See the Sitra website for the most recent information: sitra.fi
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2 SITRA IN A NUTSHELL In 1967, Finland rewarded itself with a gift for the 50th anniversary of its independence: a Fund was established with a mission to build for the future.
3 Sitra, the Finnish Innovation Fund, is an independent public foundation promoting the well-being of society under the supervision of the Finnish Parliament. Sitra s responsibilities are stipulated by law. Sitra s duty is to promote stable and balanced development in Finland, qualitative and quantitative growth of the economy and international competitiveness and cooperation. Sitra s activities have a strong international dimension in sharing knowledge, exchanging best practices and participating in innovative projects. Sitra s aim is to help Finland prosper as a global pioneer in systemic changes that generate well-being. A systemic change is a broad, far-reaching change of the kind that simultaneously affects the structures and practices of society and the everyday lives of its citizens. Sitra is a visionary and an enabler of such changes: to see is to do. Sitra runs programmes and strategy processes to promote social change, concentrating on a handful of focus areas at a time. The programmes involve preparing reports, strategies and experimental and development projects, together with corporate funding and business development. In 1967, the establishment of Sitra was a remarkable investment in the future by the Finnish Government. The original endowment, FIM 100 million, is equivalent to EUR 150 million today. Sitra currently employs about 100 people, and its operations are funded out of the yield from its endowment capital and business funding. See the Sitra website for the most recent information: sitra.fi
4 How do we address the challenges faced by society when all of today s problems, causes and consequences are so complex and globally intertwined?
5 We believe that Finland can prosper in a changing world as a pioneer of systemic changes that generate wellbeing. In order to attain solutions, we must have the capacity to influence several factors in society simultaneously. Sitra promotes these changes through the wide range of means at its disposal. DEVELOPMENT PROJECTS PAVE THE WAY FOR REFORM CORPORATE FUNDING ACCELERATES DEVELOPMENT FORESIGHT ACTIVITIES HELP PREPARE FOR THE FUTURE STRATEGY PROCESSES ARE DESIGNED TO ACHIEVE SHARED COMMITMENT REPORTS COLLATE INFORMATION TO SUPPORT DECISION-MAKING IDEAS ARE TURNED INTO SUSTAINABLE BUSINESS
6 Facts about Finland Parliamentary democracy, member of the European Union Population 5.3 million Official languages: Finnish and Swedish Currency: euro (EUR) Religion: 82.4% Lutheran and about 1.1% Orthodox Major cities: Helsinki (564,000), Espoo (235,000), Tampere (206,000), Vantaa (189,000), Turku (175,000), Oulu (130,000) The Helsinki Metropolitan Area has a population of about 1.5 million GDP in 2008: EUR 186 billion Finland ranked sixth in the Global Competitiveness Index published by the Geneva-based World Economic Forum Major exports: The electrotechnical industry accounts for about 24.7% of exports, metal products, machinery and transport equipment account for about 33.7%, while wood and paper products account for about 20.2%. The fourth biggest export sector is the chemical industry. Innovation actors: Academy of Finland Finpro Ministry of Employment and the Economy Ministry of Education Sitra, the Finnish Innovation Fund Tekes - the Finnish Funding Agency for Technology and Innovation
7 Expertise and innovation are increasingly important competitive factors for Finland. Finnish innovation is based on solid expertise, cross-sectoral innovation policy and the strengthening of our international presence. Finnish innovation actors share the goal of translating the creativity of individuals and communities into international success stories. For this purpose, we cooperate with progressive organizations regardless of whether they are public, private or non-profit.
8 DEVELOPMENT PROJECTS PAVE THE WAY FOR REFORM Through development projects, Sitra and its partners seek new operating procedures, evaluate the utility of reforms and draw conclusions regarding action needed. Scarcely anything is resolved on paper; even the best-laid plans require tweaking in practice in order to work in the real world. Development projects are trailblazers that encourage others to follow. Through concrete actions, even major challenges can be rendered human-sized. DEVELOPMENT PROJECTS PAVE CORPORATE FUNDING THE WAY FOR REFORM ACCELERATES DEVELOPMENT Money may not be a solution for everything, but it is a good start. In development projects and the business world, money creates opportunities, continuity and opens doors. Sitra promotes systemic change by applying its business development operations to companies in its programme areas. As society develops, opportunities for making money shift and change. But development does not always happen by itself sometimes it needs a little nudge Finland s Parliament ratifies the by-laws of the Finnish National Fund for Research and Development (subsequently the Finnish Innovation Fund), set up to celebrate the 50th anniversary of Finland s independence, at a special session on 5 December The Bank of Finland transfers an endowment capital of FIM 100 million to the Fund. The Fund begins operations and adopts the name Sitra, an acronym of its original name in Finnish. The Fund has at its disposal the yield from the endowment capital, FIM 7 million. For a short while, Sitra is the largest R&D funding provider in Finland. Initially, more than half of the funding is granted to universities, research institutions and research groups. Futurology the study of anticipating future research and technological developments is introduced into the Sitra programme.
9 BUSINESS DEVELOPMENT AND SOCIAL INFLUENCE Sitra has a dual function: to develop the competitiveness of Finnish businesses and to promote the long-term well-being of Finland s people. Combining these two functions is an innovation in itself. Sitra focuses its efforts wherever it sees that it can best help society prosper The Data-Sitra project is launched. With funding from the Bank of Finland, Sitra acquires a Univac 1108 supercomputer from the USA for the use of Finnish universities Sitra begins to grant funding for product development in the service of industry As a result of the oil crisis, the Fund focuses on energy projects.
10 FORESIGHT ACTIVITIES HELP PREPARE FOR THE FUTURE Foresight is a discipline that involves responsible preparation for changes in the economy and society. Several future scenarios are being taken into account. The most appropriate of the plans and operating models outlined will be selected once we see what the future actually brings. Sitra coordinates the work of the National Foresight Network. This network brings together virtual communities, organizes workshops, publishes reports and maintains the foresight.fi website. STRATEGY PROCESSES ARE DESIGNED TO ACHIEVE SHARED COMMITMENT What is possible when we share a common goal? Sitra s strategy processes bring together a wide range of actors to build a common point of view, when one is needed. Sitra s large networks and independence are assets when a wide range of actors is brought together in search of a common vision Funding for the electrical and electronics industries exceeds funding for the engineering and metal industries. Sitra takes responsibility for annual courses in financial management aimed at the top national political leaders. The courses continue until The combination DNA project funded by Sitra becomes the first genetic research project in Finland.
11 TO SEE IS TO DO The task of Sitra is to accelerate changes that will enable us to respond to worldwide challenges. These include: population ageing climate change globalization technological advancement competition for expert labour Sometimes change means questioning generallyaccepted truths. Sitra does not simply look into the future: it addresses the challenges of tomorrow today. It is not enough to see we must also act. At the moment, Sitra programmes are focusing on improving the capacity for change in Finnish health care, municipal services, the mechanical engineering industry, the energy industry and public administration, as well as the preserving the viability of rural areas A Sitra-commissioned report entitled Finland s Economy in 2010 includes a number of predictions including electric cars Sitra acquaints itself with venture capital investment in the USA Business funding is oriented towards commercialization of technology and the building of national and international networks. Sitra undertakes to develop the venture capital market; its tools include direct capital investment in technology start-up companies.
12 HELPING GOOD IDEAS TO FLY ON THEIR OWN Sitra works with its partners to launch projects that are designed to eventually succeed on their own. An innovator must be able to step back from even the most important of projects in order to make way for new initiatives. Sitra has operated on a project basis since its founding, with a vast history of innovative projects in different fields Sitra takes part in starting up Neuromag Corporation, which commercializes neuroscience technology. The technology was developed in the low temperature laboratory of Helsinki University of Technology together with VTT Technical Research Centre of Finland. This technology is now recognized worldwide in the field of neuroscience The Development Programme for National Strategy is launched to create a shared vision for senior leaders in various sectors concerning how to cope with the recession and strengthen Finland s competitiveness 1992 Sitra is Finland s largest single venture capital investor, both in terms of number of businesses invested in and the total amount of investment.
13 REPORTS COLLATE INFORMATION TO SUPPORT DECISION-MAKING It is not enough to have information. We also need to know what information is relevant and what information we lack. The more we produce information, the more important it is to analyse it. When decisions are made, we must know what they are based on. The information that forms the standard currency in Sitra s networks is an exchange of expertise. Compiled in reports, this information supports decision-making in relevant fields The Finland Scenarios project outlines five alternative scenarios for the future. Strategy reform focuses venture capital investment on technology start-up companies and strengthens research, training and innovation. Sitra undertakes the development of regional venture capital investment. The National Information Society Strategy is revised. The Learning Upper Karelia information society project and the Seniori 2000 project exploring home services for the elderly are launched.
14 IDEAS ARE TURNED INTO SUSTAINABLE BUSINESS There is no business without a good business idea, but that is not enough in itself. Many good businesses perish because of inexperience, excess caution or lack of leadership. Business must be developed and markets analysed with a view to anticipating the future. Social change can be leveraged. Sitra brings experienced experts with marketing savvy and management competence into the businesses it finances. This helps good ideas take flight The Finland 2015 programme, exploring global challenges and responses to them, is launched. At the same time the Europe 2020 research programme starts, aimed at providing information on the EU s future development. The Eastern European Database for Business and Public Administration is published as a result of broad cooperation in the field of Eastern European commerce and studies. Sitra moves to programme-based operations. Among the first programme areas are the Russia Programme ( ) and the India Programme ( ). Other areas include Health Care, Food and Nutrition, and Innovations.
15 COMPETITIVENESS AND WELL-BEING Economic competitiveness and human wellbeing are often seen as opposites or mutually exclusive goals. We believe that a smoothly running economy and society are what underlies human well-being. Sitra acts responsibly with regard to individuals, companies, society at large and the environment. According to Sitra s vision, Finland s continued competitiveness and the well-being of Finns will require broad and profound changes. Sitra helps identify these changes and enable them. Finland is a small country. High technological expertise, well integrated society, a superior educational quality and agility in decision-making are our advantages in a changing world Sitra publishes research on the Chinese innovation environment. Sitra is a co-founder of FinNode, the Finnish innovation centre in Silicon Valley, USA The ongoing themes defined for Sitra operations are citizens empowerment, user-oriented information and communications technology solutions, and increasing cooperation between the public sector, the private sector and the civil society The National Resource Strategy for Finland, the first of its kind, is published following strategic planning coordinated by Sitra.
16 PROGRAMMES ARE RELATED TO CURRENT TOPICS MUNICIPAL PROGRAMME ( ) Municipalities form the backbone of Finland s welfare society. Municipal service models must be overhauled to meet the challenges of the ageing population, regional differentiation and the labour shortage. At the same time, the efficiency of services must be improved and service production structures must be updated. This will ensure that the public receives better service for its tax money, more opportunities for participation and more choice. To continue providing high quality services to the citizens, municipal service organization must be rethought to meet the challenges of the ageing population, regional differentiation and the labour shortage. At the same time, the productivity of services should be improved and the structures of service production updated. EFFICIENCY AND TRANSPARENCY MAKE EVERYDAY LIFE EASIER AND IMPROVE PRODUCTIVITY It is important to know in our everyday lives how things work and what things cost. When processes and costs are transparent, it is easy for citizens to choose the services and procedures that best suit them. Efficiency and transparency for the public are key factors in the planning of structural and service reform through Sitra programmes. GROWTH PROGRAMME FOR THE MECHANICAL INDUSTRY ( ) The Finnish mechanical industry will continue to cope internationally. However, this will require new operating models to be introduced in its sub-contractor networks. The Growth Programme for the Mechanical Industry focuses on internationalization, networking and expertise improvement to maintain the competitiveness of SMEs in the sector. See the Sitra website for the most recent information: sitra.fi
17 HEALTH CARE PROGRAMME ( ) EMPOWERMENT AND ACTIVE CITIZENS The purpose of developing our economy, our society and our competitiveness is to improve the well-being of our citizens. Empowered citizens are aware of their environment and able to make use of a variety of opportunities and services that make their lives better. Since 2004, the Sitra Health Care Programme and its partners have sought to improve health care services in Finland. The programme involves identifying best practices, creating service concepts and applying innovations not just technology, but also methods of implementation that will guarantee better service for citizens and more efficient operations in the sector. ENERGY PROGRAMME ( ) Energy conservation is a major challenge for companies, the public sector and citizens. The Sitra Energy Programme aims to promote Finland s rapid transition into an energy-efficient society and to encourage Finns to conserve energy. The programme is geared towards making energy use in built-up areas more efficient and to develop sustainable energy solutions for various sectors and ways of life. HUMAN-CENTRIC TECHNOLOGY INCREASES WELL-BEING Technology should serve the people and the industry that use it, not the other way around. Technology exists to make life easier and to improve our well-being. In order for the objectives of Sitra programmes to be attained, technological solutions must be applicable in a number of fields from, say, health care to rural development. WORKING TOGETHER TO DEVELOP FINLAND These days, society and the economy function in innumerable different ways. Therefore all possible actors must be involved in any large-scale development. The views and ideas of the public and private sector, as well as those of private citizens, must be taken into account when looking forward and creating new things. FUTURE PROGRAMMES How can we keep the Finnish countryside viable and competitive? How should the public sector be managed? These are our next great social challenges, which Sitra will address by launching the Public Administration Management Development Programme and the Rural Areas as a Resource for Finnish Competitiveness Programme in 2010.
18 SEE THE SITRA WEBSITE FOR THE MOST RECENT INFORMATION Thank you for your interest in Sitra. If you would like to know more, there is in-depth and updated information on our website on programmes publications seminars blogs and statements news and bulletins sitra.fi
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20 Finnish Innovation Fund Itämerentori 2, PO Box 160 FI-001 sitra.fi
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