Innovation policy overview. Finland

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1 Innovation policy overview Finland Petri Peltonen Innovation Department Ministry of Employment and the Economy

2 innovation is the means, not the objective knowledge & know-how & creativity innovations productivity & renewal competitiveness employment economic growth well-being

3 innovation is not only about R&D technological innovation service innovation business model innovation social innovation workplace (arbetslivs) innovation

4 Enterprise investments in Finland of value-added * (%) R&D Tangible investments *) jalostusarvosta

5 R&D investments in Finland before and after the crisis Billion euro Enterprise R&D: + 9 % % % 2009 Enterprise R&D Public R&D % 2010 Total R&D investments of GDP 3,5 % ,0 % 2009 TEM / INNO 2009 TEM / INNO Economic stimulus R&D loans & grants: Tekes +13 M (Stimulus 08) Tekes +25 M (Stimulus 09) Tekes +50M (budget 2010) Public R&D funding: % p.a Source: Statistic Finland, RIC

6 Finnish innovation environment = public-private partnership Parliament of Finland Government Research and Innovation Council Ministry of Education and Culture Ministry of Employment and the Economy Other ministries The Finnish Funding Agency for Basic Research The Finnish Funding Agency for Technology and Innovation The Finnish Innovation Fund Universities and other research centers Finpro Finnvera Industry Investment Industries & Enterprises Regional ELY-Centers TEM / INNO 2009 TEM / INNO 2008

7 Finnish university reform UNIVERSITIES 2008 UNIVERSITIES 2020 Rovaniemi Univ. of Lapland Oulu Univ. of Oulu Vaasa Univ. of Vaasa TEM / INNO 2009 TEM / INNO 2008 OPETUSMINISTERIÖ Koulutus- ja tiedepolitiikan osasto /Korkeakoulu- ja tiedeyksikkö Kuopio Univ. of Kuopio Joensuu Univ. of Joensuu Tampere Univ. of Tampere Jyväskylä Tampere Univ. Univ. of Technoloy Jyväskylä Lappeenranta Lappeenranta Turku Univ. of Tech Univ. of Turku Helsinki Åbo Akademi Univ. University of Helsinki Turku School of Helsinki School of Econ. and BA Economics and BA Swedish School of Econ. and BA Sibelius Academy Espoo Helsinki Univ. of Technology University of Arts and Design Theatre Academy Academy of Fine Arts Univ. of Lapland (3 500) Univ. of Oulu (11 000) Univ. of Eastern Finland Univ. of Vaasa (3 300) University Alliance (TaY, TTY, JY: ) (JoY, KY: ) Lappeenranta Univ. of Tech (3 600) "New Univ. of Turku" University of Helsinki (TY, TuKKK: ) (25 700) Åbo Akademi, SHH Aalto University ( 6 000) (TKK, HKKK, TaiK: ) University of Arts (Teak, KuvA, SibA: 1 500) OPETUSMINISTERIÖ Koulutus- ja tiedepolitiikan osasto /Korkeakoulu- ja tiedeyksikkö Source: Ministry of Education, 2009

8 National R&D Programmes Platforms for national, EU and international co-operation SHOK = National Strategic Centers for Science, Technology & Innovation OSKE = Regional Centres of Expertise Programme TEM / INNO 2010 EU FP7 JTI, ETP, EIT Eureka ERANET, art. 169 OSKE (13) National R&D Programs (Tekes & Academy) (approx 40) SHOK (6)

9 Strategic Centres for Science, Technology and Innovation (SHOKs) Radical renewal Focus & Impact Visibility Forest Cluster Metal products and mechanical engineering Built environment Attractiveness Industry steered research plans and agendas M per SHOK p.a., from private and public funding sources Basis for stronger international partnerships TEM / INNO 2009 Energy and environment Health and wellbeing ICT industry and services TEM / INNO 2008

10 Tekes funding for energy and climate technology Million euros DM Copyright Tekes

11 Tekes R&D funding by sectors Million euros Construction is included in the industrial figures. DM Copyright Tekes

12 both PUSH and PULL. Finland s national innovation Finland s national innovation strategy

13 Three dimensions of innovation promotion Demand Users Innovations (science, technology) Know-how R&D UDI TEM / INNO 2009 TEM / INNO 2008 UDI = Using Doing Interacting Public services New and growing firms Businesses & clusters

14 Smart regulation Finland s green car tax reform 1) Influencing consumer behaviour CO2-based passenger car tax in 2008 CO2-based annual passenger car fee in 2010 CO2- and energy contents based fuel tax in ) Regulation, norms and standard for car manufacturers TEM / INNO 2009 TEM / INNO 2008

15 Case Kone Oyj MANUFACTURING BUSINESS SERVICE BUSINESS TEM / INNO 2011 PEOPLE FLOW BUSINESS KONE delivers a performance edge to its customers by creating the best user experience with innovative People Flow solutions TEM / INNO 2008

16 TEM / INNO 2011 TEM / INNO 2008

17 innovation policy vs. tax policy

18 Grants/loans vs. Tax incentives both and rather than either or R&D tax incentive + Market oriented Within the set regulations, firms decide the areas for support Low bureaucracy Avoids picking the winners + Fast and flexible + More predictable for firms + Low administrative cost + Transparent + Free, broad-based innovation - Less incentive for high-risk innovation - Less incentive for co-operation State s R&D grant/loan for companies + Can be focused to high-risk, highpotential projects + Rewards for active co-operation: industry-academia firm-firm, SME International + Can be focused e.g. on national areas of specialisation +/- Better control activities and budgets by authorities - Heavy admin burden - Less predictable for firms: picking the winners by authorities TEM / INNO 2010 Tax incentive for private VC investments?

19 / inno

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