Innovations and Growth Research 2019 Growth of Finnish Companies in Global Economy

1. Innovations and Growth Research 2019 Growth of Finnish Companies in Global Economy

2. themes 2019 -Growth of Finnish Companies in Global Economy Twothemes: • Whatkind of platformsareneeded for globallyinnovativecompanies? • What is a role of publicactors? • What are the impacts of long-run public innovation funding and growth services on the economy? • How publicexport-promotionservicescan help in globalization of companies? 21.1.2019

3. Two research themes • What kind of platforms are needed for globally innovative companies? • How do platforms function and what mechanisms drive value creation in the Finnish operation environment? One purpose of this call is to measure the new world class expertize for creating and capturing value through global value chains, networks and platforms, which is beneficial in small open advanced economy as Finland. This target can not be reached without deep dialogue with companies, those that are already in the market and those who seeking their way to success. Therefore, we need to know how to manage innovation environment in order to create growth through developing platform economy. • How the public actors can make our innovation environment more attractive for the global value chains and platform economy? Several questions occur in this topic. How could we utilize learnings from global success stories in platform economy to create new success stories? Which ways could public actors drive national and foreign talents to build these success platforms? What kind of operation environment is needed to foster PPPs and develop these platforms? What is needed to speed up the development? II. What are the impacts of long-run public innovation funding and growth services on the economy? • What are new methodologies in impact analysis which could be developed further? The aim of RDI funding is to generate sustainable economic, social and environmental development and improve the net wellbeing of society. From the growth perspective there are two goals: 1) Business scalability and economies of scale improve, and 2) Radical innovations and new business models renew economic structure. However, impact analysis has several methodological shortcomings, for example, how impacts of funding can been measured, by using evolutionary methods, in the long run impacts where timeline is 20-30 years. Another example is econometrical modeling and how it can better measure “high risk- heterogenous return” framework, which is typical for public RDI funding? • How to measure new policy tools in impact analysis? Moreover, there occurs a paradigm change when innovations are pushed harder to the global markets. Therefore, it should be asked how new policy tools such as export-promotion services can help in globalization of companies? The next step in research is to describe this paradigm change in the impact analysis framework.

4. STEPS IN 2019 • Opening 21.1.2019 • Application deadline 5.4.2019 • Researchideasdeadline 15.2.2019 • 4.–15.3.2019 • Revisions of the project plan • Vision for the project • Business Finland pitchingsessions • Utilization roadmap • Research team and stakeholder inputs 21.1.2019

5. “Research questions, methods and delivery must be business, market and policy driven” Elements of Utilization Roadmap • Company related • Verified Research Questions • Policy Briefs • Round Tables • Forums for transition • Policy related • Tools for Socio-Economic Transition • Empirical methodology to connect with drivers • Market related • Business Drivers • Stakeholder Needs • Research Agenda to serve development in market economy and stakeholder perspectives • Roadmap for Utilization and impacts 21.1.2019

6. What will be needed for pitching? Prepare three documents forresearch ideas and send them to email address: innovaatiotutkimus (at) businessfinland.fi (deadline 15.2.2019): • Idea gathering - Abstract (max 50 words) and description of the project (max one A4 page) • Utilization roadmap – partially co-produced with identified potential beneficiaries (max one A4 page) • Team CV, preliminary funding plan and composition of steering group (max one A4 page) Business Finland asks max. 10 ideas for the 15 min. pitching + 30 min sparring and discussion session (Weeks 10-11). Max 5 ideas will be asked to the full project application phase. 21.1.2019

7. What will be needed for full project application? Compile a full application (including project plan max 15 pages) in case that pitching discussions support it by using our online services: https://www.businessfinland.fi/suomalaisille-asiakkaille/asiointipalvelu/ • Description of planned work • work packages • research team • project schedule • Stakeholders and funding plan • Description of supplementing funding (by other stakeholders) • Stakeholder commitments (preliminary indications for commitment) • Utilization roadmap • Composition of steering group Note: Contents of the idea gathering should equal with the final project plan (and evaluation frame) Commitment for externalfunding: https://www.businessfinland.fi/globalassets/finnish-customers/01-funding/08-guidelines--terms/forms/ilmoitus_projektiin_osallistumisesta___notification_of_participation_in_project.docx 21.1.2019

8. Evaluation FRAME - What will be appreciated in evaluation • Impact and Relevance (minimum requirement) • Relevance to the call themes • Quality and credibility of utilization roadmap with the stakeholders • Relevance to goals of Business Finland’s Strategy and Impact Assessment • International collaboration (minimum requirement) • Quality and volume of collaboration with international top research groups • Collaboration of international stakeholders is appreciated • Multidisciplinary research agenda (minimum requirement) • Multidisciplinary approach in research team • Cross cutting view to the subject

9. Impact steps for innovations and growth research call Impacts • Global growth of companies – What are the sources of new economic growth? • Business scalability and economies of scale improve • Radical innovations and new business models renew economic structure • New sources for growth are developed by platforms • Overall increase in productivity and competence Outputs / direct and indirect resultsin Finland • Project activities • Thequantity and quality of innovation and growth research increase and meets the global context • New innovation policy tools are established based on strong impact analysis • Exchange of know-how between research sector, innovation policy actors and companies is enhanced to support renewal of businesses • Finnish innovation environment’s capabilities to catalyze emergence of new growth increases • Project activities / funding criteria • Challenge-based research agenda, which develops new methodologies for stakeholders • Utilization roadmaps with system level impact • Team CVs for credibility and development of research groups • Policy Briefs for creating basis for dialogue between stakeholder groups • Round Table Discussions for supporting the dialogue • Transition Arenas for creating new innovation ecosystems Innovationresearch / Project activities IMF Inputs • Innovation funding with annual total volume is 1 Meur • Competence base sourced frominnovation environment actors, Business Finland’s strategy and impact assessment 21.1.2019

10. Inputs Results Goals Funding Increase of turnover, jobs and exports Impact Model in Business Finland Global growth of companies Services Highvalueadded products and servicesimproveproductivity World-classecosystems New companies, trial platforms and ecosystemsareborn in Finland Customers Impacts Themes Competitive business environment Entry of Finnishcompanies in theglobal market increase Business scalability and economies of scaleimprove Activities Fundingincreasecompanies’ ownfunding Radicalinnovations and new business modelsreneweconomicstructure Capabilities in business, intenarnationalization and r&dincrease Trial platforms and ecosystemsattractnewglobalactors to Finland Amount of customers and networking (domestically and globally) increase Finnishcompanieshavefocalinvolvement in globalecosystems Impacts on society Well-being of citizens and environment Companiesacquirenewinformationaboutglobalchallenges Spillovers Impactsspillwidelyoverthesociety and economy, and improveproductivity and sustainableeconomicgrowth Creatingnewmarkets Market failures(networks, information, finance, climatechange)