Lu.Be.C. Lucca, 21 e 22 ottobre 2010

(1)

Tekes

the Finnish Funding Agency

for Technology and Innovation

Tekes – Agenzia Finlandesa

per la Promozione di Tecnologia ed

Innovazione

(2)

1. Facts

- and figures

2. Tekes

- what do we do and why

3. Innovation

- more than technology

4. Examples

- of successful R&D work

(3)

Finland in a nutshell

Parliamentary republic Government Parliamentary republic 5,371,000 (112th) Population 2010 estimate 60,418,000 (23rd) 338,000 km2 (64th) Area 301,000 km2 (71st) 16/km2 Density 200.5/km2

Helsinki, 0,5 mill. Capital Rome, 2,7 mill.

Finnish,

Swedish Official language(s) Italian

2009 estimate _{GDP (nominal)} 2009 estimate

$238.128 billion Total $2.118 trillion

(4)

Tekes in a nutshell

 Tekes's services

• Public agency under the Ministry of Employment and the Economy

• Funding for innovative R&D&I and business projects

• Networking Finnish and global companies and researchers

• Tekes is non-profit and takes no equity or ownership

on intellectual property.

 Customers

• Finnish and international companies located in Finland

• Universities, research institutes etc.

- also company groups or company-university -coalitions

 Resources

• Budget: 600 million euros annually

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Tekes aims to

 build a strong networked

knowledge

base

 renew the economy

and create new

businesses

 increase

productivity

in industries

and service sector

 enhance

wellbeing

in society and

improve environmental sustainability

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How do we work?

 Tekes encourages companies to do challenging R&D&I

• Funding for the creation of new know-how and development of products,

processes and service or business concepts

• We accept more risks than private financiers

 Tekes facilitates collaboration and networking

• between small and large businesses

• industry and the academia

• public and private organisations

• globally – nationally – regionally

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Tekes

R

&

D

&

I

funding in the state budget

1983 – present

(millions of euros)

Founded

year 1983

Year 2000

Year 2010

Totally 35 million eur

180

Research funding for universities

250

205

_{Research funding} for universities grants and loans

for companies´ technology R&D projects (products, processes)

220

130

grants and loans for companies´ technology R&D projects (products, processes)

grants and loans for companies´ Innovation projects:

-New business competence -New business consepts -Service development -Product and

service design

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During the past five years (2004 - 2009)

 Tekes has funded

• 2,700 public research projects

• 4,400 corporate research, development and innovation projects

 The projects have resulted into

• 2,400 products

• 1,700 service innovations

• 1,000 production processes

• 3,500 patent applications

• 4,900 academic theses

• 11,300 academic publications

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Half of the funded projects are

internationally networked

Tekes´overseas offices

11-2009 DM 607668

International activities in projects funded by Tekes in 2006 - 2008

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Being Glocal: Branches and Regional Network

Tekes is the biggest and nationwide R&D&I player in Finland, but:

- we have 14 local offices

around Finland

- we build local innovation

strategies based on local strengths

- we can start proactive funding programmes based on these

strengths and clusters

Result: we can act more local than most other innovation organisations

Regional

Network

North Savo (Kuopio)

North Karelia(Joensuu)

South Savo(Mikkeli)

Häme(Lahti)

South-eastern Finland (Lappeenranta)

Kainuu (Kajaani)

Lapland (Rovaniemi)

Central Finland(Jyväskylä)

Pirkanmaa(Tampere)

Satakunta(Pori)

Southwest Finland(Turku)

Southern Ostrobothnia (Seinäjoki)

Northern Ostrobothnia(Oulu)

Ostrobothnia(Vaasa)

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Lessions learned 1983 - 2010:

1. Bring the academic world close to companies – they both benefit

2. Pay attention in long-term development work even in smallest

companies – the game is today “evolve or die”, the competition is

global

3. Build on something that already exists: even the world is today

global, look for local business potential. It all starts there

4. In post-industrial world, seek new potential growth outside the

obvious or conventional: culture services, leisure, tourism etc

03-2010 DM 26047

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Recent developments

New innovation strategy:

 demand-based innovations

 innovative individuals and

creative communities

 international networking

 Service development and

service design

=> Tourism, free-time and

leisure services

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FINLAND - Encouraging innovation

environment

_{ Growing investments in R&D&I –}

public and private

 Active dialogue involves

companies, research institutes

and public sector

 Competitive economy

– the 6th most competitive

country in the world

World Economic Forum 2009

 The 2

nd

_{most competitive country}

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Keep in touch!

Information about Finnish innovation environment, Tekes's activities

interesting publications and research and development projects

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Impacts of R&D funding

Tekes’ s clients have experienced more

rapid growth

than

companies in the business register in general.

Business Aid Database Creation: Final Report by the Working Group (2006)

R&D funding increases the growth, activeness in seeking

patents

and demand for labour of companies and reduces the likelihood

of business closures and mergers.

Hovi et al. (2006)

R&D funding has increased the growth of

productivity

and improved

employment

in companies with a well compensated R&D.

Piekkola (2006)

Nearly two in three companies perceived Tekes funding to have

helped the company increase its net

sales

.

(17)

Tekes funding is heavily concentrated on

R&D in small companies

0

5

10

15

20

25

30

35

40

1-49 50-249 250-499 Over 500

Tekes funding covers more than one third of R&D in companies with less than 50 employees, but less than three per cent of R&D in companies with more than 500 employees.

Sources: Statistics Finland and Tekes DM 447586, 58774, 279135 and 218475 01-2009

Size of company by number of employees

Share of Tekes funding in 2008 compared with companies own R&D investments in 2007

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Million euros

Tekes R&D funding by industry

0 10 20 30 40 50 60 70 2003 2004 2005 2006 2007 2008 2009 Machines and metals industry Electronics and electrotechnical industry Chemical industry Forest industry Construction Foods

In addition Tekes funded workplace development through the TYKES-programme with 12 million euros.

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Tekes R&D funding for services

0 10 20 30 40 50 60 2003 2004 2005 2006 2007 2008 2009 Software, data processing and user testing Architecture, engineering and technical services Other services Management and design consulting R&D services

Wholesale and retail trade

Health care and social services In addition Tekes has funded workplace development with 12 million euros.

01-2010 DM 624592 and 607668

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Branches and

Regional Network

1/3

1. Telecommunications and Electronics Industries

Telecommunications equipment and services, measuring instruments, consumer electronics, components

2. Software and Digital Media Industries

General IT services, software products, content business, graphics industry

3. Forest and Chemical Industries

Pulp and paper industry, wood product industry, forest industry machinery, equipment, process automation and services, wood production, forest industry chemicals, technical chemistry,

petrochemistry, chemical industry machinery and equipment, production of plastic raw material and chemicals

4. Mechanical Engineering Industry

Vehicles, working machines, unit goods production, goods production-related IT and automation, product and production planning services, integrated services in

products, metal refining, composites, plastic products, textile, clothing, leather and shoe industry

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Branches and

Regional Network

2/3

5. Real Estate and Construction Industries

Real estate, planning, building development and related services, construction, building technology and equipment construction materials, construction data systems, infra

6. Energy and Environment Industries

Energy production, distribution and use, fuels, waste processing, recycling, water supply and sewerage, air and climate protection, planning services, machinery and equipment for energy production and use electrical engineering and equipment, IT related to energy and environmental systems

7. Services and Well-being Industries

Services for health care, social care, training, security, tourism and adventure, other knowledge-intensive services, IT in services

8. Life Science Industries

Pharmaceuticals, food chain, diagnostics, health care biomaterials, IT in bio production, pharmaceuticals and food production

03-2010 DM 26047

(22)

Branches and

Regional Network

3/3

9. Business Economics

Business and funding analysis;

Improvement of the business conditions for growth companies and especially start-up companies and expertise in entrepreneurship, financing and venture capital; Disbursements of company funding and development of accounting, disbursement and monitoring practices

10. Support for Core Activities

Services related to documents, projects, and project and customer advice

11. Regional Network

Innovations and International Business Operations units at the