Finland tops patents per capita charts, year after year.
Problem isn’t in creating innovations, it’s in how to capitalise them.
Per 100M€ in research Source: Sitra Report by Kankaala Finland UK US Invention Disclosures 40 28 87 Patents 7 15 11 Licensing income 250k € (2005) 1 600k € (2004) 7 000k € (2004) Spinouts 5 6 1
Whose job is it then?
Universities, Large Corporations, Startups?
Not in that business – we research.
We carefully review our investments and focus on incremental innovations.
They offer best risk-return ratio
for high risk investments.
Finland vs Israel vs Massachusetts Source: VICTA Report by Ruohonen (2007) Finland Israel Massachusetts Population (M) 5,2 6,9 6,3 Share of Academic degrees 25 25 NA Number of new companies annually 23 000 20 000 27 000 R&D investments % of GDP 3,5 4,1 4,9 Patents filed per million per capita 166 186 300
Finland vs Israel vs Massachusetts Source: VICTA Report by Ruohonen (2007) Finland Israel Massachusetts Avg. initial investment 0,3 2,8 6,2 Total annual volume of VC investments M$ 220 1 650 2 400 Number of companies in Deloitte Fast Growth 500 4 44 36 Annual IPOs 1 35 (H1/2007) 9 Active early stage VC funds 10 60 50 Global R&D centers of major coporations 5-6 30-40 10-20
Our challenge summarised
We lack the entrepreneurial culture.
<2> The solution
Build a healthy networked startup community.
Baby steps on many fronts.
Fill the gaps the private sector is unable to fill and catalyze those where private sector is active.
The basis is in the infrastructure. Support and praise innovation, don’t limit it.
Skype. Built on peer-to-peer filesharing technology.
Acquired by eBay for 2.6B USD.
Spotify. Built on peer-to-peer filesharing technology.
Hottest music startup in Europe.
Do avoid this:
“I'm a guy who doesn't see anything good having come from the internet. Period.”
-Michael Lynton, CEO, Sony Pictures
Creating a culture is the most important issue.
If we learn anything from the history of economic development, it is that culture makes almost all the difference. You can build as many incubators as you like, but if only 3% of the population want to be entrepreneurs, as in Finland, you will have trouble creating an entrepreneurial economy.
Source: The Economist; Heroic Entrepreneurs (March 12 th , 2009)
Some examples from Finland
Intl concepts: Open Coffee, MobileMonday
45 million € fund
High profile mentors and board
Virtual high growth incubator
Strict criteria and guidelines
Aalto Entrepreneurship Society
Most active new group of Aalto University
Open Coffee, etc.
Mainly networking events, gatherings to share ideas, meet new people and brainstorm.
Create a radically optimistic startup culture in the Nordics and Baltics.
Media + Events + Online service
Over 10 000 visitors from 130 countries
Initiated 4 investment rounds
Praise from gov’t organisations, VCs and entrepreneurs
Nokia – Innovation Mill
Opens patent portfolio to 100 carefully selected startups.
Works with incubators and universities to commercialise.