1. Esko-Olavi Seppälä / SB HOW TO MEET THE CHALLENGE IN FINLAND'S STI POLICY TAMPERE, JUNE 4TH, 2008 TRENDS AND CHANGES IN STI POLICIES INFLUENCED BY GLOBALISATION Esko-Olavi Seppälä S&T Policy Council of Finland

2. Esko-Olavi Seppälä / SB 338,000 sq. km 5,3 million people Capital Helsinki 2 official languages Finnish Swedish GDP per capita 2006 € 31,700 a member of the European Union FINLAND; the country Helsinki

3. Esko-Olavi Seppälä / SB CHARACTERISTICS/FINLAND Political consensus + citizens' support Mutual trust between STI players 'Top-down and hands-off' expert and funding-level (meso-level) activities have occupied a key role (Academy, Tekes, Sitra) Economic crisis in early 1990s ICT boom technological innovation In 2000s: technological + social innovation Strengths (incl. high level of education) mostly self-created

4. Esko-Olavi Seppälä / SB GDP IN FINLAND 1985=100

5. Esko-Olavi Seppälä / SB Source: Statistics Finland R&D EXPENDITURE BY SECTOR OF PERFORMANCE, million € 1991 1993 1995 1997 1999 2001 2003 2005 2006

6. Esko-Olavi Seppälä / SB Enterprises Universities Public Sector Total OECD 1.55 0.40 0.30 2.25 U.S.A. 1.80 0.35 0.45 2.60 EU-27 1.10 0.40 0.25 1.75 Japan 2.550.450.35 3.35 Canada 1.050.700.20 1.95 Finland 2.45 0.65 0.35 3.45 BREAKDOWN OF INVESTMENT IN R&D IN 2005 BY SECTOR OF PERFORMANCE (% of GDP) Source: OECD

7. Esko-Olavi Seppälä / SB Food industry 1½% Chemicals 7% Other industries 20½% Wood processing industry 2% R&D EXPENDITURE IN FINNISH ENTERPRISES IN 2006 Electronic and electrical industries 56½% Engineering and metal products 11% Other manufacturing industries 1½%

8. Esko-Olavi Seppälä / SB STRUCTURE OF GOV'T R&D FUNDING Basic institutional funding Free ”competitive” funding EUR million 75% 25% 40% 60% 45% 55%

9. Esko-Olavi Seppälä / SB Government (Gov't R&D funding 2008: 1 798 million Euro) Science and Technology Policy Council Ministry of Education (778 million €) Ministry of Employment and the Economy (673 million €) Other Ministries (347 million €) Finnish Funding Agency for Technology and Innovation (526 million €) Academy of Finland (297 million €) SITRA Fund HE institutes and government research institutes Enterprises, private research institutes, funds and foundations, learned societies, intermediaries

10. Esko-Olavi Seppälä / SB SCIENCE AND TECHNOLOGY POLICY COUNCIL OF FINLAND CHAIRMAN Prime Minister DEPUTY CHAIRMEN Minister of Education and Science Minister of Economic Affairs OTHER MINISTERS Minister of Finance + 0 - 4 other ministers 10 OTHER MEMBERS Academy of Finland Finnish Funding Agency for Technology and Innovation (Tekes) Industry and Commerce Employees’ organisations Universities + other members Science Policy Subcommittee Technology Policy Subcommittee Council Secreteriat

11. Esko-Olavi Seppälä / SB Source: Finnish Science Barometer 2004 FINNISH SCIENCE BAROMETER 2004

12. Esko-Olavi Seppälä / SB SWOT ANALYSIS OF FINLAND'S R&D A small domestic market area and population Limited economic and intellectual resources Fragmented research activities: Resources allocated to a large number of small units A small number of foreign students and researchers The inflow of FDI is low

13. Esko-Olavi Seppälä / SB 2000’s The situation in the mid-2000s

14. Esko-Olavi Seppälä / SB 1990’s 2000’s Green line describes the situation in the 1990s

15. Esko-Olavi Seppälä / SB MAIN CHALLENGE HOW TO RETAIN NATIONAL STRENGTHS AND COMPETITIVENESS IN THE FUTURE, IN OPEN GLOBAL COMPETITION? THE "PACKAGE OF REFORMS" OF THE PRESENT GOVERNMENT: - "THE BIG FIVE" - GENERIC DEVELOPMENT ISSUES - SELECTIVE MEASURES

16. Esko-Olavi Seppälä / SB MEETING THE CHALLENGE I THE BIG FIVE: –Structural and other renewal of the HE institution –National innovation strategy –National infrastructure policy –Structural and other renewal of the sectoral research –Implementation of a four-stage research career system

17. Esko-Olavi Seppälä / SB NATIONAL INNOVATION STRATEGY

18. Esko-Olavi Seppälä / SB MEETING THE CHALLENGE II GENERIC DEVELOPMENT ISSUES: –Internationalisation –RDI funding National target 4 % of GDP by 2011 Share of public funding around 30 %, i.e. 1.2 % of GDP (today about 1 %)

19. Esko-Olavi Seppälä / SB MEETING THE CHALLENGE III SELECTIVE DEVELOPMENT ISSUES: –Strategic centres of excellence in STI ("SHOKs"): A cluster-based PPP policy instrument Example: www.forestcluster.com –Centres of expertise programme ("OSKE"): A regionally driven cluster-based development programme (2007-2013)

20. Esko-Olavi Seppälä / SB www.research.fi