S3 strategy to unlock full potential for growth
On 26-27 February 2025, the Policy Learning Platform of Interreg Europe organised an onsite peer review in Härnösand, Sweden, to support the Västernorrland Region in enhancing the cross-regional dimension of its Smart Specialisation Strategy (S3). The region sought expert insights on how to optimise its strengths in renewable energy and advanced manufacturing to drive sustainable economic growth and enhance competitiveness.
Current state of affairs
Västernorrland is a region with strong assets in green energy production and advanced industrial manufacturing, benefiting from an active stakeholder ecosystem and committed regional leadership. However, Västernorrland faces difficulties in maximising the regional value deriving from its abundant green and affordable energy supplies and natural resources, such as timber and ensuring that new industrial investments translate into long-term and sustainable regional economic benefits.
With an estimated 10-12 billion euros in planned private investments by 2030, particularly in green industrial projects, the region has an opportunity to leverage these developments for broader economic transformation, building on their S3 sectoral strengths.
However, to realise these benefits, there is a pressing need for structured cooperation, capacity-building, and innovative policy frameworks.
Key strategic questions addressed
During the peer review, the Västernorrland Region sought insights on two fundamental questions:
To achieve critical mass and interregional synergy gains, both questions were addressed with an outward-looking perspective, actively involving Västernorrland’s neighbouring regions of Jämtland-Härjedalen, Västerbotten, Gävleborg and Österbotten.
The peer review was facilitated by the Interreg Europe Policy Learning Platform team, including Thorsten Kohlisch, Lead Manager and Marc Pattinson and Laura Varisco, Thematic Experts.
A varied group of Peer experts from across Europe shared their knowledge and experience:
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Richard Tuffs (Belgium) – S3 expert
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Luc Hulsman (Northern Netherlands Alliance, Netherlands)
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Silvia Brembati (Lombardy Energy Cleantech Cluster, Italy)
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Kristiina Jokelainen (The Local Federation of East Lapland, Finland)
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Dr. Wilhelm Benfer (County of Barnim, Germany)
Moreover, everal key regional stakeholders strongly contributed to the sessions, paving the way for a collaborative approach to future action and long-term partnerships around shared S3 priorities.
The peer review is built upon the region’s prior engagement in the S3 Community of Practice Targeted Assignments, specifically focusing on S3 roadmapping and S3 governance.
Video from Region Västernorrland on the Peer Review
Key recommendations
The region is encouraged to deepen and further develop the established governance structure to support S3 implementation. Notably, additional resources are required to ensure systematic coordination, orchestration and leadership of the region’s well-developed innovation ecosystem. A designated body and team should lead the coordination efforts, ensuring strategic alignment and collaboration across organisational and regional borders. In fact, collaboration with neighbouring regions is seen essential for leveraging complementary strengths, fostering joint initiatives and maximising the use of limited resources in Europe’s scarcely populated North. In the spirit of co-ownership and co-responsibility, suitable actors (clusters, business associations, etc.) should be mandated to lead the animation of priority S3 sectors to enhance cooperation actions and regional visibility.
Innovation requires innovative and agile policymaking. Hence, the region is encouraged to use the available ERDF resources in an experimental and objective-driven way, with flexibility for the funded beneficiaries and consortia during the implementation phase of their innovation journeys.
The region is strongly encouraged to look beyond the opportunities of the ERDF by exploring alternative European funding mechanisms more systematically, including Horizon Europe, Interreg, and Erasmus. Consequently, the recommended establishment of a dedicated regional office should be used for European project design and management: ‘Team Europe’ will help the ecosystem access these funding opportunities.
To support SME growth, Västernorrland should develop or enhance cross-regional clusters and value chains that encourage collaboration between businesses, intermediaries (North Sweden Cleantech, Bron Innovation), municipalities, and the Mid-Sweden University. Engaging in wider European cluster platforms and fostering sectoral integration within advanced manufacturing and renewable energy will boost competitiveness.
Given the region’s strength in renewable energy, Västernorrland should systematically exploit niche opportunities within the green transition, such as hydrogen energy, battery production, and smart grid technologies. These sectors present high potential for investment and innovation-driven growth and job creation.
Västernorrland and its neighbours have significant potential to emerge as a leading European innovation hub contributing to Europe’s green transition and strategic autonomy. Unlocking the region’s full potential in renewable energy and advanced manufacturing requires a strategic, collaborative, and well-coordinated approach, driven by confidence and an outward-looking perspective focused on commonalities rather than differences. By working together, the region is well positioned to achieve its goals and become « Ett Västernorrland » and play a role in delivering Sweden’s ambition within the framework of the new European Competitiveness Compass priorities.
The host’s policy challenges, and all the peer suggestions will be available shortly in the follow-up report.
Peer review publication
Find more information on the methodology and experiences of previous beneficiaries in our publication.
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