Orientation to Finnish Innovation System. Best Practices

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1 Orientation to Finnish Innovation System Best Practices

2 Finland Population 5.3 Million Area sq.miles, of which 10% is water, forests cover 68% of the country Female president Tarja Halonen, 38% women in PM Majority of Gov. members are women Major export metals, engineering, electronics, forestry Largest companies Nokia, StoraEnso, Fortum, UPM-Kymmene, Kone Home of Santa Claus Source TEKEL

3 International Competitiveness of Finland Ranking System Rank World Economic Forum (2008) 6 Lisbon review (2008) 3 Innovation and R&D(2008) 1 Enterprise environment (2008) 1 Transparency International (2008) - least corrupted country in the world: 9,0 (max 9,3) PISA Program for International Student Assessment Science (2006) 2 World competitiveness yearbook (2008) 15 European Innovation Scoreboard global innovation performance (2006) 3

4 What is Inno Praxis: InnoPraxis International Ltd. is a company which is specialized on innovation system and technoparks consulting. In our collaboration with clients we use very practical approach based on our long experience of technoparks operations and deep understanding of well-known Finnish innovation system. Our mission is to help our clients to create effective innovation models that are in demand by local market and competitive on international level.

5 Our experience: Practical experience in managing green-field Technopark projects. Practical experience of developing innovation support programs jointly with public authorities and private companies. Wide international experience of consulting in Europe, Russia, New Zealand and Africa. Good collaboration with international innovation support organizations and investors to innovation infrastructure. Trained innovation organizations from ca. 40 countries

6 Technopolis group is Biggest STP in Europe Unique concept OULU KUOPIO JYVÄSKYLÄ LAPPEENRANTA TAMPERE ST. PETERSBURG GREATER HELSINKI Chain of STPs 1,200 company customers with 16,000 experts About 450,000 m2 ready or under construction Listed in Nordic exchange since 1999 ( the first globally) Fast growing and profitable Market cap some 130 meur International ownership Source Technopolis

7 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

8 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

9 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

10 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

11 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

12 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

13 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

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

15 Public Private Innovation Environment in Finland: Resources & Funding R&D at companies Business Angels From abroad Venture capitalists: Private Academy of Finland VTT Tekes Finnish Industry Investment: direct, VC- funds seed funding Sitra Finpro Finnvera Universities Ministry, TE-Centres, sectorial research Basic research Applied research Business R&D Business development Marketing Internationalisation DM Copyright Tekes

16 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 National Patents & Registrations promoting in & out direct investment National Academy Innovation Council Universities & other high education Bureaus

17 Innovation Circle COMPANIES RESEARCH & EDUCATION Resources PUBLIC SECTOR

18 Universities and Technology Centres University Technology Centre Source TEM

19 Technology profiles Automation, lifting and moving technology Biotechnology, pharmaceuticals development Chemical and plastic technology Digital media, content production Electronics, optoelectronics Energy technology Environmental technology Food technology Forestry and wood technology Healthcare and medical technology Prizztech, Marko Mikkola Information and communication technology Laser technology, optics Logistics Materials research and technology Measurement technology Metal, machine and tool technology Nanotechnology Paper manufacturing technology Seinäjoki Technology Centre Source TEKEL

20 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

21 Key directions of Finland s STI policy Strengthened public R&D investments catalysing growing corporate R&D investments in Finland aiming at 4% GDP share 2. Wider-range promotion of innovations: technologies, services, business, branding/design, public sector direct support, marked-driven incentives, tax incentives 3. Strategic choices and focusing of resources 4. Reaching world-class level in focus areas, strong international 5. Structural interaction reforms of the innovation system R&D&I programs Foresight SHOKs Strategy +3-5%/year Growth firms FinNod e growth of FiDiPr public R&D invest soske o Innovatio n Universit Universit y y structural reform Market incentive s Tax incentive s EU FP7 Ministry of Labour & Industrie Sector s research Source TEM

22 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

23 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, a renewal of the Venture Capital financing system Source TEM

24 Role of STP Education Public sector STP: Independent Professional Transparent Business sector Funding

25 Analyse the whole business environment Technoparks that create business environment which is favorable for innovations and growth of high-tech companies.

26 STP types Alliance -driven Regional development University - driven Innovations Start-ups R&D FOCUS Business development Company - driven Industry development From research to production Cluster -driven

27 Aim of Technopark Help companies to succeed!

28 TEKEL Key Figures TEKEL, Finnish Science Park Association, member centres contain (in total) 1,300,000 m employees 2,200 customer companies and organisations StickTech / Turku Science Park 20 technology incubators Source TEKEL

29 Common STPs evolution Government Government Local STPs Local STPs

30 Finnish Model Government Local STPs

31 STPs evolution in Finland Local initiative + Different conditions & needs in Identification of potential technoparks creation, 80s industries & technologies Different technoparks, every has own peculiarities «Finnish model»... Mutual influence Sharing Experience Collaboration development, TEKEL, 1988

32 STPs are servants of two masters

33 STPs are servants of two masters Techno Park Product: Business Environments Product: Project Management Companies Public Authorities

34 Mission of STP & Region Mission of Region to generate sustainable economic growth Mission of STP to generate profitable growth of innovationbased companies

35 Growth Proccess. Innovation Ecosystem. F i n a n c i n g 80% Public 40-60% Public 20% Public R&D Funding 95% Public 100% Public 100% Public Science & Technology Park Invention Foundation Uni Inno Centres Corporate Inno Mgt Business Incubator H o m e f o r d e v e l o p m e n t

36 Main Processes in Technopark Development Services Business Incubation Office Management Services Premises

37 Development Services Regional Marketing Regional Development Clustering Multinationals Acceleration Regional Innovation Potential Innovation discovery Incubation Source Technopolis

38 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

39 Innovation System Development Public support Regional or cluster development programs 1 Innovation System Potential Analysing R&D Education Support of growing companies 2 Willingness to Utilise & Develop Potential Joint Vision & Promotion Funding models Legislation Business incubators STP infrastructure & services 5-8 years 3-5 years on-going

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