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Open (information and

open) innovation strategies

in Finland

PAVING THE WAY FOR OPEN SCIENCE Open access to research results – FinnOA symposium

3rd May 2010, Tieteiden talo

Ilkka Turunen Secretary General

Research and Innovation Council of Finland

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Definitions - statements

"Open innovation is the use of purposive inflows and outflows of knowledge to accelerate internal innovation, and expand the markets for use of innovation, respectively. Open innovation is a paradigm that assumes that firms can and should use external as well as internal ideas, and internal and external paths to market, as they look to advance their technology". (Henry Chesbrough, 2006)

"The term open innovation does not refer to free knowledge or technology. While "open source" refers to royalty-free technologies, "open innovation" refers to the collaborative methods applied, and may still imply the (significant) payment of license fees between companies for intellectual property." (OECD 2008)

"Innovation by individual users and also open collaborative innovation increasingly compete with – and may displace – producer innovation in many parts of economy. A transition from producer innovation to open single user and open collaborative innovation is desirable in terms of social welfare, and so worthy of support by policymakers (Carliss Baldwin and Eric von Hippel, 2009)"

"Open innovation is not equivalent to open science, nor does it correspond with open source software (in the ICT area). Intellectual property rights remain important, although the way these are managed may change to reflect the collaborative architecture and business goals." (EU, Luc Soete et al. 2009)

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Open innovation tools along the innovation processSource: de Jong (2007)

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Approaches to "open innovation"

Government

Industry/FirmsAcademia

PROs

Citizens

UsersCustomers

Consultants

Suppliers

Globalisation – opening up the world economy, information flows..

Globalization and the internationalization of value chains

"The changing nature of the business innovation practices"

Internationalization of R&D

Collaboration – public-private

partnership

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Drivers of open innovation and internationalization of R&DSource: European Commission, ERA Expert Group Report, Soete et al. 2009

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Finland’s Innovation Strategy 2008

Proposal of Finland's National Innovation Strategy, June 2008 (Aho et al.)

The Government’s Communication on Finland’s National Innovation Strategy to the Parliament

Drivers of change

• Globalisation the most favourable operating conditions, competition for talent

• Sustainable development climate chance, energy and raw materials

• New technologies ICT, bio- and nanotechnology, huge potential

• Aging of population Finland is one of the first countries to face reducing workforce volumes

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Finland’s Innovation Strategy 2008

Basic strategic choices

Innovation activity in a world without borders active

participation and influence in global value networks

Demand and user orientation paying attention to

the needs of customers, consumers and citizens,

incentives, shared innovation processes

Innovative individuals and communities the ability

of individuals and entrepreneurs to innovate

Systemic approach broad based activities,

structural renewal, management of change

Evaluation of the Finnish National Innovation

System 2008-2009

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International Evaluation of

the Finnish Research &

Innovation System

Remarks and recommendations related to "Open

Innovation"

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Broad-based

innovation

policy

C. Edquist

T. Luukkonen

M. Sotarauta

Demand- and

user-driven

innovation

D. Breznitz

M. Ketokivi

P. Rouvinen

Globalization

of business

activities

K. Aiginger

P. Okko

P. Ylä-Anttila

Growth entre-

preneurship

& finance

G. Murray

A. Hyytinen

M. Maula

Geography

of innovative

activity

G. Ottaviano

A. Kangasharju

M. Maliranta

Education,

research and

the economy

R. Veugelers

O. Toivanen

T. Tanayama

Global trends, national structures & their evolution, choices of the Finnish National Innovation Strategy

The Finnish national innovation system and policy:

policy/institutional reforms/adjustments

to meet future challenges

Innovation activity in a world without borders

Innovative individuals & communities

Demand & user orientation

Systemic approach

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A Growth Strategy for Finland at the Frontier(= the two goals of the new innovation strategy)

Productivity improvement• Within existing units• Between existing units• Entry of new units• Exit of old units

Pioneering• Less policy concern for

individuals & org’s that are not (seeking to be) at the global frontier

More experimentation and more risk-taking

Educating, enabling & incentivizing individuals (less org’s)

New-to-the-world & radical/disruptive innovations

Increased emphasison re-allocation

Increased emphasis on top-quality

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Less international than often thought The system is exceptionally domestic/national &

the situation is not (necessary) improving Does not attract talented/educated immigrants

Does not attract multinational enterprises’ business activities

Not a source of growth-seeking entrepreneurial talent with global views & potential

Decreasing researcher mobility; somewhat introvert universities

Public Policy actors not exploiting European/internat. policy fora

Streamlining the internationalization support for business

Providing incentives for internationalization (researcher mobility, universities)

Capitalizing on & furthering a real European Single Market for goods, services, finance, research (ERA) & higher education (EHEA)

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Challenges & Responses & Policy Proposals

Panel supports the broad-based approach and

demand & user orientation, but calls for refinements

• Urgent need to clarify these basic principles if they

are to be useful for designing concrete policies

• Balanced view on innovation – not particularly

favoring supply or demand aspects

• If biases for either side, revert to impartiality

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"Openness" of the

Finnish STI System

Strong in collaboration, but

weak in social dimension

of globalisation

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Companies collaborating on innovation activities, by partner (percentage of all

companies collaborating on innovation, 2002-04) Source: OECD 2008

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Customers are an important source of new ideas for virtually all firms

Very important (Important in brackets)

Source:

Evaluation of

the Finnish

Innovation

System. Policy

Report, p. 45

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Companies collaborating in innovation activities, by size, 2004-06

As a percentage of all firms; Source: OECD 2010

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Companies with foreign and national collaboration on innovation activities,

2004-06 as a percentage of innovative firms

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BUT...

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Foreign-born nationals as a proportion of R&D personnel aged 25–64 in EU27 and selected countries in

2006. Source: OECD 2008

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International university teacher and

researcher visits in 1995–2007

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Participation in EU programmes (participations per thousand researchers).

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Foreign and international doctoral student

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Policies for open innovation in Finland

The Strategic Centres of Excellence for science, technology and innovation (SHOKs)

long-term cooperation between industry and the academia

to achieve world-class expertise and internationally important innovations and discoveries within a given sector or industry

to thoroughly renew industry clusters and to create radical innovations

six centres are in operation: ForestCluster LTd. Information and communicatIon services TIVIT Ltd, Metal products and mechanical engineering FIMEEC Ltd, Energy and environment CLEEN Ltd, Built environment innovations RTM Ltd, Health and well-being SalWe Ltd

The Centre of Expertise Programme a cluster-based model, to increase regional specialisation and to

strengthen cooperation between centres of expertise

involves 13 national Clusters of Expertise and 21 regional Centres of Expertise

cooperation parties are companies, universities, institutes of higher education, research institutes, technology centres and various sources of finance (cities, municipalities, regional councils, Employment and Economic Development Centres, and county administration boards).

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Positioning of SHOKs in the Finnish innovation system

Lähde:Nikulainen-Tahvanainen, ETLA 2009

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Action programme for demand and

user-driven innovation policy

Background: national innovation strategy and innovation policy review of the Council of State

Ministry of Employment and the Economy was assigned to outline a policy framework for promoting demand and user driven innovation

Action points have been prepared jointly with a wide stakeholder group during autumn 2009

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Key areas of the action programme

1. Competitiveness by strengthening knowledge-base

and awareness of demand and user-driven

innovation

2. Innovations by bolstering demand

3. Renewal of the public sector as a source and

target of pioneering actions

4. Incentives for enhancing grass root level initiatives

5. More impact from increased usage of user-driven

methods

6. Networks enhancing diffusion of innovations

7. Evaluating the impact of the action programme

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Thank you!