CO-CREATION & CO-INNOVATION FUNDINGBUSINESS FINLAND

Senior Advisor (Business Collaboration & Development)Research ServicesUniversity of Helsinki

Joel Takala & Pasi Rautiainen 29.3.2019 / KUMPULA

BUSINESS FINLAND FUNDING INSTRUMENTS FOR RESEARCH ORGANIZATIONS

CO-CREATION CO-INNOVATIONTUTL

àDevelop the research idea and build the

consortia.àFunding for the

University.

àSeek for solutions with research and aim for international markets.àJoint project with the

University and companies

àNew business from research,

commercialization.(HIS responsible at UH)

à New instruments since 1.1.2018.à Continuous application time for Co-Creation and Co-Innovation fundings.

Fixed application time (twice a year, spring and autumn).

Commercialization funding

New instrument New instrument

• UH’s Co-Creation “champion” from the Faculty leads the discussions (follows the co-creation project plan).

• UH’s Research Services provides constant support (business development, legal support).

CO-CREATION LEADS TO CO-INNOVATION: WORKING METHOD

Start of the Co-Creationà Commitment for negotiationsà Getting familiar with each other & finding the right persons from the companies to talk with / decision makers

Intensive co-creation period 4–6 months:-Clearing up the common goal (vision)-Setting up the “design groups”-Planning of the work packages & tasks

Submission of Co-Innovation applicationsà Application for research from the universityà Commitment of R&D from the company, own project application from each company (min. 3 companies)à Submissions of all entities to be done at the same time

Joint Co-Innovation project for 2 years-Joint steeringgroup

Business Finland fundingdecisionsfor eachentity.

Funding for developing a research idea and for building cooperativenetworks (ecosystem). à Goal is to jointly create a Co-Innovation project

Criteria for Co-Creation funding:• The novelty and business potential of the idea.

• The quality of the plan (problem-solution-fit).

• The quality of the plan to create cooperation with

companies and the R&D consortium.

How to apply:• Contact Business Finland coaches for preliminary

discussions.

• Maximum 3 page written project plan +

filling the project (NABC format) to the

Business Finland online portal.

• Maximum 100 000 € for 4–6 month project.

• Fixed overhead 20%,

personnel sidecost 50%.

WHAT IS CO-CREATION?

If you are ready enough, you can skip the co-creation and go straight to co-innovation phase.

Benefit of co-creation. Why to applyfor it?• You’ll be able to find and build up

relationships with the companies.• Hiring of a project coordinator, runs

the co-creation process.• During the Co-Creation process

you’ll get Business Finland peopleto coach and guide your towardsCo-Innovation.

• Funding for R&D projects by companies and

research organizations, in which they jointlydevelop new knowledge and innovations for

new business needs.

à Strong ECOSYSTEM for international growth

• The participants in the joint action should have:A) a common goal (vision)B) the need to co-operate (market demand)C) a plan to reach the common goal

Criteria for funding:• Appropriate relevance and need (problem-solution-fit).• Credibility of joint action of consortia (best parties

to achieve results, new business opportunities for

companies).• Uniqueness, competition advantage,

market potential, societal impact, international co-operation.

WHAT IS CO-INNOVATION?

Co-Innovation:

”Research organizations develop new knowledge and solution models for new business purposes and companies develop innovations for the global market.

Funding advances the use of research knowledge, increases the creation of new Finnish export products and strengthens networks in ecosystems.”

–Business Finland

Technical details:

• Minimum of 3 companies (2 which have their own R&D project + 1 in-kind funding). à In reality should be at least 5–8 companies to form up an ecosystem.

• Max 2 years project time. • Funding level for the University 60–70%, 70% if internationalization e.g. research

exchange. Funding level for companies 50% for SMEs (to be negotiated with BF).• No call times (tbc, might be thematic calls/times).• Priority to those projects that have high-class R&D projects that support growth

and internationalization of the companies.

WHAT IS CO-INNOVATION?

CO-CREATION 4–6 MONTHS PROCESS

CommitmentActive personnels fromboth parties to devote lotof time

ListeningResearchers makesquestions and listenscompanies

LearningBoth parties learnfrom each other & about possibilities

Key elements of the co-creation process

Shared visionUniversity + companies-Open to changes

ResourcesAllocated researchers + coordination + support staff

Many iterationsà Leads to Work Packages & Tasks

BF Co-Innovation application

0 € commitment

Preliminary € commitment

Million € commitment

• The public research project should be ambitious and provide new research results for the benefit of companies new business needs.

• Research organizations and companies will jointly develop new knowledge and innovations.

• Funding accelerates the utilization of research data and the development of new Finnishexport products and strengthens networks.

CO-INNOVATION: ROLE OF THE UNIVERSITY

Research-New science

based knowledgeand solutions

Companies-New business

needs and purposes

Finnishconsortium

-Exports-Networks-New jobs-New sales

”Researchers try to understand the companies business needs by listening.”

• Finnish companies accelerate the utilization of research know-how and solutionsin their innovation activities while progressing with their own R&D goals. Project has to fit with the company’s own strategical goals.

• Company R&D projects are companies' own projects and are implemented in parallel with a public research project as part of a joint action.

• Company submits own R&D project proposal to Business Finland (and says in the additional field that the project is linked to the University’sproject).

CO-INNOVATION: ROLE OF THE COMPANIES

”Companies need to openly tell researchers about theircomplex business needs.”

• It’s all about constant and ongoing negotiations within university and companies. Can be separate with each company / or sometimes together with many companies (design groups around WP’s).

• Company needs to commit to the ongoing negotiations (R&D person).

• NDAs’ in early stage if needed.• Consortium agreement (joint common agreement with NDA + separate appendix with each

company).

• IPRs’: basically “who creates it, owns it”.• Applications to be submitted to BF at the same time (university + companies). Project

starts at the same time which each entity.

HOW TO PREPARE A SUCCESSFUL JOINT APPLICATION?

• Before you start to apply for co-creation or co-innovation: It is very important that you contact Business Finland personnel.

• Contact & tell what is your idea about à BF will guide you to take the right next steps.

• Also all of the latest guidelines for these funding types are available through BF personnel and website.

• https://www.businessfinland.fi/en/for-finnish-customers/services/funding/research-organizations/in-brief/

CONTACT BUSINESS FINLAND

EXTRASLIDES

BUSINESS FINLAND

Spillovers

Inputs

Services

Funding

Themes

Customers

Market failures (networks, information, finance, climate change)

Activities

Funding increasecompanies’ own

funding

Capabilities in business, intenarnationalization

and r&d increase

Amount of customersand networking

(domestically and globally) increase

Results

Increase of turnover, jobs and exports

High value addedproducts and servicesimprove productivity

New companies, trial platforms and

ecosystems are born in Finland

Entry of Finnishcompanies in the global

market increase

Impacts

Business scalabilityand economies of scale

improve

Trial platforms and ecosystems attract newglobal actors to Finland

Finnish companies havefocal involvement in global ecosystems

Goals

Radical innovations and new business models

renew economicstructure

Impacts on society

Well-being of citizens and environment

Impacts spill widely over thesociety and economy, and improve productivity and

sustainable economic growthCreating new markets

Global growth of companies

World-classecosystems

Competitivebusiness

environment

Companies acquirenew information about

global challenges

IMPACTMODELIN BUSINESS FINLAND