NEW INNOVATION SUPPORT SERVICES, case Finland

1. NEW INNOVATION SUPPORT SERVICES, case Finland Mervi Käki, CEO, Partner 20.5.2011

2. Finland

3. Practical experience in managing green-field Technopark projects. Practical experience of developing innovation support programs jointly with public authorities and private companies. Wide international experience of consulting in Europe, Russia, New Zealand and Botswana. Good collaboration with international innovation support organizations and investors to innovation infrastructure. Our experience:

4. Commercially • In society • In well-being Exploited Competence-Based Competitive Advantage Innovation = • New knowledge, know-how, technology • New product, technical solution, production process • New (expert) service • New design or brand • New business model, value-chain, value-network • New organizational, management or working life model • New way of providing a public service Source TEKEL

5. Innovation Circle COMPANIES Piloting Experts RESEARCH & EDUCATION PUBLIC SECTOR Resources

6. Structures or interaction? EU Authorities Ministries Municipalities National Academy Universities Polytechnics Research Institutes STPs Business Incubators Industrial Parks National Patents& Registrations Bureaus Invention Associations Funding Agency EU Funds Business Angels VCs Regional development centers Invest-In Organizations High-tech Companies Traditional Industry Companies

7. Innovation System Development Public support Regional or cluster development programs 1 – Innovation System Potential – Analysing R&D Support of growing companies Education Business incubators 2 – Willingness to Utilise & Develop Potential – Joint Vision & Promotion Funding models Legislation STP infrastructure & services 3-5 years on-going 5-8 years

8. Inno System Inno System INTERACTION between people, companies, universities, research and region Products, processes, services ideas

9. Innovation Circle COMPANIES Piloting Experts RESEARCH & EDUCATION PUBLIC SECTOR Resources

10. Sir, we have problem…;) Companies Authority STP and BI Academia Academia STP and BI Authority Companies Long-Term Vision: STPs & Business Incubators as developers of business friendly environment jointly with academia & authorities Short-Term Vision: STPs & BI as Public Service, making establishing and developing of SMEs easier

11. How deep is the chasm? Who will build the bridge? Universities Research institutes Public Sector Companies Entrepreneurs

12. University Education Value Loop Knowledge Skills Degrees • Recruitment • Faculty • Staff • Students Teaching Quality of Life Societal service Research Knowledge Joy Expertise Innovations

13. Cross-Collaboration Information and Communication Technologies • Finland develops Multi-Disciplinary and Cross-Organizational collaboration approaches. • In Research • In Education • Basically in Everything! Energy Industrial Systems Management Technology in the Community Business Design Business Research Bio- and Chemical Processes I Microtechnologies and Electronics Applied Materials Technology

14. The Role Applied Reseach in the Innovation System Innovative Customers User oriented Researchers Basicresearch Appliedresearch Developmentwork UNIVERSITIES RESEARCH INDUSTRY Creative Employees Cooperative Companies Source: VTT

15. Where is Applied Research in Our Inno System? Scientific Technological Programs Sectors of Basic Research Sectors of Applied Research Export Promotions Funds? STPs? Industrial Zones VC? Basic Research Applied Research Business development Marketing Internationalization R&D for Business

16. Traditional Commercialization Process

17. 4% of innovative ideas generated by science Commercialization takes up to 10 years Science & Education Applied Research R&D for Business Business Development 96% of ideas in Europe Comes from business & can be commercialized in 2 years Business (relations to partners, customers, market demand)

18. Innovation infrastructure – as key element of Regional Innovation System Growth Oriented Innovative Companies Premises & Services Clustering Innovation Infrastructure Regional Inno-vation System Business Incubation Public Sector promoting innovations & entrepreneurship Universities & Research Institutes Technology Transfer Attraction of direct investments Fund Rising Public & Private Financiers of Innovations

19. Users Driven Innovation Model ideas Markets Society Users Customers Education Science Fundamental Research Applied Research Joint Develop. Work Products Services Companies ideas ideas

20. Sources: Statistics Finland and Tekes Tekes Funding is Heavily Concentrated on R&D in Small Companies Share of Tekes funding in 2008, % Size of company by number of employees

21. Growth Process. Innovation Ecosystem. R&D Funding Global 20% Public Financing 1? 40-60% Public Internationalisation 80% Public Accelera-tion 95% Public 10 Incuba-tion 100% Public 35-40 Pre-incubation 50-80 Science & Technology Park 100% Public Ideas Expert Evaluation 100 Ideas Business Incubator 500-600 Home for development Invention Foundation UniInnoCentres Corporate Inno Mgt 1000/yr

22. Classify Clients to Match Tailored Services and to Focus Development Work “an R&D laboratory” Technical team with some management experience National or international scope High “Venture Capital Targets” “a Born Global Company” Team with technical and business expertise Global scope “Prospects” Growth Orientation “an Engineering Company” Technical team, little management experience Local or national scope “Technological SMEs” Low Low - Consultation Business Scalability - Mixture / project-oriented High - Product-oriented Source: Technopolis Ventures

23. How Finland did it to success? • Education system • Applied research • Open for international experience, experts and competition • State priorities • Funding models • Technoparks • Encourage regions • Networking – promote cooperation • State role as a promoter • Strong role of civil servants and experts

24. Thank you for attention! Questions? Comments? InnoPraxis International Ltd. Technopolis Innopoli, Espoo, Finland www.innopraxis.fi, mail@innopraxis.fi