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Finnish STI Policy 2011–2015
Kls
Workshop on Science and Innovation policy
The Science and Technology Council of Iceland
Reykjavik on 16th February 2011
Ilkka Turunen
Secretary General
Research and Innovation Council of Finland
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RESEARCH AND INNOVATION
COUNCIL OF FINLAND
Finland is one of the innovation leaders
EUROPEAN COUNTRIES’ INNOVATION PERFORMANCE
Source: European Innovation Scoreboard 2010
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RESEARCH AND INNOVATION
COUNCIL OF FINLAND
Science and innovation profile of Finland
Source: OECD SCIENCE, TECHNOLOGY AND INDUSTRY OUTLOOK 2010
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RESEARCH AND INNOVATION
COUNCIL OF FINLAND
The Finnish Innovation System – A critical look
+ Investments and strong - Weak international linkages
commitment to enhance in (social dimension of
education, R&D, and globalization)
innovation - Foreign direct investment
+ A high number of researchers - Number of high-growth
relative to the population entrepreneurial firms
+ Ranks high in terms of - Risk-taking, pioneering,
scientific publications and prioritization, experimentation
patents - Highly fragmented HE and
+ High quality, access, cost- public research system
effectiveness and equity of - Exploitation of knowledge
basic education society and digitalization
+ Expertise and knowledge in - Public sector innovations
certain areas of high-tech
+ Co-operation between actors - Service innovation
of STI, consensus - Understanding of user and
+ Awareness of challenges and demand-driven innovation
a comprehensive reform - Gross-ministerial governance
agenda
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RESEARCH AND INNOVATION
COUNCIL OF FINLAND
Evaluation of the Finnish
National Innovation system
2009
&
The State and Quality of
Scientific Research in Finland
2009
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RESEARCH AND INNOVATION
COUNCIL OF FINLAND
A Growth Strategy for Finland at the Frontier
• Productivity • Pioneering
improvement – Less policy concern
– Within existing units for individuals & org’s
– Between existing units that are not (seeking
– Entry of new units to be) at the global
– Exit of old units frontier
• Increased emphasis • Increased emphasis
on re-allocation on top-quality
• More experimentation and more risk-taking
• Educating, enabling & incentivizing individuals (less org’s)
• New-to-the-world & radical/disruptive innovations
Source: Reinhilde Veugelers et al.: Evaluation of the Finnish National Innovation System, October 2009.
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RESEARCH AND INNOVATION
COUNCIL OF FINLAND
Evaluation: main findings
• complicated and fragmented research and innovation system; particularly
visible in the business support system
• weak international dimension; Finland has failed to attract foreign
researchers, well-educated experts, or knowledge-intensive overseas
businesses
• innovation policy has a strong regional dimension but lacks integration with
the national policy
• inappropriate policy mix (innovation vs. regional)=>aid allocated to areas
outside growth centres appears to slow down the increase in
productivity=>national innovation policy should not be used as a regional policy
tool
• weaknesses and incoherence in support for growth entrepreneurship and
growth-oriented start-ups => growth in businesses should be promoted through
both individual and corporate tax incentives
• the STI policy lacks sufficient cross-ministry coordination and decision-
making; The Ministry of Finance less involved in STI policy formulation
=>despite the targets, the reform of sectoral research/ public research
institutions has been slow
• a revision of evaluation practices needed: too much "self-evaluation", results
not uitilised
• clarification of demand and user innovation orientation
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RESEARCH AND INNOVATION
COUNCIL OF FINLAND
Education and Research
Problems
Finland tends to rank low in research output volume and
particularly research quality; world-class excellence in
research is rare
Finnish higher education and public research sector is
highly fragmented in three dimensions:
resources are scattered into three types of institutions –
universities, polytechnics, and public research organizations – with
partly overlapping duties,
institutions are scattered around the country,
universities are internally fragmented with too small research and
teaching units.
Low internationalization of the Finnish university sector
Students enter higher education later and study longer
than their counterparts in other countries
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RESEARCH AND INNOVATION
COUNCIL OF FINLAND
Education and Research - Reform agenda
Incentives trough funding: research and its quality should
receive considerably higher weight in the funding system of
universities (few, clear, quality-weighted, and discipline-
specific measures complemented with a ‘light’ peer review)
Profiles and strategies: universities should be given
strong incentives to excel in academic research;
polytechnics should maintain the more applied and
regionally oriented nature of their curriculum
The role and tasks of PROs should be critically assessed
and the basic research activities of PROs should be shifted
to universities
The best way to increase the participation of Finnish
academics in the international community and to attract
foreign experts to Finland is to reward universities for the
quality of research
RIC
RESEARCH AND INNOVATION
COUNCIL OF FINLAND
Erosion in the Quality of Science?
• The State and Quality of Scientific Research in Finland 2009: The
Finnish research and education system is not in all respects as good
as expected and the quality of scientific research has not improved as
expected.
Possible explanations:
• heavy emphasis on applied research, both in actual research funding
and in science and technology policy debate at the expense of basic
research,
• high proportion of doctoral students among research personnel,
• erosion of the scientific infrastructure,
• low level of international engagement in science and research, and
• shortcomings in research funding principles and in scientific
leadership.
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RESEARCH AND INNOVATION
COUNCIL OF FINLAND
Five Country Comparison (Advansis Ltd.)
• Quality measurements of scientific research show that several small
European countries have reached the Finnish level and even
outstripped Finland.
• No single factor that would explain the differences in the quality and
results of research in the reference countries
• Single measures in different reference countries that can be considered
strengths (even if not decisively) compared to Finland:
– Active strategy-level research policy (Denmark, Ireland)
– Basic resources for scientific research
– A relatively greater focus on core funding for research
– International engagement in scientific activities (Switzerland)
– Investments in upgrading research infrastructures (Denmark, Norway)
– Development of research careers and support to young researchers (the
Netherlands)
– Quality assessment of research at university level (the Netherlands,
Switzerland)
– Researcher salaries
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RESEARCH AND INNOVATION
COUNCIL OF FINLAND
Do we need a cultural change?
• Final report of the Country Brand Delegation (Mission for
Finland)=> Already there: functionality, nature,
education: "Finland’s greatest strength is the unbiased,
solution-focused approach to problems, which derives
from our history and culture. When faced with an
impossible situation, we roll up our sleeves and double
our efforts."
• A change needed: Sitra, the Finnish Innovation Fund
(Vibrant Finland) => a new mindset and operating
models, more vitality, energy stemming from people and
the interaction between them, a let’s-do-it spirit.
• Finland 2020 - From thought to action. (Final report by
the Growth Initiative working group)
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RESEARCH AND INNOVATION
COUNCIL OF FINLAND
RIC Guidelines for 2011-2015
RIC
RESEARCH AND INNOVATION
COUNCIL OF FINLAND
Challenges
• Further increase in (public) financing of STI
• Productivity of both service sector and public sector is low (growth
potential through ICT)
• Number of growth-oriented entrepreneurs and innovative firms is low by
international standards
• Volume of inward FDIs and numbers of foreign experts, researchers and
students are low
• Fragmented activities: resources allocated to a large number of small
units => prioritised pooling of limited resources
• More efficient exploitation of R&D results
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RESEARCH AND INNOVATION
COUNCIL OF FINLAND
The entire innovation system is on the move
• Status of universities has been changed (2010)
• Structural development of HEIs is in progress
• Implementation of the broad-based innovation policy (demand
and user driven elements)
• Internationalisation (?)
• Other issues: researcher career system; R&D infrastructures,
streamlining of the public innovation support system; Strategic
Centres of Excellence in STI (SHOK); the Centres of Expertise
Programme (OSKE)
• Environment: Global Challenges, recession 2008, "Asian Century"
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RESEARCH AND INNOVATION
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STI policy principles and objectives
• Prioritisation of STI activities: strategic choices,
better focus on resources, objectives, measures,
and impacts
• Specialisation in the fields of strength: sharper
profiles for R&D organisations
• Selective decision-making based on intelligent use
of evaluation and foresight
• More intense industry-academia co-operation (PPPs)
• Front-runner policy practices: experimentation,
pioneering, risk-taking, incentives (for growth,
commercialisation of R&D)
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RESEARCH AND INNOVATION
COUNCIL OF FINLAND
Figure 1. Finland’s innovation system in international comparison:
input indicators.
1. Level of state funding for RDI (% of GDP)
400
12. Percentage of turnover of all companies of 2. Average annual increase in state funding for RDI
foreign-owned companies (%) 1998–2008
300
11. Investments in the seed, start-up and early
200 3. Funding for basic research (% of GDP)
growth stages of companies
100
4. Direct and indirect public funding for RDI of
10. RDI by the service sector 0 companies
9. Percentage of those born abroad (%) of RDI staff 5. Percentage of RDI funding from companies
8. Percentage of foreign students of students in
6. Percentage of foreign research funding
higher education
7. Number of RDI employees / 1000 employed
persons
Average of OECD/EU data Finland Average of the top five countries by indicator
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RESEARCH AND INNOVATION
COUNCIL OF FINLAND
Figure 2. Finland’s innovation system in international comparison:
output indicators
1. Scientific articles (per million residents)
400
11. Reduction in the use of materials and energy (% of
2. Average citations received by publications
companies)
300
200 3. Funding received from EU framework programmes
10. Employment by knowledge-intensive sectors
per thousand researchers
100
0
4. Accepted projects in EU framework programmes /
9. New-to-market sales of revenue
GDP
8. Percentage of production companies (%) undertaking
5. Triad patents in relation to the population
non-technological innovation
7. Service exports of knowledge intensive sectors (% of 6. International cooperation in inventions (% of patents
service exports) in which foreign inventors are involved)
Average of OECD/EU data Finland Average of the top five countries by indicator
RIC
RESEARCH AND INNOVATION
COUNCIL OF FINLAND
Research and Innovation Policy Guidelines for 2011-2015
Developing the system requires that:
• structures are reformed and • steering systems, incentives and the
organisational, operational and regulatory environment are
regional fragmentation is reduced developed
• the coordination and steering of • the efficiency and effectiveness of
policy actions is strengthened at the business and innovation service
government level system is improved
• the prioritisation and selection of • the position of the SME sector within
content is undertaken the innovation system is strengthened
• the exploitation of ERI activities is • a long-term infrastructure policy is
promoted extensively created, the use of public data
• universities, universities of applied repositories is enhanced
sciences and research institutes are • evaluation expertise and the use of
supported in raising their profiles and evaluation data is strengthened
specialising in their fields of strength; • the funding base for research and
the quality of research is improved innovation is diversified
• multilateral cooperation is enhanced • the internationalisation of ERI
and the division of labour between activities of the entire innovation
higher education institutions, system is accelerated
research institutes and business • the means for monitoring policies is
life is clarified improved
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RESEARCH AND INNOVATION
COUNCIL OF FINLAND
Basic choices and strategic policy developments (1/3)
• The operating practices and culture of the public sector will be changed in a way that
improves cross-sectoral implementation of wide-ranging development measures: whole-of-
government approach.
• Major societal challenges and development issues are taken into account in a systematic
way in ERI policy, the allocation of resources and when developing measures; Grand
Challenges -approach.
• Investments will be made in developing management and working life. Occupational well-
being and productivity should be considered together.
• Integrated development of technological, non-technological and social innovations:
Operating models that bring together the skills of many different actors, competences and
technologies will be developed.
• Experimentation and greater risks taken by R&D entities, steering organizations and
funding bodies will be encouraged by political commitment.
• The entrepreneurial culture as well as instruments and incentives that support
entrepreneurship are strengthened.
• HEIs, R&D institutes and centres of excellence will be strengthened with resources that are
freed up by dismantling current structures.
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RESEARCH AND INNOVATION
COUNCIL OF FINLAND
Basic choices and strategic policy developments (2/3)
• Utilisation of R&D results from HEIs is promoted. Research and
innovation support services within HEIs are reorganized into larger
units that enhance the competence and resources of the service units.
• An R&D tax incentive aimed at companies will be introduced.
• Public enterprise support system will be reformed. Services form an
overall package of complementary services.
• Public venture capital (VC) organizations will implement the
internationalization programme.
• Private VC are encouraged to fund the growth and internationalization
of companies. A tax incentive for private VC individuals will be looked
into.
• The FinNode network (4 Finnish international innovation centres) will
be used effectively in the internationalization of domestic centres of
excellence and networks, as well as in market access.
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RESEARCH AND INNOVATION
COUNCIL OF FINLAND
Basic choices and strategic policy developments (3/3)
• The public sector promotes the creation of lead markets and supports the
creation and dissemination of innovations. Demand-side policy measures, such
as public procurement, regulation and standardisation, will be used intensively.
• Demand- and user-oriented piloting, demonstration and testing projects will be
developed as well as new funding that promote them.
• The ministries ensure that the regulatory environment and steering systems
support the exploitation of research and innovation, as well as experimentation
and risk-taking.
• Performance and quality objectives are set for policy actions, and mechanisms
for monitoring the attainment of objectives will be specified. This also calls for
better data, statistics and expertise in evaluation.
• The independence of evaluations is strengthened with respect to the subject of
the evaluation. Evaluations are international in scope. Evaluation results are
more closely linked to the development and decision-making of organisations
and functions.
• Public R&D funding and other support organisations will be evaluated. The
international evaluations of Tekes and the Academy of Finland will be launched
in 2011–2012.
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RESEARCH AND INNOVATION
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International Co-operation
• The partnerships to be prioritised include bilateral agreement countries
(South Korea, China, Russia, US, Japan) in STI cooperation and the
FinNode countries. The FinNode network is used effectively in the
internationalisation of Finnish poles of excellence and networks, as well as
in market access.
• Finland takes the initiative in reforming the EU’s research and innovation
policy. Structures that support participation must be strengthened. The
share of EU funding of the entire research and innovation funding of
universities and research institutes is doubled in the 2010s (5.8% in 2009).
• The flexibility of EU programmes to changes in the operating environment
and response to business needs must be improved. This will increase the
participation of companies in EU cooperation and link Finnish research and
technology programmes more closely to EU-level programmes.
• The development of the European research and innovation area is
promoted by opening up national programmes and national funding.
Programmes are opened up in a way that makes room for voluntary joint
pilot projects of member states. Effective principles, procedures and criteria
are sought and legislation is harmonised.
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RESEARCH AND INNOVATION
COUNCIL OF FINLAND
Structural development
• The steering systems of HEIs and public R&D institutes will be developed. New
models for funding universities and polytechnics will be introduced by 2013.
• New funding models support improving the quality of teaching and research,
internationalization, the utilisation and effectiveness of research results (incl.
incentives for enterprise collaboration), and raising the profile of higher education
institutions in their fields of strength.
• An action plan (up to 2020) on structural development of public R&D institutes and
the allocation of resources is prepared.
• The operating model of the Centre of Expertise Programme will be revised and
activities updated after the current period (in 2013). Effective policy tools and
platforms are created separately for innovation policy and regional policy.
• The activities of the Strategic Centres for Science, Technology and Innovation
(SHOKs) will be enhanced. Evaluation of the SHOKs in 2012.
• A research infrastructure body is established. It will prepare and implement a
national infrastructure policy in line with the ERI policy guidelines.
• More effective and wide use of public data and archives will be made possible. The
Government makes a resolution on the national information policy.
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RESEARCH AND INNOVATION
COUNCIL OF FINLAND
Human Resources
• The educational level of the population is raised. The supply of
education will be tailored on the basis of the long-term needs of the
labour market
• A researcher career system is implemented (incl. tenure tracks).
Mobility between sectors will be enhanced.
• The quality of postgraduate education is raised to an internationally
high level. An evaluation of graduate schools is performed by the year
2013.
• The recruitment practices of HEIs and public R&D institutes are
changed to attract international students, researchers and experts.
• An active employment and skills-oriented immigration policy will be
created.
• Legislation on higher education is amended to support the export of
education.
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RESEARCH AND INNOVATION
COUNCIL OF FINLAND
Public research and innovation funding: development principles
• Funding will be long-term and predictable, • Research and innovation by companies will be
and allocated under transparent criteria. activated through funding, with the aim of
• Long-term skills development requires a stable improving the ability to innovate within a larger
funding base: the diverse and strong education number of companies in all sectors.
and science base of the university system will • The funding models of universities and
be safeguarded. polytechnics will be updated by 2013 so that
• The share of public funding of total R&D resources are allocated to enhance the
funding will be raised (26% in 2009). international scope of their ERI activities, as
• The share of public competitive funding will well as to improve their quality and promote
not increase (competitive vs. direct budget their exploitability.
funding in 2010 was 48:52). • The funding for research institutes is
• The specialisation of HEIs within their fields updated so that resources can be flexibly re-
of strength will be accelerated through funding allocated in accordance with the need for
and effective incentives; the fragmentation of research-based evidence within society and for
education and research will be reduced. decision-making. Co-ordinated development
calls for the creation of a common funding
• New and current resources are directed mechanism.
towards the most important targets: strengths • The funding basis for universities and public
and selected priority fields; Strategic Centres R&D institutes will be diversified; quantitative
for Science, Technology and Innovation objectives and incentives are set for
(SHOKs); infrastructures; the research career international funding through steering.
system; internationalisation.
• Funding promotes the application, introduction • A larger share of the EU’s Structural Funds
and commercialisation of the ERI results. will be used for strengthening the knowledge
base and for research and innovation as well
as cross-border cooperation.
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RESEARCH AND INNOVATION
COUNCIL OF FINLAND
Research, Development & Innovation Funding
• The objective is to maintain the R&D intensity at 4% in the
2010s. Public investment should be 1.2% of GDP. The share of
the private sector on R&D funding should be a minimum of 2/3.
• Priorities in funding innovation include ensuring
competitiveness and innovation in the current fields of strength
within the enterprise sector, promoting demand- and user-
oriented innovation activities, and experimentation supporting
this, and growth companies.
• The functioning of financial markets should be improved
through close cooperation between public and private VC.
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RESEARCH AND INNOVATION
COUNCIL OF FINLAND
The quantitative recommendations for public R&D funding
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RESEARCH AND INNOVATION
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Funding by organization
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RESEARCH AND INNOVATION
COUNCIL OF FINLAND
Thank you
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RESEARCH AND INNOVATION
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