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Tekes the Finnish Funding Agency

for Technology and Innovation

5th May, 2011Vilnius, Lithuania

Way to successful industry related innovationsMARKET-DRIVEN INNOVATIONS

Esko Virtanen

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Tekes - what do we do and why

Examples - of successful R&D work

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How do we work?

Tekes encourages companies to do challenging R&D • Funding for the creation of new know-how and development of products,

processes and service or business concepts

• We accept more risks than private financiers

Tekes facilitates collaboration and networking• between small and large businesses

• industry and the academia

• public and private organisations

• globally – nationally – regionally

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• Priority to growth-seeking, innovative SME’s

• Increased focus on forerunners and strategic innovations

• Customer success in global value networks• Services and non-technical contents equally

important as industry and technologies

• Tekes will be a more essential part of the innovation services cooperation network

• More customer-oriented and flexible approach

Strategy in a nutshell

Growth and wellbeing from renewal

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Strategic research areasdetermined by the Strategic

Centres for Science, Technology and

Innovation

Added value by solution-based services and intangible concepts

Business in global value networks

Renewing services and production by digital means

Naturalresources and

sustainableeconomy

Intelligentenvironments

Vitalityof people

Focus areas

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Examples - of successful R&D work

4 CASES

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Successful gaming industry one of Finland's strong points

Global gaming industry worth about USD 50 billion in 2009 (export value of the Finnish gaming industry about EUR 75 million)

Finnish international success stories such asAngry Birds, Habbo Hotel, Max Payne

Strong gaming culture (Assembly computerfestival) and technology know-how behind thesuccess

Digital distribution of games the next big thing Play Finland attracts international publishers

and investors Tekes has supported the Finnish gaming industry strongly

since 2001 www.playfinland.fi

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Lactose-free milk drinks

Milk-tasting, totally lactose-free products

Growing need on the global market, big share of the adult population is lactose intolerant

First products on the market in 2001 Patented products sold in 12 countries Turnover in 2009 over 100 million euros Selection includes sour milks, yoghurts,

creams, cottage cheeses and fats Tekes has partly funded R&D www.valio.fi

Valio Ltd

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Third generation demonstration biorefinery in operation

The company’s 3G biorefining demonstration plant utilizes agricultural residues

Production of pulp and paper fibres; also biofuels and biochemicals.

Concept rated by a World Bank report as economically and environmentally best

First license agreements with Chinese customers China the strongest market License and project contract with UPM-Kymmene Corporation www.chempolis.com

04-2009DM 32182

Chempolis Oy

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Deep collection gains world popularityMolok Oy

The deep collection system developed by Molok has spread around the world

Waste is held in an underground container; only a third of the container is visible

Deep collecting containers hold more waste than surface bins = longer intervals between emptying

Advantages of deep collection are economic and ecological Suited to collecting various kinds of waste Used at the Beijing Summer Olympics 60% of turnover exported, mainly to Europe and Scandinavia www.molok.com

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Half of the funded projects areinternationally networked

Any international company located in Finland is eligible for Tekes's funding, regardless of ownership.

International activities in projectsfunded by Tekes in 2006 - 2008

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Impacts of R&D funding

Tekes’ s clients have experienced more rapid growth than companies in the business register in general.Business Aid Database Creation: Final Report by the Working Group (2006)

R&D funding increases the growth, activeness in seeking patents and demand for labour of companies and reduces the likelihood of business closures and mergers.Hovi et al. (2006)

R&D funding has increased the growth of productivity and improvedemployment in companies with a well compensated R&D.Piekkola (2006)

Nearly two in three companies perceived Tekes funding to have helped the company increase its net sales.Pekkanen et al. (2004)

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Encouraging innovation environment

Growing investments in R&D – public and private

Active dialogue involves companies, research institutes and public sector

Innovation leader – one of the four innovation leaders in EuropeInnovation Union Scoreboard 2010

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Keep in touch!

Information about Finnish innovation environment, Tekes's activities

interesting publications and research and development projects

www.tekes.fi/en

Subscribe to Tekes Newsletter at

www.tekes.fi/en/newsletter