The document discusses the development of regional innovation ecosystems through strategies such as RIS3 and Horizon 2020, emphasizing the importance of societal impact, user-driven development, and synergy between different funding sources. It outlines the challenges and steps involved in implementing smart specialization strategies, targeting innovation leaders and those lagging behind. Additionally, it highlights the collaborative efforts in the Helsinki region and other areas to foster sustainable innovation through education, research, and stakeholder engagement.

1. Markku
Markkula
• EU Committee of
the Regions
CoR, Rapporteur on
H2020
• Aalto
University, Advisor to
the Aalto Presidents
• Helsinki Region,
Chair of the Steering
Board for Using
Structural Funds
markku.markkula@aalto.fi
Developing Regional Innovation
Ecosystems through RIS3, Horizon 2020
and European Partnerships
My starting point for the presentation is the new
programme period landscape painted by the following
new drivers of change and new critical success factors:
1. Focus on impact, especially societal impact
2. More innovations out of research
3. User-driven development: citizens and communities
of practice
4. Regional innovation strategies based on Smart
Specialisation RIS3
5. From traditional clusters and triple helix to regional
innovation ecosystems
6. More multi-disciplinary and breaking the boarders
7. Mindset/mentality is the most crucial success factor
8. Use of cohesion funds on innovation and capacity
building
9. Synergy in using Horizon 2020 and Cohesion funds
10. Multi-financing

2. Smart Cities & Smart Regions Are Needed
to Speed up and Scale up
EU2020 Implementation – Key Elements Are
More
Societal
Innovations
Digitalized Real
Life Test-beds
Regional
Innovation
Ecosystems
Pioneering
EU2020
Open Innovation &
Smart Specialization
Urban
Design
Solutions
Scientific Excellence & Industrial Leadership
Markku Markkula, markku.markkula@aalto.fi
Chair CoR-EPP Task Force on Europe 2020, Aalto University, Finland

3. Horizon and Cohesion Funds Go Hand-in-Hand
In addition to Scientific
Excellence, H2020 will focus
on industrial leadership and
societal
challenges, maximizing the
competitiveness impact of
R&I, as well as raising and
spreading levels of
excellence.
Besides improving the
innovation
ecosystems, Cohesion policy
will partly increase the
capacity of regions to
participate in H2020 and partly
fund R&D&I activities in a
region that can build on
H2020.
Both should have a strong base on European Partnerships
RIS3 new opportunities
are open for our use.

4. Guidelines for Combined Funding
Within a programme, a project or a group of projects, the use of different EU
funding sources with many types of local funding is encouraged. RIS3 seeks to
exploit complementarities and synergies, however avoiding overlaps and
excluding double-financing.
Examples:
• Joint use of H2020 and ESIF funds to cover different cost items in a single
project.
• Separate (not legally linked) projects financed through H2020 and ESIF and
orchestrated to have synergic collaboration and stronger impact.
• ESIF funding is not legally linked to H2020 project, but a regional authority
decides to fund beneficiaries to enhance the H2020 project in the region.
• ESIF to be used (with very little administration) to finance a project
proposal which had a positive evaluation under H2020, but could not be
funded due to a lack of H2020 funds under the call.
Regions to apply these and other policy guidelines in their use and in
partnering  RIS3 process on a continuous basis.
RIS3 new opportunities
are open for our use.

5. “Smart Specialization Strategies for Research and
Innovation. Different regions different approaches”
• Our CoR experiences coming from many regions give a strong support on the
following Smart Specialisation Platform statements: “RIS3 is an economic
transformation agenda. RIS3 is a dynamic and evolutionary process (not a
structure) deeply grounded in an entrepreneurial discovery process (not a
one-off action) where governments are rather facilitators than in a position
of command and control. RIS3 is for innovation leaders and for those lagging
behind.”
• The smart specialisation approach is not just about a more focused and
limited approach to cluster funding. RIS3 is a structural reform to upgrade the
entire business environment and innovation ecosystem in the region.
• Smart specialization is opening up important opportunities for joining
forces, matching roadmaps and building more world-class clusters.
• Regions can now spend up to 15% of their funds outside their programme
area, if it is to the benefit of their territory.
RIS3 new opportunities
are open for our use.

6. Manuel Palazuelos Martinez, Platforma S3
, IPTS (DG JRC), Comisión Europea, Sevilla
17.12.2013

7. Manuel Palazuelos Martinez, Platforma S3
, IPTS (DG JRC), Comisión Europea, Sevilla
17.12.2013
From RIS to RIS3 Building on the past
• Widespread experience of national/regional innovation
strategies in the framework of the EU Cohesion Policy
• Achieved greater co-operation among private and public
stakeholders and better communication between technology
providers and clients
Breaking with the past (weaknesses in the period 2007-2013)
• Not in tune with the industrial and economic fabric of
regions
• Too narrow vision of 'technological' innovation
• The best performing regions were just copied or resources
spread across 'all sectors'
• Lack of international and trans-regional perspective

8. Smart Specialisation Strategies
as Iterative, Tailor-made Policy Processes
The S3 design process can be described through “six steps”, each of
which relates to the process rather than a theory or even any
specific policy objective:
Step 1: Analyse the regional context and potential for innovation;
Step 2: Ensure participation and ownership;
Step 3: Elaborate an overall vision for the future of the region;
Step 4: Identify priorities;
Step 5: Define a coherent policy mix and action plan;
Step 6: Integrate monitoring and evaluation mechanisms.
Markku Markkula CoR Innovation Union keynote
on 27 Nov 2013, based on “The role of clusters in smart
specialisation strategies”, DG Research and Innovation
RIS3 new opportunities
are open for our use.

9. Why Regional Innovation Ecosystems?
Critical Aspects of Innovation and Value Creation
1. Professor C.K. Prahalad gave a clear message also to universities by defining
three critical aspects of innovation and value creation (Source Open Innovation Yearbook
2012, DG INSFO):
1) Value will increasingly be co-created with customers.
2) No single firm has the knowledge, skills, and resources it
needs to co-create value with customers.
3) The emerging markets can be a source of innovation.
The competitive arena is shifting from a product-centric paradigm of
value creation to a personalized experience-centric view of value
creation.
2. Professor Erkki Ormala in his presentation EU Regions and Horizon 2020
(Source ManETEI final conference 4 December 2013 at Aalto): “From traditional large
enterprise to extended enterprise (in which the role of partners
is much larger) with orchestration capability”.
We need to react on the changing innovation landscape. Universities
need to learn from business life to modernize their operations.
Markku Markkula, markku.markkula@aalto.fi
Chair CoR-EPP Task Force on Europe 2020, Aalto University, Finland

10. We need to react on the changing innovation
landscape. Orchestration is the key for success.
Erkki Ormala, Professor Aalto University,
Former Vice-President, Business Environment, Nokia

11. Universities should analyse the ecosystems through several layers:
Interacting Learning & Research & Innovation Activities
Three Steps to Understand the System:
Identify
Societal / Market Needs
& define system
requirements & barriers
Integrate Fundamental
Research & Innovation
Knowledge into
Enabling Technologies
Develop Useful Insights from
Fundamental Knowledge
We need to react on the
changing innovation landscape.
Professor Sir Mike Gregory, 13 Feb 2013
(E O’Sullivan: Adapted from NSF ERC Strategy Framework)

12. Transformation: the 3 Types of Innovation
(In the past: the focus on innovations has been on business and technology.
Now: also the cultural aspects are the drivers of change)
Business Model Levers
Value
Value
Proposition Chain
Technology Levers
Target
Customer
Product
Process
and Service Technology
Enabling
Technology
Cultural
Levers
Regional
Innovation
Ecosystem
Incremental innovations
Space
(Ba & Flow)
Semi-radical innovations
Design
New
Governance
Culture
Radical innovations
Mindset
Learning
We need to react on the changing innovation
landscape and create new governence culture
Markkula M & Pirttivaara M, (2013). Adding the Cultural Levers. Developed from Davila
T, Epstein MJ and Shelton RD, (2013), Making Innovation Work, FT Press, New Jersey.

13. Helsinki Region Smart Specialisation
The Helsinki regional RIS3 has the following steps (some already fulfilled, some on the process):
1. A collaborative scenario process was carried out 2012-2013 within the Greater Helsinki Region.
2. Main targets up to 2040 were defined by the Helsinki Regional Council in cooperation with the
municipalities.
3. The process for the Helsinki Region policy programme was organized in 2013 with stakeholder
hearings and open consultation. The outcome including the vision and strategy 2040, as well as
the strategic priorities for 2014-2017 was approved by the Regional Council on 11 December
2014.
4. Implementation plan with the spearhead mega-endeavors is approved.
5. The re-organizing the activities of the Steering Board for using structural funds and running the
RIS3 process.
6. The ongoing process phase is the defining in more detail the ecosystems and roadmaps for
each spearhead mega-endeavor. All stakeholders are engaged. Universities and other
innovation key actors are having the major role in this.
7. The most challenging activity is integrating the points 5 and 6 targeted to new RIS3 governance
concepts which are based on orchestration and synergic implementation processes. These will
lead to strong societal impact through each spearhead mega-endeavor.
In this slide I see RIS3 as a process
important for universities

14. The RIS3 Process: Six Challenges to Implement
Smart Specialisation Strategies in Practice
CHALLENGE 1: The “prioritization” challenge: how to select (and justify) priority
intervention domains for S3?
CHALLENGE 2: The “integrated policy” challenge: what are the adequate
policies for S3?
CHALLENGE 3: The “smart policy-making” challenge: what tools for evidencebased policy (measuring, assessing and learning in S3)?
CHALLENGE 4: The “multi-level governance” challenge: how to align policies
from national, regional, EU levels?
CHALLENGE 5: The “cross-border collaboration” challenge: what is the
appropriate territory to conduct a S3 and how to conduct polices that conform
to it?
CHALLENGE 6: The “stakeholders engagement” challenge: how to promote
participation, engagement and commitment of the variety of stakeholders?
Markku Markkula CoR Innovation Union keynote
on 27 Nov 2013, based on “The role of clusters in smart
specialisation strategies”, DG Research and Innovation
RIS3 new opportunities
are open for our use.

15. Espoo Innovation Garden T3
T3 is a largest concentration of science and technology based research and innovation
in Northern Europe. It’s a unique area for collaboration and living that is based on a
deep cultural heritage combined with a world-leading innovation ecosystem. Our
innovation ecosystem contains all of the essentials, from universities and research
organisations to investors to co-operative centres and organisations where people and
businesses come together to better equip our future.
• Within the area we have leading
universities, global businesses and earlystage start-ups.
• T3 area is built on ecological, economical
and ethical sustainability.
• All collaboration is based on the idea of
multidisciplines contributing together.
• T3 is a living community with 110
nationalities, 5 000 research scientists, over
800 companies, 16 000 students, and
43 000 residents.

16. We Cannot Reach the Target by Incremental Small Steps:
Metaphor of Gardening
Inventing the future: Working and learning together
Today
Gardening to enable uniqueness
Fruits of global pioneering
to the use of all
The upside-down tree metaphor originates 1992 by Leif Edvinsson
We need to create “Joint Regional Innovation Ecosystems”
The picture is based on the results of the Aalto Camp for Societal Innovation 2011: Markku Markkula

18. Entrepreneurship ecosystem
Aalto
Startup
Center
80 companies in
incubation/ 32 high
growth
Corporate
partners
Complementary
Parties
Coaches
EIT ICT Labs
EIT Nodes
&
partners
in Europe
PYK (Small Enterprise Center)
Training for entrepreneurs
Aalto Center for Entrepreneurship
Around 200 innovation proposals/year
-> 10-15 companies
->15-20 patent applications
Research &
AppCampus
Startup Sauna
AaltoES
2500 submissions
reviewed in 18 mths
150 Investment
decisions made
30 Applications
launched, running
rate 15-20 apps per
month
30-40 companies in
acceleration / year
20 million Euros
raised
30 students trained
with internships
9000 community
members
100 activists
Annually 8000
participates events
SLUSH
Established as the
leading
Start-Up event in
Europe
Aalto Ventures Program
Problem based learning program to foster
entrepreneurial mindset and skills
Co-operation with Stanford
Education

19. Mental entrepreneurial mindset with joint collaboration spaces and activities
 Aalto Design Factory & Startup Sauna & Urban Mill  Aalto Innovation
Garden (three old buildings)  Implementing Knowledge Triangle
We need concepts
to increase synergy.
On-going joint
process for
defining and cocreating joint
action themes
and vision
Physical space of
real hectic action
for research with
experiments, dem
os and prototypes
BA & Flow, demo
days & social
media, other
forms of effective
communication, v
irtual reality
Bottom-up activities
Passionate key
persons,
networking, processe
s, platforms,
focus on
boundary objects

20. Aalto Campus is the Angry Birds’Nest…
Selected as Global
#1 Young Incubator
July 2013,
Silicon Valley
Near 2,000 million downloads
Fastest growing brand ever
The ”Angry Birds“
Comes from Otaniemi
Figure May 2013
(C) Otaniemi Marketing Ltd 2013

21. The Future is here: slush.org 1000 start-ups, 200 venture
capitalists and other investors, 5000 participants
Ilkka Paananen
CEO Supercell
Jyrki Katainen
Prime Minister
Finland
Something outstanding: slush.org organised by students,
based on Aalto Entrepreneurship Society & Startup Sauna
http://www.youtube.com/watch?v=Q2LPjCupmPI&feature=youtu.be

22. RIE is crucial for successful
H2020 & ESIF projects .
From Triple Helix to RIE
(Regional Innovation Ecosystem):
Using The Hubconcepts™ - Innovation Hub Framework
First-class master plans
&
Innovation Hub concepts
Anchors
Growth SMEs
Start-ups
“Smart
Handover”
Company and forum
driven activities
complete each other
Incubation Environments
Living Labs / Test-Beds
Public-private
partnerships
Cluster Policies & Programs
Research & Development Activities
Education (elementary to university)
Physical Infrastructure and Service Structures
National /Regional Innovation Policy
Public policy
driven activities
Residential Zone
Semiconductor Phase I
Biotech & Pharma Phase I
Technology Innovation Area
Read the arcticle by Jukka Viitanen &
Markku Markkula & Carlos Ripoll in
the Knowledge Triangle Book 2013.
Scientific Research and
Education Zone
Semiconductor Phase II
Biotech & Pharma Phase II
Based on Hubconcepts Inc / Jukka Viitanen: Copyright and all rights reserved.

23. The Changing Realities in the Systemic Development of
Regional Innovation Ecosystems “From Triple Helix to RIE”
Jukka Viitanen, Markku Markkula, Carlos Ripoll
Soler (the article, 16 pages, gives a clear process
guidelines from the city governance perspective):
1. Introduction
2. The Triple Helix Model Extended to the
National and Global Contexts
3. New Foundations for the Regional
Innovation Policy and the Development of
Specialization Capacity
4. The Interplay and Matching of Parallel
Interests in the Regional Innovation
Ecosystems
5. The Comprehensive Bench-Learning
Approach for the Functional RIEs
5.1. Grand Master Planning
5.2. Coordinating Service Provision
5.3. Smart Orchestration
5.4. Channeling Ecosystem Resources
6. Conclusions
RIE is crucial for successful
H2020 & ESIF projects.

24. The Development Path of
the Regional Innovation Ecosystem (RIE)
This is the process we are applying in practice in the Espoo Innovation
Garden regional ecosystem through the research program “Energizing
Urban Ecosystems” (20 million euros in 4 years: industry driven 50%
funding from industry, 50% from Finnish public funding) .
RIE is crucial for successful
H2020 & ESIF projects.
Public
support
Stage 1: Creating
pre-conditions
Stage 2: Initiating
transformation
towards RIE
Stage 3: Orchestration
for global business
Development of National or Regional Innovation System
Source: Jukka Viitanen & Markku Markkula & Carlos Ripoll, article in the Knowledge Triangle book, 2013

25. The Development Path in More Detail
Stage 1 Regional pre-conditions:
1. Potential of existing regional/international innovation system (=audits)
2. Willingness to utilise this potential (=active participation)
Stage 2 Creating the innovation hub:
1. Joint R&D
2. Joint innovation capacity
3. Joint commercialization
4. Joint platforms
RIE is crucial for successful
H2020 & ESIF projects.
Stage 3 Orchestrating RIE:
1. Mindset change
2. Implementing Knowledge Triangle
3. Integrating innovation activities with research programs
Source: Jukka Viitanen & Markku Markkula & Carlos Ripoll, article in the Knowledge Triangle book, 2013

26. Added value for these
projects
Knowledge Triangle
implementation
Research
Creating
enablers
for this
project
portfolio.
Some
projects are
coordinated
by Aalto and
some by the
others.
Education
Innovation
Project 1
Project 2
Project 3
Project 4
Include
flexibility
through
experimenting
and
spin-offs &
spin-inns
Project 5
Markku Markkula
Aalto University
Additional added value for the
partners and stakeholders
Outcomes of the projects
Aalto frame for
the EU Horizon
Mega-Endeavour
(orchestrating a
project portfolio)
We need concepts
to increase synergy.
Other
impacts

27. How to make all this a reality?
Methodological RDI
We need concepts
to increase synergy.
(integrated with the university’s focus areas and the regional strategy)
A. New concepts and activities
need to be linked with RDI.
B. Open Innovation integrates
research, teaching, learning
and different collaborative
developments. It is a feature
characterizing all these
activities.
Orchestration of the specific projects and general open innovation
activities focusing on the regional spearhead topic.
Societal
Challenges
4. Living
Environment
C. In each topic the RDI areas
in the picture can be different
depending on the existing
strengths of the faculty.
5.
Leadership
and
Management
Industrial
Renewal
University’s
Focus Areas
2. ICT
D. Orchestration also for
European partnerships based
on RIS3. This means that each
region should locally organise
the settings in a similar
documented way.
6.
Innovation
Process
Working Life
Practices
1.
Science &
Society
Interaction
3. Human
Capital
Individual
innovativeness
© Markku Markkula
31

28. We need new instruments
such as ACSI Innovation
Camps 2010-2013
Innovation culture
New kinds of collaboration
Urban test-beds
Five perspectives
Demonstrations in Real life
& Virtual reality
ICT Cluster
Revolution
& Job creation

29. Increasing collaboration
between regions.
Local Digital Agenda for the Helsinki Region
based on Smart Specialisation – Draft (the process goes on)
We will pioneer solutions to tackle Grand Societal Challenges. We will focus on:
1. Smart Urban Design, especially Open Data
2. Active and Healthy Ageing
3. Low Carbon Economy, especially Cleantech & Smart Traffic
This means especially fueling Industrial Leadership by focusing on:
1. Regional Service Architecture and Modeling
2. Digitalization of System Processes, especially Services
3. Mindset and Other Enablers for Start-up and Growth Companies
And this means scientific excellence focusing on:
1. Open Innovation Interlinked Ecosystems
2. Human Centered Living Environments: Integrating Real and Virtual
Reality
3. Key Enabling Technologies and their multidisciplinary applications
Draft by Markku Markkula Fall 2013: based on the CoR Horizon 2020
opinion, European collaboration on LDA activities, the EUE/RIE plans, the EU Smart
Specialisation Mirror Group and Helsinki Region policy programmes.

30. Analysing the DigiBusiness Evolution: Rodmapping
Wellfare
Ageing
Technological
development
Globalisation
Sustainable
development
Quality of
life
EU / Helsinki
Digital
Agenda 2020
Climate
change
2010
2007
Mindtrek
Neogames ja Pelikehittäjät Ry
New funding models(Mediatonic)
Digital interaction(Kites)
eLearning (eOppimiskeskus Ry)
Tekes, TIVIT
Demola
2012
ICT structural change
Rovio – Angry Birds
Arctic15
Slush
EU Digital Think Tank
Kites Ry
Protomo
Growth coaching
International Business Programme
Digital content creation / Creative
industries
Education Esport (Future Learning
Finland)
Digidemo
Open data and citizen participation
Service design and Helsinki WDC
Tv/crossmedia – The Mill Sessions
Silicon Valley Think Tank
Russia Think Tank – ICT Cluster and digiTv
Design Thinking
Smart City
New Factory
Neogames – internationalization reward
Digital packages
Vision +
Strategic cooperation (Tekes, TIVIT, VTT,
Sitra, Finpro, TT, veturi- ja kasvuyritykset)

31. The Need to Take Virtual Reality in Use for
Collaboration
Introduction of the tool used by CoR Innovation
Union Conference 27 Nov 2013
A 2.5D Networked virtual reality tool was used both during the Networking Lunch
and the Workshops. One dedicated user in each of the groups was responsible for
adding material to the virtual environment and presenting the outcomes.
The virtual environment had dedicated working areas for each of the four
groups, and one for the entire event, containing the material for each working
group. Simple tools for adding web-based material were introduced, enabling
people to add material in a fast and interactive manner.
The Virtual reality tool was accessible with a web browser, using Meshmoon
Webrocket-technology
2013
Markku Markkula, Juho-Pekka Virtanen, Lars Miikki, Ali Kämäräinen, Tommi
Hollström, Marika Ahlavuo, Hannu Hyyppä, Hank Kune

32. Find synergies
and create strong
partnerships
CoR: collaboration
for Innovation 2.0

33. CoR: collaboration
for Innovation 2.0
http://cor.europa.eu/en/events/Pages/e
u2020-innovation-union.aspx
CoR Innovation Union Flagship Conference 27 Nov 2013 / Some Conclusions:
1. Innovation communities operate as ecosystems through systemic value networking in a
world without borders.  INNOVATION IS NOT ANY MORE A LINEAR PROCESS
2. Innovation processes are strongly based on demand-driven user orientation and
customers as crucial players in innovations.  OPEN INNOVATION 2.0 MEANS
PUBLIC&PRIVATE&PEOPLE PARTNERSHIPS
3. Innovation strategies focus on catalysing open innovation and encouraging individuals
and communities towards discovery and effective use digitalised services. 
CREATING FAVOURABLE CONDITIONS FOR CREATIVITY AND INNOVATION
4. Innovation is often based on experimenting and implementing demonstration projects
by partnerships, using the best international knowledge and creating new innovative
concepts.  EXPERIMENTING & RAPID PROTOTYPING

34. Summary
Summary:
Towards Smart Regions and Cities
There is a huge gap between the latest research knowledge and real life
practice. What do we need to do to fill it? CoR has defined the following
guidelines:
1. Europe needs pioneering regions to be forerunners in implementing the
EU2020 and through that to invent the desired future.
2. Lifelong learning and the full use of ICT are cornerstones for this change of
mindset towards entrepreneurship and innovation.
3. We need the dynamic understanding of regional innovation ecosystems
where public, private and third sector learn to operate together.
Modernize Triple Helix.
4. We need methodologies to mobilize public private partnerships and
encourage especially people participations: user-driven open innovation
& living labs.
5. We need to speed up the change by scalability & implementation.
Source: CoR Opinions 2011-2013

35. What new special is needed?
Summary
RIS3 & H2020  Modernizing Universities
during the EU Programme Period 2014-2020
1. Europe needs more societal innovation: This can be achieved by developing
the decision making processes needed to address societal challenges: using
the best international knowledge and collaboration expertise, developing the
required competencies and methods to support decision makers.
2. Europe needs more piloting and experimenting: This can be done by
increasing testing and implementing demonstration projects related to smart
and sustainable development: studying, piloting, demonstrating and verifying
new models.
3. Europe needs mindset change towards entrepreneurial discovery: This means
creating innovation gardens and challenge platforms for collaboration with the
businesses, universities and research institutions within the region: to create a
working together culture, innovative concepts and methods for partnerships.
4. Regional Innovation Ecosystems are based on modernizing the role of strong
research based universities.
5. Universities and other knowledge actors need more synergy within their
activities: This means orchestrating project portfolios and megaendeavours, as
well as implementing the Knowledge Triangle principle in universities.