WBI KE Finland

Helsinki 30-31 August 2004

NEW PARADIGMS FOR INTERNATIONAL

KNOWLEDGE-BASED ECONOMY

Professor Jorma Routti

Helsinki University of Technology & CIM Creative Industries Management

Former President of Sitra & Director General of Research DG of European Commision

www.cimfunds.com jorma.routti@cimfunds.com

Finland is participating in 840projects in the Vth FrameworkProgramme and receives EUR 200Million EU financing.

EU R&Dpro-grammes

Industrial R&D cooperation. Thereare 700 projects in execution;Finland is involved in 60 of themwith a volume of EUR 50 Million.

EUREKA

Finland a member since 1995.Finland's contribution was overEUR 13 Million in 2000 and Finnishindustrial return from ESA was 98 %.

IEAInternational Energy Agency of OECD.Finland is taking part in 40 projectsunder 20 research contracts.

Finland in the European technology cooperation

A 09 / 01-06

COST

Cooperation in scientific and technicalresearch. Annual volume in Finlandis about EUR 30 Million. Finland isinvolved in over 2/3 of the projects.

ESAEuropeanSpaceAgency

Public sector activities of R&D in Finland

A01/ 99-12

Ministry ofEducation

Academy ofFinland

Universities

Ministry ofTrade andIndustry

Tekes

RegionalTE-Centres

Other ministriesand theirinstitutes

SitraFinnvera Oyj

Finpro

Science andTechnology

PolicyCouncil

PARLIAMENT

VTT

GOVERNMENT

CURRENT STATE

V I S I O N

S W

O T

ECONOMY

SAFETY

SUSTAINABILITY

SOLIDARITY

SKENARIOS FOR

OPERATING ENVIRONMENT

R&D input in some OECD countries

Sources: OECD, Main Science and Technology Indicators database, Statistics Finland (Finland 2002) and Statistiska centralbyrån (Sweden 2001, estimate). Docs 36109

02-2003

USA

Japan

Germany

Sweden

Great Britain

France

Austria

FINLAND

Denmark

85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02

OECD total

3.5

3.0

2.5

2.0

1.5

1.0

4.0

Percentage of GDP

est.

Canada

Israel4.5

0.5

Iceland

South Korea

Singapore

China

Norway

Exports of Finnish high tech products totalled9.9 billion euros in 2001, i.e. 21 % of total exports of goods.

Exports of Finnish high tech products totalled9.9 billion euros in 2001, i.e. 21 % of total exports of goods.

Source: Statistics Finland, according to the OECD product catalogue defined in 1995

The share of high tech exportsin some OECD countries 1988-2001

Norway

USAJapanUnitedKingdomNetherlandsFINLANDSwitzerlandFranceSwedenGermanyDenmark

Docs 32187B 03 /02-03

0

5

10

15

20

25

30

1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001

% of total exports of goods

EU

Source: Statistics Finland

R&D intensity and GDP growthin some countries

A 07B/ 01-06

0,0

1,0

2,0

3,0

4,0

0,0 1,0 2,0 3,0 4,0 5,0 6,0 7,0 8,0 9,0

USA

Japan

Germany

Spain

FINLAND

EU average

Ireland

Italy

Netherlands

FranceDenmark

Great Britain

Sweden

GreecePortugal

AustriaBelgium

4.0

3.0

2.0

1.0

0.00.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0

R&D intensity, %

Real growth in GDP 95-99, %

Public sector activities of R&D in Finland

A01/ 99-12

Ministry ofEducation

Academy ofFinland

Universities

Ministry ofTrade andIndustry

Tekes

RegionalTE-Centres

Other ministriesand theirinstitutes

SitraFinnvera Oyj

Finpro

Science andTechnology

PolicyCouncil

PARLIAMENT

VTT

GOVERNMENT

Forest Industry Cluster

Brasil, South Africa, China, Indonesia

Manufacturing and Operations

Valmet Paper Machines• Design, manufacturing

and remote operations

Production • Focus on specific market

segments and products

World wide marketing

Paper, cardboard, packaging material

Poyry Design and Consulting

Pulp Mills Sunds

Design, manufacting and maintenance

Timberjack Forest Harvestors

Shifting Responsibilities for Economic Development

Old ModelOld Model

• Government drives economic development through policy decisions and incentives

• Government drives economic development through policy decisions and incentives

New ModelNew Model

• Economic development is a collaborative process involving government at multiple levels, companies, teaching and research institutions, and institutions for collaboration

• Economic development is a collaborative process involving government at multiple levels, companies, teaching and research institutions, and institutions for collaboration

E enlightenment

W wisdom

U understanding

K knowledge

I information

D data

Jorma.Routti@cimfunds.com