Tekes – Joy of innovation Pekka Soini, Director General Tekes Aalto Bit Bang

Finland is a great innovation environment  High investments in R&D – public and private  Highly skilled personnel, especially top level ICT and digital experts  Innovation leader: - EU, Innovation Union Scoreboard 2013: Sweden, Germany, Denmark and Finland are innovation leaders in the EU - WEF 2014: Finland 1 st in innovation, 4 th in global competitiveness  Active dialogue involves companies, research institutes and public sector DM

577 M€ Funding for companies and research organisations 577 million euros in ,010 funding applications 1,860 positive funding decisions Tekes – R&D and innovation funder with proven impact  Tekes is the main public funding organisation for R&D and innovation in Finland  Tekes funds leading edge research, development and innovation projects for future forerunners  The aim is to encourage the renewal, competitiveness, and sustainable growth of the national economy  Funding instruments: grants, loans and capital investments through Tekes Venture Capital Ltd DM % of company funding to SMEs

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Tekes’ funding for SMEs aiming to global markets Find out customer needs, pilot and test Plan internationalisation Digitalise business Develop new products, services and processes Develop organisation and business model Planning for global growth Research and development Demos and piloting Team Finland Explorer Team Finland Future Watch Tekes Programmes DM Team Finland LetsGrow

DM Tekes funding for start-ups R&D project funding Planning for international growth GO / NO GO GO / NO GO Funding for Young Innovative Companies Vigo Accelerators (10 private companies) Tekes investments in start-up venture funds (starts in 2014) GO / NO GO GO / NO GO

Example: Game industry development in Finland DM Birth of the Finnish game industry and first commercial products Assembly kick off First still existing game companies founded 1995 First Tekes’ funded game projects 2002 Nokia impact 2007 Total value exceeds EUR 2.2 billion Mobile gaming boom by Apple 2009 Angry Birds rise Supercell acquired with EUR 1.1 billion

The Wired Magazine lists Europe’s hottest startup companies. Most of the Finnish companies listed are part of the Tekes young innovative companies funding programme. Nanol Technologies Sumoing Beddit Diktamen Playraven Nexstim Nextgames Bitbar Technologies Team Onomatics 5th Wave Brands Nanol Technologies Sumoing Beddit Diktamen Playraven Nexstim Nextgames Bitbar Technologies Team Onomatics 5th Wave Brands Hot start-ups and growth companies in Finland DM Ranks 50 fastest growing tech companies in Finland More than 80 % of these companies have grown to international markets. Top 10 companies (Tekes customers bolded) 1. ePassi Payments (8,431%) 2. Tuxera (6,391%) 3. Valopaa (3,091%) 4. Alekstra (2,240%) 5. Diktamen (1,955%) 6. iLOQ (1,832%) 7. Anders Innovation (1,705%) 8. Efima (1,435%) 9. Eniram (945%) 10. Solinor (749%) (growth in 5 years, %)

Business from research ideas  Target to create growth companies from research ideas  The project group prepares the commercialisation of the research idea  Two possible paths: - setting up a new start-up - developing the idea into new business in an existing company DM

Innovation Mill – Recycling ideas  Unused ideas from big corporations   New startup or transfer to existing company  Big corporation gives the startup parallel rights to free utilization of the idea Results 98 companies, of these 78 startups 550 new jobs DM

Towards digital revolution Digitalisation will renew business and industry Creating a digital single market will boost Europe’s competitiveness Finland is an excellent experimentation lab Tekes has just made a significant investment in the digital revolution of Finland  5thGear  Industrial Internet  Bits of Health DM

Innovation funding with proven impact DM of the ten fastest- growing technology companies in Finland are Tekes customers In SMEs funded by Tekes, the annual growth of exports was in For every euro invested by Tekes, companies increase their own R&D expenditure by 2 euros over 80 % The annual growth of turnover in young innovative companies funded by Tekes was 150% Tekes has partly funded of well-known Finnish innovations 65% SMEs expect projects in 2013 to produce billion euros in turnover during the target year 1, % 840 Projects that were completed in 2012 produced academic theses Projects that were completed in 2013 generated products, services or processes of Tekes customers state that the Tekes funding was a significant factor in their success In SMEs funded by Tekes, the increase of jobs was units faster than in other SMEs in % Projects that were completed in 2013 resulted in patents or patent applications 1,030 In SMEs funded by Tekes, the increase of turnover was units faster than in other SMEs in %