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HOW TO MEET THE CHALLENGE IN FINLAND'S STI POLICY TAMPERE, JUNE 4TH, 2008

TRENDS AND CHANGES IN STI POLICIES INFLUENCED BY GLOBALISATION. HOW TO MEET THE CHALLENGE IN FINLAND'S STI POLICY TAMPERE, JUNE 4TH, 2008. Esko-Olavi Seppälä S&T Policy Council of Finland. Helsinki. FINLAND; the country. 338,000 sq. km 5,3 million people Capital Helsinki

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HOW TO MEET THE CHALLENGE IN FINLAND'S STI POLICY TAMPERE, JUNE 4TH, 2008

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  1. TRENDS AND CHANGES IN STI POLICIES INFLUENCED BY GLOBALISATION HOW TO MEET THE CHALLENGE IN FINLAND'S STI POLICY TAMPERE, JUNE 4TH, 2008 Esko-Olavi Seppälä S&T Policy Council of Finland

  2. Helsinki FINLAND; the country • 338,000 sq. km • 5,3 million people • Capital Helsinki • 2 official languages • Finnish • Swedish • GDP per capita 2006 € 31,700 • a member of • the European Union

  3. Political consensus + citizens' support Mutual trust between STI players 'Top-down and hands-off' <=> expert and funding-level (meso-level) activities have occupied a key role (Academy, Tekes, Sitra) Economic crisis in early 1990s <=> ICT boom <=> technological innovation In 2000s: technological + social innovation Strengths (incl. high level of education) mostly self-created CHARACTERISTICS/FINLAND

  4. GDP IN FINLAND1985=100

  5. R&D EXPENDITURE BY SECTOROF PERFORMANCE, million € 1991 1993 1995 1997 1999 2001 2003 2005 2006 Source: Statistics Finland

  6. BREAKDOWN OF INVESTMENT IN R&DIN 2005 BY SECTOR OF PERFORMANCE (% of GDP) Enterprises UniversitiesPublic SectorTotal OECD 1.55 0.40 0.302.25 U.S.A. 1.80 0.35 0.452.60 EU-27 1.10 0.400.251.75 Japan2.55 0.45 0.35 3.35 Canada 1.05 0.70 0.20 1.95 Finland 2.45 0.65 0.35 3.45 Source: OECD

  7. R&D EXPENDITURE IN FINNISH ENTERPRISES IN 2006 Chemicals 7% Other industries 20½% Engineering and metal products 11% Other manufacturing industries 1½% Food industry 1½% Wood processing industry 2% Electronic and electrical industries 56½%

  8. Free ”competitive” funding Basic institutional funding STRUCTURE OF GOV'T R&D FUNDING EUR million 45% 40% 25% 55% 60% 75%

  9. Government (Gov't R&D funding 2008: 1 798 million Euro) Science and Technology Policy Council Ministry of Education (778 million €) Ministry of Employment and the Economy (673 million €) Other Ministries (347 million €) Academy of Finland (297 million €) Finnish FundingAgency for Technologyand Innovation (526 million €) SITRA Fund HE institutes and government research institutes Enterprises, private research institutes, funds and foundations, learned societies, intermediaries

  10. SCIENCE AND TECHNOLOGY POLICY COUNCILOF FINLAND CHAIRMAN Prime Minister DEPUTY CHAIRMEN Minister of Education and Science Minister of Economic Affairs OTHER MINISTERS Minister of Finance + 0 - 4 other ministers 10 OTHER MEMBERS Academy of Finland Finnish Funding Agency for Technology and Innovation (Tekes) Industry and Commerce Employees’ organisations Universities + other members Science Policy Subcommittee Technology Policy Subcommittee Council Secreteriat

  11. FINNISH SCIENCE BAROMETER 2004 Source: Finnish Science Barometer 2004 Esko-Olavi Seppälä / SB

  12. SWOT ANALYSIS OF FINLAND'S R&D • A small domestic market area and population • Limited economic and intellectual resources • Fragmented research activities: • Resources allocated to a large number of small units • A small number of foreign students and researchers • The inflow of FDI is low

  13. The situation in the mid-2000s 2000’s

  14. Green line describes the situation in the 1990s 1990’s 2000’s

  15. HOW TO RETAIN NATIONAL STRENGTHS AND COMPETITIVENESS IN THE FUTURE, IN OPEN GLOBAL COMPETITION? THE "PACKAGE OF REFORMS" OF THE PRESENT GOVERNMENT: - "THE BIG FIVE" - GENERIC DEVELOPMENT ISSUES - SELECTIVE MEASURES MAIN CHALLENGE

  16. THE BIG FIVE: Structural and other renewal of the HE institution National innovation strategy National infrastructure policy Structural and other renewal of the sectoral research Implementation of a four-stage research career system MEETING THE CHALLENGE I

  17. NATIONAL INNOVATION STRATEGY

  18. GENERIC DEVELOPMENT ISSUES: Internationalisation RDI funding National target 4 % of GDP by 2011 Share of public funding around 30 %, i.e. 1.2 % of GDP (today about 1 %) MEETING THE CHALLENGE II

  19. SELECTIVE DEVELOPMENT ISSUES: Strategic centres of excellence in STI ("SHOKs"): A cluster-based PPP policy instrument Example: www.forestcluster.com Centres of expertise programme ("OSKE"): A regionally driven cluster-based development programme (2007-2013) MEETING THE CHALLENGE III

  20. www.research.fi

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