World Bank Country Office, Kiev, Ukraine

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World Bank Country Office, Kiev, Ukraine

Ukraine Knowledge Economy Training Initiative

Video Conference, ILO, Geneva, Switzerland, 22 January 2008




CREATING FINLAND’S KNOWLEDGE ECONOMY



Professor Jorma Routti

Helsinki University of Technology & CIM Creative Industries Management

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

www.cimfunds.com

jorma.routti@cimfunds.com

Finland

Europe

World

Stages of Industrial and Economic Development

FOREST
-
BASED INDUSTRIES

MACHINERY, ENGIN. IND
.

FOREST
-
BASED IND

ICT, ELECTRONICS

MACHINERY, ENG.

FOREST
-
BASED IND

CHEMICALS

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.)


Finland

Basic Scorecard

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

Forest Industry Cluster & Niche Strategies

Brasil, South Africa, China, Indonesia

Manufacturing and Operations


Valmet Paper Machines


Design, manufacturing
and remote operations

Production



Focus on specific market
segments and products


World wide marketing


Paper, cardboard,
packaging material


Poyry Design and
Consulting


Pulp Mills Sunds

Design, manufacting and
maintenance

Timberjack


Forest Harvestors

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 %

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


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


CURRENT STATE


V I S I O N


S W

O T

ECONOMY

SAFETY

SUSTAINABILITY

SOLIDARITY




SKENARIOS FOR

OPERATING ENVIRONMENT

CONSENSUS PROGRAMS IN FINLAND


ECONOMIC POLICY AND NATIONAL STRATEGIES


Participants:


Members of Parliament, Media Leaders, Civil Servants




Labour Movement, Industry Organizations, Academia


Objectives:


Growth, Employment, Balance, Low Inflation


Instruments:

Fiscal Policy, Taxation, Incentives,



Echange Rates, Interest Rates


Topics:


Globalization, Integration, Trade, Social Policy,


Regional Policy, Education, Research,



Industry, Agriculture, Banking, Environment, etc.


Government:

Consencus Building, Trade
-
offs



Simulation Models, Economic Advisors


Adoption:

Baltic Countries, New EU Members, Latin America, WB