8.4 Cash, Debit, or Credit?Personal Finance Portfolio: Part 6 What are the advantages and disadvantages of each type of way to spend money? Use the chart comparing the advantages and disadvantages of using cash, debit cards, and credit cards in order to organize your research for answer the four questions in the Personal Finance Portfolio: Part 6. You may want to refer to 5.3 Comparing Credit Card Offers from Unit 5 for further information. Payment Type Advantages Disadvantages Cash Debit Cards Credit Cards NOKIA TO GIVE AWAY IDEAS AND INNOVATIONS Nokia has decided to give away some of its unused ideas and innovations in a bid to see whether other companies can make worthwhile businesses out of them. The Finnish telecommunications giant will give away innovations in areas such as environmental and energy-related solutions, location-based services and advertising, near-field communication, mobile security, healthcare, and future Internet services, among others. Nokia will work with Tekes, the government’s innovation funding agency; Technopolis, a national chain of science parks; and several Finnish cities to comb through “thousands” of ideas to extract 100 of the most promising. The team, known as the Nokia Technopolis Innovation Mill, will then try to match each idea to a company that it believes could make good use of it. Funding of up to $11.11 million for the three-year scheme, including up to $6.27 million of public money, will come from Tekes, six municipalities that each host at least one Technopolis facility, and the companies themselves. Technopolis will coordinate the initiative and provide business development services. In part, the move is a response to the 2008-2009 financial crisis, which has seen Nokia and other high-technology companies in Finland shed jobs. “Speeding up the economy calls for a new degree of openness,” said Esko Aho, executive vice president, corporate relations and responsibility at Nokia. “We hope that the Nokia Technopolis Innovation Mill sets an example that companies across other sectors will follow. The current economic climate is just right for a critical evaluation of intellectual property portfolios and the release of innovations that are more suitable for others to exploit,” Aho added. Keith Silverang, CEO of Technopolis, said: “We have 1,200 customers as tenants on one or more of our campuses in Finland and St. Petersburg, Russia, as well 200 virtual clients for our business development services. We have enough critical mass in our existing client base to generate great cases but this is an open program so any company can apply, with one catch: because the program is funded by taxpayers and by six Finnish municipalities they’ll want a domestic element. International organizations would have to engage through a subsidiary here that does product development.” What’s in it for Nokia? There are two potential paybacks for the company. The first comes if Nokia can get some of its unused ide ...

1. 8.4 Cash, Debit, or Credit?Personal Finance Portfolio: Part 6
What are the advantages and disadvantages of each type of way
to spend money?
Use the chart comparing the advantages and disadvantages of
using cash, debit cards, and credit cards in order to organize
your research for answer the four questions in the Personal
Finance Portfolio: Part 6.
You may want to refer to 5.3 Comparing Credit Card Offers
from Unit 5 for further information.
Payment Type
Advantages
Disadvantages
Cash
Debit Cards
Credit Cards
NOKIA TO GIVE AWAY IDEAS AND INNOVATIONS
Nokia has decided to give away some of its unused ideas and
innovations in a bid to see whether other companies can make
worthwhile businesses out of them. The Finnish
telecommunications giant will give away innovations in areas
such as environmental and energy-related solutions, location-
based services and advertising, near-field communication,

2. mobile security, healthcare, and future Internet services, among
others.
Nokia will work with Tekes, the government’s innovation
funding agency; Technopolis, a national chain of science parks;
and several Finnish cities to comb through “thousands” of ideas
to extract 100 of the most promising. The team, known as the
Nokia Technopolis Innovation Mill, will then try to match each
idea to a company that it believes could make good use of it.
Funding of up to $11.11 million for the three-year scheme,
including up to $6.27 million of public money, will come from
Tekes, six municipalities that each host at least one Technopolis
facility, and the companies themselves. Technopolis will
coordinate the initiative and provide business development
services.
In part, the move is a response to the 2008-2009 financial crisis,
which has seen Nokia and other high-technology companies in
Finland shed jobs. “Speeding up the economy calls for a new
degree of openness,” said Esko Aho, executive vice president,
corporate relations and responsibility at Nokia. “We hope that
the Nokia Technopolis Innovation Mill sets an example that
companies across other sectors will follow. The current
economic climate is just right for a critical evaluation of
intellectual property portfolios and the release of innovations
that are more suitable for others to exploit,” Aho added.
Keith Silverang, CEO of Technopolis, said: “We have 1,200
customers as tenants on one or more of our campuses in Finland
and St. Petersburg, Russia, as well 200 virtual clients for our
business development services. We have enough critical mass in
our existing client base to generate great cases but this is an
open program so any company can apply, with one catch:
because the program is funded by taxpayers and by six Finnish
municipalities they’ll want a domestic element. International
organizations would have to engage through a subsidiary here
that does product development.”
What’s in it for Nokia? There are two potential paybacks for the
company. The first comes if Nokia can get some of its unused

3. ideas taken up externally, so that someone else makes a return.
Because the ideas were developed within the context of Nokia’s
business, if third parties can make them work commercially then
the company may be able to make money by providing
supporting products or services. The second is the public
relations value for the company at a challenging time for the
global economy.
Nokia is also an extremely important company in the Finnish
economy, so if it can release ideas that others can capitalize
upon, it helps stimulate the Finnish economy. Martti af Heurlin,
deputy director general of Tekes, the funding agency,
emphasized Nokia’s place in Finland’s innovation ecosystem:
“Nokia’s role in Finland is really important. One-third of
innovation investment in Finland comes from Nokia, one-third
from the public sector and one-third from other companies,” he
said. According to Heurlin, the final evaluation of an idea’s
suitability for funding will remain with Tekes, which is building
a special team of experts to do this evaluation work, drawing on
Tekes’ pool of 200 experts who together cover a wide range of
knowledge areas. Four positive funding decisions have already
been done. Information about the deals will be released by
Technopolis in the near future.
According to Silverang, Nokia will give away its IP but
maintain a parallel right to use it. He agrees that the program
has excellent PR value, but feels there is more to it than that.
“What they get out of it is a ‘good citizenship’ coin, because
they’re downsizing at the moment. They’re softening the blow
by saying that despite reducing its workforce in one subsection
of the economy, they’re trying to increase it in another. It’s
very smart.” Silverang speculated that Nokia may also be using
the Innovation Mill process to try and identify a “second wave”
of service providers and qualified subcontractors, in keeping
with its strategy to diversify from devices into services, who
will be much more service-oriented than today’s suppliers.
Silverang sees the Innovation Mill as the beginning of
something bigger: a reshaping of Finland’s innovation

4. landscape. “What we’re after is to boost the Finnish innovation
system using primarily private rather than public innovation
entities,” he said. “Our role as a chain of science parks in
Finland, Russia and soon other countries puts us in a unique
position to initiate this new kind of innovation system. The
current innovation system is based heavily on creating research-
based intellectual property rights and then using science parks
to move them into commercialization. By linking our parks in
Finland and abroad to each other and a global network of
qualified risk financiers, service providers and reference
customers I believe we can accelerate the innovation process by
using our anchor companies, SMEs and service providers to spin
out and commercialize business ideas. You get much more rapid
growth with this approach than by taking a team out of a
university and trying to turn them into serial entrepreneurs.
“With a virtual network of financiers, distribution channels and
experts we can source innovation wherever [we find it] and as
Technopolis grows we can bring new cases in from anywhere in
the world. Our dream is to become a chain of global knowledge
communities.”
Silverang sees the Innovation Mill approach as something that
could be copied and pasted. “We’re going to replicate this right
now. We are talking to other anchor companies and clusters
about copying this, companies that are mature enough to be
influential within their own niches,” he said. Marttiaf Heurlin
agrees: “If it works well I see no problem in expanding this
approach to other companies or even groups of companies.”
Questions:
Q1: Do a SWOT analysis of the current situation from the Nokia
perspective
Q2: Nokia uses the Innovation Mill to unite it with
complementary resources it does not possess and to achieve
socially responsible objectives. Which type of device (from Ch.
6) is the Innovation Mill?

5. a. Mergers & acquisitions
b. Vertical integration
c. Strategic alliance
Q3: What is the valuable “combination of resources” here
sought by Nokia? In other words, who are the multiple
stakeholders involved, what resources does each contribute, and
how will this combination of resources add value to Nokia’s
unused innovations?
Q4: Describe how Nokia’s strategy might neutralize its
weaknesses and, at the same time, addresses both product
diversification (profits) and socially-responsible (people)
objectives.