S T S T Balance WORKING GROUP ON ECONOMIC

S T S&T Balance 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 Kotilainen S&T Balance

Vaisala Corp. EXPENSIVE INVESTMENTS OF AN ENTERPRISE WORLD CLASS TECHNOLOGY # Skills & Equipment # Products # Partners GLOBAL DISTRIBUTION X # Marketing, sales, distribution, after sales # Customer contacts, trust # Partners It is not only a matter of money, but also a matter of time to achieve the target Invest thoughtfully, utilize effectively! Strategic thinking!

Research and Innovation New knowledge Curiosity Business models Customer needs Research Innovation R&D WORK Linear model Scientific excellence ”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, 2004 Turnover/earnings Growth and Employment Meet R&I

RESEARCH PARADIGMS Old paradigm (LINEAR MODEL) BASIC RESEARCH APPLIED RESEARCH DEVELOPMENT New paradigm (CONCURRENT MODEL) Basic research DEMAND Applied research Development TECHNOLOGICAL SOLUTIONS © S&T Balance PROBLEM SOLVING MARKET SOCIETAL & BUSINESS CHALLENGES SCIENTIFIC UNDERSTANDING

The Triple Helix Confederations of Industry EU Commission -state aid -regulations -FP Industry Industry Clusters Banks Venture Capital Business angels Semiprivate SITRA Finvera Industrial Invest Centres of Excellence Technology/Science Parks Knowledge Centres Sectorial Institutes Tech Transfer offices Institutes, labs © S&T Balance Science & Technology Policy Council Universities Research institutes Ministries Agencies Patent offices, Government IPR Regional centres TE-centres

ENTERPRISE DEVELOPMENT AND FINANCING GROWTH, TURNOVER START-UP GROWTH ADOLESCENT GROWTH MATURE GROWTH PUBLIC R&D SUPPORT • SELECTIVE • PROACTIVE • TREND SETTER DIRECT PUBLIC OPERATIVE SUPPORT PUBLIC INVESTMENT EQUITY SUPPORT VC FINANCING • SELECTIVE • TREND FOLLOWER TIME

Tekes funding for private enterprises Funding Instruments and the Innovation Process Planning of production, logistics, marketing and exports Market demand Business Plan Technology strategy Production, Development of Market entry new or improved products, processes Funding from: Own cash flow and services Venture capital Finnvera Oyj Banks Technology enablers Tekes funding: Loan Exploratory award 70 % Capital loan 80 % Capital loan Grant 50 -70% 50 -60% 25 -50%

Results of completed projects 2001 Completed projects Academic theses 2002 2003 2004 2005 2, 464 2, 038 1, 892 1, 980 2, 092 713 Publications 1, 421 Patent applications by research organisations 114 Patent applications by companies 398 New or improved products 319 New or improved services 119 New production processes 149 715 1, 219 107 968 1, 439 141 999 2, 451 141 1, 109 2, 660 113 451 435 591 572 349 402 465 487 170 149 202 187 301 187 315 189 DM 218475 09 -2006 Copyright © Tekes

Technological success rate of enterprise research projects concluded in 2002 concluded 1145 projects 611 mio. € 16 % No information 240 projects, 100 mio. € 84 % 905 projects 511 mio. € 54 % Success as expected or better 525 projects 278 mio. € 3% 19 % 23 % Stopped or failed projects 37 projects, 17 mio. € Success less than satisfactory, 155 projects 99 mio. € Otherwise as expected, but late 188 projects 117 mio. € Number and volume of projects 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 © S&T Balance Objectives natl progr

Industrial SMEs participating in R&D cooperation % Source: European Innovation Scoreboard 2003 DM 58774,

Cooperation between companies Share of cooperating companies of all innovating companies % Source: Towards a European Research Area - Key Figures, Special Edition. EU 2001

What is a EUREKA project? EUREKA a catalyst for collaboration A EUREKA project is: – proposed, defined and managed by its partners (the ‘bottom up’ approach) – international - partners from at least two of EUREKA’s 34 members – led by industry; financed locally – developing hi-tech products/processes/ services for the market – Could this be Latin-American approach?

THE FUNDING PRINCIPLE OF EUREKA The money is invested by national decision The money is invested by/in each country The consequence is: The success of the companies contributes to the Economy, Growth and Employment of the State

Precision weather service Vaisala Oy l Testbed, a project that is part of the AVALI Technology Programme launched by the Finnish Funding Agency for Technology and Innovation Tekes in 2005, will continue until August 2007 l The aim of the project is to create an experimental and developmen platform for observational instruments and systems, analysis and forecasting models, and services related to the weather and the environment l The dense weather and measurement station network making use of wireless data transmission and including a database and web user interface, is provided by Vaisala l The project generates precision weather data for organisations and private individuals, providing information on phenomena such as local showers, fog and ozone levels l www. vaisala. fi and testbed. fmi. fi DM 32182 06 -2006 Copyright © Tekes

New mobile positioning technologies l The Digital Media Institute of the Tampere University of Technology explored ways of combining different positioning technologies economically and reliably l The project generated a broad range of results in the various sub-fields of positioning technology that will facilitate the commercial application of positioning in the immediate future l The AVALI Technology Programme of the Finnish Funding Agency for Technology and Innovation Tekes, involved a large number of companies l www. cs. tut. fi/tlt l www. tekes. fi/avali DM 32330 06 -2006 Copyright © Tekes

Company emerges from university research Plant biotechnology company Uni. Crop Ltd. • Develops monoclonal antibody production technology for the pharmaceuticals industry • Production in plant sprouts, in closed bioreactors and in greenhouses with high level of biosafety • Production plant is transgenic false flax, Camelina sativa • Technology cheaper than animal cell technology • Produced first antibodies in plant sprouts in 2003 • Funding from: Tekes, Sitra, Optiomi Oy, Bio Fund Management Oy and Solaris Capital Pictures: Uni. Crop Oy • www. unicrop. fi DM 32330 11 -2005 Copyright © Tekes

Ready to be introduced on global markets A quick test for diagnosing Hantavirus infections • 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; the test does not require laboratory training • The test is as reliable as the conventional enzyme immunoassay method • Resale contracts have been concluded in 10 countries so far DM 32330 04 -2002 Copyright © Tekes

Finnish-built power plant Winwind Oy • Winwind from Oulu has developed a new wind 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 reliability of the concept • Deliveries to Finland, Sweden and Portugal • www. winwind. fi DM 32330 11 -2005 Copyright © Tekes

Roof trusses for global markets Goal-oriented product development bears fruit • Sepa Oy has been characterised by R&D since it started operation • Sepa Oy specialises in nail plate truss production • The aim of R&D has been to improve both products and production technologies • The production system is completely automated • Integrated design and production makes carefully measured, cost-effective and material-saving truss structures possible • Electronic commerce boosts Sepa´s operations • With a staff of about 80, turnover amounted to 10 million euros in 2000 DM 32330 04 -2002 Copyright © Tekes

The automatic port of Brisbane Kalmar Industries • Fisherman’s Island in Australia is the world's first fully automatic straddle carrier terminal • Developed by Australian Patrick Stevedores and the Finnish Kalmar Industries, with the help of Tekes funding • Machines are controlled by radar, dead reckoning and satellite positioning systems • Automatic straddle carriers are safer than manually operated ones and reduce fuel, energy and maintenance costs • www. kalmarind. com DM 32330 11 -2005 Copyright © Tekes

Monitoring system provides information on ship's condition R. Rouvari Oy • 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 32330 11 -2005 Copyright © Tekes

Thank you for your kind attention! S&T Balance