Lu.Be.C. Lucca, 21 e 22 ottobre 2010

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1 Tekes the Finnish Funding Agency for Technology and Innovation Tekes Agenzia Finlandesa per la Promozione di Tecnologia ed Innovazione Lu.Be.C. Lucca, 21 e 22 ottobre 2010

2 1. Facts - and figures 2. Tekes - what do we do and why 3. Innovation - more than technology 4. Examples - of successful R&D work 5. Finland - committed to invest in R&D&I

3 Finland in a nutshell Parliamentary republic 5,371,000 (112th) Government Population 2010 estimate Parliamentary republic 60,418,000 (23rd) 338,000 km 2 (64th) Area 301,000 km 2 (71st) 16/km2 Density 200.5/km 2 Helsinki, 0,5 mill. Capital Rome, 2,7 mill. Finnish, Italian Swedish Official language(s) 2009 estimate GDP (nominal) 2009 estimate $ billion Total $2.118 trillion $44,491 Per capita $35,435

4 Tekes in a nutshell Tekes's services Public agency under the Ministry of Employment and the Economy Funding for innovative R&D&I and business projects Networking Finnish and global companies and researchers Tekes is non-profit and takes no equity or ownership on intellectual property. Customers Finnish and international companies located in Finland Universities, research institutes etc. - also company groups or company-university -coalitions Resources Budget: 600 million euros annually only partial funding (35 70 %, grants and loans, never 100%) Personnel: 360 in Finland and abroad

5 Tekes aims to build a strong networked knowledge base renew the economy and create new businesses increase productivity in industries and service sector enhance wellbeing in society and improve environmental sustainability

6 How do we work? Tekes encourages companies to do challenging R&D&I Funding for the creation of new know-how and development of products, processes and service or business concepts We accept more risks than private financiers Tekes facilitates collaboration and networking between small and large businesses industry and the academia public and private organisations globally nationally regionally

7 Tekes R&D&I funding in the state budget 1983 present (millions of euros) Year 2000 Year grants and loans for companies Innovation projects: -New business competence -New business consepts -Service development -Product and service design - Workplace development Founded year 1983 Totally 35 million eur grants and loans for companies technology R&D projects (products, processes) Research funding for universities 220 grants and loans for companies technology R&D projects (products, processes) 205 Research funding for universities

8 During the past five years ( ) Tekes has funded 2,700 public research projects 4,400 corporate research, development and innovation projects The projects have resulted into 2,400 products 1,700 service innovations 1,000 production processes 3,500 patent applications 4,900 academic theses 11,300 academic publications... And most important: LOTS of new businesses!

9 Half of the funded projects are internationally networked Tekes overseas offices International activities in projects funded by Tekes in DM

10 Being Glocal: Branches and Regional Network Tekes is the biggest and nationwide R&D&I player in Finland, but: - we have 14 local offices around Finland - we build local innovation strategies based on local strengths Regional Network - we can start proactive funding programmes based on these strengths and clusters Result: we can act more local than most other innovation organisations Lapland (Rovaniemi) Northern Ostrobothnia (Oulu) Ostrobothnia (Vaasa) Southern Ostrobothnia (Seinäjoki) Central Finland (Jyväskylä) Pirkanmaa (Tampere) Satakunta (Pori) Southwest Finland(Turku) Kainuu (Kajaani) North Savo (Kuopio) North Karelia (Joensuu) South Savo (Mikkeli) Häme (Lahti) Uusimaa (Helsinki) South-eastern Finland (Lappeenranta)

11 Lessions learned : 1. Bring the academic world close to companies they both benefit 2. Pay attention in long-term development work even in smallest companies the game is today evolve or die, the competition is global 3. Build on something that already exists: even the world is today global, look for local business potential. It all starts there 4. In post-industrial world, seek new potential growth outside the obvious or conventional: culture services, leisure, tourism etc DM

12 Recent developments New innovation strategy: demand-based innovations innovative individuals and creative communities international networking Service development and service design => Tourism, free-time and leisure services Creative industries DM

13 FINLAND - Encouraging innovation environment Growing investments in R&D&I public and private Active dialogue involves companies, research institutes and public sector Competitive economy the 6th most competitive country in the world World Economic Forum 2009 The 2 nd most competitive country in Europe 2010 according EU

14 Keep in touch! Information about Finnish innovation environment, Tekes's activities interesting publications and research and development projects

15

16 Impacts of R&D funding Tekes s clients have experienced more rapid growth than companies in the business register in general. Business Aid Database Creation: Final Report by the Working Group (2006) R&D funding increases the growth, activeness in seeking patents and demand for labour of companies and reduces the likelihood of business closures and mergers. Hovi et al. (2006) R&D funding has increased the growth of productivity and improved employment in companies with a well compensated R&D. Piekkola (2006) Nearly two in three companies perceived Tekes funding to have helped the company increase its net sales. Pekkanen et al. (2004) DM

17 Tekes funding is heavily concentrated on R&D in small companies Share of Tekes funding in 2008 compared with companies own R&D investments in Over 500 Size of company by number of employees Tekes funding covers more than one third of R&D in companies with less than 50 employees, but less than three per cent of R&D in companies with more than 500 employees. Sources: Statistics Finland and Tekes DM , 58774, and

18 Tekes R&D funding by industry Million euros Machines and metals industry Electronics and electrotechnical industry Chemical industry Forest industry Construction In addition Tekes funded workplace development through the TYKES-programme with 12 million euros. Foods DM and

19 Tekes R&D funding for services Million euros Software, data processing and user testing Architecture, engineering and technical services Other services Management and design consulting R&D services In addition Tekes has funded workplace development with 12 million euros. Wholesale and retail trade Health care and social services DM and

20 Branches and Regional Network 1/3 1. Telecommunications and Electronics Industries Telecommunications equipment and services, measuring instruments, consumer electronics, components 2. Software and Digital Media Industries General IT services, software products, content business, graphics industry 3. Forest and Chemical Industries Pulp and paper industry, wood product industry, forest industry machinery, equipment, process automation and services, wood production, forest industry chemicals, technical chemistry, petrochemistry, chemical industry machinery and equipment, production of plastic raw material and chemicals 4. Mechanical Engineering Industry Vehicles, working machines, unit goods production, goods production-related IT and automation, product and production planning services, integrated services in products, metal refining, composites, plastic products, textile, clothing, leather and shoe industry DM

21 Branches and Regional Network 2/3 5. Real Estate and Construction Industries Real estate, planning, building development and related services, construction, building technology and equipment construction materials, construction data systems, infra 6. Energy and Environment Industries Energy production, distribution and use, fuels, waste processing, recycling, water supply and sewerage, air and climate protection, planning services, machinery and equipment for energy production and use electrical engineering and equipment, IT related to energy and environmental systems 7. Services and Well-being Industries Services for health care, social care, training, security, tourism and adventure, other knowledge-intensive services, IT in services 8. Life Science Industries Pharmaceuticals, food chain, diagnostics, health care biomaterials, IT in bio production, pharmaceuticals and food production DM

22 Branches and Regional Network 3/3 9. Business Economics Business and funding analysis; Improvement of the business conditions for growth companies and especially startup companies and expertise in entrepreneurship, financing and venture capital; Disbursements of company funding and development of accounting, disbursement and monitoring practices 10. Support for Core Activities Services related to documents, projects, and project and customer advice 11. Regional Network Innovations and International Business Operations units at the ELY Centres offer Tekes services to companies and research organisations DM

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