WORKING GROUP ON ECONOMIC AND TECHNICAL COOPERATION OF TE LATIN AMERICAN PACIFIC ARC

FORUM MEETING WITH BUSINESS LEADERS

3 de septiembre de 2008 Lima

ECLAC's project on "Public-Private Alliances for Strategic Export

Development"

From Research to Innovation

Finnish case

Dr. Heikki KotilainenS&T Balance

S T

S&T Balance

EXPENSIVE INVESTMENTS OF AN ENTERPRISE

WORLD CLASS TECHNOLOGY

# Skills & Equipment# Products# Partners

WORLD CLASS TECHNOLOGY

# Skills & Equipment# Products# Partners

GLOBAL DISTRIBUTION

# Marketing, sales, distribution, after sales

# Customer contacts, trust# Partners

GLOBAL DISTRIBUTION

# Marketing, sales, distribution, after sales

# Customer contacts, trust# Partners

X

It is not only a matter of money, but also a matter of time to achieve the target

Invest thoughtfully, utilize effectively!Strategic thinking!

Enterprise investCourtesy: Vaisala Corp.

Vaisala Corp.

Research and Innovation

Scientific excellence Turnover/earnings

Growth and Employment

Meet R&I

Business modelsCustomer needs

New knowledgeCuriosity

R & DWORK

InnovationResearch

© S&T Balance

”If innovation is the commercial application of existing knowledge in a new context, technologically driven innovation is only one form of this. Innovation is distinct from research, which results in new knowledge and from the entrepreneurial function that spots market opportunities for products and services. It is the result of the interaction of these two functions”

”Innovate for a competitive Europe”,

A new Action Plan for Innovation,

European Commission, 2004Linear model

RESEARCH PARADIGMS

Old paradigm (LINEAR MODEL)

BASIC RESEARCH APPLIED RESEARCH DEVELOPMENT

New paradigm (CONCURRENT MODEL)

DEMAND

SCIENTIFIC UNDERSTANDING

TECHNOLOGICAL SOLUTIONS

PROBLEMSOLVING

MA

RK

ET

Basic research

Applied research

Development

SO

CIE

TA

L &

BU

SIN

ES

S

C

HA

LL

EN

GE

S

© S&T Balance

IndustryIndustryIndustryIndustry

MinistriesAgencies

Patent offices, IPR

Regional centresTE-centres

Centres of ExcellenceTechnology/Science ParksKnowledge CentresSectorial InstitutesTech Transfer officesInstitutes, labs

The Triple Helix

UniversitiesResearchinstitutes

Government

Industry

Science & Technology

Policy Council

Confederations ofIndustry

BanksVenture CapitalBusiness angels

EU Commission-state aid

-regulations-FP

SemiprivateSITRA

FinveraIndustrial Invest

Clusters

© S&T Balance

ENTERPRISE DEVELOPMENT AND FINANCING

GR

OW

TH

, TU

RN

OV

ER

TIME

START-UP GROWTHADOLESCENT

GROWTHMATURE GROWTH

PUBLIC R&D SUPPORT•SELECTIVE•PROACTIVE

•TREND SETTER

VC FINANCING•SELECTIVE

•TREND FOLLOWER

PUBLIC INVESTMENTEQUITY SUPPORT

DIRECT PUBLIC OPERATIVE SUPPORT

PRES/ENTERPR.DEVELOPM.© S&T Balance

Tekes funding for private enterprises Funding Instruments and the Innovation ProcessFunding Instruments and the Innovation Process

Marketdemand

Technology strategy

BusinessPlan

Technologyenablers

Development ofnew or improvedproducts, processes and services

Planning of production, logistics,

marketing and exports

Production, Market entry

Funding from:Own cash flowVenture capital

Finnvera OyjBanks

Capital loan

Loan

Grant

Exploratory award 70 %Capital loan 80 %

50-70%

50-60%

25-50%

Tekes funding:

Results of completed projects

DM 21847509-2006 Copyright © Tekes

2001 2002 2003 2004 2005

2,038 1,892 1,980

715

1,219

107

451

349

170

149

968

1,439

141

435

402

202

187

999

2,451

141

591

465

301

187

2,092

1,109

2,660

113

572

487

315

189

713

1,421

114

398

319

119

149

Completed projects

Academic theses

Publications

Patent applications by research organisations

Patent applications by companies

New or improved products

New or improved services

New production processes

2,464

Technological success rate of enterprise research projects concluded in 2002

concluded 1145 projects

611 mio. €

905 projects511 mio. €

No information 240 projects, 100 mio. €

Stopped or failed projects37 projects, 17 mio. €

Otherwise as expected, but late 188 projects

117 mio. €

Success as expected or

better525 projects278 mio. €

16 %

84 %

3 %

23 %

54 %

Number and volume of projects

Success less than satisfactory, 155 projects

99 mio. €

19 %

57305,04-2003 Copyright © Tekes

THE GENERAL OBJECTIVES OF THE NATIONAL

TECHNOLOGY PROGRAMMES

•To promote the industrial competitiveness to keep up with the global market change•To give input to the industrial innovation process•To create new knowledge to fulfil the needs of research, Industry and society•To create the critical mass and centres of excellence in important technological areas•To enhance the co-operation between industry and universities and research institution•To promote international co-operation•To support research education and to educate internationally oriented research managers•To enhance the research and high-tech image of the country

Objectives natl progr© S&T Balance

Industrial SMEs participating in R&Dcooperation

0 5 10 15 20 25

Italy

Spain

Greece

Portugal

Austria

EU

Great Britain

Germany

Netherlands

Belgium

France

Sweden

Denmark

Finland

Source: European Innovation Scoreboard 2003

%

DM 58774, 36054 and 3610908-2004 Copyright © Tekes

Cooperation between companies

Share of cooperating companies of all innovating companies

0 10 20 30 40 50 60 70

Italy

Greece

Portugal

Spain

Germany

Austria

EU

Belgium

Netherlands

France

Great Britain

Ireland

Denmark

Sweden

Finland

Source: Towards a European Research Area - Key Figures, Special Edition. EU 2001

%

What is a EUREKA project?

– proposed, defined and managed by its partners (the ‘bottom up’ approach)

– international - partners from at least two of EUREKA’s 34members

– led by industry; financed locally

– developing hi-tech products/processes/ services for the market

– Could this be Latin-American approach?

EUREKA a catalyst for collaboration

A EUREKA project is:

THE FUNDING PRINCIPLE OF EUREKATHE FUNDING PRINCIPLE OF EUREKA

The money is invested by national The money is invested by national decisiondecision

The money is invested by/in each The money is invested by/in each countrycountry

The success of The success of the the companies companies contributes to the contributes to the

EEconomy, conomy, GGrowth and rowth and EEmployment mployment of the of the SStatetate

The consequence is:

Precision weather service Testbed, a project that is part of the AVALI Technology Programme

launched by the Finnish Funding Agency for Technology andInnovation Tekes in 2005, will continue until August 2007

The aim of the project is to create an experimental and developmentplatform for observational instruments and systems, analysis andforecasting models, and services related to the weather and theenvironment

The dense weather and measurement station network making useof wireless data transmission and including a database and webuser interface, is provided by Vaisala

The project generates precision weather data for organisations andprivate individuals, providing informationon phenomena such as local showers,fog and ozone levels

www.vaisala.fi and testbed.fmi.fi

Vaisala OyVaisala Oy

DM 3218206-2006 Copyright © Tekes

New mobile positioning technologies

The Digital Media Institute of the Tampere Universityof Technology explored ways of combining differentpositioning technologies economically and reliably

The project generated a broad range of results in thevarious sub-fields of positioning technology that willfacilitate the commercial application of positioningin the immediate future

The AVALI Technology Programmeof the Finnish Funding Agency forTechnology and Innovation Tekes,involved a large number ofcompanies

www.cs.tut.fi/tlt www.tekes.fi/avali

DM 3233006-2006 Copyright © Tekes

Company emerges from university research

• Develops monoclonal antibody productiontechnology for the pharmaceuticals industry

• Production in plant sprouts, in closedbioreactors and in greenhouses withhigh level of biosafety

• Production plant is transgenic false flax,Camelina sativa

• Technology cheaper than animal celltechnology

• Produced first antibodies in plant sproutsin 2003

• Funding from: Tekes, Sitra, Optiomi Oy,Bio Fund Management Oy andSolaris Capital

• www.unicrop.fi

Plant biotechnology company UniCrop Ltd.Plant biotechnology company UniCrop Ltd.

Pictures: UniCrop Oy

DM 3233011-2005 Copyright © Tekes

A quick test for diagnosing Hantavirus infectionsA quick test for diagnosing Hantavirus infections

Ready to be introduced on global markets

• Erilab Oy has developed a quick test for diagnosing hantavirus infections that cause hemorrhagic fever

• The product is unique in the world• The method is also quick, cost-effective and easy

to apply to the diagnostics of many other diseases• The easy-to-use quick test can be used on all

continents and in developing countries; thetest does not require laboratory training

• The test is as reliable as the conventionalenzyme immunoassay method

• Resale contracts have been concluded in10 countries so far

DM 3233004-2002 Copyright © Tekes

Winwind OyWinwind Oy

Finnish-built power plant

DM 3233011-2005 Copyright © Tekes

• Winwind from Oulu has developed a newwind power plant, rated power 1 and 3 MW

• More efficient than competitor’s plants• Low maintenance costs• First power plant to Oulun Energia in 2001• Practical experience has proven the

reliabilityof the concept

• Deliveries to Finland, Sweden and Portugal• www.winwind.fi

Goal-oriented product development bears fruitGoal-oriented product development bears fruit

Roof trusses for global markets

• Sepa Oy has been characterised by R&D since it started operation

• Sepa Oy specialises in nailplate truss production

• The aim of R&D has been toimprove both products andproduction technologies

• The production system iscompletely automated

• Integrated design andproduction makes carefullymeasured, cost-effectiveand material-saving trussstructures possible

• Electronic commerce boosts Sepa´s operations • With a staff of about 80, turnover amounted to 10 million

euros in 2000 DM 3233004-2002 Copyright © Tekes

The automatic port of Brisbane

• Fisherman’s Island in Australia is the world'sfirst fully automatic straddle carrier terminal

• Developed by Australian Patrick Stevedoresand the Finnish Kalmar Industries, with thehelp of Tekes funding

• Machines are controlled by radar, deadreckoning and satellite positioning systems

• Automatic straddle carriers are safer thanmanually operated ones and reduce fuel,energy and maintenance costs

• www.kalmarind.comDM 32330

11-2005 Copyright © Tekes

Kalmar IndustriesKalmar Industries

Monitoring system provides information on ship's condition

• Hullmos system developed as part of a

EUREKA project• Transmits data from wave strain to the ship's hull• Helps to prevent accidents• Developer R. Rouvari Oy growing rapidly• Markets especially positive in the Far East• www.rrouvari.fi

DM 3233011-2005 Copyright © Tekes

R.Rouvari OyR.Rouvari Oy

Thank you for your kind attention!

S&T Balance