1. Innovation Processes in Transition; SMEs
by Erkki Ormala
Professor of Innovation Management
Aalto University, Business School

2. Innovation processes in SMEs
Involves all the elements of innovation process
But is not formally organized
Informal dialogue with key persons
Close customer orientation

3. Framework Conditions for High Growth Innovative Companies (Horizon 2020)
Embrace an ambitious integrated approach to spur HGIEs growth
Formulate dedicated policies in which life cycle support and scalability are key: Firms need different support at different stages of their life cycle
Address weakest links and framework conditions that matter most
Co-shape and improve the functioning and resilience of entrepreneurial (eco-)systems
The EU has a key role to play, especially in the domain Market Conditions, and to a lesser extent also Regulatory Framework, Creation and Diffusion of Knowledge and Human Capital/ Entrepreneurial Capabilities
flow of talent and brain gain in favor of the EU
The most ambitious look beyond borders

4. Elements of Favorable Innovation Environment; critical elements for SMEs
Good understanding
of the changing landscape
Access to top-level
research and high quality experts
Access to market;
Cost efficiency
Macro economic stability
Easy access to
Broadband; ability
to use ICT
FIRM
Access to raw materials
Access to VC
funding and support
Rich fabric of private partners;
enabling vertical and horizontal integration
Favourable regulatory
environment; harmonized rules; IPR provisions; company statutes; taxation, etc
© NOKIA

5. Building a VC market
Public seed funding, risk sharing quarantees, education, exit market
Partnership funding, matching service, risk sharing. education
Public funding, education, incentives
1990s s and beyond

6. Venture capital investments by country
Million US dollars, 2014 or latest available year
Greece 0.26 Austria Australia
Slovenia 3.32 Denmark Sweden
Estonia 5.84 Ireland France
Luxembourg 5.86 Spain Korea
Slovak Republic 6.24 Belgium Germany
Czech Republic Norway United Kingdom
Poland Finland Israel
Hungary South Africa (2013) Canada
Italy Switzerland Japan (2013)
New Zealand Netherlands Total Europe
Portugal Russian Federation United States

7. Small Business Investment Company in the US (SBIC)
Established 1958
Direct investments in VC funds and quarantees
Last year 4 billion US$
Profitable

8. StartUp Health
StartUp Health is 6 years into a 25 year mission. We're organizing and supporting a global Army of Health Transformers to achieve 10 Health Moonshots. Together we will improve the health and wellbeing of everyone in the world
12 billion $
Global game
First team outside US in Finland

9. Plug and Play; Silicon Valley in a Box
Private business incubator
300 companies
Other locations: San Diego, Canada, Jordan, Singapore
Weekly meetings with VC companies and experienced industry leaders
Big company sponsors
Ten times better than the current competitive offering
Transfluent

10. WeXelarate Austria Vienna
A new business incubator
Foundation, Company driven and funded
Thriving startups; mentoring and partnering with leading companies, providing network of investors, joint office space; providing future visions, demo days and inspiring dinings  

11. Venture capital in Finland
TEKES: R&D, Organization and process development, Internationalization; Rapid growth; venture investements 200k€->500k€->1000k€
Vision+: new partnering model; a revenue shared business model without dilution
Tax incentive: private persons can deduct losses up to 200 k€ (terminated 2015)

12. Partnering Partnering is a key to success for SMEs
Patnering can take many different forms: customers (Delfoi/Valmet), platform providers (Rovio, Supercell) , subcontractors, etc
IPR plays a significant role
Internationalization is a big step where a global partner can help a lot

13. Skill Shortage
Twenty-seven per cent of businesses in Europe reported that they had left an entry-level vacancy open over the past year because no one with the right skills could be recruited. Only education providers were confident that the young people they trained had the skills they needed to equip them for work: 74 per cent believed their graduates were prepared for work but only 38 per cent of youth and 35 per cent of employers agreed. (McKinsey, FT 13 January, 2014)

14. eSkills
Users must have the necessary digital skills. Many European citizens and enterprises currently do not use IT sufficiently. This results in a growing difficulty in filling digital jobs. In 2011, the European Union was faced with unfilled vacancies in the ICT sector; if this trend is not checked, there could be as many as unfilled vacancies by This skills mismatch is detrimental to our economic and social policy objectives.
(EUROPEA COUCIL 24/25 OCTOBER 2013; CONCLUSIOS)

15. Aalto University ecosystem
Aalto Start-up Center
A GRID
Research and Innovation Services
Aalto Executive Education
Impact Iglu
Aalto University
activities
Energy Platform
Digi Platform
Living+ Platform
Health Platform
Health Factory
Design Factory
Aalto Ventures Program
Product Development Project
AddLab
FabLab
Aalto Studios
Aalto University
student activities
Startup Life
Kiuas – Team Up, Incubator, Accelerator
FallUp
Slush
Aalto Entrepreneurship Society
Startup Sauna Space
Startup Sauna Accelerator Program
Dash
Aalto Univeristy
Partner activities
Health Capital Helsinki
Urban mill
EIT KIC
Digital
EIT KIC Climate
EIT KIC
Raw Materials
ESA BIC
(2017)
= space or place

16. Entrepreur Ecosystem 70-100new companies every year
500 during the five first years
Half of all university startups in Finalnd come from Aalto
MIT has estimated that Aalto among the best five in the world
AaltoES
Startup
Sauna
ACE
Univeristy
Startups in
Finland
ASUC
* Graham, Ruth (2014) Creating university-based entrepreneurial ecosystems: Evidence from emerging world leaders. MIT-Skoltech Initiative, Massachusetts Institute of Technology, USA.

17. World class startup-event: 17 500 participants
live stream participants
2 300 startup companies
1 100 investors
600 journalists from 120 countries
Organized by StartupSauna
Vaikuttavuus

18. Any questions?
Thank you