourism in
regional development strategies is particularly evident in rural and peripheral
areas, where, as a result of the socioeconomic changes taking place, tourism is
in many places viewed as a replacement industry for traditional rural
livelihoods (Hall et al., 2009), or as a complement to traditional, often
male-dominated industries. However, as it is also evident in this chapter,
tourism plays a role in both the rural and urban areas of the Nordic Region.
The reasons why tourists travel to the Nordic Region are many and include for
example – nature-based experiences, coastal tourism, culture experiences, urban
tourism, and business meetings and conferences. These types of tourism
experiences do however vary significantly between regions. Current trends in
tourism, globally, point towards shorter trips, either domestic in nature or
closer to home, and to a search for more ‘authentic’ experiences. Holidays
remain by far the main reason for taking an international trip (71%) ahead of
business travel and visiting friends and relatives. More people fly than use
their cars or other means of transport (OECD, 2014:23). As will become evident
in this chapter, the highest shares of visitor numbers in most Nordic Regions
are comprised by domestic tourists and visitors from neighbouring countries.
One of the most popular ways of measuring tourism is to count the number of
overnight stays. This approach will be utilised in this chapter. In the Nordic
context, Iceland has experienced significant growth in tourism numbers to
destinations across the country during the period 2008-2014 while Swedish
regions have also seen a remarkable growth in overnight stays during the same
period. In 2014 the total numbers of overnight stays were highest in the region
of Syddanmark, closely followed by those in the capital regions of Sweden and
Denmark.
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