18/04/231 •

Developing the Innovation System: Challenges and Prospects

Professor Erkki Oja

Kiruna, 18 June 2007

18/04/232 •

R&D in Finland in 2006

• Employs some 77,000 people

• Research funding amounts to €5.7 billion, business companies account for 71%

• R&D input 3.4% of GDP

• Relatively, Finland is among the leading R&D performers

• 20 universities and 31 polytechnics

• More than 1,400 PhD graduates of which women account for 47%

18/04/233 •

Public research funding actors in Finland

18/04/234 •

R&D investment in selected OECD countries, and in China and Russia (% of GPD)

Source: OECD, Main Science and Technology Indicators, 2006 / Statistics Finland, R&D activities 2005, 2007

18/04/235 •

R&D expenditure in Finland in 1991–2006, by sector

Other public sector 10%565.5 million €

Higher education sector 19%1,113.1 million €

Business companies 71%4,057.7 million €

Million €

18/04/236 •

Academy of Finland in brief

• A national system of research councils covering all scientific disciplines

• The Academy’s tasks• to promote scientific research and its application• to develop international scientific cooperation• to act as a science policy expert• to provide funding for scientific research and other promotion of science

• 16% of Government R&D, 27% of external university R&D funding

• In 2007, the Academy provides 260 million euros in funding for high-level scientific research

• No own research institutes

• Each year some 5,000 people benefit from Academy research funding

18/04/237 •

Funding schemes

• General research grants

• Research programmes

• Centre of Excellence programmes

• Research posts: Academy Professor and Academy Research Fellow

• Finland Distinguished Professor Programme (FiDiPro)

• Postdoctoral researcher’s projects

• Researcher mobility in working life and doctoral studies of employed persons

• Other funding (+ graduate schools funded by the Ministry of Education)

18/04/238 •

Funding decisions of the Academy of Finland in 2006

Total €238.7 million

18/04/239 •

Ongoing research programmes in 2007

• Environmental, Societal and Health Effects of Genetically Modified Organisms, ESGEMO (2004–2007)

• Health Services Research, TERTTU (2004–2007) • Industrial Design (2004–2007) • Russia in Flux, RUSSIA (2004–2007) • Social Capital and Networks of Trust, SOCA (2004–2007) • Systems Biology and Bioinformatics, SYSBIO (2004–2007)

• Environment and Law, ENVLAW (2005–2008) • Information Technology in Mechanical and Automation Engineering,

KITARA (2005–2009)

• Business Know-how, LIIKE2 (2006–2009) • Neuroscience, NEURO (2006–2009) • Nanoscience, FinNano (2006–2010) • Sustainable Production and Products, KETJU (2006–2010)

• Nutrition, Food and Health, ELVIRA (2007–2010) • Power and Society in Finland, VALTA (2007–2010) • Substance Use and Addictions, ADDIKTIO (2007–2010)

18/04/2310 •

How to get stronger impact?

• Emphasising high quality, interdisciplinarity and innovativeness

• Granting funding in larger blocks to research projects rated as excellent

• Promoting the interaction and cooperation between researchers and knowledge end-users (fe. business and industry)

• Impact is assessed over the long term

• Strategic partnership with universities and other funding agencies (especially Finnish Funding Agency for Technology and Innovation, Tekes)

18/04/2311 •

R&D in Finland: success factors

• Political consensus and trust• Well-functioning system of science and technology policy• Consistent and high investment in R&D (public and private)• Nokia-effect• Growing share of competitive public R&D funding• Active collaboration in research both nationally and

internationally• Good public – private co-operation• A high level of education among entire population

18/04/2312 •

Challenges for science policy in Finland

• Limited economic and intellectual resources• Fragmented system of universities and polytechnics• Scientific infrastructures• Researchers’ career opportunities• International mobility

18/04/2313 •

A new instrument for public private –partnership in R&D

Strategic Centres for Science, Technology and Innovation willprovide a new way of coordinating dispersed research resources

to meet targets that are important for Finnish business and society.

In the strategic centres

• Companies, universities and research institutes will agree on a joint research plan. The plan will aim to meet the needs for practical applicationby companies within a 5-10-year period.

• In addition to shareholders, public fundingorganisations will commit themselves to providingfunding for the centres in the long term.

DM 24983412-2006 Copyright © Tekes

18/04/2314 •

Strategic Centres for Science, Technology and Innovation

Internationalpartner

Cluster Ltd.CompaniesUniversities

Researchinstitutes

Cluster Ltd.CompaniesUniversities

Researchinstitutes

Virtualresearch organisation

Virtualresearch organisation

Technologytransfer

Technologytransfer

R&D andinnovation

program 1, 2of centreCentre A, B

Cooperatingcompanies

UniversitiesResearch

organisations

Cooperatingcompanies

UniversitiesResearch

organisations

StrategicpartnersStrategicpartners

DM 24983412-2006 Copyright © Tekes

CompanyCompany CompanyCompany

Researchinstitute

Researchinstitute

18/04/2315 •

Strategic decisions and visions

• New university law: ”the third mission” of the universities

• ”Sustainable and Dynamic partnership. Research cooperation and researcher training between universities, research institutes and business and industry.” Publications of the Academy of Finland, 7/05

www.aka.fi (about us/publications)

• Government resolution on the structural development of the public research system (7.4.2005)

• A national strategy document ”Science, Technology, Innovation”. Science and technology policy council of Finland (June 2006)

• Government Programme 19 April, 2007

http://www.vn.fi/hallitus/hallitusohjelma/pdf/en.pdf

18/04/2316 •

The new Government’s programme (science and innovation policy)

• ”The goal of the Government is to offer entrepreneurs and innovators the world’s best operating environment.”

• ”The Government will prepare a national innovation strategy at the very outset of its term.”

• ”The goal is to increase funding for research and development during the current parliamentary term to four per cent of GNP. Achieving this goal will require a strong, unified commitment on the part of the Government and the business community.”

• ”..the Government will implement and fund strategic centres for science, technology and innovation on the basis of the proposal (made by Science and Technology Policy Council in 2006). With the centres of expertise program based on cluster networks, the Government will especially strengthen the innovation base in the regions and promote cooperation between business and the education and research communities.”

• ”A top-level university for research and education will be composed of the Helsinki University of Technology, the Helsinki School of Economics, and the University of Art and Design Helsinki.”

• ”A new Ministry of Labour and Industry will be established…”