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Tempere Findand, Technopolicy 2009

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Delivered by Dr. Kari Kankaala at the Technopolicy Research Network National Conference in 2009, Dr. Kankaala outlines Tempere's economic strategies in a transitioning economy.

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Tempere Findand, Technopolicy 2009

  1. 1. Technopolicy Network Wageningen, Sept 23-25, 2009 By force, by plan, by luckRandom thoughts on structural transformation through cluster development policies Dr. Kari Kankaala, Director, Economic and Urban Development, City of Tampere, Finland
  2. 2. Content2.Scaling factors3.By force: abrupt structural changes4.By plan: (at least in retrospect)5.By luck: certain aspects of ICT6.Some results7.Paradigm lost? 2
  3. 3. Some scaling factors• Region: 350 000 people• GDP per capita 35 000€• R&D investments per capita 2 100€ or 6% of GDP• Most attractive city this decade in Finland (QoL)• Economic history: – Manufacturing (textiles, shoes, locomotives, metal…) prevailed until 1980’s – Early on ICT development, since mid 1960’s – Knowledge based cluster development strategy since early 1990’s, focus on ICT and intelligent machinery• Two universities, two polytechnics, – 35 000 students
  4. 4. Manufacturing downturn 1970’s-80’s• Increasing automation• Increasing labor costs• Increasing cost of energy• Early globalization: – Growth of imports – Relocation of textile industry• Collapse of Soviet trade
  5. 5. Labor force in Tampere 1880 – 200070000 Forestry and agriculture60000 Secondary50000 production Services40000300002000010000 0 1880 1890 1900 1920 1950 1960 1970 1980 1990 2000 1910 1930 1940
  6. 6. A Drastic Downfall Number of employees in the largest industrial companies in Tampere 1964-1997 Aaltonen25000 Finlayson20000 Suomen Trikoo/ Asko-konserni Tamfelt15000 Metsä-Serla10000 Rauma-konserni/ Nordberg-Lokomo Sisu-konserni5000 Valmet/ Valmet- konserni Tampella/Tamrock 0 1964 1970 1975 1981 1985 1989 1993 1995 1996 1997 Source: Olli Niemi, Hermia
  7. 7. Small country strategy● Remote and scarcely populated● Small domestic market● Absolute volume of education & research limited● From economies of scale to economies of scope ● Focus and synergy ● Active positioning ● Networking ● Internationalization ● Interfaces Focus, select
  8. 8. Tampere strategy framework:Drivers for Local Economic Development Local Development • Economy • Population • Labour • Social welfare Capacities Drivers Enablers • Skills • Entrepreneurship • Governance • Social • Innovation • Infrastructure & capital • Learning environment Hard policy instruments Soft policy instruments • Incentives (e.g. finance) • Connecting actors • Norms and regulations • Setting collective visions • Information • Facilitating learning
  9. 9. Early investments in knowledge• No universities in the 1950’s• Intensive regional effort to get national government to establish two• Universities’ foci: one in social innovations, the other on technological innovations and close collaboration with industry• First professorship in ICT in 1965• Regions commitment (industry, local governments) to universities in the long term has created the competitive advantage that the region has today locally and internationally
  10. 10. Ingredients for knowledge based development in Tampere• Strengthening the research and educational base in the 70’s and 80’s• Emergence of ICT industry in the early 80’s• Enhancement of university – industry collaboration since late 70’s through public funding (now termed as triple helix)• Enhancement of university tech transfer to industry and public sector – Establishment of VTT units in Tampere in the 70’s – Hermia and Finn-Medi Science Parks (with content developers!) in the 90’s
  11. 11. Small city solutions, I● Our strategy was to build on the two strengths thatwe had.. ● mechanical engineering and automation ● ICT and wireless technologies●… and to develop two emerging areas into growthsectors … ● health care technology and certain life science areas ● media and content industry●.. and further enhance the development of these fouralso through ● knowledge intensive business services, tourism and conference industry and other supporting activities
  12. 12. Small city solutions, II Offering innovative environments in two major science parks – Hermia and Finn-Medi Running major development programmes – Since early 1990’s – City investments per program 1M€/a – “ROI” 1:15 – 1:40 depending on the program – Centre of Expertise (1994- ), eTampere (2000-2005), BioneXt (2003-2010) , Creative Tampere (2006-2011)
  13. 13. A well kept secret• Nokia corporation has had its largest global R&D site – of all possible locations - in Tampere• Employing some 4000 engineers in R&D • Recently surpassed by Bangalore India• The lucky part • University level ICT research since 1960’s • First professorship in computer science 1965 • Systematic research on signal processing since late 1970’s • Chance, luck: DSP just happened to be the basic technology for mobile phones • A handful of individuals who made it happen
  14. 14. Some ICT milestones achieved in Tampere NOKIA MOBILE PHONES, TAMPERE , FIRST IN THE WORLD 2003 First mobile game deck using Series 60 interface (N-Gage) 2001 First music phone with qwerty keyboard (Nokia 5510) First GSM imaging phone (Nokia 7650) 1999 Nokia C110/C111 Wireless LAN Card 1998 First second generation Communicator (Nokia 9110) 1997 First GSM Card Phone 1999 WAP Server First Data Suite 1999 Wireless LAN 2000 Wireless Mine (Tamrock) 1996 First Communicator (Nokia 9000) 1994 First GSM Data Card (GSM 900)1993 First analog data card in 1993 Source: J.-T. Eriksson, TUT 2003
  15. 15. Population growth and R&D investments in Turku and Tampere regions – identical until early 1990’s Source: Statistics Finland
  16. 16. But paradigms are shifting …• Individual: customer, user, parent, citizen …• Value driven economy: ethics vs. earnings• Globalization: products vs. services• Demogaphics: ageing, work force• Services: where is the service industry lobby• Universities: no longer a monopoly on knowledge creation … or are they?
  17. 17. • new firms PlugnPlay • growth firms Bus Dev • jobs Protomo The Hub IDEAS ENHANCED CONCEPTS EXPERIENCESCompanies Citizens SUGGESTIONSIndustries Communities IDEAS Trade PROTOS DEMOS NEEDS Public sector Demola Customo The New Factory transforms needs and ideas into prototypes and seeds for business both
  18. 18. A future The best public and envrionment for private services for businesses(services, open solutions …) citizens ATTRACTING ATTRACTING COMPANIES INDIVIDUALSBusiness models Good servicesCustomer input Effective servicesUser experiences Private and public solutions New FactoryNew knowledge, innovation, business models
  19. 19. Thank you. Contact info: kari.kankaala Tampere, FIOur world is getting smaller, our challenges are not

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