PEOPLE - ECONOMY - ENVIRONMENT. Priorities for the future

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1 PEOPLE - ECONOMY - ENVIRONMENT Priorities for the future

2 Focus areas in Tekes strategy Tekes boosts the development of Finnish industry and the service sector by technological means and through innovation. This will renew the economy and increase added value, productivity and exports, thereby creating employment and enhancing wellbeing. Tekes values are wellbeing, vision, trust, cooperation and development. Our work is focused on three key objectives, the achievement of which we influence indirectly through our customers activity. A strong knowledge and competence base for research, development and innovation. In this targeted vision the quality and quantity of Finnish R&D and innovation activity have reached a high level. There will be a strong knowledge and competence base plus related support networks for key sectors and clusters in Finland. There will be a special focus on the internationalisation of innovation activity and on strong and networked Strategic Centres for Science, Technology and Innovation. Productivity and renewal of industries. This target involves taking productivity in sectors and clusters essential to Finnish economy and society to a top level internationally and making Finnish enterprises globally competitive. There will be a special focus on young innovative companies and growth companies. Wellbeing. In this target economic growth is integrated with the wellbeing of people and the environment. Technologies and innovations create a basis for the achievement of society s wellbeing and environmental objectives. There will be a special focus on sustainable energy economics, a quality healthcare service system and regional vitality. The strategic choices presented below in this publication are part of the Tekes strategy. The strategy is aimed at implementing our mission and objectives through activity in accordance with our values. The content of Tekes programmes will be determined primarily on the basis of these choices.

3 Foreword Finland s future will be founded on innovation and competence. Growth in productivity will be based on the renewal of the economy and society through new innovations and renewing practices. Renewal calls for activity and strategic agility from every individual. The strength of the Finnish innovation environment lies in broad and confidential cooperation between enterprises, academia and other stakeholders both globally and locally. With significant resources, tight networks and deep expertise Tekes plays a key role in the Finnish innovation environment. The policies presented in this publication will guide research, development and innovation prioritisation and the use of Tekes and other R&D and innovation funding resources in the coming years. The purpose is to ensure that wellbeing and economic competitiveness in Finland continue to develop soundly despite the challenges brought to us by globalisation. Tekes will implement the strategy focus areas through Tekes programmes and Strategic Centres for Science, Technology and Innovation. The work is based on people and their communities and recognises their individual needs and opportunities. Our sphere of life is changing: Finland is part of the global economy. Changes in the world economy, population development, environmental issues, the development of cultures and values, and issues related to aspects such as safety and security will bring us many challenges for renewal. The wellbeing of Finland and everyone living here calls for work, competence, collaboration and balance between different sectors of life. It also calls for life being perceived by all as meaningful and worthwhile. The needs of people of all ages and capabilities must be heard and people must be given the opportunity to utilise their skills and competences in a variety of life situations. We need shared visions of the future and faith in our ability to reach our objectives. Global value networks are renewing continuously. We must be able to anticipate and analyse changes in value networks to make correctly-timed and executed renewal possible. End-user needs and scientific and technological developments are constantly creating new opportunities that Finnish players should utilise in the front line. To grab opportunities and respond to challenges we need new thinking, strategic agility and a will to renew in the various sectors of economy and society. We can develop our innovation competence into a superior competitive advantage. There will be a clearer and clearer shift from offering scientific and technological development applications to models of customer- and demand-driven value creation: ever more new innovations are being created in international networks in which users are involved as active participants. This requires new types of competence from all those involved. Issues such as the management of customer behaviour, interaction and networks increase in value in this context. We also need the will to renew established practices and the courage to tackle changes that may extend deep into underlying structures. At Tekes we would like to thank our customers, stakeholders and all others participating in this process. We challenge everyone to join us in the renewal process and in renewing value networks. It is through collaborative effort and foresight of the future that success will be achieved. Tekes the Finnish Funding Agency for Technology and Innovation PEOPLE ECONOMY ENVIRONMENT 3 Priorities for the future

4 Summary The formulation of Tekes strategy focus areas is a process in which through cooperation and interaction between Finnish enterprises, academia, research organisations and stakeholder groups a view is created on strategic choices that are important for Finland. Through these choices Tekes will steer major national resources in cooperation with customers and stakeholders. These choices will drive research, development and innovation activity to areas where Finland will have the best opportunities for growth and competitiveness globally. The choices are farreaching and in many cases involve a timespan of several decades, which means slow phenomena such as changes in values must also be taken into consideration. The choices made are increasingly affected by three factors: the challenges and opportunities arising from people and their wellbeing, the opportunities created by technology and economy, and restrictions, challenges and opportunities related to the environment. When strengthened in their influence, these factors will have a more obvious effect on the market through demand, values and regulation. They influence the prerequisites of economic competitiveness and choices made in this strategic prioritisation process. Economy and technology Interaction and integration DIGITAL WORLD People with their human potential and choices are at the core. Competent individuals who feel well are creative and innovative and able to utilise a diversity of information sources and division of tasks as well as various partnerships and networks in both their work and leisure time. Achieving a world with Society WORLD WITH HEALTH AND WELLBEING PEOPLE SUSTAINABLE WORLD Environment health and wellbeing calls for extending investment into the development of health and wellbeing services nationally and globally. Vital for this is an understanding of end-user needs, and human interaction. Technological and economic development remains a key factor in the PEOPLE ECONOMY ENVIRONMENT 4 Priorities for the future

5 creation of wellbeing and its economical prerequisites. A digital world enables new approaches, new types of organisational models and new business concepts. It also generates increased productivity and the employment of new innovations while enhancing the management of complete systems, division of tasks, and networking. Awareness of the limited tolerance of the environment is moving values and business activity towards greater sustainability. Behind this lie increased public awareness about the finite nature of our environment and climate change in particular. Increasing price of energy and raw materials are also strong drivers towards sustainable development. Sustainable activity entails the adoption of ethical activity and social responsibility by organisations, communities and individuals as key foundations of operational valuation. The themes and practices chosen are areas in research, development and innovation where the convergence of the needs of people, technology, economy and the environment will be promoted through proactive measures. Particular attention in these choices was paid to prerequisites for competitiveness in the global arena while special national needs were also strongly emphasised in some areas, such as healthcare. The practices require activity, entrepreneurship, creativity and interactive skills from individuals. Cooperation will need to be multisectoral and characterised by respect for difference and open learning from each other. Organisations will need to use foresight for insight, be agile and engaged in continuous renewal. Business concepts will become more diverse with value creation often taking place through intangible values, with brands and organisational reputation as examples of this. The challenge is to achieve encouraging and motivating leadership around complex issues in organisations that often are decentralised and multicultural. In renewing innovation activity creative ideas are processed for utilisation in broad-based and often userdriven cooperation involving multidisciplinary competences. Challenges are complex. Decentralised/open innovation activity also affects the valuation of intangible capital. Testing, piloting and experiment platforms play increasingly important roles. Foresight of customer needs means the type of thinking where the end user is positioned at the core of all activity. Usability, functionality, humanity, health, environmental friendliness and interactivity are significant in this context. Increasing user interaction also challenges enterprises social and ethical responsibility. In the global value networks model, operating areas are naturally extended beyond geographical and cultural borders. Enterprises will be expected to create global value networks and find competitive advantage in them. This calls for continuous foresight and analysis for insight as well as strategic agility in response to changes. Public-private partnerships aim to achieve a situation where the Finnish welfare society is a good and safe environment for its members and as a whole is a significant national resource, competitive factor and enabler of renewal. The public sector can also act in many ways to encourage innovations. The role of information and communications technologies is to enable novel approaches in the different fields of application. ICT renews clusters, organisations, management and leadership, enables a diversity of business concepts, and increases productivity. All this can be seen in the everyday lives of people. It is possible for Finland to reach international excellence in issues such as quality of working life and productivity as well as learning applications. The themes will be promoted mainly through Tekes programmes and other interactive activity. Some of the themes are already being promoted through existing programmes while for others programmes or other active measures are under preparation. We will also challenge our partners to participate in our programmes and other interactive activity. The Strategic Centres for Science, Technology and Innovation being launched will address application-oriented development needs that fit our programmes. Efforts have been made to match thematic choices presented here with the choices made for the Strategic Centres. The wellbeing and health theme will create the prerequisites for a good quality of life, which includes health promotion and personalised and extensive care regardless of time and place that is provided in a humane and socially sustainable manner. At the same time the cooperation between private and public actors and the creation of a well-functioning market are promoted. The aim is to maintain PEOPLE ECONOMY ENVIRONMENT 5 Priorities for the future

6 Themes and practices Global value networks Renewing innovation Wellbeing and health Clean energy Scarce resources Built environment Service business and service innovation Intelligent systems and environments Knowledge society for all Interactive media Public-private partnership Foresight of customer needs Finland s position as a leading country in wellbeing. Knowledge society for all is a theme developing the prerequisites for renewal, continuous learning and creativity. It will create the prerequisites for generating useful competences, understanding and knowledge from fragmented and scattered information and help achieve responsibility and caring for others. The objective is a good life for all. The clean energy theme covers sustainable development and care for the environment, energy price increases and combating climate change. These phenomena create both needs and opportunities. One particular aim is to find solutions to community need for clean energy. ICT as an enabler The scarce resources theme is built on the notion of new challenges and business opportunities arising from environmental awareness, regulation and the prices of raw materials and energy. The aim is to convert scarce resources into a competitive advantage for Finnish industry and economy. The built environment theme utilises and develops the built environment as an enabler of many functions, a generator of competitive edge and an improver of quality of life. The aim is to develop this environment into a user-oriented physical and virtual service platform that will also help save natural resources. The intelligent systems and environments theme utilises opportunities provided by information technologies and digitalisation in various applications in the context of increasing intelligence and user-centricity. The aim is natural collaboration between people and their operating environment with the help of embedded intelligence. The service business and service innovation theme develops service business and competence widely across all industries. The customer has a central role in novel service business models as well as in knowledge-intensive business networks based on partnerships. Individual consumer values and aspirations create the basis for service business in consumer markets. The purpose of the interactive media theme is to identify and further develop the business and networking opportunities - both infotainment and entertainment - that emerge when me- PEOPLE ECONOMY ENVIRONMENT 6 Priorities for the future

7 Crosscutting competences and TECHNOLOGIES CROSSCUTTING COMPETENCES AND TECHNOLOGIES breakthrough applications in materials nanotechnology applications systems engineering and embedded ICT future information networks knowledge and content management software and digital services revenue logics in value networks innovation competence multicultural management leadership design biotechnology applications in energy, environment and wellbeing systems biology computational methods bioprocess technology customer-centric service innovation service concepts and technology applications foresight competence regulation and standardisation competence productivity and the quality of working life lifelong learning dia goes digital and more interactive. The aim is to raise the technical and business competence of media companies to enable them to do international business in the global media ecosystem. Competence needs have been identified through two perspectives: what are the competences required by the thematic choices and focus areas, and which competences (which in themselves will renew the operating environment) are currently emerging? Global excellence is needed in all selected areas. Competences selected under information and communications technologies are systems engineering and embedded ICT, future information networks, knowledge and content management, plus software and digital services. Materials applications competence and applications of nanotechnology are horizontal competence areas in which Finland aims to be a world leader. These will also be focused upon in the future. Applications of biotechnology in the energy, environment and wellbeing sectors will be important in the future. Management of complex systems in systems biology and bioprocess technology make it possible to gain trajectories in chosen areas. Essential focal areas in business competence and business development include revenue logics in value networks, innovation competence, and multicultural leadership and design. Finland aims to remain among the world leaders that are renewing and developing in innovation competence. In service competence elements identified as important include the management of customer-centric service businesses, service concept creation and the full employment of technology applications. Crosscutting societal competences are foresight competence, regulation and standardisation competence, productivity development and the quality of work. Inevitable change and renewal will require opportunities for lifelong learning. To succeed, Finnish society will need multidisciplinary competences Competences can develop for individuals and organisations but also for structures and practices. PEOPLE ECONOMY ENVIRONMENT 7 Priorities for the future

8 Drivers for change Key words in understanding the changes taking place in the world include globalisation, technology, energy, population and the environment. These are to do with the long trends of development and change: changes that have continued and will continue for a long time and that shape the world s structures and markets. While there is unanimity on many of the major trends of change, the speed, timing, consequences and adaptation needs related to change are harder to anticipate. History has taught us there can also be unexpected events that change the direction of development or result in discontinuity. Weak signals are explored and attempts are made to interpret them while also attempting to anticipate alternative development paths. The aim is to be flexibly prepared for different futures. The future is only partly given in part it can be chosen. A changing world a changing Finland PEOPLE ECONOMY ENVIRONMENT 8 Priorities for the future

9 Clusters As well as the themes selected, the Tekes strategy focus area formulation process also viewed the dynamics of industry, the economy and society through clusters. The cluster perspective allows us to better anchor issues to our industry and economy. It also helps us see the need for continuous renewal and interaction between clusters. Clusters are viewed as part of international clustering. Opportunities are looked at from global perspective so that global changes receive the attention they deserve. Analyses address changes in each cluster s innovation ecosystem as opportunities. Productivity and its growth can be boosted with new innovations and operational efficiency. In many sectors of the Finnish industry, economy and society the biggest potential for increased productivity can be found specifically through innovation. Examples of this include renewed practices, adoption of new technologies and the consequences of these as well as the renewal of business concepts and practices. Clusters are seen as constantly renewing actors that are looking for new partnerships and value creation globally and multidisciplinary. This calls for activity, entrepreneurship, cooperation, creativity and constant foresight from the competent players. STRATEGIC AREAS IN CLUSTERS Wellbeing and health Lifelong learning and teaching services and products Work and everyday life services and products Personalised and extensive treatment and care products and services Health promotion and preventive products and services Leisure products and services Customer-oriented social and healthcare service system Service business E-commerce Individually tailored consumer services utilising social networks and media Services for the home and everyday life Integrated and networked business service solutions One-stop-shops for services Multichannel solutions involving extensive technology employment Novel management solutions and technologies for extensive value networks Information and communications Commercial and public services based on information networks Ubiquitous computing ICT in renewing business processes and models Solutions for next-generation information networks Embedded ICT in renewing products and systems Management of networked information and knowledge Energy and the environment Sustainable solutions to raw material use Energy-efficient solutions and services Ecological production and products Equipment and systems for clean energy production Intelligent energy systems Forest Forests as a service platform High value-added products from wood New wood and fibre product solutions Scarce resource and intelligent production technologies Forests as a raw materials reserve Metals Knowledge-intensive service business New products and customer solutions Real estate and construction Software and ICT based services Real estate business and services Maintenance and renovation Critical urban structure Business for sustainable development User-oriented space concepts Food Nutrition and health Wellbeing products Concepts promoting food safety An efficient and productive food cluster new approaches PEOPLE ECONOMY ENVIRONMENT 9 Priorities for the future

10 Implementation Tekes will mainly implement the choices made through programme activity and other proactive measures. According to current policies, a little over a half of funding granted by Tekes will be allocated in this manner. The other half is reserved for customer-driven open calls. Typical programme duration is four to five years, with each programme having its own content and financial plan. At the beginning of 2008 there were 26 Tekes programmes underway. These are based on previous strategic choices, but thanks to strategic continuity will also largely build on the focal areas presented here. New programmes can be launched at the pace determined by Tekes funding whenever allowed by the completion of current programmes. At Tekes we will seek to improve our strategic agility to respond to needs for change. New programmes will be launched and ongoing ones redirected rapidly in an end-user need-driven manner. The Tekes strategy focus areas and their implementation take into consideration the focal areas of the national innovation strategy and those of the Strategic Centres for Science, Technology and Innovation. Part of programme content will be taken over by the Strategic Centres in the future. The following areas will be the first to be allocated new strategic themes as well as proactive measures regarding renewing practices and competences: Share of Tekes funding 50% Future development of Tekes programme activity Ongoing programmes - Global value networks; increasing importance as an approach, a programme related to value networks under preparation; - Wellbeing and health; due to the sector s growing importance, a programme related to operating processes under preparation; - Interactive media; a rising focal area that will change approaches and practices across sectors; - Service business and service innovation; due to the growing significance and expansion of services and in order to strengthen related competences; - Clean energy; a sector with increasing significance; a key programme about to end; - Scarce resources; a sector with increasing significance influencing approaches and practices across sectors. New programmes based on Strategic Centres for Science, Technology and Innovation Year All programmes will endeavour to pay attention to approaches and practices in global value networks, innovation activity, consumer interfaces and the publicprivate sector interface. The enabling role of ICT will also be taken into consideration. Programmes launched during the strategy process are Sustainable Community and Spaces and Places under the built environment theme, Ubicom Embedded ICT under the intelligent systems and environments theme, and Water under the scarce resources theme. PEOPLE ECONOMY ENVIRONMENT 10 Priorities for the future

11 This publication presents the Tekes strategy focus areas on the basis of which Tekes will direct its new programmes and funding for long-term research, development and innovation, including funding of Strategic Centres for Science, Technology and Innovation. The whole printed publication is available in Finnish and a summary in English. The material is also available on the Tekes website. PEOPLE - ECONOMY - ENVIRONMENT Priorities for the future People Economy Environment Priorities for the future PDF file To order Tekes publications please visit You will find the strategy focus areas and programmes in English on the Tekes website

12 PEOPLE ECONOMY ENVIRONMENT Priorities for the future Tekes strategy focus areas Tekes has led a process where priorities for the future that are of significance to Finland as a whole have been formulated in cooperation with enterprises, academia, research organisations and other stakeholders. This strategic process was completed in cooperation with the national innovation strategy process. This report presents Tekes interpretation and vision based on these extensive discussions, with transitions in social structures and major changes in approaches and practices as key issues. Finland s major challenge is to find partners in global value networks rapidly and flexibly as relevant in each situation. In renewing innovation activity end users will be involved in close cooperation to create innovations. The choices made focus on eight themes: wellbeing and health; knowledge society for all; clean energy; scarce resources; built environment; intelligent systems and environments; service business and service innovation; and interactive media. Tekes research, development and innovation funding will be guided by these priorities in the coming years. Tekes key message is crystallised in the title of this publication: PEOPLE ECONOMY ENVIRON- MENT. The Finnish view is that the convergence of these is possible. It is from this message that we will also explore global business opportunities. Global openness, value networks and Finland s attractiveness are essentially related to our objectives. Tekes will work as one of the world s leading innovation environments, engaged in a constant process of renewal and foresight. This will also support renewal and decision-making in our society, industry and economy. What is essential here is cooperation how we will plan and implement things. Our cooperation processes will be foresightful, discussive and multidisciplinary. Tekes has challenged and will challenge more and more groups in Finnish society such as those responsible for the development of wellbeing at work and learning to take part in extensive cooperation. Renewal and productivity is ultimately about entrepreneurship and the activity of every one of us. All this can be achieved within the constraints set by the wellbeing of people, the economy and the environment. PO Box 69, FI Helsinki, Finland Phone: Customer service: Official mail: ISBN March 2008 / Lauri Karmila, Citron-Acid Graphics Oy / Avset Oy / Libris Oy

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