copyright © tekes the finnish innovation system tekes raine hermans, phd, adj. prof. director,...
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Copyright © Tekes
The Finnish Innovation System
Tekes
Raine Hermans, PhD, Adj. Prof.
Director, Strategic Intelligence
tLinkages between academy and industry
Copyright © Tekes
Competitiveness
Sources: WEF, The Global Competitiveness Report 2011-2012 and IMD World Competitiveness Yearbook 2011
09-2011DM 36054
Total ranking 2011-2012
IMDTotal
competitiveness2010
WEFGlobal
competitiveness2011
534
11014122620
1 768
2313
4
132
45896
12111013171914
123 56789
10111213141516
157
2011
SwitzerlandSingaporeSweden
USAGermanyNetherlandsDenmarkJapanGreat BritainHong KongCanadaTaiwanQatarBelgiumNorway
Finland
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Innovation and competitiveness
EU 25EU 15
AustriaGermany
IrelandFrance
BelgiumAustralia
JapanNetherlands
DenmarkCanada
Great BritainKorea
USASwedenFinland
Singapore
0 5 10 15 20 25 30 35 40 45 50 55 60 65 70 75
Source: The Information Technology and InnovationFoundation ITIF; The Atlantic Century II, Benchmarking EU & US, Innovation and competitiveness
07-2011DM 36054
Finland was ranked second with R&D input and personnel, venture capital, productivity and trade indicators.
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Science and innovation profile of Finland
Source: OECD Science, Technology and Industry Outlook 2010.
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GERD as % of GDP
BERD as % of GDP
Venture capitalas % of GDP
Triadic patentsper million pop.
Scientific articlesper million pop.
% of firms with new-to-market product innovations
% of firms undertaking non-technological innovation% of firmscollaborating
Patents withforeign co-inventors
% of GERDfinanced by abroad
Researchers per thousand total employment
Science and engineering degreesof all new degrees
HRST occupatons as % of total employment
0
50
100
FinlandOECD
Finland is a pioneer in many aspects of innovation activities.
Copyright © Tekes DM 36100
The figures represent the total extent of each organisation in million euros in 2008, those markedwith star are earlier. In parenthesis the share that is funded from the State budget.**includes polytechnics *** includes R&D costs of corporations foreign units
Priv
ate
Basic research Applied research Business R&D
Business developmentMarketingInternationalisation
R&Dat companies
4,179* BusinessAngels
Approx. 380*
Pub
lic
Finnvera468 (44)
Universities and
polytechnics**1,165 (482)
Academyof Finland297 (297)
Ministries,ELY Centres,
sectoral research413 (402)*
Tekes526 (526)
VTT245 (74)
From abroad407***
Innofin7 (5)
Finpro35 (21)
Venture capitalists:Private 364
Finnish Industry Investment: direct 19, venture capital funds 131,
seed funding 7
Sitra35
Resources in the innovation environment
01-2010
Copyright © Tekes DM 36100
Public sector activities of R&D in Finland
10-2010
PARLIAMENT
Academy ofFinland
Universities
Ministry ofEmployment
and theEconomy
VTT
Tekes
Otherministriesand theirinstitutes
SitraFinnvera plc
FinproFinnishIndustry
Investment Ltd
RegionalELY Centres
GOVERNMENTResearch andInnovation
CouncilMinistry of
Education andCulture
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Examples of various dimensions of Tekes role (based on innovation boundaries defined in energy and environmental technology programs) (VTT Sfinpact analysis, 2012)
Financial dimensionFunder & networker
R&D funding on condition customers in research & industrial communities will network mutually -- via this role several various roles
via different dimensions
Networking dimensionNetworker
In R&D funding schemes, also other ´add value´ networking
services (seminars, workshops, FiDiPro, etc.)
Coordination dimensionCoordinator
Of applied national S&T via technology programs and
other activities
Future dimensionForsighter & visioner of STI
Development, e.g. FINNSIGHT, NISTEP study, Megatrends, etc. (a lot of
potential, foresight used only in 16 % of technology programs
Geographical dimensions
Local, regional, national, global actor
Innovation process dimension
Various promoting roles in different stages of innovation processes
Enhancer of national S&T level Enhancer of applied STI level Via most programs, some of them
particularly intended to raise national scientific level (Biodiversity,
FINE)
Combination dimensionCreator and networker
of various new technology and expertise areas & related firms in order to create new combinations in frontier
areas of traditional S&T areas in technology programs and other
activities
Generic STI dimension- Penetrator and
acceleratorOf applications of new generic technologies to companies in
various industrial fields
Source: (VTT Sfinpact analysis, 2012)
Copyright © Tekes DM 36054 and 928485
Finland is the leading country regarding innovation cooperation between companies and academia – Tekes plays a significant role in creating these partnerships
ItalyPortugal
GermanyFranceNorwaySweden
NetherlandsDenmarkBelgiumAustria
FINLAND
0 5 10 15 20 25 30
Universities
Research organisations
03-2012
%Share of innovating companies 2008–2010
Source: Eurostat, Community Innovation Survey
Innovation cooperation between companies, universities andresearch organisations
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Crossing boundaries: Tekes funding for large companies is channelled to research organisations and SMEs
Figures do not include funding of large companies through SHOKs.Research programmes of the Strategic Centres for Science, Technology and Innovation (SHOK) are joint programmes forresearch organisations and companies. DM 756052
Average funding flows in 2008-2010Funding flows, million euros
Tekes funding for large companies
Large companies projects buy researchservices from universities and researchinstitutes
Large companies projects use SMEs assubcontractors
Large companies co-finance publicresearch projects in universities andresearch institutes
Net flow
+ 58
- 28
- 19
- 10
+ 1
SMEs
58 mill. €
Tekes
University
Researchinstitute
Costs of projectsfunded by Tekes
167 mill. €19 mill. €
10mill. €
28 mill. €
Large companyover 500 employees
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Monetary Value Flows between Nokia and Public Sector in Finland
1995-2000 (in 2000 prices)
Source: Statistics Finland, Nokia, Ministry of Education, ETLA.
Nokia
Public sector• Corporate Taxes 2.9 billion €• Wage taxes 1.4 billion €• Social insurance fees 1.2 billion €• Taxes due to options 1.2 billion €
• Tekes 0.08 billion €•Public expenditure and income transfers without employment expenditure 1.6 billion €
Universities
• ”Replacement value” of the formal education 0.6 billion €
• Nokia’s investments in the universities 0.02 billion €
6.7 billion €1.7 billion €
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Nokia’s cooperation network in Tekes ETX and TLX Programmes
* The figure includes both company ventures and target research projects. Included are partners with minimum of 3 projects with Nokia. Information is based on the end reports of the ETX- and TLX- prog- rammes. The figure is interpreted so that the more projects the organization is involved in, the larger is its circle and the closer it is to the centre. The figure was drawn in the course of the "Evaluation of Finnish R&D Programmes in the Field of Electronics and Telecommunications (ETX, TLX and Teletronics I)" project.
Figure 3.2. Nokia's cooperation network in Tekes' ETX and TLX programmes.*
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Tekes R&D funding in 2011Total 610 million euros and 1,928 projects
Funding for SHOKresearch programmes81 million euros
The funding for R&D includes 18 million euros from EU Structural Funds.Research programmes of the Strategic Centres for Science, Technology and Innovation (SHOK) are joint programmes for research organisations and companies.
R&D grants to companies and
public organisations215 million euros
R&D loans to companies101 million euros
Research fundingfor universities,research institutesand polytechnics203 million euros
Grants in projects launched by municipalities, cooperatives,
societies and associations10 million euros
04-2012DM 940410
Copyright © Tekes
About Tekes
Our services
Tekes offers risk funding for research and innovation projects.
For young (< 6 years) companies, funding is available for all aspects of business development.
Customers
Tekes funding is primarily targeted for forerunners and particularly challenging projects:
• Finnish companies and subsidiaries of multinational companies located in Finland – some 5,000 active customers.
• Universities & research institutes – most Finnish research teams in life sciences and engineering are Tekes customers.
Resources
Budget: In 2012, €554 million from the state budget
Personnel: 370 in Finland and abroad (China, EU, Japan, USA)
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Tekes aims to
build a strong networked knowledge base
renew the economy and create new businesses
increase productivity in industries and service sector
enhance wellbeing in society and improve environmental sustainability
04-2012DM 940410
Copyright © Tekes DM
Following up the Customers Results: Productivity of SMEs
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010100
110
120
130
140
Tekes-asiakkaatpopulaatiovertaisotos
Source: Etlatieto Oy (2012)
08-2012
Total development (weighted mean)
Firms funded by Tekes
Total population
Counterparts –no Tekes funding
Firms funded by Tekes in 2001 (2001 = 100)
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Growth companies are the most important target group for Tekes
Young, innovative companies which are involved in the Tekes funding programme and seek fast growth increased their turnover from 10 million euros to 250 million euros in four years during the recession.
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The start-up companies funded by Tekes grow fast and successfully
Wired Magazine ranked the hottest start-up companies in Europe in 2012. Tekes has provided funding for all the Finnish companies mentioned on the ranking list:• Ovelin• Kiosked • Tinkercad • Audiodraft • Grand Cru• Mendor • Powerkiss• Steam Republic• Thirdpresence• Grey Area (also ranked high in 2011)
43 out of the top 50 companies on the Deloitte Technology Fast 50 Finland ranking list have received funding from Tekes, among them the ten fastest growing companies:1. Confidex Oy (5,513 %)2. Snoobi Oy (4,652 %)
3. Analyse² (4,068 %)
4. Uoma Oy (3,015 %)5. Klikkicom Oy (2,308 %)6. Sympa Oy (2,177 %)7. OptoFidelity Oy (1,738 %) 8. Endero Oy (1,548 %)9. Netvisor Oy (1,532 %)10.Beneq Oy (1,090 %)
(in parentheses the increase in turnover over five years)
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Copyright © Tekes
Our approachTekes complements private financiers
we accept more risks than private financiers, if risks are comparable to business potential
we address market failure related to availability of private seed and start-up funding
we do not take equity in the companies that we finance
all intellectual property created in Tekes funded projects belongs to companies and research organizations that receive funding
our funding does not imply that the company receiving funding has to locate its manufacturing in Finland
Confidentiality
Tekes does not disclose business confidential information to third parties
applications from companies and research organizations are evaluated in-house by experts with first-hand business experience
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“Tekes has performed well and is among the world’s
leading innovation agencies”
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Finnish innovations, the VTT SFINNO database
Consists of about 4,900 innovations developed by Finnish companies, dating back to 1945.
Updated every other year by identifying innovations in field publications. This object-oriented approach is complemented by sending a questionnaire to the innovator.
Further information: http://www.vtt.fi/proj/sfinnoTekes Review 289/2012: Funder, activator, networker, investor Innovation Interstate
1 2
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Significance of Tekes funding for Finnish innovations, 1985-2007
Source: VTT Sfinno- database, questionnaire, n = 960
02-2012
Tekesin rahoituksella pieni rooli11%
Tekesin rahoitus
merkittävää51%
Ei Tekesin rahoitusta
38%
DM 915541
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Significance of Tekes funding for Finnish innovations that are new to global markets, 1985-2007
Source: VTT Sfinno- database, questionnaire, n=613
02-2012
Tekesin rahoituksella pieni rooli12%
Tekesin rahoitus
merkittävää57%
Ei Tekesin rahoitusta
31%
DM 915541
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Significance of Tekes funding for Finnish innovations based on scientific breakthroughs, 1985-2007
Source: VTT Sfinno- database, questionnaire, n=194
02-2012
Tekesin rahoituksella pieni rooli
6%
Tekesin rahoitus
merkittävää88%
Ei Tekesin rahoitusta6%
DM 915541
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Duration of innovation development and significance of Tekes funding
Lähde: VTT SFINNO™ -tietokanta, 1985 - 2007. Huomio: lukemat perustuvat kyselyvastauksiin.
Role of Tekes Funding
1 year or less
2 years 3-4 years
5-6 years
7-20 years
>20 years
N
Significant 38,6 % 43,5 % 60,5 % 64,5 % 63,7 % 85,7 % 424 Minor significance 7,1 % 10,8 % 11,8 % 6,6 % 17,7 % 0,0 % 87 No funding at all 54,3 % 45,7 % 27,6 % 28,9 % 18,5 % 14,3 % 294 Total % 100,0 % 100,0 % 100,0 % 100,0 % 100,0 % 100,0 % Grand Total N 184 186 228 76 124 7 805
Source: VTT SFINNO™ -database, 1985 - 2007 (N = 852). Note: The figures are based on survey responses.
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Programmes: Tekes programmes that ended in 2010
Programmes published in the final and evaluation reports
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Radical innovations: breakthrough from local value chains to global value networks
Modified from: Kristian Möller, Aalto University School of Economics (2010)
Multidisciplinary competences of many kinds (enabling systemic changes)
Systemic innovation(modifying operational environment)
No cross-disciplinary competences
Plug & Play innovation Cost-benefit analyses of the entire systemRisk
and return in
crease along with
development of sy
stemic a
nd
multidisciplin
ary innovations w
hich
are facili
tated and supporte
d by
public funding
Portfolio of Incremental innovations, which are based on conventional value chains) managing projects
Portfolio of radical innovations which are based on systemic
changes in global value networks orchestrating
complex entities (incl. regulation)
Measuring cross-disciplinarity of competences
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© Copyright Tekes
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Signal sessions 2012+Foresight information for the needs of companies
Foresight signals predicting changes in global markets
Remote video conference workshop with 3 cases: ideas and actions
Entrepreneurs
Pirkanmaa/Tampere- Juhani Mattila- Pertti Keskitalo- Riitta Kettunen - Lasse Pöyhönen- Sari Salo
Pohjois-Pohjanmaa/ Oulu- Minna Tontti- Petteri Lahtela- Ritva Heikkinen
Keski-Suomi /Jyväskylä- Kari Ahlbom
Kainuu/Kajaani- Kimmo Kyhälä- Leena Penttinen- Ilpo Antikainen- Veli-Matti Karppinen- Jukka Kohonen- Aki Koivistoinen
Uusimaa/Helsinki & Tekes Pasila- Jari Keinänen- Tapani Lahti- Sinikka Mäki-Ullakko- Seppo Mäki-Ullakko- Piia Moilanen- Tapio Ala-Peijari- Anne Salminen- Polina Kivineimi- Riku Mäkelä- Heli Vähätiitto
Pohjois-Karjala/Joensuu- Mari Pykäläinen
FinPro Itävalta, Wien- Lili Lehtovuori
Etelä-Savo/Mikkeli- Maisa Häkkinen
Varsinais.Suomi/Turku- Maiju Hyvönen- Martti Huolila- Ann-Maarit Tuomi- Vesa Auvinen
Häme/Lahti- Jukka Ajo- Janne Eskola- Pekka Lerkkanen- Kalevi Gran- Nina Flaaming- Jari Ukkonen
Lappi/Kemi- Risto Mäkikyrö
15 Regional ELY-Centers
International offices
OSKE Choose the projects
Finpro
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signaalittiedotus
materiaalitkeskustelu
opastusilmoittautuminen
videot
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Signal sessions as a part of foresight system Technology Sessions based on Technology Bank
Finpro gathering processTekes gathering process
Sitra gathering process…
Cases of FinNode projects
Tekes Sence MakingFinNode Sence Making
Interaction between FinNode projects
Finpro trend identification…Finpro services
New ideas based on themes
Tekes services
…
OSKE services
Funding applications
New business, Better choices
Market entry
…
PartneringNew inititiatives
Signal sessions
Foresight
Insight
Strategy
Action