present ccc07 feb2010
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Advansis 20106.4.20101
Finlands new national innovation strategy
Tarmo Lemola
Director, Advansis Ltd., Finland
Cofisa closing conference, Gauteng, South Africa, February 17, 2010
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Advansis 2010
http://www.tem.fi/?l=en&s=2411
Finnish National Innovation Strategy2008
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Finnish National Innovation Strategy 2008
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National Innovation Strategy 2008 focuspoints
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Advansis Ltd 20094
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Main factors behind the strategy
Innovation as a key driver of long-run economic growth
A shift in the geography of innovation The notion of innovation has broadened
Empowering people to innovate
Applying innovation to global challenges
Improving connectivity between actors and factors Improving governance
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Innovation drives long-run economicgrowth
Much of the rise in living standards is driven by innovation and
this has been the case for a long time. Innovation entails the production of new knowledge. It results
from a range of complementary assets which go well beyondR&D, such as software, human capital, new organisationalstructures etc.
The combined role of investment in intangibles, investment in ICTand multi-factor productivity growth (joint productivity of capitaland labour) accounts for between two-thirds and three-quartersof GDP growth in several OECD countries.
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Geography of innovation is shifting
Traditionally R&D has strongly concentrated on the biggest and
most developed countries (USA, Europe,Japan), and on bigcompanies of these countries.
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34 %
25 %
13 %28 %
USA
Europe
Japan
Rest of the
World
5,1
5,2
5,3
5,4
5,5
5,6
R&D Bi /A
Microsoft
General Motors
Pfizer
Toyota
Nokia
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The rise of developing countries hasstarted
China is in the lead:
Its share of R&D expenditure of the world is 13 % I has more than million researchers (almost as much as in USA and
Europe)
Its number of researchers has doubled in ten years
Its share in scientific articles has grown from 1,6 % in mid-1990s to 6% of today
It is second biggest in scientific articles in nanotechnology
Its growth in number of patents has been 30 % in the last ten years
.. Next come South Korea, Russia, India, Brazil, and South Africa, too.
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South Africa and Finland in comparison
South Africa Finland
R&D expenditure ($ billion 2009) 4,6 6,7
% of GDP (2007) 0,9 3,4
Share of Business Enterprise Sector 58 72
R&D personnel 17 303 39 000
R&D personnel/1000 employees 1,5 16,6
Scientific articles/1 million inhabitants 51,0 917,2
Patents/1 million inhabitants 0,63 53,04
WEF ranking 2009-2010* 45 6
*World Economic Forum 2009, The Global Competitiveness Report 2009-2010
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The notion of innovation has broadened
Innovation
Product innovation
Process innovation
Service innovation
Marketing innovation
Organisational innovation
Social innovation Design innovation
Innovation is also more and more an interactive process thatoccurs through collective or collaborative processes involving a
range of actors (firms, users, researchers, consumers, non-profitorganisations, NGOs, etc.).
The innovation process has opened up (open source movement,open innovation,user communities, living labs etc.)
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Empowering people to innovate
People are at the heart of any innovation process.
There are several channels through which human capital spurs innovation:
Generation of new knowledge
The adoption and adaption of technologies and ideas
The ability to adapt to change and to learn new things
As production becomes increasingly globalised, societies can not sustain a model
where innovation is driven by a small trained elite and supported by a large bodyof relatively low skilled production workers.
The knowledge, skills, ideas and creativity of all workers must be encouraged andengaged in innovation (Employee Driven Innovation).
Local communities must be active participants in the technology and innovationdevelopment process and not merely passive recipients of innovations developedfor them by outsiders.
Fostering entrepreneurship is a crucial and critical compoment of capacitybuilding for innovation.
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Applying innovation to global challenges
Innovation is increasingly perceived as a critical part of the
solution with tackling global challenges: Poverty
Bridging the gap in economic development
Climate change
Global health challenges
Empowering new players to address global challenges (socialentrepreneurship)
Governments and international organisations must provide astable policy regime which provides incentives to a large range of
actors to address global challenges through innovation.
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Improving connectivity between actorsand factors
What is urgently needed in innovation in practically all countries
is simply improving connectivity between actors and factors ofthe national innovation system:
Public private parnerships
Collaboration ventures of any kind
Intersectoral (-ministerial) collaboration
Integration of users and customers with innovation processes
Innovation forums
Innovation and technology platforms at national, regional and locallevels
Let all flowers bloom!
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Improving governance
The time has come to develop a strategic approach to fostering innovation toachieve the core objectives of public policy.
The strategy should take a broad, system-wide approach to innovation, bringingtogether policies and principles in a mutually supportive manners.
Successful implementation of the strategy demands full and visible commitmentof the highest political level.
Involvement of the wider innovation (STI) community (stakeholders) is a
necessary precondition for fruitful policy design and implementation. All societies are knowledge based societies. Only people can know and only
activity in individual brains can lead to a change in knowledge.
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Everything is simpler than you think and atthe same time more complex than youimagine.(Johan Wolfgang von Goethe)
It does not matter where you start, as long asyou start. John Cage
Final words to von Goethe and John Cage
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Advansis 20106.4.201017
www.advansis.fi
Thank you!All the best!
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