Tekes impact model
Evaluation of Tekes activities is based on an overall impact model. This model describes
how the impacts of Tekes activities are created and how it can be seen in funded projects,
project results and outcomes and eventually as impact at the level of industries, the economy
and the society.
Understanding the impact and how it is created through public funding requires a multilevel
and multidimensional approach. In addition to analysing the impact of individual projects on
individual companies, evaluation needs to address impact on industrial sectors, clusters and
networks, as well as impact on thematic policy priorities such as competitiveness and
productivity, and societal challenges.
Tekes evaluation approach consists of a number of key elements. Together they provide indepth understanding the mechanisms through which impacts are realised and thereby
facilitate learning for better design of future funding and other innovation policy activities.
They also provide the necessary evidence of the realised impact at different levels ranging
from individual companies to the whole economy and society.
Tekes impact model is based on the concept of additionality. In order to describe multiple
effects of public RDI investments, the model captures input, behavioural and output
additionality as well as the eventual impacts on the whole economy and society.
Tekes' mission is to generate sustainable economic, social and environmental development
and wellbeing. Tekes funds pioneering RDI projects aimed at making breakthroughs. In other
words, Tekes funding is targeted to projects that create the greatest benefits for the economy
and society in the long-term. Expected impacts depend on the topic to be evaluated but in
general these can be classified by type of additionality.
Figure. Tekes Impact Model
Investments (Input additionality).
The main question is if public R&D funding adds to the R&D inputs by the companies or if it
completely or partially crowds out such inputs (Georghiou et al. 2002). Input additionality
occurs when one Euro of public funded R&D accumulates at least an additional Euro in the
beneficiary’s own budget. Much research has been conducted on the impact of public R&D
funding on private R&D investment. The majority of national and international studies of
Tekes funding have clearly shown that instead of crowding out corporate investment in R&D,
public R&D funding increases it.
Activities (Behavioural additionality).
As a next step, results on how R&D expenditures change firm’s behaviour to the desired
direction(e.g. new working methods, co-operation and networking capabilities) were
collected. Main evaluation question is how public RDI funding has changed beneficiary’s
subsequent behaviour to the desired direction e.g. new working methods, co-operation and
networking capabilities.
It has been found that Tekes funding has an impact not only on the quantity but also on the
quality of corporate RDI investments. The types of R&D projects launched by companies and
the manner in which they are implemented have an effect on quality as is later shown by
practical examples on different ex-post evaluation carried out of Tekes practices. The goal of
Tekes funding is to encourage companies to launch more ambitious R&D projects with
higher degree of risk and to increase the quality and quantity of cooperation and RDI
activities in general.
Output and direct effects (Output Additionality).
Tekes expects that public R&D funding has a positive impact on the results of R&D projects
in companies. Therefore the outputs of companies and their business performance ultimately
also improve. The ultimate impact is shown as business success.
In evaluation, it is required to analyse outputs, which can take the form of publications,
patents, licenses or new products, services and processes. Outputs have an effect on the
productivity of a company but are not, however, the ultimate goal in itself. In several studies it
has been found that the business performance of companies (measured as sales or
turnover) is a result of these new products, processes or services.
Impact on Society and Economy.
As a long-term goal it is also evaluated if R&D investment has an impact on the growth of
competence and human capital within firms and research organisations. Knowledge and
competence determine the success of companies as well as economic growth in the long
term. Since investments in R&D increase competence and have a permanent influence on
business models, the spill overs of R&D investment are important.
The impacts of Tekes activities should spread to the whole economy and society. This may
happen directly in the form of new innovative products, services, processes and methods
leading to improved competitiveness and economic growth, but also by producing
innovations to address various societal challenges. Impact may also result indirectly from
knowledge and skills spill overs or through increased competences.
These impacts may be measured from three viewpoints: what is the impact of Tekes funding
on addressing: (1) challenges and opportunities arising from people and their wellbeing; (2)
the renewal and productivity created by R&D and innovation in co-operation of companies
and research organisations; and (3) restrictions, challenges and opportunities related to the
environment. When these impacts strengthen their influence, they will have more obvious
effects on the market. Therefore, they contribute to the international competitiveness of the
whole economy.
This overall impact model has been used at Tekes for several years. Together with current
innovation policy priorities, and identification of potential future policy priorities and
knowledge needs via strategic intelligence (such as foresight and other forward looking
strategy work), the model forms a solid foundation for all evaluation and monitoring activities.
Thematic Evaluations
It has been agreed between Tekes and the Ministry of Employment and the Economy that
Tekes impact and the achievement of objectives will primarily be monitored through impact
assessment and studies focusing on key policy objectives and main thematic areas. The
objectives are as follows:
-
Globally competitive business and industry
Top-level innovation environment
Tekes efforts in achieving these objectives are monitored through impact analyses and
reports. Tekes aims for direct well-being impacts based on innovations, productivity,
structural reform and growth. The expertise and knowledge developed will extend beyond
individual projects and generate the desired results over the long term.
Business renewal is particularly important from the perspective of Finland's competitiveness.
The continuous development of knowledge, expertise and competencies makes an impact
on the state of the national economy and the country's innovation environment.
Thematic evaluations focus on verifying and learning how Tekes activities lead to
improvements in firms’ global competitiveness and economic growth, and verifying and
learning how Tekes activities improve the overall innovation environment.
Impact assessments and studies implemented within each thematic area represent the
actual and official method for monitoring Tekes success and impacts. Additionality theory is
used because it reveals the effectiveness of operations, provide information on success and
assess the legitimacy of policy actions. Awareness of the upcoming evaluations may
invigorate the planning and execution of operations which in turn diminishes risks and
increase the success factors. Impact analysis also contributes to the public awareness on
specific policies or issues.
The Ministry of Employment and the Economy actively follows the activities of Tekes through
these thematic areas. A report on each area has been produced every other year.