1. Research Director, Dr Jari Kaivo-oja,
CREATING GLOBALLY ATTRACTIVE BALTIC RIM RESEARCH AND INNOVATION AREA: KEY CHALLENGES OF DYNAMIC POST-LISBON STRATEGY ERA
Research Director, Dr Jari Kaivo-oja,
Finland Futures Research Centre, Turku School of Economics and Business Administration

2. Research Director, Dr Jari Kaivo-oja, Finland Futures Research Centre, Turku School of Economics and Business Administration, located in the Turku Science Park
-Research Director of the FFRC, foresight team leader
-Nordic Foresight Forum, full member
-COST A22 (foresight methodologies), board member, Theme group
leader
-Association of Professional Futurists (APF), full member
-22 monograph publications, 65 refereed publications
-Futures Sparring Forum, lecturer
-Future Focus, lecturer
-Worked for European Commission, European Foundation, Eurostat
and various companies
-Editor in various journals (e.g. Research Policy)
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3. Finland Futures Research Centre, Turku School of Economics and Business Administration is located in the Turku Science Park
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4. INTRODUCTION The Lisbon summit in 2000 set a critical strategic
goal for the European Union. The European Union
should, by 2010, "become the most competitive and
dynamic knowledge-based economy in the world, capable
of sustainable economic growth with more and better
jobs and greater social cohesion". 
One important part of the Lisbon strategy should be
development of dynamic innovation systems. Innovation
is required to become and to remain "competitive and
dynamic”. Key question is how Lithuania and the Baltic
Rim Region will become ”more competitive and dynamic”?
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5. SHAREHOLDERS RULE…
They rule with an iron fist in America, in Britain, and,
increasingly, around the world. They are hunting down
complacement CEOs in Germany, France, and Italy. And you can even hear them asking rather indelicate questions of Japan´s imperial corporate leaders. This isn´t news. Your company has turned
itself inside out to satisfy shareholders. It´s restructure,
reendineered, and delayered. It is launched programs
for enterprise resource plannig and customer relationship
management. Your company has bought back its own
shares, made a big acquistion or two, and spun off under-
perfoming divisions. Maybe it has even launced a tracking
stock to capitalize on the growth potential of an e-commerce
sibsidiary. Yet over the next decade it is going to have to
do more, far more, to fill the gaping maw of the
ever-hungry shareholder. – Gary Hamel (2000, p. 33) Leading the
Revolution. Harvard Business School Press. Harvard.
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6. CONCLUSION…. Global pressures to develop the Baltic Rim economic and
social co-operation
are increasing.
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7. TOTAL ENTREPRENEURAL ACTIVITY INDEX?
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Source: GEM 2004

8. SITUATION ANALYSIS We cannot assume that established policies for
encouraging innovation are adequate to the new
conditions in the Baltic Rim area. New policy initiatives
are needed. The Baltic Rim nations should develop
the Baltic Rim innovation and research region, which idea is
to develop synergies with national and regional innovation
systems.
In the process of synergies creation, special attention
should be paid to complementarities and substitute aspects
of national innovation systems. National perspective
to innovation system developments is too narrow in
the global economy.
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9. EUROPE MUST HAVE A SMART GLOBALISATION STRATEGY: IT
MUST BE BASED ON INNOVATION
POLICIES AND REAL WELFARE
OPTIONS FOR ORDINARY CITIZENS....
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10. FROM NATIONAL INNOVATION SYSTEMS TO TRANSBOUNDARY
INNOVATION SYSTEMS: WHY A
BALTIC RIM INNOVATION AND
RESEARCH IS NEEDED?
”In a nonlinear world only nonlinear ideas will create new wealth.”
Gary Hamel (2000, p. 12) Leading the Revolution. Harvard Business School Press. Harvard.
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11. A TYPICAL NATIONAL MODEL OF INNOVATION DEVELOPMENT
UNIVERSITY
CONTRACTS
SCIENCE PARK
DYNAMICS
OF INTERFACES
TECHNOLOGICAL
CENTRES
INTERMEDIARY
BODIES
INDUSTRY
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12. GLOBALLY NETWORKED INNOVATION SYSTEM: A BALTIC RIM INNOVATION MODEL?
UNIVERSITY
CONTRACTS
SCIENCE PARK
DYNAMICS
OF INTERFACES
TECHNOLOGICAL
CENTRES
INTERMEDIARY
BODIES
INDUSTRY
UNIVERSITY
CONTRACTS
SCIENCE PARK
DYNAMICS
OF INTERFACES
TECHNOLOGICAL
CENTRES
INTERMEDIARY
BODIES
INDUSTRY
UNIVERSITY
CONTRACTS
SCIENCE PARK
DYNAMICS
OF INTERFACES
TECHNOLOGICAL
CENTRES
INTERMEDIARY
BODIES
INDUSTRY
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13. REFORMS ARE NEEDED ...
If Europe and/or the Baltic Rim Region want to achieve
the Lisbon Strategy goals, much closer co-operation is needed
in the further development of national innovation systems.
Europe cannot compete with Pacific Rim or U.S. innovation
systems, if these kinds of new active policy actions are not
made in the near future. This means that regulatory and
institutional reform should be encouraged across a wide
range of policy areas. The reform includes at least the
following elements: improving internal efficiency, improving
service delivery and simplifying procedures, so as to reduce
confusion and administrative burdens.
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14. TOWARDS BALTIC RIM INNOVATION AND RESEARCH AREA?
EVALUATING IDEAS
HARVESTING AND
DEVELOPING IDEAS
PROPOSING AND
MARKETING IDEAS
GENERATING IDEAS
BALTIC RIM
INNOVATION AND
RESEARCH AREA
THE BEST LEARNING REGION
IN THE EUROPE?
IMPLEMENTING
IDEAS
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15. HOW TO CREATE SILICON VALLEY FEVER IN THE BALTIC RIM REGION?
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16. A STRATEGY AND B STRATEGY: WHICH ONE IS ADOPTED IN THE
BALTIC RIM REGION?
A STRATEGY B STRATEGY
Procedural Creative
Reductionist Expansive
Extrapolative Inventive
Elitist Inclusive
Easy Demanding
Gary Hamel (2000, p. 20) Leading the Revolution. Harvard Business School Press. Harvard.
A more innovative strategy!
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17. THE THIRD GENERATION INNOVATION POLICY
From individual innovation model to team based model
Strong innovation systems and clusters are needed
Multiple knowledge sources of innovation and knowledge-based model are needed
The concept of innovation must be embedded into other policy arenas
European Innovation Area policy must be implemented in the Baltic Rim Region effectively
Business oriented university and public private partnerships in R&D
Science-based dynamic interfaces and new entrepreneurship policies must
be implemented
Informal networking between policy makers is important element of processes
Effective task-minded networks are needed
More sophisticated and specialised ways to exploit knowledge are needed
eEurope & eContent ideas should be implemented in innovation policy field
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18. EXPANDING R&D MACROECONOMIC CONDITION FOR INNOVATION
-ANNUAL INCREASE OF
PUBLIC AND PRIVATE R&D
THE ENGINE FOR GROWTH
IN A INNOVATION REGIME:
-BUSINESS –ORIENTED
UNIVERSTIES
THE EMPLOYMENT DRIVER
IN A INNOVATION REGIME
-INNOVATION EFFICIENCY
AT LOCAL LEVEL THROUGH
POWERFUL MUNICIPALITIES
Source: Innovation Tomorrow 2004, p. 61
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19. BEYOND CONTINUOUS IMPROVEMENT...
Nonlinear
Innovation
Business
Concept
Innovation
Radical
Gary Hamel (2000, p. 18)
Leading the Revolution.
Harvard Business School
Press. Harvard.
Continuous
Improvement
Business
Process
Improvement
Incremental
Component
System
Today radical innovations are needed. Relying on
incremental improvements is not enough.
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20. INNOVATION PROCESS Spin-outs Value/ cost Strategic partners Customers
Start-up
R&D
Idea/concept
Proof of concept
Scale-up
First commercial
plant
On-going business
Stages/milestones
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21. CONCLUSION The Baltic Rim networks should be developed in
4 critical fields of innovation and research:
R&D;
Creating strategic partnerships between key actors (universties, companies, funding institutions);
Customer market analyses; and
Spin out options.
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22. DYNAMIC INTERPLAY BETWEEN INNOVATION, FORESIGHT AND
EDUCATION SYSTEMS ARE NEEDED
In the knowledge societies, dynamic interplay
with innovation, education and foresight systems
are needed. In current situation this interplay is still
ineffective and has many problems. Innovation,
education and foresight networks in the Baltic Rim
region are not strong enough and these networks
should be strengthened. If national decision-makers
in Lithuania and other Baltic Sea countries see the
obvious needs to make these networks stronger and
work hardly in favour of them, we can expect that the
Lisbon goals can be achieved. If some nations in
Europe will meet the Lisbon Strategy goals, these
are the Baltic Rim Region nations. 
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23. DYNAMIC INTERPLAY BETWEEN 3 CRITICAL SYSTEMS OF KNOWLEDGE SOCIETY
BR INNOVATION
SYSTEMS
BR FORESIGHT
SYSTEMS
BR EDUCATION
SYSTEMS
©Kaivo-oja 2005
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24. SUMMARY: ACTIONS NEEDED
Third generation innovation policies are needed in the Baltic Rim region
Networks of innovation, education and foresight should be strenghtened
Common Baltic Rim policy forums are needed
Expand and develop knowledge cities on the basis of university and public-private partnership
We should promote entrepreneurship and the culture of innovation, relatioship between industry, science and R&D
Transnational partnerhips are needed to support the start-ups of Baltic-Rim co-operation activities
Deintensification of knowledge flows surrounding firms: knowledge gateways and highways to Baltic Rim science and development are needed (= closer co-operation between science parks and techology centers)
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25. I thank you for your attention!
Research Director, Dr Jari Kaivo-oja
Finland Futures Research Centre
Turku School of Economics and Business Administration
Tel (2) ,
GSM +358 (50)
Fax (2)
Web:
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