TO KNOWLEDGE ECONOMY

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Oct 19, 2013 (3 years and 9 months ago)

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Stellenbosch University, Sasol Art Gallery

Stellenbosch, South Africa, 9 May 2007




UNIVERSITIES’ CONTRIBUTION

TO KNOWLEDGE ECONOMY



Professor Jorma Routti

CIM Creative Industries Management & Helsinki University of Technology

jorma.routti@cimfunds.com

jorma.routti@hut.fi


Former President of Sitra & Director General of Research DG of European Commision

Finland

Europe

World

0

2

4

6

8

10

12

14

16

2003

2005

2007

2009

2011

2013

2015

Trillions of 1995

international $

India

China

Brazil

Canada

France

Germany

Italy

Japan

Mexico

Russian Federation

United Kingdom

United States

India

China

United States

Japan

Germany

United

Kingdom

France

Italy

Canada

Mexico

Russian


Federation

Brazil


Real GDP (PPP): Projections 2004
-
2015 (Using 1991
-
2003 Average Growth Rates)

©cjd

Manufacturing Output by Region in

1750
-
2005, % of world total

East Asia: China, Japan, India

North America: USA, Canada

Europe: Germany, Great Britain,
France, Italy, Spain, Sweden,
Belgium, Switzerland

Sources: Bairoch (1982), UNSD,
ETLA

%

First Unbundling of Industries 1950
-
2000

Second Unbundling of Services 2000
-


Lisbon strategy

Research

Growth

and Jobs

Education

Innovation

S&T contributes to the
Lisbon

objectives: economic
growth
,
employment

creation,
environmental

protection,
social

challenges: fight
poverty
, improve human
health

and
quality

of life (GSM, remote working, safe roads, etc.)




9 Thematic Priorities

1.
Health

2.
Food,

agriculture

and

biotechnology

3.
Information

and

communication

technologies

4.
Nanosciences, nanotechnologies, materials and new production technologies

5.
Energy

6.
Environment

(including

climate

change)

7.
Transport

(including

aeronautics)

8.
Socio
-
economic

sciences

and

the

humanities

9.
Security

and

space


+

Euratom
:

Fusion

energy

research,

nuclear

fission

and

radiation

protection

Cooperation



Collaborative research

Joint Technology


Initiatives

Global Monitoring

for Environment

and Security

Hydrogen

and Fuel Cells for a

Sustainable Energy

Future

Towards new

Nanoelectronics

Approaches

Embedded systems

Aeronautics and

Air Transport

Innovative Medicines

for the Citizens

of Europe

Other possible themes to
be identified later…

The Four Pillars of the Knowledge Economy

Education

Innovation

Information
Infrastructure

Economic and
Institutional
Regime

Strong Correlation: GDP/Capita & KEI

Source: KAM

Africa GDP/capita = $2624

Africa

Stages of Industrial and Economic Development

FOREST
-
BASED INDUSTRIES

MACHINERY, ENGIN. IND
.

FOREST
-
BASED IND

ICT, ELECTRONICS

MACHINERY, ENG.

FOREST
-
BASED IND

CHEMICALS

R&D expenditure, % of GDP


Industrial Production

at 2000 prices

Sources: Statistics Finland, ETLA.

Telecommunications and Nokia's Change

1988

1998

Mobile Phones 60%

Infrastructure 33%

Other 7%

Floorings 1%

Chemicals 2%

Machinery 4%

Electrical

Wholesale 4%

Rubber 6%

Information Systems 23%

Cables 9%

Paper 10%

Consumer Electronics 31%




Mobile Telephones 5%

Telecommunications 5%

2000

Net sales USD 5.2

billion 1988 Market capitalization
USD 1.4 billion at year end 1988

Net sales USD 19.9 billion 1999

Market capitalization USD 236.5 billion, as of February 28th
2000

Services in the Mobile Information Society

Information

Entertainment

e
-
shopping

and banking

Voice

Corporate access and e
-
mail

e
-
education

Video

MARKETS



quality


competitiveness



price


competitiveness



environmental


expertise



A11/ 99
-
08

Securing competitiveness in

the Forest Industry

FORESTRY

CONSTRUCTION AND

WOOD TECHNOLOGY



modification of wood



construction


technology and


architecture



logistics, assembly

MANUFACTURING
TECHNOLOGY



forestry machines



process and production machinery



material technology

BIOTECHNOLOGY



enzymes



rot prevention



gene technology

ENERGY AND ENVIRON
-

MENTAL
TECHNOLOGY



biofuels, combustion


technology



ecobalances



closed cycles



energy
-
saving and


emissions

CHEMICAL TECHNOLOGY



paper and bleaching


chemicals



surface treatment


substances



pigments, adhesives

INFORMATION

TECHNOLOGY



sensors, mea

suring


and

control



computational


intelligence,


simulation and


machine vision



multimedia and


telecommunication



tomography

Co
-
operation between companies and universities and research institutes

Norway

UK

Sweden

FINLAND

Portugal

Austria

Netherlands

Ireland

Italy

France

Denmark

Germany

Belgium

EU

Norway

UK

Sweden

FINLAND

Portugal

Austria

Netherlands

Ireland

Italy

France

Denmark

Germany

Belgium

EU

0

20

40

60 %

Share of innovative companies

having co
-
operation agreements

with universities (1994
-
1996)

Share of innovative companies having

co
-
operation agreements with public

research institutes (1994
-
1996)

Source: Eurostat, Enterprise DG, 2nd Community Innovation
Survey

J05/ 00
-
06

0

20

40

60 %

Science Parks in 1980


2000 and CoE concept

University

Company


in 1980’s


Companies

Universities

Science Park

in early
1990’s

Companies


Science Park


Centre of Expertise Programme


Universities




Polytechnics

in late 1990’s and 2000’s

Regional networking with partners from Oulu in
electronics and telecommunications programmes

DM 58620

03
-
2004 Copyright © Tekes

Includes partners who participated in at

least three projects in Tekes Electronics

and Telecommunications technology programmes.

Lappeenranta University of Technology (Lappeenranta)

Salcomp Oy (Kemijärvi)

CCC (Oulu)

Sonera (Helsinki)

Nokia Mobile Phones (Oulu)

National Semiconductor Finland Oy,

former Fincitec Oy (Kemi)

University of Oulu (Oulu)

Efore Oy (Helsinki)

Projekti
-
Insinöörit Oy (Helsinki)

Cybelius Software Oy (Oulu)

Teleste (Turku)

Tampere University of Technology (Tampere)

Nokia Networks (Oulu)

ADC Telecommunications Oy (Oulu)

VTT, Technical Research

Centre of Finland (Helsinki)

Helsinki University of Technology (Espoo)

JOT Automation Oy (Oulu)

Nokia Research Center (Helsinki)

VTT, Technical Research

Centre of Finland (Oulu)

Extrabit Oy (Oulu)

ABB (Helsinki)

NetHawk Oy (Oulu)

Elektrobit Oy (Oulu)

Vaisala Oyj (Helsinki)

Polar Electro Oy (Oulu)

Filtronic LK Oy (Oulu)

Aspocomp Oy (Helsinki)

Elcoteq Network Oyj (Lohja)

Planar Systems Oy (Helsinki)

Ultraprint Oy (Oulu)

Suunto Oy (Helsinki)

Picopak (Lohja)

Nokia Mobile Phones (Salo)

Large companies (more than 500 employees) receive 16 % of Tekes total funding and 26 % of Tekes

business R&D funding. Large companies co
-
finance Tekes R&D projects in universities, public

research institutes and SMEs more than Tekes finances their projects.

This system is managed by Tekes funding criteria. The system increases the quality of R&D projects

and has important externalities in:



knowledge transfer between large companies and research organisations



development of SMEs as subcontractors and strategic partners of large companies

Funding flows of Tekes funded R&D projects

between large companies (more than 500

employees), research organisations and SMEs

DM 58774

08
-
2003 Copyright © Tekes

+ 60



-

31


-

15


-

16

-

2

Universities

Public research


centres

SMEs

Tekes

60 mill.

euros

Project

volume

180 mill. euros

31 mill. euros

15 mill. euros

16 mill. euros

Annual average 2000
-
2002

Funding flows to/from large companies,

million euros


Tekes funding to R&D projects

of large companies


Large companies projects buy

research services from research

organisations


Large companies projects use

SMEs as subcontractors


Large companies co
-
finance

public research projects


Net flow

Large companies

The stimulating effect of public funding on R&D

5

10

15

20

25

FINLAND

Sweden

OECD

Max

USA

Increased public funding
strengthens the stimulating effect

Growth of the stimulating effect
decreases

Public funding compensates
corporate efforts

The chart is directional and the figures include uncertainty.

Share of public funding

in corporate

R&D spending,

%

The stimulating effect of

public funding on R&D

Source: OECD, Science, Technology and Industry Outlook 2000.


(statistics from 17 countries, compiled over a period of 15 years).

DM 38065

04
-
2002 Copyright © Tekes

Innovation and Funding System

Private

Basic research

Applied research

Business R&D

Business development

Marketing

Internationalisation

Company R&D


Business Angels


Public

Universities

Research Institutes

Technology Funding


Venture Funds




Sectorial research

Research

Councils


Science Parks

s

SOCIAL & HUMAN CAPITAL


TECHNOLOGY & INNOVATION



RESEARCH CAPACI TY

ABSORTION CAPACITY


SUPPLY


USERS

CREATORS

DEMAND



s

SOCIAL & HUMAN CAPITAL


TECHNOLOGY & INNOVATION


RESEARCH CAPACI TY

ABSORTION CAPACITY


SUPPLY


USERS

CREATORS

DEMAND

JAPAN

USA

IRL

ITA

SWE

DE

FR

UK

FIN

ITER

International Thermonuclear Experimental Reactor

Cleaner Energy for our Planet






Main ITER Parameters





Total Fusion Power (MW)

500


Q
-

Fusion Power/Auxiliary

Heating Power


10


Average (1 MeV) neutron

wall loading (MW/m2)


0.57



Plasma major radius (m)

6.2



Plasma minor radius (m)

2.0



Plasma Current (MAmpere)

15



Toroidal Field at 6.2 m

radius(T)



5.3



Plasma Volume (m3)


837



Installed auxiliary heating/current

drive power (MW)


73















TIME


ENERGY
-

INFORMATION

E = 0

I = 0

T = 0

I = max

T = max

E = max

E

enlightenment


W

wisdom


U

understanding


K

knowledge


I

information


D

data



Jorma.Routti@cimfunds.com