Transcript The Finnish Innovation System and Comparisons

The Finnish Innovation System and
Comparisons with Scotland
May 2007
Finnish Innovation System
 Finland tops Global Innovation Scoreboard and near the
top of a number of other indices, such as WEF, IMD and the
EU Innovation Scoreboard
 High business enterprise R&D figures and innovation
scores (Community Innovation Survey)
 Above average growth since mid 1990’s
 Broadly similar size, GDP and population to Scotland
What are the differences/similarities?
Scottish innovation system
Public Sector
Policy Makers
Scottish Parliament
Enterprise
Transport & Life
Long Learning
Financing
Scottish
Enterprise
Operators
Higher
Education
Institutes
Private Sector
Chief Scientific
Advisor
Scottish Executive
SMEs
Low R&D
intensity
Environment
& Rural
affairs
Highlands
& Islands
Enterprise
ITIs
SMEs
High
R&D
intensity
Education
Scottish
Executive
Other
Public
R&D
Service
sector
NHS
Foreign
Branch
plants
Other
SFC
Research
Institutes
Foreign
R&D
firms
Science, Technology and innovation policy in Finland
 Science and Technology Policy Council
 Coordinates S&T policy and national innovation system
 Chaired by PM with multi-ministerial representatives
 Academy of Finland
 Funds basic research
 4 Research councils
 Finnish Innovation Fund (SITRA)
 Direct to parliament endowment fund
 Pilot new activities
 E.g. VC investment, tech transfer support
Science, Technology and innovation policy in Finland
 National Technology and Innovation Agency (TEKES)
 Funding for research and development in firms, research orgs
and universities
 50% technology programmes – specific industry or technology
– 20-150m euros, 3-5 years
 22 programmes in operation, 50% funding , e.g.
• Distributed energy systems
• Future healthcare
• Innovative Services
 Also other R&D grants and loans
 50% targeted to SME’s
 Collaboration usually a criteria
Science, Technology and innovation policy in Finland
 Employment and Economic Development Centres
 15 regional centres to coordinate local delivery
 Business support, advice, funding
 Finvera
 Support Internationalisation and exports
 Loans, grants, export credit
 Also channel for EU funds for Finnish SME’s
Finland: (Euros million)
Academy of Finland – basic
research via 4 research councils
(Culture & Society, Natural
Sciences & Engineering, Health,
Biosciences & Environment.
VTT - Technical Research Centre
of Finland (applied polytechnic
research institution)
TEKES - National Technology and
Innovation Agency (R&D funding
to businesses, research centres &
unis – 50% to SMEs)
T&E Centres - Employment and
Economic Development Centre
(business support, advice, funding)
Innofin – supports entre-preneurs
to exploit innovations
SITRA - Finnish Innovation Fund
funds pilot innovation activities
Finpro – provides business
internationalisation advice
Finnvera – supports SME
internationalisation and exports
through loans, grants, export credit
Source: TEKES 2005.
Notes: 1. The numbers represent the total R&D of each organization in million euros in 2004. 2. Funded from
state budget appear in parentheses. 3. TEKES’ and the Academy of Finland’s R&D are funded entirely by the
state budget.
Resources and players in the Scottish Innovation System (Euros million)
Private
Business R&D
726
Bus Ang
52
VC Investment
176 (19)
SE Innov support
(115)
Universities
(890)
Public
Research Councils
(390)
Basic Research
S Exec
Innov Support
(105)
SDI
(25)
SE Bus Dev
(55)
Research Inst
(111)
Applied Research Business R&D
Business Development
Internationlisation
Notes: 1. The numbers represent the total R&D of each organization in million euros in 2004-2007. 2. Funded from state budget appear in parentheses
Finland compared to Scotland
Scotland
Finland
5,094,800
5,246,000
GDP ($, millions, 2005)
157,113
162 160
GDP per head ($, 2005)
31,545
30,916
2,415,400
2,404,000
GERD % of GDP
1.46
3.46
HERD % of GDP
0.65
0.66
BERD % of GDP
0.59
2.46
% SME’s participating in R&D cooperation
14
20
% Firms collaborating with firms or universities during
innovation
50
70
Population (2005)
Employment (2005)
Finland compared to Scotland
 Overall level of funding higher
 Level of BERD – nearly 5 times Scotland % GDP
 Partly but not entirely Nokia
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High level commitment to Innovation policy
Long term and strong consensus
Focus on Business research and the need to collaborate
Strong technology/sector calls
Finnish Specialities
 Nokia Effect
 50% of R&D
 Long Term policy making
 Strategic foresight and follow through into collective action
 Cultural norms and characteristics
 High trust in government
 High Degree of co-ordination
 Across ministries and business orgs - spread innovation
message
 Culturally strong but open to ideas
Discussion Points
 Some similarities but some differences
 Needs drive public policy
 What can we learn from Finland?
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Small, open economy
Continual renewal
Long term strategy
Collaborative behaviours