Finnish Cleantech Cluster and Tekes Activities

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1 Finnish Cleantech Cluster and Tekes Activities Executive Director Teija Lahti-Nuuttila Tekes the Finnish Funding Agency for Technology and Innovation DM

2 Tekes general presentation Finnish Cleantech Cluster Tekes Activities in Cleantech DM

3 Expertise and networks for innovations Tekes services Funding for innovative R&D and business 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, hospitals etc. Resources Budget: 600 million euros annually Personnel: 360 in Finland and abroad Public agency under the Ministry of Employment and the Economy DM

4 What is innovation? Knowledge or competence used in a manner that brings new benefits for economy or society Service innovations Innovation? Product innovations Innovative business concepts Process and working life innovations DM

5 Tekes R&D funding in 2012 Total 570 million euros and 1,640 projects R&D grants to companies and public organisations 236 million euros Research funding for universities, research institutes and polytechnics 217 million euros R&D loans to companies 117 million euros The funding for R&D includes 14 million euros from EU Structural Funds DM and

6 Tekes funding is either a grant or a loan We cover a part of the project expenses. In order to receive Tekes funding, a company must have the prerequisites for arranging its own financing share. Grants are paid every six months in phase with realised expenses to SMEs, usually 35% or 50% to large enterprises, 25% or 35% Loans are risk loan without collaterals; a part of the loan can be paid in advance to SMEs, usually 50% or 70% DM

7 Growth and wellbeing through regeneration DM

8 Half of the funded projects are internationally networked Any international company located in Finland is eligible for Tekes's funding, regardless of ownership. International activities in projects funded by Tekes in

9 The productivity of Tekes customers has increased more compared to other companies in Finland Growth in productivity in SMEs (3-250 employees ) Tekes Customers Comparison sample All SMEs Tekes customers received funding from Tekes in Companies in the comparison sample have not received funding from Tekes. Source: Etlatieto Oy, 2012 DM

10 Tekes funding creates turnover and jobs In SMEs, an investment of one euro by Tekes produces 21 of turnover annually For every 14,000 of Tekes funding, one permanent job is created in the private sector DM

11 Tekes General Presentation Finnish Cleantech Cluster Tekes Activities in Cleantech DM

12 CLEANTECH FINLAND, EXPERTISE In Finland the cleantech sector includes about 2,000 enterprises and it is highly diversified. The national objective is to develop the sector into a new cornerstone industry. Finnish cleantech companies are already global leaders in energy efficiency, clean industrial processes and bioenergy. Market growth rate Recycling Energy efficiency Bioenergy & wind Clean industrial processes Measuring, analysis, automation Consultancy Air protection Waste management Water resources management The size of the ball is equivalent to market position of the Finnish companies in the global markets. Market size

13 But is economic competitiveness compatible with environmental sustainability? Past ten years Finland has been ranked 3 times #1 Source: The World Economic Forum

14 CASE: In the city of Helsinki, DHC and electricity are produced in CHP processes on a large scale. The emissions have decreased and the air quality in Helsinki has improved considerably since 1990s despite the fact that energy production has increased by more than 60%! District heating comprises 1250 km of networks and about 10,000 customers (buildings) DH covers 93% of the total heating energy demand in Helsinki More than 90% of DH energy is produced by CHP The energy efficiency of CHP exceeds 90%, which is one of highest in the world Despite of low prices of DH, Helsinki Energy is highly profitable. Helsinki is the third biggest and fastest growing district cooling operation in Europe. Awards: The EU has ranked DHC and CHP in Helsinki as Best Available Technology in International Energy Agency IEA has awarded Helsinki for superior solutions for climate change mitigation in Euroheat&Power and IEA has awarded Helsinki the Best District Cooling System Source: in Source: Arto Nuorkivi 2012

15 Tekes General Presentation Finnish Cleantech Cluster Tekes Activities in Cleantech DM

16 Focus areas Business models Services and intangibility as value creators Digitalisation Natural resources and sustainable economy Intelligent environments Vitality of people Strategic research areas determined by the Strategic Centres for Science, Technology and Innovation DM

17 Natural resources and sustainable economy Intelligent environments Priorities in Cleantech Energy and raw material efficiency Renewable energy solutions Smart energy systems and sustainable material economy New forest and biomass solutions Sustainable solutions for mineral resource use and water consumption Safety and security of the living environment which makes good use of digital systems User-oriented products, services and processes DM

18 Energy and environmental sector programmes Sustainable Community ( 100 million) BioRefine - New biomass products ( 200 million) Fuel cells ( 144 million) Water ( 90 million) Groove - Renewable energy ( 95 million) Green Growth - Towards to a sustainable future ( 79 million) EVE - Electronic vehicle systems ( 80 million) Green Mining ( 60 million) Smart City ( 100 million) DM /6/13

19 What do Tekes programmes offer companies and research organisations? Funding for research and development projects accordant with the programme's objectives Programme services that promote programme participants' networking internationalisation business skill development transfer of research results to SMEs. A community in which competitors can also meet each other as partners Opportunities to gain exposure to the results of projects implemented in the programmes DM

20 Growth from Renewables - Tekes Groove program Program duration: Program s total volume is about 95 M, of which about half is contributed by Tekes The goal is to develop and support innovations for breakthroughs in the global market

21 China activities Trip to China in 2011 HongKong, China High-Tech Fair in Shenzen Trip to Shanghai and Jiangsu Province in 2012 East China University of Science and Technology, Shanghai Jiangsu province Road Show China International Technology Transfer Conference, Nanjing Joint Call with Jiangsu province with cleantech theme 22 pre-proposals of which 13 has been evaluated for the next step, decissions in June Industry delegation from Jiangsu in June, Next Call in September DM

22 Case: The renewed bio boiler selection ensures the development Ariterm Oy Idea Renewal of bio boilers to suit the requirements of new markets: easy biomass heating as the goal of the project Impact The renewed biomass heating system is an integrated whole that is easy to install and use. The boiler s efficiency is the highest on the market. Without the product reform, Ariterm s export and entire business would have declined. With the help of the new products, the company hopes to increase its export rate from 40 to 60 per cent. The growth will come from new markets Tekes role The Groove programme brought an aspect of discipline to the product development project. Tekes funding speeded up the project, and without Tekes the project would not have been implemented at this scale.

23 Tekes shares the risk of growth and regeneration Tekes Do not hesitate to contact us!