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Finland’s Innovation Strategiesto support Economic GrowthAntti EskolaCommercial CounsellorEnterprise and Innovation DepartmentMinistry of Employment and the Economy

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The constantly changing global playfieldTransformation of firm strategies§ Off- and on-shoring of manufacturing industries and also R&D§ Shift from integrated manufacturing

system to globally distributed valuenetworks§ Increased importance of alliances and

partnerships§ Competition converges on services

instead of products§ Rapid development of the “emerging countries”§ Stagnation of Europe’s economic development

New Innovation Models§ From closed to open innovation§ Globally networked innovation processes§ Growing importance of service innovation

Pronounced role of users and customers forsuccessful innovation delivery§ Both technological and non-tech sources of innovation

Innovation Union Scoreboard 2014

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R&D funding in state budget 2012-14(approx. 2 billion euro in total p.a., 1,1%/GDP)

0 100 200 300 400 500 600 700

Universities

Tekes

Academy of Finland

Government research institutes

Other D&D

University central hospitals

201420132012

National R&D Programmes -Platforms for national, EU and international co-operation

EU HorizonProgramme for RDI

SHOK = National Strategic Centersfor Science, Technology &Innovation

INKA = Innovative CitiesProgramme

INKA (5) 2014-

NationalR&D Programs

(Tekes & Academy)(approx 30)

SHOK(6)

5

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© TEM / INNO 2009

Health and well-being

Energy andenvironment

ICT industryand services

Strategic Centres forScience, Technology and Innovation (SHOKs)

Bio ClusterMetal productsand mechanical

engineering

Builtenvironment

• Industry steered researchplans and agendas

• 10-40 M€ per SHOK p.a.,from private and publicfunding sources

• Basis for strongerinternational partnerships

• Radical renewal• Focus & Impact• Visibility• Attractiveness

...innovation isglocal...

• 14 universities

• 25 polytechnics

• 18 state research instututes (2012)

University (blue)Polytechnic (green)Research institute (red)

Finland’s university, polytechnic andresearch institute landscape

Battle: 97,3 % of the R&D performed in theworld is performed in the top 40 nations

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• Five regional innovation hubs• Vaasa, Oulu, Tampere, Jyvaskyla, Lahti

• Each with strong key theme• Future Health• Bio Economy• Sustainable Energy Solutions• Smart City & Industry Renewal• Cyber Security

• In partnership with Cities, State and Business• Regional development funds, national R&D funds,

company funding• Cities:

• Drive innovation and trials by public procurement• Invest in smart city planning and infrastructure

development

INKA - Innovative Cities programmeFinland’s 5 regional innovation hubs

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Innovation Mill projects gave rise to74 start-up companies in 3 years

• Innovation Mill projects commercialisebusiness ideas, patents and technologiescreated by large companies

• In three years, IM projects gave rise to74 start-up companies and 550 new jobs

• 3,5 M€ Tekes funding to initial IM feasibilitystudy projects

• 15 M€ Tekes R&D funding to IM basednew start-up companies

• Tekes IM financing has catalysed a 30 M€portfolio of development projects and15 M€ in venture capital investments instart-ups

Source: Evaluation of Innovation Mill and Idea circulation projects

...innovationis not only about

science and R&D...

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New andgrowing

firms

New andgrowing

firms

Publicservices

Businesses &clusters

Businesses &clusters

R&D UDI

Innovations

Users

Users

Kno

w-h

ow(s

cien

ce,t

echn

olog

y)K

now

-how

(sci

ence

,tec

hnol

ogy)

DemandDemand

UDI =• Using• Doing• Interacting

Three dimensions of innovation promotion

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© TEM / INNO 2011

Case Kone Oyj

PEOPLE FLOW BUSINESS

SERVICE BUSINESS

MANUFACTURING BUSINESS

” KONE delivers a performance edge to itscustomers by creating the best user experiencewith innovative People Flow™ solutions ”

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© TEM / INNO 2011

...open innovation, open source, crowd-innovation......digital value creation...

Free WillDuring the crowdsourcing project, which has been goingon almost two years, over 400 members from around theworld have taken part in creating the community opera

Focus on end-user: case Medical self-care

Success stories introduced on udi.fi:

Modz – a Finnish medical self-monitoringequipment manufacturer developed amore user-friendly blood sugar measuringdevice for children with diabetes.

MEE, Tekes, VTT and NationalConsumer Researach Centerlaunched a website (udi.fi) to provide aplatform for resources, discussion andpractical examples of user driveninnovation.

Spearhead strategies forgrowth

Cross-cutting spearhead areas of growth

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Innovation as Driver for Industrial Renewal

Industrial Growth Companies (SME and mid-size)

Exports and Foreign Investments

Cleantech Bio Economy Digitalisation

General conditions for business, entrepreneurship and investments:Funding markets, Infrastructure, Competition, Education, Taxation

Increase of industrial and export value-add

§ Joint strategy created andimplemented by 3 ministriestogether with Tekes andAcademy of Finland

• Min. Employment and theEconomy

• Min. Social Affairs and Health• Min. Education and Culture

§ For the first time the strategyexamines the health sector from theperspective of innovation andbusiness growth.

§ Ecosystem and value chain basedapproach

National Health Sector Growth Strategyfor Research and Innovation activities

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More information:http://www.tem.fi/files/40138/TEMrap_16_2014_web_09062014.pdf

Finland’s strengths

§ Very positive attitude of the population towards research§ Reliable and comprehensive registries and population

databases since the 1950’s§ Electronic patient records§ Existence of a legal framework for biobanking§ Strong ICT capabilities§ Relatively isolated gene pool§ Strong tradition of genetics research§ Active research in the field of personalized medicine

Strategy: Finland´s goals

Our goal is to be an internationally renowned forerunner§ in health sector research and innovation activities§ in investment and new business activitieswhile benefiting people’s health and welfare.

This means that Finland is:• The source and user of versatile and high quality scientific

research , inventions and innovations• A dynamic operating environment for new companies• A reliable partner for the international growth of companies• An attractive target country for health sector investment• A model country of sustainable health systems with

innovation activities

Creating a favourableenvironment for ecosystemgrowth

Funding ofR&D&I

activities

Marketing:Invest in& Export

Demanddriven

innovation

ResearchInfrastructures

Networksacross theindustries,research, publicand private

Policyand regulation

Competences

GROWTHAND

RENEWAL

To put it simply, we are working on…

5/13/2015Name Surname 23

1. Regional innovation ecosystems.2. Knowledge and skills spearheads.3. Greater R&D concentrations.4. Commercializing research results.5. New financing instruments.6. More risk capital.7. R&I agencies’ strategies.8. Genome strategy and action plan.9. Influencing EU policies.10.Innovation-friendly regulation.11.Counseling activities for proactive control of R&I activities.12.Attracting foreign direct investment.13.Establishing Team Finland Health network.

Patient dataPatient data

Business opportunities in digital health

EnvironmentaldataEnvironmentaldata

Health dataHealth dataLifestyle dataLifestyle data

Genetic dataGenetic data

Early detectionof diseases

Wellbeing services

Health promotionHealth promotionSelf-monitoring and careSelf-monitoring and care

Diagnostics industry

Personalisedhealthcare

Personalisedhealthcare

Pharma industry

Social media Gameindustry

Software industry

BioITindustry

Big data

BiobanksRemote care

Clinical decisionsupport

Population healthmanagement

Global digital health market EUR 47 bn in 2018

Sensors

DM 1381236

Recipes to improve productivity and to acceleratestructural renewal of the Finnish economy

1. Foster open competition2. Create markets for new innovations by developing public procurement practices

and by smart standards and (de)regulation

3. Encourage workforce mobility to change jobs and move around in Finland & abroad4. Cut subsidies that merely maintain traditional businesses and increase risk sharing

funding for the most promising high risk innovation projects5. Continue developing and strengthening venture and growth funding markets,

especially for seed phase and international growth6. Reform SHOKs by stronger inter-SHOK ”co-petition” and international co-op

7. Re-allocate funding for academic research according to relevance and createefficiently organized reasearch units

8. Strong national focus on Cleantech, Bioeconomy and Digitalisation9. Increase emphasis on internationally networked R&D, and Export&FDI promotion10. Promote foresight to keep track of global change drivers and new markets

Thank you!antti.eskola@tem.fi