Some Facts and Figures ... and Thoughts on the Finnish Innovation Environment Timo Kekkonen, Confederation of Finnish Industries EK.

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Transcript Some Facts and Figures ... and Thoughts on the Finnish Innovation Environment Timo Kekkonen, Confederation of Finnish Industries EK.

Some Facts and Figures ... and Thoughts on the Finnish Innovation Environment

Timo Kekkonen, Confederation of Finnish Industries EK

Innovation drives growth

• • • Intangible investments have a growing importance in

productivity growth

and in the

creation of wealth

Investments in intangible assets accounted for ⅔ – ¾ of labour productivity growth in many OECD countries Firms invest as much in intangible assets related to innovation (R&D, software, skills, organisational know how, branding,…) as in traditional capital (machinery, equipment, buildings,…)

Some strengths of the Finnish Innovation System

• Openness of the economy • Favourable framework conditions, e.g. macroeconomic stability • High level of education • Sizeable R&D expenditure • Strong ICT sector • Long-term commitment to education and research • Close co-operation within the system • Radically optimistic entrepreneurial culture gaining ground • Start-up of several reforms • …

Finland in international comparisons

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Finland ranks highly in competitiveness and innovation.

     According to

Innovation Union Scoreboard

2010, Sweden, Denmark, Finland and Germany are the Innovation leaders and all show a performance well above that of the EU27.

ITIF ranked Finland second with R&D input and personnel, venture capital, productivity and trade indicators.

A survey measuring the achievement of the

EU’s Lisbon goals

published in 2008 indicated that Finland was the most competitive economy in the Union. Finland came top in productivity development and human capital. Based on the

Lisbon Review

, Finland was third in competitiveness comparison in the EU in 2008. Finland was on top in innovation and R&D and in enterprise environment, as well as in sustainable development.

According to

WEF

, Finland was the fourth most competitive country in the world in 2011. The top three countries were Switzerland, Singapore and Sweden. Finland rates also as one of the innovation powerhouses. Sources: EU, The Innovation Union Scoreboard 2010; The Information Technology and Innovation Foundation ITIF; The Atlantic Century II European Growth and Jobs Monitor 2008; The Lisbon Council & Allianz Dresdner Economic Research: The Lisbon Review 2008; WEF: The Global Competitiveness Report 2011-2012 DM 36054 09-2011 Copyright © Tekes

Finland in international comparisons

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IMD

ranked Finland 15th in overall competitiveness in 2011. The three most competitive countries were Singapore, USA and Hong Kong.

Based on the comparison of the

European Commission

in 2005, Finland was among the leading countries in investing into knowledge-based economy and performance of the economy.

In the

Canadian Performance and Potential 2005-2006

comparison, Finland was among the four gold medallist when OECD countries were compared by economic, societal and environmental indicators.

In a comparison made by the

University of United Nations

, Finland was ranked second in overall ranking. Finland was also ranked second in education, technology and information indices.

According to the

OECD PISA 2006

study, young Finns were first in the OECD in sciences, second in mathematics and reading.

Sources: IMD: World Competitiveness Yearbook 2011; Key Figures 2005 on Science, Technology and Innovation; Performance and Potential 2005-06, The World of Canada, Trends Reshaping Our Future, 2005; United Nations University, The Millennium Project 2001; PISA 2006 Science Competencies for Tomorrow's World. OECD 2007. DM 36054 05-2011 Copyright © Tekes

Finland in international comparisons

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Wellbeing and sustainable development

 Wellbeing Assessment is a method of assessing sustainability that gives people and the ecosystem equal weight.

The Wellbeing Index (WI)

the combination of indicators related to human wellbeing (HWI, Human is Wellbeing Index) and ecosystem Wellbeing (EWI, Ecosystem Wellbeing Index). Published in 2001, The Wellbeing of Nations surveys 180 countries. In this comparison Sweden ranks 1st and Finland 2nd.



The 2008 Environmental Performance Index (EPI)

ranks 149 countries on 25 indicators tracked across six established policy categories: Environmental Health, Air Pollution, Water Resources, Biodiversity and Habitat, Productive Natural Resources, and Climate Change. Finland is ranked 4th.



The Human Development Index (HDI)

ranks 179 countries by a composite measure of life expectancy, education and income level.

Iceland is at the top of HDI 2008, followed by Norway, Canada, Australia and Ireland. Finland is ranked 12th.

Sources: Robert Prescott-Allen (2001), The Wellbeing of Nations. A Country-by-Country Index of Quality of Life and the Environment; WEF: Yale and Columbia Universities; UNDP, Human Development Report 2008; The Environmental Performance Index 2008 DM 36054 03-2010 Copyright © Tekes

EU member states’ innovation performance

Sweden, Denmark, Finland and Germany are innovation leaders in the EU.

SII points 2010 (Summary Innovation Index) 0.0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8

Innovation and competitiveness

Finland was ranked second with R&D input and personnel, venture capital, productivity and trade indicators.

Competitiveness

Total ranking 2011-2012

Switzerland Singapore Sweden

Finland

USA Germany Netherlands Denmark Japan Great Britain Hong Kong Canada Taiwan Qatar Belgium Norway WEF Global competitiveness 2011 2010 8 9 10 11 12 13 14 15 16 1 2 3

5 6 7 12 11 10 13 17 19 14 5 8 9 6 1 3 2

4 IMD Total competitiveness 2011 20 1 7 6 8 23 13

Innovation index

Points according to WEF

The Innovation index covers quality of research institutions, company spending on R&D, university and industry research collaboration, availability of scientists and engineers, utility patents and intellectual property protection.

Science and innovation profile of Finland

Finland is a pioneer in many aspects of innovation activities.

Source: OECD Science, Technology and Industry Outlook 2010.

Finland leads in technology and innovation

18 17 16 15 14 13 12 11 10 9 8 7 6 Ranking 1 2 3 4 5 Measurements of the comparison are R&D investments as percentage of GDP, scientific and engineering researchers per capita and patents per capita.

Source: Martin Prosperity Institute: Global technology rankings.

Ranking of EU countries

The Lisbon Review

Total rank Sweden

Finland

Denmark Netherlands Luxembourg Germany Austria France Great Britain Belgium Ireland Estonia Cyprus Slovenia Czechia 10 11 12 6 7 8 9 13 14 15 1 2 3 4 5 9 6 10 4 14 13 8 16 12 17 1 5 3 2 7 2 1 3 5 12 6 10 14 4 8 9 7 21 11 13 4 3 11 10 8 9 14 13 18 12 1 7 5 2 6 11 18 13 1 6 3 9 10 15 20 2 8 4 7 5 9 4 5 14 11 17 10 12 19 15 1 3 6 7 2 17 10 12 11 8 5 3 13 15 19 4 2 7 6 1 9 8 13 14 6 11 16 7 15 10 3 2 1 4 5 1 3 5 6 7 2 4 9 10 11 8 14 18 12 16 Source: WEF, The Lisbon Review 2010 DM 36054 11-2010 Copyright © Tekes

R&D investments in some countries

Percentage of GDP 5.0

4.5

4.0

3.5

3.0

2.5

2.0

1.5

1.0

0.5

0.0

Public sector’s share of total R&D funding in 2009

Companies’ share of total R&D funding in 2009

Exports of Finnish goods have decreased significantly with slow recovery as a result of the global crisis Exports of goods by country 1995 = 100 Value index, national currencies, seasonal adjusted 3 month moving average.

Exports ´ share of GDP in 2009

Source: Statistics Finland

High tech exports in some countries

% of total exports Exports of Finnish high tech products totalled 4.6 billion euros in 2011, i.e. 8 % of total exports of goods.

Industrial production has grown rapidly in Finland, but the global crisis has reduced production more than in other developed countries Volume index of industrial production 1995 = 100 Source: Eurostat, METI, OECD DM 36054 and 928485 03-2012 Copyright © Tekes

Labour productivity growth in the total economy in 2001-2010

Reserve of foreign direct investments

% of GDP Source: UNCTAD, World Investment Report 2011.

Business R&D input in Finland by sectors

Total 4.9 billion euros in 2010 2.5

2.0

1.5

1.0

0.5

0.0

Billion euros 5.5

5.0

4.5

4.0

3.5

3.0

Key actors of the Finnish innovation environment

EU structural funds for innovation Finnvera Invest in Finland Finnish Industry Investment Ltd Finpro Sitra Investors Private investments in innovation Business Angels Regional Councils Companies Association Inventions s Regional ELY Centres Polytechnics Key actors of the Finnish innovation environment National Board of Patents and Registrations of Finland Research institutes Centres of Expertise Universities Technology Centres Academy of Finland Strategic Centres for Science, Technology and innovation Tekes Ministry of Education and Culture Other ministries Ministry of Employment and the Economy Investments in different sectors like environment, health and traffic Research and Innovation Council National public investment in innovation and know-how

Something has to change. We need ...

• new measures to promote entrepreneurship – growth companies • more non-technological innovations • • a more efficient and focused public innovation system • more international mobility • to increase productivity with new working models 25

Some Facts and Figures ... and Thoughts on the Finnish Innovation Environment Timo Kekkonen, Confederation of Finnish Industries EK.

Transcript Some Facts and Figures ... and Thoughts on the Finnish Innovation Environment Timo Kekkonen, Confederation of Finnish Industries EK.