Christine Hagström-Näsi Helsinki, Finland Technology Manager, Tekes
Stimulating Innovation and Entrepreneuship by Public R&D Financing Christine Hagström-Näsi, Tekes
Tekes, The National Technology Agency of Finland Tekes is the main financing organisation for applied R&D in Finland. Tekes provides funding and expert services for R&D projects and promotes national and international innovation networking. Public sector activities of R&D in Finland PARLIAMENT Science and Technology Policy Council Ministry of Education GOVERNMENT Ministry of Trade and Industry Other ministries and their institutes Academy of Finland Universities Tekes VTT Sitra Finnvera Oyj Finpro Regional TE-Centres Docs 36105 A 01 / 04-2002
Private Public The Finnish innovation system Resources and funding in 2002 Academy of Finland 177 Universities 926 (402) From abroad 115 VTT 219 (68) R&D at companies 3,375 Ministries, Innofin 5 (4) TE-Centres, sectorial research 311 (227) Basic research Applied research Business R&D Business Angels 387 Venture capitalists: Private 349 Industry Investment Ltd 63 (42) Tekes 386 Sitra 48 Finpro 35 (20) Finnvera 352 (34) Business development Marketing Internationalisation The figures represent the total extent of each organisation in million in 2002. In parenthesis the share that is funded from the State budget. The funds of Tekes, the Academy of Finland DM 32190 and Innofin are funded entirely from the State budget. 01-2004 Copyright Tekes
DM 32189 11-2003 Copyright Tekes Impact of Tekes activities Boosting exports, broadening industrial and economic base, generating new jobs and improving well-being. Competitiveness, profitability and growth Enterprises New businesses, start-ups Projects and programmes International cooperation Societal and environmental impacts Research institutes and universities Tekes provides expert services and R&D funding coordinates programmes
DM 80983 01-2004 Copyright Tekes Total Tekes R&D funding in 2003 Total 392 million and 2,196 projects Industrial R&D grants to companies 156 million Research funding for universities and research institutes 162 million Capital loans for R&D to companies 34 million Industrial R&D loans to companies 40 million
DM 80983 01-2004 Copyright Tekes Tekes R&D funding by industry Million 60 50 40 Industry Machines and metals Business services Electronics and electricity Chemicals 30 20 Other Forest 10 Construction Foods Electricity, gas and water supply 0 1995 1996 1997 1998 1999 2000 2001 2002 2003
Tekes R&D funding for the forest industry cluster 1998-2003, million 70 60 50 40 30 20 10 0 1998 1999 2000 2001 2002 2003 Companies 32,2 30,6 29,1 24,4 18,9 20,3 Public research 20,4 35 23,4 13,0 14,4 14,4
New, Technology-Based Firms Are important for the national economy Apply new technology efficiently Grow rapidly Create jobs Are significant agents of technology transfer from universities and research institutes Create return on Tekes national investment in R&D Is one of Tekes focus areas
DM 80983 01-2004 Copyright Tekes SME s share of Tekes R&D funding % 80 70 60 50 40 30 20 10 0 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 Annually an additional 10-15 million was directed towards SMEs through projects in large companies, which increases SME share with 5-8 percentage units.
Tekes funding for industrial R&D in 2003 by size of company Total 230 million and 1,395 projects Funding 108 million. Number of financed projects 73 % 1 million 30 million 91 million 1 % 16 % 10 % Small companies Midsized companies Large companies Branch organizations etc. 58 percent of the funding for business R&D was directed towards SMEs and 73 percent towards companies with less than 500 employees. DM 80983 01-2004 Copyright Tekes
Tekes funding for industrial R&D in 2003 by size of company in the forest cluster sector 4.9 million Funding Total 20.3 million and 82 projects Number of financed projects 0.3 million 5 % 0.5 million 40 % 15.1 million 4 % 51 % Small companies Midsized companies Large companies Branch organizations etc. 26 percent of the funding for business R&D was directed towards SMEs and 55 percent towards companies with less than 500 employees. DM 80983 01-2004 Copyright Tekes
Large companies (more than 500 employees) receive 16 % of Tekes total funding and 26 % of Tekes business R&D funding. Large companies co-finance Tekes R&D projects in universities, public research institutes and SMEs more than Tekes finances their projects. This system is managed by Tekes funding criteria. The system increases the quality of R&D projects and has important externalities in: knowledge transfer between large companies and research organisations development of SMEs as subcontractors and strategic partners of large companies DM 58774 08-2003 Copyright Tekes Funding flows of Tekes funded R&D projects between large companies (more than 500 employees), research organisations and SMEs Annual average 2000-2002 16 mill. Universities Public research centres Large companies Project volume Tekes 60 mill. SMEs 31 mill. 180 mill. 15 mill. Funding flows to/from large companies, Million Tekes funding to R&D projects of large companies + 60 Large companies projects buy research services from research organisations -31 Large companies projects use SMEs as subcontractors -15 Large companies co-finance public research projects Net flow -16-2
Large forest cluster companies receive 43 % of Tekes total funding and 51 % of Tekes business R&D funding for the forest cluster. Large companies co-finance Tekes R&D projects in universities, public research institutes and SMEs more than Tekes finances their projects. This system is managed by Tekes funding criteria. The system increases the quality of R&D projects and has important externalities in: knowledge transfer between large companies and research organisations development of SMEs as subcontractors and strategic partners of large companies DM 58774 08-2003 Copyright Tekes Funding flows of Tekes funded R&D projects between large forest cluster companies, research organisations and SMEs 2003 3,5 mill. Large companies Funding flows to/from large companies, million Universities Public research centres Project volume Tekes 15 mill. SMEs 11 mill. 35 mill. 2.5 mill. Tekes funding to R&D projects of large companies + 15 Large companies projects buy research services from research organisations -11 Large companies projects use SMEs as subcontractors Large companies co-finance public research projects Net flow -2.5-3.5-2
DM 32190 12-2003 Copyright Tekes New business start ups Funding and support of technology start ups Tekes, TE-Centres, Finnvera, Sitra, Finpro, Technology/ Science parks, technology transfer companies...etc. Funding and expert services Science and technology research funding in universities and research institutes by Tekes and the Academy of Finland Pre-seed Tekes, Sitra Seed funding Sitra, Tesi Venture capital funding and Business Angels, private, regional, etc. Progress of Business Plans TULI, Tekes Search of Business ideas + progress Foundation of inventions, etc. Research, knowledge Company, business