1. Entorno de Innovación de Finlandia y Tekes Resultados y Experiencias Vinnova 23/10/03 Kari Ruutu Head of Finnish EUREKA office Tekes, the National Technology Agency Madrid 19 de mayo 2005

2. Posición de Finlandia en la economia global Que ha hecho Finlandia? Política de innovación Vinnova 23/10/03

3. Posición de Finlandia en la economia global Que ha hecho Finlandia? Política de innovación Vinnova 23/10/03

4. Source: World Economic Forum 13.10.2004

5. Source: World Economic Forum 9.3.2005

6. Ranking of EU countries DM 36054 03-2005 Copyright © Tekes Denmark Sweden UK Netherlands Germany Luxembourg France Austria Belgium Ireland Spain Italy Portugal Greece Information society Innovation and R&D Liberalisation Financial services Enterprise Social inclusion Sustainable development Network industries 1 3 2 6 4 7 5 9 8 11 10 14 12 13 15 1 4 2 6 7 3 13 5 9 8 10 11 12 14 15 1 2 6 3 5 8 4 7 10 9 12 11 13 14 15 4 1 2 8 7 3 5 6 9 10 15 12 13 11 14 1 3 4 2 7 8 5 6 10 11 9 12 13 14 15 3 2 5 1 7 10 6 9 12 8 4 11 15 13 14 2 1 2 8 4 12 5 9 7 6 10 11 13 14 15 1 4 3 7 6 2 8 9 5 10 13 12 11 14 15 The Lisbon review Source: WEF, The Lisbon Review 2004 Finland Total rank 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

7. Wood products Pulp, paper and paper products Basic metals and metal products Other goods Electronics and electrotechnical products Machines, machinery and vehicles Chemicals and chemical products Finnish exports of goods % of total exports of goods DM 32186 03-2005 Copyright © Tekes Source: National Board of Customs

8. EU Exports of Finnish high tech products totalled 8.5 billion euros in 2004, i.e. 17.5 % of total exports of goods. Source: National Board of Customs; Statistics Finland, according to the OECD product catalogue defined in 1995 Share of high tech exports in some OECD countries Norway DM 32186, 36054 and 38065 03-2005 Copyright © Tekes USA Great Britain Switzerland Japan Netherlands FINLAND France Germany Denmark Sweden % of total exports of goods

9. Exports of Finnish high tech products totalled 8.5 billion euros and imports 5.5 billion in 2004. Exports of Finnish high tech products totalled 8.5 billion euros and imports 5.5 billion in 2004. Finnish trade on high tech products DM 32186 03-2005 Copyright © Tekes Billion euros ImportsExports Source: National Board of Customs; Statistics Finland, according to the OECD product catalogue defined in 1995

10. Structural changes in Finnish industry reviewed by development of employment Level of know-how High Low 19801985199019952000 Index, 1980 = 100 Source: Mika Pajarinen & Pekka Ylä-Anttila: Maat kilpailevat investoinneista - teknologia vetää sijoituksia Suomeen, ETLA B 173 (2001) DM 38065 04-2002 Copyright © Tekes

11. Labour productivity in industry Value added per hours worked FINLAND Sweden Netherlands Great Britain France Germany Japan Canada USA USA 2000 = 100 DM 36097 and 36065 08-2004 Copyright © Tekes Source: University of Groningen

12. Source: European Innovation Scoreboard 2004 DM 36052 and 36054 12-2004 Copyright © Tekes Applications for high technology patents in the United States Applications per million inhabitants in 2002

13. Posición de Finlandia en la economia global Que ha hecho Finlandia? Política de innovación Vinnova 23/10/03

14. Milestones of Finnish technology policy DM 32190 04-2003 Copyright © Tekes 1979 1982 1983 1984 1985 1986 1986 1990 1991 1992 1992 1994 1995 1995 1995 1996 1997 1998 1999 1999 2002 National technology committee Council of State resolution on technology policy Founding of Tekes Technology programmes started EUREKA started OECD assessment of Finland's science and technology policy EU framework agreement on research co-operation Report of the technology programme committee Finland becomes a member of CERN Finland the chair country for EUREKA Founding of Finland's EU R&D secretariat EEA agreement intensified research co-operation with the EU Finland becomes a member of the EU Finland becomes a member of ESA Funding of energy technology transferred to Tekes Government decision to increase R&D funding Founding of Employment and Economic Development Centres Preparation of the Fifth Framework Programme in EU Finnish R&D funding exceeds 3 % of GDP Finnish Presidency of the EU Preparation of the European Research Area

15. R&D/GDP in Finland 1981-2003 % Science Policy Technology Policy Innovation Policy R&D/GDP,policies © S&T Balance Where is the focus? Future?

16. South Korea R&D input in some OECD countries Sources: OECD, Main Science and Technology Indicators; national statistics authorities. USA Japan Germany Sweden UK France Austria FINLAND Denmark Percentage of GDP Canada Israel Iceland Singapore China Norway DM 36109 02-2004 Copyright © Tekes 3.5 3.0 2.5 2.0 1.5 1.0 4.0 4.5 0.5 5.0 OECD total Est.

17. Source: Statistics Finland R&D in Finland DM 36100 and 38065 12-2004 Copyright © Tekes Billion euros 5.0 4.5 4.0 3.5 3.0 2.5 2.0 1.5 1.0 0.5 0.0 2.2 3.9 4.4 2.9 4.6 4.8 3.4 5.0 0.9 1.1 1.5 1.7 1.8 Enterprises Universities Other public research Prel. 5.0

18. Cooperation between companies Share of cooperating companies of all innovating companies Source: Towards a European Research Area - Key Figures, Special Edition. EU 2001 % Docs 29653 04-2002

19. The first Finnish Information Society Strategy in 1994 Current programme adopted by the Government 25.9.2003 Headed by PM Matti Vanhanen and ministerial group (PM + 4) Information Society Council (ministers + 36 organisations + 7 permanent experts) Focus on: the implementation of the available technologies the provision of new electronic services the re-engineering and development of both back and front office processes co-operation and intersectorality THE FINNISH INFORMATION SOCIETY PROGRAMME

20. Posición de Finlandia en la economia global Que ha hecho Finlandia? Política de innovación Vinnova 23/10/03

21. Docs 32190 04-2002 Million euros Innovation system Resources and funding in 2000 Public Private Basic researchApplied researchBusiness R&D Business development Marketing Internationalisation R&D at companies 3,100 Business Angels 380 Finnvera 320 (50) Tekes 2.400 VTT 210 (60) Universities 790 (350) Ministries, TE-Centres and sectoral research 290 (210 ) Academy of Finland 160 Tekes 380 From abroad 120 Venture Capitalists Private 350 Tesi 45 (80) Sitra 100 (2) Finpro 60 (30) Found. Innov. 5

22. Public sector activities of R&D in Finland Ministry of Trade and Industry DM 32190 04-2003 Copyright © Tekes Academy of Finland Universities Ministry of Trade and Industry Sitra Finnvera Oyj Finpro Industry Investment PARLIAMENT GOVERNMENT VTT Tekes Science and Technology Policy Council Regional TE-Centres Other ministries and their institutes Ministry of Education

23. Tekes mission statement Tekes primary objective is to promote the competitiveness of Finnish industry and the service sector by technological means. Activities aim to diversify production structures, increase production and exports, and create a foundation for employment and social well-being. Docs 32189 04-2002

24. Tekes, the National Technology Agency PROJECT FUNDING Internal Audit COMMUNICATIONS DIRECTOR GENERAL Board FINANCE AND ADMINISTRATION TECHNOLOGY INTERNATIONAL NETWORKS Strategy IMPACT ANALYSIS Space Activities DM 26047 10-2004 Copyright © Tekes Technology-based Business Development Information and Communications Technology Bio- and Chemical Technology Product and Production Technology Energy, Environment and Construction Technology Funding for Fea- sibility Studies Research Funding Business R&D Funding Finance Administration Personnel IT Legal Affairs Internationalisation Services European Activities Project SupportProject and Document Services Business Economics Overseas Offices Beijing Brussels San Jose Shanghai Tokyo Washington, D.C. Technology Units at 14 Regional Employment and Economic Development Centres

25. Tekes overseas offices Five 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 international offices serving Tekes technology programmes and technology strategy work Five international offices serving Tekes technology programmes and technology strategy work Docs 32102 Helsinki Toky o Brussels San Jose Washington, D.C. Beijing Shanghai

26. Finpro and the Trade Center network

27. International activities in the Tekes strategy Selective project funding Technology programmes Activation for innovation Development of the innovation environment International technological cooperation and inter- nationalisation of companies Functions DM 31947 09-2002 Copyright © Tekes

28. 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 32189 11-2003 Copyright © Tekes Boosting exports, broadening industrial and economic base, generating new jobs and improving well-being.

29. 349 386 316 252 244 386 395 415 390 379 430 Tekes technology funding in the state budget Million euros DM 26047 and 38065 01-2005 Copyright © Tekes National share of EU Structural Funds Industrial R&D loans Capital loans for R&D Industrial R&D grants Coordination of programmes Research funding During the years 2000-2005 Tekes also had an annual allocation of 5-10 million euros from the EU Structural Funds as the EU share. The funding resources for industrial R&D loans and capital loans for R&D merged in 2004. 2004 ICT30 %

30. 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 30256 03-2004 Copyright © Tekes

31. Information and Communications Technology User-oriented Information Technology - USIX Future Products - Added Value with Microtechnologies - PRESTO * Software Products - SPIN Well-being and Health - iWELL * Explorative System-Integrated Technologies - EXSITE Intelligent Automation Systems - ÄLY Networks of the Future- NETS Miniaturization of Electronics - ELMO Space Technology Programmes Space Research Programme Antares Avaruusteknologiasta liiketoimintaa - AVALI Total budget mill. euros Participating*) research comp. units 1999-2002 2000-2002 2001-2003 2001-2004 2001-2005 2002-2005 77 27 76 42 5 34 120 100 45 15 7 28 7 18 4 - 80 52 85 101 8 52 18 - 2001-2004 2002-2005 8 15 - 7-7- Technology programmes in 2002 Docs 30256 F 03 /02-03 * = Intertechnological programme

32. 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 31947 03-2003 Copyright © Tekes 37 % 63 % 51 % 49 %

33. Mapping innovation environments Cooperation in selected areas Increasing of cooperation levels Strengthening cooperation networks Focus areas in international cooperation Europe FP6, EUREKA, COST, ESA National programmes USA and Japan Emerging technology powers China, Korea, Israel, etc Maintaining level of participation Developing quality and focus of participation Networks of national programmes DM 31947 04-2004 Copyright © Tekes

34. Tekes international partners DM 31947 11-2003 Copyright © Tekes

35. International Energy Agency Finland in the European technology cooperation DM 31947 11-2004 Copyright © Tekes Network for market oriented R&D, national funding Creates networks of nationally funded research projects at a European level European Space Agency Nordic technology cooperation EU R&D Framework ProgrammeEU EUREKA COST ESA IEA International Energy Agency NICe NEFP

36. Approx. 60% of the significant Finnish innovations for the last 15 years were partly financed by Tekes. Palmberg, Niininen, Toivanen, Wahlberg (2000): VTT Group for Technology Studies, Working Papers, 47 The importance of public R&D financing was emphasised in the development of radical innovations representing the severest challenge to know-how. Tanayama (2002): VTT Group for Technology Studies, Working Papers, 53 Especially in recent years, enterprises with Tekes financing have contributed to the growth of net employment considerably more than other enterprises. Tekes-financed enterprises also seem to have been able to offer more stable jobs. Maliranta (2000): ETLA, B168 The publicly funded projects are high quality projects performed by the key players of the economy Tekes’ Impact on Finnish Companies and Innovation Activities

37. The productivity of the enterprises that have received financing from Tekes is higher and grows faster than the average. Lehtoranta (2000): ETLA (Res. Inst. of the Finnish Economy), B168 At branch level, both public and private investments in R&D promote growth of productivity. Niininen (1999): Helsinki School of Economics and Business Administration A-158 R&D increases aggregate level productivity, the impacts appear after 3-5 years. Maliranta (2002): ETLA, Discussion papers No. 795 In general, insights of R&D as a source for growth are presented in various studies by, e.g., OECD Innovation Generates Growth and Improves Productivity Innovation, Business and National Economy –Innovation Research viewpoint

38. Vida dificil Nokia Futbol Vinnova 23/10/03

40. Thank you for your kind attention! www.tekes.fi www.research.fi