Innovation and Innovation Policy in Finland

Innovation and Innovation Policy in Finland 

Overview of Innovation Policy

During last couple of decades, economic development in Finland has largely been built on developing high technology, its effective utilisation and determined efforts to increase exports. This approach has significantly contributed to improvement of Finland’s position in international competition until recently. It has, however, become increasingly clear that the policy approach has been too much clung to traditional science and technology policy perspective. Innovation policy makers are today emphasising need to adjust policies to match with changes taking place in innovation activity which is ever more switching to customer-oriented, networked and open innovation ecosystems embedded in a global economy. Furthermore, policies aiming to enhance innovativeness and promote innovation cannot be any longer restricted to manufacturing industries or technology and R&D intensive ones only but have to take into account opportunities for innovation broadly in economy. In addition, there is an identified need to look new innovative ways to tackle challenges public services is facing. The broad-based national innovation strategy published in 2008 targets these challenges. Broadening scope of policy is also reflected in initiatives and existing policy measures which are geared to promote innovation and create environment conducive to innovation at broad front.
 
Finland's attractiveness for investments is another challenge related to innovation policy. In light of international comparative studies, Finland has been among the winners of globalisation on the basis of its performance in recent past. However, globalisation is dynamic process and there is no country or region which can count on its past strengths. The global economic crisis, which broke out in Autumn 2008, only underlines topicality of the issue and need to find ways to keep Finland sufficiently attractive for business and jobs and as a living environment in future.
 
A lack of innovative growth-oriented small and medium sized enterprises is third challenge facing Finland's innovation policy. The overall positive development of the Finnish economy and industries over the recent past disguises uneven performance across the board. In many instances, single industrial clusters and even individual large domestic multinational enterprises have accounted for a large part of the impressive progress in productivity, R&D investments and exports. In this situation, a broadening of the base of innovative, internationally competitive, growth-oriented companies has became a key focus areas of Finnish innovation policy recognised also in the national innovation strategy.
 
Regarding innovation governance and policy trends, there are several signs implying that Finland has entered into a new phase of development. Firstly, there is move towards a broad based innovation policy in the sense of content and coverage of issues which challenges or at very least put pressure on the traditional technology and production focused perspective. Secondly, the existing innovation governance system and its structures have been under critical consideration during the last few years in Finland. As a result of this, structures have been either reformed recently, the changes are currently underway or in preparation - these include restructuring of organisations and their functions, establishment of new organisations and mergers of existing ones, and redefinition of inter-linkages and responsibilities between the public actors involved in innovation policy making and implementation of policies. Wide scope of the structural changes are demonstrated by reorganization of ministry structure and establishment of the Ministry of Employment and the Finance in the beginning of 2008, on-going structural reform of the universities and renewal of sector research as well as plans to renew public enterprise services.
 
The Council of State approved in October 2008 an innovation political report, which contains key strategic lines for development the innovation policy and environment in Finland in coming years. The strategy puts forward development guidelines for creation of broadly based and multifaceted innovation policy which should facilitate the development and reform of the knowledge-based competitiveness of the business life, national economy and regions. The exploitation of innovation in the public sector and society is also taken into account in the strategy.
Please have a look at the Finish government's Communication on Finland's National Innovation Strategy

Annual Country Reports
 Country report 2009 for Finland
 Country report 2008 for Finland
 Country report 2007 for Finland
 Country Report 2006 for Finland
 Country Report 2005 for Finland
 Country Report Finland September 2004
 Finland - Trend Chart Country Report, September 2003
 Finland - Trend Chart Country Report, March 2003
 Finland - Trend Chart Country Report, September 2002
 Finland - Trend Chart Theme-specific Country Report, May 2002
 Finland - Trend Chart Country Report, November 2001
 Finland Trend Chart Country report June 2001
 Finland Trend Chart Country Report Dec 2000
 Finland Trend Chart Country Report July 2000


Latest TrendChart Deliverables
 Workshop Briefing Finland 13_2006
 Discussion on patterns of innovation in services
 State Aid and innovation in Services
 European R&D and services
 A Finnish example of a specific policy programme for innovation in services


New Support Measures
FI 20 TRIO Programme
FI 61 Social Capital and Networks of Trust (SOCA) 2004-2007
FI 103 NewPro - Advanced Metals Technology - New Products 2004 - 2009
FI 100 Water Programme 2008-2012
FI 98 Boat Programme 2008 -2011


Who Is Who

Senior Official(s) for Finland
Anna Maija Rautiainen
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Correspondents for Finland
Jari Konttinen
Juha Oksanen




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Innovation Performance


 Performance in Innovation Scoreboard 2008

Find Out More


 List of relevant websites