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Issues

• Evolution of Innovation Policies

• Systemic approach

• Business perspective

• Future challenge

• A new role for Innovation Systems

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INNOVATION SYSTEM

Economic andsocial needs

users

Knowledge baseknowledge producers

absorptivecapacity

interaction- knowledge transfer- user needs

- quality- relevance

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Percentage of GDP

Sources: OECD, Main Science and Technology Indicators 1999 and Statistics Finland

R&D input in some OECD countries1985 - 1999

USA

Japan

Germany

Sweden

UK

France

NorwayAustria

FINLAND

Denmark

JapanSweden

USAGermany

UKFrance

AustriaDenmark

NorwayFinland

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

3.5

3.0

2.5

2.0

1.5

1.0

4.0

3.5

3.0

2.5

2.0

1.5

1.0

4.0

OECD total

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FIRM’S INNOVATION PARTNERS

FIRM

managementconsultants

research and educationinstitutions

advisers and otherintermediaries

public authorities;public policies,

regulation, procurementetc.

other companies;large and small

financial system

markets;customers

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Systemic Approach• Science, technology and Innovation Policies are an

essential part of governments' strategies to attain macroeconomic stability, economic renewal and full employment

• STI Policy is a horizontal policy which needs to be coordinated with a number of other policies (e.g. economic, industrial, education and regional policy

• STI Policy should cover the whole system from knowledge generation through diffusion to knowledge utilization and commercialization (Innovation system)

• New structures and competencies are needed in the government to facilitate effective STI Policy

• Innovation system is as weak as its weakest link

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Fundamental changes taking place

•Globalization, knowledge-based economies, digital revolution

•Economy-wide impact on all players business, individuals and societies

alike

Business will face a strong renewal challenge

• End-user needs drive development, personal choice, lifestyle

• Global markets and rules of the game

• Right timing, speed and continuous upgrading, new business models

• Strategic partnerships, orchestration knowledge sharing

• New management principles and organization; corporate governance knowledge management

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Reconfigurable business systems

Business Opportunities

Business & Product roadmaps

Supplier/Partner Customer

MARKETS

RESPONSIBLEBUSINESSES

COMMONBUSINESSPLATFORM

Process 1

Process 2

Process 3

Core Business Processes

Modular IT-platform

Organizational Architecture for the Web-age

Corporate CultureCorporate Culture

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A Challenge for Individuals

•Competence

•Curiosity

•Courage

•Social responsibility

•Respect for diversity

A Challenge for the Society

• Systemic approach

• Investment in R&D and education

• Entrepreneurship, networking

• Global solutions and open markets

• Institutional and regulatory reforms

• Information society for all

• Cultural diversity

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An Example: a New Mission for Universities

Research

EducationKnowledgesharing

UniversityUniversity

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Sharing Knowledge between Companies and Universities

R&D Cooperatio

n

Recruitment

Recruitment

Education and training

Cooperation benefits both parties, but independent basic and applied research in universities is equally important

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An Example: New Role for Regulation

•Towards horizontal regulation

•Towards global solutions•Towards industrial self-

regulation•Towards policy cooperation•Towards building trust•Towards predictable

environment•Towards speed and flexibility

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A New Role for Innovation Systems

STI Policies

Corporate Governance

Framework conditions

Innov. system

MacroeconomicStability

New organization and management

principles

KnowledgeSharing

Regulatory and institutional

Reforms Entrepreneurship

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Thank you