1. WBI KE Finland Helsinki 30-31 August 2004 NEW PARADIGMS FOR INTERNATIONAL KNOWLEDGE-BASED ECONOMY Professor Jorma Routti Helsinki University of Technology & CIM Creative Industries Management Former President of Sitra & Director General of Research DG of European Commision www.cimfunds.comwww.cimfunds.com jorma.routti@cimfunds.com

2. Finland is participating in 840 projects in the V th Framework Programme and receives EUR 200 Million EU financing. EU R&D pro- grammes Industrial R&D cooperation. There are 700 projects in execution; Finland is involved in 60 of them with a volume of EUR 50 Million. EUREKA Finland a member since 1995. Finland's contribution was over EUR 13 Million in 2000 and Finnish industrial return from ESA was 98 %. IEA International Energy Agency of OECD. Finland is taking part in 40 projects under 20 research contracts. Finland in the European technology cooperation A 09 / 01-06 COST Cooperation in scientific and technical research. Annual volume in Finland is about EUR 30 Million. Finland is involved in over 2/3 of the projects. ESA European Space Agency

3. Public sector activities of R&D in Finland A01/ 99-12 Ministry of Education Academy of Finland Universities Ministry of Trade and Industry Tekes Regional TE-Centres Other ministries and their institutes Sitra Finnvera Oyj Finpro Science and Technology Policy Council PARLIAMENT VTT GOVERNMENT

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

9. R&D input in some OECD countries Sources: OECD, Main Science and Technology Indicators database, Statistics Finland (Finland 2002) and Statistiska centralbyrån (Sweden 2001, estimate). Docs 36109 02-2003 USA Japan Germany Sweden Great Britain France Austria FINLAND Denmark OECD total 3.5 3.0 2.5 2.0 1.5 1.0 4.0 Percentage of GDP est. Canada Israel 4.5 0.5 Iceland South Korea Singapore China Norway

10. Exports of Finnish high tech products totalled 9.9 billion euros in 2001, i.e. 21 % of total exports of goods. Source: Statistics Finland, according to the OECD product catalogue defined in 1995 The share of high tech exports in some OECD countries 1988-2001 Norway USA Japan United Kingdom Netherlands FINLAND Switzerland France Sweden Germany Denmark Docs 32187 B 03 /02-03 % of total exports of goods EU

11. Source: Statistics Finland R&D intensity and GDP growth in some countries A 07B/ 01-06 4.0 3.0 2.0 1.0 0.0 0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0 R&D intensity, % Real growth in GDP 95-99, %

12. Public sector activities of R&D in Finland A01/ 99-12 Ministry of Education Academy of Finland Universities Ministry of Trade and Industry Tekes Regional TE-Centres Other ministries and their institutes Sitra Finnvera Oyj Finpro Science and Technology Policy Council PARLIAMENT VTT GOVERNMENT

14. Forest Industry Cluster 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

15. Shifting Responsibilities for Economic Development Old Model Government drives economic development through policy decisions and incentives New Model Economic development is a collaborative process involving government at multiple levels, companies, teaching and research institutions, and institutions for collaboration

16. Eenlightenment Wwisdom Uunderstanding Kknowledge Iinformation Ddata  Jorma.Routti@cimfunds.com