1. Innovation Processes in Transition; SMEs by Erkki Ormala Professor of Innovation Management Aalto University, Business School

2. Innovation processes in SMEs Involves all the elements of innovation process But is not formally organized Informal dialogue with key persons Close customer orientation

3. with educated mind set with networking skills with problem solving skills with global view, cultural understanding with tolerance for uncertainty who have courage to look beyond their own comfort zone who are open for different views with open mind and flexibility for the change with passion to work with language skills People need to think beyond the routine, and need to have the ability not just to adapt to change, but to help create it Innovation Calls for People Entrepreneurial spirit

4. 4 © NOKIA Elements of Favorable Innovation Environment; critical elements for SMEs FIRM Good understanding of the changing landscape Access to top-level research and high quality experts Easy access to Broadband; ability to use ICT Favourable regulatory environment; harmonized rules; IPR provisions; company statutes; taxation, etc Rich fabric of private partners; enabling vertical and horizontal integration Access to VC funding and support Access to market; Cost efficiency Macro economic stability Access to raw materials

5. Building a VC market 1980s 1990s 2000 and beyond Public funding, education, incentives Partnership funding, matching service, risk sharing. education Public seed funding, risk sharing, education, exit market

6. Venture capital investments by country Million US dollars, 2012 Estonia (2011) 1.8 Italy 91.7 Australia 331.3 Slovenia (2011) 2.5 Finland 101.6 Korea 606.9 Czech Republic 6.7 Denmark 101.7 Germany 706.2 Russian Federation (2011) 9.3 South Africa (2011) 109.6 France 710.5 Poland 11.7 Ireland 113.5 Israel 867.0 Greece (2011) 13.7 Belgium 115.9 United Kingdom 929.1 Luxembourg 14.2 Norway 143.4 Canada 1470.1 Portugal 20.4 Spain 148.1 Japan 1553.6 New Zealand (2011) 28.9 Switzerland 209.5 United States 26652.4 (75% of all OECD) Austria 43.5 Netherlands 226.5 Hungary 82.6 Sweden 285.6 1 2 http://dx.doi.org/10.1787/888932829837

7. Small Business Investment Company in the US (SBIC) Established 1958 Direct investments in VC funds and quarantees Last year 2.2 billion US$ Profitable

8. Private corporate VC companies; case Nokia BlueRun Ventures (BRV®) is an early stage venture firm focused on mobile opportunities in key global markets. Offices in Menlo Park, Beijing, Shanghai, and Seoul. Nokia Growth Partners. In a converged digital world, every business must be mobile. NGP provide access to resources beyond the capital investment: mobile expertise, strategic guidance, a global network of partners and thought leaders, and innovative partnership opportunities.

9. Plug and Play; Silicon Valley in a Box Private business incubator 300 companies Other locations: San Diego, Canada, Jordan, Singapore Weekly meetings with VC companies and experienced industry leaders Big company sponsors Ten times better than the current competitive offering Transfluent

10. Venture capital in Finland TEKES: R&D, Organization and process development, Internationalization; Rapid growth; venture investements 200k€->500k€->1000k€ Vision+: new partnering model; a revenue shared business model without dilution http://visionplus.fi/ Tax incentive: private persons can deduct losses up to 200 k€

11. Partnering Partnering is a key to success for SMEs Patnering can take many different forms: customers (Delfoi), platform providers (Rovio, Supercell), subcontractors, etc IPR plays a significant role Internationalization is a big step where a global partner can help a lot (Forum Nokia)

12. Research & Education AppCampus 3500+ submissions reviewed in 24 mths 300 Investment decisions made 100 Applications launched Aproaching 10 million downloads Corporate partners Complementary Parties Coaches PYK (Small Business Center) Training for entrepreneurs Aalto Center for Entrepreneurship Around 200 innovation proposals/year -> 10-15 companies ->15-20 patent applications Aalto Ventures Program Problem based learning program to foster entrepreneurial mindset and skills Co-operation with Stanford Startup Sauna 30-40 companies in acceleration / year 20 million Euros raised 30 students trained with internships SLUSH Established as the leading Start-Up event in Europe Aalto Start-up Center 80 companies in incubation/ 32 high growth AaltoES 9000 community members 100 activists Annually 8000 participates events EIT ICT Labs EIT Nodes & partners in Europe Entrepreneurship ecosystem

13. Aalto University: Expertise workshops: Design Factory, Media Factory, Service Factory and Health Factory Combining the expertise of the schools in the fields of product development, media and services. Students, researchers and companies will meet in connection with joint projects. Units based on Design Factory's mode of operation have also been established at universities in Shanghai, Melbourne and Santiago.

14. Thank you