REVIEW 2008

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3Contents

Turku Science Park Ltd in 2008The CEO's Review ............................................................................................................................................4A look at the main business areas Biotechnology in Turku .........................................................................................................................6 Applied ICT in Southwest Finland .........................................................................................................8

BioTurku® ......................................................................................................................................................10 CASE: All is well in HyTest ..................................................................................................................12Biocelex Ltd ...................................................................................................................................................13Applied ICT and development projects ...........................................................................................................14 CASE: A successful year for Lingsoft...................................................................................................15 CASE: Practical IT assistance for SME's ..............................................................................................16

Centre of Expertise and international activities ...............................................................................................18 CASE: Fresh fish from smart packaging ..............................................................................................19 CASE: On the tip of your tongue: What really makes a product pleasant? ............................................20 A network provides internationalisation tools ......................................................................................21Business Development...................................................................................................................................22 CASE: Rapid internationalisation for incubator company Medbase ......................................................23 CASE: Turku Science Park has its own “digital TV cluster”. Digital TV – leading edge expertise and development ........................................................................24Marketing and Communications.....................................................................................................................26 Turku Science Park in the headlines in 2008 ......................................................................................27 Turku Science Park's image and customer survey ..............................................................................28

Turku Science Park Ltd's 20th anniversary was a celebration of internationality .............................................29Real Estate ....................................................................................................................................................30 CASE: Chipset designers relocated to Turku Science Park ...................................................................30Board of Directors .........................................................................................................................................32Financial statement and balance sheet 2008 .................................................................................................33Accelerator of innovation ...............................................................................................................................34

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The tasks of Turku Science Park include commercialising innovations gen-

erated by the local universities and institutes of higher education and pro-

moting the development and growth of highly-skilled business, especially

in the fields of biotechnology and applied ICT. During our twenty years

in the business, we have seen how in times of an economic downturn,

creativity and expertise based on a high standard of education become

more important than ever. Turku Science Park has a role to play in bridg-

ing the gap between businesses, research units and the public sector – in

translating opportunities into activities and jobs.

We assist start-up companies in launching their operations and securing

financing. During the year, our incubators fostered 8 start-ups, while 4

companies outgrew the incubator stage. The business incubator currently

shelters 26 enterprises, and in total, 180 companies that now employ ap-

prox. 1,000 technology professionals have grown from our incubators. In

2008 over EUR 4 million of capital and project financing was granted to

incubator companies.

We strive to build up co-operation networks between up-and-running

businesses and research institutes, both locally and internationally. We

offer expert services and premises for start-up and growth enterprises

in particular.

Setting up an international network of partnerships was a keynote theme

in 2008. Co-operation in the fields of development and financing with

the Karolinska Institutet, which had been launched one year prior, gath-

ered momentum. In the spring, the partnership was enhanced with an

agreement with Karolinska Development Ab. This agreement opens

up a source of financing for Finnish startups in the biomedical sector.

The practical implementation of this co-operation will be channelled

through Biocelex Ltd, a company in which Turku Science Park Ltd and

Karolinska Institutet Holding Ab are the main shareholders. Towards

the end of the year, Turku Science Park Ltd also made a strategic invest-

ment in Karolinska Development Ab’s share issue.

A co-operation agreement was concluded in summer 2008 with

Heidelberg Technology Park which, similarly to Karolinska Institutet, is

on the cutting edge of the European life sciences sector. Under this agree-

ment, joint seminars for businesses and research teams will be organised,

particularly in the field of bioimaging.

A survey of needs and expectations of companies engaged in ICT and

related fields, which total some 1,600 in Southwest Finland, was carried

out in 2008. The commercialisation of new services has begun.

The CEO’s Review

The CEO’s Review

Relinquishing the real estate shown in the company’s balance sheet in co-

operation with the City of Turku is part of the Turku Science Park’s action

plan. This plan was not fulfilled in 2008 and the underused special facili-

ties in the pharmaceutical industry building located in the BioValley area

are reflected as a financial burden to the company in the year’s profits.

The City of Turku’s investments in business services have decreased since

the year 2006, in line with a plan drafted at that time. The range of these

activities remains broad, however, and their cost-effectiveness continues

to improve. As a result of the company’s activities, investments held by

the City have paid themselves back many-fold: 4.8 times their sum was

secured in third-party financing. This is just one concrete example of how

we at Turku Science Park carry out our promise of accelerating innovative

growth.

Ilkka Kouvonen

CEO, Turku Science Park Ltd

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The life sciences sector as a whole made good headway in Turku in

2008, even though the global credit crunch was reflected in the com-

panies’ business operations, especially towards the end of the year.

Bayer Schering Pharma emerged as the regional flagship of the sec-

tor. The company’s Pansio facility was preparing to commission the fourth

IUS (intrauterine system) production line, increasing the annual production

capacity of Mirena hormonal IUS’s from three to four million units. The

demand for Mirena continued strong, and sales reached EUR 462 million.

As a result of the Group’s internal arrangements, Bayer is also about to

double their tablet manufacturing capacity in Turku. Thanks to increased

demand, Bayer took on some 55 new employees, bringing the company’s

payroll in Turku up to approx. 600 at the end of 2008.

PerkinElmer Human Health (locally known as Wallac) also increased

its production in Turku, even though the company’s profit development was

undermined by the weak dollar. The Genetic Screening Unit headquartered

in Turku has reinforced its position in the Group and now produces some

three quarters of Wallac’s turnover. Wallac is the indisputable global mar-

ket leader in its field. Its market share in neonatal screening systems is

over 65%, while that of prenatal foetal screening systems exceeds 30%.

Even in today’s world, the cobbler’s children have no shoes. Although the

global market leader in screening systems is based in Finland, Finnish

babies are only screened for one disease, while their peers in neighbour-

ing countries are screened for up to 20 diseases and conditions. This is

why Wallac, in partnership with Turku University Hospital, started a more

extensive screening programme of newborns on a trial basis, donating the

screening tools to the hospital for three years.

In June, Orion inaugurated 2,000 square metres of new research facilities

in their Turku plant. Mr Timo Lappalainen, Managing Director of Orion,

explains that the company was running short of lab space, and new facili-

ties that were able to meet the latest international standards were needed

for the company’s R&D efforts. Towards the end of the year, the company

announced a renewal of its operating model as regards pharmaceutical

development and research, due to the expiry of basic patents protecting

some of the company’s most important products early in the next decade.

In practice, the company resorted to dismissals, which affected 55 of its

employees in Turku, but is holding on to unwavering faith in the strategic

competitiveness of its in-house product development and manufacturing

activities.

Profits and product development

Tangible milestones were also reached by smaller businesses and re-

search projects in the life sciences sector.

HyTest Ltd, which operates from Turku Science Park, continued its out-

standing profit development, and despite the weak dollar managed to in-

crease its turnover to over EUR 7 million. What is more, the company was

extremely lucrative, with profits amounting to nearly EUR 2.2 million.

Other SMEs, such as Biotie Therapies, BioCis Pharma and Faron Pharmaceuticals, announced major achievements in the fields of re-

search and business.

Biotechnology in Turku

A look at the main business areas

7A look at the main business areas

At the end of the year, Biotie Therapies Corp. concluded an agreement

concerning the acquisition of a German pharmaceutical research and

development company, elbion GmbH. After this merger, Biotie’s product

development portfolio will contain front line pharmaceuticals in various

phases of clinical and preclinical development. Biotie’s licensing partner,

H. Lundbeck A/S, additionally announced their intention to start three

phase III clinical trials with nalmephene in the treatment of alcohol de-

pendency. The main results of these trials are expected in the first half

of 2011.

The product development activities of BioCis Pharma Ltd, a pharmaceu-

tical development company operating in Turku Science Park’s business

incubator, advanced by leaps and bounds. In the autumn the company

started clinical patient trials with a dermatitis treatment developed by the

company in Finland. In early 2008, the first clinical trial of the therapy com-

menced with healthy volunteers. This trial proved the treatment safe and

well-tolerated, as well as significantly better at keeping irritation symp-

toms in check than a placebo. Despite the economic downturn, BioCis also

managed to boost their financing, e.g. by securing a new venture capitalist

from Sweden.

The autumn also saw Faron Pharmaceuticals Ltd, a pharmaceutical

developer, start clinical trials for patients with acute lung trauma in Great

Britain. Faron trusts that its positive development will continue and lead to

a sales license application for the drug around 2012.

Last year, five new life science companies started operating in Turku

Science Park.

New openings in research

The Commission of the European Union granted a sum exceeding EUR

900,000 to the Turku-based national PET Centre (Positron Emission Tomography) for Alzheimer’s research. The project partner in Turku is

the PET Centre, whose activities are based on an agreement between the

University of Turku, Åbo Akademi University and Turku University Hospital. Research in Alzheimer’s is a project involving 19 European re-

search centres from 15 countries under the 7th EU Framework Programme

for Research. The budget of this five-year project totals EUR 14.6 million.

In the autumn, the Technical Research Centre of Finland VTT and the

University of Turku entered into a partnership agreement aimed to intensify

research co-operation in pharmaceutical development that began in 2002.

The agreement emphasises pharmaceutical biotechnology research. The

particular aims include utilising genome data for studying the underlying

mechanism of breast and prostate cancers, and the development of new

diagnostics and therapies. The researchers of VTT and Turku University

have made a discovery of international significance helping to clarify and

give insight into the cancer mechanism.

The Turku Centre for Biotechnology TCB, an institute of the University

of Turku and Åbo Akademi University, raised its international profile as

experts of microchip technology. Agilent Technologies Inc., a leading

supplier of microchip-based genome research solutions, awarded TCB its

”Certified Service Provider” status, the first laboratory in the Nordic coun-

tries to receive this status.

Initiated by the Hospital District, the establishment of a national Brain

Trauma Centre concentrating on traumatic brain injuries is a significant

new opening. The Centre will rely on the work of a research team that

has been active in Turku for some 12 years, and it will develop imaging,

organise epidemiological follow-up and seek new therapies for the acute

treatment of brain trauma with the aim of protecting the brain or promot-

ing recovery. In addition, the centre will develop biomarkers for brain tis-

sue trauma. The Brain Trauma Centre will be operating from the facilities

of the Turku University Hospital in the new T-hospital, which also houses a

concentration of emergency medical services for Turku and the surround-

ing areas. Work with patients will begin in autumn 2011, while training

and research activities are likely to start in 2010, provided that financing

for the project will be in place.

The research units of the local universities (Turku Centre for Disease Modelling TCDM, Clinical Research Centre CRC and Biomaterials Centre BMC) have helped to disambiguate the infrastructure of research

and service activities of the sector in Turku. They now need to offer more

of the type of content and capacity that both life science businesses based

in Turku and international giants are willing to purchase. In practice, reach-

ing the targets will mean hiring full-time staff to market their research and

expertise. Making the new research units work full scale is not something

that the existing staff can do as a sideline.

The outlook for the life sciences sector as a whole remains rather posi-

tive, but as a consequence of the international financial crisis, obtaining

risk capital for venture capitalists in the sector and consequently for life

science businesses is a challenge. Long-term financing is a prerequisite

for business growth and product development in life sciences. The role of

public research funding is highlighted in balancing out the unfavourable

economic cycle.

888

In 2008, the number of branches of ICT sector companies in the

country climbed up to 1,600. Outside the capital area, the region of

Turku and Salo still comprises the most potent concentration of ICT

sector expertise in Finland. The hub of science and research is in

Turku Science Park.

However, the effects of the looming recession were also reflected in the

ICT sector. In November, Nokia Corp. announced the closure of their

Turku unit with 220 employees. The majority of these employees moved

on to work in Salo, however, and as a result there was no essential change

in the situation in Southwest Finland. On the other hand, it was good news

for Turku when STMicroelectronics R&D Ltd, a subsidiary of one of the

largest microelectronics application developers globally (the mother com-

pany is currently known as ST-Ericsson Ltd) located its R&D activities in

Turku Science Park in the spring.

The profile of the ICT sector in the region was also raised by the FinLab cluster, led by the DTV Group in Turku University’s Department of

Information Technology, which is committed to promoting the techno-

logical development of the sector in Finland. This project, amounting to

some EUR 5.2 million was launched in autumn 2008, and it proceeds

in close-knit partnership with companies, Strategic Centres for Science,

Applied ICT in Southwest Finland

8 A look at the main business areas

9A look at the main business areas

Technology and Innovation, Centres of Expertise and regional development

organisations.

New markets and capital injections

A number of companies in the region released news of globalisation

projects and new capital injections. The Salo-based Nordic ID, a leading

manufacturer of handheld computers with UHF RFID readers in Europe, an-

nounced the expansion of their activities into Russia. Axel Technologies Oy, which specialises in wireless television technology in Turku, acquired

an agent in the growing market in Hong Kong. In addition, the company

raked in a capital injection totalling EUR 2.4 million. Turku-based IT Mill Ltd also secured an equity investment with Michael ”Monty” Widenius

joining the company as a new shareholder. Widenius is particularly well-

known as the founder of MySQL, a company that was sold to the American

Sun Microsystems for USD 1 billion in January 2008.

In the autumn, the language technology company Lingsoft Inc. an-

nounced a significant translation services contract with the Parliament

of the European Union. The ”One-Hour Words” platform developed by

Lingsoft also won the Edelcrantz Challenge innovation award conferred

by the Foundation for New Technology.

Lingsoft has also been involved in the Louhi project as an active partner.

This health care and wellbeing technology project seeks tools suitable

for analysing the contents of text format data, such as patient documen-

tation. The project culminated in the establishment of a consortium for

information and language technology for health information and communication (IKITIK), which aims at implementing commercialis-

able, industry grade applications for the health care sector in particular.

Sanako Corp., which specialises in developing learning technology, con-

tinued its conquest of the world. In November, the company announced

the opening of new offices in Beijing, China. Over 95% of the company’s

products are exported to destinations in Europe, Canada, Peru, Russia,

China, Libya and Kuwait. Similar to Lingsoft Inc., Sanako Corp. works in

close co-operation with Microsoft Corporation and has achieved the

highest level (Gold Certified Partner) possible in Microsoft’s partner pro-

gramme.

Miratel Oy, a company specialising in health care sector communication

and alarm systems, also has strong growth in global markets in its sights.

The company launched a EUR 1.8 million globalisation project partly fi-

nanced by the Finnish Funding Agency for Technology and Innovation,

Tekes. Miratel aims at a four-fold turnover and two-fold number of em-

ployees by 2015.

Technological expertise from Turku has also made its mark in the Finnish

Parliament, where a public address system supplied by Audico Systems Ltd was introduced in the beginning of the autumn session. The company,

which is the market leader in Finland, develops, plans and manufactures

public address, voice evacuation and information systems.

Turku Science Park Ltd together with its partners has been actively in-

volved in information society development at the national level. The target

of extending fast broadband connections to all areas of the country was

published by the Minister of Communications, Suvi Lindén, in the spring.

The broadband working group put together by the Regional Council of

Southwest Finland and Turku Science Park Ltd has contributed to achiev-

ing this target.

The local universities have played an active role in the setting up of

Strategic Centres for Science, Technology and Innovation (SCSTI’s).

In February 2008, Tivit Ltd was established as the active operator in

the ICT cluster. The regional shareholders in Tivit Ltd are Åbo Akademi University and Turku Science Park Ltd. A partnership agreement be-

tween Turku University of Applied Sciences with Turku Centre for Computer Science (TUCS), which is vital in terms of research, proceed-

ed to the approvals stage.

The area hosted many international scientific conferences in the sector,

one of the largest being Compsac 2008, which brought together 490 spe-

cialists from scientific communities and companies representing 40 dif-

ferent countries. Other significant international gatherings included the ICT

sector Turku-Vietnam co-operation seminar “Emerging Tiger - Business

Opportunities in Vietnam”.

The Information Processing Association in Southwest Finland

(VSTKY) continued as the key third-sector partner to the industry after

41 years of work in this area. The Association organised 12 co-operation

events on various levels relevant to topical phenomena in the sector, such

as supervision in the information society.

Despite the effects of the economic downturn, the region offers strong

potential for growth in business and research activities. To make full use

of this potential, it is vital to reach a balance between business needs

and the opportunity for education and training. The companies and re-

search institutes in the region also need to connect better than they have

in the past. This is the challenge that Turku Science Park Ltd will rise to

in 2009.

10

In 2008, BioTurku® focused on supporting regional projects, promo-

ting co-operation between the life sciences and other industries and

improving the business environment of companies.

New centres made headway

Turku Bioimaging, a multidisciplinary working community of bioima-

ging research and teaching that was established by researchers in the

University of Turku and Åbo Akademi University, makes efficient use of the

new imaging technologies in everything from basic research to clinical

trials. The Commission of the European Union granted EUR 900,000 to the

national PET Centre, as jointly established by the University of Turku, Åbo

Akademi University and Turku University Hospital, for Alzheimer’s research.

This project aims at examining the use of nanoparticles in the diagnostics

and treatment of the disease. As a marketing tool, BioTurku produced a

brochure showcasing the versatile imaging expertise in the region.

To support the commercialisation and sale of services of Turku University’s Centre for Disease Modelling, BioTurku assisted the

Centre in producing its marketing brochures and mapping tools of opti-

cal imaging. To broadcast the expert knowledge of the organic chemistry

scientists in the University of Turku and Åbo Akademi University, a busi-

ness seminar was organised and marketing material produced.

In the autumn, BioTurku supported the drafting of a business plan for

the National Brain Trauma Centre launched by the Hospital District of Southwest Finland. The aim is to set up a centre focusing on the

treatment of and research in traumatic brain injuries that will be unique

in Europe. BioTurku also funded the creation of an operating model for

the joint Clinical Research Centre CRC of the Hospital District and

University of Turku.

BioTurku®

10 BioTurku®

11

started between Turku Science Park Ltd and Karolinska Institutet. In

practice, this co-operation in seeking out target companies will be imple-

mented in particular by Biocelex Ltd, a joint venture of Turku Science

Park Ltd and Karolinska Institutets Holding Ab.

Through ScanBalt, a life sciences co-operation network active on the

Baltic rim, BioTurku has been involved in starting international Masters’

and Doctoral programmes.

Turku Science Park Ltd also coordinates the national HealthBIO, a Centre

of Expertise Programme for the Biotech Competence Cluster. Under the

auspices of HealthBIO, a two-day annual seminar was held in the area,

probably ranking as the largest event of the year in Finland bringing life

science companies together. The most important activities of HealthBIO

included active international promotion of the Finnish biotech competen-

ce, efforts to set up a national network of clinical trials, as well as the

Pharmaceutical Gateway China – Finland/Europe project that looks

for new market openings and co-operation opportunities in China.

BioTurku®

Cross-sectoral co-operation

BioTurku and the Functional Foods Forum of the University of Turku

together strove to promote interdisciplinary co-operation between actors

in the pharmaceutical sector and food industry. The ”Food, host & defen-

ce” seminar in late winter and the Functional Foods seminar in the spring

attracted nearly 200 participants.

The profile of systems biology expertise in the region of Turku was raised

by taking part in the organisation of four interdisciplinary IT seminars

(Informatics in Biotechnology, the NEXT 2008 conference, closing seminar

of the Louhi project and the Bioinformatics Forum).

The cancer forum held late in 2008 sought a new type of patient-oriented

approach. This seminar, titled ”From targets and research to cancer treat-

ment”, counted not only researchers but also businesses among its par-

ticipants and, unusually, the targeting of cancer research and treatment

was examined from the perspective of patient needs. Ideas generated in

this seminar will be implemented during 2009.

Promoting international business

BioTurku took part in the world’s foremost life sciences event, BIO2008

held in the USA, once again as part of a joint Scandinavian pavilion. This

annual event is the most important one in the sector, with over 20,000

participants. The BioTurku concept and expertise of the cluster at large

were promoted not only at the stand but also by approaching potential

investors and customers directly. BioTurku also took part in partnering

events held in Copenhagen and Heidelberg in 2008. As a result of active

customer solicitation, two large companies – Merck and Eli Lilly – were

persuaded to visit Turku to vet the companies and scientific expertise in

the region. Additionally, BioTurku received delegations from Italy, France

and South Africa who were interested in the service range of businesses

and research units in our area, as well as in co-operation projects with

companies and scientists in their own countries.

BioTurku was responsible for coordinating a large-scale globalisation

project of the Finnish life science and pharmaceuticals services sector.

This project, which was financed by the Finnish Funding Agency for Technology and Innovation, Tekes, has essentially helped service

companies in the sector to develop their international activities and sales,

also in Turku. The final seminar took place in Turku in the spring. With its

major impact on the companies’ business activities, this event attracted

high visibility in the media.

Tailored coaching for businesses and research units in the area was based

on verified needs and unit demand. It concentrated on securing financing

and promoting internationalisation. Participants in this two-part internatio-

nal partnering and presentation coaching course mainly included compa-

nies, with life science researchers in training relevant to EU projects.

International co-operation between biocentres took major steps forward.

In the summer, Turku Science Park Ltd and the German Technologiepark Heidelberg GmbH concluded a co-operation agreement focusing on

biotechnology which aims at an exchange of information with a view to

commercialising scientific innovations and the internationalisation of new

enterprises in the business incubator.

Towards the end of the year, Turku Science Park Ltd made an invest-

ment amounting to approx. EUR 2 million in the Swedish Karolinska Development fund, which makes equity investments in life science sec-

tor start-ups. This investment further solidifies the strategic co-operation

12

CASE: All is well in HyTest

Located in Turku Science Park, HyTest Ltd is one of the world’s lead-

ing suppliers of raw materials for the diagnostics industry. Its prod-

ucts are sold to 41 countries on six continents.

HyTest Ltd, which is based in Turku and Moscow, produces monoclonal

antibodies and antigens for diagnostics industry raw materials, mainly to

be used as key components in laboratory tests of various types. The com-

pany has become the international market leader as a manufacturer of

certain immunological reagents, such as cardiac markers and influenza

antibodies. The primary customers of HyTest include diagnostics sector

manufacturing companies and international research teams.

A history of 15 years

“In the early days, the establishment of our company was based on co-op-

eration between the Universities of Turku and Moscow, and this academic

co-operation remains important for our activities today. Aboatech Oy, an

enterprise set up to commercialise the University’s research outcomes op-

erational in the early phases of Turku Science Park’s development, played

an important role in launching the company in 1994. Consequently, we

have continued to operate in the area of Turku Science Park, going through

nearly all technology buildings from BioCity via EuroCity and PharmaCity

to the current Intelligate building,” explains HyTest Sales Manager Jukka Lehikoinen.

HyTest currently employs 30 people, one half of whom are in Moscow. The

management, sales and marketing activities of the company, as well as

part of product development and production are located in Turku, while the

other part of production and product development activities is in Moscow.

“The research personnel of an extremely high standard available in

Moscow has been a major advantage for us. Scientific research and pub-

lishing its results in esteemed forums has gone hand in hand with product

development in our company,” says Lehikoinen.

In recent years, HyTest has further increased its patent portfolio and dra-

matically expanded its product range e.g. into influenza diagnostics. It has

now emerged as one of the leading suppliers of influenza antibodies in the

world. In product development, the strongest investments continue to be

channelled to the company’s forte, diagnostics of cardiac insufficiency.

HyTest in 2008

HyTest’s turnover for the tax year closing at the end of October was

EUR 7.4 million, showing a growth of 19% on the previous year. Profits

amounted to nearly EUR 2.2 million, and the share of exports in the sales

was 97%. The United States remains the company’s largest individual

market with 58% of sales. Other important market areas include the EU

countries (Germany 5%, Great Britain 10%, France 4% and Finland 3%)

and Asia (Japan 4% and Korea 3%).

HyTest has maintained a sound level of profitability despite its strong

investments in product development and the management of customer

processes: the operating profit percentage was 29%. Thanks to its high

profitability, HyTest has been able to continuously expand its activities as

supported by cash flow financing.

www.hytest.fi

12 BioTurku®

For more information please contact:

Turku Science Park Ltd / BioTurku Department, Director Tero Piispanen, Tel: +358 (0)40 078 1683

13

Biocelex Ltd was established in July 2007 and started operation on 1st

September 2007. At the end of the year, the company’s shareholders in-

cluded Turku Science Park Ltd (59%), Karolinska Institutet Holding AB

(25%), Turun Seudun Osuuspankki (10%) and company management

(6%).

Since starting its operations, the company has focused on establishing

itself. The foundation of the company’s business consists of seeking out

innovations in Finland, selling business development services and, for

the next three years, coordination of the Pharma programme for the Finnish Funding Agency for Technology and Innovation, Tekes. At

the end of the tax year, the company had 3 employees.

Development of innovations

The innovation development activities are comprised of finding ideas and

potential innovations in the life sciences sector in Southwest Finland and

the whole country, preliminary assessment of their commercialisation po-

tential as well as putting forward potential innovations for the evaluation

process of the Karolinska Institutet.

In its own nationwide activities in Finland, Biocelex Ltd applies Karolins-ka Institutet Innovations AB’s innovation development model. This

model has been modified to be suitable for the Finnish life science sector,

and during the operating year, the model has been efficiently implemented

among potential innovation actors.

During the year, Biocelex Ltd concluded a partnership agreement to seek

out innovations with the Karolinska Development AB Fund (“Turku Deal

Flow Agreement”).

Business development services

Aspects of business development include strategic planning, commerciali-

sation, internationalisation and the financing process. Biocelex Ltd mainly

sells business development services to Finnish actors in the life sciences

sector. Potential customers include companies in the early development

and growth phase, in addition to more established and larger players in

the field.

www.biocelex.fi

For more information please contact:

Biocelex Ltd, CEO Kai Lahtonen, Tel. +358 (0) 50 689 48

Biocelex Ltd

Biocelex Ltd 13

1414

Analysis and planning efforts in early 2008 led to a refocusing of

Turku Science Park Ltd’s work targeting the ICT industry. In a survey

of the current situation in the sector, ICT businesses and researchers

were asked their perspective regarding their development needs and

intercompany activities. This survey was conducted in co-operation

with Salo region.

In Turku, ICT has close associations with health care and wellbeing, bio-

technology, speech and language technology and the marine and metal

industries. These sectors can boast outstanding expertise and a high

standard of education and training. Before the recession, availability of

labour was a factor limiting enterprise growth.

The survey revealed that companies would like support from high-quality

experts in their internationalisation and product development activities. In

order to take up this challenge, as well as the financing needs of compa-

nies in the ICT sector, Turku Science Park Ltd together with an experienced

team of experts launched the preparatory work for a new business devel-

opment company that would operate on a commercial basis.

The businesses hoped for external financing and specialist support in order

to develop their activities. In addition to financing directed at R&D, support

is needed in business development and internationalisation. As a result

of the spring 2008 survey, potential R&D projects emerged, and a result-

ing project that promotes data management in the marine cluster has

already been launched. This has strong links to the Southwest Finland Information Society Programme implemented under the leadership of

the Regional Council of Southwest Finland and Turku Science Park

Ltd. The implementation of this programme was based on preparing de-

velopment projects and influencing national broadband policies.

Applied ICT and development projects

Applied ICT and development projects

15Applied ICT and development projects

Lingsoft Inc. is an international, full-service language company,

whose product range includes translations and glossaries, writing

and reading tools, search services, text mining, teaching and speech

applications, as well as eBooks. Lingsoft has reaped success in EU

bidding competitions and domestic innovation awards alike. The

company is actively involved in the Science Park ICT cluster and has

branches in Turku, Helsinki and Kouvola.

From Agricola to the mobile book

Lingsoft Inc.’s ”One-Hour Words” publication platform was the winner

in the Edelcrantz Challenge 2008 innovation awards. The award was

granted by the Foundation for New Technology under the theme of

“Novel technical solutions to improve access to cultural services.” The

multi-channel One-Hour Words is a publication tool that meets the criteria

of modern communication by combining the management of electronic

data, mobility and user-friendliness.

The One-Hour Words platform puts together integrated marketing of con-

tent and the advantages of printed and electronic publication. Under this

concept, the same content can be published as a small printed booklet,

an eBook available online and a mobile book that can be downloaded to a

mobile phone. Lingsoft can also rapidly produce an audio book as synthe-

tic speech from the same material. No wonder Lingsoft’s application has

been used to combine these two worlds and to celebrate new technology

in the anniversary year of Mikael Agricola, the creator of Finnish stan-

dard language.

The EU into Finnish

Lingsoft has established its position as a supplier of translations for the

EU and public administration. In the summer, the company was awarded

a 4-year translation service contract with the EU Parliament at an es-

timated value of EUR 3.9 million. This contract covers translation servi-

ces from 16 official languages of the European Union into Finnish. These

services concern the translation, editing and proofreading of documents

pertaining to the activities of the Parliament and other European Union in-

stitutions. Additionally, Lingsoft continued its co-operation with Microsoft Corporation by producing a Greenlandic proofreader for the Office soft-

ware.

“We have contracts for translation services with the European Commission,

the Translation Centre of the European Union institutions and several

Ministries and agencies in Finland. Our EU proofreader and our new, effi-

cient project management system contribute to the successful manage-

ment of these two key customerships,” says Lingsoft’s Managing Director,

Juhani Reiman.

www.lingsoft.fi

After the applications designed for Agricola’s anniversary year celebra-

tions, Lingsoft published an example glossary entitled ”Turku in One Hour

– a guide to being a local” as part of their One-Hour Words series.

CASE: A successful year for Lingsoft

The reporting year saw the establishment of a consortium for informa-tion and language technology (IKITIK) aiming to make Turku the lead-

ing actor in pharmaceutical and nursing related language technology by

2015. In the field of health care and wellbeing technology, the three-year

Tekes projects Management of Medication Information and Louhi were concluded, and as a new initiative, the MyWellbeing project was

set up, which aims at empowering citizens as customers of wellbeing

services.

For more than 10 years now, Turku Science Park Ltd has directed and im-

plemented R&D projects funded under the European Union Framework Programmes for Research. The successfully concluded Connect project, the value of which was EUR 3.2 million, was a continuation of

this work. This project set out to improve the user safety of mobile applica-

tions. Turku Science Park Ltd coordinated this project, the participants of

which included TeleAtlas, Siemens, Mawell Oy and Telecom Italia.

Inspired by the positive results of previous years, work to improve the IT

capacities of SME’s continued. The eLive project will provide consulta-

tion and assistance in making better use of information systems to 200

SME’s in Southwest Finland. The majority of the costs incurred will be

covered by European Union funding.

Despite reduced operating resources, a number of new initiatives came up

in 2008. Based on feedback from companies in the area, services will be

concentrated around the themes regarded as most important.

16

In the Enterprise ICT development project, 140 SME’s received assis-

tance and recommendations to help them develop the IT aspects of

their operations. This service was coordinated in Turku Science Park

Ltd under the leadership of Kalle Luhtinen.

The preliminary survey LogOn Turus conducted by the Turku School of

Economics revealed that the majority of SME’s make little or no use of in-

formation technology in their business operations. It was thus established

that the SME’s have a genuine need for assistance in integrating infor-

mation technology and business. Once Turku Science Park Ltd became

a member in the national electronic business development network

(eLive), the best practices from other parts of the country could also be

applied in Southwest Finland.

Suggested improvements for each company

Following a bidding competition, five consultants were selected to provide

the Enterprise ICT services. The service, which included one day of the

consultant’s time, consisted of a survey of the company’s hardware and

software and an analysis of what these were used for. Particular attention

was focused on the interfaces of information technology and business

activities and on how the information technology served employees in

their everyday work processes.

Based on these observations, the consultant drew up a report containing

suggested improvements in the use of IT in the company. An essential

feature was that the development targets were tailored to each individual

company, after which they were discussed with the entrepreneur in order

to eliminate any ambiguity. The areas to develop were varied: they in-

cluded wireless solutions, information security, management of customer

data, electronic invoicing, websites, and hardware and software procu-

rements.

Public funding made the consultant services accessible to even the

smallest enterprises, as the price paid by the company for the package

was as little as EUR 100. A total of 140 companies in a variety of sectors

took up the service. The Enterprise ICT project was funded by the EU, the

City of Turku, the Regional Centre Programme, the Centre of Expertise

Programme and Turun Seudun Osuuspankki, a local bank.

Further assistance on the wish list

Feedback from the businesses that received consultant services showed

that overall they were highly satisfied with the IT assistance. Many of them

wished, however, for further consultations and a more in-depth analysis of

the problems. In other words, companies still experience a need to make

better use of IT, and encouraged by the positive feedback, two similar ser-

CASE: Practical IT assistance for SME’s

vices targeting SME’s were launched in the beginning of 2009: eLive and

the ICT gateway, which was later commercialised as TUTKA™. In both

of these projects, Turku Science Park Ltd has enlisted the co-operation the

University of Turku and the Turku University of Applied Sciences, among

others.

Acentra and Lingsoft as examples

The Enterprise ICT project sparked a co-operation project between Acentra Oy, an enterprise offering software services, and Lingsoft Inc., a supplier of language technology services. It started with Acentra sur-

veying the status and problems of Lingsoft Inc.’s operative systems and

offering their suggestions concerning the automation of cross-system bu-

siness processes.

In the next phase, Acentra was involved in developing the automation

of the eBook publication process of Ellibs Ltd, a subsidiary of Lingsoft

Inc. Subsequently, Acentra and Lingsoft continued their co-operation in

product development. Acentra has been involved in building a SaaS lan-

guage service platform for Lingsoft’s language technology products. This

co-operation continues further, and its spin-offs include a number of sub-

projects and product ideas.

Applied ICT and development projects

For more information please contact: Turku Science Park Ltd / Applied ICT and development projects, Director Sirpa Simola, Tel: +358 (0) 50 557 0031

1717Applied ICT and development projects

TUTKATM – ensuring continuity

The TUTKATM service brings to daylight information system prob-

lems and ensures the continuity of enterprises. The ensuing report

highlights any risks and bottlenecks in the activities and gives the

entrepreneur a minimum of three recommendations on how to

make the business more efficient. The cost of this service to the

company is no more than EUR 200, as the EU pays the rest, and

Turku Science Park Ltd handles the associated bureaucracy.

18 Centre of Expertise

Southwest Finland Centre of Expertise

The Centre of Expertise Programme in Southwest Finland is one of

the key elements in implementing the expertise and industrial strategy of

the region and the City of Turku. The total budget of this programme cover-

ing five sectors exceeded EUR 2 million last year.

Following a Government decision in 2006, the fields of expertise in

Southwest Finland make up a total of 5 clusters. Turku Science Park Ltd

bears the regional responsibility for the relevant activities.

The main actor in the HealthBIO cluster is Turku Science Park Ltd, which

also is responsible for national coordination. The national coordination

and regional activities of the Maritime cluster are ensured by Machine Technology Centre Turku. The responsibility for leading the Tourism and Experience Management cluster is assumed by the Town of

Rovaniemi, while the regional actor is Turku Touring. The expertise of the

Food Development cluster focuses in the Functional Foods Forum in the University of Turku, with overall coordination ensured by Seinäjoki.

In the Forest Industry Future cluster, Turku Science Park is responsible

for new materials and printing surfaces. The coordination of this cluster is

managed from Lappeenranta.

In a national evaluation of activities in 2008 and plans for 2009, the

projects of the region were highly successful. The most positive feedback

from the Ministry of Employment and the Economy concerning the devel-

opment of activities in the area was received by the Food Development

and Tourism clusters. The HealthBIO network has traditionally been one

of the best performers in the country. Thanks to the shipyard and its hun-

dreds of subcontractors, the Maritime cluster remains highly important

regionally. The regional activities of the Forest Industry Future cluster lean

on the convincing research expertise of the universities. Materials, new

printing surfaces and smart packaging applications will soon be part of

our everyday lives.

As to the future of the Centre of Expertise Programme, a strong mandate

and the projected financial resources were granted for it by the Ministry

in 2008.

International activities

In international activities, the COFISA programme (Cooperative

Framework on Innovation Systems between Finland and South Africa) also

continues to play a major role. The role of Turku Science Park Ltd is high-

lighted in the last period of this programme ending in 2009. A survey was

conducted on applying the Centre of Expertise Programme in the Cape

Town area, where industries and research units focus not only on bio-

technology and medical expertise, but also on ICT applications and boat

building.

In the annual congress of the International Association of Science Parks (IASP) in Johannesburg, reports were heard on the implementati-

on and possibilities of the Centre of Expertise Programme on the African

continent.

Based on these reports, a South African application of the Centre of

Expertise Programme titled the ”Activator” was launched in the capital

area of the Republic of South Africa (Pretoria-Johannesburg).

As regards new EU member states, co-operation was established in par-

ticular with Slovakia. A number of seminars and events were organised in

Bratislava, in which the Finnish national innovation programme and the

know-how of the company were presented. These activities created plen-

ty of publicity in the Euractive website of the European Union and in the

Eastern European media.

The company’s life science profile was improved with a co-operation ag-

reement concluded with Heidelberg Technologiepark, and negotiations

were initiated on contract-based expansion of international activities with

the Dutch.

The company’s own international connections were supported by the

launching of Enterprise Europe, a network of networks administrated by

the European Union, which contains the contact details of more than 6,000

innovation developers all over Europe.

Centre of Expertise and international activities

Saarinen: Co-operation key to Finland’s innovation excellence Published: Wednesday 30 January 2008

Niilo Tapani Saarinen is the vice-president

of the Science & Technology Park in Tur-

ku, Finland. He was interviewed by Mano Strauch of EurActiv

Slovakia.

A special research and innovation co-operation model bringing

together the government, companies and universities as well

as some 30 science parks serving as the interface between in-

dustry and universities are the main reasons behind Finland’s ex-

cellent track record on science and innovation, argues a repre-

sentative of one of the science parks

http://www.euractiv.com/en/science/saarinen-operation-key-finland-innovation-excellence/article-169953

19

CASE: Fresh fish from smart packaging

The product range of our forest industry already includes many types of

packaging and labels, but their degree of processing can be improved, for

example by developing the materials and equipping the packaging with

many types of ’intelligence’. The actors of the Forest Industry Future and Food Development clusters, which are part of the Southwest Finland Centre of Expertise Programme, brought together seafood

dealers and scientific experts to discuss indicators of freshness and the

opportunities for smart packaging in fish products. Inspired by the event,

preparations started for a pilot project.

Logistic chain vital for fish products

As a food that spoils easily, great care should be taken to ensure that fish

is stored at a temperature below +3 °C throughout the entire production

chain, from the fisherman to the consumer. This is necessary to stop harm-

ful bacteria and other micro-organisms from propagating. Maintaining the

cold chain is critical for the microbiological quality of fish products, alt-

hough it is the weakest link in the logistic chain. Freshness indicators in

the packaging would enable product quality monitoring during all stages

of transport, in the shop and even at home in the consumer’s fridge.

What can be done, what is worth doing

Freshness indicators could be devised by with radio frequency remote

identification (RFID) technology, optical package guards or other sensors,

for example.

Large wholesale batches could support the slightly higher unit cost of a

shelf life guard, but the devices designed for individual consumer packa-

ges would need to be very inexpensive. On the other hand, the consumer

is likely to be willing to pay for a smart package if the benefits are readily

apparent.

It is possible to create an optical package guard by printing a sensor on

the surface of the film or paper. In practice, the guard could for example be

a sticker on the surface of the package that changes colour as it detects

a change in the quantity it measures. The package guard would be useful

not only for the consumer but also the retail outlet, making it easier to

monitor the quality of the products they sell.

A joint research project

In addition to scientists and developers, 14 representatives of the fish

industry took part in the discussion and brainstorming event, including

representatives from outside Southwest Finland. The ensuing discussions

were extremely lively and productive. The event also reached its objec-

tives in the sense that a consortium of three companies and research

parties has since started developing a joint pilot project plan.

The event was organised in co-operation with the Forest Industry Future

and Food Development clusters, which are part of the Centre of Expertise

Programme. The Game and Fisheries Research Institute, Åbo Akademi University’s Centre for Functional Materials, University of Turku’s Functional Foods Forum, VTT Technical Research Centre of Finland, the Association of Packaging Technology and Research

and the Pro Fish Association all lent their expertise to the planning of

the event.

19Centre of Expertise

20 Centre of Expertise

Preference mapping is a tool for accurately detecting which sensory pro-

perties of foods have the strongest impact on consumer preferences, as

based on scientific evidence. Is it the texture of the product in your mouth,

its sweetness or perhaps the colour that clinches it?

The product development departments no longer need to settle for

consumer comments like ”this tastes bad” or ”I prefer the other one”.

Professionally mapped differences in preferences help to target product

development more accurately, with reliable information on which proper-

ties of the product need to be developed and in which direction.

Commercialised by the Centre of Expertise

The Functional Foods Forum (FFF), which operates as a separate unit

of the University of Turku, and Foodwest Ltd based in Seinäjoki have

commercialised Preference Mapping. The service they offer combines

product property profiles produced by a trained panel, and consumer

preferences determined by consumer testing. The expertise in statistical

analysis and the training of panels and evaluations are provided by the

FFF, and the consumer testing by Foodwest Ltd. Both are actors in the

Food Development cluster that is part of the Centre of Expertise Programme.

“We are transferring cutting-edge expertise from the University to busi-

nesses. Preference mapping is a clearly customer-oriented research ser-

vice product, which meets the market research needs of the food industry

companies. The service is ideal for many situations, as it can be applied to

the analysis of the existing product range and product development ver-

sions, and these can be compared to competing products. The results may

also generate ideas for new products,” says Coordinator Saara Lundén.

http://fff.utu.fiwww.elintarvikekehitys.fiwww.oske.net

For more information please contact: Turku Science Park Ltd / Centre of Expertise and International activities, Director N.Tapani Saarinen, Tel: +358 (0)40 052 5308

20

CASE: On the tip of your tongue:What really makes a product pleasant?

21

CASE: A network provides internationalisation tools

Centre of Expertise

Turku Science Park Ltd is active in the Enterprise Europe Network,

the largest network providing expertise and services to businesses in

Europe.

The Enterprise Europe Network helps SME’s in the various stages of EU

internal market, internationalisation and technology transfer projects. The

network also provides information on the EU Framework Programme for Research. The network offers its services to SME’s free of charge on

the one-stop-shop principle.

This network of experts supported by the European Commission ope-

rates in more than 40 countries, some outside EU borders. The members

of the network comprise over 600 organisations with more than 4,000

experienced specialists who can help enterprises find new business

opportunities. The activities of this network are part of the Framework Programme for Competitiveness and Innovation.

The Finnish national network has eight partners, one of which is Turku

Science Park Ltd. The role of administrative co-ordinator is assumed by

the Ministry of Employment and the Economy, and the services of the net-

work are divided into three parts: advisory services, technology services

and disseminating information on EU programmes.

Turku Science Park Ltd has assisted businesses, universities and research

institutes in finding suitable partners for international technology transfer

projects, as well as organised business contact events and visits to vario-

us European countries.

While this network and its predecessors have been in operation, Turku

Science Park Ltd has got more than 20 technology transfer projects up and

running in the sectors of biotechnology, IT, space and security technology.

For example, Turku Science Park Oy and the network helped Planmed Oy, manufacturer of mammography equipment, get in touch with Oxford Instruments Analytical Ltd, which produces new X-ray detectors. This

company together with the VTT Technical Research Centre of Finland

provided Planmed Oy with a product development partner for creating new

technical solutions.

www.yrityssuomi.fi/yrityseurooppa

22

Turku Science Park’s Business Development is tasked with developing

new growth enterprises based on expertise and technology. The services

include the evaluation of new business plans, pre-incubator services pre-

paratory to business start-up and incubator services for the early stages

of the enterprise. The range of services offered by Turku Science Park’s

Business Development include premises and front desk services in two

incubator units: the BioIncubator and DIO Business Centre.

In 2008, 44 business ideas as potential new incubator companies were

assessed. The number of new pre-incubator projects launched was 14, of

which 7 were in the ICT, 4 in the life sciences and 3 in other sectors.

A total of 8 new incubator companies were started, of which 3 in the ICT,

3 in life sciences and 2 in other fields, while 4 businesses grew out from

the incubator stage. During the year, the incubator fostered a total of 26

start-ups.

Securing financing, successful product development and opening up

markets are some of the key objectives in the incubator stage. In these

respects, the incubator companies showed a positive development. More

than Eur 4 million of outside financing was obtained, of which approx. Eur

1.2 million were capital injections on equity terms to 5 companies.

The incubator stage companies produced a turnover of nearly Eur 5 million

and created 80 jobs. Co-operation with the local universities plays a sig-

nificant role in business incubator activities. The TULI project (business from research), which started at the end of 2007, continued seeking and

refining ideas from the academic circles throughout the year. The out-

comes of these activities include the progress of 6 ideas originating from

Business Development

Business Development22

23

research into the pre-incubator stage and the start-up of one incubator

company.

Businesses thrive on networking. Key partners include other providers of

expert services, public and private finance providers, such as venture ca-

pitalists, other technology centres, universities and universities of applied

sciences as well as public parties providing business services.

The activities in 2008 included the administration of Finnish Funding

Agency for Technology and Innovation, Tekes’ Yrke business develop-

ment funds earmarked for third-party expert services purchased for incu-

bator companies, regional coordination of the Venture Cup business plan

competition and FinproLink co-operation supporting the internationa-

lisation of businesses. Business incubator activities were funded by the

Turku Region Development Centre and Tekes.

The products of MedBase Ltd, one of Turku Science Park’s incubator

companies, have essentially conquered the Finnish market, and ne-

gotiations on the first international partnership agreements are well

under way.

Medbase Ltd, which has its offices in Turku city centre, was established

by experts of pharmacotherapeutics, and produces medical databases for

health care professionals. Versions intended for the general public are also

under way.

“The flagship of our products, the SFINX drug-drug interaction database,

has been sold to almost every possible customer in Finland. We now have

to reach out to the international market, and this is where the business

incubator is providing us with significant assistance,” says Mr Kari Laine,

the Managing Director and main shareholder of the company.

With support from the business incubator, Medbase has e.g. commissio-

ned market surveys in Central and Eastern European countries and suc-

cessfully obtained financing for these surveys.

Widening product range

The SFINX database providing information on drug-drug interaction was

originally developed in English, which is why it will be easy to localise for

new markets.

“Introducing a new linguistic area will perhaps take a few person months.

The range of drugs in use naturally varies slightly from one country to

another, which also needs to be taken in consideration,” says Laine.

Business Development

CASE: Rapid internationalisation forincubator company Medbase

In addition to SFINX, Medbase’s product range also includes the Gravbase

and Lactbase databases, which contain comprehensive information on the

safety of drugs during pregnancy and breast-feeding. New databases are

constantly being developed, and a support database that takes into ac-

count such matters as the effects of kidney insufficiency on drug dosage

will soon be available.

In addition to in-house expertise, the company works with a number of

Finnish and overseas partners e.g. in Helsinki and Stockholm, ensuring

high quality medical content and frequent and regular updates.

Expert owners

The owners of Medbase Ltd are two professionals of pharmacothera-

peutics, who also work in the company.

“The ownership base is ideal for us. We know what we produce and sell,”

explains Laine.

“We have even developed some of the software needed for producing da-

tabases ourselves, while some of this work has been outsourced to IT pro-

fessionals. In internationalisation, it will similarly be crucial for us to find

a partner in the target country that already has contacts with health care

professionals specifically, rather than the general IT product market.”

“At the moment, we have three part-time employees in addition to the

owners working in the company, and I am sure more will be needed in

the future,” he adds.

www.medbase.fi

Business Development

24 Business Development

Finland was the first country in Europe to introduce a digital TV broad-

casting network, which accelerated the development and testing of

new technical solutions here. Turku Science Park’s business incuba-

tor has turned out at least four high-tech companies in the digital TV

sector. These companies profit not only from the coaching offered by

the incubator but also from close-knit mutual co-operation.

The field of enterprising is in a continuous state of flux. The patterns are

changing: mergers and outsourcing, new openings and back-to-basics

solutions abound. The concentration of digital TV expertise in the region

derives its origins not only from graduates from the local universities but

also the industrial history of Southwest Finland: the CV’s of many experts

boast the names of former employers like Finlux and Nokia.

Digialist develops package solutions and encryption systems

Digialist Ltd located in the Turku High Tech Centre building employs

nine full-time and three to four part-time experts.

-“We all have a minimum of 10 years of experience in the field, and

we know our TV technology inside out,” says Managing Director Pasi Vänttinen.

Digialist designs and develops turnkey solutions for digital TV devices and

tests hardware and software. It supplies solutions for satellite, aerial and

cable based systems as well as for Internet devices. The company’s custo-

mers include operators and large Korean and Chinese manufactures, and

in the domestic market, Finnsat. Key product development partners are

the Norwegian Conax, French Thomson and multinational ST-Ericsson.

In addition to hardware and software, Digialist develops and supplies en-

cryption systems.

”In September 2008, we released a solution combining Conax’s Chipset

Pairing technology and Thomson’s NexGuard watermark technology,

enabling the protection and ”stamping” of digital material contents. This

way the contents can be secured and legally valid proof offered in case of

illegal copies, thus preventing their spreading. This innovation has meant

plenty of visibility and new contacts for us,” Pasi Vänttinen explains with

satisfaction.

www.digialist.com

Turku Science Park has its own ”digital TV cluster”

Digital TV – leading expertise and development

24

The existence of a mobile DVB-H network in Turku Science Park

and its vicinity encourages the testing of new applications.

Local higher education institutions have been involved in the set-

ting up and management of this network together with Nokia,

Digita and many other companies.

For more information on making use of this network, please contact

the DTV Group of the Turku University’s Department of Information

Technology, where some thirty students and scientists are enga-

ged in research on wireless data communication systems under

various projects.

25

Interactive Hibox Systems

Hibox Systems Ltd, a company established by graduates from Åbo

Akademi University, develops and sells interactive television systems and

services to hotels and consumers. Hibox, which employs seven people in

the DataCity building, believes in the future of IPTV technology in parti-

cular.

“IPTV technology, which is based on using an Internet protocol both in the

distribution of TV programmes and the return channel, is sure to become

more common in the future, even though it is not widely used today,”

believes Managing Director Staffan Granholm.

With Hibox system solutions, the services of a computer, video recorder,

radio, stereo, video rental shop and even telephone can all be integrated in

a TV set. All Omena hotels in Finland, for example, have Hibox TV systems.

In terms of service and management, the system offers particular benefits:

control and updates can be performed on real time with a WWW-based

user interface from any computer with an Internet connection.

www.hibox.fi

ClaroVision’s multi-purpose multimedia application

In Turku Science Park Ltd’s DIO Business Centre located in ElectroCity,

an international team of four entrepreneurs is hard at work, striving to

free the consumer from mountains of terminal devices, additional boxes,

cables and remote controls of various types.

Oy ClaroVision Ltd is developing a user interface in which a single wi-

descreen TV will, with a single remote control, display HDTV programmes,

photo albums, recorded or downloaded music and external CDs, videos

and external DVDs. You can also make videophone calls or surf the net,

and the system naturally is Web 2.0 and IPTV compatible. The remote

control also doubles as a mouse, and everything works at the speed of

lightning.

“We have now reached the beta phase; in other words, we can start tes-

ting the application with outsiders. Our pilot partner is Paraisten Puhelin

Oy. We want to prove that our concept works, and we will tailor the pro-

duct properties to the wishes of our future partners,” promises Managing

Director Thorsten Brysch, who leads the German-Ukrainian-Spanish-

Finnish development team with enthusiasm.

www.clarovision.com

Turku Science Park has its own ”digital TV cluster”

DigiPhilos: consultancy and project management

Technical consultancy and project management associated with the Digital

TV environment is the core competence of the consultants at DigiPhilos Ltd based in Turku High Tech Centre. The two founders of the company

have convincing experience in technology management and product de-

velopment in the service of a TV manufacturer.

“We know the field and its technologies. Certain technological solutions

have been introduced in the Nordic countries, which large manufacturers

elsewhere in the world are not familiar with, meaning that their devices

do not work well over here. We consult actors in the field in localisations,

development of business models and product development. Our key cus-

tomers are equipment manufacturers, importers and operators. We put to-

gether and manage development projects and offer an outsider’s perspec-

tive, which often is vital,” explains Kari Myllylä. For example, Timo Santi from DigiPhilos Ltd recently finished a large project in which all cable TV

operators in Finland managed to specify shared technical requirements

for HD digiboxes transmitting a high definition image.

www.digiphilos.com

Business Development

For more information please contact: Turku Science Park Ltd / Business Development Department, Director Olli Mankonen, Tel: +358 (0)40 092 1937

26

Communication services support the implementation of company strategy

and achievement of goals – in particular those relevant to the commercial-

isation of academic inventions and the establishment of new technology

businesses – through communication and marketing. Integrated market-

ing and communications contribute to building up a community image and

enhance the attraction of the clusters (BioTurku® and ICT Turku) and the

region, both nationally and internationally. A uniform Turku Science Park

(TScP) brand, which was introduced in autumn 2007 together with the

new operating model, also increases the desirability of the TScP area as

a base for businesses.

Turku Science Park Ltd’s communication division plans, consults, coordi-

nates and implements marketing communication services and assesses

and gauges the effectiveness of communication. The most important tools

for this include the media relations of the whole community, network

communication as well as marketing and communication materials, fo-

cused enhancement of the TScP image and brand management, targeted,

cluster-based marketing, and events and other methods to boost the

community spirit of the area. Core services include TScP communications

and cluster marketing (BioTurku, ICT Turku), both of which support Turku

Science Park’s marketing and communication associated with the region.

Media relationships and articles

During the year, the division published 113 news reports, and in media

visibility Turku Science Park was second only to Technopolis Plc. We also

served the companies located in the region to the greatest extent possible,

also in the distribution and editing of information sheets. The division pro-

duced an extensive series of articles especially for international publica-

tions of the life science sector (e.g. Nordic Life Science Review; Biotech

Sweden), and articles and series about Turku Science Park appeared in the

supplements of the national financial paper commissioned by our part-

ners, to name one. A monthly column titled ”On a bench in the Science

Park” (Tiedepuiston penkillä), which dealt with the competitiveness and

premises of the TScP area, was written for the financial supplement of the

major regional paper Turun Sanomat.

The Company’s own publications and communication materials

The 32-page annual review of the company was published in the spring,

and together with the new brochure and the Managing Director’s letter, it

was posted to 1,500 regional and national technology actors as a market-

ing package. The English version of the annual review was also widely

circulated.

Turku Science Park’s website and its publication system were totally re-

vamped. Around its publication, the site counted nearly 14,000 hits. In

the space of the entire year, the site was visited by an average of 7,000

people every month.

The electronic publication intended for interest groups, eSpark, came out

11 times. The online magazine Spark was revamped as part of the

overall renewal of the website. In addition, Turku Science Park Info served

all visitors to the area by giving guidance and distributing materials in the

ground floor lobby of the BioCity building.

Visitors and Invest in Finland co-operation

In 2008, Turku Science Park received some 400 visitors, half of which

were foreigners. In addition to the activities of our company, they – and in

particular companies considering relocation (which included foreign busi-

ness e.g. from Vietnam and Russia) - were introduced to the Turku Science

Park concept and facilities. These visitors also comprised delegations of

journalists from such places as St. Petersburg.

The region was promoted as a potential target for relocation, and the de-

tails of companies located in the area were collected for several assign-

ments received specfically through the Invest in Finland organisation.

The Communications division presented the activities of Turku Science

Park Ltd in order to attract foreign investments in a co-operation event

that brought regional Invest in Finland actors from around the country to

Turku.

Events and community spirit

Together with our business partners, the Communication Services division

launched monthly SPARKling (Science PARK) Wednesday events for

the business and research staff engaged in R&D tasks and start-up entre-

preneurs of the Science Park. The themes mainly focused on intellectual

property rights, and the events were valued as occasions for people from

different fields to network and build up their regional identity.

The Communication Services negotiated and administered Spark ben-efits which are granted to businesses with premises in the TScP area.

Spark benefit events are organised to keep businesses informed about

discounts offered by travel agents, airline and hotel and congress service

providers, etc. and additional information is sent out to companies and

organisations.

Turku Science Park Ltd also wishes to encourage newcomers in its area to

become full members of the community. We advertise the services avail-

able in the area and joint development projects and, as much as possible,

Marketing and Communications

Marketing and Communications

27Marketing and Communications

promote companies located in the area in our communica-

tions (e.g. STMicroelectronics R&D Ltd).

Turku Science Park Ltd gave a party to celebrate its 20th

anniversary in August, organised an anniversary seminar

in October and an event for the stakeholders on the 5th of

December. These occasions were attended by nearly 400

people in total.

In the recent downward swing of the economy, during

which the fittest will survive, the skilfull build up of stake-

holder interest and our attractiveness on multiple channels

will be essential. Being fit may require such things as a

strong brand or being financially sound, or even the in-

ternal willingness of a community to survive. What is sure

is that all these aspects can be enhanced by integrated

communication.

Sanako secured 5 million in capital injection (10 Jan 2008)

Innomedica to open a London office (17 Jan 2008)

QuatRx’s cholesterol drug shows promise in trials (29 Jan 2008)

A capital injection exceeding one million for Axel Technologies (5 May 2008)

Italian-Finnish biomaterials co-operation on the cards (27 Feb 2008)

A new pharmaceutical industry service company starts operations (31 March 2008)

Project provides globalisation models for life science service companies (9 May 2008)

HyTest’s influenza reagents are a big seller (27 May 2008)

Faron initiates clinical trials in acute lung trauma patients (10 Jun 2008)

Turku Science Park Ltd starts co-operation with Heidelberg Park (28 Jul .2008)

Michael Widenius to invest in IT Mill (12 Sep 2008)

Turku to establish contacts with the Russian pharmaceutical industry (17 Oct 2008)

Company visit to Hong Kong to find contacts (21 Oct 2008)

Turku Science Park Ltd celebrates its 20th anniversary (23 Oct 2008)

Biotie Therapies to acquire the German Elbion GmbH (27 Oct 2008)

Fresh fish in a smart package (3 Nov 2008)

Edelcrantz Challenge innovation award for Lingsoft’s publication platform (20 Nov 2008)

Turku Science Park Ltd invests in Karolinska Development Ab’s fund (11 Dec 2008)

For more information please contact: Turku Science Park Ltd,

Director of Communications, Katja Wallenlind, Tel. +358 (0) 50 5774 807

27

Turku Science Park in the headlines in 2008

28

An image and customer survey of Turku Science Park Ltd was con-

ducted in late 2008. The survey indicated that the company is well

known and its image is positive, but its services are not adequately

known. Consequently, the company has intensified the commerciali-

sation of its services, and will launch e.g. the TUTKA™ information

system advisory service targeting SME’s. The international network

of partners, which was considered important by participants in the

survey, will be further reinforced.

From targets to practical steps

The first service to be commercialised in Turku Science Park Ltd based on

the survey results was a guidance service related to information systems

intended for SME’s. The TUTKA™ service reveals any hidden information

system problems and ensures the continuity of enterprises. The ensuing

report highlights any risks and bottlenecks in the activities and gives the

entrepreneur a minimum of three recommendations on how to make the

business more efficient. The cost of this service to the company is no more

than EUR 200, as the EU pays the rest, and Turku Science Park Ltd handles

the associated bureaucracy.

Turku Science Park’s international network of partners, which the custom-

ers found vitally important in the survey, will also be further enhanced.

The company will continue to foster partnerships in its foremost sec-

tors – biotechnology and ICT – with international leaders. Biocelex Ltd,

a joint venture of Turku Science Park Ltd and the Swedish Karolinska Institutets Holding AB, exceeded expectations in its first operating year,

and the partnership agreement concluded with the German Heidelberg Technologiepark in the summer is producing tangible results in a number

of ways, especially in the core areas of expertise of both parks, i.e. cancer

research and bioimaging.

Survey outcomes in a nutshell

In addition to businesses, the target groups for the survey included research

actors and finance providers, as well as other stakeholders of Turku Science

Park Ltd. The customer section of the survey was conducted as a telephone

interview with 150 participants. The practical implementation of the survey

was ensured by Innolink Research Ltd, and its key outcomes can be

summarised as follows:

• Turku Science Park Ltd is undeniably the best known development

partner among its customers

• The rating for spontaneous recognizeability as a developer of start-

up businesses was high (19%).

• The businesses particularly mentioned TScP’s strong contact net-

works, coaching, events and opportunities for international net-

working

• The staff is seen as service oriented, willing to work together and

easy to approach

• The location of TScP Ltd is regarded as excellent

• However, the customers are not sufficiently familiar with TScP’s

services.

The survey participants found staff competence and expertise most

important, in addition to a wide-reaching network of experts. In the

success ratings given by the survey participants, Turku Science Park

Ltd scored the highest in staff competence and expertise (score 5.6/7)

and quality of services (5.4/7).

Based on an accurate gap analysis, in which success was compared to

the proportional importance of the activity, the most successful cases

included company development / Biocelex Ltd; company development

/ incubator services; coordination of development projects; planning of

development projects, and the clarity and informativeness of the web-

site. Actual critical factors, in which Turku Science Park may have been

unsuccessful in meeting customer expectations, did not emerge in the

stakeholder survey.

Inspired by the image and customer survey:

Turku Science Park Ltd intensifies service commercialisation

Marketing and Communications

29

On 22 October 2008, Turku Science Park Ltd celebrated its 20th anni-

versary as a promoter of high technology and associated enterprising

activities with an anniversary seminar emphasizing international net-

working, completed with a programme of entertainment, held in the

Mauno Koivisto Centre, BioCity building.

Learn from others, share the information

A prerequisite for making use of high technology in business is good inter-

national channels and working co-operation, in which the cornerstone of

strategy is partnering with the best actors in the field. Turku Science Park

has learnt from the successful operating models of others, and in its own

consultancy activities directed abroad, it has been able to offer assistance

based on experience in developing innovation systems.

The invited guests in the anniversary seminar were greeted by CEO Ilkka Kouvonen, and the opening remarks were made by Member of Parliament

Anne-Mari Virolainen, former employee at Turku Science Park Ltd.

Relating Science Park activities with passion and humour

The main speakers at the seminar illuminated the various aspects of our

international co-operation.

Our German partner Dr. Klaus Plate, Managing Director of Heidelberg Technology Park, described how a science park strictly focusing on life

sciences was created in Heidelberg, with its activities firmly based on re-

search of an extremely high standard. Work is needed in order to attract

top-class scientists and persuade them to stay: the campus must have

both Nobel-winning role models for the scientists and a Biergarten and

Kindergarten within a walking distance to ensure that the scientists, and

their families, will enjoy living in Heidelberg and wish to stay.

Dr. Prof. Lex de Lange, a veteran of the science park sector and one of

the founders of the Zernike Group that recently celebrated its 25th anni-

versary, amused the listeners by relating how he, as an old tax consultant,

just happened to create a science park whose activities were both efficient

and profitable in commercial terms. His organisation has as many as 700

investments in start-up technology companies under its belt, only 32 of

which have ceased to exist. Small sums may be granted lightly for early-

phase trials of commercialisation ideas, but in the seed stage at the latest,

all partners to the agreement are expected to share equally: the ideas, in-

formation, resources, profits and any losses alike. This concept has worked

well so far, but in the circumstances of today’s financial crisis, Dr de Lange

was inclined to add a reservation: ”until last week”.

Dr. Neville Commins, who faced the challenges of creating the Innovation Hub science park in South Africa, described what it was like to set up

a science park literally “in the middle of nowhere”, without any existing

background organisation and with everyday problems like the astronomical

price of a broadband connection. In such circumstances, you end up using

a GSM phone for many tasks. It may not be the most efficient tool, but it

is the only one that works. The Innovation Hub has got off to a good start,

however, and thanks are partly due to the Finns, including Turku Science

Park Ltd, who developed the local innovation system under the COFISA co-operation project.

After the main speakers, the audience enjoyed lighter entertainment with

a scientific twist, with Professor Pentti Huovinen’s lecture prepared for

the University of Turku / Children’s University on ’the miraculous

life of bacteria’, and the theatre group Linnateatteri performing extracts

from the play ‘An absurd history of Turku’, followed by a fusion cooking

demonstration.

Turku Science Park Ltd’s 20th anniversary was a celebration of internationality

2929

30

The ICT sector of Turku Science Park received a significant boost,

as the more than 80 employees of STMicroelectronics R&D specia-

lising in chipset design for mobile devices took over the 6th floor of

ElectroCity.

A rearrangement of units

STMicroelectronics R&D Ltd, which employs a total of over 200 people

in Finland, is a young company with veteran employees. The company

was established in Finland in 2007, when Nokia decided to outsource

chipset design for mobile phones. The company’s branches are located in

Helsinki, Oulu, Tampere and Turku.

Initially, the new owner of the design unit was the Italian-French semicon-

ductor giant STMicroelectronics. This company set up a joint venture with

NXP (previously Philips Semiconductors), producing ST-NXP Wireless,

which then emerged as the mother company of the Finnish STMicroelec-

tronics R&D Ltd and the third largest supplier of mobile chipsets in the

world. The following step was the agreement between ST-NXP Wireless

and Ericsson Mobile Platforms on establishing a joint venture with 50/50

ownership. Today, the new mother company of STMicroelectronics is kno-

wn as ST-Ericsson, and it brings together a total of 8,000 experts in mobile

device chipsets.

- The market has been undergoing major changes recently; one by one,

large telephone manufacturers are giving up their own chipset design

units, wishing to purchase the modules from partners,” explains STMicro-

electronics R&D Ltd’s Area Manager Jussi Rummukainen.

Turku Science Park an outstanding location

The new company could have continued operating in Salo, as its ties

with Nokia remain strong. When it became apparent that 80% of the staff

working in Salo commuted daily from the Turku area, the city and Turku

Science Park started looking like the most attractive location.

- Beside a railway station, with a fast connection to Salo and Helsinki

on the motorway, only 20 minutes from the airport,” Rummukainen lists,

estimating that the new location helps the company avoid some 50,000

km of commuting monthly.

- Our cars are not brand new, and we can thus put the CO² emissions per

car at approx. 200 g/kilometre; in other words, by relocating to Turku, we

save the environment from some 10,000 kg of carbon oxide emissions

in a single month,” Rummukainen calculates. What remains a problem is

parking. Even if personal cars are used less for commuting, the company

needs to offer parking for its whole staff, and this is still a problem in the

Science Park area.

Getting the benefits from synergy

STMicroelectronics R&D Ltd moved into brand new premises renovated

especially for them in Turku Science Park’s ElectroCity, and the company

has been very happy here.

- Our Turku offices house the personnel resources department that sup-

ports design units all over Finland, the coordination of IT support, the cent-

ral server pool, and a large RF measurement lab with interference proof

facilities,” Rummukainen lists.

The company intends to make full use of the close proximity of Turku’s

educational institutions.

- The launch of the new company started from the company’s own product

projects and ensuring their functionality, and this is why our own research

or research co-operation with the universities in Turku is not yet in full

swing. We are interested, however, and it will be vital for our operations in

the future,” he concludes.

www.stericsson.com

Chipset designers relocated to Turku Science Park

For more information please contact: Turku Science Park Ltd, CEO Ilkka Kouvonen, Tel. +358 (0) 50 3808 600

Real Estate

3131

32

Board Chairman Tom von Weymarn:

The Board of Directors of Turku Science Park

Ltd brings together top-level national busi-

ness management skills and international

experience. The constitution of the Board

combines the experience and skills in the

company’s leading edge sectors as well as

an effort to reach a balanced representation of key stakeholders – the high-

er education sector, business life and the City of Turku.

An efficient management system, open communication and reporting of

essential information are key elements in sound corporate governance.

Central to the Board’s activities is striving to combine various areas of ex-

pertise to increase the efficiency of the Board’s work and to reinforce cor-

porate governance.

Turku Science Park Ltd’s Board of Directors (as of 5 September 2005 )

Board Chairpersons:

Tom von Weymarn, Board Chairman, also acts as Board Chairman in

Telia Sonera Ab and Lännen Tehtaat Plc

Tero Hirvilammi, Deputy Chairman, Deputy Mayor for competence

and business development in the City of Turku

Board members:

Pauliina de Anna, Member of the City Council of Turku

Rabbe Klemets, Oy L-S Link Ab, Board Chairman of Klemets

Management Oy

Seppo Lehtinen, Vice Chairman of the City Board of Turku

Björn Mattsson, Senior Industrialist, acts as Board Chairman e.g. in

Nordkalk Corp.

Aleksi Randell, Chairman of the City Board of Turku

Matti K. Viljanen, Professor, Vice Rector of the University of Turku,

responsible for research activities

Board of Directors

Board of Directors

33

Financial statement and balance sheet 2008

FINANCIAL STATEMENT 2008

Turnover 8,769,890.83

Materials and services -1,630,347.44

Staff expenses -2,711,552.85

Depreciations and value adjustments -1,127,563.41

Other expenses -4,103,293.77

Operating loss -902,191.11

Financing yields and costs -430,940.83

Net profit / loss -1,333,131.9

BALANCE SHEET 2008

Assets:

Non-current assets 28,615,707.18

Current assets 10,779,558.48

Total assets 39,395,265.66

Liabilities:

Shareholder’s equity 19,993,616.34

Outside capital 19,401,649.32

Total liabilities 39,395,265.66

Number of employees 43

Financial statement and balance sheet 2008

FINANCIAL STATEMENT 2007

Turnover 10,396,223.26

Materials and services - 1,854,364.82

Staff expenses - 2,681,258.10

Depreciations and value adjustments - 1,266,454.52

Other expenses - 3,959,616.54

Operating profit 842,016.98

Financing yields and costs - 445,184.93

Net profit / loss 426,856.05

BALANCE SHEET 2007

Assets:

Non-current assets 27,944,974.21

Current assets 14,187,944.37

Total assets 42,132,918.58

Liabilities:

Shareholder’s equity 21,236,748.28

Outside capital 20,806,170.30

Total liabilities 42,132,918.58

Number of employees 46

34

Turku Science Park – accelerator of innovation

• Three research universities:

University of Turku, Åbo Akademi University and Turku School of Economics

• Turku University of Applied Sciences, Diaconia University of Applied Sciences

• Turku University Hospital

• Leading edge sectors: biotechnology and applied ICT

• 17,500 employees

• 30,500 students

• 400 professors

• more than 300 businesses and organisations

• over 250,000 m² completed facilities within five square kilometres

• A dozen technology buildings on the motorway to Helsinki, in the immediate vicinity of the

Kupittaa railway station and within walking distance from the city centre

• Less than half an hour’s drive from an airport with international connections

Accelerator of innovation

35

Innovate to Accelerate

www.turkusciencepark.com