1. SCANDINAVIA – Total population 26 million
Iceland is 1,3 % of the whole area
Iceland: 0,3 m
Norway: 5,0 m
Sweden: 9,5 m
ddddddddddddddddddddd
Denmark 5,6 m
Iceland geothermal
Finland 5,4 m
3. Iceland is not invited to the party anymore
World Economic Forum Competitiveness Ranking 2012
-3
-4
-12
-14
-32
Finland
Sweden
Denmark
Norway
Iceland
4. Corruption Index – Gallup survey
-1
-3
-6
-10
-43
Sweden
Denmark
Norway
Finland
Iceland
5. What determines Competitiveness?
Macroeconomic
competitiveness
MACRO
Macroeconomic
Policy
Fiscal Policy:
Public spending aligned with
revenues over time
Monetary Policy:
Social
Infrastructure & political
institutions
Sophistication of
State of CLUSTERS
company operation
development
and strategy
National business
environment (NBE)
Human development:
Basic educaiton, health
care, equal opportunity
Low levels of inflation
Rule of Law:
Macroeconomic
Policy:
Political instiutions:
Avoiding structural
imbalances and cyclical
overhating
Microeconomic
competitiveness
MICRO
Property rights & due
process
Stable and efffective
political and
governmental processes
and organizations
Internal
skills, capabilities
, and
sophistication of
management
practices of
companies
A critical mass
of firms &
institutions in
each field to
harness
efficiencies and
externalities
across related
entities
The external
business
environment
conditions that
enable company
productivity and
innovation
6. Michael Porter and Christian Ketels in Iceland
2 October 2006
Drivers of Iceland’s Competitiveness
Overheating
economy
• Iceland’s
prosperity is
ahead of its
competitiveness
- Key strengths in
infrastructure, basic
skills, administrative
capacity, and openness to
competition.
- Key weaknesses in the
innovation
environment, depth of
clusters, and demand
conditions
7. Key Clusters in Iceland
Established ones
Emerging ones
Specialty food
Fishing Products
Life Science
Creative
industries (rock
music, video
games etc. )
Specialty apparel
Tourism
Energy intensive
Metal Production
8. Key Clusters in Iceland
Established ones
Emerging ones
Specialty food
Fishing Products
Life Science
Specialty apparel
Tourism
Tourism
Energy intensive
Metal Production
Geothermal
Creative
industries (rock
music, video
games etc. )
9. How did this initiative started?
Net Primary Energy Use in Iceland, 1940-2011
100%
90%
80%
Coal
Oil
70%
60%
50%
Geothermal
40%
30%
20%
10%
Peat
Hydropower
0%
1940
1950
Source: Natural Energy Authority of Iceland
1960
1970
1980
1990
2000
15. Swimming Pools all year around!
Outdoor and indoor swimming pools; direct
use of geothermal water; swimming pool in
every town (learn to swim is obligatory)
19. Good Productions
Geothermal skin care products
Production of renewable methanol CH3OH
Lumber/timber drying
Lukewarm (35 °C) pure sea water from
geothermal power plant condensers for fish
farming
21. Houston of geothermal
Export products
Export knowledge
Investment to leverage
expertise
• Lack of capital is a key
constraint
• Could provide
expertise in evaluating
projects to others
• Equipment production is currently
not significant
Export services
Education and patents
Technical services
Operational
management
• Educational offers exist
but are so far not
commercially viable
• Solid capabilities and
strong global network
• Solid practical
experience
• Currently also low
price level
• Relevant companies
largely publicly-owned
• Companies tend to
lack size and capital to
lead large projects
• Skills more technical
than commercial
• Iceland subscale in
scientific research
• Available knowledge is
not codified
Source: Michael Porter and Christian Ketels 2010
23. Iceland Geothermal Cluster Initiative
Bottom - Up
Mobilize the
cluster
Mapping and
Analyzing
2009-2011
Top - Down
Define a strategy
Cluster Organisation
founded
15 Feb 2013
IGC 2013
March 2013
Joint Efforts
2011-2012
2009 – 2012
Strategy Meeting
June 2013
Oct 2013
2013
Execute priority
actions
Innovation and
Development
• Knowledge and
Experience
• Communication and
Collaboration
2014 - 2019
24. Joint Efforts - July 2011 – Dec 2012
Seminars on bottom-up cluster
strategy and management
Data collection on the
impact of geothermal energy
Research
and
Networking
Dialogue with
government on
licencing processes
Policy Action
Cluster
Expansion
Innovation
and
Technology
Innovation Maintainenance
Startup Geothermal
Energy Fund
Innovation – Project
Management
State of the art project
management program
Commercial Eductation
Cooperation and Training
Iceland Geothermal
Conference 2013
Fund for education on
renewable energy
Source: Greenbook. Ketels, Lindquist, Sölvell 2003
25. Guiding lights of the initiative
Innovation
Development
Knowledge
Experience
Communication
Collaboration
Increase innovation
through colloboration
and cooperation
27. Funding of Clusters in Iceland
Iceland Geothermal cluster
Traditional „cluster“ in Iceland
[PERCENTA
GE]
8%
[PERCENTA
GE]
Industry
Government
100%
Industry
Government
32. Companies: Drive Cluster Initiatives
Firms
should
Government
may
•
•
•
•
Propose relevant
clusters
Define cluster
action
priorities
Drive activities
Source: Christian Ketels - 2013
•
•
Initiate/
Convene
Co-Finance
Participate in
activities
33. Mixed funding
sources of revenues
Other
International
public
Membership
fees
Regional /
local public
Sales of
services
National
public
Source: Lindquist, Ketels, Sölvell - 2013
34
36. General information about Iceland
•
•
•
•
Island in the Atlantic Ocean
Population of 321.857
103.000 km2 (40.000 sqmi)
Republic of Iceland 1944
– President Mr. Ólafur R Grímsson
• Member of European Economic
Area, NATO
• Language: Icelandic
– North Germanic language
• Currancy :
1 ISK ~ 0,021 LTL
1 EUR ~ 3,45 LTL ~ 163 ISK
38. Michael Porter and Christian Ketels in Iceland
2 October 2006
Drivers of Iceland’s Competitiveness
Overheating
economy
• Iceland’s
prosperity is
ahead of its
competitiveness
- Key strengths in
infrastructure, basic
skills, administrative
capacity, and openness to
competition.
- Key weaknesses in the
innovation
environment, depth of
clusters, and demand
conditions
39. Key Clusters in Iceland
Established ones
Emerging ones
Specialty food
Fishing Products
Energy intensive
Metal Production
Specialty apparel
Life Science
Tourism
Creative
industries (rock
music, video
games etc. )
40. Key Clusters in Iceland
Established ones
Emerging ones
Specialty food
Fishing Products
Life Science
Creative
industries (rock
music, video
games etc. )
Specialty apparel
Tourism
Energy intensive
Metal Production
Geothermal
41. How did this initiative start?
Net Primary Energy Use in Iceland, 1940-2011
100%
90%
80%
Coal
Oil
70%
60%
50%
Geothermal
40%
30%
20%
10%
Peat
Hydro power
0%
1940
1950
Source: Natural Energy Authority of Iceland
1960
1970
1980
1990
2000
47. Swimming Pools all year around!
Outdoor and indoor swimming pools; direct
use of geothermal water; swimming pool in
every town (learn to swim is obligatory)
51. Good Productions
Geothermal skin care products
Production of renewable methanol CH3OH
Lumber/timber drying
Lukewarm (35 °C) pure sea water from
geothermal power plant condensers for fish
farming
57. Iceland Geothermal Cluster Inititative
Bottom - Up
Mobilize the
cluster
Mapping and
Analyzing
2009-2011
Joint Efforts
2011-2012
2009 – 2012
Define a strategy
Execute priority
actions
58. Joint Efforts - July 2011 – Dec 2012
Data collection on the impact of geothermal
energy - impact, no of employees, turnover
how many jobs etc
Research
and
Networking
Dialogue with government on
licencing processes
Policy
Action
Commercial
Cooperation
Iceland Geothermal Conference
2013
Seminars on bottom-up cluster strategy
and management
Cluster
Expansion
Innovation
and
Technology
Equipment & Maintanance
Indirect Usage – Resource
Park Reykjanes
Drilling Standards
Project Management
Eductation
and
Training
Brought togehter different education institutions
and the companies them self to find out what was
needed
Source: Greenbook. Ketels, Lindquist, Sölvell 2003
Ladies and gentlemen,It is an honor to be invited to this honorable meeting – and it has been very interesting to listen to the speeches this morning. My name is Hákon Gunnarsson and I am the „cluster manager“ for the organisation „Iceland Geothermal Cluster Initiative“ – a collaboration that has been almost a 4 year in process. It all started when in the summer 2009 Professor Michael Porter and his principal associate from Harvard Business School – the German Dr. Christian Ketels agreed to work on the mapping of the Geothermal Cluster in Iceland and they presented their findings on a conference in Reykjavík in November 2010.
MichaelPorter kom hingað til lands árið 2006 og gerði greiningu á samkeppnishæfni Íslans ásamt sínum nánasta samstarfsmanni Dr. Christian Ketels. Þeir vöruðu okkur við sem frægt er orðið en við hlustuðum ekki. Hrunið varð ekki til þess að minnka áhuga MichaelPorter á Íslandi. Til að gera langa sögu stutta hefur hann fylgst afar vel með íslensku efnahagslífi síðan þá og komið hingað alls fjórum sinnum á sex árum.Það var árið 2009 sem hann féllst á, ásamt áðurnefndum Dr. Christian Ketels, að kortleggja hinn íslenska jarðvarmaklasa í samvinnu við Gekon. Skýrslan og þessi fyrirlestur fjallar um framvindu þeirrar vinnu, stöðuna í dag og hvert hún stefnir. Áður en lengra er haldið er þó rétt að rifja upp það lykilhugtak sem hér um ræðir, þ.e. Klasar.
Theresultfromthemappingwaspublishedin a conferenceonNovember 1st 2010. Everyoneagreeditwas a success.
Last Friday the board of IG came together
This work has been going through some phases along the way. The first phase was the mapping of the cluster and choosing the projects the members of the cluster was willing to prioritese. The projects was of many kinds – but all had the aim to strengthen the infrastructure of the geothermal sector in Iceland. I can mention innovation and technical projects, redefining of the education in geothermal energy in Iceland, initiate a dialog between government and industry in the country and data collection, just to name a few. The participants in these projects are over 200 and they are coming from all the major players in the industry.
There are now approximately 50 members of the cluster cooperation – and all of those of importance are there included. There are 9 members of the board of the organization – the chairman being the legendary Mr Albert Albertsson, the deputy director of HS Orka.
One additional point: help clusters to self-discover
To give you an idea where we come from here are some climbsSmall Island up in the North with population of only 320 thousand people, we do have our own language and our own curruncy, propably the smallest economy in the world.
As you noticed in the video the geothermal plays a big role in our community. I would tell the story of the background of this initiative and then we need to go back to the year 2006
Michael Porter kom hingað til lands árið 2006 og gerði greiningu á samkeppnishæfni Íslands ásamt sínum nánasta samstarfsmanni Dr. Christian Ketels. Þeir vöruðu okkur við sem frægt er orðið en við hlustuðum ekki. Hrunið varð ekki til þess að minnka áhuga Michael Porter á Íslandi. Til að gera langa sögu stutta hefur hann fylgst afar vel með íslensku efnahagslífi síðan þá og komið hingað alls fjórum sinnum á sex árum.Það var árið 2009 sem hann féllst á, ásamt áðurnefndum Dr. Christian Ketels, að kortleggja hinn íslenska jarðvarmaklasa í samvinnu við Gekon. Skýrslan og þessi fyrirlestur fjallar um framvindu þeirrar vinnu, stöðuna í dag og hvert hún stefnir. Áður en lengra er haldið er þó rétt að rifja upp það lykilhugtak sem hér um ræðir, þ.e. Klasar.
Fish production 26% export - Aluminum 25% of the export - nearly 2% of the aluminum production in the world.
It all started when in the summer 2009 Professor Michael Porter and his principal associate from Harvard Business School – the German Dr. Christian Ketels agreed to work on the mapping of the Geothermal Cluster in Iceland
It all started when in the summer 2009 Professor Michael Porter and his principal associate from Harvard Business School – the German Dr. Christian Ketels agreed to work on the mapping of the Geothermal Cluster in Iceland and they presented their findings on a conference in Reykjavík in November 2010. This was the picture which opened the eys of the professor and he realized how important geothermal is for our country.Almost 90% of the net primary energy use in Iceland is geothermal and renewable!This is the reason why Iceland has survived through the decades and the different crisis.
It was in Reykjavik in nóvember 2010 when they presented their findings on a conference in Reykjavík in November 2010. The result from the mapping was published in a conference on November 1st 2010. Everyone agreed it was a success.
The map shows all the different factors/players in the geothermal value chain and how they are combinded togehter.The strength of the icelandic geothermal cluster is the direct usage and that is somehting we are Strength of the service providers, great knowledge and understanding- Equipment and Maintenance part was also strong and there we have a lot of opportunityThe strength of the Icelandic geothermal cluster involves i.a. how it has used research methods and appllied them to achieve success. Concerning education, there is a significant supply of vocational and university study programs in Iceland that benefit the field of geothermal and other green energy.
The geothermal industry got this message from the Professor Porter and thought this should be something the industry should be
So what did the industry do with this results.... How have we been managing it and turning it into these opportunities etc
This work has been going through some phases along the way. The first phase was the mapping of the cluster and choosing the projects the members of the cluster was willing to prioritese. The projects was of many kinds – but all had the aim to strengthen the infrastructure of the geothermal sector in Iceland. About 200 participants from all kind of companies and instittutions where participatingI can mention innovation and technical projects, redefining of the education in geothermal energy in Iceland, initiate a dialog between government and industry in the country and data collection, just to name a few. The participants in these projects are over 200 and they are coming from all the major players in the industry.
After the mobilizing phase the companies decided that this initiative needed its own identity and found the cluster organisation – Iceland Geothermal.All the most prominent companies and institutions related to geothermal in one or another way founded the Cluster Organisation Iceland Geothermal in February this year.
It takes about four years to build up a cluster organisation.IGCI is actually four years today...
There are now approximately 50 members of the cluster cooperation – and all of those of importance are there included. There are 9 members of the board of the organization – the chairman being the legendary Mr Albert Albertsson, the deputy director of HS Orka.
