Country report: Finland

Transcription

1 Country report: Finland Introduction This report has been written as a part of the Europe INNOVA Cluster Mapping Project. One part of the project is a mapping of cluster policies, cluster institutions and cluster programmes in European Countries. For each country, a separate report has been written. Oxford Research AS in Norway has been responsible for the mapping of cluster policies. Oxford Research has developed the structure of the mapping and prepared the final reports. Most of the work has however been done by research institutes or consultancies in the different countries. These organisations are members of The European Network for Social and Economic Research ENSR or partners in the Europe INNOVA Cluster Mapping Project. Based on the national reports, the main findings have been summarised by Oxford Research in a separate report. The Europe INNOVA Cluster Mapping Project has been financed by the European Commission. The views expressed in this report, as well as the information included in it, do however not necessarily reflect the opinion or position of the European Commission and in no way commits the institution. Kristiansand, Norway, December Harald Furre Managing director Oxford Research AS Please find more information about the Cluster Mapping Project and the Authors of this report on: Forfatter: HF Sist lagret: :38:00 Sist utskrevet: :25:00 O:\Aktive prosjekter\54 EU cluster mapping\country reports\country reports copy\finland.doc Versjon: 23 Antall sider: 41

2 Report written by: Satu Aaltonen, SE Entre, Turku School of Economics, Finland. Main ministries responsible for implementing cluster policy Key agencies responsible for implementing cluster policy Are there any national cluster programmes? Are there any regional cluster programmes? Finance/ Economy Science/ Research Trade/ Industry Interior Other x x x The National Technology Agency (TEKES), The Science and Technology Policy Council (STPC), The Finnish Innovation Fund (SITRA), Academy of Finland, National Research and Development Centre for Welfare and Health (STAKES), etc. Is cluster Yes No x policy their only task? Yes x No Number of 2 programmes Yes No x Source of financing National programmes Regional programmes National ministries X EU structural fund X Regional budget X Business X Other X Importance of cluster policy Low Medium High National level Regional level Policy papers on national level Yes No Cluster policy over time Increased importance Reduced importance Shifted Since when has cluster policy been used? Cluster development related to a particular person/organization? x Yes No x Individual Business org. Political party Agency Research inst. Successful cluster programmes The Centre of Expertice for Software Product Business , TEKES, Technology Programme, Infra-Construction and Services Is there a cluster or competitive council? Degree of obstacles when building cluster policy Yes No A general council exists No/Low Medium Important General assessments of competitiveness? Yes No Role of clusters as framework in policy areas Low Medium High Business network policy x FDI attraction policy x x 2

3 Export promotion policy Sectoral industry policy Science and education policy Competition and marked integration Source: Oxford Research x x x x 1. Terminology In each country there will be one or possibly several terms or phrases used to describe clusters. In some cases, different terms represent competing perspectives on clusters and, as perspectives change over time, one term may gradually replace another. Some terms used to describe clusters in Finland are for instance: osaamiskeskus, osaamiskeskittymä, klusteri, osaamisklusteri, tietämyskeskus, alueellinen innovaatiopolitiikka, toimialaklusteri, teollinen klusteri. In English: Centre of Expertise, Cluster, Cluster of Expertise, Regional Innovation Policy. In Finland, the term cluster / klusteri is used in Finnish language mostly in the same vein as in English. However, it is not always clear, whether klusteri is a synonym for a sector of an industry and its services in an undefined geographic area (e.g. the whole Finland) or for a cluster which constitutes of organisations, which are part of the same value chain or network in a limited geographical area (region). The terms teollinen klusteri / industrial cluster and toimialaklusteri / sectoral cluster are also used (Virtanen & Hernesniemi 2005). The Centres of Expertise (CoE) Program uses the term Competence Cluster in its new program season to mean a nationally important network of local Centres of Expertise. For the regional clusters the term osaamiskeskus / centre of expertise is used. E.g. the Competence Cluster in renewed CoE Programme is formed from businesses and public corporations bonded with each other, whose interplay produces clearly demonstrable benefits. The most important element in the cluster is network cooperation. The Competence Cluster is formed from at least two centres of expertise situated in different regions, having complementary fields of expertise which can be defined on the basis of branch, technology, expertise or application. Clusters, however, should not comprise entire branches of industry, but rather top-level expertise sub-areas of more functional clusters, or promising new sub-areas with development potential, with whose help centres can together develop the competitiveness and business activity of the whole cluster. In addition to technology-intensive fields, clus- 3

4 ters may include other fields of expertise, for example, service industries or so-called creative industries. Four to seven centres of expertise make up the cluster structure, in which there is a separately specified coordinator. The coordinator is placed in one of the centres in the cluster and is responsible for mutually agreed tasks on a contractual basis. The national coordinator of cluster is financed by Ministry of Trade and Industry while Ministry of Interior still, as in previous programming phases ( ), co-finance (50 %) regional Centres of Expertise. In recent years the term of innovation policy has become sort of chant in Finnish science policy. Along with that, the use of term alueellinen innovaatiopolitiikka / regional innovation policy became more widespread in the 2000 s. This term reflects the new regional orientation of Finnish innovation policy, which becomes manifested e.g. in the Centres of Expertise Programme and the trends of Finnish higher education policy in early 2000 s (Schienstock & Hämäläinen 2001). Whether regional innovation policy can be used as a synonym for the cluster policy, is however questionable. The same applies to the new programme called Strategic Centres for Science, Technology and Innovation (CSTI) by the National Technology Agency (TEKES) and the Academy of Finland. The programme has been started in the autumn of 2006 (Tekes 2007). The term used for cluster in that program is strategic centre. Source: Schienstock G. & Hämäläinen T. (2001) Transformation of the Finnish innovation system. A network approach. Sitra Reports series 7. Helsinki, Sitra. Tekes (2007) read in 20 th March, Virtanen E. & Hernesniemi H.(2005) Klusterin evoluutio. Prosessikuvaus. [Evolution of a Cluster. Process Description.] Teknologiakatsaus 174/2005. Helsinki, Tekes. In read in 20th March, Cluster development programmes and cluster organisations In many countries, there are programmes set up specifically to promote cluster development. Such programmes can be carried out by existing actors (for example a government agency), or new actors can be set up to run them. Often, one of the purposes of such programmes is to help initiate cluster organisations, that is, the programme provides financing or otherwise promotes the formation of cluster- 4

5 specific organisations, typically in some form of public-private partnership. A country can have many (even hundreds) of such cluster-level organisations in operation. The main actors in designing and implementing Finnish cluster policy are The Parliament, the Cabinet, the Science and Technology Policy Council (STPC), the ministries, the Academy of Finland, the National Technology Agency (TEKES), sector specific research and development institutes and the Finnish Innovation Fund (SI- TRA). These actors set the grand lines of Finnish cluster policy, but e.g. in the CoE Programme the National Committee of the CoE Programme has the most important role in the policy setting of the programme. The ministries, STPC, TEKES etc. forward their goals through their representatives in the Committee. The Parliament and the Cabinet have the ability to create the framework in which the cluster policy may be executed. Those bodies have the legislative power and they also define annually, which amount of the state budget may be used in science and technology policy, and how the ministry budgets are supposed to be allocated. The Science and Technology Policy Council was created in 1987 to continue the work of the Science Policy Council, which was originally founded in It is the highest-level policy and coordinating body in its field. The Council is appointed for three-year terms by the Government. The Prime Minister of Finland chairs the board of the council. Other members of the Council are the Minister of Trade and Industry, the Minister of Education, the Minister of Finance, four other ministers and 10 representatives from the Academy of Finland, the Finnish Funding Agency for Technology and Innovation, the universities, business and industry, and employees. The Government appoints the non-ministerial members for the term of the Parliament. The main tasks of the Council include strategic development and coordination of Finnish science and technology policy as well as of the national innovation system as a whole. It directs and coordinates the science and technology policy, issues statements on the allocation of public science and technology funds to the various ministries and fields. Every three years it publishes a report defining the guidelines of the Finnish science, technology and innovation policy. Of the ministries, the Ministry of Trade and Industry, the Ministry of Education and the Ministry of Interior have the most influence on the cluster policy formulation and implementation in Finland. The Ministry of Trade and Industry steers Finnish 5

6 technology policy and provides support for industrial research and development. The main instrument for the execution of this policy is TEKES, which is supervised by the Ministry of Trade and Industry. Approximately 30% of the public research budget is channelled through TEKES, equalling about 400 million euros. TEKES acts also as a catalyst for private R&D funding, since the involvement in the TEKES projects necessitates own financial involvement of the companies. The cluster policy is also implemented through regional Employment and Economic Development Centres (TE-centres). Which provide several financial and consultancy services for companies and farmers of their area of operation. The services provided are from three different administrative sectors, namely the Ministry of Trade and Industry, the Ministry of Labour, and the Ministry of Agriculture and Forestry. There are 15 TE-centres in Finland. They were established in The Ministry of Education is responsible for the Finnish education system and also the basic research conducted in the institutions of higher learning and research institutions. The main instrument for the execution of this policy is the Academy of Finland, which is supervised by the Ministry of Education. The Academy of Finland is the most important funding agency for basic research. Approximately 15 per cent of all Government research funding is channelled through Academy, equalling about 260 million euros. The Ministry of Interior has the main responsibility in developing Finnish regional policy and acting as a mediator between EU s regional measures (Structural Funds) and Finnish regions. The Regional Development Act (602/2002) sets the guidelines, goals and division of responsibilities in implementing the regional development policy. The national special programmes, which are pursuing these goals are the Regional Centre Programme, Rural Policy Programme, Centre of Expertise Programme and the Island Development Programme, of which the Centre of Expertise Programme aims most distinctively at developing regional industry clusters. Also other ministries implement the policy that can be called cluster policy. However, their policy focus can be regarded more sector specific and the regional and networking aspect is often in a more minor role. But in case the cluster policy is defined that way that it includes national industry specific development activities, the Ministry of Social Affairs and Health, the Ministry of Agriculture and Forestry and the Ministry of Transport and Communications among others, act to improve the 6

7 operational preconditions of both the private companies and the public organisations in their field. There are also a number of sector specific research and development institutes in Finland that contribute to the cluster development in this broader sense. Altogether there are 21 of them, the largest of them being Technical Research Centre of Finland (VTT), National Research and Development Centre for Welfare and Health (STAKES) and Agricultural Research Centre of Finland. National Research and Development Centre for Welfare and Health (STAKES) has a network of regional centres of excellence on social work since 2002, which include 8 regional centres. They aim at developing the cooperation and sharing of knowledge between the municipalities, the universities, the polytechnics and the third-sector social work organisations. The network seems to lack the perspective of entrepreneurship; therefore it is not described here in more detail. The Finnish Innovation Fund (SITRA) is an independent public fund, which under the supervision of the Finnish Parliament, promotes the welfare of Finnish society. SITRA was founded in The Fund is pursuing equally both the economic growth and the well-being of Finnish citizens. Since 2006 there has been five programme areas: health care, food and nutrition, environment, Russia, and India. Through its projects SITRA strengthens the competitiveness of fields of industry chosen by it, like health care and environmental technology in this case. The methods of promoting their goals include research funding, experimental projects, business development and funding services, venture-capital investments and national strategy building activities. Source: Ahlbäck J. (2005) The Finnish National Innovation System. ERRIN European Regions Research and Innovation Network. Helsinki, University Press. European Region Research and Innovation Network (2007) in read in 20 th March, European Trent Chart on Innovation (2006). Annual Innovation Policy Trends and Appraisal Report. Finland. A publication from the Innovation/SMEs Programme in read in 20 th March, Finnish Science and Technology Information Service in read in 20 th March. 7

8 Ministry of Education (2007). The Science and Technology Policy Council of Finland. In _ja_teknologianeuvosto/?lang=en, read in 20 th March, Ministry of the Interior (2007) in read in 20 th March, Regional Development Act (602/2002). Unofficial translation in read in 20 th March, SITRA (2007) in read in 20 th March, STAKES (2007) Sosiaalialan osaamiskeskukset (Regional Centres of Expertise on Social Work) in read in 20 th March, 2007.VNS 3/2000vp. Valtioneuvoston selonteko aluehallinto uudistuksen toteutumisesta [Council of State s Report on Implementation of the Local administration 2000 reform] C46FE, read in 20 th March, Agencies for cluster policy implementation In Finland there are 19 Regional Councils. Those are South Karelia, South Ostrobothnia, Etelä-Savo, Häme, Itä-Uusimaa, Joint authority of Kainuu Region, Central Ostrobothnia, Central Finland, Kymenlaakso, Lapland, Tampere Region, Ostrobothnia, North Karelia, Nothern Ostrobothnia, Northern Savo, Päijät-Häme, Satakunta, Uusimaa and South-West Finland. Councils are at the regional level main responsible of administration of special programmes (e.g. CoE Programme) and ERDF (European Regional Development Fund). The Regional Councils are statutory joint municipal authorities. They operate as regional development and regional planning authorities and are thus the units in charge of regional planning and looking after regional interests. The operation of Regional Councils is based on the Regional Development Act. Their task is to draw up regional development programmes and reconcile them with the regional development measures of the regional administration authorities, to present objectives for the development of regional infra-structure, to develop the framework for business activity to generate new enterprises and new jobs within the region, to reinforce the regional economy in every possible way and to improve the occupational skills of the population. The Councils act together with the local government, the State and the businesses and organisation in the region. The Regional 8

9 Councils are also responsible for the land use planning at the regional level. The Regional Councils are mainly financed by the member municipalities. In addition to this the councils receive an annual grant of about 12 Meur primarily for the independent regional development of the business community, the so called regional development grant in the state budget. The organisation of the councils is tripartite. The highest decision making body is the assembly. The assembly is consisted of the representatives of the member municipalities. The Assembly normally convenes twice a year. The executive and administrative body of the Regional Council is the Board. The Boards convene at least once a month. The Office of the Regional Council assists the Board in its administrative tasks. The office is headed by a Regional Manager. The total number of the staff is approximately 600 the biggest office having around 70 employees and the smallest 10. Source: Finnish Regional Councils (2007) in read in 20 th March, National cluster programmes Programme name: Finnish Centre of Expertise (CoE) Program Financing: Council of State, through the Ministry of Interior and Finnish Regional Councils, and since 2007 also the Ministry of Trade and Industry. Source of programme financing: In the programme period the financing structure of projects was: enterprises 22%, Tekes (Finnish Funding Agency for Technology and Innovation)14%, EU s Structural Fund Programmes 14%, EU s framework pro grams for research 5%, municipalities 13%, Employment and Economic Development Centres (TE-Centres) 8% and the Council of State 6%, Ministry of Education 4% and other sources 14%. The financing comes also partly 9

10 from ministries (Ministry of Interior, Ministry of Trade and Industry, Ministry of Education, Ministry of Labour, Ministry of Social Affairs and Health, Ministry of Agriculture and Forestry). (Kanninen et al. 2007, Tekel 2007a.) Budget: The Council of State allocates around 11 Meur (2007) annually for the programme: 8,7 Meur for Centres of Expertise by Ministry of the Interior and 2,6 Meur for Cluster Coordination by Ministry of Trade and Industry. Because the funding of Centres of Expertise is a type of co-financed (50%), the total annual budget for basic funding of 21 Centres of Expertise is about 16 Meur. During the total volume of the projects run in the programme was 578 Meur. Thus, only around 10% of the total budget comes from the Council of State and the rest from other sources. In the programme period % of the total funding was tendered R&D money. (Kanninen et al ) Time horizon: Originally initiated in 1991, the first programme period , the second period (first part , the second part ) and the third season Actor/Programme initiator: Administrator of the regional policy of the Ministry of the Interior Mr. Anssi Paasivirta suggested launching the Centre of Expertise Programme in 1991 (Kanninen et al. 2007, Lemola 2006). Finnish Parliament passed a law in 1993, the Regional Development Act (Act no.1135/1993), which enabled the establishing of the CoE Programme in The Ministry of the Interior had the administrative authority of the programme. Carried out by: Carried out by regional Centres of Expertise. In 1994 there were 8 10

11 regional CoEs and 21 fields of expertise, and 25 respectively, the number of CoEs was 16 and fields of expertise 35, and after 2003 until the end of the second programme season in 2006 there were 18 regional Centres of Expertise and 4 national networked Centres of Expertise in 45 fields of excellence. The third programme seasons starts this year with 21 CoE, which constitute 13 Competence Clusters. The Government has nominated 13 nationally remarkable Competence Clusters which are carried out by 21 Centres of Expertise in The Clusters are: HealthBio Cluster Well-Being Cluster Food Development Cluster Future Energy Technologies Ubiquitous Computing Digital Content Tourism and Experience Industry Nanotechnology, Microsystems and Future Materials Maritime Cluster Intelligent Machines Forest Industry Future Housing Cluster Environmental Technology Cluster. Actor formed for this purpose: Usually the CoEs are situated in local technology centres or science parks. These organisations operate mainly as non profit bases. The science parks were established in the 90 s to act as mediators and coordinators of co-operation between local universities and companies (Neuvo 2006). Today there are 24 science parks in Finland, which provide e.g. premises, incubator, education and consulting services. (Tekel 2007b.) The actors (CoEs) don t have other tasks apart from this programme. However, the technology centres and science parks, which host the programs, have also other tasks. They provide e.g. incubator, education and consulting services, likewise owning and leasing of offices. 11

12 Organisational set up at programme and project level: The National Committee for the Centre of Expertise Programme monitors and coordinates the activities in different regions. In the committee there are representatives from the Ministry of Labour, the Ministry of Education, the Ministry of Trade and Industry, the Ministry of Agriculture and Forestry and the Ministry of Social Affairs and Health in addition to the representatives of the Ministry of Interior. It has also members from the fields of economy, research and education as well as professionals working in regional and local administration. Altogether the committee has 20 members and three permanent experts. The composition of the committee mirrors the basic ideology of the programme (the triple-helix model) to create the platforms for the cooperation between economy (companies), science (organisations of higher education and research) and administration (the ministries and regional actors). In the programme season there are two Secretary Generals one from the Ministry of Trade and Industry, senior advisor Pirjo Kutinlahti, and the other from the Ministry of Interior, ministerial advisor Mika Pikkarainen. Mostly the Centres of Expertise are situated in regional science parks. The umbrella organisation of them, the Finnish Science Park Association (TEKEL), is responsible for the national development project, the objective of which is to promote the cooperation between different actors around the operations of the centres of expertise and to increase cooperation between different centres of expertise. In last programme period ( ) the most innovative project of the year was annually nominated among Centres of Expertise. This nomination enabled the committee to pay attention to nationally important issues. On the regional level the Centres of Expertise can be regarded to constitute from the network of different regional actors (partner organisations, companies and the administrative bodies). The group of people who are responsible for the administrative duties, the staff of CoE is usually quite small. In addition to the science parks the administrative organisation can be also university, polytechnic or a non profit company, which is established specially for this purpose. There is usually also a local steering group and an expert body supporting the activities. In the year 2000 there were 463 members in executive groups and advisory boards, 700 members in expert bodies and 2172 companies and other organisa- 12

13 tion (in total during ) taking part in CoE activities. (Osaamiskeskukset 2001.) In the season there were 5100 companies annually taking part in the CoE activities (Kanninen et al 2007). The Competence Clusters in renewed CoE Programme are formed from businesses and public corporations bonded with each other, whose interplay produces clearly demonstrable benefits. The most important element in the cluster is network cooperation. The Competence Cluster is formed from at least two centres of expertise situated in different regions, having complementary fields of expertise which can be defined on the basis of branch, technology, expertise or application. Clusters, however, should not comprise entire branches of industry, but rather top-level expertise sub-areas of more functional clusters, or promising new subareas with development potential, with whose help centres can together develop the competitiveness and business activity of the whole cluster. In addition to technology-intensive fields, clusters may include other fields of expertise, for example, service industries or so-called creative industries. Four to seven centres of expertise make up the cluster structure, in which there is a separately specified coordinator. The tasks of the coordinators are to conduct joint operative activities and projects, and networking both nationally and internationally. The coordination assures that the local and national activities are parallel and in interaction. It also increases the cooperation between industry and research organizations. The coordinator is placed in one of the centres in the cluster and is responsible for mutually agreed tasks on a contractual basis. The national coordinator of cluster is financed by Ministry of Trade and Industry while Ministry of Interior still, as in previous programming phases ( ), co-finance (50 %) regional Centres of Expertise. Scope and target: Geographic coverage: The whole Finland through the regional centres and the network activities of those centres. Policy focus (please see the table at p. 17 from the OECD report in the end of this document and relate your comments to this) 13

14 The policy focus of the CoE programme is simultaneously on regional, educational and technology policy. The aim is to recognise nationally and preferably also internationally competitive sectors of industry which have the potential to evolve into internationally recognised clusters of top-level expertise. The programme aims for creating new products, services, companies and jobs related to this top-level expertise. That way the cluster could then stimulate the whole economy of the region. The top-level expertise is mostly synonym to the hightech expertise. However, the CoEs have also been chosen from non-high-tech clusters, such as tourism and culture. The economy based on top-level expertise is pursued by bringing local actors, such as the universities, businesses, regional developers, business financiers and venture capital investors together and creating the structures of cooperation and knowledge transfer. Programme is activating specially the research and development operations of small and medium-sized companies and also the collaboration between large multinational companies and SMEs in their fields of expertise. On the national level it is regarded important to support both the specialisation and cooperation between different regions. However, in spite of the indisputable emphasis on regional development, the lagging regions are not favoured. In fact, the goal of creating top-level expertise based entrepreneurship naturally favours the large university towns and their top-expertise. Cluster lifecycle targeted: The measures are targeted in the clusters both in the embryonic and emerging stage e.g. bio or ICT, and also in the more mature e.g. steel or wood clusters. The programme is not aiming for recovering already declineing clusters, but rather for finding new solutions for those areas which have been dependent on the declining industries. Programme contents: Short description: The centres of expertise launch cooperation projects (public-private) between the research sector, educational institutions and industry. These projects boost the competitiveness of companies, strengthen and improve regional expertise, create new 14

15 businesses and promote the creation of new innovation environments. Activities: The programme is designed to pool local, regional and national resources to the Exploitation of top-level expertise. The programme supports regional strengths and specialisation and furthers cooperation between the centres of expertise. Ambitions/goals: The aims of the programme are specified in the numbers of new knowledge intensive jobs, maintained jobs, new knowledge intensive businesses, new innovations and trainings. Also the quantity of nationally and internationally tendered funding is regarded as an indicator of success. Target group: The programme is targeted to increase innovativeness and economic growth based on the high scientific know-how. Knowledge transfer in cooperative projects (between SMEs, large companies and research community), trainings and spin-offs (based of innovations made in the research community) are tools for that. Thus, the target group is virtually the whole business, research and education sector. However, in practise the focus is rather on SMEs and embryonic and emerging businesses than large and well-established ones. Level of R&D involvement: In the Programme season the CoEs were able to get and utilise 113 million euros of tendered R&D funding. That is approximately 1/5 of the whole volume of the projects. There was a significant variation in the share of tendered R&D funds within the CoEs - the largest being Oulu Region Centre of Expertise with 32 million euros and the smallest being Mikkeli Region Centre of Expertise without any. The number of new innovations products, services and procedures was in the Programme season Programme offers: Individual Centres of Expertise and their stakeholders are responsible for designing 15

16 the development measures they wish to use (so called bottom-up approach). What the national level offers, is the long term basic funding (see above), national guidance and ongoing evaluation, and a shared project data-base, which is used in monitoring the actions taken at regional level. At the level of CoEs training and project planning services are provided. Most of the science parks offer also incubator programmes, consultancy and financial guidance. Cross-country/interregional activity: The new programme season is emphasising the co-operation between centres of expertise more than the earlier seasons. This will be realised by introducing a new meaning for the word Competence Cluster. In the new programme season the term cluster is used to mean a nationally important network of local Centres of Expertise. Every cluster has a coordinator, which is responsible for coordinating the activities of CoEs, creating a platform for cooperation between the CoEs and outside organisations and other clusters as well as other national and international actors of innovation policy. The coordinator also helps to set the shared aims, contents and activities within the cluster. Process: There were two phases in the application process of the new programme period The preliminary phase concentrated for the cluster ideas. The most innovative and value added clusters for the continued consideration were chosen. In the second phase the clusters and the centres of expertise for those clusters are chosen. The process is based on submission of proposals. The applications were evaluated and ranked by the National Committee for the Centre of Expertise Programme. The final decision of the chosen CoEs and Competence Clusters were made by the Council of State based on the report by the Ministry of the Interior and the Ministry of Trade and Industry. Selection of clusters to support: The both sides are included in selection process. The application process is more bottom-up type than top down. Regional actors together with companies create and design the applications. In the selection process the goals of national innovation policy and connections to other regional development activities play naturally 16

17 an important role. Main elements in applications if that is used: The applications need to convince the choosers on clear operational focus and the cooperation between the CoE within the cluster. The cluster needs to consist of at least two CoE from different regions. A proof of connections to the international top excellence and the companies in the sector is needed. Also evidence of working cooperation between local actors, strategic long term plan, and the commitment of regional actors (also financial) is demanded. The clusters are expected to be already internationally of high excellence, nationally significant and innovative. The applications should mark the steps to the utilization of that know-how, to the growth and to the internationalization. Evaluation: The Programme season was evaluated twice, first in the mid-term of the programme season in 2003 (Huippuosaamisesta 2003) and then at the end in 2006 (Kanninen et al. 2007). The evaluation of the Programme season focused on three areas of interest: 1) implementation and impact of the CoE Programme, 2) significance and management of programme basic funding, and 3) regional best practices during the Programme Period. (Kanninen et al ) The conclusions of the evaluation were that the implementation of the programme has been successful both at the national and Centre of Expertise levels. Based on the project data reported by the Centres of Expertise themselves, the programme has influenced the creation of approximately new enterprises and jobs, and contributed to the retention of appr jobs in the season However, they remind that the reported impacts are not solely due to the measures of the programme. Number of people trained during the programme season was The average number of enterprises involved in the operations annually was (Kanninen et al ) The focus of CoE operations has shifted from regional networking toward more focused operations during the season CoE operations have acted as a 17

18 development project catalyst in spearhead fields and gathered fragmented development investments under broader entities. (Kanninen et al ) In the mid term evaluation the main problems were identified to be in the networking and cooperation between CoEs, low level of internationalisation, insufficient resources for monitoring and development work and unspecified division of work between CoE Programme and other instruments of regional development. (Huippuosaamisesta 2003.) In the total evaluation (Kanninen et al. 2007) these problems were returned. It was stated that in the future more emphasis should be placed on the specialisation and the cooperation among CoEs, in order to avoid overlapping of functions. The CoEs should also have a national role in serving operations in a certain field of expertise. The division of work between the CoEs and other regional development agencies (such as TEKES and TE-Centres) should be more explicit. In the evaluation it was also recognised that there is often a gap between the formal objectives of the programme and the operations of the CoEs. That should be paid more attention to in the future. The shortage of internationalisation had continued also in the last half of the season. (Kanninen et al ) Planned future: New programme season is now starting for the years , with a stronger emphasis on cooperation and specialisation between regions, networking, international level of excellence and stronger connection to the national innovation policy. Also more horizontal cooperation between different industry sectors, as also between high-tech and other industries is highlighted. Focus will be more on growth entrepreneurship, SMEs, marketing, increasing business competencies and better exploitation of research results in the new programme season. Increasing internationalisation will be strived for. CoE Programme will be more closely connected to the new strategy of Tekes, the development of higher educational institutions and implementation of innovation policy based on Lisbon strategy than before. New Centres of Expertise will be organised according to the new cluster-model. (See previous paragraphs.) 18

19 Source: Act no.1135/1993, The Regional Development Act. Finlex database in (in Finnish), read 20th March, Huippuosaamisesta alueille kilpailukykyä. Osaamiskeskusten väliarviointi (2003) [Mid-term evaluation of the Centres of Expertise for the period ] Sisäasiainministeriön julkaisu 4/2003. Helsinki, Ministry of the Interior. Kanninen S., Mikkonen R., Kuusisto J., Lemola T., Halme K., Viljamaa K. (2007) Osaamiskeskusohjelma Loppuarviointi. [Evaluation of the Finnish Centre of Expertise Programme ] Sisäasiainministeriön julkaisu 57/2006. Helsinki, Ministry of the Interior. Lemola T. (2006) Alueellisen innovaatiopolitiikan suunta. [The directions of regional innovation policy]. KTM julkaisuja 10/2006. Helsinki, Ministry of Trade and Industry. Neuvo Y. (2006) Osaamiskeskusohjelman konsepti [The concept of the Centres of Excellent Programme 2007+] PowerPoint presentation held in Innopoli 10 th April, In file/neuvo ppt, read in 20 th March, Osaamiskeskukset aluekehitystyössä. [Centers of Excellence as a part of regional development activities] Tarkastuskertomus 13/2001. Helsinki, Valtiontalouden tarkastusvirasto. Pikkarainen M. (2006) Ohjelman hakumenettely ja valintakriteerit [The application process and the criterions for the selection for the Programme] PowerPoint presentation held in Innopoli 10 th April, In bcf8b, read in 20 th March, Tekel (2007a) read in 20th March, Tekel (2007b) read in 20th March, National cluster programme For each programme: Programme name: 19

20 TEKES Technology Programmes Financing: TEKES, companies, universities, polytechnics and research institutes. The funding of TEKES is decided in the State Budget annually. In 2006 the total budget was 495 million euros, 42% of that sum is spend in the technology programmes. The total budget includes about 20 million euros of EU structural funds, which are distributed by TEKES. (Tekes 2007.) Source of programme financing: TEKES is financing about half of the costs of the projects and the coordination costs of the programme as a whole. Hence, in 2006 TEKES funding for programme activities was around 196 million euros. Little more than the half of the costs is covered by the investments of the companies, universities and research institutes. (Tekes 2007.) Budget: In 2006 the total budget for the technology programs was 382 million euros. There were 23 technology programmes in motion in the end of Thus, the average magnitude of the programs was around 17 million euros. However, there is a great variation in the magnitude of the programmes (annual Tekes funding to the programmes varied between 0,3-27,3 million euros in 2006). Time horizon: TEKES Technology Programmes last usually 3-5 years. The first national Technology Programmes were launched in 1984, a year after the foundation of TE- KES. There are simultaneously projects ending, starting and in motion. Actor: Programme initiator: TEKES was founded in 1983 and the technology programmes became one of their policy instruments already in It is not clear who or what body was the initiator. Carried out by: 20

21 TEKES is the key actor in these programmes, but the programmes are built mainly from the needs and viewpoints of the enterprises. Therefore, the participation of the companies is regarded very important. Also the research institutes and universities play an important role, since their know-how is used as a fuel in these programmes. Finnish Funding Agency for Technology and Innovation, TEKES is a key actor in Finnish technology and innovation policy. Apart from preparing, funding and coordinating of cluster specific technology programmes, TEKES provides funds for applied technical research and risk-carrying R&D ventures in industry. Financial services include both loans and grants. In 2006 the share of SMEs of the corporate R&D financing was 53%. (European Trent Chart 2006, Tekes 2007.) There are 320 people working for TEKES. Alongside with the headquarters they have 14 regional departments at the regional employment and economic development centres (TE-centres) and six offices abroad. TEKES takes also actively part in designing the Finnish technology policy. (European Trent Chart 2006, Tekes 2007.) Organisational set up at programme and project level: Each technology programme has a person in charge and an operative team in TEKES, and possibly a programme manager from an outside organisation. The programme manager is mainly responsible of the practicalities. Each technology programme has an executive group, which is keeping the programme on course with the strategic guidelines made by the board of TEKES. The executive group also monitors the progress of the programme with the help of the annual plan of action. The members of executive group are chosen on the grounds of their know-how and work experience. They don t act there as representatives of their organisation or background groups, but as individuals. Scope and target: Geographic coverage: The whole Finland Policy focus (please see the table at p. 17 from the OECD report in the end 21

22 of this document and relate your comments to this) The policy focus of TEKES Technology Programmes is mostly on both science & technology policy and industrial & enterprise policy. The focus is on developing high-tech applications either within the firms involved in the projects or to be adapted by other firms. Also the commercialisation of the innovations and the spin-offs from the research is encouraged. In comparison to the CoE Programme high involvement of larger firms is eye-catching. Cluster lifecycle targeted No, there are technology programmes focused on both very old and established clusters and new, emerging clusters. Programme contents: Short description: TEKES uses technology programmes to allocate its funding, networking and expert services to areas that are considered important for Finnish economy and business life. They provide platforms for exchange of information and networking between companies and research communities. The technology programmes consist of joint research projects (of companies, universities and research institutes), and services that support companies business operations, such as seminars, training programmes and international visits. Activities Networking, cooperation, knowledge shearing, payback of the investments, ability to commercialise the innovations. The results of the programmes are specified in the numbers of patent applications, new products, new services, publications, theses and new manufacturing processes. Ambitions/goals The main focus is usually in developing new technologies, applications or procedures for the use of companies in order to promote Finnish competitiveness in world economy. Implicitly the projects to the programmes are chosen based on the cost-benefit assessments between applications. 22

23 Target group The programmes are targeted both to the small and large companies and research institutions in the areas that are important to national business and society. Tekes launches programmes in areas of application and technology that are in line with the policies outlined in Tekes strategy. Focus on SMEs The share of TEKES s R&D funding to the SME companies was over 50 % in Large firms are encouraged to network with SMEs within the projects. Level of R&D involvement High. Technology programmes are build around R&D goals and activities striving for them. Programme offers The programmes offer opportunities to networking and knowledge transfer through seminars and workshops. Also international networking is encouraged (e.g. excursions abroad). Training is organised within the programmes. The programmes provide also arenas for publishing the results of the undertakings. Funding is an essential part of the programme structure. Tekes funding may be a low-interest loan or a grant, depending on the stage of the innovation and the nature of the proposed project. Financing can also be awarded to foreign entities registered in Finland. Foreign-owned companies with R&D activities in Finland are not required to have a Finnish partner to be eligible for funding. Cross-country/interregional activity Usually all programme level activities are national. The very idea of the programmes is to start up R&D projects among research institutes and industry around the country and then bring them together in seminars and other common activities. Process: 23

24 TEKES plans the technology programmes in association with companies, universities and interest groups. The planning is done in work groups and open seminars. The decision to start a programme is taken by the TEKES board. The projects to the programmes are chosen based on applications. Firms may apply for R&D funding from the programmes continuously. The universities and research institutes may apply funding for research projects normally once a year. Selection of clusters to support: The process is mainly top down, even if, the process involves hearing the actors of cluster policy. The initiative and the final decision of the selection of the clusters to support is in the hands of TEKES. Main elements in applications if that is used: Companies are encouraged to propose project which include networking with other companies or cooperation with universities or other research organisations. Industry involvement is strongly encouraged from research projects of universities, too. The more the applicant and the partners are investing themselves the better. Large companies are urged to work together with SMEs in the projects. Evaluation: Every technology programme is evaluated at the end of the programme season by external experts, many also in mid-term. The experts are nominated by the impact analysis unit of TEKES. The evaluation provides information and understanding on the dynamics of research and development practice and the factors contributing to its success or failure. One evaluation can cover several programmes if they belong to the same field of technology, or cluster, or if they have similar goals, or some other common denominator. Individual technology programmes are evaluated, but the technology programmes as a policy instrument have not been evaluated. However, there is currently a evaluation in Tekes underway (called Meta), which evaluates the technology programme management activities. 24

25 Planned future: There is no knowledge of radical changes in the structure or focus of Technology Programmes in near future. However, Tekes has listed its strategy focus areas (clusters) and the promising sub-areas in those clusters. These can be used as indicators of the future plans in the cluster policy of Tekes. The promising areas are the following (TEKES, Clusters 2007): Information and communications cluster mobile products and services telecommunication services content business software products information technology services instrumentation and automation components ICT solutions for health care Metal cluster renewing metal logistic solutions machines, equipment and services system suppliers knowledge intensive services Forest cluster sustainable processes future fibre products new solutions for media and packaging wood biomass utilization system concepts for wood products Well-being cluster health care technology pharmaceuticals and diagnostics functional foods framework for well-being 25

26 well-being services Chemical and bio cluster energy products solutions for forest cluster intelligent and functional materials environmental solutions health care solutions Environmental cluster environmental technologies and methods sustainable solutions, processes and services renewable energy solutions and services Energy cluster solutions and services for energy utilisation solutions for energy distribution renewable energy solutions and services other solutions for clean energy and climate change mitigation Real estate and construction cluster value-networked construction process service models for renovation and maintenance integrated products and systems proactive facility management and ownership services and software Food cluster functional foods services food safety food chain management and cost-efficiency intelligent packaging Source: European Trent Chart on Innovation (2006). Annual Innovation Policy Trends and Appraisal Report. Finland. A publication from the Innovation/SMEs Programme in read in 20 th March,