Elaboration of regional innovationstrategy in practice – problems and solutions

Marja-Riitta Mattila-Nurmi20 November 2009, Riga

Responsabilities in promoting innovationbetween national, regional and local level

National level- National Innovation Policy (which refers to the education,

research & innovation)- National Innovation system, structure, institutions- Innovation related funding- Selection of focus areas on national level- Other issues in which regional level does not have the critical

mass

Regional / local level- Implementation level, region specific ways of implementation- Common understanding and Interpretation on regional level- Work up financial and other resources- Build up the infrastructure ja organisation in the region

(clusters, research infrastructure, buildings, services,…)- Evolution process

Tampere Region in figures

Population (09/2009)

Employment rate (III/2009)

Unemployment rate (09/2008)

Turnover (all sectors,2008,est.)

Change in 2008

Turnover (ind sectors, 2008, est.)

Change in 2008

GDP per capita 2007

GDP index 2007 (EU27=100)

Varies in range 62,2-124,5 within the region

483 77068,5 % 11,5 %

29,5 Mrd€

+5,1 %

12,8Mrd€

+3,2 %

32 448€

110,6

4

Development in Turnover 2001–2006 (m€)Key Sectors, Tampere Region (Turnover, total 26,546 M€, change from 2005 +10.2 %)

Source: Statistics Finland

Electronic industry: The latest turnover of electronic industry is notpublished by StatisticsFinland.ICT Serivce Production: The figures of ICT Service Production are not in accordance with the international standardindustrial classificationscheme. This field of business includes figuresfor data processing, telecom and wholesale of electronics

Finland's Most Important Trading Partners 2007Source: National Board of Customs

0

1000

2000

3000

4000

5000

6000

7000

8000

9000

German

yRus

siaSwed

enGrea

t Brit

ainChin

aNeth

erlan

ds

USAFr

ance Italy

Norway

Estonia

Belgium

Denmark

Import 59 400 m€Export 65 500 m€

Million €

Enterprises

TBC

UTA

Institutions

VTT,Tre

VocationalinstitutionsPirPo

HermiaLtd

FinnMedi

Hermia-Business dvl.

BDOs

BioNext

Council of Tampere Region

L & B develcentre

Chamber of Commerce

Association. of Enterpr.

TUT

Edutech

Institutions

MofE

SITRA

Finn.Academy MTI

ML

MIA

TEKES

National Fund for Industry

VTT

Middlemans, brokersregional support & funding

Education & research

National funding & support

FinnProfor Export

l

Transformation of the businesses in the Tampere Region

Rapidly from traditional smoke-pipe industries to modern knowledge-based industries -> Nokia, intelligent machinery cluster, stemsellresearch applications, laser manufacturing and applicationindustries, etc.

- ”Happy marriage”

- In 1991start of programme based economic development

- In 1993 adoption of cluster concept in regional development->Tampere Region Centre of Expertise Programme 1994

- In 1995 first structural policy programme starts (EU)

- Ambitious programmes like eTampere, Bionext, Creative Tampere, ”New factory”

- Adoptation of Triple helix in regional development strategyprocesses and in regional innovation strategy eg.

INNOVATION STRATEGY PROCESS

Regional Plan 2005+ for Tampere Region

VBN Innoreg

Work on innovation system analysis and

indicators

Proposal for initial

focus areas of innovation strategy

Meetings with the

subregion Meetings with key operators

Advisory board and Innovation Council for innovation strategy

work

Tampere Region

innovation strategy

2006 2007

IMPLEMENTATION AND MONITORING

Tampere Region Innovation Strategy- Future challenges identified

Globalization is deepening and taking on new forms

Structural economic change continue forcefully

The impact of population development is beginning to emerge in concrete ways

Acceleration changes in technology development

Challenges for Building up Innovative Region

Capital and mobility

Real &financialcapital

Human capital

Social capital

Components

Blueprints

Machines

Patents

ExpatriateSkilled labor

Scientists

Personalnetworks

Cooperation institutions

Lähde: Sölvell et al.

?

Local Global

Tampere Region Innovation Strategy- 4 priorities

1. Strengthening and expansion of knowledge-basedinnovation

2. Development and growth of knowledge-intensiveservices and adoption of service business principles

3. International networks in support of innovationoperation

4. Development of the ability to reform and innovate of experience and skill-intensive enterprises

1. Priority:Strengthening and expansion of knowledge-basedinnovation

Strategic challenge:The strengthening and diversication of the science, technologyand expertise platform in the spearhead sectors of the Tampere region

Measures: clusters, strategic cooperation of main actors (etc. universities with the city), interaction between different fields of expertises, needs oriented education and research, science based knowledge accomplished with user and customerdriven knowledge e.g. living labs, innovation workshops

Main actors: Universities and academic research as producersof scientific information; polytechnics and enterprises as information exploiters; technology centres as creators of dynamics within the innovation system

Case I: Cluster concept development since 1993

The Tampere Region Centre of Expertise 2009-13

Intelligent machines (responsible for national coordination)Ubiquitous Computing (responsible for national coordination) Digital ContentEnergy TechnologyNanotechnologyHealth technologyBiotechnology

Case II: Mechanical engineering turned to intelligent machines industry

19.11.2009 16KP/2005

FIMA – Forum for Intelligent Machines -MEMBERS

Global Market Leaders in Tampere RegionThe list doesn’t include all global leaders within the region

Desec 80% Turnout (switch) laying machine for railroadsFastems 70% Multilevel FMSGlaston 50% Flat tempering machineryOseir 50% SprayWatch thermal spray diagnostics equipmentAta Gears 50% Bevel Gears for marine industryJohn Deere Forestry 45% Forest machinery Avant Tecno 40% Mini loaders (max. one ton)Nokia 40% Mobile phonesSandvik 35% Machinery, services to mining and constructionGardner Denver 30% Marine compressorsKalmar Industries 20% Container handling machinery, servicesMetso Minerals 17% Mobile stone crushers and related servicesAtlas Copco Rotex 15% Casing advancing (overburden drilling)

Tampere CCI, April 2008

Case III: Academic research turned into high techindustry

20

1980 1985 1990 1995 201020052000

Infrastructure Development and Training Programs of ORC, supportedby Pirkanmaa TE-Centre and the City of Tampere, €3.6 M

The 1st National Micro-electronicsR & D Program by Tekes

Research started

Typically 20 of R & D national & trans-national projects p.a.

1st MBE reactoracquired. Tekes

Coherent acquired 100 % of Tutcore

1st quantum-welllaser @ 1.55 μm

LCC Finland, Laser Pilot Factory, L3-project, supported by Pirkanmaa TE-Centre and the City of Tampere, €2.7 M

6th MBEacquired

More R & D & IMore firms ?More jobs ?More money?

Academic research turned into high tech industry –Optoelectronic Research Center ORC

1998 First second generation Communicator (Nokia 9110)

1997 First GSM Card PhoneFirst Data Suite

1996 First Communicator (Nokia 9000)

1994 First GSM Data Card (GSM 900)

1999 Nokia C110/C111 Wireless LAN Card

2001 First music phone with qwerty keyboard (Nokia 5510) First GSM imaging phone (Nokia 7650)

2003 First mobile game deck using Series 60 interface (N-Gage)

1993 First analog data card in 1993

Source: J.-T. Eriksson, TUT 2003

1999 WAP Server1999 Wireless LAN2000 Wireless Mine (Tamrock)

Some ICT milestones achieved in TampereNOKIA MOBILE PHONES, TAMPERE , FIRST IN THE WORLD

Case IV: Open innovation environment as precondition for an open innovation process –case Demola

19.11.2009KP/2005 23

19.11.2009KP/2005 24

2. Priority:Development of knowledge-intensive services

Strategic challenge: development of knowledge-intensiveservices and adoption of service business principles

Measures: create general understanding of the structure and the importance of service business, recognition of main sectors, KIBS, Industrial services, SSME (Service, Science, Management and Engineering) –educational programmes, innovation as an export product like the concept of Hospital for Advanced Therapy

Main actors:Units of universities and polytechnics involved with serviceresearch and themes that can be productized into services, enterprise development organizations, chamber of commerce; municipalities as initiators of service process reform.

VALUE CHAIN AND INNOVATION STRUCTURES

RESEARCHMAINT. OF

CUSTOMER RELATION-

SHIP

DISTRIBU-TION

MARKETING AND SALES

PRODUC-TION

DEVELOP-MENT

Optimizing the investments in the innovation structures thatenable future competitiveness

INV E

S TM

E NT

Source: Pentti Hämäläinen

Case V: From selling products to selling ensemblesof services

From selling products to selling ensemble of services

Sandvik Mining used to sell rock drilling machines. Now theysell mining capacity.

Wärtsilä used to sell diesel motors. Now they sell powerproduction capacity.

Nokia Tyres used to sell tyres for timber machines. Now theyare selling working hours of timber machine.

3. Priority: International networks in support of innovation operations

Strategic challenge: strengthening of the Tampere regioninnovation system’s international contacts and rooting of top-level overseas experts in Tampere region enterprises and otherorganisations

Measures: international exchange programs into use, scholarships, international education programmes, new structures and methods to help foreign students to find work, Finnish for foreigners, anticipatory immigration policy, foresightactivities, special programmes for companies

Main actors: All international actors, such as universities, enterprises and entire business community, parties supportingthe internationalization and attractiveness of the region, such as municipalities and technology centres, all residents

4. Priority: Development of the ability to reform and innovateof experience and skill-intensive enterprises

Strategic challenge: Development of the ability to reform and innovate of experience and skill-intensive enterprises(traditional industry and municipalities)

Measures: Tailored innovation and new enterprise services and more efficient service provision, creation of development culture in firms, universities as disseminators of scientific information –one stop shops for innovation, local infrastructure in common use, service transformation in public sector, ”Innovativemunicipality”

Main actors:Intermediary organizations as identifiers of development needs:

local educational institutions, universities, chamber of commerce, business development organisations, municipalities

Case VI: BSR InnoReg

BSR InnoReg activities in the Tampere Region

Problem: to increase the competences and strengthen the knowledge base of local BDOs in order to increase their ability to react in the fast changing global business environment. Analysing their development needs in long term and evaluate the future competence needs. Identification and better use of the regional cooperation potential. To get the owners to understand better the future challenges and strengthen their commitment

Target BDOs – five subregional BDOs owned by the municipalities

Expectations: A common interpretation of BDOs challenges what comes to their roles, market strategies, customers, strategic cooperation and ownership related to the changes of the business environment. Development plans. Common understanding on regional development challenges and plans for common operations.

Innovation strategy implementation

Matching of development funding to innovation strategymeasures

Requesting of initiatives related to strategy measures

Raising of general awareness of the major challenges facingthe region

Commitment of key actors through creation of a mutualconception of the necessary measures and actors

Use of the strategy as one of the pillars of regionaldevelopment work and strategies for the region

Issues linked to the innovation promotionin the region

Information society development- Efficient use of internet- Taking possession of ICT-technology- Broad band strategy - 100 Mbit/s at distance of 2 km from

every house and workplace in the region

Towards to active immigration policy- Focus on atrractiveness - promotion, importance for

economic life- Capability of municipalities and companies to receive

immigrants- Foreign students and researchers in the universities- High unemployment rate among immigrants

19.11.2009 35PL/2009

Where are we?

The use of ICT in Finnish companies 2008 -

Where are we?E-government readiness index, UN 2008

Evaluation of the National Innovation System in Finland –Results published in October 2009

The aim of the evaluation was to provide insights into how the National Innovation System, ists structure and organisations can respond to the changes in the global environment and to the challenges these changes pose.

The international evaluation experts have identified modes of operation, processes and tools, that the Finnish innovation policy can be designed and implementd with.

A specific challenge in the promotion of innovative activities is the inclusion of the creativity and expertise of individuals and communities. The new demand-and user-driven innovation policy emphasizes the needs of customers in developping products and services, the systematic use of economic incentivesand the participation of end-users in the innovation process.

The future challenges – such as the globalizing economy and its first globalrecession, the structural change of Finnish industries, aging of population, and climate change – can be adressed by facilitating interaction between differentministries and other actors, and by introdusing a broad-based and efficientpublic innovation policy

Evaluation of the National Innovation System in Finland –Results published in October 2009

- Strong regional dimension, but not strongly linked to the national policy

- Role of municipalities has become important- Innovation policy must be transparent, not a tool for regional

policy- Ongoing university reform highly important- More experimental initiatives, more risk taking- More demand orientation, also in service sector- Business support system is complicated for customers -

overlapping and fragmented services- Finland is less international that othet Scandinavian countries –

does not attract knowledge intensive companies- Companies not able to utilise the new knowledge produced

globally- Over ministerial coordination and decision making missing- Mobility of researchers decreased – incentives needed

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