Finnish National Innovation System Strengths and Areas for Improvement Yrjö Neuvo
Outline Finland Indicators Achievements Areas for Improvement Summary
Finland
Trust felt for given institutions within society Questionnaire survey among Finnish people in 2007. Source: Finnish Science Barometer
100 90 80 Finnish Exports of Goods by Branch Share of Goods Exports, % 27 15 5 5 5 Wood and wood products 22 16 15 Pulp, paper and paper products 70 30 9 14 15 Metals and metal products 60 50 42 7 16 19 21 Machinery, equipment and vehicles 40 30 20 10 0 15 18 11 15 15 4 31 25 23 10 14 14 7 7 7 1960 1980 2000 2006 2007 In 1960 metals and metal products includes machinery and electronics etc. Source: Board of Customs 22.8.2008/rakvie3/jka/suku Electronics and electrotechnics Oil, chemicals and chemical products etc. Other products Export in 2008 65.5 B 5.5.2009 Hannele Pohjola 5
Indicators
WEF, Global competitiveness 2009 2009 2008 Switzerland USA Singapore Sweden Denmark Finland Germany Japan Canada Netherlands 1 2 1 3 4 5 6 7 8 9 10 2 5 4 3 6 7 9 10 8 Source: WEF, The Global Competitiveness Report 2009-2010
DM 58620 08-2003 Copyright Tekes Public R&D units University University unit Polytechnic Polytechnic unit VTT, Technical Research Centre of Finland or other public research institute Unit of public research institute Science Park
Publications among the top 1 % of most cited ones 15.12.2009 9
5,0 4,5 4,0 3,5 3,0 2,5 2,0 1,5 1,0 0,5 Percentage of GDP R&D investments in some countries Israel Sweden FINLAND Japan Korea Iceland USA Austria Germany Denmark Singapore OECD France Great Britain Norway China Ireland 0,0 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 Sources: OECD, Main Science and Technology Indicators and Statistics Finland Prel.
6,5 6,0 5,5 5,0 4,5 4,0 Billion EUR 3,9 4,4 R&D in Finland in 1995 2008 6,4 6,2 5,8 5,3 5,5 5,0 4,8 4,6 3,5 3,0 2,9 2,5 2,0 2,2 1,5 1,0 0,5 0,0 1995 1997 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 Public sector Universities Enterprises Source: Statistics Finland (estimate) Nokia s Global R&D was 5.3 B in 2008 5.5.2009 Hannele Pohjola 11
SMEs participating in innovation cooperation Finland Estonia Austria Belgium Sweden Island Greece Netherlands France Great Britain Norway EU27 Denmark Germany Portugal Spain Italy % 0 5 10 15 20 25 Source: European Innovation Scoreboard 2008
R&D personnel per 1,000 employed in 2002 and 2007. 15.12.2009 13
Public funding for R&D in companies Czechia (2005) Italy (2004) Poland (2005) Spain (2004) USA (2004) Great Britain( 2004) Norway (2003) France (2004) EU 25 (2004) OECD (2004) Austria (2004) Sweden (2003) Belgium (2004) Germany (2004) Portugal (2003) Korea (2005) Ireland (2005) Finland (2005) Netherlands (2003) Denmark (2003) Canada (2006) Japan (2004) 0 5 10 15 Covers R&D grants, not loans. 5.5.2009 Hannele Pohjola 14 Source: OECD, Main Science and Technology Indicators %
Foreign born R&D personnel aged 25 64 in 2008 15.12.2009 15
Achievements
National R&D Programmes strength since 1980s SHOK = National Strategic Centers for Science, Technology & Innovation OSKE = Regional Centres of Expertise Programme EU FP7 JTI, ETP, EIT Eureka ERANET, art. 169 OSKE (13) National R&D Programs (Tekes & Academy) (approx 40) SHOK (6)
(Regional) Centres of Expertise Program Joint strategy
Government s catalytic basic funding 1999-2006 Total project funding: 525 million euros Basic funding: 52 million euros
Direct project impact 1999-2006 New high-skill jobs 12800 Jobs maintained 29300 New high-tech businesses 1300 New innovations (products, concepts) 3700 Number of people trained 90000
Strategic centres for Science, Technology and Innovation (SHOKs) National Joint Technology Initiative Support both long term strategic research and shortening the innovation chain. Stimulate R&D&I excellence of world class quality. The shareholders prepare a strategic research agenda for the centre and decide on how the agenda will be carried out. Tekes and Academy of Finland funding
DM 458870 02-2009 Copyright Tekes The SHOK s Coverage Forest cluster Energy and the environment Information and communication industry and services Metal products and mechanical engineering Built environment Health and well being
Areas for Improvement
Focus areas: Concrete policy actions Taxation Early stage vc + private business skills into early stage business development Harnessing growth entrepreneurship potential in universities
Alleviation of taxes for industrial R&D 25 Spain China Canada Portugal Czechia Netherlands Norway France Japan Denmark Korea Great Britain Belgium Austria USA Ireland Poland FINLAND Switzerland Iceland Sweden Italy Germany -5 0 5 10 15 20 25 30 35 40 45 Percent of corporate R&D Source: OECD Large companies SMEs % DM 36054 and 218475
Taxation and regulatory issues relating to high growth companies Remove tax obstacles to growth, reform taxation to make it more conducive to growth Ministry of Finance and Ministry of Employment and the Economy should assume a joint responsibility for enterprise side innovation & growth policy
Growth Companies Accelerator Program for early stage growth Tailored financing and top level know how to breed promising innovative/technology start ups Combine public funding and private sector expertise Tailored public enterprise service for high growth companies Customer oriented service package which is easier to access and administer, combining funding and advisory services Early stage venture capital market Make Finnish early stage venture capital market more dynamic and enhance the sector s international exposure
Growth entrepreneurship and universities Take research out of lab more effectively Turn research results into successful business ventures. Reinforce training and know how for growth entrepreneurship Enhancing culture of entrepreneurship in Finnish universities
Summary
DM 334653 10-2007 Copyright Tekes Some Strengths Long term political commitment Best knowledge transfer between universities and companies Networks of large companies and SMEs Active public private partnership Knowledge intensive industry and services growing High level of education Most researcher intensive country in the world
Globalization Challenges Shares of American and European investments in R&D declining, share of Asian and especially Chinese investments increasing Global labour market: competition for talent, changing patterns of researcher mobility Manufacturing is mobile 15.12.2009 31
What is our competitive advantage in the future? Ensuring a world class knowledge base (in selected areas) The ability to create a growing number of radical innovations An excellent capability to transform knowledge into a competitive advantage into innovations 5.5.2009 Hannele Pohjola 32