Post on 23-Mar-2020
Finnish innovation policy
and the role of Tekes -Some trends and challenges
Christopher Palmberg, Ph.D.
Programme Development Manager/Tekes
02-2014 DM
Structure
1. Recent developments in the Finnish economy
2. How is innovation policy adjusting?
3. The changing role of Tekes and some challenges
4. Towards innovation policy 2.0
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1. Recent developments in the
Finnish Economy
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• Industrial
restructuring in
Finland among
the most
dramatic in the
EU
• During 2000-
2012 GDP
declined by
10,3% points
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• Finnish
public debt is
approaching
60% record
level
R&D expenditures are declining especially in companies
3,35
3,55
3,75 3,73
3,64
3,43
3,32
3,13
2,8
2,9
3,0
3,1
3,2
3,3
3,4
3,5
3,6
3,7
3,8
2007 2008 2009 2010 2011 2012 2013 2014*
%
Finland is among the most R&D
intensive countries, but the R&D
share of GDP is declining
Lähde: Tilastokeskus, * ennakkotieto
4,5 5,1 4,8 4,9 5 4,7 4,6 4,3
0,6
0,6 0,7 0,7 0,7
0,7 0,6 0,6
1,2
1,2 1,3 1,4 1,4 1,5
1,4 1,4
0,0
1,0
2,0
3,0
4,0
5,0
6,0
7,0
8,0
2007 2008 2009 2010 2011 2012 2013 2014*
Billion €
Yritykset Julkinen sektori Korkeakoulusektori
R&D expenditures by sector 2007-2014* R&D expenditures as a share of GDP
Companies Public sector Universities
Finnish innovation performance has declined
compared with the leaders
Source: EC; Innovation Union Scoreboard 2015
Performance of innovation leader countries
Declining impact of Nokia but also new opportunities!
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2. How is innovation policy adjusting?
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Public sector actors of R&D and
innovation in Finland
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PARLIAMENT
Academy of
Finland
Universities
Ministry of
Employment
and the Economy
VTT
Tekes
Other ministries
and their
institutes
Finnvera plc,
Finpro, Sitra,
Finnish Industry
Investment Ltd
Regional ELY Centres
GOVERNMENT Research
and Innovation
Council
Ministry of
Education and
Culture
Ministry of
Education and
Culture
Finnvera
Academy of Finland
Tekes
Finnish Industry Investment
Sitra
Public funding actors in the Finnish
innovation environment
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Basic research Applied research Business R&D Business development Marketing Internationalisation
Finpro
Regional ELY Centres
Radical
innovations
Incremental
innovations
Joint Programmes
Strategic
longterm
collaboration Basic research
Tekes
project
funding
Tax incentives,
ELY-center’s
development
subsidy
Sitra
Tekes
program
mes
SHOK
Strategic
research
openings
Academy
of Finland
Universities
and research
institutes
Main Finnish innovation policy instruments
INKA
Company-
and
research-
projects Demonstrations,
Piloting
Recent trends in Finnish innovation policy
• Towards broad-based policies
• User- and demand driven innovation
• Intangibility
• Towards system-level and ecosystem
promotion
• Bioeconomy, ICT, healthcare
• Cities as platforms
• From direct towards indirect RDI
support
• R&D tax incentive experiment
• Cutbacks in Tekes, increasing emphasis on
loans
• New funding instrument for strategic research
• Re-invention of industrial policy,
towards innovation policy2.0…
• Ecosystems, experimentation etc.
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0
100
200
300
400
500
600
700
Public RDI by sectors, Million €
Yliopistot
YliopistollisetkeskussairaalatSuomenAkatemia
Tekes
ValtiontutkimuslaitoksetMuu rahoitus
3. The changing role of Tekes and
some challenges
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We offer funding, expertise and networks
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Start-ups
Growth companies
Large companies
Universities
Research institutes
Providers of public services
Cities
Hospital districts
The Tekes journey
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1983 2000 2015
Technology
Business
Services
Healthcare
social services
Working life
Feelings
Fast experiments Industries
EU
Tekes RDI funding in 2014*
01-
2014
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R&D Funding includes €2 million from the EU Structural Funds.
60%
*Further cutbacks up to 138 Meuro have been announced by the new gvmt. from 2016
Natural resources and
sustainable economy
Arctic Seas
2013–2017
BEAM – Business with Impact
2015– 2019
Green Growth –
Towards a Sustainable Future
2011–2015
Green Mining
2011–2016
Groove – Growth from
Fenewables 2010–2014
Tekes programmes
Vitality of People
BioIT – 2012–2014
Bits of Health 2014–2018
Innovations in Social
and Healthcare services
2008–2015
Learning Solutions
2011–2015
Skene – Games Refueled
2012–2015
Intelligent environments
5thGear 2014–2019
EVE – Electric Vehicle
Systems 2011–2015
Feelings – Intangible Value
Creation and Experienced
Value 2012–2018
Innovative Cities
2014– 2020
Industrial Internet –
Business Revolution
2014–2019
Witty City 2013–2017
Smart Procurement
2013–2016
Built Environment
2009–2014
Trial – Environment for
Cognitive Radio and Systems
2011–2014
Working life
Liideri – Business,
Productivity and Joy at Work
2012–2018
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BEAM is a joint innovation programme between
Tekes and Ministry of Foreign Affairs (MFA)
Vision: Finnish companies and other actors are part of global
ecosystems that create economic, environmental and
societal impacts both in Finland and developing countries
Mission: BEAM helps Finnish companies build succesful and
sustainable businesses in Finland and developing countries
through inclusive frugal nnovations for societal
challenges
Targets: SMEs and their Finnish and global partners (including NGOs) which aim to develop inclusive frugal innovations in
various sectors for Sub-Saharan Africa, Latin American, South
and Central Asian markets
Duration and funding: for 2015-19 with total funding of 50 Meuro
(50% public, 50% private sources), funding will cover grants and loans, challenge
competitions and an impact fund as possible program services
United States Washington, D.C.
Palo Alto
India China Beijing
Shanghai
Hong Kong
EU Brussels
Tekes as a part of Team Finland network
2015–2017
Japan
Tokyo
Taiwan
Taipei
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Germany
Russia Moscow
There are also opportunities…
• Start-up boom and SLUSH
• Demise of Nokia – rise of new ICT entrepreneurship
• Intangible value creation
• Cleantech-Bioeconomy-circular economy
• Digitalisation for new services and efficiency - 5G, IoT, biodigi etc.
- ’NMT2.0’ a possibility e.g. in smart city, healthacare, education?
• Global challenges – global opportunities
• …
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4. Towards innovation policy 2.0
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Academy
of Finland VTT
Finnvera Tekes
Sitra
Strengthen the
renewal of
Finland’s
industry and
economy
Joint direction – Joint goal: Renewal of Finland’s industry and economy
Finpro
Focus areas of joint strategy
Market access
New business
ecosystems
Wellbeing and health
Digitalisation
Natural resources and resource efficiency
Intangibility and
value creation
Tekes as an active and visible playmaker in selected fields
Bioeconomy
Digitalisation renewing business and industry
Cleantech
Changing nature of competition
• Industries (1980s) • Comparative advantage and specialization
• Clusters (1990s) • ’The Porterian diamond’
• Value chains and networks (2000s) • Vertical integration – outsourcing, strategic alliances
• Ecosystems (2010s…) • Joint value creation, platforms, orchestration, PPPs
Role of the state – towards an entrepreneurial state…
Please check TED talk for a quick glance: http://www.ted.com/talks/mariana_mazzucato_government_investor_risk_taker_innovator
Towards ecosystem policy – old wine in new bottles or something different?
’Traditional’ sectoral – cluster
policy
’New’ business (eco)system based
policy
Rationale Economies of scale, market failures Spillovers, coordination-challenges,
system-level and transition failures
Ideation Reactivness, identification of growth
industries, independant visions and
strategies
Proactiveness, identification of new
operation modes, joint visions and
strategies
Instruments Funding, sectoral approaches, general
development of overall innovation
environment
Facilitation, PPPs, cross-sectoral,
context specific and tailored approaches
Implementation Steering, siloed, narrower policy mix,
company specific, national
Orchestration, experimentation, broad-
based, network-ecosystem specific,
international
Impact
monitoring
Success of companies and sectors,
ex-post evaluations
Success of companies and ecosystems,
ex-ante + ex-post evaluation
Risks Compromises with all stakeholders,
lack of dynamism, path-dependency,
avoidance of experimentation
Clashes with some stakehodlers, chaos,
public sector domination, discontinuing
good projects
Summing-up
1. The Finnish economy is in dire straits, geopolitical
situation is also challenging
2. Finnish innovation policy is adjusting through cut-
backs but also new innovative openings (’innovation
policy 2.0’)
3. Tekes is undergoing large changes: focus on SMEs,
intangible value creation and (eco)systematic
innovations
4. A new strategy is being developed that hopefully will
lead to system-smarter policies
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