Skagafjörður, in northern Iceland, has 4,500 inhabitants (1.5% of the national population) and is considered the “food fjord” of Iceland. The largest population centre in the area is the town of Saudarkrokur, with approximately 2,600 inhabitants. The wide and fertile valley of Skagafjörður is the backbone of prosperous agriculture and food production in the area. It is home to one of the country’s largest and most advanced seafood companies, the second largest dairy production facility, the largest slaughterhouse, and several shrimp and meat processing plants.
Industry changes in fuel bioeconomy development
In 2007, the Icelandic Government cut the total allowable cod catch by roughly 30%. This drastic reduction was predicted to exacerbate the already concerning issue of depopulation of rural areas and to have irreversible consequences for local communities. In response, the Icelandic Government introduced countermeasures designed to ease the pain of communities that relied heavily on cod-related industries. In Skagafjörður, these resources were used to develop infrastructure that would support the growth of a knowledge-based bioeconomy. Skagafjörður was in a strong position to embrace the bioeconomy, with a wealth of raw materials and a diverse range of companies in close proximity to one another, providing hundreds of interconnected jobs.
Verið Science Park
The Verið Science Park has been the key vehicle of the development of the knowledge-based bioeconomy in Skagafjörður. It began as a limited company, jointly owned by FISK Seafood, the Municipality of Skagafjörður, and Skagafjörður’s utility companies. Verið Science Park is home to R&D in biology and biotechnology, including the Faculty of Aquaculture and Fish Biology at Hólar University College, the Matís biotechnology laboratory, and the IceProtein pilot plant. It is partially funded by the Icelandic Government, with the majority of these funds invested in infrastructure intended to increase the competitiveness of the region’s bioeconomy through R&D activities. The now advanced capabilities of the Verið Science Park have resulted in a high level of competitiveness for R&D funding at the Icelandic, Nordic, and European levels. Furthermore, the park’s unique capabilities have attracted contract research funding from international companies, resulting in significant international contacts and collaboration.
Spotlight on: IceProtein and Protis
IceProtein, a company that specialises in the development of ingredients and bioactive compounds from seafood by-products, is unique in the Icelandic context. It was founded as a pilot project in September 2005 when Icelandic Fisheries Laboratories aggregated its R&D efforts associated with the utilisation of previously discarded marine proteins. IceProtein’s pilot scale operations were completed in 2008 when Matís Ltd., Icelandic Fisheries Laboratories’ successor, opened a fully operational biotechnology laboratory in Skagafjörður. The aim of the laboratory was to unite the range of active sectors that make up Skagafjörður’s bioeconomy, and to develop and apply modern biotechnology methods in a highly advanced laboratory setting and through pilot projects. In 2015, the first product lines were launched by Protis, a new company founded to manage IceProtein’s production and sales. Their product range currently consists of three proteins, which are sold in most stores in Iceland. The award-winning work of these combined companies has drawn significant talent to the area and helped retain educated locals who would have otherwise moved away.
Regional dimension
The Skagafjörður case perfectly illustrates the way in which a shared long-term commitment by private and public sector actors can enable sustainable and efficient approaches to a region’s technological advancement. The decision to establish Verið Science Park in response to the negative impact anticipated from the reduction in fisheries activities has been a major success. It has led to substantial collaboration across different bio-based industries, inspired new and innovative companies and bio-based products, and created new jobs requiring higher education. The result is a diverse labour market profile in Skagafjörður, a region once dominated by agriculture and fisheries. The education level of the workforce in Skagafjörður has also increased, with about 30% of the workforce holding a university degree. This is the highest ratio in Iceland, and on par with the capital region. It is also in sharp contrast with the demographic profile of the surrounding area (northwest Iceland), which has the highest proportion of the population without a secondary education in the country.
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