World Bank Country Office, Kiev, Ukraine Ukraine Knowledge Economy Training Initiative Video Conference, ILO, Geneva, Switzerland, 22 January 2008 CREATING FINLAND’S KNOWLEDGE ECONOMY Professor Jorma Routti Helsinki University of Technology & CIM Creative Industries Management Former President of Sitra & Director General of European Commission Research DG

Finland EuropeWorld

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

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.)

Finland—Basic Scorecard

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

Forest Industry Cluster & Niche Strategies Brasil, South Africa, China, Indonesia Manufacturing and Operations Valmet Paper Machines Design, manufacturing and remote operations Production Focus on specific market segments and products World wide marketing Paper, cardboard, packaging material Poyry Design and Consulting Pulp Mills Sunds Design, manufacting and maintenance Timberjack Forest Harvestors

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/ %

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

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

CURRENT STATE V I S I O N S W O T ECONOMY SAFETY SUSTAINABILITY SOLIDARITY SKENARIOS FOR OPERATING ENVIRONMENT

CONSENSUS PROGRAMS IN FINLAND ECONOMIC POLICY AND NATIONAL STRATEGIES Participants: Members of Parliament, Media Leaders, Civil Servants Labour Movement, Industry Organizations, Academia Objectives: Growth, Employment, Balance, Low Inflation Instruments: Fiscal Policy, Taxation, Incentives, Echange Rates, Interest Rates Topics: Globalization, Integration, Trade, Social Policy, Regional Policy, Education, Research, Industry, Agriculture, Banking, Environment, etc. Government: Consencus Building, Trade-offs Simulation Models, Economic Advisors Adoption: Baltic Countries, New EU Members, Latin America, WB