Stellenbosch University, Sasol Art Gallery Stellenbosch, South Africa, 9 May 2007 UNIVERSITIES’ CONTRIBUTION TO KNOWLEDGE ECONOMY Professor Jorma Routti CIM Creative Industries Management & Helsinki University of Technology Former President of Sitra & Director General of Research DG of European Commision

Finland EuropeWorld

FranceGermany ItalyJapanMexico Russian FederationUnited KingdomUnited States India China United States Japan Germany United Kingdom France Italy Canada Mexico Russian Federation Brazil Real GDP (PPP): Projections (Using Average Growth Rates) ©cjd

Manufacturing Output by Region in , % of world total East Asia: China, Japan, India North America: USA, Canada Europe: Germany, Great Britain, France, Italy, Spain, Sweden, Belgium, Switzerland Sources: Bairoch (1982), UNSD, ETLA % First Unbundling of Industries Second Unbundling of Services 2000-

Lisbon strategy Research Growth and Jobs EducationInnovation S&T contributes to the Lisbon objectives: economic growth, employment creation, environmental protection, social challenges: fight poverty, improve human health and quality of life (GSM, remote working, safe roads, etc.)

9 Thematic Priorities 1. Health 2. Food, agriculture and biotechnology 3. Information and communication technologies 4. Nanosciences, nanotechnologies, materials and new production technologies 5. Energy 6. Environment (including climate change) 7. Transport (including aeronautics) 8. Socio-economic sciences and the humanities 9. Security and space + Euratom: Fusion energy research, nuclear fission and radiation protection Cooperation – Collaborative research

Joint Technology Initiatives Global Monitoring for Environment and Security Hydrogen and Fuel Cells for a Sustainable Energy Future Towards new Nanoelectronics Approaches Embedded systems Aeronautics and Air Transport Innovative Medicines for the Citizens of Europe Other possible themes to be identified later…

The Four Pillars of the Knowledge Economy Education Innovation Information Infrastructure Interconnected Interdependent Economic and Institutional Regime

Strong Correlation: GDP/Capita & KEI Source: KAM Africa GDP/capita = $2624 Africa

Stages of Industrial and Economic Development FOREST-BASED INDUSTRIES MACHINERY, ENGIN. IND. FOREST-BASED IND ICT, ELECTRONICS MACHINERY, ENG. FOREST-BASED IND CHEMICALS

R&D expenditure, % of GDP

Industrial Production at 2000 prices Sources: Statistics Finland, ETLA.

Telecommunications and Nokia's Change Mobile Phones 60% Infrastructure 33% Other 7% Floorings 1% Chemicals 2% Machinery 4% Electrical Wholesale 4% Rubber 6% Information Systems 23% Cables 9% Paper 10% Consumer Electronics 31% Mobile Telephones 5% Telecommunications 5% Mobile Telephones 5% Telecommunications 5% 2000 Net sales USD 5.2 billion 1988 Market capitalization USD 1.4 billion at year end 1988 Net sales USD 19.9 billion 1999 Market capitalization USD billion, as of February 28th 2000

Services in the Mobile Information Society Information Entertainment e-shopping and banking Voice Corporate access and e- mail e- education Video

MARKETS  quality competitiveness  price competitiveness  environmental expertise F O R E S T I N D U S T R Y  Pulp and paper technology  Wood products industry  Machines, machinery and processes A11/ Securing competitiveness in the Forest Industry FORESTRY CONSTRUCTION AND WOOD TECHNOLOGY  modification of wood  construction technology and architecture  logistics, assembly MANUFACTURING TECHNOLOGY  forestry machines  process and production machinery  material technology BIOTECHNOLOGY  enzymes  rot prevention  gene technology ENERGY AND ENVIRON- MENTAL TECHNOLOGY  biofuels, combustion technology  ecobalances  closed cycles  energy-saving and emissions CHEMICAL TECHNOLOGY  paper and bleaching chemicals  surface treatment substances  pigments, adhesives INFORMATION TECHNOLOGY  sensors, measuring and control  computational intelligence, simulation and machine vision  multimedia and telecommunication  tomography

Co-operation between companies and universities and research institutes Norway UK Sweden FINLAND Portugal Austria Netherlands Ireland Italy France Denmark Germany Belgium EU Norway UK Sweden FINLAND Portugal Austria Netherlands Ireland Italy France Denmark Germany Belgium EU % Share of innovative companies having co-operation agreements with universities ( ) Share of innovative companies having co-operation agreements with public research institutes ( ) Source: Eurostat, Enterprise DG, 2nd Community Innovation Survey J05/ %

Science Parks in 1980 – 2000 and CoE concept UniversityCompany in 1980’s Companies Universities Science Park in early 1990’s Companies Science Park Centre of Expertise Programme Universities Polytechnics in late 1990’s and 2000’s

Regional networking with partners from Oulu in electronics and telecommunications programmes DM Copyright © Tekes Includes partners who participated in at least three projects in Tekes Electronics and Telecommunications technology programmes. Lappeenranta University of Technology (Lappeenranta) Salcomp Oy (Kemijärvi) CCC (Oulu) Sonera (Helsinki) Nokia Mobile Phones (Oulu) National Semiconductor Finland Oy, former Fincitec Oy (Kemi) University of Oulu (Oulu) Efore Oy (Helsinki) Projekti-Insinöörit Oy (Helsinki) Cybelius Software Oy (Oulu) Teleste (Turku) Tampere University of Technology (Tampere) Nokia Networks (Oulu) ADC Telecommunications Oy (Oulu) VTT, Technical Research Centre of Finland (Helsinki) Helsinki University of Technology (Espoo) JOT Automation Oy (Oulu) Nokia Research Center (Helsinki) VTT, Technical Research Centre of Finland (Oulu) Extrabit Oy (Oulu) ABB (Helsinki) NetHawk Oy (Oulu) Elektrobit Oy (Oulu) Vaisala Oyj (Helsinki) Polar Electro Oy (Oulu) Filtronic LK Oy (Oulu) Aspocomp Oy (Helsinki) Elcoteq Network Oyj (Lohja) Planar Systems Oy (Helsinki) Ultraprint Oy (Oulu) Suunto Oy (Helsinki) Picopak (Lohja) Nokia Mobile Phones (Salo)

Large companies (more than 500 employees) receive 16 % of Tekes total funding and 26 % of Tekes business R&D funding. Large companies co-finance Tekes R&D projects in universities, public research institutes and SMEs more than Tekes finances their projects. This system is managed by Tekes funding criteria. The system increases the quality of R&D projects and has important externalities in: knowledge transfer between large companies and research organisations development of SMEs as subcontractors and strategic partners of large companies Funding flows of Tekes funded R&D projects between large companies (more than 500 employees), research organisations and SMEs DM Copyright © Tekes Universities Public research centres SMEs Tekes 60 mill. euros Project volume 180 mill. euros 31 mill. euros15 mill. euros 16 mill. euros Annual average Funding flows to/from large companies, million euros Tekes funding to R&D projects of large companies Large companies projects buy research services from research organisations Large companies projects use SMEs as subcontractors Large companies co-finance public research projects Net flow Large companies

The stimulating effect of public funding on R&D FINLAND Sweden OECDMax USA Increased public funding strengthens the stimulating effect Growth of the stimulating effect decreases Public funding compensates corporate efforts The chart is directional and the figures include uncertainty. Share of public funding in corporate R&D spending, % The stimulating effect of public funding on R&D Source: OECD, Science, Technology and Industry Outlook (statistics from 17 countries, compiled over a period of 15 years). DM Copyright © Tekes

Innovation and Funding System Private Basic researchApplied researchBusiness R&D Business development Marketing Internationalisation Company R&D Business Angels Public Universities Research Institutes Technology Funding Venture Funds Sectorial research Research Councils Science Parks

s SOCIAL & HUMAN CAPITAL TECHNOLOGY & INNOVATION RESEARCH CAPACI TY ABSORTION CAPACITY SUPPLY USERS CREATORS DEMAND

s SOCIAL & HUMAN CAPITAL TECHNOLOGY & INNOVATION RESEARCH CAPACI TY ABSORTION CAPACITY SUPPLY USERS CREATORSDEMAND JAPAN USA IRL ITA SWE DE FR UK FIN

ITER International Thermonuclear Experimental Reactor Cleaner Energy for our Planet Main ITER Parameters Total Fusion Power (MW)500 Q - Fusion Power/Auxiliary Heating Power10 Average (1 MeV) neutron wall loading (MW/m2)0.57 Plasma major radius (m)6.2 Plasma minor radius (m) 2.0 Plasma Current (MAmpere) 15 Toroidal Field at 6.2 m radius(T) 5.3 Plasma Volume (m3)837 Installed auxiliary heating/current drive power (MW) 73

TIME – ENERGY - INFORMATION E = 0 I = 0 T = 0 I = max T = max E = max

Eenlightenment Wwisdom Uunderstanding Kknowledge Iinformation Ddata 