Tekes technology programmes in internationalising R&D Eija Ahola The National Technology Agency, Tekes Impact Analysis 6CP Workshop , Helsinki Internationalisation of R&D - Recent trends and arising policy challenges for the future

Public sector activities of R&D in Finland Ministry of Trade and Industry DM (36105) Copyright © Tekes Academy of Finland Universities Ministry of Trade and Industry Sitra Finnvera Oyj Finpro PARLIAMENT GOVERNMENT VTT Tekes Science and Technology Policy Council Regional TE-Centres Other ministries and their institutes Ministry of Education

Excellence in R&D ensures a strong national knowledge base Excellent R&D increases in Finland with more companies and research organisations participating. This strengthens the national knowledge base in sectors and clusters vital to the national economy and society as a whole. Internationalisation of innovation The Finnish innovation environment offers companies and research units an excellent framework for adopting and utilising existing international knowledge as well as for networking with high-level international partners to create new knowledge and business opportunities. Innovative high-growth companies The number of technology-based companies increases; they grow more rapidly and create new job opportunities. Productivity and renewal of business and industry Strong innovation activity helps existing companies to grow more rapidly. Companies and the structures of business and industry are renewed and diversified, improving the productivity of both the industrial and service sectors. This enhances societys ability to provide job opportunities in an increasingly competitive world. Direct impact of innovation on well-being Technologies are developed and utilised in a way that ensures balanced development of the economy, social well-being and the environment. Regional development Technology and innovation support regional development so that the impact objectives of technology policy are fully achieved in each region. Strategic objectives of Tekes DM Copyright © Tekes

Competitiveness, profitability and growth New businesses, start-ups Impact of Tekes activities Research institutes and universities Enterprises Societal and environmental impacts Projects and programmes International cooperation Tekes provides expert services and R&D funding coordinates programmes DM Copyright © Tekes Boosting exports, broadening industrial and economic base, generating new jobs and improving well-being.

Actions of Tekes Ensuring quality and efficiency of activities Knowledge and vision of successful innovation Technology programmes DM Copyright © Tekes Activation for innovation Selective project funding Development of the innovation environment Innovation research Foresight Technology strategy Technology related communication Impact analysis and communication of the impact of Tekes activities Customer specific, regional and sector-specific activation Promoting technology transfer Specific activities in new companies Promoting international expansion Selecting, preparing and implemen- ting technology programmes Expert support for project planning, selecting projects to be funded Monitoring and supporting funded projects Developing funding services and criteria Cooperation with interest groups to ensure innovation productivity Preparation of the innovation policy and special assignments specified by the Ministry Maintenance and development of the resources, expertise, structure, processes, systems and management culture essential for effective, high- quality operation

Tekes activities of internationalisation of R&D National level Tekes-level Technology programme level Project level

International Energy Agency Finland in the European technology cooperation Docs Network for market oriented R&D national funding Creates networks of nationally funded research projects on European level European Space Agency Nordic Technology cooperation EU R&D Framework Programme NI, NEPF EU EUREKA COST ESA IEA International Energy Agency

Finnish participation in the Fifth Framework Programme in Finland participates in 1,383 projects in different programmes and coordinates 237 projects Source: Tekes, June 2003 DM Copyright © Tekes Finnish participations by types of organisation Research centres 29 % Large companies 13 % SMEs 18 % Universities 32 % Other 8 % Fission, 47 Growth 268 Energy, 61 Quality of life 350 Innovation, 29 INCO, 27 Environment, 157 IHP, 132 IST 312

Tekes overseas offices Four offices located in the global technology hot-spots in USA, Japan and China Brussels office linking EU and Finnish national R&D programmes Permanent staff of 12 technology experts Additional short term project personnel Five offices serving Tekes technology programmes and technology strategy work Five offices serving Tekes technology programmes and technology strategy work Docs Helsinki Tokyo Brussels San Jose Washington, D.C. Beijing

International co-operation in Tekes technology programmes in 2003 BIKE ENYR TIVI TUTA AVAR

International cooperation in Tekes projects in 2003 International cooperation 754 projects Other projects 185 million euros Number of projects Funding International cooperation 196 million euros Other projects 1,263 DM Copyright © Tekes 37 % 63 % 51 % 49 %

International cooperation in Tekes projects in 2003 Projects by countries Funding by countries

What are Technology Programmes? Multiproject programmes initiated, steered and part-financed by Tekes Focused on a key technology sector Implemented in cooperation by companies and research units Companies can participate with their own projects or by joining common research projects Projects and results are partially public Picture: © Imtec DM Copyright © Tekes

Key figures of technology programmes 24 ongoing programmes in the beginning of 2004 with a total cost of 1.3 billion euros Each programme typically lasts 3-5 years 2,000 company participations annually 800 research unit participations annually Tekes usually finances 60-80% of university projects 25-50% of company projects DM Copyright © Tekes

Technology programme model Steering group enterprises Tekes Grants Company R&D projects Research projects of research institutes and universities Synergy Networking Part financing preparation coordination decision making DM Copyright © Tekes Grants Loans Capital loans Pictures: © ESA, Okmetic, Stora Enso

A unique gateway to Finland Picture: © Okmetic Technology programmes open a unique gateway to key Finnish players in relevant fields of technology R&D projects in programmes represent the cutting edge of technological development in Finland Technology-oriented foreign organisations are invited to cooperate in joint projects, technology transfer or information exchange Further information: www. tekes.fi/eng/programmes DM Copyright © Tekes

Programme organisation Grants Loans Capital loans Research funding Programme Manager Tekes preparation co-ordination decisions Private development projects Public research projects Synergy Networking Funding Steering Board Lauri Ratia, chair Mika Halttunen Markku Hautanen Kari Inkinen Erkki KM Leppävuori Juhani Sormaala Mika Lautanala SARA programme Education forum Forum DM Copyright © Tekes

The evaluation was made by Advansis Oy, ITA Oy & Technopolis Ltd. (UK) Leading researcher was Mr. Kimmo Halme Included all programmes that had ended between (64programmes) Included several parts: International benchmarking and literature survey Analysis of programme documentation of all 64 programmes Evaluation of internationalisation activities Deeper case studies of 9 programmes Two workshops Evaluation was started 6/2003 and reported 2/2004. Evaluation was linked and integrated to Tekes strategy process of internationalisation Results of this evaluation are also in use in the project of defining national policy for internationalisation of R&D

Rationales for internationalisation Firms Did not participate/play an important role Reaching Intrn leading-edge (upgrading) Increasing lead in relation to intrn leading-edge (upgrading) Exploiting Finnish competence Research institutes Exploiting Finnish competenc e (exchaning knowledge) International research programmes Intrn research & activation of business in the sector Home-base extension(?) Home-base extension + export orientation Increasing lead in relation to intrn leading- edge (upgrading) Domestic research (+networking) Knowledge-flows: Research -> business sector Domestic R&D – No need for others Commercialisation of research competence Reaching Intrn leading- edge (upgrading) Technology transfer(?) Lakki kädessäKnowledge flows: Business sector -> research Export orientation and activation of supporting research Did not participate/ play an important role No programmeDomestic activation of sectors Domestic R&D, (+networking) Strong export orientation Antares? FFusion2 GPB Kesto (turb) Kenno Presto Spin Kesto (soda) Tesla Navi iWell

Internationalisation in technology programmes Programme proposal preparation: -Focus, -Structure, -Timing Feasibility check & decision Expressed or latent need for public action. Programme launch & Call for projects Phase I: Programme promotion, project selection, network building Phase II: Joint activities, first results, intensified networking Phase III Result collection, disseminati on, future orientation Midterm evaluation Programme evaluation Final reporting Definition Implementation Follow-up Programme output, impact & triggered changes Follow-up programmes Analysis of international context(?): - Needs - Competition - Partners - Competence Joint launch, international promotion, open call? Finding of foreign partners / agencies / programmes? Foreign projects ? International co-operation, market checking, application partners? International promotion of results? International business promotion, internationalisation of projects? Strategic decisions Project co- operation ? Research oriented international activities Commercially oriented international activities

Most common internationalisation actions of programmes: 1.International co-projects (55%) 2.Foreign speakers in seminars and workshops (50%) 3.Participation to exhibitions and international conferences (50%) 4.Market studies (40%) 5.Cooperation with international networks and programmes (36%) 6.Visiting tours (33%) 7.Researcher exchange (29%) 8.International communication and marketing of the programme (19%) 9.Internationally shared goals of pgogrammes (19%) 10.Participation to international committe´s and standardisation (14%) 11.International agreements of projects (12%)

Concluding remarks from the evaluation The main reasons for internationalisation through technology programmes: to improve, enforce or complement the Finnish technology and knowledge to apply and exploit Finnish special expertice in international markets participation to international BIG Science –programmes and projects exploitation of changes in international regulations and markets

The profiles of international activities differ a lot by programmes Very few programmes are international on the programme level Technology programmes are still national in nature Universities and research institutes are very important in internationalisation process Direct actions for internationalisation on programme level are efficient Internationalisation includes also risks

Recommendations for Tekes Strategy for internationalisation; e.g. need for long-term high-level technology programmes based on national competence Technology and knowledge transfer also into Finland Opening of national programmes (ERA, ERA-net) On programme level: specific goals for internationalisation, special activities according to the goals International cooperation and networking is a slow, long- term process (needs social capital and trust)