RUnUP ULSG Study Visit – Tampere, Finland Dr. Clive Winters

Introduction A visit to Finland exploring the role of universities and the wider development of innovation and enterprise inevitably raises a range of critical questions: To what extent is Finland driven by the Nokia Effect? Would the Finnish economy have been as successful without Nokia? Is Finnish success based solely on large-level investment in Research and Development? On what platform is the success of a Small and Medium Sized City like Tampere based? Can such success be replicated elsewhere? What next for Tampere and Finnish Innovation?

About Tampere Tampere is located in the southern part of central Finland, some 170 km northwest of Helsinki. The City of Tampere has about 200,000 inhabitants and the size of the whole urban region is around 300,000 It is the second biggest urban concentration after the Helsinki region and the biggest inland city in the Nordic countries. Tampere has also become known as a student city, having over 23,000 university students in several major educational institutions. Tampere is the centre of Finnish industry today. Versatile research and education and cooperation between companies and universities have maintained and further developed the competitiveness of the regions industry.

About Tampere

Four Stage Competitiveness Model for Countries

Concentration on Production Factors Tampere has been an industrial pioneer in Finland since the very beginning. Finlands first paper mill started operation in The first paper machine was engaged at the J.C. Frenckell & Sons factory in The citys engineering industry was bolstered by the manufacturer of grinding machines and water turbines, which was established on the upper reaches of the Tammerkoski rapids in The traditional economy is based on specialised industries namely, metal, automation and engineering Local expertise is particularly well developed in mobile heavy machines. Where companies can co-exist as they are operating in different markets with restricted competition but where they have been able to take advantage of technological innovation and business restructuring.

Concentration on Investment Capital infrastructure investment has been a key component of the development of Tampere. In particular developments at the Universities and Polytechnics and Science & Technology park has been critical.

Concentration on Knowledge The Tampere region with two universities and two polytechnics with strong ICT emphasis form a strong basis for top research and development together with source for competent employees. Tampere University of Technology (TUT) conducts scientific research in technology and architecture and provides higher education within these fields. Established in 1965, the University has grown to become a significant influence on technology in Finland and abroad. TUT plays a pivotal role as an advocate of business life, internationalization and well- being in the Tampere region and western Finland as a whole. The University is the fifth largest employer in Tampere. The University of Tampere is Finland 's biggest provider of higher education in the field of social sciences and the accompanying administrative sciences.

Concentration on Knowledge The Tampere region with two universities and two polytechnics with strong ICT emphasis form a strong basis for top research and development together with source for competent employees. TAMK University of Applied Sciences is an internationally-oriented multi-disciplinary university offering higher education in, Art and Media Business, Engineering / Technology and Forestry PIRAMK University of Applied Sciences is a regional, multidisciplinary, service sector-oriented higher education institution in the Tampere Region in Finland. PIRAMK University of Applied Sciences and TAMK University of Applied Sciences will merge on 1 January 2010

Concentration on Innovation Focus on major development programmes all 5 or more years in duration and with a city investment of at least 1,000,000 euro per year which are estimated to return between 15 and 40 times their investment eTampere: The aim was to transform Tampere into the worlds leading city in knowledge society development by strengthening the knowledge base, creating new business activity and introducing new public online services Centre of Expertise: The programme is a key regional strategic development programme which aims to strengthen and renew a regions competitiveness and expertise. BioneXt Tampere:Is a special programme aiming at the development of the region's biotechnology sector. BioneXt enhances the competitive edge of the biotechnology industry promoting health and well-being. Creative Tampere: Was established to accelerate this growth by promoting interaction among representatives of different sectors in order to develop new creative concepts.

Open Innovation and User/Demand Led Innovation Finland is one of the hardest hit countries in the euro area by the global downturn. As a small open economy, Finland is highly dependent on demand conditions in the world markets. Utilising new technologies within existing companies is a factor to success yet within the current economic climate there is uncertainty as to how cooperation between companies and universities will continue. Finland's strong ability to innovate has come to halt, it has become a victim of its own success with markets moving internationally and the requirement for strengthened investments in Research and Development. This solid competence basis, created by Finland through investing in education and research, must be preserved, and further reinforced. However, current strengths will not suffice to meet future challenges.

Open Innovation and User/Demand Led Innovation To attain Finnish strategic goals, the innovation environment must be able to create novelty and make choices. Innovation activity in a world without borders: Finland must actively participate and exert influence and be internationally mobile and attractive. Demand and user orientation: Innovation steered by demand, requires a market with incentives and shared innovation processes between users and developers. Innovative individuals and communities: The ability of individuals and entrepreneurs to innovate, and the presence of incentives, are critical success factors of the future. Systemic approach: Exploitation of the results of innovation activities also require broad-based development activities aiming at structural renewal, and determined management of change.

Open Innovation and User/Demand Led Innovation Demola is a demo factory, a multidisciplinary open innovation environment where researchers and students can co-create to develop new digital products and services with global market potential. Companies provide project ideas, concepts and guidance for student teams, who then develop the ideas further by building demos and test beds, doing trials and analyses, and creating business models. Once a project is started, partner companies give continuous guid­ ance – about two hours a week – to the project team through weekly meetings, workshops and one-on-ones. The shared physical workspace on Demolas premises proved to be an important factor in fostering co-creation and an open innovation community.

Open Innovation and User/Demand Led Innovation

Concluding Remarks It is clear that Finland and Tampere has been significantly impacted by the success of Nokia and the investment of research and Development in Finland as a whole For the City of Tampere as a Small and Medium Sized City it is clear that they have developed in production activity, investment and knowledge well before the success of Nokia. The city developmental activities were and continue to be give clear and strong and that if Nokia had not been successful then their approaches would have been successful for other companies or groups of companies all be it maybe to a lesser extent. It is true that innovation has increased rapidly during the last decade and that cities and regions have grown as a result. What is clear for Tampere and for Finland is that a commitment to focusing limited resources in new areas based on open innovation alongside a culture of hard work and a commitment to succeed will result in the development of new innovation opportunities, companies and individuals that will continue to build on the innovation phenomena that is Finland.