Deep
Industry - University - Government
Engagement
for the benefit of the Society
Dr. Janne Virtapohja
Asst Director for I...
CONTENTS
• TAMPERE – FROM INDUSTRIAL TO KNOWLEDGE CITY
• WHY NOT A BAYH DOLE TYPE OF LAW IN FINLAND?
• CONTRACT RESEARCH W...
3
TAMPERE
Helsinki
FINLAND
WHERE IS
TAMPERE?
EUROPE
Deep I-U-G Engagement
Dr. Janne Virtapohja
TAMPERE
INDUSTRIAL TO
KNOWLEDGE CITY
Coat of Arms of
The City of Tampere
Deep I-U-G Engagement
Dr. Janne Virtapohja
City of Tampere Was Established in 1779,
230y Ago between Two Lakes
© Olli Niemi, Technology Centre Hermia Ltd
© Tampereen...
In 1839 Tampere Rapids were full of potential energy
B. Lauvergen drawing from Tampere 1839, mill
“Kuusivooninkinen” = Six...
In 1938 the potential was in full exploitation
Picture of the Power station of Tampella 1938
Power from Tampere Rapids
© Olli Niemi, Technology Centre Hermia Ltd
Deep I-U-G Engagement
Dr. Janne Virtapohja
Power from...
Deep I-U-G Engagement
Dr. Janne Virtapohja
SWEDEN
FINLAND
RUSSIA
NORWAY
HANSEATIC LEAGUE, 13th TO 17th CENTURY
TRADING MON...
Forerunner in Applying New Technologies:
1821 1st Textile factory
1837 1st multi-storey factory building + steel pillars i...
05.10.2006
Aaltonen Shoe Factory
Tampella
Finlayson
1960’s
1940’s 1938
Valmet
1945
PL DL, VV, AV
VVPL
Lapinniemi Cotton Mi...
WAR REPARATIONS
1944-1952
Finland agreed to pay war reparations of
US$300 million to the Soviet Union, and
was the only co...
GDP / capita in Finland 1500-2000
and estimates for the next 100 years
Source:
Pentti
Vartia
2007
Source: Gregory Clark, A...
Sources: OECD, Main Science and Technology Indicators and Statistics Finland.
R&D investments in
various countries
Deep I-...
…to a Knowledge City
• First Two Universities Established in the 1960’s
• Strengthening the Research & Education base in t...
WHY NOT A BAYH DOLE
TYPE OF LAW IN FINLAND?
Deep I-U-G Engagement
Dr. Janne Virtapohja
Bayh Dole Act 1980 +/-
Positives – at start
• Uniform IPR Law for all Gov’t funded R&D
• Title to inventions made with Gov...
CONTRACT RESEARCH
WITH INDUSTRY
AT TUT
Deep I-U-G Engagement
Dr. Janne Virtapohja
TUT model
• 350-400 new projects / year
• At any given time 1 000 projects up & running
• NOT a single project without Ind...
Rank Company
Funding,
EUR
1. Nokia 12,892,232
6. Metso Paper 2,436,138
9. Metso Automation 2,299,497
10. Stora Enso 2,077,...
HOW TO MEASURE
TECHNOLOGY TRANSFER
RESULTS AT TUT?
Deep I-U-G Engagement
Dr. Janne Virtapohja
• Nr of Invention Disclosures
• Nr of Patent Applications
• Nr of Granted Patents
• Nr of License Agreements
• Nr of Spin ...
Between 1996 and 2001, Nokia Co’s turnover increased
almost fivefold from EUR 6.5 billion to EUR 31 billion.
In 2008 the t...
Company World market share Products
Nokia 30% telecom solutions
Kalmar, Kone Cargotech > 50% container handling machinery
...
WITH RESULTS
HAVING REAL
IMPACT TO THE
ECONOMY
HOW TO MEASURE TT RESULTS AT TUT?
WHY TUT MODEL WORKS?
• Two Centuries long Industrial Tradition
• “University of Industry” Brand of TUT
• 40y History of Un...
HOW COULD TUT MODEL WORK
IN OTHER COUNTRIES
Deep I-U-G Engagement
Dr. Janne Virtapohja
How could TUT model
work in other countries
1/2
• Sufficient public R&D funding of a nation must be directed to the
techno...
• Gov’t makes sure that the research conducted at Universities has a real need by
Industry
 Industry makes profit
 Indus...
…
2. Project implementation and project accounting
The recipient must implement the project in accordance with the researc...
EXAMPLES OF DEEP
INDUSTRY-UNIVERSITY-GOVERNMENT
ENGAGEMENT
(A.K.A. OPEN INNOVATION)
AT TUT
Deep I-U-G Engagement
Dr. Janne...
Open Innovation of
NRC TUT
Case I – NIC
• NRC + TUT = NIC, Nokia Innovation Center (joint facility,
1st
in Finland), NRC =...
Open Innovation Partners of
Strategic academic partners with whom Nokia has signed formal framework Research Agreements
So...
Open Innovation
Case II – Demola
POOL OF TALENT
www.demola.fi
SINCE
2008
Deep I-U-G Engagement
Dr. Janne Virtapohja
COMPAN...
1820’s
Used by Demola on April 29,
2009
The Weaving Hall of Finlayson
Deep I-U-G Engagement
Dr. Janne Virtapohja
12,500 students (2008)
2,000 personnel, of which 1,200 researchers
140 professors
5 Faculties with 20 Departments
4 Resear...
Emil Aaltonen
1869-1949
Photo1929
Wilhelm von Nottbeck
1816-1890
Photo 1880’s
James Finlayson
1771-1852
Drawing 1890’s
Man...
janne.virtapohja@hotmail.com
Deep I-U-G Engagement
Dr. Janne Virtapohja
DEEP INDUSTRY - UNIVERSITY - GOVERNMENT ENGAGEMENT FOR THE BENEFIT OF THE SOCIETY
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DEEP INDUSTRY - UNIVERSITY - GOVERNMENT ENGAGEMENT FOR THE BENEFIT OF THE SOCIETY

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In this presentation on best practices in Innovation Management, the Deep Industry - University - Government Engagement model originating in the city of Tampere, Finland is explained. The goal of the model is to benefit the country’s Society, instead of benefiting a single company, University or technology transfer office. To understand the current model, it is crucial to look back. For that purpose, the transformation of the city of Tampere from an agrarian city, into an industrialized city, and into a knowledge city is explained, a journey of 230 years. The background for the close Industry-University-Government collaboration and the current most advanced models are explored. Advice is given for the use of the Deep I-U-G Engagement model for the benefit of any country in question.

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  • 1) OECD Science, Technology and Industry Scoreboard 2011, published on September 20, 2011 offers an independent view.
    2) Check www.i-u-g.com and find my article from 2010 on the I-U-G model and comparison to the current US model.
    3) Email me at janne.virtapohja@hotmail.com for more information.
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  • are there comparative reports of the I-U-G model against other models employed?
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DEEP INDUSTRY - UNIVERSITY - GOVERNMENT ENGAGEMENT FOR THE BENEFIT OF THE SOCIETY

  1. 1. Deep Industry - University - Government Engagement for the benefit of the Society Dr. Janne Virtapohja Asst Director for Industrial Membership and Technology Transfer Solar and Alternative Energy Engineering Research Center King Abdullah University of Science and Technology, KAUST Kingdom of Saudi Arabia Deep I-U-G Engagement Dr. Janne Virtapohja
  2. 2. CONTENTS • TAMPERE – FROM INDUSTRIAL TO KNOWLEDGE CITY • WHY NOT A BAYH DOLE TYPE OF LAW IN FINLAND? • CONTRACT RESEARCH WITH INDUSTRY AT TUT • HOW TO MEASURE TECHNOLOGY TRANSFER RESULTS AT TUT? • HOW COULD TUT MODEL WORK IN OTHER COUNTRIES • EXAMPLES OF DEEP I-U-G ENGAGEMENT Deep I-U-G Engagement Dr. Janne Virtapohja
  3. 3. 3 TAMPERE Helsinki FINLAND WHERE IS TAMPERE? EUROPE Deep I-U-G Engagement Dr. Janne Virtapohja
  4. 4. TAMPERE INDUSTRIAL TO KNOWLEDGE CITY Coat of Arms of The City of Tampere Deep I-U-G Engagement Dr. Janne Virtapohja
  5. 5. City of Tampere Was Established in 1779, 230y Ago between Two Lakes © Olli Niemi, Technology Centre Hermia Ltd © Tampereen kaupunkimittausyksikkö 2001 Näsijärvi Pyhäjärvi 18 meters difference: Tampere Rapids Deep I-U-G Engagement Dr. Janne Virtapohja City of Tampere Was Established in 1779 between Two Lakes
  6. 6. In 1839 Tampere Rapids were full of potential energy B. Lauvergen drawing from Tampere 1839, mill “Kuusivooninkinen” = Six Storey
  7. 7. In 1938 the potential was in full exploitation Picture of the Power station of Tampella 1938
  8. 8. Power from Tampere Rapids © Olli Niemi, Technology Centre Hermia Ltd Deep I-U-G Engagement Dr. Janne Virtapohja Power from Tampere Rapids
  9. 9. Deep I-U-G Engagement Dr. Janne Virtapohja SWEDEN FINLAND RUSSIA NORWAY HANSEATIC LEAGUE, 13th TO 17th CENTURY TRADING MONOPOLY – CITIES & ROUTES. BALTIC SEA • In 1820 James Finlayson (born in Glasgow, Scotland) received permission from the Senate of Finland to build a factory in Tampere using water power from the Tammerkoski river. • Finlayson was backed by the Tsar Alexander I of Russia. • Finlayson imported machinists from England to train Finnish workers. • The first factory was completed in 1823 with the aid of state loan with the stipulation that the technology employed could be freely inspected by the public to further civic technological advancement. • Finlayson manufactured machinery suitable for textile industry but in 1828 switched to cotton mills. G – I COLLABORATION IN THE 1800’s Finland was ruled by -Sweden until 1809 -Russia 1809-1917 Finland has been independent since 1917, and a member state of EU since 1995
  10. 10. Forerunner in Applying New Technologies: 1821 1st Textile factory 1837 1st multi-storey factory building + steel pillars in Finland 1843 1st paper machine in Finland 1865 Establishment of Nokia company by Fredrik Idestam At start a pulp mill was built on the banks of the rapids 1875 1st shoe factory in Finland 1882 1st electric light in Northern Europe etc. Tampere High Tech History Deep I-U-G Engagement Dr. Janne Virtapohja Nokia Company logo 1865Nokia Company logo 2010
  11. 11. 05.10.2006 Aaltonen Shoe Factory Tampella Finlayson 1960’s 1940’s 1938 Valmet 1945 PL DL, VV, AV VVPL Lapinniemi Cotton MillTAMPERE
  12. 12. WAR REPARATIONS 1944-1952 Finland agreed to pay war reparations of US$300 million to the Soviet Union, and was the only country in the world to pay what was agreed.  Metal Industry heavily responsible, Tampella Co’s share alone 14 % 31.08.1950 14.02.1950 Kaplan Turbines 728 “narrow track” locomotives, of which 525 type PT-4 locomotives, the largest uniform series in the world.  After all, Beneficial to the Economy of Finland +US$372mi +US$347mi -US$300mi Marshall Plan 1948-1951 +US$385mi Finland agreed to pay war reparations of US$300 million to the Soviet Union, and was the only country in the world to pay what was agreed.  Metal Industry heavily responsible, Tampella Co’s share alone 14 % Deep I-U-G Engagement Dr. Janne Virtapohja
  13. 13. GDP / capita in Finland 1500-2000 and estimates for the next 100 years Source: Pentti Vartia 2007 Source: Gregory Clark, A Farewell to Alms a Brief Economic History of the World (Princeton: Princeton University Press, 2007), 2 Estimated World Income, 1000 BCE-2000 CE (Per Capita)
  14. 14. Sources: OECD, Main Science and Technology Indicators and Statistics Finland. R&D investments in various countries Deep I-U-G Engagement Dr. Janne Virtapohja
  15. 15. …to a Knowledge City • First Two Universities Established in the 1960’s • Strengthening the Research & Education base in the 70’s and 80’s • I-U-G Triple Helix started collaboration in the 80’s • Enhanced U-I Technology Transfer • Knowledge Based Cluster Development Strategy since the 1990’s (ICT & Intelligent Machinery) • Nokia Corporation has its largest global R&D site in Tampere (just recently surpassed by Bangalore) • Nokia has 4 000 Engineers in R&D in Tampere • R&D sites of other companies… Deep I-U-G Engagement Dr. Janne Virtapohja
  16. 16. WHY NOT A BAYH DOLE TYPE OF LAW IN FINLAND? Deep I-U-G Engagement Dr. Janne Virtapohja
  17. 17. Bayh Dole Act 1980 +/- Positives – at start • Uniform IPR Law for all Gov’t funded R&D • Title to inventions made with Gov’t funding belongs to Universities, not Gov’t • Broad freedom for universities to manage IPR • In some cases substantial income for the UNIVERSITY Negatives – the present • University TTO may file a patent application on a basis of a scientific article • Patent application written in a way not useful for Business • Patent application written in a way that further protection is impossible • Only few “Home Runs” in the US, i.e. generating >1 million USD • Small benefit for the COUNTRY • Has generated or is about to generate Bayh Dole type laws in other countries Deep I-U-G Engagement Dr. Janne Virtapohja
  18. 18. CONTRACT RESEARCH WITH INDUSTRY AT TUT Deep I-U-G Engagement Dr. Janne Virtapohja
  19. 19. TUT model • 350-400 new projects / year • At any given time 1 000 projects up & running • NOT a single project without Industry Partner(s) • IP (ownership, price, etc.) negotiated in advance • University owns IP rarely • It is possible for the University to own IP & sometimes necessary • Industry regularly involved in carrying out projects • Outcome is what Industry needs • Industry makes profit, pays taxes, contributes to the Society • Benefit to the local economy, in this case Finland • Gov’t support to companies: Nokia, Metso, Stora Enso, Outokumpu Deep I-U-G Engagement Dr. Janne Virtapohja
  20. 20. Rank Company Funding, EUR 1. Nokia 12,892,232 6. Metso Paper 2,436,138 9. Metso Automation 2,299,497 10. Stora Enso 2,077,572 11. Outokumpu Research 2,039,038 Companies receiving public funding from the Natl Technology Agency (Tekes) in 2004 12,3 % 11,1 % 31,1 % Gov’t ownership 2009 Owned by Finns 2009 13,0 % Deep I-U-G Engagement Dr. Janne Virtapohja
  21. 21. HOW TO MEASURE TECHNOLOGY TRANSFER RESULTS AT TUT? Deep I-U-G Engagement Dr. Janne Virtapohja
  22. 22. • Nr of Invention Disclosures • Nr of Patent Applications • Nr of Granted Patents • Nr of License Agreements • Nr of Spin off Companies • $ generated for the OFFICE • Growth of companies • Growth of Country GDP HOW TO MEASURE TT RESULTS AT TUT? University Tech Trans Office OR Industry & Country Measures Deep I-U-G Engagement Dr. Janne Virtapohja
  23. 23. Between 1996 and 2001, Nokia Co’s turnover increased almost fivefold from EUR 6.5 billion to EUR 31 billion. In 2008 the turnover of Nokia was EUR 51 billion. Source: Nokia Annual Reports Fixed priced quarterly GDP of Finland in billions of euro. Source: Statistics Finland Forecasts: ETLA 2008 GDP (nominal)/cap 52 000 USD (US 47 000 USD) GDP (PPP)/capita 36 000 USD (US 47 000 USD) Source: IMF Case Finland
  24. 24. Company World market share Products Nokia 30% telecom solutions Kalmar, Kone Cargotech > 50% container handling machinery Sandvik-Tamrock* 35% mining and construction machinery Timberjack, John Deere* 47% forest machinery Metso Automation > 15% automation for process industry Metso Minerals 15% mobile rock crushers Kvaerner Power* 30% ‘green’ boilers Tamglass > 50% safety glass machinery (architectural and automotive) Bronto Skylift, FSC* > 60% fire and rescue platforms Fastems 70% FMS multilevel flexible manufacturing systems Ata Gears 50% spiral bevel gears for marine applications Tamrotor, Gardner Denver* 30% ship compressors Avant Tecno 40% mini loaders (max. one ton) Nokian Tyres 30% eco / intelligent tyres Sisu Diesel, Agco Group* 10% diesel engines Raflatac 35% self adhesive laminates (+ RFID) Global Market Leaders in Tampere Region (2005)Global Market Leaders in Tampere Region (2005) …its not all about Nokia! *Foreigninvestments Deep I-U-G Engagement Dr. Janne Virtapohja
  25. 25. WITH RESULTS HAVING REAL IMPACT TO THE ECONOMY HOW TO MEASURE TT RESULTS AT TUT?
  26. 26. WHY TUT MODEL WORKS? • Two Centuries long Industrial Tradition • “University of Industry” Brand of TUT • 40y History of Uni – same today as at start! • TUT Operates as Foundation 01.01.2010  Deep I-U-G Engagement Dr. Janne Virtapohja
  27. 27. HOW COULD TUT MODEL WORK IN OTHER COUNTRIES Deep I-U-G Engagement Dr. Janne Virtapohja
  28. 28. How could TUT model work in other countries 1/2 • Sufficient public R&D funding of a nation must be directed to the technology areas most important to the country, it’s people and it’s future. • General thinking (in Finland) is that it is not wrong to support existing well profitable companies, when the result is more well being for the society. • The magic is done with Industry-University-Government Triple Helix. Universities play a role with the R&D funded by companies & Government. By engaging with Universities, companies will get less costly high quality research. - In Gov’t funding to Universities, Gov’t expects Industry involvement - In Gov’t funding to Industry, Gov’t expects University involvement Nowadays: Quartet of Industry – University – Government – USER Deep I-U-G Engagement Dr. Janne Virtapohja
  29. 29. • Gov’t makes sure that the research conducted at Universities has a real need by Industry  Industry makes profit  Industry pays taxes to the Gov’t and in other ways benefits Gov’t & Society  Industry Employs the citizens  Gov’t reinvests in public R&D  Beneficiary is the society, “tax payers” in the Western world • In Finland, this has been done over and over again with I-U-G for three decades, it’s a cycle leading at it’s best to more and more benefit… • Adopting the same model in other countries: The Gov’t organization granting the public funding will determine the rules for the use of the funding • In any country, the TERMS (For example Tekes terms) on how to use research funding are critical  How could TUT model work in other countries 2/2 Deep I-U-G Engagement Dr. Janne Virtapohja
  30. 30. … 2. Project implementation and project accounting The recipient must implement the project in accordance with the research funding decision. 2.1 Project Steering Group – members, tasks and decision-making The implementation of the project shall be steered and supervised by a Steering Group. The Steering Group shall monitor the progress made, support the realization of the project objectives with its expertise and facilitate the transfer of knowledge created to those utilizing and exploiting it. Finnish Funding Agency for Technology and Innovation (hereinafter “Tekes”) shall approve the members of the Steering Group, taking the size of the project and the funding contribution of the different financiers into consideration. The Steering Group shall also include a representative of Tekes. In its first meeting the Steering Group shall agree on its meeting schedule and procedure as well as its decision-making procedure. The decisions made by the Steering Group’s first meeting and any significant changes to the project must be subjected to the approval of all of the financiers. See also Section 7. During the project the Steering Group shall provide Tekes with confirmation of any proposals for changes to the project made by the Accountable Project Leader. … GENERAL TERMS AND CONDITIONS 1 (9) Government Agencies and Institutes http://www.tekes.fi/en/ Deep I-U-G Engagement Dr. Janne Virtapohja
  31. 31. EXAMPLES OF DEEP INDUSTRY-UNIVERSITY-GOVERNMENT ENGAGEMENT (A.K.A. OPEN INNOVATION) AT TUT Deep I-U-G Engagement Dr. Janne Virtapohja
  32. 32. Open Innovation of NRC TUT Case I – NIC • NRC + TUT = NIC, Nokia Innovation Center (joint facility, 1st in Finland), NRC = Nokia Research Center • 16 Professors, 50 Ph.D. Students • Publicly funded projects • Agreement between Nokia and TUT • Nokia uses the brain power of TUT for Nokia purposes New science for TUT  New business, renewing of business, etc. for Nokia • TUT students/researchers checked & best employed SINCE 2007 Deep I-U-G Engagement Dr. Janne Virtapohja
  33. 33. Open Innovation Partners of Strategic academic partners with whom Nokia has signed formal framework Research Agreements Source: http://research.nokia.com/openinnovation
  34. 34. Open Innovation Case II – Demola POOL OF TALENT www.demola.fi SINCE 2008 Deep I-U-G Engagement Dr. Janne Virtapohja COMPANIES WITH IDEAS
  35. 35. 1820’s Used by Demola on April 29, 2009 The Weaving Hall of Finlayson Deep I-U-G Engagement Dr. Janne Virtapohja
  36. 36. 12,500 students (2008) 2,000 personnel, of which 1,200 researchers 140 professors 5 Faculties with 20 Departments 4 Research / Education Centers Annual numbers: 1,250 student intake 800 M.Sc. (Eng) + 30 architects 70 Ph.D. 37 What is Industry after at TUT? www.tut.fi Deep I-U-G Engagement Dr. Janne Virtapohja Tampere University of Technology (est. 1965)
  37. 37. Emil Aaltonen 1869-1949 Photo1929 Wilhelm von Nottbeck 1816-1890 Photo 1880’s James Finlayson 1771-1852 Drawing 1890’s Many thanks to the Photo Archives of Tampere Museums, and a vast number of Tampere individuals Fredrik Idestam 1838-1916 Photo “1800-1900” Deep I-U-G Engagement Dr. Janne Virtapohja
  38. 38. janne.virtapohja@hotmail.com Deep I-U-G Engagement Dr. Janne Virtapohja

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