Some Facts and Figures and Thoughts on the

Innovation drives growth • • • 2 Intangible investments have a growing importance in

Some strengths of the Finnish Innovation System • • • Openness of the economy

Finland in international comparisons 1/3 Finland ranks highly in competitiveness and innovation. § According

Finland in international comparisons 2/3 § IMD ranked Finland 15 th in overall competitiveness

Finland in international comparisons 3/3 Wellbeing and sustainable development § Wellbeing Assessment is a

EU member states’ innovation performance Sweden, Denmark, Finland Germany are innovation leaders in the

Innovation and competitiveness Finland was ranked second with R&D input and personnel, venture capital,

Competitiveness Total ranking 2011 -2012 WEF IMD Global Total competitiveness 2010 2011 Switzerland Singapore

Innovation index Points according to WEF The Innovation index covers quality of research institutions,

Finland leads in technology and innovation Ranking 1 2 3 4 5 6 7

Ranking of EU countries Sweden Finland Denmark Netherlands Luxembourg Germany Austria France Great Britain

R&D investments in some countries Percentage of GDP 5. 0 4. 5 4. 0

Public sector’s share of total R&D funding in 2009 % Source: Eurostat DM 36109

Companies’ share of total R&D funding in 2009 % Source: Eurostat DM 36109 and

Exports of Finnish goods have decreased significantly with slow recovery as a result of

Exports´ share of GDP in 2009 % Source: Statistics Finland DM 36054 11 -2011

High tech exports in some countries % of total exports Exports of Finnish high

Industrial production has grown rapidly in Finland, but the global crisis has reduced production

Labour productivity growth in the total economy in 2001 -2010 Average annual growth %

Reserve of foreign direct investments % of GDP Source: UNCTAD, World Investment Report 2011.

Business R&D input in Finland by sectors Total 4. 9 billion euros in 2010

Key actors of the Finnish innovation environment EU structural funds for innovation Finnvera Finnish

Something has to change. We need. . . • new measures to promote entrepreneurship

Slides: 25

Download presentation

Some Facts and Figures. . . and Thoughts on the Finnish Innovation Environment Timo Kekkonen, Confederation of Finnish Industries EK

Innovation drives growth • • • 2 Intangible investments have a growing importance in productivity growth and in the creation of wealth Investments in intangible assets accounted for ⅔ – ¾ of labour productivity growth in many OECD countries Firms invest as much in intangible assets related to innovation (R&D, software, skills, organisational know-how, branding, …) as in traditional capital (machinery, equipment, buildings, …)

Some strengths of the Finnish Innovation System • • • Openness of the economy Favourable framework conditions, e. g. macroeconomic stability High level of education Sizeable R&D expenditure Strong ICT sector Long-term commitment to education and research Close co-operation within the system Radically optimistic entrepreneurial culture gaining ground Start-up of several reforms …

Finland in international comparisons 1/3 Finland ranks highly in competitiveness and innovation. § According to Innovation Union Scoreboard 2010, Sweden, Denmark, Finland Germany are the Innovation leaders and all show a performance well above that of the EU 27. § ITIF ranked Finland second with R&D input and personnel, venture capital, productivity and trade indicators. § A survey measuring the achievement of the EU’s Lisbon goals published in 2008 indicated that Finland was the most competitive economy in the Union. Finland came top in productivity development and human capital. § Based on the Lisbon Review, Finland was third in competitiveness comparison in the EU in 2008. Finland was on top in innovation and R&D and in enterprise environment, as well as in sustainable development. § According to WEF, Finland was the fourth most competitive country in the world in 2011. The top three countries were Switzerland, Singapore and Sweden. Finland rates also as one of the innovation powerhouses. Sources: EU, The Innovation Union Scoreboard 2010; The Information Technology and Innovation Foundation ITIF; The Atlantic Century II European Growth and Jobs Monitor 2008; The Lisbon Council & Allianz Dresdner Economic Research: The Lisbon Review 2008; WEF: The Global Competitiveness Report 2011 -2012 DM 36054 09 -2011 Copyright © Tekes

Finland in international comparisons 2/3 § IMD ranked Finland 15 th in overall competitiveness in 2011. The three most competitive countries were Singapore, USA and Hong Kong. § Based on the comparison of the European Commission in 2005, Finland was among the leading countries in investing into knowledge-based economy and performance of the economy. § In the Canadian Performance and Potential 2005 -2006 comparison, Finland was among the four gold medallist when OECD countries were compared by economic, societal and environmental indicators. § In a comparison made by the University of United Nations, Finland was ranked second in overall ranking. Finland was also ranked second in education, technology and information indices. § According to the OECD PISA 2006 study, young Finns were first in the OECD in sciences, second in mathematics and reading. Sources: IMD: World Competitiveness Yearbook 2011; Key Figures 2005 on Science, Technology and Innovation; Performance and Potential 2005 -06, The World of Canada, Trends Reshaping Our Future, 2005; United Nations University, The Millennium Project 2001; PISA 2006 Science Competencies for Tomorrow's World. OECD 2007. DM 36054 05 -2011 Copyright © Tekes

Finland in international comparisons 3/3 Wellbeing and sustainable development § Wellbeing Assessment is a method of assessing sustainability that gives people and the ecosystem equal weight. The Wellbeing Index (WI) is the combination of indicators related to human wellbeing (HWI, Human Wellbeing Index) and ecosystem Wellbeing (EWI, Ecosystem Wellbeing Index). Published in 2001, The Wellbeing of Nations surveys 180 countries. In this comparison Sweden ranks 1 st and Finland 2 nd. § The 2008 Environmental Performance Index (EPI) ranks 149 countries on 25 indicators tracked across six established policy categories: Environmental Health, Air Pollution, Water Resources, Biodiversity and Habitat, Productive Natural Resources, and Climate Change. Finland is ranked 4 th. § The Human Development Index (HDI) ranks 179 countries by a composite measure of life expectancy, education and income level. Iceland is at the top of HDI 2008, followed by Norway, Canada, Australia and Ireland. Finland is ranked 12 th. Sources: Robert Prescott-Allen (2001), The Wellbeing of Nations. A Country-by-Country Index of Quality of Life and the Environment; WEF: Yale and Columbia Universities; UNDP, Human Development Report 2008; The Environmental Performance Index 2008 DM 36054 03 -2010 Copyright © Tekes

EU member states’ innovation performance Sweden, Denmark, Finland Germany are innovation leaders in the EU. SII points 2010 (Summary Innovation Index) 0. 0 0. 1 0. 2 0. 3 0. 4 0. 5 0. 6 0. 7 0. 8 Source: Innovation Union Scoreboard (IUS) 2010 DM 36054 03 -2011 Copyright © Tekes

Innovation and competitiveness Finland was ranked second with R&D input and personnel, venture capital, productivity and trade indicators. Source: The Information Technology and Innovation Foundation ITIF; The Atlantic Century II, Benchmarking EU & US, Innovation and competitiveness DM 36054 07 -2011 Copyright © Tekes

Competitiveness Total ranking 2011 -2012 WEF IMD Global Total competitiveness 2010 2011 Switzerland Singapore Sweden Finland USA Germany Netherlands Denmark Japan Great Britain Hong Kong Canada Taiwan Qatar Belgium Norway 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 1 3 2 7 4 5 8 9 6 12 11 10 13 17 19 14 5 3 4 15 1 10 14 12 26 20 1 7 6 8 23 13 Sources: WEF, The Global Competitiveness Report 2011 -2012 and IMD World Competitiveness Yearbook 2011 DM 36054 09 -2011 Copyright © Tekes

Innovation index Points according to WEF The Innovation index covers quality of research institutions, company spending on R&D, university and industry research collaboration, availability of scientists and engineers, utility patents and intellectual property protection. Source: WEF, The Global Competitiveness Report 2010 -2011 DM 36054 and 789348 09 -2010 Copyright © Tekes

Finland leads in technology and innovation Ranking 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 Measurements of the comparison are R&D investments as percentage of GDP, scientific and engineering researchers per capita and patents per capita. Source: Martin Prosperity Institute: Global technology rankings. DM 36054 10 -2010 Copyright © Tekes

Ranking of EU countries Sweden Finland Denmark Netherlands Luxembourg Germany Austria France Great Britain Belgium Ireland Estonia Cyprus Slovenia Czechia 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 1 5 3 2 7 9 6 10 4 14 13 8 16 12 17 2 1 3 5 12 4 8 9 7 6 10 14 21 11 13 Source: WEF, The Lisbon Review 2010 al isa tio Ne n in two du r st k rie s Fi na se n rv cia ice l s En en ter vir pri on se So me in cia nt clu l s Su ion de st ve ain lo ab pm le en t be r Li Total rank In f so orm cie at ty ion In n an ov d ati R& on D The Lisbon Review 1 7 5 2 6 4 3 11 10 8 9 14 13 18 12 2 8 4 7 5 1 6 3 9 11 18 13 10 15 20 1 3 6 7 2 9 4 5 14 11 17 10 12 19 15 4 2 7 6 1 17 10 12 11 8 5 3 13 15 19 3 2 1 4 5 9 8 13 14 6 11 16 7 15 10 1 3 5 6 7 2 4 9 10 11 8 14 18 12 16 DM 36054 11 -2010 Copyright © Tekes

R&D investments in some countries Percentage of GDP 5. 0 4. 5 4. 0 3. 5 3. 0 2. 5 2. 0 1. 5 1. 0 0. 5 0. 0 Source: OECD, Main Science and Technology Indicators DM 36109 and 36054 03 -2012 Copyright © Tekes

Exports of Finnish goods have decreased significantly with slow recovery as a result of the global crisis Exports of goods by country 1995 = 100 Value index, national currencies, seasonal adjusted 3 month moving average. DM 36054 and 928485 03 -2012 Source: OECD Main Economic Indicators 2012 Copyright © Tekes

High tech exports in some countries % of total exports Exports of Finnish high tech products totalled 4. 6 billion euros in 2011, i. e. 8 % of total exports of goods. Sources: Eurostat and Finnish Customs DM 32186 and 36054 03 -2012 Copyright © Tekes

Industrial production has grown rapidly in Finland, but the global crisis has reduced production more than in other developed countries Volume index of industrial production 1995 = 100 Source: Eurostat, METI, OECD DM 36054 and 928485 03 -2012 Copyright © Tekes

Business R&D input in Finland by sectors Total 4. 9 billion euros in 2010 Billion euros 5. 5 5. 0 4. 5 4. 0 3. 5 3. 0 2. 5 2. 0 1. 5 1. 0 0. 5 0. 0 *) estimate based on queries and other calculations Source: Statistics Finland DM 36100 10 -2011 Copyright © Tekes

Key actors of the Finnish innovation environment EU structural funds for innovation Finnvera Finnish Industry Invest in Finland Investment Ltd Private investments in innovation Finpro Sitra Investors Business Angels Companies Regional Councils Regional ELY Centres Polytechnics Centres of Expertise Key actors of the Finnish innovation environment Technology Centres Strategic Centres for Science, Technology and innovation Other ministries Tekes National Board of Patents and Registrations of Finland Research institutes Universities Academy of Finland Ministry of Education and Culture Ministry of Employment and the Economy Investments in different sectors like environment, health and traffic Association Inventions s Research and Innovation Council National public investment in innovation and know-how DM 36100 10 -2010 Copyright © Tekes

Something has to change. We need. . . • new measures to promote entrepreneurship – growth companies • more non-technological innovations • a more efficient and focused public innovation system • more international mobility • to increase productivity with new working models • 25