Improvement of Labour Mobility and Employment by Latvia–Lithuania Programme

Latviaâ&#x20AC;&#x201C;Lithuania Cross Border Cooperation Programme 2007â&#x20AC;&#x201C;2013

Thematic Capitalisation Report Labour Mobility Improvement of t and Employmen

2014

Contents 1. Methodology

Thematic Background

2.1. Thematic Regional Development Context

2.2. Pools of Projects Addressing Regional Development Challenges

2.3. Geographical Aspects of Partnerships Established

Thematic Analyses

3.1. Main Problems Addressed and Solutions Provided

3.2. Main Target Groups Having Impact by Projects

3.3. Innovative Approaches and Good Practice

3.4. Project Synergies

3.5. Coherence to the European Union Strategy for the Baltic Sea Region

Conclusions and Recommendations

List of Annexes Annex 1 – Evaluation Questions Annex 2 – Innovative Approaches and Good Practises Annex 3 – Map of Projects Divided by Topic

Methodology The aim of the thematic capitalisation is to identify good practises, innovative approaches, sustainability and added value of cross border cooperation, as well as the impact upon the target groups, project synergies and contribution to the implementation of European Union Strategy for the Baltic Sea Region (EUSBSR). Methods used for preparation of this report – desk research where the programme document, project applications and progress reports were analysed. Moreover, a focus group discussion with the project participants from Latvia was organised (with the representatives from projects “COOP EDU-Ship”, “Mission: to create”, “Local products”, “LatLitTraffic”, “Eneco”, “Educate for Business”, “Cross-border DISCOS”, “Science ft.Industry”, “TRUFFLE”, “Corss Border JRTC”), and individual interviews were conducted with the projects partners from Lithuania and Latvia (representing projects: “MFORBusinessgrowth”, “FruitTechCentre”, “COOP EDU-SHIP”, “Local Products”, “LTLVMARINE”, “eBig3”, “JOINT RT UNIT”, “FruitTechCentre”, “Business Library”). Firstly, we divided projects into five pools based on their thematic focus. Secondly, we identified good practises. The main criteria for inclusion of the good practice examples in this report were: new models for the public services to promote the employment; identifying and/ or developing the competitive advantages of the regions thus contributing to a local economy; step by step development – first understanding the context through the analysis, developing a cooperation strategy and then acting; demonstrating the effective use of resources and the added value of cross border cooperation; involving different stakeholders. We selected innovative approaches based on the definition from the INTERREG IVC Capitalisation report: “Innovation offers practical and more effective (better outcomes for the beneficiaries) solutions for social needs in their region, thereby enhancing their capacity to act” . After that we evaluated impact of the projects on their direct and indirect target groups and analysed project synergies. If and how projects contribute to the EUSBSR objectives, priorities and target indicators was also evaluated. Last but not least, conclusion and recommendations are proposed to optimise the thematic performance of programme in the next programming period. Detailed list of the evaluation questions is attached in the Annex 1. For the financial calculations of the ERDF contribution, the ERDF amount reported by the projects by November 2014 is used. For not finalised projects the financial calculations are made based on the ERDF amount set within the application form assuming all amendments if such occurred. We had some limitations during the preparation of the report – limited time frame and expected volume (max 10 pages), certain limitations of the information available regarding the on–going projects. The challenge was to evaluate the contribution of the projects to the field “Improvement of labour mobility and employment” defined in the new Latvia– Lithuania Cross Border Cooperation Programme 2014–2020 which is different from the directions of support of the current Latvia–Lithuania Programme under which projects were approved. This evaluation does not contain the impact analyses of the projects on the EUSBSR as this would require deeper field and socioeconomic analyses of the particular territories covered, which is not the task of this evaluation.

Thematic Background 2.1. Thematic Regional Development Context In all programme regions resources (measured by such indicators as GDP per capita, net migration rate, employment) are depleting – their value is decreasing because of the concentration of the economic activity in metropolitan regions. The agrarian economy dominates in the programme territory as the knowledge economy concentrates in the capital city regions. However, Klaipeda and Utena regions are classified as the Consumption Countryside regions that actively use its landscape and natural environment to raise the economic activity in such sectors as the tourism, the access to natural areas and periproductivist farming styles (small-scale, diversified farms in contrast to large scale, highly mechanised producers).

Figure 1. Structural Typology2

Moreover, Telsiai region has a strong manufacturing sector, and Kaunas region – a well developed service sector. The consumption countryside regions and regions with a strong private service sector are high performers and likely to accumulate resources in the future. The above mentioned regional development challenges, including the decrease of an employment in the primary sector (agriculture, forestry, fisheries, extraction of natural resources) and the concentration of an economic activity in the metropolitan regions, stress the importance of diversification of the regional economy by: • Promoting high value added production (including niche products) in traditional fields of the regions, e.g. the food, the wood production, the tourism; • Diversifying economies by developing the entrepreneurship in the existing specialization areas of regions; • Developing new entrepreneurs and business models in the fields of the knowledge economy, e.g. IT, creative industries, space technologies, distant professional services.

2 ESPON project EDORA – European Development Opportunities for Rural Areas (2013), http://www.espon.eu/main/Menu_Projects/Menu_AppliedResearch/edora.html

The implementation of regional smart specialisation strategies allows raising the value added in traditional and new sectors by employing “Triple Helix” model – facilitating fruitful university–industry–government relationships in solving the rural development challenges. The transition within the knowledge economy towards the creative economy opens new opportunities for the development of the competitive advantages in different industries of local economies. Moreover, the raising experience of an authentic countryside allows developing the demand for the tourism and the niche products, including local crafts products, the organic food and the cottage industry products, as well as short supply chains, brings new opportunities for the rural regions. The conventional transport and ICT allow connecting the regional human capital to the knowledge economy in metropolitan regions. Also smart work, defined as a work form when the duties are being performed using ICT outside the premises of the employer, may serve as an instrument for regional development by attracting people to rural areas or at least keeping people from moving to metropolitan areas. Nevertheless the life–long learning and the educational system (in particular vocational and higher education) shall ensure the qualified and skilled workforce according to the needs of employers. Close relationship with local economic actors, modern means and methods used within the education process, like e–learning tools, as well as the up–to–date curriculum is important for regional/ local educational and training institutions to respond to requirements of the labour market.

2.2. Pools of Projects Addressing Regional Development Challenges The field “Improvement of Labour Mobility and Employment” includes 43 projects with a total ERDF grant 21,04 million euros. As it is shown in the table below, projects have been divided into five pools based on their thematic focus.

Project Pool

Projects

ERDF Grants

(1) Youth development as future professionals, leaders, entrepreneurs (hereinafter – Youth development)

12 projects: Cross boarder JRTC, Natural sciences, COPQUALITY, Step into Craft, MatNet, Without Borders, Youth Leader School, Creative industries, Start ups promotion, VocEdu, EDUCATE FOR BUSINESS, BUILDER TRAINING

Average ERDF Grant 549 611 EUR

(2) Business and employment promotion

13 projects: ENTERBANK, Business Promotion, REDBURDEN, “F.A.R.” RESEARCH, REGION INVEST, MFORBusinessgrowth, Business library, THEME VILLAGES, VILLAGE HERITAGE, WILLINVEST, Invest to grow, Mission: to create, Local products

Average ERDF Grant 440 997 EUR

2 ESPON project EDORA – European Development Opportunities for Rural Areas (2013), http://www.espon.eu/main/Menu_Projects/Menu_AppliedResearch/edora.html

(3) Know how, innovations and new technologies (hereinafter – New technologies)

7 projects: FruitTechCentre, JOINT RT UNIT, Science ft. Industry, Cross-border DISCOS, ENECO, TRUFFLE, FARA

Average ERDF Grant 461 855 EUR

(4) Life-long learning

7 projects: LTLVMARINE, COOP EDUSHIP, eBig3, LTLV-MARINE-ENGINEER, INTERACTIVE TV, KEC, 5L

Average ERDF Grant 627 607 EUR

(5) Accessibility and mobility

4 projects: Roadside rest areas, LATLIT TRAFFIC, ActiveTour LV-LT, ROTLBSARM

Average ERDF Grant 1 399 798 EUR

Table 1. Pools of Projects in the Field “Improvement of Labour Mobility and Employment”

The pool “Youth Development” includes projects that ensure the professional development of the students and youth to be more competitive in the labour market or in the business. The thematic focus of the pool “Business and Employment Promotion” is related to the activities encouraging potential entrepreneurs and craftsmen to start the business or the self-employment, providing researches and other business related information for the development of the existing and new entrepreneurs, identifying and promoting the specialisation of the local economies of the municipalities, attracting investors to regions and reducing administrative barriers for the entrepreneurs. Projects within the pool “New Technologies” are related to the applied researches for the benefit of particular industries, the development of new technologies and the high level innovations, for instance in the space technologies, and finding ways of adapting new industries in the programme area, e.g. planting the truffles in this area. The “Life-long learning” projects focus on the development of the education and training facilities for the improvement of the skills of existing employees and adults, in general. Thus projects contribute to the employment promotion and increasing of the competitiveness of the local inhabitants into the labour market. The main focus of the “Accessibility and mobility” projects is related to the increasing the traffic safety in the border regions, improving the side infrastructure of highways, for instance, planning of the suitable rest areas for drivers and tourists, developing the transport infrastructure to improve the accessibility of municipalities on both sides of the border.

Majority of funding (29%) have received projects from the poll “Youth Development” followed by rather equal division among the pools “Business and Employment Promotion”, “Life–long Learning” and “Accessibility and Mobility”. Projects within these pools produce not just only intellectual outputs, but as well contain the investment components improving the infrastructure and the equipment. Therefore these pools require more funding, especially in the pool “Accessibility and Mobility”. The smallest share of the funding has received projects from the pool “New Technologies”.

Figure 2. Amount of ERDF Divided by Pools of Projects, %

2.3. Geographical Aspects of Partnerships Established Analysing the cooperation of the project partners from the geographical perspective, within this field there is a mainstream tendency that the highest number of projects is implemented within the metropolitan areas of the regions covered by the programme (see the map with cooperation links in the Annex 3 for details). The most active were the partners from Jelgava with 19 projects, the partners from Klaipeda with 18 projects, and the partners form Siauliai with 17 projects implemented. Within the pool “Youth Development” the most active partners are from Jelgava, Ventspils, Klaipeda and Kaunas. However two projects shall be highlighted covering the partnership in rather wide geographical areas. The project “Creative industries” led by Zemgale Planning Region covers almost whole the programme area. The project “VocEdu” led by Kurzeme Planning Region covers western and middle part of the programme area. Regardless the complicated management of both projects involving 16 project partners each, both lead partners demonstrate the advanced capacity within the successful management of the project towards reaching the objectives. Distinctly the significance of those projects is seen through wide exploitation of the project results within the society. Moreover this pool includes several projects with a bilateral cooperation between the vocational or higher education institutions sharing the knowledge and best experience in common sectors. Projects of this pool demonstrates as well the involvement of different stakeholders, for instance, the vocational education institutions cooperate with municipalities or regional bodies thus broadening the target groups of projects and involving local / regional policy makers in the professional development of young people.

The pool “Business and Employment Promotion” shows an active cooperation among Latgale region in Latvia and Utena, and Ignalina regions in Lithuania. Klaipeda, Siauliai, Daugavpils and Rezekne have implemented relatively high number of projects in this pool. The most active partners in this pool have been local authorities, which is obvious as they are primarily interested to promote the entrepreneurship and employment, and the development of a local economy in general. Less active in these projects were higher education institutions, NGOs and regional administrations. However, like in previous pool, few projects implemented by the regional bodies demonstrated wider coverage of target groups and geographical areas. In general, the projects of this pool have been comparatively monotonic by the type of stakeholders involved. For better achievement of project results and their exploitation among wider target groups, it is important to ensure cooperation of different stakeholders, at least, but not limited to: educational institutions, local/ regional/ national policy makers, business support organisations and the industry/ business representatives. Within the pool “New Technologies” the most active partners were from metropolitan areas, like Jelgava, Siauliai and Daugavpils, which is obvious as most of regional higher education and research institutions are located there. These institutions mainly have implemented projects within this pool. Within this pool for a better accumulation and use of projects results the cooperation with the industry/ business representatives shall be ensured further. Moreover policy makers in all levels shall be involved to respond with support initiatives for the development of new technologies and innovations. The project “Science ft. Industries” (led by Jelgava City Council) shall be highlighted that formed the partnership between the higher education institutions and municipalities broadening the possibilities to involve wider target audience and improve the cooperation with entrepreneurs. Within the pool “Life-long Learning” most active partners were from Liepaja, Siauliai and Ventspils. The higher education institutions and local authorities have mainly implemented projects within this pool. This tendency is reasonable, as these institutions are currently responsible for the provision of the life–long learning opportunities for the employees and adults in both countries. “Accessibility and Mobility” – as this pool contains just 4 projects, it is not possible to observe any trends in the cooperation. However it is notable that projects have been implemented by municipalities in eastern and western parts of the programme area (Latgale region and North–East regions of Lithuania; Kurzeme and West–North regions of Lithuania).

Thematic Analyses 3.1. Main Problems Addressed and Solutions provided The table below shows main problems addressed by the pool “Youth Development”. Most of projects addressed rather similar problems that are grouped in six groups. Table 2. Main Problems Addressed by the Pools “Youth Development”

Problems addressed

Corresponding Projects

The out-dated curricula (training programmes) and learning materials do not correspond to the needs of the labour market

Cross boarder JRTC, Natural sciences, Step into Craft, MatNet, Youth Leader School, VocEdu, BUILDER TRAINING, COPQUALITY, MatNet

Lack of the competence on the modern teaching methods and tools among the teachers (the academic staff) within the educational institutions

Natural Sciences, MatNet, promotion, BUILDER TRAINING

The underdeveloped infrastructure and the out-dated equipment within the education and training institutions

Cross boarder JRTC, Natural sciences, COPQUALITY, VocEdu, BUILDER TRAINING, Step into Craft, Creative industries, BUILDER TRAINING

Weak or lack of cross border cooperation networks (platforms) within the field of the education

Cross boarder JRTC, Without Borders, VocEdu, EDUCATE FOR BUSINESS, BUILDER TRAINING, Step into Craft, Creative industries

Low interest by students to study the natural / technical sciences and the vocational education (hereinafter – VET) and a lack of understanding of the importance of VET for the development of a local economies

Without borders, Step into Crafts, Natural Sciences, MatNet, Start ups promotion, VocEdu

Lack of an entrepreneurial spirit, the knowledge, skills and the ability among the young people to start their own business

COPQUALITY, Without Borders, Youth Leader School, Creative industries, Start ups promotion

Start

ups

Analysing the solutions provided by the projects, most of the projects were developing new or improving existing curricula in different fields. In the development of new training programmes the best experience were exchanged between the partners on both sides of the border. Some projects (e.g. “VocEdu”, “Creative industries”) have carried out the researches about the labour market needs or the specialisation of particular regions in order to better address the specifics of local economies. This is a good practice as the improved curricula more responds to the needs of the employers. In general the education process has shifted from the teaching to learning and more reflection by students. It is of the importance of each teacher to seek for modern tools and methods to be used within the learning process in order to keep the attention and interest of students to get new knowledge. It can be stressed as a good approach, the project “Start up promotion” led by Kurzeme Planning Region introduced within VET institutions new and modern tools for teaching the entrepreneurship by using business simulation games and involving the experienced entrepreneurs within the learning process. This gives an opportunity for the students to gain more practical skills of the day–to day business operations as well as motivates them to start their own business. Also simulation games completely involve students within the learning process and keeps attention to the learning topic. Moreover the project “MatNet” led by Siauliai University was researching and exchanging the best experience in teaching the mathematics in a way that increases the interest of students to mathematical and technical sciences, in general. Most of projects contained the investment component for the development of the infrastructure and the equipment of education institutions. Such investments improve the general appearance of the educational institutions. The availability of the modern equipment is an important part of the modern and up-to date education. This improves the overall image of the education institutions and might give an impact to the increase of the number of students. Strengthened cross border cooperation networks of the education institutions allow joining efforts, the competence and the experience for further improvement of the work and the efficiency of the education institutions. Some projects opened possibilities for the education institutions to organise common lectures in both sides of the border. That gave opportunity for students to get the best knowledge and the expertise from the academic staff not just from their own school, but as well from the similar school from neighbouring country thus widening the educational opportunities for students and increasing their competitiveness in the labour market. The entrepreneurial skills and knowledge of students were developed by trainings about starting and developing the business, marketing and other aspects related to the entrepreneurship. Step forward in developing the entrepreneurial ability of young people were the elaboration of business plans on how to start their businesses, for example, within the project “Without Borders” (the lead partner: Latvian Agricultural Organisation Cooperation Council). Within the project “Youth Leader School” (the lead partner: Association “Ventspils Youth Council”) training was organised for young people to improve and develop their leadership skills, which are important to run a business successfully.

The competitive advantages and opportunities of regions for the development of creative industries were analysed within the project “Creative industries” (the lead partner: Zemgale Planning Region). That gave a base for organising more targeted events (e.g. trainings, workshops) for the potential entrepreneurs willing to develop their creative business ideas. Moreover, this project raised the importance of the commercialization of creative business ideas, meaning not just creating creative products, but selling them to customers which is often a drawback for creative people. Most of problems identified are still in common and shall be further solved. In particular, it is important to increase of the prestige of VET and to promote young people and students to start their own business instead of just getting the theoretical knowledge on the entrepreneurship. Projects of the pool “Business and Employment Promotion” address three groups of problems and tries to challenge some opportunities for the development of programme regions. Table 3. Main Problems and Challenges Addressed by the Pools “Business and Employment Promotion”

Problems and challenges addressed

Corresponding Projects

1st problem: lack of business support, especially for start-ups, persons willing to start their own business, small entrepreneurs and farmers

ENTERBANK, Business library, Business promotion, REGION INVEST, Local products, Invest to grow, WILLINVEST, Mission: to create

2nd problem: lack of competitive, sustainable and creative business ideas

ENTERBANK, Business library, Business promotion, REGION INVEST, F.A.R.RESEARCH, Mission: to create

3rd problem: ineffective public services working for and cooperating with the entrepreneurs, as well as planning a local economic development

REDBURDEN, MFORBusinessgrowth, Business promotion, Invest to grow, Business library, Mission: to create

1st challenge: attraction of investors and creating new opportunities for the development of a business in the border regions

F.A.R.RESEARCH, Business promotion, REGION INVEST, Invest to grow, WILLINVEST, Business library

2nd challenge: the industrial specialisation and an image of municipalities

THEME VILLAGES, VILLAGE HERITAGE, Mission: to create, Invest to grow

As projects within this pool provides rather different and wide range of solutions for the problems identified, the ones that can facilitate further development of project ideas are highlighted below. Additional innovative and good approaches of projects are described within Annex 2 and further sections of this report.

The insufficient business support has been solved by strengthening the business incubators and other business support organisations. Several trainings and consultations were provided to existing and new entrepreneurs. Public libraries especially those located in least developed border municipalities shall act as promoters of a local economic growth. Using their information, technology and human resources, as well as networking opportunities municipal libraries can be of benefit for the development of local entrepreneurs, innovations and the economic activity of local society. This idea has been initiated within the programme area by the project “Business library” led by Bauska Municipality Council. The project REGION INVEST (the lead partner Latgale Planning Region) by organising trainings on the innovation and export promotion gave impetus for increasing the competitiveness of the entrepreneurs. Comparatively large target audience were reached by this project. Utilising already recognised business ideas can solve the lack of competitive business ideas. The project “F.A.R. Research” (the lead partner Lithuanian Business Employers’ Confederation) analysed the business development opportunities using franchises. The website www.brand4baltic.lt/ has been developed publishing the information on the business opportunities through franchising. This is an important topic to be raised for the development of local economies. Often franchisors are putting strict requirements, which not always can be followed by the franchise entrepreneurs, in particular those located outside metropolitan areas. Therefore there is still a plenty of issues to be further worked on to improve the conditions for the development of franchising. Moreover the outstanding issue for next projects is to motivate local entrepreneurs to widen business opportunities by becoming as franchisors on the international level. The project “MFORBusinessgrowth” (led by Kaunas University of Technology) developed the unique business growth simulation program based on which the cross-border regional business growth index is determined. This Business growth simulation program could be used not only for calculating the competitiveness index of regions, but it could be successfully used by researchers and students for calculating, comparing, and analysing any statistical results. However the exploitation of such intellectual outputs by wider target groups is essential and shall be considered in further projects. The project “REDBURDEN” (led by Latvian University of Agriculture) analysed the possibilities of improving the efficiency of the work of public institutions and reducing administrative burdens for entrepreneurs. After the project through mutual cooperation between the researchers and local public authorities the administrative burdens were decreased by 10–15%. Reports on the changes introduced within the administrative procedures and legislative acts are published . The potential of the investment attraction has been analysed, the targeted information for the investors on the industrial sites available in border areas have been published and investment proposals for investors about the investment opportunities have been prepared by several projects (e.g. “WILLINVEST” led by Latgale Planning Region, “Business library”).

There are several initiatives supporting people to generate new business ideas and to start the business named as initiation phase of the companies. However the expansion and further successful development of companies is a problem as the rates of fails and a closure of new ventures are still high. The movement from the initiation to the growth phase of new venture is a bottleneck as new entrepreneurs lack the skills and an experience on how to increase sales, to reach the export markets, to expand the production and attract more employees, introduce innovations and attract external funding. For instance, mentoring is one of ways how to increase the confidence of new entrepreneurs to move forward. The projects of the pool “New Technologies” were oriented towards the creation of new opportunities for the regional development.

Table 4. Main Challenges Addressed by the Pools “New Technologies”

Challenges addressed

Corresponding Projects

Increasing the competitiveness of the entrepreneurs and farmers in different sectors

Joint RT Unit, FruitTechCentre, FARA

Increasing the productivity and higher value added within different business and agriculture sectors

Joint RT Unit, FruitTechCentre, FARA

Introducing new industries within the Baltics and international level

TRUFFLE, ENECO, Cross–border DISCOS

Developing new technologies

FruitTechCentre, Cross–border, TRUFFLE, ENECO

Improving the cooperation institutions and entrepreneurs

research

Science ft.Industry, ENECO, FruitTechCentre

Solutions provided by the projects are rather homogeneous by all projects. Joint teams of researchers from both countries have carried out applied researches. The research infrastructure and the equipment have been improved. Joint cross border technology transfer and exchange centres have been established putting together all research resources of both countries. In general cross border cooperation networks of research institutions for the development of new technologies have been strengthened. This will serve as a good base for further development of research activities in the transnational level, for instance, using EU programme Horizon 2020.

Still opened challenged within this pool is to conduct applied researches for the benefit and interest of a business. Projects have organised trainings for entrepreneurs and farmers on the research results and the importance of the research within the successful development of a business (e.g. the project “FruitTechCentre” led by Latvia State Institute of Fruit – growing, the project “Science ft. Industry” led by Jelgava City Council, the project “JOINT RT UNIT” led by Daugavpils University, etc.). However more closer cooperation links with the end users (industry/ business representatives) are of a major importance in such projects. Development of innovative products or new technologies might turn into successful business opportunities of regions and thus ensuring the increase of the economic activity and the employment. Further in order to optimise the benefits from the inventions got by scientists, these innovations shall reach the industry and enter the market as new products or new technologies applied and used within the business. All projects of a pool “Life-long Learning” solve following interrelated problems: a lack of life-long learning (hereinafter – LLL) opportunities; a lack of modern and up – to date learning materials; the out-dated learning infrastructure and the equipment. As a mainstream tendency of most of projects is to ensure “learn – anywhere – anytime opportunities” by developing e–learning materials and e–learning platforms (e.g. “KEC” led by Lithuanina Maritime Academy, the project “5L” led by Kurzeme Planning Region), developing innovative cross media learning delivery system using a computer, TV or mobile devices (the project “eBig3” led by Riga Technical University, the project “INTERACTIVE TV” led by Ventspils Digital Centre). Further challenges are related to closer cooperation with employers to ensure more targeted increase of the qualification of employees according to the needs of the labour market. Still actual issue is development of the smart solutions for better accessibility of LLL. There are two problem fields covered by the projects of the pool “Accessibility and Mobility”. • The transport/road safety. The project “Roadside rest areas” (led by Latvian Transport Development and Education Association) targets on developing safe rest places on major highways. While the project “LATLIT TRAFFIC” (led by Euroregion “Country of Lakes”) aims to development of the road infrastructure through the preparation of technical documentation and the reconstruction of roads and streets in border areas. • Low activity of tourism and local interaction in the border regions. Projects aim to attract tourists and improve the cross border flow of local inhabitants and visitors. The project “ActiveTour LV-LT” (led by Palanga Town Municipality Administration) improving the tourism infrastructure by the reconstruction of the cycling track. The project “ROTLBSARM” (led by Skuodas District Municipality Administration) was developing a technical documentation for the constructing of the bridge improving the accessibility and joining two municipalities on both sides of the border. Stronger involvement of target groups within projects of all pools shall be further ensured and the precondition for that are detailed analyses of the needs of target groups before the preparation of the project.

3.2. Main Target Groups Having Impact by Projects Projects of the pool “Youth Development” mainly focus on the following target groups: 1) students and young people, 2) teachers and the academic staff of the education institutions, 3) the employers as an indirect target group. Up–to–date curricula and new teaching methods applied improve the learning process and improves the knowledge level of students. They are more competitive within the labour market or more encouraged to start their own business. Improved infrastructure and the equipment of the education institutions allows to provide better education opportunities and thus to attract more students. Employers get better skilled workforce according to their needs. Projects of the pool “Business and Employment Promotion” focus on the following target groups: 1) people willing to start the business (e.g. students) and business start-ups 2) existing entrepreneurs and investors, 3) self – employed persons and craftsmen, 4) local municipalities and a society as indirect target groups. Business start-ups and existing entrepreneurs received wide range of different support activities for the initiation and development of sustainable and creative business ideas. Investors were approached by the targeted information on the investment opportunities and industrial areas available within the border areas. Administrative barriers were reduced in some municipalities in order to facilitate the work of entrepreneurs and to optimise the efficiency of public services. Self – employed and craftsmen were encouraged to start sales of their products and services to customers. Local municipalities as indirect target audience benefit from the increasing the economic activity within the border areas thus improving the income level and the life quality of the local inhabitants. The pool “New Technologies” mainly focus on the following target groups: 1) the scientists, researchers and other staff of the higher education and research institutions, 2) new and existing entrepreneurs or farmers. By having improved the research infrastructure and by cross border researchers networks established, scientists increased their capacity to develop applied researches and new technologies of the international significance. Entrepreneurs using the results of the researchers can increase their competitiveness and a value added of the products. “Life-Long Learning” (hereinafter – LLL) – projects mainly focus on adult people in a work age who are already employed or seek for job opportunities. Improvement of LLL opportunities contributes to solving regional development challenges as employees and adults, in general, getting better knowledge in specific sectors thus increasing their competitiveness and the employment opportunities. “Accessibility and Mobility” – mainly focuses on local inhabitants (“ROTLBSARM”), tourists (“ActiveTour LV-LT”) and people going through the region in transit (“LATLIT TRAFFIC”, “Roadside rest areas”). The attractiveness and accessibility of the border regions have been improved. Improving the quality of life of local inhabitants as well as the mobility opportunities of labour force solves the depopulation problem of border areas.

3.3. Innovative Approaches and Good Practice Numerous innovative approaches and good practices have been identified (please refer to annex 2 for more details). Innovative approaches in the project pool “Youth Development” mainly focuses on the implementation of virtual instruments and distance learning facilities, for instance, interconnected virtual ICT laboratories and a Joint research and training centre in high technology ICT area has been developed in the project “Cross boarder JRTC” (led by Klaipeda University). Good practices in the pool “Youth Development” can be found in several projects that have created e-learning platforms (e.g. “Cross boarder JRTC”). Innovative approaches of projects in the pool “Business and Employment Promotion” mainly focus on ways how to support business or promote new businesses/start-ups. For the support, a good example is a project “Business library” that develops a business support network of libraries. Libraries are planned to make as local business support points with their existing resources. For the promotion of new business and start-ups, “Theme Vilages” and “VILLAGE HERITAGE” are outstanding examples as both projects have similar ideas: each village identifies theme where the entrepreneurs and craftsmen are specialised further facilitate their development with more targeted activities. The project pool “New Technologies” is composed by innovative projects in general. The projects “FruitTechCentre” developed the Technology Transfer Centre with a mobile laboratory for the benefit of fruit growers. Project “Cross-border DISCOS” concentrates on a highly science intensive theme–space signals. Good practices of this pool are mainly concerned with research and development of new niche industries that further can initiate new businesses or promote the economic development of regions. The good practice in the project pool “Life-long Learning” is that one set of partners has cooperated for a long time and has implemented a sequence of three projects using stepby-step approach. Project joints the efforts in further development of the competitiveness of the labour force on international level. A project “eBig3” is with high innovation level developing a multiscreen, multi content e-learning platform, which is first such platform in the world. In the project pool “Accessibility and Mobility” innovative and good practice is seen in the project “Roadside rest areas”, which involves research-based justifications in the planning of roadside rest areas, and introduces smart solutions within the transport management system. Since 2014 Ersamus + “Strategic partnership” programme supports cross border cooperation projects between the education or youth institutions with the aim to produce different innovative intellectual outputs for improving the education process or the youth development. Further not to overlap the support of Ersamus+ with Latvia–Lithuania

Programme, projects shall be more targeted on solving the regional development problems or creating new opportunities for the regions covered. Projects shall be coherent with the (smart) specialisation of regions set within the development strategies.

3.4. Project Synergies There are several sets of projects having similar objectives, but are located into different regions (e.g. West and East). Good examples of such projects are in the pool “Business and Employment Promotion” – project “ENTERBANK”, which operates in the West region (Klaipeda and Ventspils) and “Region Invest” in the East region (Latgale Region and Ignalina). Although the projects have differences “ENTERBANK” is more focused on virtual incubation while “Region Invest” more on the education of existing and future entrepreneurs. They both cover the business incubation theme. If these projects would cooperate, they could achieve high synergy effect, as “ENTERBANK” could share the experience in the virtual incubation, while “Region Invest” the training content. Projects “VILLAGE HERITAGE” and “THEME VILLAGES” exploit very similar idea – developing thematic clusters within villages for more efficient business or craft operations and for tourist attraction. Another opportunity for cumulative effects is in initiating new industries by researches of the scientists in the pool “New Technologies”. “TRUFFLE” and “ENECO” projects bring for the business researches that might introduce new industries within the regions. The idea of a project “F.A.R. Research” was continued in a wider partnership with Belarusian partners attracting the support of LV–LT–BY CBC ENPI Programme and developing FRANCHISE HUB, which is a contact point promoting franchising in Baltics and Belarus. This is seen as a good example of the synergies with other support instruments. “LTLVMARINE” project allowed developing one part of the training facilities needed for the education and training of seafarers. With the support of ERDF mainstream programme, the European fishery fund and own funding the Lithuanian Maritime Academy has developed the complex of simulators consisting of Multifunctional navigational simulator, Engine room simulator, Cargo handling simulator, GMDSS simulator. All simulators together form so called virtual ship. This is another good example of synergies with other financial instruments.

3.5. Coherence to the European Union Strategy for the Baltic Sea Region (EUSBSR) Coherence is analysed in two ways – correspondence to EUSBSR objectives and direct/indirect impact on targets and impacts of these objectives. 15% of the ERDF grant (3 projects) corresponds to EUSBSR objective “Connect the region” and 85% of the grant (40 projects) correspond to “Increase Prosperity”. Breakdown of the funding

among priority areas shows that the leader is “Increase Prosperity: Education – Developing innovative education and Youth” with 43% of funding. It is followed by “Increase Prosperity: SME – Promote entrepreneurship and strengthen the growth of SMEs” with 24% of funding. Projects corresponding to the priority area “Connect the Region: Transport – Improving internal and external transport links” have attracted 15% of the funding and projects corresponding to the priority area “Increase Prosperity: Innovation – Exploiting the full potential of the region” – 13% of funding.

Figure 2. Amount of ERDF Divided by Pools of Projects, %

All projects of this field have direct or at least indirect impact on at least one indicator of the objectives of EUSBSR. Almost all projects contribute to the objective Increase Prosperity’ of EUSBSR, however several projects from the pool “Accessibility and mobility” contribute to the objective “Connect the Region” (“Roadside rest areas”, “LATLIT TRAFFIC”, “ROTLBSARM”). All projects from the pool “Business and Employment Promotion” directly contribute to the indicators concerned with employment rate and GDP Growth, as well as all projects from the pool “Life-long Learning” directly contributes to the indicators of Employment and Labor Productivity Index. Projects “Cross boarder JRTC”, “eBig3”, “FruitTechCentre”, “JOINT RT UNIT”, “Science ft. Industry”, “Cross-border DISCOS” directly contribute to the R&D expenditure, as either it has investments in the R&D or it creates the infrastructure for further R&D activities (e.g. “FruitTechCentre”).

Conclusions and Recommendations • Projects of the field “Improvement of Labour Mobility and Employment” form groups or pools based on their thematic focus: “Youth Development”, “Business and Employment Promotion”, “New Technologies”, “Life–long learning”, “Accessibility and Mobility”. • Each pool of projects contributes to solving different regional development problems in the Programme area. • Regardless the complicated management of large partnership projects led by regional bodies, such projects demonstrate the significance within the wide exploitation of the project results among the target groups and the society, in general. • For better achievement of project results and their exploitation among wider target groups, it is important to ensure cooperation of different stakeholders, e.g. educational institutions, policy makers, business support organisations and the industry/ business representatives. In particular, this shall be highlighted in pools “Youth Development” and “New Technologies”. • Besides the other problems identified in the pool “Youth Development”, it is important to increase the prestige of the vocational education and training, and to encourage young people and students to start their own business instead of just getting the theoretical knowledge in a business. • The pool “Business and Employment Promotion” has several outstanding challenges: the encouragement of local entrepreneurs to widen business opportunities in using the franchise, as well as becoming as franchisors on the international level; the improvement of skills and experience of new entrepreneurs to move a company from the initiation to the growth phase. • In order to optimise the benefits from the inventions got by scientists within the pool “New technologies”, these innovations shall better reach the industry and enter the market as new products or new technologies applied and used within the business. • More closer cooperation with employers to ensure the increase of the qualification of employees according to the needs of the labour market as well as the development of smart solutions for better accessibility of LLL are outstanding. • Detailed analyses of the needs of target groups are essential in all projects before drafting the project. • Projects have demonstrated innovative approaches and good practises to be transferred to other regions as the best experience.

• The good practice and the innovative approach of projects “Business library”, “Creative industries”, “THEME VILLAGES”, “VILLAGE HERITAGE”, “Region invest”, “Roadside rest areas” can be directly transferred and exploited by other regions. • In turn, the approach applied by projects “Cross boarder JRTC”, “FruitTechCentre”, “Cross–border DISCOS”, “TRUFFLE”, “ENECO”, “LTLVMARINE”, “KEC”, “eBig3” can be learned and used in other sectors. • Synergy of projects also should be considered as an important criterion for future projects by making cumulative effect and added value not only on the project level, but as well as on the Programme level.

Annex 1 â&#x20AC;&#x201C; List of evaluation questions Content of the report

Evaluation questions

1. Methodology

n/a

2. Thematic background 2.1.Thematic regional development context

What is an overall thematic regional development context?

2.2. Pools of projects addressing regional development challenges

What are mainstream (intervention) fields comprising pools of projects?

2.3. Geographical aspects of partnerships established

1. What are the geographical aspects of partnerships established? 2. Are there any trends in forming partnerships by particular stakeholders within each pool?

3. Thematic Analyses 3.1. Main problems addressed and solutions provided

1. What are common regional development problems, difficulties and challenges addressed by projects? 2. Are there any new opportunities identified or created? 3. How pools of projects are compliant/ related to regional development problems identified? 4. What are the solutions provided by the projects?

3.2. Main target groups having impact by projects

1. What are main target groups addressed by each pool of projects? 2. What are mainstream results achieved by projects? 3. Is there any impact of the results on target groups?

3.3. Innovative approaches and good practice

1. What are the innovative approaches and good practice? 2. What are common challenges and success cases/ stories? 3. What are different solutions to common problems? 4. What is added value of cross border cooperation? 5. What are most significant results and best examples to be of interest of other regions? 6. What are main preconditions for the transfer of good practice identified?

3.4. Project synergies

1. Synergies with other projects and EU programmes within regions. 2. Cumulative effects of supported projects.

3.5. Coherence to the European Union Strategy for the Baltic Sea Region (EUSBSR)

How and to what extent projects comply to the objectives and priority areas of EUSBSR?

4. Conclusions and recommendations

1. Key issues to potential applicants and projects. 2. Key issues to programme management bodies. 3. Key issues to local, regional, national and if applicable to EU stakeholders, policy makers.

Annex 2 – Innovative Approaches and Good Practises Table 1. Overview of innovative approaches and good practices within the project pool “Youth Development”

Project

The innovative approaches and good practices

Cross boarder JRTC

The objective of the project is to establish and implement a Joint research and training centre in the area of ICT in order to promote a knowledge-driven economy development in the region. Innovative approach – Project focuses on the development of virtual instruments, networking and distance learning facilities that provides equal opportunities for students and specialists to access the newly developed study materials, the modern laboratory has been created in order to participate in the research and development activities. The project formed good base for further development of highlevel ICT professionals to be employed not just locally, but as well internationally. Good practice – Cross border cooperation creates additional opportunities for each partner to use the expertise and resources of another partner in different areas through the training, curriculum development and by exchanging the innovative technologies that creates added value for the cooperation. The project has developed good and useful webpage: http://iik.ku.lt/jrtc/ Lead partner: Klaipeda University; Partner: Ventspils University College. Project aims at creating a supportive environment for the development of the creative industries. Project facilitate the development and commercialisation of the creative business ideas by: (1) establishing the cross border cooperation network, (2) training young people about the establishment and development of the creative business and (3) improving the infrastructure of art schools, music schools and youth centres in local municipalities.

Creative Industries

Good practice – a research has been carried out to identify competitive advantages, local creative assets and further challenges of the regions to promote the development of creative industries. Research is available in http://www.jelgava.lv/pasvaldiba/ projekti/2011-gads2/latvijas---lietuvas-parrobezu-sadarbibas3/ radoso-industriju-attistiba-latvijas---l/ (in Latvian with the summary in English).

The good practice within this project is seen through the involvement of different stakeholders and covering wide target audience almost in the whole programme area. The “Creative metropoles” is an innovative approach introduced already throughout the EU and now approached as well in this pool. This idea has wider context by introducing innovative and smart solutions within the large cities, for instance, smart planning of the transport system, creative solutions for the accessibility of public services and solving the social problems, etc. The project “Creative industries” made step forward covering a part of this context through encouraging through analysing the opportunities to develop creative industries and encouraging young people to develop innovative and creative products using the local creative assets available. Lead partner: Zemgale Planning Region; Other partners: Latgale Planning Region, PI “Siauliai Region Development Agency”, Liepaja Secondary Art School, Jelgava City Council, Klaipeda University, Youth Center of Rokiskis, Kuldiga Local Municipality, Council of Rundale Local Municipality, Administration of Birstonas Municipality, Education Authority of Ventspils City Council, Plavinas Art School, Visaginas Youth Centre, Ozolnieki Municipality, Aizkraukle County Council, Kurzeme Planning Region.

Table 2. Overview of innovative approaches and good practices in the project pool “Business and Employment Promotion”

Project

The innovative approaches and good practices

Business library

In the global context (in North EU countries, USA, Canada etc.) libraries become places for incubating innovation, co–creation and engagement of new business ideas, sharing cross – sectorial knowledge and receiving different public e–services. Libraries shall change from “book oriented” towards the “customer oriented” service approach. This project has developed this innovative approach by using the existing human, technological, information and other resources of libraries; a wide range of support tools for the existing and potential businesses has been created. Thus libraries can act as local catalysts for the development of innovative and creative business ideas, as well as the attraction of investors. Good approach was the establishment of the cross border cooperation network of business support libraries for the consolidation of resources as well as the involvement of business representatives within the implementation of the project. Lead partner: Bauska Local Municipality Council; Other partners: Pakruojis District Municipality Administration, District Municipality Administration, Birzai District Municipality Administration, Rundale Local Municipality Council, Business Club Bauska 97.

2 projects THEME VILLAGES VILLAGE HERITAGE

These two projects have very similar ideas and form good practices of the synergies of solving similar regional development problems. Thus the innovative approaches are similar and described together. The innovative approach: the project identified particular theme of specialisation for each village based on the focus on local entrepreneurs, crafts and other activities of local inhabitants. As a result, small thematic clusters of villages of particular theme are formed and promoted, thus supporting the work of local entrepreneurs or craftsman, by sharing different services, improving logistics and supplies, sharing knowledge and organising common sales promotion etc. Good practice is seen as well in the step-by-step actions as both projects involve Latgale Planning Region allowing sharing good experience from one to another project implemented. The project “Theme Village” – Lead partner: Radviliskis District Municipality Skemiai Local Administration; Partner: Latgale Planning Region

The project “VILLAGE HERITAGE” – Lead partner: Ignalina Nuclear Power Plant Regional Development Agency; Partner: Latgale Planning Region. REGION INVEST

The good approach of the project is by involving different stakeholders in order to reach comparatively wide target audience. The project has very wide range of support activities and achievable results: 360 businesses who received training in business management, starting a business and planning exports; 80 representatives of business information centres, business associations, municipalities participated in the workshops on the development of new technologies; 400 representatives of the business sector who receive consultations on innovations and launching exports; 40 private and public partners who developed investment portfolios and 4 of them have been actively promoted; 20 companies with innovative products exposed at business fairs; 200 participants of the Business Forums (businesses, researchers, municipalities, incubators), etc. Lead partner: Latgale Planning Region; Other partners: Ignalina Nuclear Power Plant Regional Development Agency, Latgale Regional Development Agency.

Table 3. Overview of innovative approaches and good practices in the project pool “New Technologies”

Project

The innovative approaches and good practices

FruitTechCentre

The objective of the project is to develop a Technology Transfer Centre (TTC), which will bring the newest technologies developed and tested at the research institutions to the entrepreneurs in the fruit-growing sector. Innovative approach – the development of a TTC will be an innovative and demanded solution for the transfer of modern technologies to the entrepreneurs. The new mobile laboratories will be used at farms in the border region to evaluate the quality of fruits, the harvest maturity, soil characteristics and suitability of orchard locations. The good approach is the involvement of the target groups in further exploitation of the project results thus ensuring the sustainability of them. Lead partner: Institute of Latvian Agriculture; Partner: Lithuanian Institute of Horticulture.

Cross-border DISCOS

The project facilitates the possibilities to carry out researches about the transfer of space through the wireless and wired networks thus forming further base of the development new space technologies. Innovative approach – this project differs from other projects that it exploits highly science intensive theme – in space technologies. The cross border partnership strengthens the capacity of partners to become stronger in development of new technologies on the Europe and worldwide level. The good approach is demonstrated through the use of the unique competitive advantages and assets available of represented regions in order to develop further opportunities for regional development. The project has valuable webpage in the pool http://iik.ku.lt/discos/ which is professionally developed and provides understandable information about the project, its status and main objectives and results, e.g. explanatory graphics, that helps better understand difficult scientific issues of the project. Lead partner: Klaipeda University; Partner: Ventspils University College.

TRUFFLE

The project promotes and researches the possibilities of the truffle growing in the regions covered. Innovative approach – the project aims to introduce a new sector of the agriculture in the regions covered and within Baltics, in general. Project provides practical researches on the possibilities to launch this non – traditional agriculture. That in the future can form a new industry giving the possibility to increase income and entrepreneurship in regions. Main partner: Latvia University of Agriculture; Partners: Institute of Forestry, Lithuanian Research Centre for Agriculture and Forestry, Klaipeda University, Riga Technical University.

ENECO

Innovative approach: the project investigated the possibilities of planting and cultivation of the energy forest (fast-growing trees) in regions covered. Moreover the project researched the solutions of the actual problem within the industry, how to use the wood ash in the fertilization of the forest soil. At present this wood ash is considered to be a waste and thus creates addition costs for the heating and cogeneration companies to utilise it. The successful results of researches will bring new business opportunities for the regions.

Good practice – the project responded to actual problems of the business needs of our regions and ensured close cooperation with entrepreneurs as potential target audiences. Lead partner: Siauliai University; Partner: Latvia University of Agriculture.

Table 4. Overview of innovative approaches and good practices in the project pool “Life-long Learning”

Project

The innovative approaches and good practices

LTLVMARINE

Good practice The project can be considered as the good practise because of its positive influence to the competitiveness of the maritime labour force in both countries directly responding to the specific needs of particular regions. Results of the project significantly enhanced the education and training of seafarers and helped to develop life-long learning facilities for seafarers: • The three study programmes for students and for seafarers were updated in accordance with new requirements and technical developments. These study programmes were approved or negotiated with the maritime administrations in both countries; • The qualification of teachers from both institutions was upgraded; • Useful handbooks for seafarers were written and published in four languages. The books are very popular among students and seafarers. Moreover, the implementation of this project identified new challenges and problems in both countries thus initiating other projects (LTLV-MARINE-ENGINEER and KEC) being implemented by support of this programme. All three projects show a logical sequence of the development – the improvement of the Life-long learning opportunities --> the upgrade of the existing infrastructure and education programmes --> the development of an e-service centre serving as a base for e-learning system.

The innovative approach The computerized simulators (the Global Maritime Distress and Safety System simulator; the Engine room simulator) were installed that are used by students in order to get the practical skills, as well as used by already employed seafarers in order to increase their qualification. Project demonstrates real added value of the cross border cooperation in joining the efforts in the development of the maritime sector. In the global labour market, where Lithuanians and Latvians meet severe competition of Asian countries, only joint actions using active cooperation and exchange of positive experience can create added value. The shortage of labour force, demographic processes and emigration show that there will be a shortage of human resources in maritime sector in the future. Partners from both sides of the border ensured common solutions for the problems identified. Lead partner: Lithuanian Maritime Academy; Partner: Liepaja Marine College. KEC

Innovative approach – The project created the Knowledge and E-services center (KEC), creating: • the e–library services for the benefit of the increase of the qualification of seafarers improving the accessibility of the information. The books and other information resources of the e–library can be ordered by mobile phones, tablets, e-readers, • E–learning platform, • E–communication and electronic connection services. This project continues the cooperation established in the previous project, which is seen as a good practice. Moreover, the project uses the competitive advantage of both regions – exit to the sea and actual need of the employers within the maritime sector. Lead partner: Lithuanian Maritime Academy; Partner: Liepaja Marine College.

eBig3

Innovative approach – the project has developed a multiscreen, multi content e–learning platform, which first such platform in the world. Project provides smart solution for the accessibility of the learning possibilities. The project improved strengthened the cross border partnership thus forming a good base for the further use of the support of Horizon 2020 programmes in order to continue the development of such new technologies. The good approach – the project involves partners from the almost whole the area thus widening the exploitation of the project results within the programme area. Lead partner: Riga Technical University; Other partners: Siauliai University, Utena Labour Market Training Centre, University of Liepaja, University of Daugavpils, Latvian University of Agriculture.

Table 5. Overview of good practices and innovative approaches in the project pool “Accessibility and Mobility”

Project

The innovative approaches and good practices

ROADSIDE REST AREAS

This project brings the innovative approach, as it will develop research based justification, innovative concepts and detailed strategy plans of the rest areas for the motorway safety and revitalization of roadside communities. Project will encourage the implementation of Intelligent Transportation Systems in order to facilitate the management of border crossing flows, and individual choices of mode, rate and travel time. The project will provide a methodology for improvement of researches and data analysis of the transport safety by the involvement of public and private institutions into the regular transportation performance control and monitoring activities. This is seen as a good practice by the involvement of different stakeholders. Lead partner: Latvian Transport Development and Education Association; Other partners: Kaunas University of Technology, Lithuanian National Freight Association “LINEKA”, Latvian National Road Hauliers Association.

Annex 3 â&#x20AC;&#x201C; Map of Projects Divided by Pools (topics)