1. 1 © NOKIA Stocholm/15.1.2001/EO

2. 2 © NOKIA Stocholm/15.1.2001/EO Issues Evolution of Innovation Policies Systemic approach Business perspective Future challenge A new role for Innovation Systems 2 © NOKIA Stockholm/15.1.2000/EO

3. 3 © NOKIA Stocholm/15.1.2001/EO 190199/EO/mwe INNOVATION SYSTEM Economic and social needs users Knowledge base knowledge producers absorptive capacity interaction - knowledge transfer - user needs - quality - relevance

4. 4 © NOKIA Stocholm/15.1.2001/EO Percentage of GDP Sources: OECD, Main Science and Technology Indicators 1999 and Statistics Finland R&D input in some OECD countries 1985 - 1999 USA Japan Germany Sweden UK France Norway Austria FINLAND Denmark Japan Sweden USA Germany UK France Austria Denmark Norway Finland 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

5. 5 © NOKIA Stocholm/15.1.2001/EO FIRMS INNOVATION PARTNERS FIRM management consultants research and education institutions advisers and other intermediaries public authorities; public policies, regulation, procurement etc. other companies; large and small financial system markets; customers

6. 6 © NOKIA Stocholm/15.1.2001/EO 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

7. 7 © NOKIA Stocholm/15.1.2001/EO Fundamental changes taking place Globalization, knowledge-based economies, digital revolution Economy-wide impact on all players business, individuals and societies alike

8. 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 8 © NOKIAStockholm/15.1.2001/EO

9. 9 © NOKIA Stocholm/15.1.2001/EO Reconfigurable business systems Business Opportunities Business & Product roadmaps Supplier/ Partner Customer MARKETS RESPONSIBLE BUSINESSES COMMON BUSINESS PLATFORM Process 1 Process 2 Process 3 Core Business Processes Modular IT-platform Organizational Architecture for the Web-age Corporate Culture

10. 10 © NOKIA Stocholm/15.1.2001/EO A Challenge for Individuals Competence Curiosity Courage Social responsibility Respect for diversity

11. 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 11 © NOKIAStockholm/15.1.2001/EO

12. 12 © NOKIA Stocholm/15.1.2001/EO An Example: a New Mission for Universities Research Education Knowledge sharing University

13. 13 © NOKIA Stocholm/15.1.2001/EO Sharing Knowledge between Companies and Universities R&D Cooperatio n Recruitme nt Education and training Cooperation benefits both parties, but independent basic and applied research in universities is equally important

14. 14 © NOKIA Stocholm/15.1.2001/EO 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

15. 15 © NOKIA Stocholm/15.1.2001/EO A New Role for Innovation Systems STI Policies Corporate Governance Framework conditions Innov. system Macroeconomic Stability New organization and management principles Knowledge Sharing Regulatory and institutional Reforms Entrepreneurship

16. 16 © NOKIA Stocholm/15.1.2001/EO Thank you