1. THE ROLE OF PUBLIC SECTOR IN PROMOTING START UPS – FINNISH PERSPECTIVE WB ICT Days, March 30th 2011 Jukka Salminiitty, Director, FinNode USA / Embassy of Finland

2. 24.2.2016 2 Source: Tim Gulden, UMD, Richard Florida, U of T, Pekka Himanen, HIIT Patents Scientific publications The World of Innovation is Spiky….

3. The global innovation HUB development concept Company and forum driven activities Public-private partnerships Public policy driven activities “Smart Handover” National /Regional Innovation Policy Research & Development Activities Education (elementary to university) Physical Infrastructure and Service Structures Cluster Policies & Programs Start-ups Living Labs / Test-Beds Incubation Environments Anchors Growth SMEs Copyright and all rights reserved. 7

4. Finnish innovation environment Research and Innovation Council Universities Ministry of Education Ministry of Employment and the Economy Ministry of Employment and the Economy Other ministries Other ministries Parliament of Finland Council of State Finpro Finnvera Industry Investment Finpro Finnvera Industry Investment EED-Centers The Finnish National Fund for Research and Development Industries & Enterprises and other research centers The Finnish Funding Agency for Technology and Innovation

5. 2009 National Innovation Strategy - New Directions User- and demand-driven innovation processes Continuity in developing science, technology and innovation environments Innovative individuals and communities Broad-based and systemic innovation Examples of new pubilic activities: FUNDING: Young Innovative Company Funding Program by Tekes GLOBAL INSIGHT: Establishment of FinNode Network by MoEE ASSISTANCE: Gaselli by Finpro

6. FUNDING FOR YOUNG INNOVATIVE COMPANIES (> 6 YRS OLD, MAX 1 M € & 75% GRANT) Preliminary phase funding: Invest in planning - global market assessment, improvement of business plan - max 6 months, 50.000 € First phase funding: On the path to growth - demonstrate companies competitiveness in global markets - max 250.000 € Second phase funding: Accelerate company’s growth - Enhance competitive edge and rapid international growth - Max 700.000 €

7. TestbedGaselli Action in Finland FinNode model Innovation Watch / Sense Making Strategic planning in Finland Markets / Signals

8. GASELLI PROGRAM A tool for successful Market Assessment and Validation 1.Selecting the companies based on ‘Silicon Valley’ criteria. 2.Training to Silicon Valley bar of business practices regarding to market definition, value props and pitching, business planning for market entry. 3.Companies spend enough time in their market assessment – instead of one week road show, the companies spend a minimum of one month getting a very concrete understanding of the market opportunities and the ecosystem of their business in the US market. 4.Companies are “incubated” in the US market following Silicon Valley standards in a very dynamic state-of-the-art environment in Plug & Play Tech Center or other incubators (US MAC, I/O Ventures etc.). Connected networked eco-system – potential customers, partners and VCs – are available through Plug & Play’s and FinNode’s networks. In other countries similar incubators (like FinChi in China etc.) 5.Companies will concentrate on their business – not finding the ‘service providers’. When ‘service providers’ are needed, wide network is available to find the best suited help.

9. LESSONS LEARNED -Education & R&D cababilities is mandatory base, not a guarantee for success -LocalGlobal, understanding of future global market needs and competition is crucial; be globally connected -Excellent PPP is important -Constant change is needed, also in public sector

10. Thank You!