Innovation policy overview
Finland
Petri Peltonen
Innovation Department
Ministry of Employment and the Economy
…innovation is the means,
not the objective…
knowledge & know-how & creativity
innovations
productivity & renewal
competitiveness
employment
economic growth
well-being
…innovation is not only about R&D…
technological innovation
service innovation
business model innovation
social innovation
workplace (arbetslivs) innovation
…
Enterprise investments in Finland
of value-added * (%)
R&D
Tangible investments
*) jalostusarvosta
R&D investments in Finland
…before and after the crisis…
Billion euro
7
6
5
Enterprise R&D
Public R&D
Enterprise R&D:
• + 9 % 2007
4• + 4 % 2008
• - 2 % 2009
3• + 1-2% 2010
2
1
Total R&D investments
of GDP
• 3,5 % 2008
• 4,0 % 2009
Economic stimulus R&D
loans & grants:
• Tekes +13 M€ (Stimulus 08)
• Tekes +25 M€ (Stimulus 09)
• Tekes +50M€ (budget 2010)
0
91 93 95 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11
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Public R&D funding:
• + 3…4 % p.a. 2007-11
Source: Statistic Finland, RIC
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
The Finnish Funding Agency
for Basic Research
The Finnish Funding Agency
for Technology and Innovation
Universities
and other
research centers
Industries & Enterprises
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Other
ministries
The Finnish Innovation Fund
Finpro
Finnvera
Industry Investment
Regional
ELY-Centers
Finnish university reform
UNIVERSITIES 2020
UNIVERSITIES 2008
Rovaniemi
Univ. of Lapland
Univ. of Lapland
Oulu
Univ. of Oulu
Univ. of Oulu
Vaasa
Univ. of Vaasa
Tampere
Univ. of Tampere
Tampere Univ.
Technoloy
Turku
Univ. of Turku
Åbo Akademi Univ.
Turku School of
Economics and BA
Espoo
Helsinki
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2009 Univ. of
Technology
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(3 500)
Kuopio
Univ. of Kuopio
Univ. of Eastern
Finland
(11 000)
(JoY, KY: 10 300)
Joensuu
Univ. of Joensuu
Jyväskylä
Univ. of
Jyväskylä
Lappeenranta
Lappeenranta
Univ. of Tech
Helsinki
University of Helsinki
Helsinki School of Econ. and BA
Swedish School of Econ. and BA
Sibelius Academy
University of Arts and Design
Theatre Academy
Academy of Fine Arts
OPETUSMINISTERIÖ Koulutus- ja tiedepolitiikan osasto /Korkeakoulu- ja tiedeyksikkö
Univ. of Vaasa
(3 300)
University Alliance
(TaY, TTY, JY:
29 700)
Lappeenranta
Univ. of Tech
(3 600)
"New Univ. of Turku"
University of Helsinki
(TY, TuKKK: 13 000)
(25 700)
Åbo Akademi, SHH
Aalto University
( 6 000)
(TKK, HKKK, TaiK: 13 600)
University of Arts
(Teak, KuvA, SibA: 1 500)
O
Source:
Ministry of Education, 2009
PETUSMINISTERIÖ Koulutus- ja tiedepolitiikan osasto /Korkeakoulu- ja tiedeyksikkö
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
OSKE
(13)
National
R&D Programs
(Tekes & Academy)
(approx 40)
SHOK
EU FP7
•JTI, ETP, EIT
• Eureka
•ERANET, art. 169
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(6)
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
• 20-50 M€ per SHOK p.a.,
from private and public
funding sources
• Basis for stronger
international partnerships
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Energy and
environment
Health and wellbeing
ICT industry
and services
Tekes funding for energy and climate
technology
Million euros
DM
DM4438865
708172 03-2011
09-2010
Copyright © Tekes
Tekes R&D funding by sectors
Million euros
Construction is included in the industrial figures.
449162 01-2011
01-2009
DM 756052
Copyright © Tekes
…both PUSH and PULL….
Finland’s national innovation
strategy
Three dimensions of innovation promotion
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(science, technology)
Innovations
R&D
Businesses &
clusters
Users
Know-how
Know
Demand
UDI
New and
growing
firms
Public
services
UDI =
• Using
• Doing
• Interacting
“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 2011
2) Regulation, norms and standard for car manufacturers
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Case Kone Oyj
MANUFACTURING BUSINESS
SERVICE BUSINESS
PEOPLE FLOW BUSINESS
” KONE delivers a performance edge to its
customers by creating the best user experience
with innovative People Flow™ solutions ”
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…innovation policy
vs.
tax policy…
policy
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
Tax incentive for private VC investments ?
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