Transcript Otsikko = Arial 28 p, lihava Toinen rivi

Network for Regional SME Finance - FinNetSME
”Funding for technology and innovations”
Dr. Martti af Heurlin
Deputy Director General
[email protected]
Tekes,
Finnish Funding Agency for Technology and Innovation
Martti af Heurlin Tekes DM 233701
Network for Regional SME Finance – FinNetSME, Martti af Heurlin, Tekes
Main messages:
• High R&D-investments  clear results
• Towards wider understanding of innovation
• Strengths of the Finnish approach
• Interactive public-private communication
• Foresight and strategy processes
• National technology programmes + Example
• Important background: confidential strategy discussions with companies
•Business sector R&D funding by Tekes
• Together with others like:
Finnvera, TE-Centres, SITRA, Finnish Industry Investments Ltd, Finpro…
R&D in Finland
…and in Finland companies are ruling the game:
70% private - 30% public
Billion euros
6.0
6,0
Enterprises
Universities
Other public research
5.0
5,0
4.4
4.6
4.8
5.0
5.3 5.4
3.9
4.0
4,0
3.4
2.9
3.0
3,0
2.2
2.0
2,0
1.0
1,0
1.5
0.9
1.7 1.8
1.1
0.0
0,0
85
87
89
91
93
95
97
98
99
00
01
02
03
04
05
Est.
Source: Statistics Finland
DM 36100 and 38065
11-2005 Copyright © Tekes
Share of corporate R&D activities funded
by the public sector … going down EU, USA and OECD
… and very low in Finland – only half of the OECD and EU level
%
25
France
Norway
USA
EU15
OECD
Great Britain
Germany
Sweden
Netherlands
Canada
FINLAND
Denmark
Ireland
Japan
20
15
10
5
0
90
91
92
93
94
95
96
97
98
99
00
01
Source: OECD, Main Science and Technology Indicators
02
03
Evaluation of the Finnish innovation environment
Finland´s ranking is mainly very high …
… high ranking in competitiveness scores boards gives basis for
success - but is no guarantee
 Switzerland, Finland and Sweden are the world’s most competitive
economies according to The Global Competitiveness Report 20062007, released by the WEF on 26 September 2006.
 IMD ranks Finland 10th in overall competitiveness in 2006 (6th 2005).
 Based on the Lisbon Review, Finland was the most competitive
country in the EU in 2004, followed by Denmark and Sweden.
 Based on the comparison of the European Commission, Finland was
among the leading countries in investing into knowledge-based
economy and performance of the economy.
Sources: WEF, The Global Competitiveness Report 2005-2006 and The Lisbon Review 2004; IMD, The World
Competitiveness Yearbook 2005; EU, Key Figures 2005 on Science, Technology and Innovation and
The European Innovation Scoreboard 2004; United Nations University, The Millennium Project 2001;
DM 36054
OECD, Program for International Student Assessment PISA 2003
11-2005 Copyright © Tekes
Strengths of the Finnish innovation environment
… giving firm basis for productivity development
1. Wide consensus in the Finnish innovation policy
 Over all political parties
 Industries and trade unions
 Private – public discussion
2. Good balance in innovation measures
 Goals: economy – environment – wellbeing
 Funding targets: basic – applied – industrial research – development
 Marriage of R&D investments and Venture Capital investments
3. Co-operation – networking – “Club Finland”
 Universities – enterprises
 Large companies – sme’s (strategic partnerships)
 National - regional – international networking
 Between actors in the innovation system …
… well balanced and dynamic public innovation service system
Very competitive environment in Finland.
High investments in innovations in Finland.
Where are results ?
There are clear results:
 The structure of industries has changed strongly
towards more knowledge intensive sectors (1980-2005)
 Growth figures and productivity growth relatively good
 High tech exports have grown
 Patenting is active
 GDP per capita on fair level
 Unemployment is going down
Finnish exports of goods:
The structure of industries has changed a lot 1960-2005:
Forest cluster  ICT + Forest + Metal Clusters
% of total exports of goods
100 %
16
15
8
27
80 %
6
6
5
Wood products
22
21
20
19
Pulp, paper and
paper products
9
9
10
13
Basic metals and
metal products
16
18
18
17
Machines,
machinery and
vehicles
31
30
40
60 %
8
42
7
6
40 %
20 %
5
17
4
2
11
15
1
18
4
15
15
15
1960
1970
1980
0%
24
31
27
27
25
Electronics and
electrotechnical
products
9
5
6
6
13
Chemicals and
chemical products
9
12
13
13
1990
2000
2002
2003
11
8
Other goods
2004
… the productivity development in high tech industries has been faster
Source: National Board of Customs
Manufacturing productivity in industry
Finland has reached the US-level
Value added per hour worked,
USA = 100
120
110
France
FINLAND
100
USA
Netherlands
90
Denmark
Germany
80
Sweden
Great Britain
70
60
79
81
83
85
87
89
91
93
Source: University of Groningen
95
97
99
01
Innovation environment in Finland
Resources and funding
Active matching is very important – for customer – for impact
Private
R&D
at companies
3,770 (prel.)
Business
Angels
approx. 380*
Venture capitalists:
Private 268**
From abroad
169*
Finnish Industry Investment:
VTT
225 (78)
direct 13, venture capital funds 42,
seed funding 11
Sitra 29
Public
Academy
of Finland
219 (219)
Universities
1,040 (454)*
Basic research
Tekes
430 (430)
Innofin
Ministries,
6 (5)
TE-Centres,
sectorial research
312 (221)*
Applied research
Business R&D
Finnvera
406 (40)
Finpro
32 (20)
Business development
Marketing
Internationalisation
The figures represent the total extent of each organisation in million euros in 2005, those marked
with star in 2004 or earlier. In parenthesis the share that is funded from the State budget.
** includes venture capital funds from the Finnish Industry Investment Ltd
DM 36100
09-2006 Copyright © Tekes
Impact of Tekes activities
Renewal of industry and services, economic growth,
productivity, good employment and societal well-being.
Competitiveness,
profitability and
growth
Enterprises
New businesses,
start-ups
Projects and programmes
International cooperation
Societal and
environmental
impacts
Research institutes
and universities
Tekes
Expert services
and R&D funding
Coordination and funding of programmes
Activation to R&D
In cooperation with other services
Tekes funding in the state budget
Million euros
550
500
450
400
National share of EU Structural Funds
Industrial R&D loans
Capital loans for R&D
Industrial R&D grants
Coordination of programmes
390 379 386
Research funding
460
386
395
415
430
349
350
316
300
250
252
244
200
150
100
50
0
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006
During the years 2000-2006 Tekes also had an annual allocation of around 10
million euros from the EU Structural Funds as the EU share. The funding
resources for industrial R&D loans and capital loans for R&D merged in 2004.
DM 26047 and 38065
01-2006 Copyright © Tekes
Networking in corporate R&D projects is very important:
SMEs – big companies – universities … nationally ..internationally
… for higher targets in R&D and in business development
Large company
subcontracting
from SMEs
80
Share of networked projects, %
Subcontracting
from research
institutes
60
Part of
technology
programme
40
Active boosting
International
cooperation
towards networking
20
0
2000
2001
2002
2003
2004
2005
Almost all projects funded by Tekes in large companies and more than two thirds
of all R&D projects were networked in 2005. The figures include corporate R&D
projects, but not smaller feasibility studies.
DM 58774, 38065 and 180630
01-2006 Copyright © Tekes
Technology Development Departments
at the TE-Centres
Technology Development Departments at the Employment and Economic
Development Centres (TE-Centres) offer Tekes services to companies and
research units as integral part
of Tekes network
Lapland
Oulu
Kajaani
Vaasa
Seinäjoki
Jyväskylä
Tampere
Pori
Turku
Kuopio
Joensuu
Mikkeli
Lahti
Lappeenranta
Tekes, Helsinki
DM 26047
01-2006 Copyright © Tekes
… utilising Tekes´ global network
Five international offices build international cooperation
with Tekes´ technology programmes and strategy work
 Five offices located in the global technology
hot-spots in USA, Japan and China
 Brussels office linking EU and Finnish national R&D programmes
 Permanent staff of 12 technology experts
 Additional short term project personnel
Helsinki
Beijing
San Jose
Brussels
Washington, D.C.
The sun never sets down in Tekes
Shanghai
Tokyo
Process for strategy focus areas
… active communication with industries
International
business
environment
Market trends
Technology trends
Ministry of Trade and Industry
Tekes vision,
strategy and resources
Tekes strategy focus areas
 Application focus areas
 Technology focus areas
 Strategic areas of clusters
 Potential areas for new business
Regional
strategies and
regional
technology
strategies
Industry
organisations and
their strategies
Technology programmes
and project funding
Strategy discussions
with companies
Companies
Research
organisations,
universities
International
foresight
 EU, USA, China,
Japan and other
countries
Global
megatrends
Values and goals
of society
e.g. ETLA
and Sitra
Academy of
Finland
Tekes´ strategy focus areas 2005 -2007…in applications
Environment and energy
 Sustainable and
eco-efficient solutions
 Solutions for
climate change mitigation
 Acceptable and profitable
energy
Security and safety
 Security at work
and in systems
 Information security
Services
 Quality and productivity
 New service businesses
 New models for public and
private partnerships
 Service innovations
Renewing products and
business concepts
 The aim is to renew and strengthen
our strong industrial clusters
 Competitive products and services
 Modern process and production
technologies in business applications
Work and leisure
 Productive, creative and
motivating solutions
 Use of space
 Enjoyment and experiences
in leisure time
Health and well-being
 Human approach, quality and
productivity in health care
 Products and services to
support health and
well-being
Tekes´ strategy focus areas 2005…2007
… in technology and basic knowledge
Business competence and business development
 Innovation activities
 Business renewal
 Growth companies and
internationalisation




Customer-oriented approach
Managing a networked business
Knowledge management
Service business
ICT
Biotechnology
 Mobility
 Systems biology
 Broadband communications
 Bioprocess technology
 Combining biosciences
 Software-intensive products and systems
 Knowledge and content management
 Test environments for new applications
with ICT
and services
Materials technology
 Interdependencies between
Nanotechnology
 Innovative nanostructured materials
 New structures for nanoelectronics
 Nanosensors and actuators
properties, structures and production
 Surface phenomena
 Materials design
DM 129863
05-2005 Copyright © Tekes
Technology programmes implement the strategy
… Tekes together with companies, research institutes, universities, …
About half of Tekes resources in programmes – some 200 Meur/y
Steering group
Research projects
at universities and
research institutes
 enterprises
Tekes
 Preparation
 Coordination
 Decision
making
 20 ongoing programmes
2006 with a total
volume of 1.5 billion euros
 Each programme typically
lasts 5 years
Grants
Synergy
Networking
Part financing
 Tekes generally finances
about half the total
investment in R&D of a
programme
Grants
Loans
Capital loans
Company R&D
projects
 2,000 company
participations and 500
research unit
participations annually
Programmes are a unique gateway to Finland…
… a unique platform for international co-operation
DM 30256
02-2006 Copyright © Tekes
Some examples:
Energy, Environment and Construction
Technology programmes in 2006
CUBE - Building Services
Participating
Total
volume compa- research
mill. euros nies
units
2002-2006
40
17 200
FUSION - Fusion Energy Research Programme 2003-2006
DENSY - Distributed Energy Systems
2003-2007
18
8 12
60
20 138
Sara - Construction Adding Value
2003-2007
33
16 164
ClimBus - Business Opportunities in
Mitigating Climate Change
2004-2008
70
23 122
DM 30256
01-2006 Copyright © Tekes
Some examples:
Information and Communications Technology
Technology programmes in 2006
Participating
Total
volume compa- research
mill. euros nies
units
FENIX - Interactive Computing
2003-2007
84 82
21
FinnWell - Future Healthcare
2004-2009
150 66
21
MASI - Modelling and Simulation
2005-2009
92 47
38
GIGA - Converging Networks
2005-2010
237
5
2
NORDITE - Scandinavian ICT
2005-2010
15
-
15
VAMOS - Value Added Mobile Solutions
2005-2010
202 56
11
VERSO – Vertical Software Solutions
DM 30256
01-2006 Copyright © Tekes
FinnWell - Healthcare Technology Programme
 Programme duration: 2004-2009
 Programme volume: approx. 150 million euro
 of which Tekes provides 50 %
 Programme Coordinator: Kalevi Virta, Navicre Oy
 Programme Manager: Anne Turula, Tekes
 Further information: www.tekes.fi/programmes/finnwell
DM 112229
10-2004 Copyright © Tekes
Focus areas of Future Healthcare (FinnWell)
Well-being
Preventing
illness
Care /
diagnosis
Citizens’/ patientsviewpoint
Public health
Technologies for diagnostics and care
Processes of healthcare
Clinical medicine
Experiences
Maintaining
health
Healthcare IT related products and services
Viewpoint of organisations
and business
DM 112229
10-2004 Copyright © Tekes
Tekes’ mission statement
Tekes, Finnish Funding Agency for Technology and Innovation
Tekes boosts the development of Finnish industry
and the service sector by technological means and
through innovation.
This will renew the economy and
increase added-value, productivity and exports,
thereby creating employment and enhancing well-being.
DM 32189
03-2006 Copyright © Tekes
Tekes’ key partners and stakeholders
… we hit the target together with our partners
Municipalities
and cities
Science
and
Technology
Policy Council
Other
ministries
Key
ministries
Associations for
industry and
Invest in
services
Finland
Finnvera
Innofin
Academy
of Finland
TECentres
Customers
Companies
Universities
Research institutes
Polytechnics
Tekes
Finnish
Industry
Investment Ltd
Regional
Councils
Private
investors and
Business Angels
National Board
of Patents and
Registration of
Finland
Sitra Finpro
Technology
Centres
Centres of
Expertise
DM 32189
08-2006 Copyright © Tekes
Business from R&D
Tekes’ R&D funding services
for companies
DM 111 110
DM 42097
09-2004 Copyright © Tekes
03-2005 Copyright © Tekes
Funding criteria for company R&D projects
Tekes’ experts evaluate the project, the business, resources and the
company from the holistic viewpoint
The key issues of the evaluation are
 Business activity to be pursued
 Technology, innovation, competence and
know-how to be developed
 Resources available for the project
 Cooperation to be developed and utilised
 Direct affect on social, environmental and
welfare aspects
 Impact of Tekes’ funding and expert work
on project implementation
Other funding applications and the indirect impacts of the project
on other companies will be taken into account in the evaluation.
DM 42097
04-2003 Copyright © Tekes
Forms of Tekes’ funding
R&D grants are aimed at
 research projects that create new knowledge
for the development of products and services
 feasibility studies
R&D capital loans are primarily aimed at
 strengthening the risk-taking capacity of small
and starting enterprises in their R&D activities
 projects that will develop a product, process or service
Start-up capital loans for technology companies are aimed at
 sharing the costs at the start-up phase
R&D loans are primarily aimed at
 projects that will develop a product, process or service
 well established SMEs
Tekes’ funding is often a combination of a grant and a loan
DM 42097
04-2004 Copyright © Tekes
Funding depends on the project’s technological
challenge and on the market distance
Degree of challenge
and novelty
increases
R&D grant
R&D grant or
combined funding
Loan-weighted
combined funding
R&D loan or
capital loan for R&D
Distance from
market increases
DM 42097
04-2004 Copyright © Tekes
Total Tekes R&D funding
in 2005
Total 429 million euros and
2,134 projects
R&D grants
to companies
178 million euros
Research funding
for universities,
research institutes
and polytechnics
179 million euros
Start-up loans to new
technology companies
4.1 million euros
Capital loans for R&D
to companies
25 million euros
R&D loans
to companies
43 million euros
Figures include 21 million euros funding from EU Structural Funds.
DM 180630
01-2006 Copyright © Tekes
Share of Tekes business R&D funding for
companies with less than 500 employees
%
100
90
80
SME
70
(EU-def.)
60
50-60%
50
40
30
20
10
0
84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05
Annually an additional 10-25 million euros was directed towards companies
with less than 500 employees through projects in large companies, which
increases the percentage by 5-10 points.
DM 180630 and 58774
02-2006 Copyright © Tekes
Tekes R&D funding by region
To Kainuu about 1-1,5% of Tekes´ funding,
which is well above average
Tekes´ funding
for companies
2004,
%
0,4
0,6
Total
237 Meur
Companies R&D
investments2003,
%
Total 3,5 Meur
15,2
7,1
1,5
2,2
0,3
2,4
0,5
1,8
3,9 11,0
2,0
3,7
1,4
1,9
2,6
2,1
0,8
14,2
2,8
38,9
1,2
0,3
0,4
1,6 17,1
1,2
0,4
3,2
0,2
1,1
1,2
1,0
1,0
11,0
1,2
40,8
DM 125030 ja 55023
01-2005 Copyright © Tekes
Tekes R&D funding by industry
Million euros
Industry
70
Machines and
metals
Business
services
Electronics and
electricity
60
50
40
Chemicals
30
20
10
Other
Forest
Foods
Construction
Electricity, gas
and water supply
0
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005
DM 180630
01-2006 Copyright © Tekes
Networking in corporate R&D projects
Share of networked projects, %
80
Large company
subcontracting
from SMEs
Subcontracting
from research
institutes
60
Part of
technology
programme
40
International
cooperation
20
0
2000
2001
2002
2003
2004
2005
Almost all projects funded by Tekes in large companies and more than two thirds
of all R&D projects were networked in 2005. The figures include corporate R&D
projects, but not smaller feasibility studies.
DM 58774, 38065 and 180630
01-2006 Copyright © Tekes
International cooperation projects
funded by Tekes by country groups
Number of international projects
EU 25 and EEA
600
500
400
300
USA
200
Other
countries
100
Japan
China
0
2001
2002
2003
2004
2005
Almost 40 percent, equal to 797 projects funded by Tekes were internationally networked
in 2005. The total budget was 430 million euros, of which 234 million was funded by Tekes.
Percentages are calculated from the total funding of the projects.
DM 180630 and 31947
Any project can belong to more than one country group.
01-2006 Copyright © Tekes
Impact of project funding in large companies
Funding flows of Tekes funded R&D projects between large companies,
(more than 500 employees), universities, research institutes and SMEs
Annual average 2003-2005
11 mill. euros
Large
companies
Universities
Public research
centres
35 mill. euros
Project
volume
SMEs
191 mill. euros
19 mill. euros
66 mill.
euros
Tekes
Funding flows to/from large companies,
million euros
• Tekes funding to R&D projects
of large companies
• Large companies projects buy
•
•
+ 66
research services from research
organisations
- 35
Large companies projects use
SMEs as subcontractors
- 19
Large companies co-finance
public research projects
- 11
• Net flow
+ 1
Large companies (more than 500 employees) receive 16 % of Tekes total funding and 27 % of Tekes
business R&D funding during 2003-2005. Large companies co-finance Tekes R&D projects in universities,
public research institutes and SMEs as much as Tekes finances their projects.
This system is managed by Tekes funding criteria, Increasing the quality of R&D projects and having
important externalities in:
• knowledge transfer between large companies, universities and research institutes
DM 125032 and 58774
• development of SMEs as subcontractors and strategic partners of large companies
02-2006 Copyright © Tekes
Network for Regional SME Finance – FinNetSME, Martti af Heurlin, Tekes
Main messages:
• High R&D-investments  clear results
• Towards wider understanding of innovation
• Strengths of the Finnish approach
• Interactive public-private communication – all levels
• Business sector R&D funding by Tekes
• Together with others like:
Finnvera, TE-Centres, SITRA, Finnish Industry Investments Ltd, Finpro…
Thank You
[email protected]