150 companies

70,000 m² - built in 5 stages over 25 years

60 new young companies

Innovation company - LEN

3,000 places of work + 1,000 students (BI)

Innovation company: Leiv Eiriksson Nyskaping AS Owned by SIVA, Statoil, Telenor, banks, insurance, R&D

institutions, county and municipality, private investors

Incubator for some 15-20 companies

Regional seed capital company

National seed capital company

Norwegian Centre of Expertise - Clusterdevelopment

Leiv Eiriksson Innovation Centre

Trondheim, Norway

Regional development

Leiv Eiriksson Innovation Centre in Trondheim, Norway

Cronomar–Maritime Innovation Contributions

Presentation June 2014

Malvin Villabø

Head of CroNoMar Doo, Innovation Company in Sibenik, Croatia, www.cronomar.hr

Head of Leiv Eiriksson Nyskaping AS, Innovation Company in Norway, www.len.no

Experience from Maritime Projects

in Sibenik, Croatia

A Norwegian-Croatian maritime Initiative

•Achievements with 4 years history:

• iNavis – Maritime Innovation Center – operational since 2012

Co-location of Businesses, Services and Innovation Activities

• Building Aquaculture Workboats. Export value in 2013: 50 mill HRK

• Series production of Norwegian leasureboats. Export value ‘12: HRK 6 mill

• New mercantile company Marin Globe is operational. Export ‘12: HRK 3 mill

• Innovation Company CroNoMar operational for 4 years

•CroNoMar was sonsored by NMFA – New business Development

• 4 years sponsored operation – untill 2012.

• Longer term commercial ambitions for maritime collaborations

• CroNoMar operational since summer 2009 with local employees

• Ambition to create new business- and R&D- Cooperations

Cronomar Basics• Innovation infrastructure:

• SIVA has for 30 years developped innovation and business infrastructure

• LEN has for 18 years been leading regional innovation operator in Norway• Fostered 190 new companies in incubator

• Invested in 95 new start-up companies. Present portfolio of 35 companies

• Consulted a lot of start-ups and SME’s in their development

• Cronomar organization with local -Networks, -Enthusiasm and -Emphathy

• Cronomar shall have a commercial attitude in all our efforts.

• Cronomar has business references• Cronomar is a mediator between partners to create business activities• Indirect turn-over in 2010 of HRK 10 mill

• Indirect turn-over in 2011 of HRK 20 mill

• Indirect turn-over in 2012 of HRK 35 mill

• Indirect turn-over in 2013 of HRK 55 mill

• Prospect for 2014 of HRK 85 mill

• Boatbuilding, maritime equipment trading, engineering and R&D services

• Cronomar ambitions:• Make the Cronomar operation self-funded and sustainable

• Will survive as long as it contributes positively to new business development

• Act patiently as long as partners move in improvement direction

• Can also document positive rural business effects in Norway

Example of CroNoMar efforts:• New products for Croatian shipbuilders

• Aluminium Catamaran workboats, Vessel 25 to 30 under construction

• Contribute to competitiveness for Croatian Shipbuilders

• Make Croatians to enter contracts with Norwegian customers

• Make progress and take delivery according to agreement

• Long term industrial contract – intension was 15 vessels – Now 30

• Aim at positive effects within reasonable time

• Go first for short term effects before looking for longer terms effects

• Demonstrate that you take responsibility

• Proof of pudding is in the eating – not in the recipe

• Act commercially – time is money. High-level business ethics

• Take longer term initiatives when short-term references are there

• Business society is much more proactive than public society

Perspective of positive effects:

R&D Seed Venture Buy-out PublicEducation Pre-Seed

• Business turn-over

• Employment and prosperity

• One-year perspective

• Create references

• 15 years perspective

• 10 years perspective

• 5 years perspective

• 3-years perspective

Cronomar development perspective

Norway has a complete Maritime valuechain

• End-users – operators like Oilcompanies, Transporters

• Shipowners – Demanding market for new vessels

• Ship Operators – Knowing the operational requirements-The operational competitive edge

• Classification society (DnV-GL)

• Maritime R&D infrastructure – MARINTEK

• Big maritime oriented Banks (DnB, Nordea,..)

• Insurance (GARD,…

• Design and Engineering offices

– The technical competitive edge - Proactivity

• Equipment manufacturing – also on demand

• Shipbuilding – Competitive on specialized vessels

DOF – results:• 70 offshore vessels

• 8 vessels under construction

• Q1 turnover HRK 2,0 bill

• Q1 result HRK 700 mill

• Contract reserves HRK 60 bill

• 82% occupation

Norwegian perspective:• 600 offshore vessels

• Value 39 bill US$

• 45 % of Norw. Fleet

Olympic – IMR-vessel

• 15 of 23 vessels are IMR

• MT-design –light version

• 80 tons crane

• Moonpool and ROVs

• 80 pax Accomodations

• Ordered at Kleven

• Price approx HRK 450 mill

Island Offshore2nd generation from Ulstein

IMR – vessel for Island Offshore

• Designed by RR

• 400 ton pull

• 1100 m2 deckarea

• Moonpool and 2 ROVs

• Big cranes – 250 Tons

• 110 person accomodation

• Price HRK 1,0 bill

• Delivery no 30 from VARD to

Island Offshore

• Many Ship Design companies– Internal to shipbuilders

– Independant stand-alone Companies

• Vik & Sandvik – part of Wärtsila

• Havyard Design

• Ulstein Group

• VARD Design

• Rolls Royce Design

• Skipsteknisk

• Marin Teknikk

• Skipskompetanse

• Møre Engineering

• LMG-Group

Ulstein Vessel for Advanced IMR- subsea operations

• Strong positioning capacity

• Huge crane capacity

• Subsea remote control IMR capacity via moonpool

• Big accomodation capacity

• Guess price: HRK 1,5 bill???

Competitive edge of Ship design

• Developped together with demanding end-users

• Advanced Supply vessels and Anchor Handlers

• Advanced Subsea IMR – vessels for deep waters

– Remote Inspection, Maintenance and Repair

• Equipment for advanced seismic vessels

• Propulsion solutions – Electric, hydraulic, direct

• Advanced Operation control

– Dynamic positioning, Heave compensation,

• Environmental friendly Energy solutions

– Direct, electric, LNG/CNG fuel,

• Hydraulic/Electric deck machinery

Ulstein Group – 3rd generation

(restart after sale to RR-Marine)

• Design & Solutions

• Shipbuilding

• Power & Control

• Shipping

• R&D in 2013: HRK 130 mill

• Orderbook of HRK 2,5 bill

• Orderbook of 40 vessels

• 6 orders from own yard

• 800 employees in 7 countries

• Result 2013: HRK 300 mill

Kleven Shipyard• Family owned -3rd generation

• 2 yards

• Focused on shipbuilding

• All designs are external

• Traditional casco-hulls

• Increasing homeproduction:

• Increased early outfitting

• Robotized welding

• Less modifications

• Increased staff 50% since 2012

• Now 800 own employees

• Turn-over 2013: HRK 4,0 bill

• Result 2013: HRK 160 mill

• Orders: 12 vessels-HRK 7,0 bill

• 80% local customers

VARD – Shipyards• 4 in Norway, 2 in Romania, 1 in Vietnam

and 1 in Brazil

• Started as Aker Yards

• Meantime STX-OSV listed Singa

• Prime owner is Fincantierri (I)

• Headoffice in Ålesund

• Primarily Yards• Cascohulls to Norway

• Casco with increased outfitting from

own lower-cost yards

• Specialized outfitting in Norway

• Now also design and equipment

• Turn-over Q1: HRK 2,5 bill

• Result Q1: HRK 160 mill

• Orderbook: HRK 20,0 bill

• New Orders Q1: HRK 5,0 bill

Competitive edge of shipyards

• Assembling industry

– Project management and coordination is key to competitiveness

– Do yourself what you can best. Improve your capabilities

– Let subsuppliers do what they can best. They must also compete

• Strong dependancy on cluster effects

– Own and partner’s competitiveness is key

• You win contracts when you are best

– In segments where you are best and have references

– No-one «deserve» contracts

– Public «soft» contracts can destroy competitiveness/culture

• Find your segment and become champion.

– Stay in your segment and steadily improve quality/efficiency

– Segment can be shiptypes, design, production, purchasing…

• Customers are always right- they pay on satisfaction

– Winning every 10th bid is acceptable

– Repetitive sale is success

Rolls Royce Marine

• Shipdesign and Engineering

• Extensive Equipment packages• Propulsion solutions

• Thruster solutions

• Cargo solutions

• Deck equipment

• Control solutions

• Selling non-assembled products

• UT-xxx like WW-Passat

• Yards are assembling RR-products

• RR follow up quality/progress

• UT-design has Market reputation

K-Chief (DataChief )

MBB / S-MBB (VDR)

K-Gauge

Sensors

Kongsberg Maritime

Offshore & Marine Division, Merchant

Automation

AutoChief

Cavotec – Microcontrol: A company delivering remote control of deck equipment

Meteorological and Hydrological Data

Collection

Barents 2020

Competitive edge of Ship Equipment Industry

• Control and Management solutions• Online-Onboard control systems

• Operator assistance systems (Dynpos, Heave, etc)

• Power-management

• Communication for external expertise

• Remote IMR-planning and operational assistance

• Logistics planning

• More flexible Equipment-solutions• Less energy and emissions

• More flexibility – rearrangements and adaptations

• More controlability – faster and more accurate

• New powersolutions – Hydraulic, electric, gas, batteries

• Modularization – standardization - Quality

• New equipment required• Water treatment

• Purification and cleaning (emissions, intake, etc)

• Cargo handling (live/fresh fish, food, etc)

• New Advanced Operations (Deepwater ocean mining, etc )

Example of society effects in shipbuilding

Norwegian successful clustered societies

• Fosnavåg/Austevoll

– Small villages: 5-10.000 inhabitants

– Owners and operators of vessels

– Operational personel - seafarers

• Ulstein/Ålesund/Molde

– Towns of 10-40.000 inhabitants

– Design/Engineering of vessels and solutions

– Production and assembling yards

– Well educated engineering resources

• City like Oslo/Trondheim/Bergen

– Brokers, stock exchange,…..

– Financing/Insurance

– R&D and classification

The Most important Clustering perspective:

- Shorter and Longer Term cooperative perspective

Operational time

Perspective

Today 2-3 years 5-6 years 10 years from now

Activities

R&D

Activities

Innovation

Activities

Operational

Improvement

Activities

New technology

New working processes

Market forsights

Attractive for clever professionals

Product/Service development

Process development

Market development

Piloting

Competitiveness

Quality and Functionality

Supply chain

Customer Focus

Inhouse or Cooperative Activities ?

Operational time

PerspectiveToday 2-3 years 5-6 years 10 years

from now

Activities

New technology

New working processes

Market forsights

Attractive for younger professionals

Product/Service development

Process development

Market development

Piloting

Competitiveness

Quality and Functionality

Supply chain

Customer Focus

More Cooperative- Open Clusters

- Institutional

- International

Inhouse/corporations- In trustworthy clusters

- Within corporations

More Individual- Commercial on company-level

The second most important perspective:

- Clustering is the same as Mergers? – No, but….

• Mergers:• The control approach to value chains

• The control approach to complementary specializations

• Take competitive and costsaving advantage of mergers/control

• Clustering• Obtain Merger effects on independent basis

• Independent companies take profit of cooperations

• Build commercial dependency on independent basis

• Contribute to development of your independent supply chain

• Clustering is often bottom-up, while Merger is often top-down

• Keyword for cluster-success is TRUST• Create win-win situations

• Celebrate and take advantage of competitor’s success.

• Percentage calculations are two-sided. The % and of WHAT

Collaborate when you can – Compete when you must

Better with a modest percentage of a big cake compared to 100% of nothing

Norway and Croatia

• Considerable difference in costlevel

• Same time-zone – in the office at the same time

• Half a day travelling

• Almost same population; 4,5 – 5 mill

• Long coastline with islands

• Educational infrastructure

• Education at all levels

• R&D institutions

• Maritime References

•Innovation expertise is different

• Networking – partnering and/or competing

• Competitiveness versus employment

• Business concept development

• More business-relations needed

• Capital – Risk and working

• Trust between private-public sector

• CroNoMar take operational roles in commercial activities

Croatia

• Considerable shipbuilding nation - 30 years ago

• A considerable yard and equipment industry

• The academic infrastructure is functioning

• Universities/Faculties

• R&D institutes

• The basic maritime education is maintained.

Approx 25000 seafarers under int. flags

• Ongoing privatization of bigger shipyards

• Equipment industry and smaller yards are

privatized

• Commercial Shortcommings:

• Market and customized products

• Project management

• Prof Purchasing and Subsupplies

• Financing

iNavis Maritime

Innovation Centre

in Sibenik

Regional development

Create Win-Win in micro

• Norwegian companies are strong on management• Much product development and adaption to customers

• Look for competitive partners on costs, qualities and capacities

• Focus on sourcing and purchasing

• Croatians are strong on workmanship• Have the industrial infrastructure. Yards and factories

• Competitive labour costs relative to productivity

• Have a strong inward focus and less market/customer focus.

• Few own products

• Shipbuilding is assembling industry• Management of total logistics is important

• Purchasing/logistics and sourcing of materials/equipment and services

• Project management – resources, financing, progress.

• The competitive edge of the future

• Compete amongst individual players for individual contracts• Collaborate when regards attracting human resources and attractivity

• Cluster-approach is positive

• iNavis Center want to be an arena for such clustering……….

Cronomar Contributions

• Identify and repair Croatian competitive shortcommings• Too much local perspectives. Open eyes for international opportunities.

• Focused on shortterm employment and less longterm competitiveness

• Management skills are limited on company and project level

• Marketing/Sale, Financing, Purchasing/logistics, QA/QC

• Optimize the use of resources – project management

• Purchasing and Logistics in a global world

• Improve trust: financing, subsuppliers, accept customer expectations

• From prototype learning to series-efficiency

• Create Win-Win between partners• Create more contractual relations at commercial terms

• Create lasting partnerships

• Create new businesses with local origin and enthusiasm

• Contribute to Improve Marin and Maritime business structures• Fishery and Aquaculture sector

• Croatian Maritime equipment and assembling industry

• Engineering services to international markets – services and workforce

• Provide competitive Croatian R&D-competence internationally

Prepare for Future

• The future is global

• All services and products must compete internationally• Accept global competition in traditional homemarkets

• No-one deserve contracts – Contracts must be won – Be best

• «Kind» national contracts is a «sleeping pillow»

• Collaboration and specialization is a neccessity

• Networking with responsible partners is a key

• Croatia has become member of EU• EU membership means practising EU-regulations

• Take business-roles within croatian strongholds

• Develope infrastructure within strongholds

• Croatia will get funds for investments in infrastructure• Please focus on what is needed – and not «application-writers»

• Prepare for Norwegian collaboration with EEA-framework

• Norway is leading in Maritime, Energy and Fish.

• Society infrastructure and innovation infrastructure

• Business models for these sectors

• iNavis-type infrastructure in more cities should be viable