Sustainable innovation – in every sense

Finland is committed to being at the forefront of development and a dynamic environment for business and people. The country’s track record in recent years shows that it has succeeded in many areas, whether in terms of national competitiveness, business innovation, equality of opportunity, sustainable development, economic prosperity, or well-being.

No country, Finland included, however, can hope to remain at the front of the field without constant development work and strong networks nationally, regionally, and worldwide. It is probably not surprising then that the importance of international networks has been particularly highlighted in Finland’s new national innovation strategy – as has the importance of focusing on users in R&D.

Finland has proved an excellent location for testing out new ideas, new products, and new services, as most Finns are very positive towards new things and keen to try them out. This has seen the emergence of a ‘Living Lab’ environment, where users, companies, research institutes, universities, and public institutions are coming together to an increasing extent to form dynamic problem-solving communities.

Flexibility and commitment

No country can hope to remain at the front of the field without constant development work and strong networks nationally, regionally, and worldwide. Photo courtesy of Tekes.

Finland has a population of only a little over five million, of which one in five live in and around the capital, Helsinki. This small size has its benefits, but it is not the only reason why things tend to get done quicker and with less ‘fuss’ than in many other places. There is just simply less bureaucracy and more networking.

Flexibility, openness, efficiency, networks, commitment, and mutual trust are also very characteristic of Finland’s innovation environment. Public funding organisations, such as Tekes, the Finnish Funding Agency for Technology and Innovation, for example, work closely with companies and universities to shape a common strategy for the future.

Tekes provides funding and networks for a wide range of R&D&I (research and development and innovation) projects, both public and private, and promotes cooperation between the business and academic communities. Any company based in Finland can apply for this funding or join any of the initiatives and programmes coordinated by Tekes.

The importance of a comprehensive approach to the way Finland envisions its future is emphasised by Tekes’ Director General, Veli-Pekka Saarnivaara.

“Technology, services, and business expertise are all essential to the mix. Simply being the best in any one of these areas alone is unlikely to be enough in today’s world. Companies, and the country as a whole, need a broader base.

R&D investments in various OECD countries
Finnish exports by industry

“Strong players with ‘critical mass’ and clusters of world-class expertise are essential. In a small country like Finland, this creates the need for clear strategic choices, with focus areas based on global opportunities, as well as the need for networking, both nationally and internationally – to turn ideas and research results into innovations and success.”

Programmes and people

The importance of a comprehensive approach to the way Finland envisions its future is emphasised by Tekes’ Director General, Veli-Pekka Saarnivaara. “Technology, services, and business expertise are all essential to the mix. Simply being the best in any one area is not enough.”

Finland continues to be one of the world’s most research-intensive countries. National spending on R&D currently runs at close to €6.5 billion a year, or 3.5% of GDP. Around 70% of this comes from the corporate sector and the remaining 30% from government.

The human element has not been overlooked either, as Finland has the highest percentage of people employed in research of any OECD country.

Building on previous and ongoing work done by technology programmes and other initiatives, Finnish companies and research institutes are now developing a series of new Strategic Centres for Science, Technology and Innovation to promote long-term R&D collaboration in a number of key areas.

These strategic centres are designed to offer participants new tools for carrying out joint research plans aimed at meeting application needs over the next five to 10 years.

“We believe that these centres will play an important part in ensuring that we respond and adapt to change when and where it’s most important,” says Erkki Virtanen, Permanent Secretary at the Ministry of Employment and the Economy. “They are also a good example of the potential of efficient public-private partnerships, involving industry, the academic community, government, and agencies such as Tekes and the Academy of Finland.”

Finland has long been known for its forest industry know-how – from harvesting timber to developing the chemicals that can make better paper from it – which probably explains why Forestcluster was the first such centre to be set up. This has been followed by Tivit, addressing the needs of the ICT sector, and Fimecc, which is focusing on the metals and engineering area.

The latest to be established is Cleen, devoted to energy and the environment. Work on developing strategic centres for health and well-being and the built environment is now under way.

“Promoting competitiveness and innovation across a wide front has been one of the cornerstones of the Finnish success story, and will continue to be of critical importance into the future,” according to Erkki Virtanen, Permanent Secretary at the Ministry of Employment and the Economy.

Finland in the top 10
Strengths of Finland’s innovation environment
Who’s who in promoting innovation in Finland
Finland in figures