This document discusses innovation as a contributor to economic growth in Finland. It provides several graphs showing GDP growth in Finland from 1990-2013, with investments in manufacturing as a percentage of value added. It also shows Finnish innovation system indicators compared to other countries. Additional sections outline government R&D funding levels in Finland, strategic centres for science and technology, and how innovation promotion involves R&D, businesses/clusters, new firms, public services, and user-driven innovation.

1. Innovation as a Contributor
to Growth
Mr Jouni Hakala
State Secretary
Finnish-Polish business-seminar
11.6.2012, Helsinki Exhibition & Convention Centre

2. GDP growth in Finland
%
8
6
4
2
0
-2
-4
-6
-8
-10
90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13
Sources: Statistics Finland, Ministry of Finance.
© TEM / INNO 2011
© TEM / INNO 2008

3. Manufacturing; investments, % of value added
Tangible investments R&D Investments + R&D
Current prices.
Sources: ETLA, Statistics Finland
© TEM / INNO 2011
© TEM / INNO 2008

4. Finnish Innovation System in International Comparison:
Input indicators (relative fields of strength in pink)
Government R&D budget
Foreign-owned 400
companies' share of Annual increase in
business sector government R&D budget
turnover 300
Venture capital Funding for basic
investment 200
research
100
Government funding
R&D in the of business R&D
0
service sector (incl. tax incentives)
Higher education
Lähde: TIN linjaraportti 2010
Foreign-born
researchers in expenditure on R&D
R&D personnel financed by
enterprises
Foreign students Business enterprise R&D
in higher education financed by abroad
R&D personnel
© TEM / INNO 2010 Average of OECD/EU Finland Average of top 5 countries by indicator

5. Finnish innovation environment
= public-private partnership
Parliament of Finland
Government
Ministry Ministry Other
Research and of Education of Employment ministries
Innovation and Culture and the Economy
Council
The Finnish Funding Agency The Finnish Funding Agency
The Finnish Innovation Fund
for Basic Research for Technology and Innovation
Finpro
Universities and other Finnvera
research centers Industry Investment
Regional
Industries & Enterprises ELY-Centers
© TEM / INNO 2009
© TEM / INNO 2008

6. Government R&D funding in 2012
© TEM / INNO 2009
© TEM / INNO 2008

7. Strategic Centres for
Science, Technology and Innovation (SHOKs)
• Radical renewal
• Focus & Impact
• Visibility
Metal products • Attractiveness
Forest Cluster Built
and mechanical
environment
engineering
• Industry steered research
plans and agendas
• 20-50 M€ per SHOK p.a.,
from private and public
funding sources
Energy and Health and well- ICT industry
• Basis for stronger environment being and services
international partnerships
© TEM / INNO 2009
© TEM / INNO 2008

8. …innovation is not only about R&D…
technological innovation
service innovation
business model innovation
social innovation
workplace (arbetslivs) innovation
…

9. Three dimensions of innovation promotion
Demand
(science, technology)
Know-how
Users
Users
Users
Users
Innovations
Know
R&D UDI
UDI =
• Using
Businesses & New and Public • Doing
© TEM / INNO 2011 clusters growing services • Interacting
firms
© TEM / INNO 2008

10. © TEM / INNO 2011
© TEM / INNO 2008