Benchmarking Report NATIONAL INOVATION SYSTEM Findland Germany

Dr. Fathoni Moehtadi On behalf of National Inovation Council, Indonesia October, 5th 15th 2011

PREFACE
While Indonesia struggles with How do we forward our innovation?, Finlandia has been rated in Global Innovation Index since 2009. While Indonesia struggles with individual institutions innovation system, Germany has agreed among the institutes to bring a colour to a national innovation system.

INNOVATION WORLD RANKING

INGEAD Global WEF Innovation Innovation Union Information Technology No Innovation Index 2011 Factor 2011 Scoreboard EU 2010 Innovation Foundation 2011 1 Switzerland 2 Swedia 3 Singapore 4 Hongkong 5 Finlandia 6 Denmark 7 USA 8 Canada 9 Netherland 10 UK Switzerland Swedia Finlandia Japan USA Israel Germany Singapore Taiwan Denmark Switzerland Swedia Denmark Finlandia Germany UK Belgium Australia Israel Netherland Singapore Finlandia Sweden USA Switzerland UK Canada Denmark Netherland Japan

AGENDA
1 Finland

A
B C 2 Germany A B C D E F G

Research & Inovation Council of Finland The Science & Technology Policy Council
TEKES, Finnish Fundding Agency

Federal Ministry of Education & Research VDI VDE Innovation + Technick GmbH Steinbeis University Fraunhofer IPK Let ZENIT GIZ, German International Cooperation

KFW Bankengruppe

AGENDA
1 Finland

A
B C 2 Germany A B C D E F G

Research & Inovation Council of Finland The Science & Technology Policy Council
TEKES, Finnish Fundding Agency

Federal Ministry of Education & Research VDI VDE Innovation + Technick GmbH Steinbeis University Fraunhofer IPK Let ZENIT GIZ, German International Cooperation

KFW Bankengruppe

Research and Innovation Policy Guidelines for 20112015

Developing the Innovation System Requires
Structures are reformed and organizational, operational and regional fragmentation will be reduced The co-ordination and steering of policy actions will be strengthened at government level The prioritization & selection of subject matters and contents will be undertaken The exploitation of ERI activities will be promoted extensively Universities, polytechnics and public R&D institutes are supported in raising their profiles and specializing in their fields of strength; the quality of research will be improved Multi-lateral cooperation will be enhanced & the division of labor between HEIs, public R&D institutes and enterprises clarified Steering systems, incentives and the regulatory environment will be developed The efficiency and effectiveness of the business & innovation service system will be improved The position of the SME sector within the innovation system will be strengthened A long-term infrastructure policy will be created and the wide use of public data enhanced Evaluation expertise and the exploitation of evaluation data will be strengthened

Research and Innovation Policy Guidelines for 20112015

Development Principles for Public Research and Innovation Funding
Funding will be long-term and predictable, and allocated under transparent criteria The share of public funding of total R&D funding will be raised (26% in 2009) The share of public competitive funding will not increase (competitive vs. direct budget funding in 2010 was 48:52) Long-term skills development requires a stable funding base: the diverse and strong education & science base of the university system will be safeguarded. The specialization of HEIs within their fields of strength will be accelerated through funding and effective incentives; the fragmentation of education and research will be reduced New and current resources are directed towards the most important targets: strengths and selected priority fields; SHOKs; infrastructures; the research career system; internationalization Funding promotes the application, introduction and commercialization of the ERI results

Finnish Innovation System in International Comparison INPUT INDICATORS

Finnish Innovation System in International Comparison OUTPUT INDICATORS

Finnish National Strategy Research & Innovation

Change factors in the operating environment
The strategy of Finland is to ensure sustainable and balanced for social and economic development. It is crucial that economic development is connected to other development activities in society and the environment, as well as increasing the wellbeing of the population. The basic prerequisite is to increase productivity. This applies to all sectors, fields and actors of the economy, not just those involved in global, open competition.

From traditional R&D towards a broad-based system of research and innovation: Dynamics of the interactive relations between actors and functions
Structural reform of higher education institutions, amending the financial and administrative status of universities, the structural and operational development of the research institute sector, preparatory work on an infrastructure policy and the research career system, the creation and introduction of new measures and operating models for the innovation policy (incl. demandand useroriented measures), as well as supporting Strategic Centres for Science, Technology and Innovation (SHOK)

Strategic Development Policies

Operational Priorities
Strong scientific research and useful applications Growth entrepreneurship, support for businesses and innovations Service Demandand user-orientation Utilisation and application competencies Evaluation The European Union

Structural Reforms: Supporting Innovation Environments

Structures of higher education institutions Reforming the public research institute sector Research infrastructures Access to and use of public data Attractive poles of excellence Raise educational level and program varieties Determine higher education specialization Implement high-quality research career system

Strengthening Human Resources

AGENDA
1 Finland

A
B C 2 Germany A B C D E F G

Research & Inovation Council of Finland The Science & Technology Policy Council
TEKES, Finnish Fundding Agency

Federal Ministry of Education & Research VDI VDE Innovation + Technick GmbH Steinbeis University Fraunhofer IPK Let ZENIT GIZ, German International Cooperation

KFW Bankengruppe

Internationalization of Finnish Education, Research &Innovation (ERI)

ERI policies have been implemented in a sustained manner; ERI systems are of a high quality; Structures and activity of public education and R&D organizations are being reformed; Financing of R&D has been developing favorably for a long time; Level of education among the population is high; large number of R&D personnel; Quality and impact or research is of a fairly good standard; high activity in international patenting; Close partnership between public and private actors; lively collaboration between business community and public research; The economy and business and industry focus on knowledge-intensive growth sectors; knowledge-intensive business has remained in Finland; Foresight-oriented approach to major social and environmental changes (e.g. challenges in social and health services, energy supply and management); Sustainable development important; environmental issues crucial; competence and know-how in environment and energy technology are world-class; Strong culture and tradition also social capital: openness, interaction, and networking; Good reputation as a country: trustworthy, safe (incl. stable business environment, public sector, administration).

Finnish ERI Internationalization Benefits

Make international research findings and knowledge swiftly available domestically Pool resources in ERI activities for which no individual country has sufficient financial and intellectual resources Manage and share risks and costs, gain multilateral benefit, which may be scientific, technological, social and/or cultural and which in environmental terms are sustainable, safeguarding diversity Combine national knowledge areas and units with small-scale resources into larger, internationally networked entities Reduce the fragmentation of research activities and form shared views of research problems, approaches and objectives Promote research and the creation of innovations in favorable Improve the quality andmultidisciplinary and multicultural networks. environments, such as international compatibility of research Promote extensive utilization of research findings Create internationally attractive, creative research and innovation environments Advance new procedures and modes of action (demand- and user-orientation) and policy supporting them Improve the visibility and international recognition and appreciation of research Improve the quality and increase the volume of PhD training Attract new knowledge, investment and R&D-intensive Factors of Change and Development business Trends in the Operational

AGENDA
1 Finland

A
B C 2 Germany A B C D E F G

Research & Inovation Council of Finland The Science & Technology Policy Council
TEKES, Finnish Fundding Agency

Federal Ministry of Education & Research VDI VDE Innovation + Technick GmbH Steinbeis University Fraunhofer IPK Let ZENIT GIZ, German International Cooperation

KFW Bankengruppe

Finland R&D Funding

Data sources by Finland Statistics, proceed by TEKES

Finland R&D Expenditure

Companies

Funding of Finland R&D Expenditure

Number of Companies Carrying Out R&D

Tekes R&D Funding in 2010

Total 633 EUR million and 1,896 projects

Year

Strategy

Focus on forerunners will cut down on the number of projects funded and means increased financing for individual projects Increased funding for young companies will mean higher risks for Tekes and result in greater benefits and also more failures Services and industries as well as technological and intangible development will be equally important International cooperation as a cross-cutting goal Tekes funds the internationalisation of R&D and innovation and the planning phase of globalisation of business activities More flexible funding for innovative experiments will bolster the role of users and speed up the takeup of research outcomes Customer-driven value network programmes and projects will underline focus on customers and demand Novel operating models in public research will generate new business activities and areas of expertise crucial for

Enterprises and public research organisations operating in Finland Developers of public services and third-sector actors Forerunners of R&D and innovation activities that renew business operations and the business sector SMEs aiming for significant growth are a key customer group Foreign actors who prepare Encourages the customers to engage in their establishment may diverse innovation activitiesfunding receive a preliminary and renewal Encourages customer initiatives are on decision the same starting line regardless of the geographical area Shares justified risks of innovation activities Evaluates the projects and business plans of its customers (does not take part in preparation) Advises customers in the use of other national and international funding sources or puts together joint service solutions

Success Stories
Molok Oy Advantages of deep collection (various kinds of waste) are economic and ecological

Focus Areas
Wellbeing and health Knowledge society for all Clean energy Scarce resources Built environment Intelligent system and environment Service business and service innovations Interactive media

Stora Enso Wood Products Effex is a knotless modern interior designer panel made of Nordic pine

Chempolis Oy 3rd generation of bio-refining demonstration plant utilizes agricultural residues, rated by a World Bank

AGENDA
1 Finland

A
B C 2 Germany A B C D E F G

Research & Inovation Council of Finland The Science & Technology Policy Council
TEKES, Finnish Fundding Agency

Federal Ministry of Education & Research VDI VDE Innovation + Technick GmbH Steinbeis University Fraunhofer IPK Let ZENIT GIZ, German International Cooperation

KFW Bankengruppe

BMBF Federal Ministry of Education & Research

BMBF performs a variety of tasks within the scope of its constitutional responsibilities: Legislation governing nonschool vocational training and continuing education Research funding in all fields of science Support for young researchers Promotion of international exchanges in initial and continuing training, in higher education and in research Lagislation governing training assistance and its funding Promotion of the gifted and talented

BMBF Departemental Buget 30; EUR 11.646 million; Areas of 2011 responsibility

BMBF Main Focus

High-Tech Strategy for Germany The Federal Governement has defined a national strategy for innovation policy trough its High-Tech Strategy. All partners in the area of business, science and politics are working together to meet the challengees posed by the global market. High-Tech Strategy defines the aims of such interaction and outlines new forms of cooperation. The idea behind the plan is to gain more freedom for science and research. Germany A Talent Lab An especially large number of secondary school graduates will enter higher education in the coming years. These young youths represent an excellent opportunity for the country. BMBF aim is to make German lecture halls, laboratorie and workshops more appealing in international level. BMBF is also promoting particularly talented students and outstanding experts of tomorrow. Federal Governments Qualfication Initiative Individuals life chances and social participation depend on education and qualifications. Well-trained young people are the key to growth, prosperity, and progress in any society. BMBF makes every effort to ensure that people in German can develop their talents and abilities, regarding their origin or social status. Science and Democracy BMBF task is to promote science not just because of the economic benefits it provides, but also for basic research purposes. In the process, it is important that research always remain in dialogue with society as a whole. Afterall, many disciplines and their research results touch on peoples life concepts and social interaction. It is important that researchers also respond to the probing and critical questions posed by citizens, thus ensuring the democratic legitimacy of their

German High-Tech Strategy 2020

Strategic Action 2020
1. Research and innovation in leadingedge clusters 2. Promotion of cuttingedge research in the SME sector 3. Cutting-edge research and innovation in the regions 4. Development of the innovation landscape by the public sector 5. Development of innovation competencies

The CO2 neutral, energy-efficient and climate-adjusted city Intelligent re-organization of the energy supply Renewable resorces as an alternative to oil More internet for less energy More effective treatment of illness using individualized medicine Increased health as a result of an optimized diet Retaining independence into old age One milllion electric vehicles for Germany by 2020 More effective protection for communication networks Intelligence re-organization of the energy supply More internet for less energy Making the worlds knowledge digitally accessible and tangible

Strategic Actions 2020

Germanys Qualification Initiative
1. Reinforcing early childhood education 2. Vocational training qualifications at the end of the education chain 3. Recognizing foreign qualifications 4. Lifelong learning 5. Advancement scholarship

Science Years
2000 Year of Physics 2001 Year of Life Sciences 2002 Year of Earh Sciences 2003 Year of Chemistry 2004 Year of Technology 2005 Einstein Year 2006 Year of Information Technology 2007 Year of the Humanities 2008 Year of Mathematics 2009 Research Expedition Germany 2010 The Future of Energy 2011 Research for our Health

Universities & Researh Institutes

High-Tech Selected Projects

A health monitor inside your ear An in-ear sensor monitors risk factors for cardiovascular disease Effective aid against dementia Scientist are researching medication to treat Huntington and Alzheimers Securing evidence in the smallest possible area A gene chip helps by detecting blood poisoning at an early stage Living in an intelligent house Improved automation systems save costs and energy

Yes to decontamination, not to side effects Waste water sterilization procedure

Battening down the hatches Early warning system for severe weather conditions aims to prevent damage

AGENDA
1 Finland

A
B C 2 Germany A B C D E F G

Research & Inovation Council of Finland The Science & Technology Policy Council
TEKES, Finnish Fundding Agency

Ministry of Research & Education VDI VDE Innovation + Technick GmbH Steinbeis University Fraunhofer IPK Let ZENIT GIZ, German International Cooperation

KFW Bankengruppe

Innovation & Technology Organization

Analysing, Funding, Organizing
Provide a valuable basis for decision making
Political and economic decisions need sound expert know-how. Institute for Innovation and Technology (IIT), combines many competencies: Studies and analysis Concomitant research Evaluation and forecasting of technology and innovation policy programs Identification of leading technologies and the development of roadmaps Markets and policy concerned with social and technological developments. Assistance with the evaluation of results and its implementation

Putting innovation policy into action

Advancing the power of innovation in research and industry is the main objective of innovation policy. IIT supports in developing customers activities Manage offices and contact bureaus for public programmes Organise support mechanism to reduce innovation barriers Organise innovation policy competitions Establish and manage network in industrial policy fields Provide councelling for innovation policy Inform and network SME through

Innovation & Technology Organization

Analysing, Funding, Organizing

Make every innovation & technology funding a success story

Support programs to strengthen the German and European research and industrial sector as a project managing agency for Federal Republic of Germany, its federal state and the EU. Adress, inform and motivate scientific research and industry Quick and professional counselling on funding applicants Support and manage the funded projects and networks. Manage fund cashflow and controlling the use

CUSTOMERS
German Federal Ministries German Federal State Ministries European Commission Governments outside of Europe Bank and holding companies Industries Research institutions and universities Many other internaitonal and national clients

Innovation System
Fulfillment of political wishes/strategies High political reputation High impact on NIS and its actors Full control of programs and funds

POLICY

POLICY

MACRO

SCIENCE

INDUSTRY
SCIENCE

Innovation programs Innovation support institutions

MESO

Technology + Knowledge INDUSTRY

MICRO

Triple Helix Model of Innovation System

High scientific orientation Exploration of new scientific path Low involvement of industry International research activites Easy access to public money Low bureuratic narriers High flexibilty for using funds Demand orientation according to industrial needs

Research & Innovation Actors

Research & Innovation Actors
R&D Industry Major, multinational companies SME Private Sectors R&D Engineers, technicians Provate foundations (VW, Robert Bosch) Public Sector Research
Universities (applied sciences) Departmental & Governmental Research (Umwelsbundesamt) Academies Research Organizations (The Max Planck, Fraunhofer-Gesellschaft, Helmholtz Association, Gottfried Wilhelm Leibniz Scientific Assc.)
State Policy Level

Policy Levels Actors

Policy Actors Federal Ministry for Education & Research (BMBF) Federal Ministry of Economics & Technology (BMWi) Ministry of Economic Affairs, BadenWurttemberg Ministry of Economic Affairs, North RhineWestphalia

Federal

Regional Regional, municipial, local authorities

BMBF: Financing top-level R&D projects (basic and applied research), clusters, providing innovation infrastructure, education BMWi: Designing appropriate (legal) framework conditions, entrepreneurship (SME), appliedoriented research, energy/space/aviation/ICT Education policy lies within the responsibility of the state governments Several Federal Ministries with own R&D budgets

AGENDA
1 Finland

A
B C 2 Germany A B C D E F G

Research & Inovation Council of Finland The Science & Technology Policy Council
TEKES, Finnish Fundding Agency

Federal Ministry of Education & Research VDI VDE Innovation + Technick GmbH Steinbeis University Fraunhofer IPK Let ZENIT GIZ, German International Cooperation

KFW Bankengruppe

Steinbeis University, Berlin

SHB provides Bachelor, Master and Doctoral degree. SHB is built within concept of Knowledge.Transfer.Aplication. SHB University is a subsidiary of the Steinbeis-Stiftung fur Wirtschaftsforderung. The institute operates as companies within company. As a service provider, SHB puts customers first and draw on the Steinbeis Transfer Networks worldwide pool of experts to offer consulting, research and development, evaluation and expert report alongside training and employee development

A B C D E F G H

Steinbeis Center of Management and Technology School of Management and Innovation School of International Business and Enterpreneurship
Steinbeis Business Academy Dental and Oral Medicine Alliance School of Governance, Risk and Compliance Stuggart Institute of Management and Technology IBR School of Excecutive Management Steinbeis Technology-Group

AGENDA
1 Finland

A
B C 2 Germany A B C D E F G

Research & Inovation Council of Finland The Science & Technology Policy Council
TEKES, Finnish Fundding Agency

Federal Ministry of Education & Research VDI VDE Innovation + Technick GmbH Steinbeis University Fraunhofer IPK Let ZENIT GIZ, German International Cooperation

KFW Bankengruppe

Institute for Production System and Design Technology IPK

Fraunhofer IPK currently employs over 260 researchers, graduate and postgraduate students and administrative staff. The central experimental hall "Versuchsfeld consists of laboratories and the offices cover more than 7 100m.
13,1 million EUR (80% self financing ratio)

SERVICES Translate Interdisciplinary Know-How into Tailored Solutions

Benchmarking PDM/PLM Microproduction tech. Cleaning tech. Virtual reality Rapid prototyping Virtual product creation & production process design Tool & mold construction Knowledge management Consulting (preliminary discussions) Feasibility studies & profitability analysis Bilateral industry projects comprising all stages, including prototype manufacturing Projects planning & engineering Development of process, devices & software system System testing using cutingedge equipment Support for national & international research and

FUNDING SYSTEM

4,3 million EUR

Source: Industrial Project

4,9 million EUR

Source: Public Funds

Research and Development Topics

CORPORATE MANAGEMENT VIRTUAL PRODUCT MEDICAL TECHNOLOGY

Management systems Business process design Enterprise and factory planning Quality and environmental management Knowledge management/ intellectual capital reporting Benchmarking

Product development method Product design and functional validation Intuitive interaction with virtual prototypes Information management for the product creation process Digital manufacturing and factory process

Image-guided and minimally invasive surgery Intraoperaional therapy Surgical navigation instruments and customized implants Quality assurance, Medical devices art, and the approval of medical devices

Research and Development Topics

PRODUCTION SYSTEM COATING & JOINING AUTOMATION TECHNOLOGY

Manufacturing technologies Production machines and system amangement Microproduction technology Staff training
Mission: to significantly and lastingly improve the competitiveness of our customers with application-specific modular & system sollutions

High-performance arc welding Resistance welding of super high-strength types of steel and dissimiliar joints Process optimization by means of welding simulation Application of modern high-power joining process, such as laser beam and hybrid welding

Process automation and robotics Security technology Process control and simulation Automatical optical testing
Vision: Humancentered automation, in which man and machine can work together closely but also flexibly

AGENDA
1 Finland

A
B C 2 Germany A B C D E F G

Research & Inovation Council of Finland The Science & Technology Policy Council
TEKES, Finnish Fundding Agency

Federal Ministry of Education & Research VDI VDE Innovation + Technick GmbH Steinbeis University Fraunhofer IPK Let ZENIT GIZ, German International Cooperation

KFW Bankengruppe

Centre for Innovation and Technology in North Rhine-Westphalia

North Rhine-Westphalia (German: Nordrhein-Westfalen) is the westernmost, most populous, and economically most powerful state of Germany with four of the country's ten largest cities. In terms of exports and imports, NRW is an important trade partner for many countries. With some 18.2 million inhabitants, it is Germanys most densely populated region and thus one of Europes largest markets.

Your Door to North Rhine Wesphalia, leading region in Europe

A highly concentrated scientific, research and innovation landscape Strong industrial and service sectors ranging from automobile to chemicals, electronics, metals, media and telecommunications A sophisticated transport and logistics infrastructure A business community characterized both by multinational companies and SMEs A skilled and reliable workforce

Centre for Innovation and Technology in North Rhine-Westphalia

Maintains close links to universities, institutes, clusters and enterprises. Specialized services in : Initiation and mediation of international technology and know-how transfer, Support in innovation management, Implementation of technology searches, Assessment of the technological and innovation potential of organisations R&D projects

Experience benefits of in the areas of innovation management, knowledge transfer and technology assessment.

Helping submit funding and financing application Specific assistance in 7th Framework Program , in the Competitiveness and Innovation Program and/or European Commision Advice and information on national, regional and international funding schemes Evaluation of project ideas and applications

Helping local organizations enter markets abroad and assisting foreign counterparts. The best port of call for all transnational activities: Sectoral, Country and Market Research, Information on R&D, Assistance in internationalization projects, Mediation of cooperation partnerships of all types

AGENDA
1 Finland

A
B C 2 Germany A B C D E F G

Research & Inovation Council of Finland The Science & Technology Policy Council
TEKES, Finnish Fundding Agency

Federal Ministry of Education & Research VDI VDE Innovation + Technick GmbH Steinbeis University Fraunhofer IPK Let ZENIT GIZ, German International Cooperation

KFW Bankengruppe

German Society for International Cooperation

Broad-based expertise for sustainable development
As a federal enterprise, GIZ support the German Government in achieving its objectives in the field of international cooperation for sustainable development and also engaged in international education work.

Developing solutions
Economic development and employment promotion Governance and democracy security Reconstruction, peace building and civil conflict transformation Food security, health and basic education Environmental protection, resource conservation and climate change mitigation Management and logistical services, and act as an intermediary, balancing diverse interests in sensitive contexts. In crises, GIZ carried out refugee and emergency aid programs. As part of GIZ services, also second development workers to partner countries.

German Society for International Cooperation

Professional Partner For International Clients
In addition to the German Federal Government, GIZ also works on behalf of international organizations, governments, foundations and companies with worldwide operations. 10,000 programs and projects for these clients are carried out in the business area GIZ International Services (GIZ IS) over 120 countries.

Global Expertise
GIZ IS prides itself on its high standards of professionalism and integrity. Transparent processes minimise the risk of corruption, in particular in project and financial management. Clients can rely on high quality services from a federal enterprise professional, ethical, transparent and made in Germany. The GIZ IS business area supports the German Government in achieving its development objectives and enhancing the effectiveness and visibility of Germany's technical cooperation activities. GIZ IS reinvest all surpluses in development cooperation projects. Each new project requires the approval of the German Federal Ministry for Economic Cooperation and Development (BMZ) and the Federal Foreign Office.

AGENDA
1 Finland

A
B C 2 Germany A B C D E F G

Research & Inovation Council of Finland The Science & Technology Policy Council
TEKES, Finnish Fundding Agency

Federal Ministry of Education & Research VDI VDE Innovation + Technick GmbH Steinbeis University Fraunhofer IPK Let ZENIT GIZ, German International Cooperation

KFW Bankengruppe

Subordinated capital for Innovation ERP Innovation Startfund

Who Small innovative highly technological companies (up to 10 years at the market)

What
How

Shareholding pure equity

KfW participates as a Co-Investor in young, technology-based companies in Germany
REQUIREMENTS At least one other investors as lead investor enters simultaneusly KfW participates with 50% of the investments sum up to EUR 5 mio. per applicant KfW and lead investor participate pari passu regarding all financial conditions KfW assess and approves each investment individually QUALITY Pure equity, high risk of default, no collateral, partner of high-tech companies

Volume

80 million in 2010

Subordinated capital for Innovation ERP Innovation Program

Who Program 1 Established medium-sized enterprises/self-employed professionals (> 2 years at the market) with max. Turnover EUR 500 mio. RESEARCH AND DEVELOPMENT
Unit staff costs, overhead, travel expenses, costs of materials and IT cost Individual costs of R&D assignments and of consulting services and similiar services Investmens costs incurred in the R&D project Costs of further development & improvement of the innovation Quality assurance measures

Program 2

MARKET INTRODUCTION of new products, processes or services

50% of eligible costs, max 1 EUR 1 mio, per project (Western Germany) 50% of eligible costs, max 1 EUR 2.5 mio, per project (Eastern Germany) Investments made in connection with the introduction of new products/processes/services Costs of management consultancy and training Costs of market research and market information

Scenario 1 : Senior debt tranche

Volume

Scenario 2: Subordinated debt tranche

Applications up to 200 million per year

Thank you for your attention