Technology and Innova/on in Finland: Current Issues and Future Challenges 21.11.2012 Tomi Nokelainen 11/22/12
Outline •  What is technology and innova/on? •  A historical glimpse-­‐like synthesis on the past century of Finnish technology and innova/ons •  The role of technology and innova/ons currently in Finland •  Topics under discussion currently in Finland 11/22/12
On technology •  At least three views –  Ar/fact/tool view •  Physical ar/facts, tools which solve a prac/cal problem and/or provide some value added –  Technique view •  Knowledge to solve problems and/or enhance produc/vity, quality of life etc. (resul/ng in ar/facts or otherwise) –  Human agency view •  Human modifica/on of the natural world (to achieve some desired end) 11/22/12
On innova/on •  Something new, prac/cally anything (once “successfully” implemented) –  Technological innova/ons; e.g. •  Mobile telephony •  Internet data transmission protocols –  Social innova/ons; e.g. •  Condensed wri/ng style and smileys in text messages •  ”Blogs” (web logs) –  Scien/fic innova/ons? •  Usual typology –  Radical/discon/nuous •  Disrup/ve; e.g. digital cameras –  Incremental/con/nuous •  Compliant; e.g. pa[ern recogni/on (e.g. faces) in digital cameras 11/22/12
Innova/ons in a business context •  Product innova/on –  Changing product/service features (e.g. instant/SMS loans) •  Process innova/on –  Changing produc/on (e.g. online photo development) •  Service innova/on –  Changing customer rela/onship (e.g. car inspec/on) •  Marke/ng innova/ons –  Changing percep/ons (e.g. Veikkaus and gambling) •  Value chain innova/on –  Changing value produc/on configura/on (e.g. online music streaming/retailing) •  Business model innova/ons –  Changing economic logic (e.g. Rovio and Angry Birds) 11/22/12
Other noteworthy aspects on technology and innova/ons •  History ma[ers –  Advancement (and resistance) builds on what has come before; physically and cogni/vely –  E.g. various forms of “mobile” payment in Finland •  Context ma[ers –  Every context is somewhat different from other contexts (preferences, culture, resources…) –  E.g. sauna stoves in Finland and elsewhere •  System ma[ers –  Every technology and innova/on is embedded in a socio-­‐
technical system with constraints and incen/ves –  E.g. electric car in Finland and elsewhere 11/22/12
Technology and innova/on in Finland, the past century crudely in a nutshell •  Before 1900s –  Prac/cal innova/ons by craasmen, farmers and merchants –  Early buildup of technical (higher) educa/on; prac/ce-­‐oriented •  Several key people recruited from abroad, mainly from German-­‐
speaking sphere –  Impor/ng foreign technology to Finland (Germany, UK, USA…) •  E.g. co[on industry in Tampere •  Turn of the 1900s and early 1900s –  Formaliza/on of technical (higher) educa/on, increasingly with domes/c resources; s/ll rather prac/ce-­‐oriented àDomes/c technological exper/se to develop domes/c industries •  E.g. forest-­‐based industries, engineering works (“heavy” industries) •  Na/onal infrastructure 11/22/12
Largest companies in Finland 1860 1.  Finlayson & Co. (tex/les) 2.  Pitkäranta-­‐yh/ö (copper mine and foundry) 3.  Tammerfors Linne-­‐ och Jernmanufaktur (co[on processing and iron foundry) 4.  Forssa Ab (tex/les) 5.  Fiskarsin ruukki & konepaja (foundry and engineering works) 6.  Paul Wahl & Co. (foundries, sawmills) 7.  Porin tuli/kkutehdas (matches) 8.  N. L. Arppe & Hallonblad (foundries, sawmills) 9.  Rosenius & Seseman (sawmills) 10.  Taalintehdas (foundry) 11/22/12
Technology and innova/on in Finland, the past century crudely in a nutshell •  Aaer the second World War –  Substan/al war repara/ons for the Soviet Union àNoteworthy ”mandatory” boost for engineering technology and engineering works à Strong basis for subsequent engineering technology –  Gradual “scien/fica/on” of technical (higher) educa/on •  Towards the end of 1900s and currently –  Dwindling of major tradi/onal industries –  Technology: “abstrac/za/on” of development •  Disconnect from immediate need; “technology push” •  Technology as a commercial offering in itself –  Innova/on: towards crea/ng and detec/ng novel customer needs •  E.g. “new game” strategies •  Global technology transfer as the underlying basis 11/22/12
Largest companies in Finland 2012 (market capitaliza/on) 1. 
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Nordea Bank Ab (banking) TeliaSonera Ab (telecommunica/on services) Kone Oyj (elevators and escalators) Sampo Oyj (insurance, financing) Fortum Oyj (energy) Nokia Oyj (telecommunica/on; 32 % of Nordea) Wärtsilä Oyj Abp (heavy engines and propulsion) UPM-­‐Kymmene Oyj (paper products) Metso Oyj (technology supplier for manufacturing industries) 10.  Nokian Tyres Oyj (car tyres) 11/22/12
Role of technology and innova/on in Finland, some anecdotal observa/ons •  Technology and innova/on seen as a major contributor to na/onal compe//veness –  Crea/ng and –  Adop/ng •  Some highlights –  Global Compe//veness Report (World Economic Forum) •  1 (’05-­‐’06), 6 (‘07-­‐’08), 6 (‘08-­‐’09), 6 (‘09-­‐’10), 7 (‘10-­‐’11) –  PISA: Science and Ability to Use Scien/fic Knowledge (OECD) •  1 (‘03), 1 (‘06) , 2 (‘09) –  Newsweek: World’s Best Countries •  1 (‘10) h[p://en.wikipedia.org/wiki/Interna/onal_rankings_of_Finland •  But: rankings oaen show a trend downwards 11/22/12
Some examples of rela/vely recent Finnish innova/ons •  Linux opera/ng system –  h[p://www.linux.org/info/index.html •  Forest harvesters + simulators –  E.g. h[p://www.ponsse.com/ •  QWERTY –enabled mobile phones –  h[p://en.wikipedia.org/wiki/Nokia_Communicator •  Text message, SMS (?) –  h[p://en.wikipedia.org/wiki/SMS#Early_implementa/ons •  Consumer/athlete heart rate monitors –  h[p://www.polar.fi/en/ •  Cholesterol-­‐reducing margarine (i.e. func/onal food) –  h[p://www.benecol.com •  Angry Birds game family and brand –  h[p://www.rovio.com/en/our-­‐work/games/view/1/angry-­‐birds 11/22/12
Some Current Issues and Future challenges 11/22/12
Future dominant industries •  Forest-­‐based and electronics industries moving outside Finland –  Moreover, somewhat mature industries already •  What next? E.g., –  Bio/nanotechnology? –  Environmental technology (e.g. wind energy, renewable energy sources, geothermal energy…)? •  Especially: “zero energy”/”passive” house construc/on technology –  Electric cars and/or the infrastructure they need? •  “Will there ever be a next Nokia?” –  Current buzz: Mobile gaming (e.g. Rovio/Angry Birds) 11/22/12
Higher educa/on and research •  Balance between higher and lower educa/on –  Emphasis on higher and “higher” educa/on, but increasing shortage of prac/cally skilled workforce •  Funding and purposes/goals of universi/es –  ”Seeking truth” vs. regional effec/veness vs. interna/onal recogni/on vs. commercializa/on of innova/ons? •  Fusion of capital area universi/es: Aalto university –  Helsinki school of economics, Helsinki university of technology, University of art and design Helsinki à”Top university” in Finland –  Ra/onale: mul/-­‐disciplinary university for development and commercializa/on of new innova/ons 11/22/12
Maintaining na/onal innova/veness, the “innova/on system” •  Interna/onal rankings of Finland have declined somewhat during the past years –  Is this permanent? And if yes, •  Why? •  What should be done? (And by whom?) •  Issues under discussion e.g. –  Total na/onal compe//veness vs. equal regional possibili/es? –  Compliance to interna/onal rakings measures vs. pursuing a na/onal set of criteria (perhaps “soaer”)? –  General lack of entrepreneurial aytude; why? –  “Technology transfer”; how to foster? 11/22/12
Future of Work: “New work” •  From employment to entrepreneurship –  Branding and marke/ng oneself –  Constantly upda/ng technological and other professional exper/se; ”life-­‐long learning” –  Remote working (fad?) •  Changing values towards work –  From stability towards enjoyment, expression and development –  Primary social reference groups outside workplace •  But: among teenagers growing anxiety towards professional career •  Simultaneously aging popula/on –  Work lives societally ever more important Tomi Nokelainen
11/22/12
Traffic •  Discussion driven by environmental considera/ons (especially emission reduc/on) •  Recent developments –  Car purchase tax based on exhaust emissions –  E10 par/al biofuel recently introduced, RE85 taking off –  Car usage fee/tax based on emissions •  But some relics (e.g. for electric cars) •  Ongoing considera/ons –  Conges/on fees in downtown areas (especially Helsinki) –  Car usage fee/tax and insurance based on distance driven (e.g. GPS tracking) –  Urban planning explicitly favoring public transporta/on 11/22/12