Presentation by Mr. Veli-Pekka Saarnivaara (Director General, Tekes - Finnish Funding Agency for Technology and Innovation) on "Tekes – Promoter of Innovation and Technology Development in Finland" during the study visit of the sub-committee on Innovative workplaces to Helsinki on 25 January 2011

1. Workshop on Innovative Workplaces EESC “Sub-committee on Innovative Workplaces Tekes – Promoter of Innovation and Technology in Finland Veli-Pekka Saarnivaara Director General, CEO, Tekes 25.1.2011

2. Tekes – Promoter of Innovation and Technology in FinlandFinnish Innovation Policy Performance of Finland Global and special Finnish challenges Priorities of Finnish innovation policy Public actors of research and innovation in Finland Tekes – Finnish Funding Agency for Technology and Innovation Integration of technological and workplace innovation Productivity increase Improving the quality of working life Helping people to continue in working life for longer

3. Labour productivity in industry andprivate services Sources: EUKLEMS and calculations by ETLA 03-2010 1995=100 Euros per hour worked DM 36054 and 218475

4. Volume index of industrial production Industrial production has grown faster in Finland than in other developed nations. Source: Eurostat 05-2009 1995=100 DM 36054 and 218475

5. GDP per capita GDP for 2009 partly estimated.Sources: Eurostat and calculations by ETLA 03-2010 DM 218475 GDP in Finland has grown at a rate faster than theOECD average both before and after the recession in the beginning of 90’s. 1,000 euros, based on purchasing power parities for the year 2004

6. 02-2010 DM632200 “Denmark, Finland, Germany, Sweden and the UK are the Innovation leaders, with innovation performance well above the EU27 average and all other countries. Of these countries, Germany and Finland are improving their performance fastest while Denmark and the UK are stagnating.”

7. 12-2010 DM7363480 OECD Science, Technology and Industry Outlook 2010 ”Finland’s innovation investment and performance are among the strongest in the OECD area. Collaboration with other countries is at a high level, and a large proportion of the labour force has a tertiary qualification.”

8. Global and Finnish Challenges Global distribution of work Geographic clusters are disintegrated to global value chains Energy and climate change Fast development and transfer of technology Demographic development – ageing Heterogeneous university system Low internationalization of universities and sme’s (and whole population) Start up’s – growth and internationalization of young companies Services Modest productivity change in public services Innovations in services

9. 01-2011 DM 218475 Priorities in innovation policy R&D investments from 3,5 up to 4% of GDP Broad Innovation strategy Technical and societal innovations Systemic approachReform of University system International cooperation Labour Economic growth Increase in exports Know-how Education Improvement inemployment Research Knowledge Growth in productivity Regional development Technology Innovation Growth in well-being Creative individuals and communities Customer and user orientation Open innovation Pioneering markets Capital According to the new growth model, economic growth is rooted in education, research and technology.

10. PARLIAMENT GOVERNMENT Otherministriesand theirinstitutes MinistryofEducation AcademyofFinland Tekes Sitra Finnvera plc Finpro FinnishIndustryInvestment Ltd Universities VTT RegionalTE-Centres Public sector activities of R&D in Finland Research andInnovationCouncil Ministry ofEmployment and the Economy DM 36100 01-2009 Copyright © Tekes

11. Tekes aims to build a strong networked knowledge base renew the economy and create new businesses increase productivity in industries and service sector enhance wellbeing in society and improve environmental sustainability 11-2009 DM 607668

12. Expertise and networks for innovations Tekes's services Funding for innovative private and public R&D Networking Finnish and global companies and researchers Customers Finnish and international companies located in Finland Universities, research institutes Public service providers Resources Budget: 600 million € annually Personnel: 360 in Finland and abroad 11-2009 DM 607668

13. Tekes R&D funding in 2009 Total 579 million euros and 2,177 projects Figures include 12 million € funding for Workplace Development Programme TYKES and 22 million € funding from EU Structural Funds. 01-2010 R&D grants to companies and public organisations 246 million euros Research fundingfor universities,research institutesand polytechnics236 million euros R&DLoans to companies97 million euros DM 624592 and 607668

14. How do we work? Tekes encourages companies to do challenging R&D Funding for the creation of new know-how and development of products, processes and services or business concepts We accept more risks than private financiers Tekes funds public research in universities and research institutes Tekes facilitates collaboration and networking between small and large businesses industry and the academia public and private organisations globally – nationally – regionally The collaboration is boosted by funding criteria and co-operative programmes 11-2009 DM 607668

15. Ease of cooperation with universities As % of total innovative enterprises 40 36 35 30 25 19 20 15 14 15 9 9 9 10 8 8 8 8 6 4 5 2 0 IT LU NL PT UK IE ES DE AT FR BE DK SE FI Source: Science, Technology and Innovation in the Netherlands, 2004. Min. of Education and Min. of Economic Affairs

16. Half of the funded projects areinternationally networked Any international company located in Finland is eligible for Tekes's funding, regardless of ownership. 11-2009 DM 607668 International activities in projectsfunded by Tekes in 2006 - 2008

17. Focus of Tekes funding in 2009 Tekes funding for the service sector Tekes funding for energy andenvironment targets Tekes funding for applications andutilisation of ICT Tekes funding for the wellbeingand health theme Tekes funding for non-technicaldevelopment (business and service concepts, branding, workplace innovations, design.... 01-2010 DM 624592 165 mill.euros 238 mill.euros 212 mill.euros 53 mill.euros 234 mill.euros 50 % of the funding forcompanies 41 %of the funding 37 %of the funding 9 %of the funding 41 %of the funding

19. Brand

20. Human capital

21. Organisational structure

22. Workplace development2 % 1 % 0,8 % 0,5 Computerised information 0,5 R&D Other innovative property The impact of r&d investments in productivity growth can be increased by combining them with other business intangible investments leading to integrated innovations. Source: Statistics Finland Copyright © Tekes

24. Increase of added value

25. Increase of effectiveness of processes

26. Quality of working life is a need and an intrinsic value as such

27. Helping people to continue in working life for longer helps also to increase added value

28. Competitiveness and productivity can be improved faster by integrating traditional r&d&i and workplace innovations to be done parallel