Orientation to Finnish Innovation System. Best Practices

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1 Orientation to Finnish Innovation System Best Practices

2 Creative thinking => Idea Concrete idea => Invention In society widely utilized invention IS an INNOVATION Source TEKEL

3 Commercially In society In well-being Innovation = Exploited Competence-Based Competitive Advantage New knowledge, know-how, technology New product, technical solution, production process New (expert) service New design or brand New business model, value-chain, value-network New organizational, management or working life model New way of providing a public service Source TEKEL

4 Key Stakeholders in the Inno System EU & other international funding Invention Organisations Ministries High-tech Companies STPs and BICs Municipalities Investors Regional development centres Key actors of the innovation system Business Angels & VCs Public funding organisations Research institutes Organisations promoting in & out direct investment National Academy Innovation Council Universities & other high education National Patents & Registrations Bureaus

5 Inno System Inno System ideas INTERACTION between people, companies, universities, research and region Products, processes, services

6 Innovation Circle COMPANIES RESEARCH & EDUCATION Resources PUBLIC SECTOR

7 Factors explaining good Inno Performance 1. Historical background Source Virtual Finland Spirit of self-reliance and a can do attitude Good educational system, results of PISA-research Natural sciences and engineering well represented in secondary and tertiary education Strong industrial traditions People have been quick to adopt new technologies Strong tradition of public-private partnership Source Virtual Finland Source TEM

8 Factors explaining good Inno Performance 2. Favourable public atmosphere Education, science and technology highly valued in society Common trust in universities and research centres Openness to reforms and innovations Sensitivity to societal changes/ crisis Consensus-building tradition Source TEM

9 Factors explaining good Inno Performance 3.Firm political commitment to develop a knowledge-based economy A broad consensus on policy targets & financing Science & Technology Council A systemic approach to building up a national Inno System Technological universities, polytechnics, funding agencies, technology centres etc. Regional network of employment and economic development centres (T&E Centres) Other public business services (Finnvera, Finpro etc.) State acts as a promoter Systematic investments in R&D, steadily growing public S&T financing Effective financing instruments Centre of Expertise Programme Source TEM

10 Reasons for Finnish Success in PISA Consensus of importance of education equality by gender, region and socio-economic background Inclusive education High quality teacher education, university level, competition for study places Teachers strong role All schools are government supported schools Students well-being National standards and evaluation Homogenous language and culture Virtual Finland Images Source TEM

11 Finnish Higher Education System 20 universities Important role in Finnish regional policy 10 multifaculty universities 6 specialised universities 4 art academies Financed by the state Strong correlation between research and teaching

12 Finnish Higher Education System 29 polytechnics Co-financed by government and local authorities, i.e. municipalities or federations of municipalities Important role in regional development Polytechnic students have high level qualifications All these institutions (universities and polytechnics) are free of charge There are places in higher education for 70 % of secondary school graduates.

13 (Source: Eurostat, 2. Quarter 2006) Finland has the most educated workforce in EU Share of tertiary education graduates in workforce between years, 2006 (%) Total Female Population Finland 40 Finland 46 Denmark 39 Belgium 44 Belgium 38 Denmark 43 Ireland 38 Ireland 43 Spain 36 Spain 42 UK 35 Sweden 40 Netherlands 34 Greece 37 Sweden 34 UK 36 Greece 31 Netherlands 34 Luxembourg 31 France 32 France 29 Luxembourg 31 EU EU Germany 26 Germany 23 Austria 19 Portugal 23 Portugal 18 Italy 19 Italy 15 Austria 18

14 Public sector activities of R&D in Finland PARLIAMENT Science & Technology Policy Council Ministry of Education Academy of Finland Universities GOVERNMENT Ministry of Employment & the Economy Tekes VTT Other ministries & their institutes Sitra Finnvera Finpro Finnish Industry Investment Regional TE-Centres DM Copyright Tekes

15 R&D Input in Finland Total million euros, 3.5 percent of the Gross Domestic Product (GDP) of Finland Public sector 1.5 billion euros Enterprises 3.5 billion euros In 2008 Tekes allocates about 590 million euros for R&D projects Sources: Statistics Finland and Tekes

16 Public sector s share of total R&D funding Poland Portugal Hungary Slovakia Norway Czechia Spain Iceland France Netherlands Slovenia EU 15 Austria Great Britain USA Germany Ireland Denmark Finland Sweden Belgium Japan % Source: Eurostat DM and Copyright Tekes

17 SMEs participating in innovation cooperation Finland Sweden Iceland Belgium France Austria EU Greece Spain % Source: Tekes and European Innovation Scoreboard

18 Future Competitiveness Source TEM

19 Future Challenges in the Global Economy It is hard to get to the top but even harder to stay there Increase productivity, especially in the service sector Bright decisions on priorities Even better integration of SMEs into innovation policy More attention to business know-how, commercialisation and marketing Better innovation services, simpler systems Internationalization and mobility of labour force Still more active entrepreneurship-policy and Venture Capital financing Hard global competition, not only the cost of labour but also competition for the location of R&D activities Customer-based innovation policy Source TEM

20 Reshaping National Higher Education & Research System Universities Fewer units: 2015 Quality instead of quantity Innovation university and other networking universities Professional business-like management Teacher/students: 1/22under 1/10 More international networking High level teaching, Finnish Distinguished Professor Program Source TEM

21 Reshaping National Inno System Financing R&D investment will be increased to 4 % (of GDP) by 2010 Focus on competitive funding, competition between different projects and companies Public funds for R&D will be increased by 5 % annually Venture Capital markets don t work well, we must make a renewal of the Venture Capital financing system Source TEM

22 Venture Capital Financing System Renewal Starting and fast-growing innovative companies still have problems finding financing Public seed financing is well-developed, but private institutions don t invest in VC-markets in Finland Capital and business experience must be closely combined in innovative start-ups Tax incentives for business angels Source TEM

23 Ministry s Strategy: Innovation results in more sustainable work productivity Although Finland is a world leader in technological innovations, we are only average in terms of their commercialisation. Innovation will be enhanced and restructured, thus allowing for realisation of the Government Programme s new policies and a substantial increase in resources for innovation efforts. The concept of innovation will be expanded. Technological business innovations, the development of service systems, innovations applicable to labour organisations, regional innovation potential, and risk financing will combined within a single entity at the Ministerial level, at Tekes, the Finnish Funding Agency for Technology and Innovation, and at the regional level. This will create a system that supports strong enterprise growth and an increase in productivity. Source TEM

24 Competence Clusters & Centres of Expertise Living business Joensuu, Hämeenlinna, Lahti, Helsinki Digital Content Hämeenlinna, Helsinki, Tampere, Kouvola Food Development Kuopio, Helsinki, Seinäjoki, Turku Forest Industry Future HealthBio Kuopio, Oulu,Helsinki, Tampere, Turku Health and Well-being Kuopio, Oulu, Helsinki, Tampere Ubiquitous Computing Jyväskylä, Oulu, Pori, Helsinki, Tampere Tourism & Experience Management Nanotechnology Joensuu, Jyväskylä, Kokkola, Mikkeli, Oulu, Helsinki, Tampere Energy Technology Joensuu, Jyväskylä, Vaasa, Pori ja Tampere Cleantech Kuopio, Lahti, Oulu, Helsinki Intelligent Machines Helsinki, Rovaniemi, Savonlinna, Joensuu, Jyväskylä, Kajaani, Kokkola, Mikkeli, Lappeenranta, Turku Turku Hyvinkää, Hämeenlinna, Lappeenranta, Seinäjoki, Tampere Maritime Lappeenranta, Pori, Turku, Vaasa, Raahe

25 The new cluster-based generation of the Centre of Expertise Programme Why Programme has activated SMEs participating in innovation co-operation networking Programme has generated new companies and new workplaces Regional centres are combining in the new programme competition, activities to 13 nationwide clusters New model make the centres more effective and creative, it promotes international competitiveness Source TEM

26 Strategic Centres for Science, Technology and Innovation ( SHOKs ) A new approach to strengthen strategic areas of science & technology development stimulate cross-disciplinarily in research and innovation focus resources and increase international visibility Industry and academia joint venture (Cluster Ltd) Long term focus (10 years) Strong support by public R&D funders 1. Forest cluster (started 2007) 2. Energy and environment 3. Metal products and mechanical engineering 4. Health and well-being 5. Information and communication industry and services 6. Others DM Source TEM Copyright Tekes

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