VTT as an Innovation Partner. Petri Kalliokoski EVP, Strategy and Business Development

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1 VTT as an Innovation Partner Petri Kalliokoski EVP, Strategy and Business Development

2 2 Agenda :00 Welcome, VTT as an Innovation Partner/Petri Kalliokoski, Executive Vice President 9:30 Experiences in providing process improvement solutions for steel manufacturers, Jose Angel Gutierrez, ICT Division, Tecnalia 10:00 Challenges in co-creating within a global fast growth wind turbines company, Cristina Oses, Gamesa and Javier Ruiz, Tecnalia 10:30 Collaborative business and technology development programme with an SME client /Iiro Salkari, Technology manager 11:00 VTT and growth oriented SME companies/teijo Salmi, VP, marketing 11:30 Wrap up 12:00 Seminar closing

3 3 R&D expenditure of gross domestic product (GDP) share in Finland % Source: Statistics Finland, VTT

4 4 Public decision makers, financiers and R&D performers Parliament of Finland Research and Innovation Council Ministry of Education and Culture Council of State Ministry of Employment and the Economy Other ministries and research institutes Academy of Finland Universities Tekes, the Finnish Funding Agency for Technology and Innovation VTT Sitra, the Finnish Innovation Fund Finnvera Finpro Finnish Industry Investment Ltd ELY centres (Centre for Economic Development, Transport and the Environment)

5 5 VTT s status as performer of R&D work Basic research Applied research VTT Development

6 6 VTT s role in innovation environments VTT speeds up the creation of new technology-based business Innovative research VTT s innovation process Innovations and new business Technology benefits Exploitation of technology foresight and identification of emerging technologies Creation of new technologies and innovation potential Applications development and expansion of the competence base Transfer of research results Global technology management through research partnerships VTT creates business from technology Benefits for innovation environment and society Creation of foresight-based research strategies Renewal and development of industries/sectors Strengthening and expansion of knowledge base International networking Meeting energy, environmental, safety and security challenges Promotion of employment, wellbeing and everyday life Support for government decision-making Customer and enterprise benefits Innovation services and expertise New businesses and markets New companies and licensing International technology transfer International networks Expansion of the knowledge base Support for launching new products

7 7 VTT Group in brief 2012 Turnover 292 M (2010) Personnel 3,167 ( ) Customer sectors - Biotechnology, pharmaceutical and food industries - Electronics - Energy - ICT - Real estate and construction - Machines and vehicles - Services and logistics - Forest industry - Process industry and environment Focus areas of research - Applied materials - Bio- and chemical processes - Energy - Information and communication technologies - Industrial systems management - Microtechnologies and electronics - Services and the built environment - Business research VTT s operations - Research and Development - Strategic Research - Business Solutions - IP Business - Group Services VTT s companies - VTT Expert Services Ltd (incl. Labtium Ltd, Enas Ltd) - VTT Ventures Ltd - VTT International Ltd - VTT Memsfab Ltd

8 8 VTT Group on the map Finland Berkeley, USA (VTT/MSI) Sodankylä Rovaniemi Oulu Raahe Kajaani Jyväskylä Kuopio Outokumpu Tampere Lappeenranta Turku Rajamäki Espoo Helsinki East Coast USA Sao Paulo, Brazil VTT Research Units Germany Bryssel, Belgium Sales & Marketing Offices Feasibility studies on the new sites St. Petersburg Russia Soul, South Korea Shanghai China Tokyo Japan Singapore Australia

9 9 VTT s strategic research portfolio Addressing innovations, business, services and people Materials for breakthroughs functional materials and nanotechnology bio-based chemicals and precursors industrial biomaterials wood-fibre value chain Enabling electronics and photonics high-performance microsystems printed intelligence sensing solutions Digital world Low carbon technologies in energy efficient use of energy renewable energy sources nuclear energy, clean fossil energy energy systems, modelling for changes Industrial resource efficiency industrial biotechnology - green chemistry clean water waste refinery resource efficient processes Sustainable development Eco-efficient intelligent built environment connected sustainable districts multimodal intelligent transport integrated design, production and use comfort, health and safety Technologies for health and wellbeing healthier food solutions drug discovery and diagnostics systems biology ICT for health Emancipation of data interacting with the real world gratifying user experience managing design complexity massively scalable services Agile industrial systems organisation and management of global manufacturing simulation based engineering eco-efficient machines human and organisational practices

10 10 Business from research VTT s innovation process connects research and innovation Customer and other stakeholders needs Innovative research Creating new ideas, technologies, innovation potential, incubating applications and growing competencies Strategic research portfolio Foresights & visions Frontier research Large programmes Focus area projects Accelerated benefits process - Strategic networks and partnerships - Technology infrastructures - Licensing - Spin-offs - Partnerships - Contract R&D - Expert services Added value for customers and other stakeholders Business impacts

11 11 VTT s innovation partnership model Management and fostering of technologybased innovations Integration of different R&D competencies (Partnerships) VTT s customers Business and HTI competence Customer s customers VTT Industrial Innovation Management Integration of competencies Global markets and business environment R&D financiers Technology competence

12 12 VTT s innovation process Integration of VTT s and customer s innovation processes Industry s innovation process Technology foresight Concept development Product and service development Commercialisation Co-operation goals Future opportunities foresight Creation of business opportunities Development of products and services Commercial services VTT s innovation process Technology foresight Concept development Development of products and services Testing and consulting services Offfering Market, technology and business foresight Research services Business concepts Technology concepts Solutions Forums and networks Research services Products and services Outsourcing of R&D Consulting services Testing Certification Industrial rights New companies

13 13 Customer services

14 14 The commercialisation process Plan and manage EXIT in mind BIO idea SW idea Screening Evaluation ITCE idea Ideas Commercialization strategy Spin-off projects Investment Exit Printed Electronics idea Basic industry idea

15 15 Examples of portfolio companies Bio Provides a high-content gene expression analysis platform IT Removable media data protection Bio Personalized medicine based on gene expression analysis database IT Network risk management Bio Generating biomarkers and targets for commercialization through analytical chemistry ICTE Manufactures touch modules based on FTIR technology ICTE Document and brand authentication and security ICTE Commercializes a physical activity meter and service concept Healthcare Treatment for head and neck cancer

16 16 The spin-off process Cases evaluated using industry networks together with potential EIRs EIR is hired Team is built A business plan is prepared An investment proposal is made to Ventures board The spin-off is actively developed towards growth with VC partners Discovery and evaluation Incubation Investment Portfolio management Exit YES / NO Return/ Discard YES / NO Return/ Discard YES / NO Return/ Discard

17 17 The E-i-R concept E-i-R Qualifications E-i-R Engagement Domain expertise ( Been there, done that ) Multitasking Not risk averse (ambitious) Strong professional network Leadership qualities Responsible for leading an incubation project together with the researchers Responsible for producing a Business plan and an Investor pitch Building a startup founder team After a successful E-i-R project taking the lead as a startup CEO

18 18 Results 290 notifications of inventions and 33 notifications of software in Over 1,100 patents and patent applications in VTT s patent portfolio. VTT Ventures Ltd had partial ownership in 19 enterprises based on VTT s technology at the end of ,000 publications yearly, most of them scientific articles and conference presentations. 6,850 publications in VTT s own publication series since About 1,400 of them are available on the Internet. 93 publications in VTT s own publication series in 2010.

19 19 Impact of VTT s projects 91% of the respondents to VTT s customer survey reported that their knowledge base and expertise had improved. 74% had already commercially utilised the results of their VTT project or expect to do so within the next three years 28% said that it wasn't even their goal. 67% believed that a VTT project had speeded up or otherwise improved research and development work. 66% confirmed that new products, services or processes were created. 55% thought that a VTT project had promoted networking. 55% believed that a VTT project had contributed positively towards the opening up of new business opportunities. 49% reported that their competitiveness had improved. 48% said that a VTT project had promoted their marketing. 28% reported that a whole new technology was adopted. 17% said that a new business concept or a new earnings model was created. Taloustutkimus Oy, VTT customer survey, 2011

20 20 Summary Globalization of research and innovation Business thinking / development should be involved in the early phases of (applied) research Customer benefits and new business Strategic IPR development Market & customer validation Proof-of-concepts Expanding the innovation horizon beyond technology (e.g. services, processes, business models, design) New collaboration models between industry, universities and research organizations Incentives for customer projects and commercialization

21 21 VTT creates business from technology

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