Tekes – Promoter of Innovation and Technology Development in Finland

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Presentation by Mr. Veli-Pekka Saarnivaara (Director General, Tekes - Finnish Funding Agency for Technology and Innovation) on "Tekes – Promoter of Innovation and Technology Development in Finland" during the study visit of the sub-committee on Innovative workplaces to Helsinki on 25 January 2011

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  • University of Groningen, http://www.ggdc.net/dseries/icop97.shtmlValitaan Downloadable file: Manufacturing Productivity and Unit Labour Cost Database.Sieltä löytyy kullekin maalle arvo Value added per hour worked - total manufacturing.Niiden pohjalta lasketaan vertailuluvut käyttäen Suomen arvoa satana.Tuottavuuden kasvussa on huomattavia toimialakohtaisia eroja. Metallituoteteollisuuden tuottavuuden kasvu on huolestuttavasti pysähtynyt. Koko kansantalouden tuottavuuden kehitys on ollut alhaisempaa, mikä johtuu muun muassa julkisen sektorin suuresta osuudesta kansantaloudessa, palveluiden alhaisesta tuottavuuskehityksestä sekä kotimarkkinoiden sulkeutuneisuudesta.
  • Tekes – Promoter of Innovation and Technology Development in Finland

    1. 1. Workshop on Innovative Workplaces<br />EESC “Sub-committee on Innovative Workplaces<br />Tekes – Promoter of Innovation and Technology in Finland<br />Veli-Pekka Saarnivaara<br />Director General, CEO, Tekes<br />25.1.2011<br />
    2. 2. Tekes – Promoter of Innovation and Technology in FinlandFinnish Innovation Policy<br />Performance of Finland<br />Global and special Finnish challenges<br />Priorities of Finnish innovation policy<br />Public actors of research and innovation in Finland<br />Tekes – Finnish Funding Agency for Technology and Innovation<br />Integration of technological and workplace innovation<br />Productivity increase<br />Improving the quality of working life<br />Helping people to continue in working life for longer<br />
    3. 3. Labour productivity in industry andprivate services<br />Sources: EUKLEMS and calculations by ETLA<br />03-2010<br />1995=100<br />Euros per hour worked<br />DM 36054 and 218475<br />
    4. 4. Volume index of industrial production<br />Industrial production has grown faster in Finland than in other developed nations.<br />Source: Eurostat<br />05-2009<br />1995=100<br />DM 36054 and 218475<br />
    5. 5. GDP per capita<br />GDP for 2009 partly estimated.Sources: Eurostat and calculations by ETLA<br />03-2010<br />DM 218475<br />GDP in Finland has grown at a rate faster than theOECD average both before and after the recession in the beginning of 90’s.<br />1,000 euros,  based on purchasing power parities for the year 2004<br />
    6. 6. 02-2010<br />DM632200<br />“Denmark, Finland, Germany, Sweden and the UK are the Innovation leaders, with innovation performance well above the EU27 average and all other countries. Of these countries, Germany and Finland are improving their performance fastest while Denmark and the UK are stagnating.”<br />
    7. 7. 12-2010<br />DM7363480<br />OECD Science, Technology and Industry Outlook 2010<br />”Finland’s innovation investment and performance are among the strongest in the OECD area. Collaboration with other countries is at a high level, and a large proportion of the labour force has a tertiary qualification.”<br />
    8. 8. Global and Finnish Challenges<br />Global distribution of work<br />Geographic clusters are disintegrated to global value chains<br />Energy and climate change<br />Fast development and transfer of technology<br />Demographic development – ageing<br />Heterogeneous university system<br />Low internationalization of universities and sme’s (and whole population)<br />Start up’s – growth and internationalization of young companies<br />Services<br />Modest productivity change in public services<br />Innovations in services<br />
    9. 9. 01-2011<br />DM 218475<br />Priorities in innovation policy<br />R&D investments from 3,5 up to 4% of GDP<br />Broad Innovation strategy<br /> Technical and societal innovations<br /> Systemic approachReform of University system<br />International cooperation<br />Labour<br />Economic growth<br />Increase in exports<br />Know-how<br />Education<br />Improvement inemployment<br />Research<br />Knowledge<br />Growth in productivity<br />Regional development<br />Technology<br />Innovation<br />Growth in well-being<br />Creative individuals and communities<br />Customer and user orientation Open innovation<br />Pioneering markets<br />Capital<br />According to the new growth model, economic growth is rooted in education, research and technology.<br />
    10. 10. PARLIAMENT<br />GOVERNMENT<br />Otherministriesand theirinstitutes<br />MinistryofEducation<br />AcademyofFinland<br />Tekes<br />Sitra<br />Finnvera plc<br />Finpro<br />FinnishIndustryInvestment Ltd<br />Universities<br />VTT<br />RegionalTE-Centres<br />Public sector activities of R&D in Finland<br />Research andInnovationCouncil<br />Ministry ofEmployment and the Economy<br />DM 36100<br /> 01-2009 Copyright © Tekes<br />
    11. 11. Tekes aims to<br />build a strong networked knowledge base<br />renew the economy and create new businesses<br />increase productivity in industries and service sector<br />enhance wellbeing in society and improve environmental sustainability<br />11-2009<br />DM 607668<br />
    12. 12. Expertise and networks for innovations<br />Tekes's services<br />Funding for innovative private and public R&D<br />Networking Finnish and global companies and researchers<br />Customers<br />Finnish and international companies located in Finland<br />Universities, research institutes<br />Public service providers<br />Resources<br />Budget: 600 million € annually <br />Personnel: 360 in Finland and abroad<br />11-2009<br />DM 607668<br />
    13. 13. Tekes R&D funding in 2009<br />Total 579 million euros and 2,177 projects<br />Figures include 12 million € funding for Workplace Development Programme TYKES and 22 million € funding from EU Structural Funds.<br />01-2010<br />R&D grants <br />to companies and public organisations<br />246 million euros<br />Research fundingfor universities,research institutesand polytechnics236 million euros<br />R&DLoans to companies97 million euros<br />DM 624592 and 607668<br />
    14. 14. How do we work?<br />Tekes encourages companies to do challenging R&D <br />Funding for the creation of new know-how and development of products, processes and services or business concepts<br />We accept more risks than private financiers<br />Tekes funds public research in universities and research institutes<br />Tekes facilitates collaboration and networking<br />between small and large businesses <br />industry and the academia<br />public and private organisations<br />globally – nationally – regionally <br />The collaboration is boosted by funding criteria and co-operative programmes <br />11-2009<br />DM 607668<br />
    15. 15. Ease of cooperation with universities<br />As % of total innovative enterprises<br />40<br />36<br />35<br />30<br />25<br />19<br />20<br />15<br />14<br />15<br />9<br />9<br />9<br />10<br />8<br />8<br />8<br />8<br />6<br />4<br />5<br />2<br />0<br />IT<br />LU<br />NL<br />PT<br />UK<br />IE<br />ES<br />DE<br />AT<br />FR<br />BE<br />DK<br />SE<br />FI<br />Source: Science, Technology and Innovation in the Netherlands, 2004. Min. of Education and Min. of Economic Affairs<br />
    16. 16. Half of the funded projects areinternationally networked<br />Any international company located in Finland is eligible for Tekes's funding, regardless of ownership.<br />11-2009<br />DM 607668<br />International activities in projectsfunded by Tekes in 2006 - 2008<br />
    17. 17. Focus of Tekes funding in 2009<br />Tekes funding for the service sector<br />Tekes funding for energy andenvironment targets<br />Tekes funding for applications andutilisation of ICT<br />Tekes funding for the wellbeingand health theme<br />Tekes funding for non-technicaldevelopment (business and service concepts, branding, workplace innovations, design....<br />01-2010<br />DM 624592<br />165 mill.euros<br />238 mill.euros<br />212 mill.euros<br />53 mill.euros<br />234 mill.euros<br />50 % of the funding forcompanies<br />41 %of the funding<br />37 %of the funding<br />9 %of the funding<br />41 %of the funding<br />
    18. 18. In the future, economic growth is very much based on productivity increase, which mainly comes from intangible investments. <br />Impact of different factors in the increase of added value in Finland<br />Intangible business investments are the main sources of productivity growth ( MPF)<br />Share of effect on productivity growth<br />%<br />Multifactory productivity (MPF)<br />Labor<br />Capital<br />Average 1995-2007<br />Economic competencies<br /><ul><li> Business concept
    19. 19. Brand
    20. 20. Human capital
    21. 21. Organisational structure
    22. 22. Workplace development</li></ul>2 %<br />1 %<br />0,8 %<br />0,5<br />Computerised information<br />0,5<br />R&D<br />Other innovative property<br />The impact of r&d investments in productivity growth can be increased by combining them with other business intangible investments leading to integrated innovations.<br />Source: Statistics Finland<br />Copyright © Tekes<br />
    23. 23. Conclusions<br /><ul><li> Productivity increase is a must to improve competitiveness and optimize national resources
    24. 24. Increase of added value
    25. 25. Increase of effectiveness of processes
    26. 26. Quality of working life is a need and an intrinsic value as such
    27. 27. Helping people to continue in working life for longer helps also to increase added value
    28. 28. Competitiveness and productivity can be improved faster by integrating traditional r&d&i and workplace innovations to be done parallel</li>

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