IV Regional Innovation Forum of Pomerania Voivodeship Technology transfer and science & technology parks Finnish Experience Dr. Heikki Kotilainen Deputy Director General Tekes Gdansk 10. June, 2005

DEFINITION OF INNOVATION RESEARCH, KNOWLEDGE, IDEA, TECHNOLOGY INVENTION INNOVATION IMITATION BUSINESS Innovation def.© S&T Balance ”If innovation is the commercial application of existing knowledge in a new context, technologically driven innovation is only one form of this. Innovation is distinct from research, which results in new knowledge and from the entrepreneurial function that spots market opportunities for products and services. It is the result of the interaction of these two functions” ”Innovate for a competitive Europe”, A new Action Plan for Innovation, European Commission, 2004 CUSTOMERS MARKETS BUSINESS MODELS

What means tech-transfer? Direct University ---- Industry Does it work? Intermediaries University --- Science park --- Industry Intermediaries with Business Approach (New firm creation) University – incubator/open lab ---science park ---Industry Linear model of innovation!!

Utilising the Research Organisation How technology transfer organisations like to use it PROJECTS TRANSFERBUSINESS OPTIONS

Mis-managing the Research Organisation How business managers like to use it SOLUTIONS PROJECTS PROBLEMS © Philips

Not-managing the Research Organisation How researchers like to be managed BUSINESS OPTIONS PROJECTS IDEAS © Philips

Assessment of Project Proposals Company point of view Long range objectives Ambition of Proposal Time to Deliver According to Philips

IDEA MARKET WHAT IS POSSIBLE? 5-10 YEARS CAN WE DO IT? 3-5 YEARS HOW WE DO IT? 1-2 YEARS IS IT ATTRACTIVE?DO WE WANT IT? ALLOCATION OF RESOURCES UNCERTAINTY Source: Research&Technology Management, Sept. Oct. 1997,p.53 UNCERTAINTIES IN INNOVATION

The Interface between Research and Industry CURIOSITY KNOWLEDGE CREATION SCIENTIFIC EXCELLENCE PUBLICATIONS CUSTOMER NEEDS MARKET&MARKETABILITY STRATEGY PRODUCT PORTFOLIO R&D PORTFOLIO COMPETENCE MONEY&FINANCING IPR REVENUES RESEARCHINDUSTRY TECHNOLOGY TRANSFER R&I interface

PROCESS CHARACTER OF TECHNOLOGY TRANSFER CURIOSITY KNOWLEDGE CREATION SCIENTIFIC EXCELLENCE PUBLICATIONS CUSTOMER NEEDS MARKET& MARKETABILITY STRATEGY PRODUCT PORTFOLIO R&D PORTFOLIO COMPETENCE MONEY& FINANCING IPR REVENUES RESEARCHINDUSTRY TECHNOLOGY TRANSFER Tranfer process ADAPTATION OF SCIENTIFIC RESULTS FOR TECHNOLOGICAL USE ”Requirement for technological success” ADAPTATION OF TECHNOLOGICAL KNOWLEDGE FOR INDUSTRIAL USE ”Requirement for market success” (INCUBATOR) (SCIENCE/INDUSTRY PARK)

INNOVATION PROCESS Three stages of innovation process What business? Alternative concepts Testing of concepts Initial development Definition and specification of a product Functional definition and design of the product Planning of production and engineering Study, clarify INITIAL CONCEPT Select alternatives DESIGNREALISATION Product development and design RUN!!! Decision for realisation Ideas & Wishes from Market Technological Ideas and Opportunities Concurrent conceptionConcurrent engineering Costs start to run! © S&T Balance/IMDInnov. vaiheet

Throughput of Innovation Business model Income model Business plan Business start Pilot production Test marketing 1 Launch of production 10 MARKETING INNOVATION 100 IDEA INVENTION RESEARCH ENTERPRISE Finance - public.private Contacts - knowledge -information Finance - seed -public Partnership - knowledge -networking -international contacts Regulations Market research Finance - R&D -public Partnership - university -partner company -international contacts Coaching Finance - production -VC -semipublic Partnership - marketing -international contacts Coaching Finance - investments -factory -private Finance - investors (shares) Marketing network The Creation of Business is Not Necessarily a Local Phenomenon Partnership - subcontractors

TECHNOLOGY – INNOVATION - MARKET TECHNOLOGY CUSTOMER NEEDS BUSINESS MODELS INNOVATION MARKET The closeness of technology and market determines the success Concurrent technology development and marketing leads to success stories and to real innovations T-I-M/ HK© S&T Balance

How to avoid obstacles of the technology transfer process? Case Finland Is technology transfer process like pushing with a rope? Can we avoid technology transfer?

Tekes instruments for R&D National technology programmes Universities&companies networking Direct company R&D funding Grants, loans, capital loans University cooperation Direct research funding of universities and research institutes Company cooperation Entrepreneurship funding TULI- research to market LIKSA- start-up business plan Equity fund for start-ups (SBIR) Technology transfer TUPAS-transfer to SME

RESEARCH PARADIGMS Old paradigm (Linear model) BASIC RESEARCH APPLIED RESEARCH DEVELOPMENT New paradigm (Concurrent model) DEMAND SCIENTIFIC UNDERSTANDING TECHNOLOGICAL SOLUTIONS PROBLEM SOLVING BUSINESS OPTIONS MARKET Basic research Applied research Development SOCIETAL & BUSINESS CHALLENGES TTKK TM 15/HK © S&T Balance

PRIORITIES OF THE INNOVATION SYSTEM Case: Finland RESEARCHFACILITATORENTERPRISES QUALITY: APPROPRIATE STANDARD RELEVANCE EFFECTIVENESS PUBLIC FINANCE NATIONAL PROGRAMMES VENTURE CAPITAL IPR PROTECTION ARTICULATION OF NEEDS APPROPRIATE TECHNOLOGY ABSORB NEW TECHNOLOGIES Pres/ priorit,innovation system SUPPLYDEMAND

Technology programmes #54280 Steering enterprices Tekes preparing co-ordi- nating decision making Grants Loans Capital loans Company R&D projects Public research projects Synergy Networking Concurrent development Part financing Implementation of results of public research is based on parallel execution and networking with company projects. 23on-going programmes in 2004 with a total extent of EUR 1.3 billion a programme lasts typically 3–5 years annually 2000 company participations annually 800 research unit participations Tekes usually finances - 60–80 % of university projects - 25–50 % of company projects

Networking in corporate R&D projects funded by Tekes Share of networked projects, % DM Copyright © Tekes Part of technology programme Subcontracting from research institutes International cooperation Large company subcontracting from SMEs Total corporate R&D projects

Conclusions Tech-transfer is TRADE! Selling IPR (patents, licences) Business for intermediaries Effective tech-transfer Joint projects/programmes Transfer of people

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