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The impact of Tekes and innovation activities

2013

Finnish wellbeing relies on the economic growth created by innovations

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Innovation activity is a key driver of economic growth and enables the funding of welfare services in the long term.

Innovation funding with proven impact

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47 of the 50fastest-growingtechnologycompanies in Finlandare Tekes customers

123

In SMEs, an investment of one euro by Tekes produces

of turnover annually

For every

of Tekes funding, one permanent job is createdin the private sector

14,000€

For every euro invested by Tekes, companies increase their own R&D expenditure by

2 euros

over 80 %Tekes Global Access Program (GAP ) hasincreased GDP by morethan

20 M€

In the GAP Program, oneeuro invested by Tekeshas generated

17 €

Tekes has partly funded

of well-known Finnish innovations in 1985-2009

65%

980

SMEs expect projects in2012 to produce

billion euros in turnoverduring the target year

1,260 6.2

Projects that were completed in 2012 resulted in

patents or patentapplications

21€ 840

Projects that were completed in 2012 produced

academic theses

Projects that were completed in 2012 generated

products, services or processes

of Tekes customers state that the Tekes funding was a significant factor in their success

Labour productivity in the private sector has collapsed in Finland due to structural changes

Source: OECD STAN 2013

Labour productivity in industry and private services

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Index, 1995=100

Jobs in the private sector have decreased especially in industy

Source: Statistics Finland, National Economics 2012

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Work force, 1,000 persons

Public funding for R&D in companies

Source: OECD, Research and Development Database

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%

Finland is the leading country in innovation cooperation between companies and research sector

Source: Eurostat, Community Innovation Survey

Tekes plays a significant role in creating innovation partnerships between companies, universities and research organisations.

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%Share of innovating companies 2008-2010

Significance of various actors in early stages of SMEs

Source: Tekes customer survey in 2012: SME projects that concluded in 2009(number of companies that used the services in brackets)

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0 = No significance100 = Indispensable

Coming up with an invention that can be commercialised

Starting a company

Significance of various actors in SME R&D activities

Source: Tekes customer survey in 2012: SME projects concluded in 2009(number of companies that used the services in brackets)

Enabling vital R&D cooperation projects

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0 = No significance100 = Indispensable

Launching a company's own R&D efforts

Significance of various actors in the globalisation of SMEs

Source: Tekes customer survey in 2012: SME projects concluded in 2009(number of companies that used the services in brackets)

Establishing international customer relationships

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Establishing international R&D partnerships

0 = No significance100 = Indispensable

The productivity of Tekes customers has increased more compared to other companies in Finland

Source: Etlatieto Oy, 2012

Growth in productivity in SMEs (3-250 employees 2001-2010)

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Tekes customers received funding from Tekes in 2001. Companiesin the comparison sample have not received funding from Tekes.

Tekes funding has played a crucial role in about one half of well-known innovations

Source: VTT Sfinno database, surveys, 957 responses

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Significance of Tekes funding is highlightedfor innovations that are new in the global market

Source: VTT Sfinno database, surveys, 662 responses

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Tekes funding has had a significant impact on innovations based on public research

Source: VTT Sfinno database, surveys, 194 responses

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Results of completed projects

Results of projects completed in 2012 520 new or improved products 400 new or improved services 340 new or improved production processes 980 patent applications 840 academic theses

Total 1,590 completed projects

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Over 50 percent of the SME projects funded by Tekes are commercially successful to a certain degree

Source: Tekes customer survey in 2012 for projects that concluded in 2009

Projects funded by Tekes in small and medium-sized companies

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%

Every year approximately one percent of Tekes customers bankrupt

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Number of bankrupts

Annually Tekes has approximately 5,000 customers which have received Tekes funding inthe last five years or which have an outstanding Tekes loan. About one percent of these bankrupt every year. In all Finland, about one percent of companies bankrupt.

Young innovative companies (YIC) funded by Tekes have grown despite the recession

Source: Rannikko, 2012

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YIC companies funded by Tekes, 33 companies. Reference group: companies established in 2003 or later, not part of Vigo, YIC or Growth Channel groups, sales less than EUR 2.5 million in 2006

Average turnover in thousand euros

Tekes customers are successful

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Global Top 300 i.e.Finnish companies on the list of most innovative technology companies, all Tekes customers:

EpicrystalsHyperInKioskedMiradoreModzOvelinRelaxbirthSensegThingLink

In TOP 100Kiosked Relaxbirth

10 fastest growing companies in Finland in 2013, 9 of which are Tekes customers (growth in 5 years, %):

iLOQ (7 379 %)

Multi Touch (4 024 %)

Dream Broker Oy (2 231 %)

Ecolane Finland (2 203 %)

Alekstra (2 069 %)

SLM Finland (1 832 %)

Solinor (1 595 %)

Valopaa (1 516 %)

Paytrail (1 464 %)

Eniram Ltd (1 514 %)

Out of 50 fastest growing companies 49 are Tekes customers.

Finnish companies on thelist of European hotteststart-up -companies,all financed by Tekes:

HolviJollaScartlet MotorsSupercellGrand CruProtogeoWalkbaseZen RobotisIndoor Atlas

According to an international comparison, Tekes is one of the world's leading innovation funders

Source: Evaluation of Tekes – Final Report, Publications ofthe Ministry of Employment and the Economy, 22/2012.

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Tekes has enhanced the quality andcapabilities of research.It has also increased cooperation andexternality in addition to improve theinternational competitiveness andproductivity of Finnish companies.

Tekes funding creates turnover and jobs

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For every euro invested byTekes, companies increasetheir R&D expenditureby 2 euros.For every 14,000 euros ofTekes funding, one permanent job is createdin the private sector.

Tekes funding increases cooperation and shares distributes the risks of innovation

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Tekes funding affects company strategies, cooperation between companies, and the challenge level, risks, quality and methods of projects.

Tekes' financial incentives and programmes have had a major impact on the innovation cooperation of companies, universities and research institutes.