The specialization will increase in all sectors. Regional clusters in Poland, Finland and Russia will compete with other regions in the world that has corresponding specialties.

How the economies will develop in the Baltic Sea region will e.g. be driven by how competitive the region is from a global perspective, how the cooperation to solve key challenges can be developed and the capacity of enterprises in developing unique products and services.

In the global competition, the Asian countries' wage and supply of labor will be a disadvantage for the Baltic countries for a long period of time.

The ability to attract world-class skills and create well-functioning regional and cross-border innovation-systems, built on the interaction between industry, academics and government, will contribute to what determines the Baltic region's competitiveness and future. This places new demands on leadership and especially the political part.

Globalization also means new demands on the political governance. In addition to the traditional welfare mandates school, care now also calls for the ability and mandates to make long and short-term decisions for major growths and development. A lot of this information was previously handled at the State level. When refinement and specialization of each region are becoming more specific, it requires a greater decision-making power at regional level to meet the global competition.

The role of the State is changing slowly from the "Government" to "Governance". The demographic challenge reinforces the requirement for a leadership that supports innovation and collaboration. At the same time, there are reasons to question the ability of the government, especially if it requires sacrifices of their own country's population.

                                                                                              Tony Harkén