Transcript Nokia strategy: towards capability

Innovation and Competitiveness
ICT Industry Perspective
Lauri Kivinen
Vice President, Head of Nokia EU
Representative Office, Brussels
Budapest, 4.12.2006
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© 2006 Nokia
Nokia at a Glance
• World’s largest mobile handset
manufacturer
• Number one in GSM and 3G
devices
• The world’s sixth most-valued
brand
• Nokia and Siemens plan to
combine their networks businesses
in 2007
• 68,000 employees of some 120
nationalities
• Sales in more than 130 countries
• Net sales of EUR 34 billion in 2005
• Operating profit of EUR 4.6 billion
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Nokia in Hungary
• Nokia units in Hungary since 1993
• Nokia is one of the biggest investors in the telecom sector in Hungary
• Nokia Hungary head office and R&D center in Budapest, factory in Komárom
• Number of Nokia employees in Hungary at present over 4000
• Nokia Networks supplies GSM network infrastructure to PGSM and Vodafone
• Community Involvement
• Strong cooperation with major technical universities & colleges
(scholarships, joint curriculum development, lab sponsorships)
• Support to two national children’s hospitals with donations of total Euro
160,000 over a period of 8 years.
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Towards the 4 Billion Milestone
3 000
3 billion
in 2007
2 800
Mobile phone
2 600
subscriptions
2 400
globally,
millions
4 billion
in 2010
2 200
2 000
1 800
1 600
1 400
1 200
Current global
penetration 33 %
1 000
800
600
400
200
Source: Nokia
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-01 -02
-03 -04 -05 -07e -10e
Strong Investment in R&D
R&D expenditure totaled EUR 3,8 billion in 2005 (11.2% of net sales)
EURm
% of net
sales 12%
3500
9%
3000
2500
6%
2000
1500
3%
1000
500
0
0
2002 2003 2004 2005
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Global network with R&D centers in
11 countries
Over 20,000 people in R&D at the
end of 2005 (~36% of employees)
Collaboration with more than 100
universities globally
Role of ICT in the society
• Rapidly growing industrial sector
• An enabler for productivity growth
• Large potential for contribution of ICT
• Wide adoption throughout economy and public service
• Global economic equalizer
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European R&D and Innovation Landscape
• Good, but fragmented scientific
performance
• Declining industrial R&D
• Insufficient innovative performance
• Increasing competition from outside
• Low interest in science and
engineering
• Inability to mobilize sufficient
resources to respond to the global
challenges
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Europe’s R&D Efforts are Lagging Behind
Europe spends less on R&D than its global competitors
3.5
2003 R&D expenditure
3
2.5
Business
2
% of GDP 1.5
1.86
2.31
Government +
other
1.07
1
0.5
0.86
0.9
0.81
EU
US
Japan
0
Source: Towards a European Research Area; Key Figures
2003-2004
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New Competition
• China: over 400 000 new engineers per
year
• Singapore: a new bio-med hub in Asia
• Increasing importance of ICT and bio-med:
US dominance
• Cost competition; a software engineer:
India € 7, China 14, US 44, Germany 54
• New players catching up in the competence
game
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European Paradoxes
• Inventions not converted into new products, jobs and patents
• Small, highly innovative start-ups do not easily grow into big,
globally successful companies
• In many sectors, the adoption of (ICT) innovations has not
resulted in important productivity gains
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Lahti Summit Conclusions in November 2006
1) Establishing European leadership in future strategic
technologies
2) Forging much stronger links between universities,
research and business
3) Improving the framework conditions
• A genuinely integrated Single Market
• Financing innovation
• An improved intellectual property policy
• Faster setting of open and interoperable standards
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Favorable Innovation Environment
Appropriate R&D funding
arrangements
Access to top-level
research
Efficient Internal
market
conditions;
cost efficiency
Companies
Access to high
quality experts and
labour; mobility;
respect for diversity
Efficient VC
markets
Rich fabric of private partners;
enabling vertical and
horizontal integration
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Favourable regulatory
environment (IPR, company
statutes, taxation etc.)
European Technology Platforms for ICT
Mobile and wireless
Communications
eMobility
Networked European
Software and Systems
NESSI
European robotics
platform
European
Nanoelectronics
Initiative
ENIAC
Networked and
Electronic media
NEMI
Embedded Intelligent
Systems
ARTEMIS
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Other possible themes to
be identified later…
Innovation for European Competitiveness
Do not stop: Continue to invest in ICT
Work together: Create meaningful European projects
Think new: Improve overall conditions for innovation
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