This paper discuss how regional economic
renewal can be achieved within a region that is highly dependent on a traditional
low value added industry with relatively low technology level and the
competitiveness of which has declined, over a short period of time, to a level
where economic viability is questionable. The approach is built around
government intervention to reducing the information asymmetry between local
players and global state-of-the-art whilst simultaneously instigating a culture
shift enabling cluster development for the implementation of identified
transformation pathways. The project involved the establishment of a policy
framework with a balanced supply side tool, information provision and demand
side tool portfolio. This was then followed by a mapping of the local value
network and its participating actors to identify their present status as compared
to world best practice. Following on from this was the construction of
alternative strategic technology roadmaps which differed on the raw material
lenses used, time lines, competence levels and investments. In parallel with
this was communication and engagement processes to enable a self organised
cultural shift towards a situation conducive to initiating industry led
clusters. The early successes are identified as well as indicators for the
desired trajectory being followed.

Purpose – The purpose of the research is to
capture a novel approach to regional economic renewal through the application
and synthesis of approaches from several different domains. The theoretical
lens, the tools, the process and the outcomes are described.

Design/methodology/approach – The approach
taken descriptive with the roadmaps adding prescriptive conclusions, hence the
studied project is in its own right both descriptive and prescriptive. The
methodology is a triangulation of theory and literature review, empirical data
collection, qualitative and quantitative analysis as well as observation of
outcomes.

Originality/value – This methodology puts
in evidence of integrating methodologies from foresight, strategy, social
science, policy science, innovation studies, cluster studies and Schumpeterian
economics. The combination of methods adds to the current innovation management
and industry renewal theory.

Practical implications: The main outcomes
of the project are (a) the changed attitude among the value chain participants,
(b) the identified renewal trajectories, (c) the identified and verified
balance of policy tools for economic renewal, and (d) the acceptance of cluster
development as an industry led route to success. The combination of methods
adds to the current innovation management and industry renewal theory and
generate, at least, three implications. Firstly, the integration of company
assessment, value chain analysis and identified renewal trajectories created
new opportunities, but also new challenges, on both the micro and meso level.
Secondly, the future-oriented, lens specific, global view was a new approach
among the regional players that formed a cornerstone in raising awareness about
the needs to collaborate and form a joint strategy and it also provided an
educational input for policy makers dealing with regional industrial
development in a new way. Thirdly, the project also had a strong policy
perspective that focused on the interaction between path dependency and path
creation in a technologically very dynamic domain and within an agglomeration
economic and Schumpeterian framework.

The project had both practical and
managerial implications: Firstly, the company assessment identified domains
where individual firms had weaknesses as well as where the group as a whole
lagged global best practice. Secondly, the value chain analysis showed
strengths and weaknesses of the present industrial structure in the region, but
also delineated the necessary components to be developed in order to move
towards higher value added production. Thirdly, the renewal trajectories
identified the present and future operational frontiers in advanced cellulose
fibre-based industries, and made possible a successful positioning of the Green
Triangle region, the regional industry and the individual firms for future
success. Fourthly, the project has generated a high level of international
interest resulting in several high-value adding cellulose fibre related firms
have approach the region for potential relocation.

The study contributed to the creation of a
future-oriented strategic agenda for the Green Triangle region on the macro,
meso and micro level. The integrated approach created in the project will also
benefit innovation, industry and innovation policy, and industry and regional
transformation and renewal scholars. 
Individual companies can apply the assessment framework and key
transformation trajectory findings in their own strategy work.

It can be concluded, as evidenced in the
main text, that the project is a clear success at this point in time but it
remains to be seen what trajectories the path creation in the Green Triangle
will take into the future.

Keywords - policy, industrial renewal,
cluster, value chain