Olavi Lehtoranta Toni Ahlqvist Torsti Loikkanen Antti Eivola TECHBARO2010

Transcription

1 TECHBARO2010 Olavi Lehtoranta Toni Ahlqvist Torsti Loikkanen Antti Eivola TECHBARO2010 Technology barometer Developed to measure citizens attitudes and the nation s orientation towards a knowledge-based society

2 publisher Tekniikan Akateemisten Liitto TEK ry ratavartijankatu 2, Helsinki Visual design S salla Koivu ja Juhani Mykkänen cover cover illustration Print Leena Schmandt-Hokkanen Kuvakori.com Forssan Kirjapaino Oy ISBN isbn TEK 2010

3 Olavi Lehtoranta Toni Ahlqvist Torsti Loikkanen Antti Eivola TECHBARO2010 TECHNOLOGY BAROMETER Developed to measure citizens attitudes and the nation s orientation towards a knowledge-based society

4 Sisältö 1. Introduction 6 2. CENTRAL RESULTS OF THE TECHNOLOGY BAROMETER¹ BAROMETER STRUCTURE CHOICE OF INDICATORS, CALCULATION METHOD AND RELIABILITY OF RESULTS KEY RESULTS PROGRESS TOWARDS A KNOWLEDGE-VALUE SOCIETY DISCUSSION CATALYSTS FOR FUTURE DEVELOPMENT THAT IMPOSE SIGNIFICANT CHALLENGES ON FINLAND FINLAND S OPPORTUNITIES TO RISE TO ITS CHALLENGES PRACTICAL UTILISATION OF OPPORTUNITIES REQUIRES DETERMINED ACTION SUMMARY INDICATORS COMPETENCE AND KNOWLEDGE GENERATION BASIC EDUCATION AND SCHOOLING GENERAL EDUCATION AND COMPETENCE TECHNO-SCIENTIFIC COMPETENCE KNOWLEDGE SOCIETY DEVELOPMENT INVESTMENT IN RESEARCH AND PRODUCT DEVELOPMENT INFORMATION AND COMMUNICATION TECHNOLOGIES APPLICATION OF NEW KNOWLEDGE INNOVATIVE SOCIETY UNDERSTANDING OF KNOWLEDGE, KNOWLEDGE MANAGEMENT ENTREPRENEURSHIP AND ECONOMIC REGENERATION NETWORKING AND OPENNESS TO INTERNATIONAL ACTIVITIES SUSTAINABLE DEVELOPMENT SOCIAL COHESION ENVIRONMENTAL PROTECTION STATE OF THE ENVIRONMENT 58 4

5 4. SURVEY, QUESTIONNAIRE RESULTS MATERIAL COMPETENCE AND KNOWLEDGE GENERATION PROSPECTS REGARDING TECHNO-SCIENTIFIC COMPETENCE YOUNG PEOPLE S INTEREST IN CERTAIN PROFESSIONS YOUNG PEOPLE S INTEREST IN SOCIETY, SCIENCE AND TECHNOLOGY KNOWLEDGE SOCIETY DEVELOPMENT OPINIONS REGARDING THE STANDARD OF RESEARCH AND TECHNICAL DEVELOPMENT IN FINLAND VIEWS CONCERNING TECHNO-SCIENTIFIC INSTITUTIONS AND ORGANISATIONS VIEWS REGARDING THE ROLES OF KNOWLEDGE AND TECHNOLOGY IN FINNISH SOCIETY VIEWS REGARDING THE IMPACT INFORMATION TECHNOLOGY HAS ON WORKLIFE VIEWS REGARDING PRODUCTIVITY DEVELOPMENT IN THE PUBLIC SECTOR INNOVATIVE SOCIETY INVESTMENT ORIENTATION POTENTIAL EFFECTS OF TECHNOLOGY DEVELOPMENT ON THE QUALITY OF LIFE ECONOMIC CRISIS, COMPANIES R&D ACTIVITIES AND USER-ORIENTED DEVELOPMENT WORK SUSTAINABLE DEVELOPMENT ENVIRONMENTAL THREATS STATE OF THE ENVIRONMENT AND ACTION TAKEN BY THE AUTHORITIES 90 Appendix 92 5

6 1. Introduction The Technology Barometer is used to measure Finland s current techno-scientific state and level of development. It is an indicator that maps out the country s economic structures and the various demographic groups values, attitudes and their observable changes, depicting the country s long-term development in comparison to the reference group. The Technology Barometer indicates the various development stages of a given society from an information society into a knowledge society towards a knowledge-value society. At the same time, it also demonstrates how effectively the development in question complies with the principles of sustainable development. The purpose of the Technology Barometer is to strengthen the knowledge base for competence and expertise development, to support and improve related societal debate, and to use this knowledge and debate to support decision-making on educational and research resources within public administration and economic life. In terms of a nation s future competitivity, the decisions concerning its orientation on various technologies, expertise, related priorities and resource allocation constitute the key issues. The Technology Barometer uses a model that has been developed with economic, innovation and societal theories as the basis. It combines indicator-based data that depicts the nation s techno-scientific and societal development with detailed complementary data that is based on enquiries demonstrating the citizens underlying values and attitudes. The indicator-based data can be used for the generation of index figures to display the nation s techno-scientific state and level of societal development in comparison with the reference group. The reference group that was used in the indicator-based comparison consisted of Sweden, Denmark, the Netherlands, Germany, the UK, the USA and Japan. Target group enquiries are used to measure various demographic groups values and attitudes with regards to technology development and its various factors, as well as the state and level of techno-scientific research in our country. The information obtained from target group enquiries can be used to explain the results of indicator-based comparisons, so as to understand the underlying reasons for the nation s current state of techno-scientific development. Young people, the membership of the Finnish Association of Graduate Engineers TEK, political decision-makers and the technology directors of major Finnish industrial enterprises were identified as the central target groups for the attitude survey. 6

7 2. CENTRAL RESULTS OF THE TECHNOLOGY BAROMETER¹ 2.1. BAROMETER STRUCTURE The Technology Barometer indicates the various development stages of a given society from an information society into a knowledge society towards a knowledge-value society. The Technology Barometer consists of four components, each containing three indicators. These are shown in Figure 1. The development from an information society towards a knowledge-value society is shown in the arrow-formed figure as progress from the left-hand upper corner to the right-hand lower corner. A B C BASIC EDUCATION AND SCHOOLING INVESTMENTS IN R&D S&T PRODUCTIVITY INFORMATION SOCIETY KNOWLEDGE SOCIETY KNOWLEDGE-VALUE SOCIETY SUSTAINABLE DEVELOPMENT GENERAL SKILLS AND KNOWLEDGE APPLICATIONS OF ICT ENTREPRENEURSHIP AND VENTURING S&T CAPABILITIES INNOVATIVE PROCEDURES INNOVATION NETWORKS SOCIAL VALUES ENVIRONMENTAL RESPONSIBILITY ENVIRONMENTAL SYSTEMS Figure 1. Content of the Technology Barometer. Alongside the development of a society that is based on knowledge and competence, the Barometer indicates the respective levels of background players, organisations or the whole society in question: levels A C (Figure 1). These are constituted by indicators and issues that concern individuals and their values, those concerning organisations and their activities, and by those focusing on the operating methods and values of the society in question as a whole. This publication chiefly complies with the latter division, with the Barometer s partial indicators initially examined from the population viewpoint (A), then from that of the organisations (B), and finally from a societal viewpoint (C), under the headlines of competence and knowledge generation, information society development, innovative society and sustainable development. The first sphere (A) may be characterised as an entity of the population s knowledge, competence and value base. The second sphere (B) may be characterised as an entity of research and development, innovation and environmental protection. Correspondingly, the third sphere (C) may be characterised as an entity of societal results and effects achieved through the activities in question. In this context, a value base refers to the value-related choices made by individuals, economic and political decision-makers, and society as a whole. Among other things, these are seen in citizens health, income distribution, employment and equality between sexes. In addition, value-relat- 1 The content of this Technology Barometer publication is similar to the publications titled Technology Barometer and Technology Barometer 2005, which were produced and compiled by TEK and Mika Naumanen from VTT. The content is also similar to Technology Barometer 2007, the previous publication. Any applied indicators are listed in the appendix. Some of the indicators have been replaced, mainly due to material availability. 7

8 ed choices have an impact on environmental protection, and, ultimately, on the state of the environment as well. The value-related choices made, the appreciation enjoyed by various professions, and people s interest in science and technology as a profession, or in the application of new knowledge in general, also exerts an influence on technology development. These questions are examined in the Barometer s survey section. The Barometer indicators can also be examined in groups as shown in Figure 1, in terms of: information society, knowledge society and knowledge-value society. In the Technology Barometer, an information society is referred to as one where the central role is played by information production, processing, dissemination and exploitation, in all societal sectors. For example, general investment in education and training, research, and product development is used to measure how effectively the information society related objectives have been achieved. In conjunction with reforming the Finnish information society strategy, an information society was defined as one where knowledge and competence constitute the foundations for education, and the crucial element in production, with information and communication technologies comprehensively supporting interaction, the dissemination and exploitation of knowledge between individuals, businesses and other communities, plus the provision and accessibility of services. Instead of quantitative information, the decisive role is played by significant knowledge. Instead of development investment in general, the Technology Barometer uses the allocation of investment to the development of techno-scientific competence and skills, the exploitation of ICT, and the results achieved through the said investments, to measure how effectively an information society transforms into a knowledge society. A knowledge-value society is an advanced form of both the information society and the knowledge society. The Technology Barometer defines a knowledge-value society s objectives as follows: the application of new knowledge, entrepreneurship, the capacity for economic regeneration, networking between citizens, businesses and public corporations, plus openness to international activities. The default is that the most successful innovators are those who can exploit various expert sources with optimum efficiency in problem-solving situations and implement their objectives in close collaboration with other businesses, universities and research institutes. To summarise: The Technology Barometer measures information society development with the aid of young peoples reading literacy skills, mathematical and scientific skills (PISA surveys) and in terms of investment in education, research and development (Figure 1, white area). Knowledge society development is measured by higher education, the share of high technology and competence-intensive services, the application of ICT, the number of patents, the share of scientific publications, and per capita GDP per working hour (Figure 1, light blue area). Development towards a knowledge-value society is measured by entrepreneurial activeness, the share of nascent companies, innovative SME companies or those engaged in innovative cooperation, risk capital investment, investments made by the private sector, incoming direct foreign investment, and the share of foreign trade in per capita GDP (Figure 1, dark blue area). Sustainable development is the Technology Barometer s fourth object of analysis. Sustainable development is a continual, controlled process of societal change that takes place on the global, regional 8

9 and local scales, towards securing adequate living conditions for the current and future generations. The Technology Barometer measures the objectives of sustainable development with the aid of three indicator entities: social cohesion in the society in question, environmental protection action taken by businesses and authorities, and the actual state of the environment. This division is similar to Ilkka Niiniluoto s analysis of the development of knowledge-based social systems. In an ICT-based society, the ever increasing processing and transfer of data and information is enabled by computers and new electronic communication media. A society that possesses an abundance of skill-related and competence-based knowledge can be called a know-how society. The third type is a society that is based on understanding or enlightenment, in other words what may be called a society of culture and wisdom where knowledge has an absolute value, in addition to its instrumental value, and where knowledge management and knowledge application also entail an ethical view of the principles of good life. The Technology Barometer measures a variety of components in information society development providing an overall picture of the prevailing situation in various countries. This development is demonstrated with the aid of three different information society indexes (information, knowledge and knowledge value), as well as the index of sustainable development. In addition to the indexes that describe the various countries proportional ratings in terms of information society development, this publication describes the current state of the countries involved plus any changes that may have occurred, with the aid of available statistical data CHOICE OF INDICATORS, CALCULATION METHOD AND RELIABILITY OF RESULTS For the statistical indicators, data was collected from Finland and seven other countries: Sweden, Denmark, the Netherlands, the UK, Germany, Japan and the USA. The main source of material was Eurostat, the Statistics Office for the European Union. The most recent available statistical data, which is internationally comparable, is collected for each partial indicator involved. In some countries, such as Japan, the accumulation of this data may be considerably slower, compared to the others. This influences the choice of specific years for the comparison. About 50 percent of the data used in Technology Barometer 2010 is from 2007 or 2008, and the rest from previous years. About one third is from More than 80 percent of the data is from 2007 or from a preceding year, in other words clearly before the onset of the global recession. It is obvious that the recession will affect the countries proportional ratings, including employment, income distribution, environmental protection, as well as their research and development investment and funding. However, it is not possible to give a detailed account of the recession-induced impact in this context. As a rule, the behaviour of the countries proportional ratings is fairly stable in the said indexes. Naturally, it is a completely different issue as to whether these ratings can adequately describe all the components that should be taken into account in the changed situation. The question is about choosing the indicators. The structure of an economy is described by macro-economic indicators, such as the per capita GDP share of educational expenditure, research and development costs, ICT costs, fixed investment, high technology production and exports, direct investment, foreign trade, energy consumption and environmental protection costs, which are fairly comprehensively included in the analysis. In addition, there are components relating to the population and private households, 9

10 such as the rate of employment or unemployment, the share of new entrepreneurs, that of people with higher education, the number of scientific publications per thousand citizens, the prevalence of broadband communication connections, partnerships in business activities or service provision, such as the share of nascent companies, the share of SME companies engaged in innovative activities, that of e-commerce companies, and the availability of web-based services. The highest additional requirements are probably found in those indicators which describe the process of internationalisation, the global exchange of information, and the effectiveness of the procedures carried out. The statistical indicators were used to calculate the proportional rating of each country compared to the rest. These were obtained through dividing the index value of each country by their standard deviation within the reference group in question. The value of a combined index consists of the nonweighted arithmetic average value of these so-called standardised figures over all the partial indicators applied. In the combined index, an average level in the reference country group results in a zero rating. Above average achievements result in a positive index value, and below average ones in a negative value respectively. The higher the value in either direction, the greater the difference compared to the average value. This means that the combined indexes describe the countries proportional ratings compared to the reference group. In this index system, Finland s rating depends on: The country group. When assessing the changes, it is important that the country group remains unaltered, in other words, the data must be derived from the same countries as previously. However, it may occasionally happen that the country group is of minor importance. Country-specific data and their modifications which affect their mutual comparability. Their assessment is somewhat problematic, however. Consequently, a separate assessment of the countries mutual ratings is also required. The indicator basket, or the selection of indicators for the calculations. All the indicators applied, including those which describe the same phenomena, must have identical weightings in the combined index. This means that the weighting structure of the indexes will remain unchanged. When assessing the results, it is should be observed that even if all the indicators show that Finland s development has been positive, that of the other countries involved may have been better, causing a lower proportional rating for Finland. This means that the index results often indicate how slowly or quickly Finland is progressing compared to the reference group countries. A rapid leap for an individual country may occasionally overshadow the favourable progress of all the others. In that case, the assumption is that the leap is not due to a measurement error. Potential measurement errors raise a question about the Technology Barometer results statistical reliability and their sensitivity to erroneous interpretations. Admittedly, when time sequence analysis methods are used to examine the development of partial indicators, the countries involved could be more extensively compared with the aid of trends and predicted trend developments, instead of comparing individual scores. Unfortunately, the Technology Barometer cannot offer comprehensive or content-wise changeless time series covering all the data items used. Instead, what is available consists of individual measurement results. Indicators of this type include the following: PISA surveys, GEM assessments, several indicators depicting the state of the environment, plus statistical data acquired from outside Eurostat (OECD, UN, etc.). In the Technology Barometer 2010 publication, some of the partial indicators have been replaced, mainly due to material availability. In addition, some of the material content may have changed 10

11 compared to previous surveys. Nevertheless, the authors have decided not to recalculate the previous rounds results but have endeavoured to use the new data in a way that preserves the results comparability as far as possible. In some instances, missing observations have been replaced by one-off measurement results from previous years. Consequently, it is easy to observe that keeping certain slowly changing data items unaltered in a selected indicator basket will have a lower impact on the countries mutual ratings in terms of the calculation technique, compared to removing the indicator from the basket when new data is not available. This approach minimises the calculation technique s effect only, on the comparison results. In all comparisons conducted, those based on combined and partial indicators alike, it is advisable to consider the potential impact of measurement-induced errors on the indicator values. Therefore, readers should also familiarise themselves with the development of partial indicators, instead of the countries mere proportional ratings and their variations. As we see it, however, the said ratings and their variations actually indicate real changes, with regards to the indicators applied and their reference years KEY RESULTS The first Technology Barometer survey was carried out at the turn of the year Contrary to the prevailing notion, the results indicated that Finland was not a model country in terms of knowledge society development. The second barometer survey was conducted at the turn of the year , the third at the turn of the year , and the most recent in autumn 2009, each with similar results. However, Finland had improved its rating in the most recent survey, according to the indicators applied. This was the situation, at least prior to the global recession that started in the autumn of In the information society indicators Finland was still placed at the top. In the knowledge society indicators Finland rated second after Sweden. In the knowledge-value society indicators Finland has improved its rating and has overtaken Sweden, the Netherlands and the UK. The said countries have lost their proportional lead compared to Finland. The change is explained by the increased share of innovative SME companies and their expanded innovation cooperation. This change has been most dramatic in Finland. According to the most recent measurement results (GEM 2009), the proportional share of business angels in the population has clearly increased in Finland. In , the per capita GDP share in the total amount of direct inbound and outbound investment stocks increased clearly, compared to the corresponding figures of the previous Technology Barometer survey. During the period in question, the proportional share of foreign funding increased clearly in the private sector s R&D investments. In 2007, the per capita GDP share in foreign trade was also higher compared to the previous survey, especially in the service sector. However, Finland lagged far behind Denmark, Sweden and the Netherlands in this respect. In entrepreneurial activity Finland is now second after the USA. When taking into account the proportional share of new companies, risk capital investment, and the private sector s investment level in the combined index of entrepreneurial activity, Finland currently rates as third after the USA and Denmark. In the sustainable development indicators Finland continually remains at the reference group s average level. Sweden is by far the best. The USA is the laggard in terms of sustainable development, but has improved its proportional rating in the sustainable development indicators. This is due to the 11

12 fact that Germany has reduced its per capita GDP share in greenhouse gas emissions more slowly than all others, and that the USA has increased the share of renewable energy sources. Germany s development has been most positive in its per capita GDP share in the amount of nitric oxides, in addition to its lowered energy intensity. With regards to greenhouse gas emissions, Finland is now next to last after the USA. In the per capita GDP share in sulphur oxide and nitric oxide emissions, Finland rates as last when the USA and Japan are excluded from the comparison. The USA has successfully reduced its energy intensity in this millennium. Finland s energy intensity is the highest among the reference group. Finland s low index value in environmental protection is probably explained by the country s energy intensive production structure, even if the value of our environmental protection investment is the highest among the countries compared. Regarding the share of renewable energy sources in the total energy production volume Finland lags clearly behind Sweden. In the environmental state indicators Finland s rating is of the average level. Our country s score in the population s health is not praiseworthy either. Finland is last in terms of the population s life expectancy, healthy life expectancy in particular. In 2007, the population s healthy life expectancy was 67 years in Sweden and Denmark, and almost 10 years shorter in Finland 57 years for men and 58 for women. In 2008, Denmark and the Netherlands had the largest share of employed people in the working age group. The two countries also had the lowest unemployment figures in the reference group. Finland currently rates as next to last in this comparison PROGRESS TOWARDS A KNOWLEDGE-VALUE SOCIETY As indicated in Figure 2, individual countries progress from an information society via a knowledge society towards a knowledge-value society in different ways. Finland and Sweden have invested heavily in strengthening the competence base of their economies. Sweden has also made major investments in the application of ICT and sustainable development. In Denmark, nascent companies emerge at a clearly faster rate, compared to Finland and Sweden. Denmark is at an identical level as the UK in this regard. In addition, Denmark has the reference group s highest per capita GDP share of services in foreign trade. Thanks to its leaner production structure, Denmark also rates above average in sustainable development. Denmark s per capita GDP share of sulphur oxide emissions, and its energy intensity level, are the reference group s lowest. The Netherlands, in turn, has the highest level of incoming and outgoing direct foreign investment compared to its per capita GDP. 12

13 INFORMATION KNOWLEDGE KNOWLEDGE VALUE SUSTAINABLE DEVELOPMENT OVERALL INDEX TECHBARO 2005 TECHBARO 2007 TECHBARO 2010 Figure 2. The reference group countries proportional ratings in accordance with the indices of information society, knowledge society, knowledge-value society and sustainable development². In accordance with the most recent information, Finland has overtaken Sweden in the proportional share of people with higher education, that of researchers in the total labour force, production of high technology, exports and the number of patent applications. However, Sweden is still ahead of Finland in the use of ICT, both regarding private households opportunities to exploit the Internet, the utilisation rate of the Internet, the number of households with broadband connections, and regarding the availability of basic services on the Internet. According to the information from 2008, the prevalence of mobile phone subscriptions is the only area where Finland has overtaken Sweden. Sweden is also clearly ahead of all others regarding the number of doctoral dissertations in techno-scientific fields. With regards to the number of patents and scientific publications per inhabitant, there are no significant differences between Finland and Sweden. Regarding the number of published scientific articles Sweden is at the top, however. According to the latest statistical data, Finland has advanced in leaps and bounds in knowledge society development and has caught up with and partly overtaken Sweden, the Netherlands and the UK in the application of new knowledge. In the share of SME companies engaged in innovative cooperation Finland has overtaken all the reference group countries. Regarding the per capita GDP share of inbound and outbound direct foreign 2 Indices of information society, knowledge society, knowledge value society and sustainable development, produced and developed by the Finnish Association of Graduate Engineers TEK together with the Technical Research Centre of Finland VTT. 13

14 14 investment, Sweden, Denmark, the Netherlands and the UK still continue to be clearly ahead of Finland, which also applies to openness to international trade in service provision. Finland continually rates above average in its reference group, with regards to basic education, the share of education expenditure per capita GDP, participation in lifelong learning, the number of people with higher education qualifications, and that of researchers, the level of investment in research and product development, as well as the number of patent applications and scientific publications per one thousand inhabitants. With regards to entrepreneurial activity and the proportional number of business angels, Finland is also slightly above the average. Finland s proportional share of researchers in the total labour force is still the highest compared to the reference group. In terms of ICT exploitation, Finland s rating continues to be below the average level in the reference group. In accordance with the information from 2007, the share of private households with the Internet and broadband connections, as well as the Internet utilisation among the total population, is lower in Finland, compared to Sweden, Denmark and the Netherlands. Even though the number of Finnish private households with broadband connections has increased, the said countries have managed to extend their lead compared to Finland. Sweden, in particular, has invested significantly in the improvement of broadband connections. As indicated by the international Broadband Leadership Ranking 2009, Finland s rating is as low as 21st with regards to the prevalence and average data transfer rate of broadband connections, in other words, clearly behind all the other Nordic countries. In addition, Finland has a lower proportional share of companies with e-commerce acquisitions, and that of Internet users, compared to the reference group. Furthermore, Finland has lost rather than gained ground in this respect. The share of e-commerce in companies turnover is largest in Denmark. Despite its excellent results in the Technology Barometer in general, Sweden is weak in the entrepreneurship and the economic regeneration indicators. Sweden has been the reference group s weakest regarding the emergence of nascent companies and the business sector s investment level, even if it has come closer to Denmark, Finland, Germany and the Netherlands in Similar to the previous barometer surveys, the 2010 Technology Barometer survey gave Sweden a fairly high rating, in terms of techno-scientific competence and in the use of ICT alike. Even this time, Sweden and the Netherlands received a fairly high rating in terms of their proportional GDP share of inbound and outbound direct foreign investment and openness to international trade. In this respect, Finland receives an average rating. Regarding the share of innovative SME companies, and SME companies participation in innovative cooperation, Finland has overtaken Sweden and Denmark, according to the latest survey. However, the result of a GEM assessment indicates that the predominantly innovative activities of starter entrepreneurs only amount to the average level of about 11 percent in Finland. This rating is the Nordic countries lowest in the comparison (GEM 2007). The results of the CIS 2006 community innovation survey indicate that the average rating of all SME companies is about 21 percent: 21 percent of the SME companies announced that they had developed new products for the market in The corresponding share of the smallest companies employing people was about 16 percent. Germany and Japan rate below the average on all knowledge society levels. Japan s situation appears to be especially weak, which can be explained, at least partly, by the country s unique social structure. In sustainable development, Japan appears to be third, after Sweden and Denmark. The difficulty in this particular comparison is that internationally comparable indicator results on sustainable development are not available from the USA and Japan. Concerning the said two countries, the authors of Technology Barometer 2010 have used their per capita GDP share of greenhouse gas

15 emissions, energy intensity, the use of pesticides per cultivated land area, and the number of endangered birds and mammals. Table 1 shows the indicators used in Technology Barometer 2010 as per thematic area. Its is seen from the total indicators depicting knowledge society development and sustainable development (Figure 3), which also include value-based societal choices made, that Finland rates second after Sweden. Figure 3 provides a detailed picture of Finland s progress in each partial area of knowledge society development in the two most recent surveys. The indicators depicting the country s long-standing above-average and proportionally further strengthening position are located on the upper right. The indicators depicting our above-average but possibly deteriorating position are located on the upper left. The indicators depicting our below-average position are located below the centre line. Compared to the previous survey, Finland has advanced in the share of innovative SME companies and participation in innovative cooperation (in application of new knowledge ) and the use of ICT, but has fallen slightly behind in the number of scientific publications, and in the expansion of competence-intensive services (in understanding of knowledge and knowledge management ). Finland still continues to be above average compared to the reference group in basic education, technoscientific competence, investment in research and development, the state of the environment, general education and competence, the understanding of knowledge and knowledge management, as well as entrepreneurship. Currently, Finland has an above average rating in the application of new knowledge as well. On the other hand, the country continues to be below average in terms of international cooperation, social cohesion, the use of ICT, and environmental protection due to its production structure³. 3 Each partial area is measured using a combined indicator to calculate an arithmetic average value of several statistical indicators standardised values between -2 and +2. Techno-scientific competence, for example, includes a demographic group of people aged with higher education qualifications, the share of new graduates in techno-scientific fields in the age group 20-29, the share of people aged with a doctoral degree in the same fields, the share of women among researchers, the share of mid-level and high-level technology fields in the labour force, the labour force share of competence-intensive services and researchers in the total labour force. A combined indicator is used to determine Finland s proportional rating compared to the reference group countries. Figure 3 shows Finland s above-average or below-average rating in comparison to the reference group (the y axis), and whether any improvement or deterioration has taken place (the x axis) in comparison to the previous survey. The combined indicator content for each partial area is demonstrated in Table 1 and Appendix 1. 15

16 information knowledge knowledge value Basic education and schooling GEneral education and competence Investment in r&d Techno-scientific competence Information and communication technologies Understanding of knowledge, knowledge management Application of new knowledge Young people s reading literacy Young people s mathematical skills Young people s scientific skills Adults factual text reading literacy Adults document reading literacy Adults quantitative reading literacy Per capita share of educational expenditure in GDP (%) Participation in lifelong learning (% of people aged 25-64) Per capita share of companies R&D expenditure in GDP (%) Per capita share of public R&D expenditure in GDP (%) Per capita share of public R&D funding in GDP (%) People with higher education (% of people aged 25-64) New degrees in techno-scientific fields, higher education examinations (% of people aged 20-29) Doctoral degrees in techno-scientific fields (% of people aged 25 34) Proportional share of R&D personnel (% of the labour force) Proportional share of female scientists (%) Labour force employed by high and medium-high technology industries (% of the labour force) Employment in competence-intensive service sectors (% of the labour force) Per capita share of information technology expenditure in GDP (%) Per capita share of communication technology expenditure in GDP (%) Private households with Internet access (% of private households) Internet utilisation rate among the total population (%) Private households with broadband connections (% of private households) Prevalence of mobile phones among the populations, subscriptions per 100 inhabitants Pricing of local calls (10min, 3km) Pricing of long-distance calls (10min, 200km) Company web sites (% of all companies) On-line availability of basic services (% of 20 basic services) Share of Internet users who have made on-line acquisitions (% of the population) Share of companies making on-line acquisitions, excluding microsized enterprises (% of the total number of companies) Share of on-line sales in companies turnover (%) Patent applications submitted to EPO per one million inhabitants High technology patents granted by USPTO per one million inhabitants Number of scientific articles per one thousand inhabitants Labour productivity (GDP per working hour) Production value of high technology fields, per capita share in GDP (%) Added value produced by high and medium-high technology fields, per capita share in GDP (%) Share of high technology in total exports (%) Per capita share of market-driven competence-intensive services in GDP (%) Share of SME companies that have received public R&D funding (%) Share of SME companies engaged in innovative activities among all SME companies (%) Share of SME companies engaged in innovation cooperation among all SME companies (%) 16

17 knowledge value (continued) sustainable development Entrepreneurship Networking and openness to international activities Health income distribution Employment equality between sexes environmental protection quality of air quality of water biological diversity Share of active entrepreneurs among adult population (%) Capital investment in nascent companies, share in GDP (%) Share of business angels among adult population (%) Share of nascent companies among all active companies (%) Private sector s invekstment level (%) Share of inbound and outbound direct foreign investments as per capita GDP (%) Share of outbound direct foreign investments as per capita GDP (%) Share of inbound direct foreign investments as per capita GDP (%) Share of foreign funding in companies R&D expenditure as per capita GDP (%) Openness to international trade, goods Openness in international trade, services Life expectancy, men Life expectancy, women Healthy life expectancy, men Healthy life expectancy, women Proportional income distribution Poverty risk prior to social income transfers (%) Poverty risk after social income transfers (%) Employment level (% of people aged 15-64) Employment level of ageing people (% of people aged 55-64) Unemployment level (%) Share of the unemployed youth (%) Share of the long-term unemployed (%) Earned income tax level (%) Share of female Members of Parliament (%) Share of female Members of Cabinet (%) Women s employment level (%) Gender-based difference in earned income (%) Investment in environmental protection, euros per capita Per capita share of environmental protection in GDP (%) Volume of greenhouse gas emissions per capita Volume of greenhouse emissions in proportion to GDP Energy intensity, total consumption of energy sources in proportion to GDP Share of renewable energy sources of the total energy production Volume of sulphur oxide emissions in proportion to GDP Volume of nitric oxide emissions in proportion to GDP Volume of volatile organic compound emissions in proportion to GDP Volume of compound emissions that generate ozone in the lower atmosphere, in proportion to GDP Use of pesticides per cultivated land area, tonnes Share of endangered mammal species (% of known mammal species) Share of endangered nesting bird species (% of known nesting bird species) Share of nature reserves of the surface area (%) Table 1. Technology Barometer indicators as per thematic area 17

18 Information Knowledge Knowledge value Sustainable development Basic education Investment in R&D Understanding of knowledge, knowledge management Entrepreneurship Techno-scientific competence State of the envinroment General education and competence Application of new knowledge Environmental protection Networking and openness to international activities Social cohesion Information and communication technologies Figure 3. Finland s strengths and weaknesses in comparison to the reference group countries. In addition to the indicator-based comparison, Technology Barometer 2010 includes an enquiry addressed to four different respondent groups: members of the Finnish Association of Graduate Engineers TEK, young people studying at the upper secondary school level as well as political and business decision-makers. The enquiry was geared towards complementing and diversifying the indicator survey results through mutually comparing the four respondent groups views and the Technology Barometer results obtained in The enquiry section was divided into four parts in accordance with the partial indicators used: competence and knowledge generation, knowledge society development, innovative society and sustainable development. The first part sets out the respondent groups assessments concerning the techno-scientific competence prospects and young people s interest in a number of professions. The second part of the enquiry Knowledge society development depicts the respondent groups assessments of Finnish research activities, the prevailing state of technology development and various societal institutions, which have an impact on research and on societal development in general. The third part examines innovative societies. The level of investment, entrepreneurial activity and the impact of technology development on the quality of life are used as innovative society indicators. The enquiry s fourth part sets out assessments of sustainable development focusing on environmental threats, the state of the environment, and action taken by the authorities DISCUSSION Technology Barometer 2010 consists of two mutually supportive sections. The first contains indica- 18

19 tors focusing on past development with the aid of statistical methods comparing Finland s position to that of the reference group countries. The second section consists of a future-oriented enquiry containing complementary data from the indicator section, plus related conclusions, for use by the central decision-makers and interest groups. This discussion focuses on analysing a number of selected technological, economical and societal questions and challenges relating to the indicator section and the enquiry survey section. A more comprehensive viewpoint is applied to the barometer s indicator and enquiry survey sections to provide a synthesising analysis and conclusions based on the detailed information contained in various parts of the research material. The Discussion chapter is divided as follows: the first section examines those catalysts for future development that have been identified based on the indicator and enquiry survey sections of Technology Barometer The second section deals with Finland s possibilities to rise to the challenges imposed by these catalysts. The third section outlines the potential procedures to be carried out. Finally, there is a brief presentation of the overall observations analysing the on-going societal change CATALYSTS FOR FUTURE DEVELOPMENT THAT IMPOSE SIGNIFICANT CHALLENGES ON FINLAND It appears that globalisation is continually exerting an increasing influence on society as a whole. Structural change is a must for Finland in order to strengthen the global competiveness of its key industry sectors, such as the forest industry, the mechanical engineering industry and the IT cluster. With regards to the internationalisation indicators, Technology Barometer 2010 emphasises Finland s weak rating in comparison to the reference group countries. Considering Finland s exportdriven economic structure, its internationalisation indicators should be stronger. The country s service exports development has been slow. In the light of the indicators used, the capacity to manage and exploit globally generated techno-scientific knowledge and competence is becoming an increasingly central challenge for our innovation system. Global environmental problems will continue to be an aggravation and an additional challenge for energy production and consumption technologies is seen in curbing climate change. In the case of Finland, the Technology Barometer s indicator section highlights the country s weak rating in greenhouse volumes in proportion to its per capita GDP and population, which is expedited by the country s energy-intensive industrial structure. Curbing climate change requires that energy production be diversified and energy used more effectively by the various industries and other consumers. Working life is undergoing a radical change. Ubiquitous ICT and social media are blurring the boundaries between work and private life. Conventional quantitative indicators of organisational management can no longer provide relevant data on the factors of work-related motivation, such as the sensibility of work and job satisfaction. The enquiry survey section of Technology Barometer 2010 indicates that younger generations confidence in technology is reasonably strong. This is also seen in their attitudes towards the use of technology. At the same time, younger generations increasingly perceive the world through technology, in a less corporate manner, that is not based on communal views, for example. This development could open new possibilities for Finland to develop a work culture that is increasingly flexible, less dependent on corporate control and characterised by the creative application of ICT. Could a more community-oriented work culture be possible for Finland in future? Nevertheless, the development of working life and well-being will provide an adequate number of challenges at various levels due to Finland s weaker ratings, compared to the ref- 19

20 erence group, in the indicator comparison regarding the citizens health, income distribution and employment. The scope of public funding is becoming increasingly tighter, in the municipal economy in particular. The changing age structure of the labour force requires significant reformative decisions to be made in working life in the private and public sectors alike. Working life highlights the labour force availability. Improvement in productivity is a particular challenge in the public sector. As previously, Finland repeatedly received a weak rating in the utilisation of ICT in this barometer survey, compared to the reference group. This means that there is an abundance of unused potential to make ICT application more effective in the private and public sectors alike. According to the indicators of a knowledge-value society, after the transition from an information society to a knowledge society (what Jorma Olilla calls an entrepreneurial society ) Finland s success is relatively good, however FINLAND S OPPORTUNITIES TO RISE TO ITS CHALLENGES The Finnish innovation system s functionality is to be improved through structural change in the private and public sectors. This can only be based on our capacity to produce high-level results in basic research, and our ability to apply these results to our competence development and the commercialisation of products and services. The indicator section of Technology Barometer 2010 demonstrates that Finland has a number of distinct strengths, such as basic education of the highest global standard. In addition, positive progress has been made in the application of knowledge and entrepreneurship. In the future, the global struggle for competence will take place on two fronts. The first is connected to the quality of research, to people s capacity to produce new and unique research results, and their ability to apply these research results in practice. The second front entails pointing out those who have the best capacity to develop products and innovations that fulfil the needs and wishes of the consumers, users and user communities. This requires converting the current technologydriven product development activities into a process where the user s needs and requirements are understood and the employed technologies effects anticipated. The process of internationalisation must be intensified and its comprehensive exploitation inherently included in the development of our functional innovation system. When in transition to a digital society, new social media will have an increasing effect and the use of conventional media is anticipated to be replaced by their application. This view is also supported by the Technology Barometer s enquiry survey section. The opportunities of new technology should be exploited more comprehensively for the development of the private and public sectors. The new social media provide operating methods that enable the collection of a critical competence mass, its efficient utilisation and its combination with an open operating culture. This calls for an increasing number of experiments and risk tolerance, in the efforts to seek creative solutions to working life problems and innovation funding alike. The capacity to cope with future challenges requires more efficient anticipation of new technologies, of the opportunities provided by innovations, of their effects, and of their users and user communities needs and requirements. Examples of new industrial opportunities include proto-economies, environmental technology and related business activities, water technologies and water technology business, as well as the wide-scoped application of ICT as a new industrial infrastructure. 20

21 PRACTICAL UTILISATION OF OPPORTUNITIES REQUIRES DETERMINED ACTION It is extremely important to be able to anticipate the globally growing opportunities of new, demandgenerating industrial fields, for example the forest industry s orientation towards bioenergy and the chemical industry s interest in water-related issues. In addition, attention must be paid to the fact that investing in intellectual capital will play an increasingly significant role as a source of productivity growth. Even at present, intellectual capital investments are higher in volume compared to material investments. In the USA their share is above 10 percent of the per capita GDP, and almost 10 percent in Finland. Climate change is a principal catalyst for industrial renewal. This catalyst deserves increasing attention and the provision of considerable innovation resources. Unfortunately, statistics fail to comprehensively describe the share of environment technology or pure energy technology in economic growth, for example. The reason is that new technologies are developed and produced by companies specialising in the manufacturing technology. Scientific work and basic research is increasingly changing from individual inventors conventional and personal operating methods towards cooperation between research communities and the utilisation of a critical mass. Open innovation activities encourage researchers to increasingly embark upon cooperation with companies and various societal players. This means that research work has become more systemic by nature, which has partly been enabled by the huge increase in the number of people currently engaged in scientific work. Networking must be further developed between researchers, business life and the appliers of research-derived knowledge. Industrial operating methods are to be developed towards networking and the more intensive generation of added value, especially in the so-called bulk production sectors. Currently, innovation policy answers are being sought to climate and energy questions, among others, with the aid of partnerships between private and public players, such as the ICT SHOK programmes. The various technologies generate dynamics for change and a continual flow of challenges for the educational and scientific communities to rise to. The question is: how to organise the emerging requirements for change, which call conventional boundaries into question. The ICT SHOK programmes constitute an important instrument, regardless of the fact that their operating method may require major companies to pay for their participation. It is vital to prevent any such practice from excessively preserving the existing structures. This is a concern that was initially expressed in an extensive assessment of the Finnish innovation system published in the autumn of Citing the barometer s enquiry survey section, research investments should not be directed to the economically most profitable or exploitable fields of science alone. More risky resources that are directed in accordance with the researchers knowledge could be one form of research funding in other words funding that is genuinely based on the researchers research competence. This is a funding model that would stabilise the continually increasing coordinated funding whose scope is determined by the views of experts in administration and business life. This genuinely researcher-based viewpoint has been characterised as the corner stone for strengthening Finnish basic research, for example by MIT professor Bengt Holmström (Helsingin Sanomat, monthly supplement 11/2009) and Howard T. Jacobs, Finnish Professor of the Year 2009 (Acatiimi 9/2009). Up until now, the versatile development potential of the public sector s innovation activities has been exploited to a modest degree in Finland. ICT technologies and the wide field of social media in its entirety constitute a significant potential for intensifying the public sector s contribution. The 21

22 per capita GDP share of public research investment is about one percent, which is a high figure on the global scale but not significant considering the public sector s total expenditure. For example, the EU s current recommendation is currently as high as two percent. The promotion of service innovations is included in the innovation policy agenda but the generation of commercially successful innovations requires more effective action in the allocation of R&D resources SUMMARY The application of new technologies involves a variety of multifaceted interactive relationships between individuals, companies, societal organisations and people s living environment, for example. These combine resulting in various economic, social and other consequences that are vital to identify and assess on a versatile basis. This is an important part of a predictive operating model in the development of society, innovation activities, business life, science and technology. Many of the challenges described above can be influenced in future by developing the predictive assessment of various technologies and innovations, including the economic, social and ecological factors which have an impact on their development. Among other things, anticipatory assessments can be used to quickly create proactive preparedness for action as a precaution for unexpected change and new situations. Central anticipatory assessment tasks include the individualisation of globally promising business sectors, innovation development in accordance with the users needs and wishes, as well as clarifying the innovations societal needs and demand. 22

23 3. INDICATORS 3.1. COMPETENCE AND KNOWLEDGE GENERATION BASIC EDUCATION AND SCHOOLING In the Technology Barometer, assessing the level of basic education and schooling is based on the results of the international Programme for International Students Assessment (PISA).PISA is a research programme launched jointly by the OECD member countries to produce information on the state of education and schooling, including learning outside school, within an international frame of comparison. The PISA programme assessments are carried out at 3-year intervals measuring the reading literacy, mathematical, scientific and problem solving skills of young people aged 15 ( In the PISA survey, reading literary is understood as a skill that is widely applicable to the knowledge society and one which promotes lifelong learning. Reading literacy is defined as the understanding of written texts, their use and assessment for achieving the reader s personal objectives, to develop his or her skills and be prepared, and for participation in societal life. Mathematical skills are defined as the analysis of thoughts, their justification and communication, the formulation and resolving of mathematical problems in various thematic contexts and daily life situations. In this study, scientific skills refer to young people s ability to use their scientific skills and knowledge. The 2006 PI- SA survey also focused on clarifying students beliefs and attitudes to scientific questions as well as their scientific thinking and power of deduction. In addition, it was clarified how students understand their responsibility for sustainable development and the possibilities to contribute to it ( As in the previous measurements, the Finnish comprehensive school students had the best results in all skill entities surveyed. With regards to reading literacy, Finland is at the top, and second best among the OECD countries. Finland, the Netherlands and Japan are the leading countries in mathematical skills. Finland and Japan share the leading position in science performance. The attached combined index, the data of Technology Barometer 2005 and Technology Barometer 2007 are identical concerning basic education and schooling, and based on the 2003 PISA survey. The data of Technology Barometer 2010 is based on the 2006 PISA survey. 23

24 Figure 4. The compared countries relative ratings in basic education and schooling based on the PISA survey. A combined indicator GENERAL EDUCATION AND COMPETENCE The Technology Barometer measures citizens general education and competence with the aid of five indicators. Three of the indicators depict the literacy skills of adults and are based on the results of the OECD s Second International Adult Literacy Survey, SIALS, from In addition to adults reading literacy, the combined index includes the per capita GDP share of educational expenditure and participation in lifelong education. In this survey, the reading literacy is examined as a versatile skill to use printed text information, figures or numerical values so that the individual in question can perform the required tasks relating to his or her studies, work or active participation in societal activities. Because the adults reading literacy investigation has not been repeated since 2000, the indicator has not undergone any changes in this respect. Due to its citizens excellent reading skills, Sweden is the best among the countries compared. Finland is third best after Denmark, only slightly above the reference group s average value. The UK and the USA receive the weakest ratings relatively when measured by the said indicators. Japan s data were missing. The fourth indicator pertains to citizens general education and competence and measures the share of educational expenditure in the nation s per capita GDP. In Finland, the share of educational expenditure in the per capita GDP is lower than that of the other Nordic countries included in the comparison. In 2006, the per capita GDP share of educational expenditure was 6.1 percent in Finland, 6.9 percent in Sweden and 8.0 percent in Denmark. 4 The combined indicator value is an index figure where 0 points represents an average performance. The more positive or negative index value a country achieves, the better or worse it performs compared to all others in the reference group when measured by the combined indicator in question. 24

25 Figure 5. The share of educational expenditure of the per capita GDP, percentage (Eurostat). The Technology Barometer s fifth partial indicator of general education and competence is used to measure participation in lifelong learning. This indicator also shows that we are behind Sweden and Denmark but ahead of the Central European countries, apart from the UK. According to a 2007 labour force study, 23.4 percent of people aged had participated in education or in practical work training in Finland during the four weeks preceding the study in question. In Sweden the corresponding figure was 32.4 percent, 28.2 percent in Denmark and 7.8 percent in Germany. Figure 6. Participation in lifelong learning, percentage of people aged (EU Labour Force Survey, Eurostat). Figure 7. Relative ratings of the countries compared in terms of general education and competence, based on the indicators used to survey adults reading literacy, the nation s per capita GDP share of educational expenditure and of lifelong learning. 25

26 TECHNO-SCIENTIFIC COMPETENCE The Technology Barometer measures citizens techno-scientific competence with the aid of seven indicators. The first of these indicates the demographic share of people aged with higher education qualifications. This indicator is not restricted to the fields of science and technology, due to the fact that the launching of innovations in several fields, especially in the service sector, requires a wide variety of skills. The next two indicators are used to measure the number of graduates in new fields of science and technology, as well as the share of people with a doctoral degree in the demographic group of people aged and respectively. Two of the indicators describe the share of R&D personnel in the labour force, plus the share of women among the researchers. The final two indicators show the proportional share of citizens employed by high and medium-high technology industries, and by the competence-intensive service sector. The demographic group with higher education qualifications is a commonly used indicator of qualified labour force availability. In 2006, the share of people with higher education qualifications in the group aged was about 35 percent in Finland and Denmark, about 31 percent in Sweden, and about 40 percent in the USA and Japan. Regarding the share of basic degrees in techno-scientific fields in the age group 20-29, Finland has overtaken the UK and holds currently the first rating. In 2007, the corresponding share was 18.8 percent in Finland, 17.5 percent in the UK, 16.4 percent in Denmark, 14.4 percent in Japan, and 13.6 per thousand in Sweden. Figure 8. People with higher education qualifications, percentage of the demographic group aged (OECD Factbook 2009: Economic, Environmental and Social Statistics). Techno-scientific degrees are seen to comprise all higher education examinations in biology, physics, mathematics and statistics, information technology, engineering and technology, material production and processing, architecture and construction. The share of techno-scientific study places for beginners is quite high in Finland. In 2007, about 35 percent of new university students began their studies in a scientific or a techno-scientific field. Similarly, there continues to be a large number of applicants to these fields of education. 26

27 Figure 9. New degrees in scientific and techno-scientific fields, per thousand people aged (Eurostat). Regarding the share of doctoral degrees in techno-scientific fields in the age group 25-34, Finland rates second after Sweden. In 2007, 1.7 per thousand Swedish people in the age group achieved a doctoral degree in techno-scientific fields. In Finland the corresponding share was about 1.4 per thousand and 0.6 per thousand in Denmark. Figure 10. Doctoral degrees in techno-scientific fields, per thousand people aged (Eurostat). About three percent of the employed labour force is engaged in research and development in Finland, which is clearly the highest figure in the OECD countries. In 2005, the researchers share of the total labour force was 3.0 percent in Finland, 2.5 percent in Sweden, 2.3 percent in Denmark, and 1.7 percent in Japan. Figure 11. The R&D personnel s share of the total labour force, percentage (Eurostat). 27

28 The women s share among researchers is the largest in Sweden, about 36 percent. Finland rates second together with Denmark. In 2005, the women s share among researchers was about 30 percent in Finland and Denmark. Figure 12. The share of female researchers, percentage (Eurostat). The percentage share of the total labour force employed in high and medium-high technology industries is an ample indication of economic activities pursued by top-level technology sectors. Toplevel technology products include chemical products, machines and equipment, computers and business machines, electrical appliances, data communication equipment, precision instruments, motor vehicles, aircraft and other vehicles. In this comparison Finland rates second after Germany. Sweden is third and Denmark fourth. In 2007, the total labour force share employed in high and medium-high technology industries was 10.7 percent in Germany, 7.0 percent in Finland, 6.2 percent in Sweden, and 6.0 percent in Denmark. The USA s and Japan s data were missing. Figure 13. Labour force employed in high and medium-high technology industries, percentage of the total labour force. (EU Labour Force Survey (Eurostat). In the countries compared, about percent of the labour force is employed in competence-intensive service provision. Competence-intensive services include high technology services plus those where a relatively large share of the labour force is highly qualified. Sweden is the leading country in this respect. In 2007, the share of competence-intensive service provision of the labour force was 47.8 percent in Sweden, 43.5 percent in Denmark, 43.0 percent in the UK, 42.7 in the Netherlands, and 40.7 percent in Finland. 28

29 Figure 14. Employment in competence-intensive service sectors, percentage of the total labour force (EU Labour Force Survey. Eurostat). When the values of the aforementioned indicators are divided by the country group s standard deviation and their average value calculated, we obtain a combined index figure that shows the compared countries ratings in terms of their techno-scientific competence. According to the most recent data, chiefly from 2007, Finland has overtaken Sweden in techno-scientific competence. However, Sweden continues to retain its lead in the proportional share of people with a doctoral degree, in the share of female researchers, and in the labour force share of competence-intensive service sectors. Figure 15. Relative ratings of the countries compared in terms of techno-scientific competence, the share of people with higher education qualifications, and regarding the share of the labour force employed in high and medium-high technology industries and competence-intensive service provision KNOWLEDGE SOCIETY DEVELOPMENT INVESTMENT IN RESEARCH AND PRODUCT DEVELOPMENT The Technology Barometer uses three indicators to measure the intensity of research activities. The first two consist of the public sector s and private companies share of R&D expenditure as per capita GDP. The third indicator examines the share of public funding in R&D expenditure. Finland s vigorous investment in research and product development has been trailblazed and sustained by the business sector. The total growth of research activities in the business sector has been 29

30 fast since the mid-1990s. However, there is a strongly diversifying development in the various sectors research intensity behind the high growth figures. The electrical engineering industry has expanded the scope of its research in Finland to such a degree that its R&D expenditure was more that 70 percent of the entire business sector s corresponding expenditure in The growth of research in other fields of industry has been slower in comparison. Figure 16. Private companies R&D expenditure, percentage as per capita GDP (Eurostat). Finland is second after Sweden in terms of private companies R&D expenditure share as per capita GDP. In 2005, Finland s share was about 2.5 percent, and that of Sweden about 2.8 percent. In 2005, the share of public R&D expenditure as per capita GDP was 0.9 percent in Finland and Sweden, and 0.7 percent in Denmark. Figure 17. Public R&D expenditure, percentage as per capita GDP (Eurostat). In this millennium, the share of public funding in R&D expenditure has remained at a level of percent in Finland. The highest level has been recorded in the Netherlands, the UK and the USA where it is currently about percent. 30

31 Figure 18. The share of public funding in R&D expenditure, percentage (Eurostat). When the aforementioned indicator values are standardised and their average value calculated, we obtain an index figure that shows the compared countries proportional R&D intensity. According to this index figure Finland has slightly improved its proportional rating. Figure 19. Proportional ratings of the countries included in the comparison, with regards to their investment in R&D, the share of public and private R&D expenditure as per capita GDP, and the public and private sectors R&D expenditure share as per its total expenditure INFORMATION AND COMMUNICATION TECHNOLOGIES The Technology Barometer uses three indicators to measure the significance of information and communication technologies: the share of ICT expenditure as per capita GDP, ICT exploitation, and the extent of e-commerce. ICT EXPENDITURE The share of ICT expenditure as per capita GDP is used to measure the said technologies significance from the point of view of investments and intermediate product exploitation. ICT is seen to include business machines, data processing and data communication equipment plus related software and data communication services. In 2006, Sweden received the top rating regarding its share of information technology expenditure as per capita GDP, with Finland and Denmark being fifth. In addition to Sweden, the UK, Japan and the USA were ahead of Finland. The share of information technology expenditure as per capita 31

32 GDP is currently about 3.2 percent in Finland. In the per capita GDP share of ICT expenditure, Japan rates first with 4.2 percent and Sweden second with 3.5 percent. When examining proportional differences between the countries involved regarding the share of ICT as per capita GDP, it is observed that Finland is approaching the reference group s average value but is currently still below it, however. Sweden is clearly the leader. The USA s rating has also dropped below the average. In the USA, the share of ICT expenditure as per capita GDP is one of the lowest in the entire reference group. Japan s situation is the opposite. Figure 20. (left) Information technology expenditure, percentage as per capita GDP (Eurostat). Figure 21. (right) Communication technology expenditure, percentage as per capita GDP (Eurostat). THE USE OF ICT The use of ICT is measured using several indicators: the number of private households with Internet connections, the degree of Internet utilisation, the degree of mobile phone utilisation, the number of broadband data communication connections, the affordability of local and long-distance phone calls, the number of business web sites, and the availability of official services on the Internet. The private households possibilities to access the Internet is measured by the proportional share of households with Internet connections compared to the total number of households on the national scale. The availability of Internet connections in private households has increased significantly over the past few years. In 2004, 51 percent of private households used the Internet in Finland. In 2007, the figure had risen to 69 percent, and to 72 percent one year later in Finland, but is currently still below that of Sweden, Denmark, the Netherlands and Germany. The corresponding (OECD) figures from the USA and Japan were missing. 32

33 Figure 22. Private households with Internet access, percentage (OECD Factbook 2009). The Internet utilisation rate among the populations as a whole is higher than the Internet s availability in private households. In 2004, about 63 percent of Finnish people (age group 16 74) used the Internet at least once a week. In 2008, the corresponding figure was 78 percent. Even in this respect, we rate below Sweden, Denmark and the Netherlands. The differences are relatively small, however. Figure 23. Internet utilisation rate among the total population, percentage (Eurostat). Low data communication rate levels on the Internet constitute a significant obstacle for the exploitation of online services. Many people are discouraged by wasting their time on browsing multilayered web sites which are experienced as too cumbersome or too expensive. One of the indicators measures the share of private households with a broadband connection that enables a fast Internet connection. Regarding the number of private households with broadband connections in 2008, Finland rated fourth after the Netherlands, Denmark and Sweden. In 2006, Sweden was still slightly behind Finland but has subsequently intensified its investment in these data connections to a discernible degree. In 2008, about 66 percent of Finland s private households had a broadband connection. In Sweden the corresponding figure was 71 percent and 74 percent in Denmark and the Netherlands. The USA s and Japan s data were missing. 33

34 Figure 24. Households with broadband connections, percentage (Eurostat). The opportunities for personal communication are measured by the extent of mobile phone use. The extent of mobile phone use is an important factor since mobile phones provide a basis for the development and growth of various value added telecommunication services. Mobile phone penetration has been traditionally high in Finland. In 2008, the corresponding figures were 130 percent in Germany, 129 percent in Finland, and 119 percent in Sweden. Surpassing the level of 100 percent is possible because an individual may have several mobile phone subscriptions. Figure 25. Mobile phone utilisation rate among the total population, percentage (Eurostat). According to the EU s survey reports, the price range of telecommunication services for private households has a negative effect on the number of household-based Internet connections. The number of company-based Internet connections is not so directly dependent on the operating costs. The price range of telecommunication services also reflects the sector s prevailing competition situation on the national scale, as well as the operators preparedness to offer new consumer products and consumer services. In fact, two of the indicators are used to examine the costs of local phone calls and long-distance phone calls. It appears that Finland s position has weakened rather than improved regarding the price range of long-distance calls. Regarding the pricing of local calls, Finland is quite competitive in comparison to other countries, apart from the USA. 34

35 Figure 26. (left) The pricing of local phone calls in euros (10 minutes) (Eurostat). Figure 27. (right) The pricing of long distance phone calls in euros (10 minutes) (Eurostat). Regarding the number of business websites, Finland rates fourth behind Denmark, Sweden and the Netherlands. These countries also have the highest number of Internet connections and the highest Internet utilisation rates. About percent of businesses in Denmark, Sweden and the Netherlands have their own websites. According to the data from 2008, the corresponding Finnish percentage is 82. Figure 28. Companies with their own websites, percentage of all companies (Eurostat). The availability of Internet-based official services benefits both consumers and the administration sector at large. For the consumers this means enhanced information provision and the opportunity to save time in conducting their affairs with the authorities. The authorities benefit from the lower cost of service provision. The share of 20 basic services with total online availability is used as the indicator of available Internet-based basic services. In 2007, Finland rated fourth after the UK (89%), Sweden (75%), and Germany (74%) in the provision of Internet-based official services. In Finland 67 percent of the basic services were available on the Internet. The USA s and Japan s data were missing. The UK and Germany have increased the online availability of basic services fairly quickly. 35

36 Figure 29. The online availability of 20 basic services (Eurostat). ecommerce The extent of ecommerce is measured with the aid of three indicators: the share of year-olds who have made online acquisitions, the share of companies making acquisitions on the Internet or other nets, compared to the total number of companies, and the proportional share of online sales of the companies total turnover. The last two of the said indicators describe the extent of companies e-commerce. Finland rates last among the countries included in the comparison, regarding the frequency of online purchasing. The proportional share of Internet users who have made online acquisitions is highest in the UK 49 percent in With its current figure of 47 percent Denmark rates second. Sweden s corresponding share was 38 percent and that of Finland 33 percent. In the 3-month period preceding the survey enquiry, 33 percent of Finnish Internet users had made acquisitions on the Internet. Figure 30. The share of Internet users who had made online acquisitions, percentage (Eurostat). In 2008 Sweden was at the top regarding the share of companies making online acquisitions, compared to the total number of companies. More than 60 percent of Swedish and Danish companies were engaged in online acquisitions. In this respect, Finland rates last: 42 percent of Finnish companies reported having made online acquisitions. 36

37 Figure 31. The share of companies engaged in online purchasing, excluding micro-sized enterprises and financial services, percentage of the total number of companies (Eurostat, Statistics Finland). In 2007, the share of online sales in the turnover of companies with more than 10 employees (excluding financial services) was about percent in Finland and Sweden. In Denmark the corresponding figure was 22 percent and 19 percent in the UK. Figure 32. The share of online sales in companies turnover, excluding micro-sized enterprises and financial services, percentage of the total number of companies (Eurostat). UTILISATION OF INFORMATION AND COMMUNICATION TECHNOLOGIES According to this combined indicator, Finland is distinctly below the average level in terms of ICT exploitation when compared to the reference group. Sweden is clearly the leader. In addition, Sweden has the reference group s highest per capita GDP share of ICT expenditure. Denmark and the Netherlands have narrowly overtaken the UK that is still rated second in the previous barometer survey in this regard. Finland s poor success is due to its less extensive availability of Internet and broadband connections to private households, compared to the reference group, the country s relatively expensive longdistance phone calls, and its lower level of e-commerce, above all. In this conjunction, the USA s and Japan s data are only based on their per capita GDP share of ICT expenditure, Internet availability (Japan), the prevalence of mobile phones, and the pricing of local and long-distance phone calls. This means that their ratings are not fully comparable to the rest of the countries involved. The per capita GDP share of ICT expenditure and the prevalence of mobile phones are below average in the USA. Correspondingly, the USA has an above average price lev- 37

38 el for long-distance calls, like Finland. Figure 33. Relative ratings of the countries included in the comparison, with regards to their ICT expenditure as per capita GDP, and their use of ICT and ecommerce in general APPLICATION OF NEW KNOWLEDGE The Technology Barometer uses three indicators to measure the application of new knowledge. These are the SME companies share of public-funded research projects in the business enterprise sector, the share of companies producing their own innovations from all companies, and the share of SME companies participating in innovation cooperation from all SME companies. The cooperation indicators focus on SME companies, due to the fact that almost all large companies participate in innovation activities and operate globally, with their operating methods being copied from one country to another. The share of SME companies in public-funded R&D projects in Finland is the third largest after Denmark and the Netherlands. More recent statistics concerning SME companies share of all companies receiving public funding was not available from Eurostat to a comprehensive extent. Figure 34. SME companies share of companies with public-funded R&D projects, percentage (Eurostat). According to the results of the European Union s innovation study CIS 2006, the proportional share of SME companies engaged in innovation activities, compared to the total number of SME companies (excluding micro-sized enterprises), is highest in Germany and second highest in Finland, amounting to about 50 percent. Unlike the reference group countries, the SME companies participation in innovation cooperation has clearly increased in Finland according to CIS 2006, compared 38

39 to the previous survey. The latest survey indicated that it is about 28 percent. The result of a GEM assessment indicates that the predominantly innovative activities (having unique products, and/or no competitors, and/or using the latest technology) of starter entrepreneurs only amounted to the average level of about 11 percent in Finland in This rating is the Nordic countries lowest in the comparison (GEM 2007). The results of the CIS 2006 community innovation survey indicate that the average rating of all SME companies is about 21 percent: of the SME companies, 21 percent reported that they had developed new products for the market during the years Figure 35. (left) The share of SME companies engaged in innovation activities of the total number of SME companies, excluding micro-sized enterprises, percentage (Community Innovation Surveys CIS 2004 and 2006, Eurostat) Figure 36. (right) The share of SME companies engaged in innovation activities of the total number of SME companies, percentage (Community Innovation Surveys CIS 2004 and 2006, Eurostat) According to this combined index, Finland rates top in the application of new knowledge, with Sweden s and Denmark s rating being average and that of the Netherlands and Germany being below average. The USA s and Japan s data were missing. Figure 37. The proportional ratings of the countries being compared in the application of new knowledge, measured by the SME companies share of public-funded research projects in the business enterprise sector, the share of companies producing their own innovations from all companies, and the share of SME companies participating in innovation cooperation from all SME companies. 39

40 3.3. INNOVATIVE SOCIETY UNDERSTANDING OF KNOWLEDGE, KNOWLEDGE MANAGEMENT The Technology Barometer approaches the understanding of knowledge and knowledge management from two different points of view: the viewpoint of R&D achievements and that of top-level technology. R&D achievements are measured by three indicators. These consist of the number of patent applications filed with the European Patent Office (EPO), the number of high technology patents per one million inhabitants granted by the United States Patent and Trademark Office (USP- TO), and the number of scientific articles published per one thousand inhabitants. In the previous barometer survey, the indicator consisted of the total number of patents granted by USPTO per one million inhabitants. In addition, the previous survey included the number of articles widely referred to by per one thousand inhabitants. With regards to these references, Finland rated third after Sweden and Denmark. Another item of interest is the nations orientation towards competence-intensive services as well as the production and export of high technology. Our view is that, in a knowledge-based society, the understanding of knowledge, and knowledge management, should be perceived as the increasing productivity of labour, and as a high share of competence-intensive services produced by top-level technology sectors. The pharmaceutical industry, the manufacture of computers and business machines, data communication and related equipment, and the aerospace industry, are considered as high technology sectors. The sectors of medium-high technology cover the manufacture of chemicals, machinery and equipment, vehicles, electrical equipment and instruments. The number of patent applications and granted patents in high technology per one million inhabitants is used to complement the private sector s R&D investment. This is due to the fact that patentrelated figures more clearly indicate the level of new competence, compared to R&D investment in general. However, patenting is not the only way to protect industrial rights, and some of the inventions made remain unpatented. The European Patent Office (EPO) uses an indicator that measures the number of patent applications. This indicator is also more favourable to the European companies, compared to their American and Japanese competitors. In 2005, Germany had 271 EPO patents pending per one million inhabitants, Sweden 240 and Finland 230. It should be observed that Eurostat has changed its patent application time sequence, and that the most recent data is not fully identical to that used by the previous Technology Barometers. Figure 38. The number of patent applications filed with EPO per one million inhabitants (Eurostat). 40

41 In 2003, USPTO granted high technology patents per one million inhabitants as follows: the USA 79, Japan 58 and Finland 35. With regards to the proportional share of high technology patents, Germany (12) and Sweden (10) are clearly behind Finland. Figure 39. High technology patents granted by USPTO per one million inhabitants (Eurostat). According to the OECD statistics, the number of scientific articles per one thousand inhabitants has risen in Finland, compared to the level measured at the beginning of this millennium. In 2005, the number of scientific articles per one thousand inhabitants was highest in Sweden, second highest in Denmark, and third highest in Finland. Figure 40. Number of scientific publications per one thousand inhabitants (OECD Factbook 2009: Economic, Environmental and Social Statistics, S&E articles). In the Technology Barometer, the productivity of labour is indicated by GDP per one working hour corrected by the purchasing power (EU15 = 100). The productivity of labour is highest in the USA and the Netherlands. The USA s figure used here is from In 2004 and 2007, Finland rated sixth amongst the countries being compared regarding the productivity of labour. 41

42 Figure 41. The productivity of labour (GDP per one working hour), EU15 = 100 (Eurostat). An additional indicator that is included in the Technology Barometer measures how much of a nation s industrial added value is generated by high technology fields as per capita GDP. According to this indicator Finland is clearly ahead of all others. In 2006, the share of high technology fields from the industrial added value generated as per capita GDP was 13.5 percent in Finland, 9.3 percent in Sweden and 5.0 percent in Denmark. Figure 42. High technology manufacturing sector, production value as a percentage of GDP (Eurostat). The per capita GDP share of the high and medium-high technology sectors from the nation s industrial added value is highest in Germany about 12 percent, mainly due to its automotive industry. In Finland and Sweden the corresponding figure is about 10 percent. Figure 43. The total value added generated by the high and medium-high technology sectors, percentage of the per capita GDP (OECD Science, Technology and Industry Scoreboard 2005, 2007). 42

43 About one quarter of the USA s and the UK s exports consist of high technology products. In 2007, the corresponding share was 18 percent in Finland, 14 percent in Sweden and 13 percent in Denmark. The Netherlands situation was similar to Finland, the share of high technology exports being about 18 percent. Figure 44. Exports from high technology sectors, percentage of the total exports volume (Eurostat). Service provision is undergoing an intensive process of internationalisation, which also means toughening competition and more exacting requirements regarding productivity and quality. The provision of competence-intensive services especially, such as that of R&D and telecommunication services has increased rapidly in Finland. In this connection, competence-intensive services include postal and telecommunication services (sector 64), finance and insurance (65 67), R&D services, data communication services, and other business services. In addition to the USA, the per capita GDP share of market-driven competence-intensive services is high in the UK as well almost 25 percent. In 2004, the Netherlands rated third in this respect. Germany also has a higher share of competence-intensive services from total production, compared to the Nordic countries involved. In Finland the share of these services was the reference group s lowest in 2004 (13.3%), which was slightly below that from 2002, even if the data from 2002 is not fully compliant with the nation s most recent economic statistics from the said year. Figure 45. Market-driven competence-intensive services, percentage of the per capita GDP (OECD Science, Technology and Industry Scoreboard 2005, 2007). The USA is at the top regarding the understanding of knowledge, and knowledge management. The USA is at the top regarding the number of high technology patents, the productivity of labour, the share of high technology exports, and the per capita GDP share of market-driven competence-inten- 43

44 sive services. In the latest indicator survey Finland has narrowly overtaken Sweden and is currently second. Finland rates third in the number of high technology patents per one million inhabitants and is clearly ahead of Sweden. Regarding the number of all USPTO-granted patents, Finland and Sweden are fairly equal in strength. Denmark s relative rating appears to have declined in comparison to the reference group. This may partly be due to its low rating in high technology patents, which it shares with the Netherlands and the UK. Figure 46. Relative ratings of the countries included in the comparison, when measured by the understanding of knowledge, knowledge management, the number of patents, scientific publications, the productivity of labour, the share of high technology and competence-intensive fields in the increasing of added value, and by the export level of high technology ENTREPRENEURSHIP AND ECONOMIC REGENERATION The Technology Barometer uses five indicators to measure innovative entrepreneurship and economic regeneration. These indicate the level of the nation s entrepreneurial activity or people s willingness to establish a business an independent enterprise or an employer-supported one and their willingness to take the entrepreneurial risk, the GDP share of capital investments in nascent businesses, the share of business angels, the share of new businesses, and the GDP share of fixed investments. The sources of these indicators consist of information collected by private companies and by public organisations. Little is known about the reliability and quality of the former source group. However, many indicators are based on this information because corresponding public information is not available. The Global Entrepreneurship Monitor (GEM) is a consortium that investigates the capacity of various national economies to generate new businesses and support their growth. The level of entrepreneurial activity refers to the share of the adult population (age group 16 64) who actively endeavour to start a business or continue a business they have started. According to the GEM survey results from 2008, about 7.3 percent of the Finnish working aged adults were actively engaged in starting entrepreneurial activities. In the USA the corresponding figure was 10.8 percent, 4.4 percent in Denmark and 4.2 percent in Sweden. The share of female entrepreneurs especially has increased steadily in Finland during the period. Regarding the number of female entrepreneurs, Finland is at the top from the Nordic countries and above the GEM countries average level (GEM 2007). 44

45 Figure 47. Entrepreneurial activity, percentage of the adult population (Global Entrepreneurship Monitor, GEM, 2005, 2008 Executive Report). The indicator of venture capital investments in nascent companies measures the proportional share of all capital investments made in nascent companies as per capita GDP. In this context, a capital investment only includes the seed funding and the initial capital. Regarding the share of nascent companies capital investments as per capita GDP, Finland s rating is relatively good. Finland rates third after Sweden and Denmark. In 2007, the share of nascent companies capital investments was about percent of the GDP in the Nordic Countries. In Finland this share was about 0.04 percent. Figure 48. Nascent companies capital investment, percentage as per capita GDP (Eurostat). Similarly, the share of business angels from the total population in 2008 was relatively high in Finland. Of the adult Finnish population, about 7% were engaged in business angel activities in 2008, by contributing to the funding of nascent business over the past three years. The financiers mostly consist of the recipients own family members and friends who finance nascent business to a certain extent. 45

46 Figure 49. The share of business angels of the adult population, percentage (GEM 2003, 2009). The level of business start-up activity indicator measures the percentage of nascent companies from the total number of companies currently in operation. The Technology Barometer uses this indicator to measure a nation s capacity for economic regeneration. The on-going turmoil in the business enterprise sector its dynamics can be regarded as a central factor of a strong economy. In 2005, the share of new companies from all those currently in operation was 8.3 percent in Finland. In Sweden the corresponding figure was 7.0 percent, 13.2 percent in Denmark and 13.7 percent in the USA. The share of nascent companies has increased fairly rapidly in Denmark. Figure 50. The share of real enterprise births from all active companies, percentage (Eurostat). In the Technology Barometer, the investment rate of a national economy is measured by the private sector s share of fixed capital investments in GDP. In 2008, Finland achieved an equal rating with Germany and the Netherlands regarding the GDP share of fixed investments. Denmark clearly invested more than Finland but Finland correspondingly more than Sweden. In 2008, the private sector s investment rate was 18.1 percent in Finland. 46

47 Figure 51. The private sector s investment rate, percentage (Eurostat). When measured by the indicators of innovative entrepreneurship and economic regeneration, the USA and Denmark are the best countries in the reference group. Denmark is the best Nordic country rating second after the USA. According to the most recent survey, Finland has overtaken the UK and rates third after Denmark among the reference group. Figure 52. Relative ratings of the countries included in the comparison with regards to entrepreneurship and economic regeneration according to the GEM survey results, when measured by the GDP share of nascent companies capital investments, by the share of new companies and the GDP share of fixed capital investments NETWORKING AND OPENNESS TO INTERNATIONAL ACTIVITIES The Technology Barometer uses six indicators to measure the level of networking and openness to international activities. These are the GDP percentage of outbound investment stocks, that of inbound investment stocks, and the total level of these two investment types, the GDP percentage of foreign R&D investments, and openness to international trade regarding both products and services. The amount of inbound direct foreign investment stocks could also be higher in Finland. Practically every year, starting from the mid-1980s, outbound direct investment stocks from Finland to other countries have considerably exceeded the level of investments made in the opposite direction. Regarding the share of inbound direct investment stocks, only the large national economies Japan and the USA rate lower than Finland. 47

48 In 2006, the GDP share of average inbound and outbound direct investment stocks was highest in Sweden (5.6 percent), second highest in the Netherlands (5.4 percent) and third highest in the UK (5.0 percent). In Finland the corresponding share was 2.1 percent. In 2007, the Netherlands rated first (9.5 percent), the UK second (8.2 percent), and Denmark third (5.2 percent). In Finland the corresponding share was 3.7 percent in The USA s and Japan s data were missing from This is the reason why 2006 is used as the reference year in Figure 53. Figure 53. The share of inbound and outbound direct foreign investments as per capita GDP, percentage (Eurostat). In 2007, in the GDP share of outbound direct investment stocks the Netherlands was clearly the highest (105.0 percent). In Sweden the corresponding figure was 66.6 percent, 61.2 percent in the UK, 54.0 percent in Denmark, and 43.2 percent in Finland. Figure 54. The share of outbound direct foreign investments as per capita GDP, percentage (Eurostat). The GDP share of inbound direct investment stocks was also highest in the Netherlands (86.7 percent). Regarding the Nordic countries, Sweden (57.9 percent) and Denmark (47.4 percent) were ahead of Finland. In 2007, the GDP share of the total amount of direct inbound investment stocks was 33.5 percent in Finland. 48

49 Figure 55. The share of inbound direct foreign investments as per capita GDP, percentage (Eurostat). Foreign companies share of R&D investments in the business enterprise sector is used to measure the nation s success in international expert networks. The UK has achieved the best results in attracting foreign R&D investments. The GDP share of foreign funding of R&D investments in the business enterprise sector was only slightly above 0.2 percent in Finland and Denmark in In Sweden the corresponding figure was about 0.3 percent. Figure 56. The share of foreign funding of R&D investments in the business enterprise sector, percentage as per capita GDP (Eurostat). A nation s openness to international trade is measured with the aid of two indicators. These focus on the proportional average share of foreign trade (imports and exports) of the per capita GDP. One of the indicators highlights the exchange of products, and the other that of services. In cases where the proportional share of foreign trade as per capita GDP increases over time, this can be interpreted as the national economy s increasing integration with the world economy. With regards to the openness of trade Finland s rating is average together with Germany, Sweden and Denmark. In 2007, the share of foreign trade in products of the per capita GDP was 34.2 percent in Finland. In service provision, our national market is among the most impenetrable ones, in comparison to the small and medium-sized national economies in the reference group. The Netherlands is top regarding the trade of products and Denmark top regarding service provision. In 2007, the share of foreign trade of the per capita GDP was 9.3 percent in Finland. 49

50 Figure 57. (left) Openness to international trade products (Eurostat). Figure 58. (right) Openness to international trade services (Eurostat). When measured with the combined indicator of networking and openness, the Netherlands is a highly networked and international economy. Japan is the extreme opposite. In the international activities indicators Finland rates as fourth worst after Japan, the USA and Germany. Sweden has managed to increase its openness and is currently the second most open economy to international trade and investments. Figure 59. Relative ratings of the countries included in the comparison, with regards to networking and openness in international activities, the share of direct foreign investments as per capita GDP, the share of foreign R&D expenditure as per capita GDP, and openness to international trade SUSTAINABLE DEVELOPMENT SOCIAL COHESION The Technology Barometer measures social cohesion with the aid of citizens health, income distribution, employment and equality between sexes. The health indicators consist of life expectancy and healthy life expectancy. Income distribution is measured with the aid of three indicators. These are: an income distribution index, which is defined as the proportion between the fifth of the population with the highest income and the fifth with the lowest income, as well as the risk of poverty prior to 50

51 social income transfer, and that once the said transfers have been made. The employment level is measured by means of five indicators, two focusing on the employment rate and three on the unemployment rate. The employment rate is calculated by dividing the number of employed people aged 15 to 64 by the total population of the same age group, and that of older workers by dividing the number of employed people aged 55 to 64 by the total population in the same age group respectively. Regarding the unemployed, both the total unemployment rate and the rate of the young unemployed and the long-term unemployed are examined. Job satisfaction is measured by the tax rate of middle-income earners. Equality between men and women is measured using four indicators. The first two described indicate women s participation in decision-making. This means measuring women s share in national parliaments and national cabinets. The third indicator focuses on women s employment rate, and the fourth on salary differences between sexes, in other words the proportional share of women s average earnings per hour of men s average earnings per hour. HEALTH In 2007, the life expectancy of new born babies in Finland was 83 years for women and 76 years for men, which represented an average level in the reference group. In the countries being compared, women reach an average age of 63 years and men that of 63 years, prior to the detection of any functional limitations. The corresponding age is 5 years lower for women and 6 years lower for men in Finland. In the previous survey based on data from 2003, the corresponding figure was 4 years for women and men alike. This means that Finland has slumped lower below the average value in the reference group, regarding citizens health. Figure 60. Life expectancy for men (Eurostat). Figure 61. Life expectancy for women (Eurostat). 51

52 Figure 62. (left) Healthy life expectancy for men (Eurostat). Figure 63. (right) Healthy life expectancy for women (Eurostat). INCOME DISTRIBUTION Differences between the poorest and the wealthiest people in the EU countries in 2007 were lowest in Sweden (3.4), Denmark (3.7) and Finland (3.7), and highest in the southern EU member states, Germany (5), and the UK (5.5). Income disparity has increased in several of the countries being compared, most markedly in Germany, Denmark, Finland and the UK. Figure 64. The income distribution ratio (Eurostat). In the reference group of countries, the poverty risk prior to any social income transfers was highest in the Nordic countries and the UK. Once the social income transfers have been made, the situation is exactly the opposite: the Nordic countries have the lowest post-income-transfer poverty risk. However, a clear increase can be observed in Finland in this respect after

53 Figure 65. (left) The poverty risk prior to any social income transfers, percentage (Eurostat). Figure 66. (right) The poverty risk once the social income transfers have been made, percentage (Eurostat). EMPLOYMENT On the one hand, Finland rated below average in all the employment indicators in 2007 and On the other, our employment development was positive according to all of the said indicators. In 2007, 70.3 percent of Finland s population in the age group was employed (with the reference country group s average value being 73 percent). In 2007, the employment rate of ageing people (those aged 55 64) was 55 percent in Finland (average 59 percent). With regards to the unwanted highest total number of unemployed people, Finland was joint top with Germany, and top with Sweden regarding the share of the young unemployed. The number of long-term unemployed was clearly highest in Germany. Regarding the tax rate of middle-income earners in 2007, Finland rated fourth in the reference group after Germany, Sweden, the Netherlands and Denmark. In the said countries, especially in Sweden and Germany, the income tax rate was higher compared to Finland. Figure 67. (left) The employment rate, percentage of employed people aged (EU Labour Force Survey. Eurostat). Figure 68. (right) The employment rate of ageing people (those aged 55 64), percentage (EU Labour Force Survey. Eurostat). 53

54 Figure 69. (left) The unemployment rate, percentage (EU Labour Force Survey. Eurostat). Figure 70. (right) The unemployment rate of young people, percentage (EU Labour Force Survey. Eurostat). Figure 71. (left) The share of long-term unemployed people, percentage (Eurostat). Figure 72. (right) The income tax rate, percentage (Eurostat). EQUALITY BETWEEN SEXES In 2008, the share of female members of parliament was about 41 percent, and that of female cabinet ministers 57 percent. In 2007, women s employment rate was 68.5 percent in Finland, 71.8 percent in Sweden and 73.2 percent in Denmark. Generally speaking, the Nordic countries, the UK and the Netherlands have the highest women s employment rate figures. The USA s and Japan s data were missing. Women s average earnings per hour are about 80 percent of men s average earnings per hour in Finland. In this respect, Finland receives an average rating. The Netherlands, Germany and the UK have the highest differences in average hourly earnings. Women s average earnings per hour are about 82 percent of men s average earnings per hour in Sweden. This difference can be partly explained by different job descriptions. 54

55 Figure 73. (left). Women s share of parliamentary seats, percentage. (United Nations Statistics Division. Demographic and Social Statistics) Figure 74. (right). Women s share of national cabinet seats, percentage (IPU, United Nations). Figure 75. (left) Women s employment rate, percentage (EU Labour Force Survey. Eurostat). Figure 76. (right) Salary differences between sexes, percentage of men s average hourly earnings (Eurostat). Within the reference group, Finland is an average country in the Technology Barometer s social cohesion indicators. The comparison is restricted to the west European national economies only, due to the fact that material is not sufficiently available from the USA and Japan. However, Finland rates below the average in terms of the population s health and employment. In 2007, the Finnish population continued to have a clearly lower healthy life expectancy rate, compared to the reference group, and the rating had hardly improved from 2003, contrary to the other countries involved. In addition, Finland s unemployment level of young people was still second highest after Sweden in According to the total index, Sweden is top among the countries being compared but has lost some of its previous lead. Denmark and the Netherlands have retained their above average ratings. Germany and the UK receive the weakest rating in this respect. Finland and Germany jointly have the reference group s weakest employment rating. In terms of equal income distribution Finland receives an average rating among the reference group. Nevertheless, the post-income-transfer poverty risk has increased more quickly in Finland, compared to the reference group. 55

56 Figure 77. The compared countries relative ratings in terms of citizens health, income distribution, employment and equality between sexes ENVIRONMENTAL PROTECTION The Technology Barometer uses six different indicators to measure the action taken to achieve sustainable development. These are: investment in environmental protection, the volume of greenhouse gas emissions, which reflects the strengthening greenhouse effect and progressing climate change, the general environmental efficiency of the economy, and the use of renewable energy sources. The nation s environmental protection expenditure is also viewed in proportion to its per capita GDP and the number of population. The economy s environmental efficiency refers here to its energy consumption (calculated as equivalent kilograms of oil) as per capita GDP. Finland s investment in environmental protection is among the highest in the reference group, when measured by its per capita GDP and population. Contrary to the previous Technology Barometer rounds, this survey focuses on examining the private and public sectors summarised environmental expenditure per capita. Data from several countries in the reference group were missing. Figure 78. (left) Investment in environmental protection, euros per capita (Eurostat). Figure 79. (right) Investment in environmental protection, percentage as per capita GDP (Eurostat). In 2006, Finland s greenhouse gas emissions volume was second highest after the USA, even though the per capita GDP share of these emissions is currently decreasing. 56

57 Figure 80. (left) Volume of greenhouse gas emissions per capita (Eurostat). Figure 81. (right) Greenhouse gas emissions as per capita GDP (Eurostat). A sustainable energy economy includes the efficient use of energy, the saving of energy, and increasing the share of renewable energy sources. In the industrial sector, the key concept is environmental efficiency, in other words the relation of the economic output to the prevailing environmental pressures, which are measured either by the volume of pollutant emissions or by the use of resources. Consequently, it must be observed that in Japan in a densely populated country that has always suffered from a shortage of natural resources industrial production focuses on sectors and products with low energy consumption levels. Finland s energy intensity level is highest after the USA. The share of renewable energy sources of the total energy production volume is clearly highest in Sweden: about 60 percent of Sweden s energy is produced using renewable energy sources such as hydro power. In Finland and Denmark the corresponding figure is about 30 percent. Figure 82. (left) Energy intensity, the total consumption of energy sources as per capita GDP (Eurostat). Figure 83. (right) Share of renewable energy sources of the total energy production (Eurostat). In terms of environmental protection Finland rates as an average country. Japan, Sweden and Denmark are joint top. The USA is clearly below average due to its high volume of greenhouse gas emissions. 57

58 Figure 84. Relative ratings of the countries compared, with regards to their environmental management, the share of environmental protection expenditure, and greenhouse gas emission volumes, their environmental efficiency, and their share of renewable energy sources in energy production STATE OF THE ENVIRONMENT The Technology Barometer uses three indicators to assess the state of the environment. These are the quality of air and water and the biological diversity. AIR QUALITY Fossil fuels are used in power production, industry and motor vehicles, which cause air pollutant emissions and related adverse effects on health and the environment. The air quality index calculations include the volume of sulphur dioxide, nitric oxide, volatile organic compounds and the volume of organic compounds and tropospheric ozone precursors. These volumes are viewed in proportion to the per capita GDP of each country being compared. Finland is the weakest in the reference group regarding its per capita GDP share of sulphur and nitric oxide emissions. The UK is the second weakest regarding sulphur dioxide emission, and Denmark regarding nitric oxide emissions. Germany and the UK have clearly the highest levels of organic compound emissions as per capita GDP. Finland s data was missing regarding the volume of volatile compounds and tropospheric ozone precursors. Exceeding the air quality guideline values for particle-form impurities and nitric oxide is particularly common in Finland. Nitric compounds can travel long distances with winds, this means that long-distance conveyance constitutes a significant portion of sulphur, nitric and fine-particle fallouts. 58

59 Figure 85. The volume of sulphur oxide emissions per capita GDP (Eurostat). Figure 86. The volume of nitric oxide emissions per capita GDP (Eurostat). Figure 87. The volume of volatile organic compound emissions per capita GDP (Eurostat). Figure 88. The emission volumes of tropospheric ozone precursors, per capita GDP (Eurostat). WATER QUALITY Technology Barometer 2010 measures water quality only with the aid of the pesticide volume used per cultivated area. Comprehensively updated comparable data is not available concerning the volume of organic compound emissions from agriculture and industry, from the use of fertilisers, or on phosphorus volumes diluted in waterways. After Japan, the use of pesticides per cultivated area is highest in the Netherlands. Figure 89. The use of pesticides per cultivated land area, tonnes per 1000 hectares (Eurostat, OECD). 59

60 BIOLOGICAL DIVERSITY The impoverishing biological diversity of the globe (biodiversity) is considered as one of the most difficult environmental problems. Biological diversity includes the hereditary variation of species, the number of species and the versatility of environments formed by species and their lifeless environments. In addition to natural species, the concept includes cultivated plants, domestic animals and the natural processes involved in the functioning of ecosystems. The Technology Barometer measures biodiversity with the aid of three indicators, concerning which there is internationally comparable information available. These are the number of threatened mammal species and nesting bird species, and the scope of natural conservation areas. Finland is among the top countries in all the biodiversity indicators. The scope of natural conservation areas is the only exception where only Sweden rates higher than Finland. Among the countries compared, the number of threatened mammals is highest in Germany and that of threatened nesting bird species in the Netherlands. The number of threatened mammal species is lowest in Finland respectively. Figure 90. The share of threatened mammal species, percentage of mammal species known (OECD). Figure 91. The share of threatened nesting bird species, percentage of nesting bird species known (OECD). Figure 92. The share of natural conservation areas, percentage of total area (Eurostat). Finland rates third after the USA and Sweden in the environmental state comparison. This is due to Finland s good quality of water and high biological diversity. 60

61 Figure 93. The compared countries relative ratings with regards to their quality of air and water, and their biological diversity. 61

62 4. SURVEY, QUESTIONNAIRE RESULTS 4.1. MATERIAL Technology Barometer 2010 represents the 4th generation of the publication series in question. The previous versions were published in 2004, 2005 and 2007 (Naumanen 2004, 2005; Lehtoranta et al. 2007). 5 The survey enquiry of Technology Barometer 2004 was carried out in the autumn of 2003, and that of the subsequent Technology Barometer in the spring of The material for Technology Barometer 2007 was collected in spring This means that the four Technology Barometers have been implemented at intervals of roughly two years. The enquiry questionnaire basis of this Technology Barometer version was collected in the autumn of Similar to Technology Barometer 2007, the analysis of this material is presented as an independent entity. The survey was directed at the membership of The Finnish Association of Graduate Engineers TEK, young people, politicians, and representatives of business and commerce, and these formed the four respondent groups of the survey. The first respondent group TEK Membership consists of the organisation s council members, members of the board of trustees, and select committee members. There are 74 responses from this respondent group. The second respondent group is that of Young People for which a sample was gathered from six upper secondary schools located in different parts of Finland. These upper secondary schools were as follows: Savonlinnan lyseon lukio, Eurajoen lukio, Nastolan lukio, Lahden yhteiskoulun lukio, Maunulan yhteiskoulun lukio (Helsinki) and Laurin lukio (Salo). These schools are the same as in the previous survey and the respondents were 2nd year students and students sitting for their matriculation examination. All the respondents forming this sample responded to the questions. There are a total of 210 responses from the group Young People. However, the persons who responded were not the same as those who responded during the previous survey rounds of the Technology Barometer. The third group is that of Politicians and the fundamental set consists of the Members of the Parliament s Committee for the Future, provincial leaders, and the members of the councils of the seven biggest towns. Of the group Politicians, 34 people responded to the survey. The fourth group of respondents is that of Representatives of Economic Life. The fundamental set forming this group come from the one hundred largest Finnish companies measured in terms of their product development investments. A sample of 53 companies was obtained from among these. The various respondent groups were allocated their own specific series of questions. Due to the abundance of this material, we shall here concentrate on presenting the differences of opinion between the respondents groups, and any changes that have occurred compared to the results of the previous Technology Barometer survey. The figures present the respondent groups average response. 5 Naumanen, Mika (2004). Technology Barometer. Developed to measure citizens attitudes and the nation s orientation towards a knowledge-based society. 97 p. The Finnish Association of Graduate Engineers TEK, Helsinki, Finland. Naumanen, Mika (2005). Technology Barometer Developed to measure citizens attitudes and the nation s orientation towards a knowledge-based society. 46 p. The Finnish Association of Graduate Engineers TEK, Helsinki, Finland. Lehtoranta, Olavi, Pesonen, Pekka, Ahlqvist, Toni, Mononen, Esa & Loikkanen, Torsti (2007). Technology Barometer Developed to measure citizens attitudes and the nation s orientation towards a knowledge-based society. 80 p. The Finnish Association of Graduate Engineers TEK, Helsinki, Finland. 62

63 4.2. COMPETENCE AND KNOWLEDGE GENERATION PROSPECTS REGARDING TECHNO-SCIENTIFIC COMPETENCE All four respondent groups were asked for their estimates concerning statements on the future labour needs of the Finnish economy and young people s interest in science and technology (Fig. 94). The first statement focused on assessing the attitudes held by Finns regarding scientists and researchers from abroad. TEK Membership, Politicians and Representatives of the Economic Life agree with the first statement to a certain extent. Young People s assessments rate below that of all other groups, but are fairly similar to the results from The assessments of TEK Members and Politicians have dropped a little since 2007, whereas those of Representatives of Economic Life have risen slightly. The second statement asked for the respondents view as to whether women should be encouraged to enter scientific studies and careers to a greater degree. All respondent groups are by and large in agreement with this statement. The assessments of TEK Membership, Young People and Representatives of Economic Life have risen slightly, while those of Politicians have dropped slightly. The third statement focused on the individual s freedom of choice in relation to the expectations of the state and industries. TEK Membership, Politicians and Representatives of the Economic Life disagree with this statement to a certain extent. Young People assessed the individual s freedom to be the most significant societal focal point, compared to societal and industrial objectives. It should be noted here that the views held by Young People are also only slightly above the category Difficult to say. The fourth statement was connected to the previous one. The idea expressed here was that the authorities should endeavour to resolve the conflict between the rights of individuals and the needs of society and industry. On average, this statement was difficult to assess, and all respondent groups ended up in close proximity to Difficult to say. The measurement results from 2009 indicated that the assessments of Politicians and Representatives of Economic Life have dropped a little since The assessments of Young People and TEK Membership have remained largely unaltered. The fifth statement was: Companies always find the competent persons they need. All respondent groups were, by and large, in agreement with this statement in The assessments of TEK Members have dropped slightly since The sixth statement concerned the threat to the development of society and the economy resulting from young people s assumed lack of interest in technology. The measurement results from 2009 indicated that the TEK Membership agrees with this statement to a certain extent, even if the assessments have dropped slightly since The assessments of all other respondent groups had also dropped slightly. The seventh assessment is set out Figure 94. This new assessment was added to the measurements in The assessment pertains to the role of the users needs in innovation activities. This question was exclusively addressed to the TEK Membership, Young People and Politicians. The assumption was that the Representatives of Economic Life have a relatively clear standing in this matter. All three respondent groups agreed with this statement to a certain extent. 63

64 Figure 94. Views held concerning Finland s labour needs and young people s interest in science and technology. (Question presented: Tell us whether you agree or disagree with the following statements when discussing young people s lack of interest in science and technology? 1 = Disagree entirely, 2 = Disagree by and large, 3 = Difficult to say, 4 = Agree by and large, 5 = Agree entirely) YOUNG PEOPLE S INTEREST IN CERTAIN PROFESSIONS Fig. 95 shows a comparison of the interest expressed by upper secondary school students towards various professions. In this question the upper secondary school students were asked to assess agreeable and interesting tasks and then to assess tasks which they consider to be disagreeable and uninteresting. The results were then compared with the results of the previous Technology Barometer. The measurements carried out in 2009 indicated that engineer and businessman are the most interesting professions. Interest towards both professions has increased quite significantly from The professions of researcher, doctor and artist were the second most interesting ones according to the 2009 survey. However, the artist s profession has clearly declined in attraction since The professions of politician, artist, journalist, athlete and judge received the majority of Not interesting responses. It is noteworthy that, when examining the share of Not interesting responses, the status of politician, athlete and judge have clearly decreased in appreciation. Correspondingly, the share of businessman, engineer and researcher has fallen in the same category since The declining popularity of a politician s tasks may be due to a recent widely publicised election funding scandal. 64

65 Figure 95. Interest shown regarding various professions. Young People as the respondent group. The percentage values represent the responses proportional shares of the total responses obtained in the survey. (Question presented: A number of professions and work tasks are listed below. Which of these fields would you prefer to work in? Mention two to four fields. Which fields do you find the least interesting?) Since the survey of 2005, commercial tasks have gained in popularity, and are once again the most popular vocation, for the third consecutive time in 2009 (Table 2). The profession of engineer has become second most popular, having been sixth in The profession of researcher has also gained in popularity, having risen from the eighth place to the third most popular profession among young people. Doctor retained its fourth place, as it did in Among those that came one place higher in 2009 are artist, currently sixth, and judge, currently eighth. Those who had stepped down in rating were lawyer, athlete and journalist. Politician retained its tenth place, as it did in previous rating 1 Businessman/woman 2 6 Engineer 3 8 Scientist (researcher) 4 Doctor 5 2 Solicitor (lawyer) 6 7 Artist 7 5 Ahtlete 8 9 Judge 9 3 Journalist, content producer 10 Politician / = appreciation regarding the profession has increased/decreased among students since Table 2. Appreciation shown by upper secondary school students regarding the various professions. The number in parentheses shows the ranking in the previous survey. This appreciation has been calculated by subtracting the number of Not interested from that of Agreeable and then arranging the results. 65

66 Figure 96 also shows a new question that was added to the 2009 survey asking Young People to mention their prioritised reasons for selecting particular fields as most interesting or second most interesting ones. The following three reasons scored highest: interesting work, agreeable work, and a good salary. In addition, job satisfaction, learning at work, job security and prospects for career advancement scored relatively high. The lowest scores were given to work as an independent entrepreneur, freedom to choose one s place of residence and good work safety. Figure 96. Young People s reasons for selecting particular fields of work. (Question presented: Why did you choose these particular fields as the most preferable ones? The question was answered by giving 2 points to the most important reason and 1 point to the second most important one. The figure shows the total number of points.) Figure 97 shows statements on working in the field of technology, and typical features of engineering work. The survey results from 2007 and 2009 are shown in the figure. In 2009, Young People agreed mostly with the following three statements: graduate engineers have a high income level, work in the field of technology offers good opportunities for learning, and working with technology is interesting. Especially the statement Working with technology is interesting scored higher in 2009, compared to the previous surveys. The following two statements scored the lowest: In the field of technology, employees and employers have better mutual relationships than elsewhere, and workplace comfort is high in the field of technology. 66

67 Figure 97. Young People s views on the field of technology and engineering work. (Question presented: The following list sets out statements on working in the field of technology, plus typical features of engineering work. What is your opinion on each of the following statements? 5 = Agree entirely, 4 = Agree by and large, 3 = Difficult to say, 2 = Disagree by and large, 1 = Disagree entirely) YOUNG PEOPLE S INTEREST IN SOCIETY, SCIENCE AND TECHNOLOGY Figure 98 depicts Young People s interest towards various societal issues. This figure sets out the responses from 2007 and In the survey results from 2009, the assessment of most issues had dropped, apart from science, research and technology and economy, companies, stock exchange business. The following issues scored the highest assessment ratings in 2009: arts, entertainment such as theatre, music, cinema; work; domestic life; science, research, technology. The following issues scored the lowest assessment ratings in 2009: economy, companies, stock exchange business; issues relating to European unity and the European Union; specific local habits or regional practices, dialects and culture; as well as Finland s domestic and foreign policies. Compared to the survey conducted in 2007, interest in work has declined, which may originate from the recession-induced introversion amongst young people. 67

68 Figure 98. Young People s interest towards various societal issues. (Question presented: The following is a list of issues which may interest people. How interested are you personally in these issues? Interest may consist of the following, the news, TV and radio programmes and articles on a particular theme, for example. 5 = Very interested, 4 = Fairly interested, 3 = Difficult to say, 2 = Fairly little interest, 1 = Very little interest, Figure 99 sets out Young People s assessments of monitoring the progress of science and technology with the aid of various sources of information. This figure demonstrates the responses from 2007 and Young People considered the following sources of information as the most important ones in 2009: the Internet, data networks; television, radio; one s own work and/or education; and newspapers. According to Young People s assessments, trade literature and nonfiction, scientific publications and scientific literature in general, as well as public events such as seminars and lectures are those which they follow the least. The growing popularity of the Internet and other data networks among young people seems to generate a correspondingly fading interest in conventional media technology. 68

69 Figure 99 sets out Young People s assessments on monitoring the progress of science and technology with the aid of various sources of information. (Question presented: The following is a list of some information sources for monitoring the progress of scientific and technological development. How important are they to you personally as givers of scientific and research-related knowledge? 5 = Very important, 4 = Fairly important, 3 = Difficult to say, 2 = Fairly unimportant, 1 = Very unimportant). Figure 100 sets out Young People s assessments concerning the news provision of various information sources. This figure sets out the responses from 2007 and In 2009, Young People agreed mostly with the following statements: I prefer watching TV programmes on science and technology to reading journal articles about them; I rarely read journal articles on science or technology; most scientific journalists do not have an appropriate background or the education for these themes. In 2009, Young People agreed least with the following statements: The development of science and technology is often presented in an excessively negative light; there are too many journal articles and TV and radio programmes on science and technology. Figure 100. Young People s assessments on news provision concerning science and technology (Tell us whether you agree or disagree with the following statements on news provision in the media on science and technology. 5 = Agree entirely, 4 = Agree by and large, 3 = Difficult to say, 2 = Disagree by and large, 1 = Disagree entirely). 69

70 4.3. KNOWLEDGE SOCIETY DEVELOPMENT OPINIONS REGARDING THE STANDARD OF RESEARCH AND TECHNICAL DEVELOPMENT IN FINLAND Figures 101 and 102 focus on the views held by the respondent groups regarding the standard of research and technical development in Finland. These figures set out the responses from 2007 and With regards to the development prospects of Finnish science and technology, the respondent groups views from 2007 and 2009 are relatively similar (Figure 101). The most positive view was expressed by Politicians, and the most critical by Representatives of Economic Life. It is to be observed that the differences were minimal. The respondent groups assessment of communication on science and scientific results was slightly lower compared to the previous one above. Young People assessed the statement most positively of all the respondent groups involved, both in 2009 and As for the benefits of scientific research to daily life and well-being, all respondent groups agreed, by and large, both in 2009 and Regarding the benefit of scientific research to society and the economy, the respondent groups had an even more clearly positive view. The most positive attitude was expressed by Representatives of Economic Life, and the most negative one by Young People. However, Politicians assessments had declined in 2009 since 2007 in this regard. The capacity of science to produce reliable results was viewed fairly positively in general. The most positive attitude was expressed by TEK Membership. The differences are marginal, however. In 2009, Politicians view had become slightly more negative since 2007 in this regard. The clear majority of differences between the groups were seen with regards to the last two items in their views on research orientation and the adequacy of research funding. All the groups gave a relatively low assessment of research orientation, with TEK Membership and Representatives of Economic Life seeing it most negatively. As for the adequacy of research funding, the most negative assessments were expressed by TEK Membership. In a similar vein, the assessments by Representatives of Economic Life were reasonably negative. In addition, Politicians view had dropped below that from 2007, in the survey conducted in 2009, in this regard. 70

71 Figure 101. Assessment of Finnish science and research, Part 1 (Question asked: How do you see the following matters related to science and to technical research in Finland nowadays? Do you feel that the situation is good or bad? 1 = Very bad, 2 = Fairly bad, 3 = Difficult to say, 4 = Fairly good, 5 = Very good). Fig. 102 shows the second part of the assessments concerning the capacity of science. With regards to assessing the moral and ethics of science and researchers, Representatives of Economic Life and TEK Membership had the most positive view in particular. In 2009, Young People were the most reserved in this regard, as they were in In addition, Politicians assessments have dropped slightly since As to the neutrality and independence of science, their assessments were similar to the previous one above. Regarding the development of Finnish research over the past few years, certain dispersion was observed. The most positive attitude was expressed by Young People and Politicians, and the most negative by TEK Membership and Representatives of Economic Life. The international standard of science was viewed most positively by Young People while TEK Membership had the most negative view. In 2009, Politicians view had become slightly more negative since 2007 in this regard while that of Representatives of Economic Life had risen slightly. All the respondent groups assessment of the standard of medical science was fairly good. Politicians assessments had dropped slightly since The general assessment of the standard of technology was also fairly good. Politicians assessments had also dropped since 2007 in this regard. However, all the respondent groups shared the view that the standard of Finnish science and research is approximately fairly good. The 71

72 assessment expressed by Representatives of Economic Life was the most negative in this regard. It is interesting to observe that Figures 101 and 102 show a declining trend in Politicians assessments of the majority of questions, which may indicate the adoption of a more critical and realistic view of the issues being assessed. Figure 102. Assessment of Finnish science and research, Part 2 (Question asked: How do you see the following matters related to science and to technical research in Finland nowadays? Do you feel that the situation is good or bad? 1 = Very bad, 2 = Fairly bad, 3 = Difficult to say, 4 = Fairly good, 5 = Very good) VIEWS CONCERNING TECHNO-SCIENTIFIC INSTITUTIONS AND ORGANISATIONS Figures 103 and 104 show the respondent groups assessments regarding the functioning of selected institutions. The question was formulated so that the respondent groups were asked to assess the functioning of the institutions from the viewpoints of public good, fairness, and ethics. Generally speaking, two groups may be distinguished among the institutions being assessed. The first group could be called Clearly trust inducing institutions and the other as More difficult to assess institutions. The foremost institutions that are clearly trust inducing are the defence forces, the police, universities, and the judiciary. In addition to these, the Technical Research Centre of Finland VTT, the National Technology Agency TEKES, the Academy of Finland, universities and the scientific commu- 72

73 nity in general are trust inducing institutions. The church and the parliament stand out as borderline cases. Institutions More difficult to assess include the Finnish business institution of Nokia and large-scale enterprises in general, the media, the European Union, political parties and trade unions. It should be noted that the assessment results are influenced by the formulation of the question, which emphasises the social cohesion factors of institutions, which is not necessarily associated with business-profit-seeking organisations and institutions. Figure 103. Trust induced by institutions, Part 1 (Question asked: How much trust do you have in the statement that the functioning of the societal institutions listed below is aimed at the public good, which is fair and equal with respect to their interest groups, and ethically sustainable? 1 = Very little, 2 = Fairly little, 3 = Difficult to say, 4 = Fairly much, 5 = Very much). Figures 103 and 104 show the assessments expressed by Young People, which are the respondent groups most critical regarding the following institutions: VTT, TEKES, the Academy of Finland, the scientific and research community, the defence forces (declined from 2007), the police, the judiciary, courts of law, church and parliament. When interpreting the results, including those from 2009, one should stop to reflect on how much the assessments of young people in their upper secondary school stage are affected by the fact that they have not yet gained practical experience of organisations such as TEKES or the Academy of Finland. It is most probable that these assessments primarily reflect the institutions officially advertised image. Compared to all other respond groups, Young People s assessments of the media and the trade unions were most positive. Other noteworthy differences observed in the responses are as follows: Compared to all the other respondent groups, Representatives of Economic Life gave the most positive assessment of the enterprises mentioned in the set of alternatives Nokia and other major enterprises. Politicians trust in political parties was clearly higher than that of the other respondent groups. It is noteworthy that Rep- 73

74 resentatives of Economic Life gave a relatively low assessment of their trust in political parties, both in 2007 and Their assessed level of trust in our defence forces may also be due to the current use of Finnish troops in Afghanistan, an area which is becoming increasingly dangerous. Figure 104. Trust induced by institutions, Part 2 (Question asked: How much trust do you have in the statement that the functioning of the societal institutions listed below is aimed at the public good, which is fair and equal with respect to their interest groups, and ethically sustainable? 1 = Very little, 2 = Fairly little, 3 = Difficult to say, 4 = Fairly much, 5 = Very much) VIEWS REGARDING THE ROLES OF KNOWLEDGE AND TECHNOLOGY IN FINNISH SOCIETY Figure 105 shows the respondent groups views regarding statements on scientific research and technology research. The question comprised five statements and the respondents then indicated whether they were entirely in agreement (5) or totally in disagreement (1) with the particular statement. The first statement concerns the role of knowledge as a resource for the success of individuals and society. Especially TEK Members, Politicians and Representatives of Economic Life are largely in agreement with this statement. Young People are slightly more sceptical in regards to this statement. In 2009, the views of all respondent groups were similar to the survey conducted in 2007 in this regard. The second statement concerns the effect of cooperation between universities and other tertiary education institutions on the development of research in Finland. Representatives of Economic Life and TEK Membership by and large agree with the statement. In addition, Politicians view is similar, even if their assessments had dropped slightly below that from 2007 in the survey conducted in 2009 in this regard. Young People agreed the least with this statement. The third statement con- 74

75 cerns the relationship between the development of basic research and technologies. The respondent group most in agreement with the statement are TEK Members, and almost the same applies to Politicians and Representatives of Economic Life. In 2009, Politicians view had risen slightly from 2007 in this regard. The respondent group of Young People disagree the most with the statement. The fourth statement applies to allocating research funding only to those fields which are the most profitable and most readily applied. As regards this statement all the respondent groups are fairly opposed to it. In 2009, TEK Membership and Politicians disagree the most with this statement. The fifth statement concerns views on the output of large investments made by society in scientific research. TEK Membership, Politicians and the Representatives of Economic life are largely in agreement with the statement. However, Politicians view has declined slightly since The assessment expressed by Young People regarding this statement is somewhat more uncertain. Figure 105. Significance of research from the viewpoint of economic and societal development. (Question presented: What is your opinion regarding the following statements concerning the use of results from scientific and technological research? Do you agree or disagree? 1 = Disagree entirely, 2 = Disagree by and large, 3 = Difficult to say, 4 = Agree by and large, 5 = Agree entirely). Figure 106 shows the assessments provided by two respondent groups, TEK Membership and Politicians, regarding the current status of Finland s success in technology. The first statement proposes that Finland s success in the global economy would be based on equality and the high standard of education offered in Finland. Both respondent groups are by and large in agreement with this statement. Politicians assessment has dropped slightly since The second statement deals with the benefits of science in relation to its possible harmful impacts. Both respondent groups are by and large in agreement with the statement. The third statement proposes that only by applying the most advanced technology can we promote the competitiveness of Finland s economy. Both respondent groups are by and large in agreement with the statement. In 2009, TEK Membership s view has 75

76 dropped slightly from 2007 in this regard. The fourth statement concerns the status of science and technology in industrial development. Both respondent groups are in agreement with the statement. The fifth statement proposes that high-tech products are merely gadgets with little utility value. TEK Membership and Politicians by and large disagree with this statement. The sixth statement concerns the Internet s influence on the development of new economic activities. TEK Membership and Politicians by and large agree with the statement. In 2009, the views of both respondent groups had dropped slightly from Figure 106. Status of technology in today s Finland. (Question presented: What is your view regarding the following statements? Do you agree or disagree? 1 = Disagree entirely, 2 = Disagree by and large, 3 = Difficult to say, 4 = Agree by and large, 5 = Agree entirely). Figure 107 sets out statements describing the effects of science and technology on society and the quality of life. The statements are expressed in the form of threats, with TEK Membership constituting the respondent group. All the statements include a similar trend: TEK Membership by and large disagreed with the statements, or deemed them as difficult to say, on average. In 2009, TEK Membership s view has dropped slightly from 2007 in this regard. 76

77 Figure 107. Impact of development in technology on the quality of life. (Question presented: Tell us whether you agree or disagree with the following statements when discussing the issue of science and technology influencing societal development? 1 = Disagree entirely, 2 = Disagree by and large, 3 = Difficult to say, 4 = Agree by and large, 5 = Agree entirely). Figures 108 and 109 show the assessments presented by TEK Members, Young People, and Politicians regarding the capacity science has to resolve the key issues of mankind. The figures set out the responses from 2009 and Figure 108 presents the first part of the assessments. The first item focuses on improving the state of the environment. In the survey conducted in 2009, all respondent groups assessed the capacity of science and technology as fairly good. The assessments of TEK Membership and Young People have risen slightly from 2007, while those of Politicians have dropped slightly. The situation regarding security of life was seen to be moderately difficult to assess. Young People s views of the statements were the most optimistic, while those of Politicians had dropped compared to All of the respondent groups shared the view that the impact of science to add to people s happiness and mental well-being is difficult to assess. All groups considered the capacity of science to improve people s material well-being and living standard to be fairly good. The assessments of TEK Membership and Politicians have dropped slightly since the previous survey in The capacity of science to extend people s life expectancy was seen to be fairly good by all of the respondent groups. All respondent groups also considered the possibilities of science to conquer illnesses to be fairly good. 77

78 Figure 108. Assessment of the capacity of science to resolve problems faced by mankind, Part 1 (Question asked: How would you rate the ability of science and technology to resolve problems and to significantly help mankind in dealing with various matters? 1 = Entirely unable, 2 = Not very good, 3 = Difficult to say, 4 = Fairly good, 5 = Very good). Figure 109 shows the second part of the assessments concerning the ability of science. The first item in Figure 109 applies to the promotion of peace and the prevention of wars and crises. All the respondent groups by and large agreed on the point that the possibilities of science are not very good here. In the survey conducted in 2009, the assessments of three respondent groups have come closer together. The same situation was repeated when the capacity of science to resolve issues of democracy, human rights and equality was assessed. The average level of Young People s assessments has dropped since The groups by and large agreed regarding the improvement of worklife conditions, working conditions, and work safety. According to the assessments of the respondent groups, science has a certain capacity to resolve these issues. Young People and Politicians had a fairly similar view regarding the item of food production and ridding the world of hunger. Politicians assessments have dropped since Of all the respondent groups, TEK Membership s view was the most positive. Assessments of the capacity of science to resolve energy production issues and energy problems had risen slightly in all respondent groups in The possibilities were assessed as fairly good. In the final assessment item, which concerned the capacity of science and technology to slow down the climate change rate, the respondent groups assessment had begun to coincide in Young People s view had become slightly more positive in 2009 in this regard. 78

79 Figure 109. Assessment of the capacity of science to resolve problems faced by mankind, Part 2 (Question asked: How would you rate the ability of science and technology to resolve problems and to significantly help mankind in dealing with various matters? 1 = Entirely unable, 2 = Not very good, 3 = Difficult to say, 4 = Fairly good, 5 = Very good) VIEWS REGARDING THE IMPACT INFORMATION TECHNOLOGY HAS ON WORKLIFE Figure 110 presents TEK Membership s assessments regarding the impact of information technology on their work methods. The survey results from 2007 and 2009 are shown in the figure. TEK Membership by and large agreed with the additional new statement saying that Work-related stress (information deluge) has increased. The group by and large agreed with the following statements as well: You are required to carry out a larger number of tasks per working day ; and It is easier to combine work and private life. The group agreed least with the following statements: You have more responsibilities in your work; Your work is easier; You need a higher professional competence for your work; and It is easier to manage the work-related flow of significant information. 79

80 Figure 110 presents TEK Membership s assessments regarding the information-technology-related change in their work methods. (Question presented: Considering the use of ICT, such as computers, the Internet or , how has it changed your work methods? Do you agree or disagree with the following statements? 5 = Agree entirely, 4 = Agree by and large, 3 = Difficult to say, 2 = Disagree by and large, 1 = Disagree entirely) VIEWS REGARDING PRODUCTIVITY DEVELOPMENT IN THE PUBLIC SECTOR Figure 111 sets out Politicians estimates on how to improve productivity in the public sector. This is a new additional question included in Technology Barometer The question was put in a relatively straightforward manner: There where two alternative statements to choose for the response, plus an open category of Additional information for the respondents free-form answers. Almost 80% of the responded Politicians were of the opinion that removing the obstacles of cooperation between the various administrative sectors is the most efficient way to improve productivity in the public sector. More that 55% of Politicians were of the opinion that increasing the share of information technology and online services in the public service provision is the most efficient way to improve productivity in the public sector. Among Politicians, slightly over 20% considered that another solution could be more effective. The following procedures were proposed in the open-end category (presented in a random order): sufficient funding for the public sector, measurements, service innovations and development work, better management, application of the subsidiarity principle to our national administration, in other words delegating responsibility and implementation to the close proximity of people, elimination of shadow leadership, rewarding the results of cooperation, as well as engaging the private sector in service provision. 80

81 Figure 111 sets out Politicians estimates on how to improve productivity in the public sector, percentage of Politicians. (Question presented: Improving productivity in the public sector is one of the central challenges for our society to rise to. Of the following, which would be the most effective in improving productivity?) 4.4. INNOVATIVE SOCIETY INVESTMENT ORIENTATION Representatives of Economic Life were asked which were the technologies that their enterprise invested in, in Figure 112 shows the results. Answers to the question regarding the allocation of research funds to the fields of science with the highest economic profitability and applicability can also be interpreted as criticism towards the funding of SHOK programmes. According to the previous strategy of TEKES, the intention was to allocate the bulk of TEKES funding to these programmes. Even if the plans have been modified, the basic idea may have survived. In any case, these answers could be interpreted as advice to direct research funds to a variety of separate targets. It is believed that R&D investments will be more clearly focused on two areas of technology alone: electronics and manufacturing technology. In addition, the technologies of agriculture and forestry are expected to undergo a similar slight rise. On the other hand, it is estimated that R&D investments in new materials and substances will remain at their approximate present levels. A slight decline is expected in R&D investment in genetics, environmental technologies, traffic and transport technologies, space research, telecommunication and energy technologies. Compared to these, the estimate is that there will increasingly be less R&D investment in construction technology and ICT, as well as the bio and pharmaceutical technologies. 81

82 Figure 112. Product development investment trends. (Question presented: The following is a list of fields that are currently developing new technologies. How do you see the development of your enterprise s R&D investments in each field of investment during the next 6 months in relation to the general development of your enterprise s R&D investments? 1 = The technology in question is not included in our business, 2 = We will invest considerably below the average, 3 = We will invest below the average, 4 = Difficult to say, 5 = We will invest above the average, 6 = We will invest considerably above the average.). Figure 113 shows views expressed by Representatives of Economic Life on the development of R&D investments over the next 6 and 12 months. The respondents estimate was that the R&D investment volume will decrease during both periods. Figure 113. Product development investment trends. (Question presented: How do you see the R&D investment of your enterprise developing over the next 6 months? And over the next 12 months? 1 = It will decrease considerably, 2 = It will decrease, 3 = Difficult to say, 4 = It will increase, 5 = It will increase considerably). 82

83 POTENTIAL EFFECTS OF TECHNOLOGY DEVELOPMENT ON THE QUALITY OF LIFE Figures 114 and 115 set out the assessments of two respondent groups TEK Membership and Politicians concerning the impacts of various fields of technology on the quality of life in the long-term (20 years), results from 2007 and 2009 (the figure has been divided into two parts due to space requirement reasons). In 2009, Young People did not answer this question in 2009 but their previous responses are included in the figures for comparison to the other respondent groups. Among the technologies improving the quality of life, the bio and pharmaceutical technologies were believed to be especially effective, in addition to new materials, substances and electronics. The estimates on the influence of other technologies were slightly lower but, apart from space research, they are believed to have an improving effect on the quality of life, however. TEK Membership and Politicians shared a similar view of these technologies improving effect on the quality of life. Young People s previous assessments from 2007, especially concerning the energy technologies and environmental technologies improving effect on the quality of life were clearly lower. Space research was believed to have the lowest effect on the quality of life, among the selectable alternatives. The first assessed field of technology was genetics. Respondents believe that genetics will improve the quality of life in the future in general. However, Politicians, in particular, have lost some of their strong belief in the healing effect of genetics, compared to TEK Members assessment of genetics improving effect on the quality of life had also dropped. Construction technology was the second field of technology assessed, which will improve the quality of life in the future, according to TEK Membership and Politicians. Politicians assessment of construction technology s positive influence was now slightly higher than in 2007, while TEK Membership considered it to be slightly lower, compared to the previous survey. Both changes are rather moderate, however. The third technology field assessed was that of agriculture and forestry technology. The respondent groups shared the view that this field of technology has the capacity to improve the quality of life in future but both Politicians and TEK Membership, in particular, gave a lower estimate than they did in Electronics was the fourth assessed field of technology. The respondent groups assessed that electronics would, on average, improve the quality of life in the future. Politicians assessment of the improving effect of electronics has remained approximately unaltered compared to 2007 while that of TEK Membership has dropped clearly. Manufacturing technology was the fifth assessed field of technology. TEK Members and Politicians considered that the field would improve the quality of life in the future. Politicians assessment of the manufacturing technology s improving effect has dropped slightly from 2007, while that of TEK Membership has dropped more clearly, even regarding the technology in question. The sixth field of technology is that of environmental technologies. TEK members and Politicians consider that environmental technologies would clearly improve the quality of life: Politicians assessment of the improving effect of electronics has remained approximately unaltered compared to 2007 while that of TEK Membership has dropped. The seventh technology field is that of traffic and transportation technologies. Both respondent groups assessed this field to have an improving effect on the quality of life within the next 20 years. Politicians assessment had risen slightly from the previous survey while that of TEK Membership had dropped slightly. 83

84 Figure 114. Technology development and the quality of life, Part 1 (Question asked: The following is a list of fields that are currently developing new technologies. Do you believe that development in each of the fields will improve the quality of life during the coming 20 years? Or do you think this development will have no significance? Or will things get worse as a result? 5 = It will improve things considerably, 4 = It will improve things, 3 = Difficult to say, 2 = It will make things worse, 1 = It will make things considerably worse). Space research is the eighth assessed field of technology. Similar to the results from 2007, both respondent groups assessments were here the most reserved, compared to all other fields of technology assessed, in other words the long-term impacts of space technology were taken as difficult to assess on average. Politicians assessment had risen slightly from the previous survey conducted in 2007 while that of TEK Membership had dropped slightly. New materials and substances was the ninth field of technology assessed. Both respondent groups believe that new materials and substances will distinctly improve the quality of life in the future. However, both respondent groups gave a lower assessment to this influence, compared to 2007, and TEK Membership somewhat more clearly than Politicians. The tenth field of technology assed was telecommunication. Politicians assessment of telecommunication s improving effect has risen while that of TEK Membership has dropped. The eleventh assessed field of technology is bio and pharmaceutical technology. All the respondent groups were of the opinion that the effects of biotechnology and pharmaceutical technology will clearly improve the quality of life. The assessments of TEK Membership and Politicians have only dropped by an equally slight degree since the previous survey in The twelfth field of technology assessed was that of computers and communications technology. Politicians faith in the improving effect of this technology field had improved slightly while that of TEK Membership had dropped clearly. The thirteenth and final field of technology assessed was that of the energy technologies. There was a consensus on the energy technologies improving effect on well-being, and Politicians trust in them had even improved. Contrary to this, TEK Membership s assessment in this regard had dropped clearly. Both of the respondent groups expressed views, which were slightly more positive in 2007, compared to In 2007, Young People also held views that were more positive than in 2005, but they were a little more cautious when compared to the views of the two other respondent groups. 84

85 Figure 115. Technology development and the quality of life, Part 2 (Question asked: The following is a list of fields that are currently developing new technologies. Do you believe that development in each of the fields will improve the quality of life during the coming 20 years? Or do you think this development will have no significance? Or will things get worse as a result? 5 = It will improve things considerably, 4 = It will improve things, 3 = Difficult to say, 2 = It will make things worse, 1 = It will make things considerably worse) ECONOMIC CRISIS, COMPANIES R&D ACTIVITIES AND USER- ORIENTED DEVELOPMENT WORK Technology Barometer 2010 was made more current by adding an extra set of questions addressed to Representatives of Economic Life. The questions focus on the impact of the global recession prevailing in 2009 on the companies investments and R&D activities, as well as the companies views on user-oriented R&D work. Figure 116 shows assessments made by Representatives of Economic Life concerning the impact of the current economic crisis on their own companies investments, research and product development. More than 60% of the companies involved stated that the economic crisis had decreased their level of investment. Almost 30% held the view that the economic crisis has not affected their investments. The view of less than 10% was that the economic crisis has increased their R&D investment level in particular. There was an additional open-ended question enquiring why the economic crisis has increased their company s R&D investment level. The justifications may be divided into three group-based categories. Firstly, some of the respondents saw the recession period as a good time for developing the company s internal functions. Secondly, there is a general will to cling to the rising tide of development so as to establish a stronger position for the period of the new rise. Thirdly, the respondents emphasised the strategic importance of R&D activities in the company s business: any other investment targets may be abandoned but not product development. 85

86 Figure 116. The impact of the current economic crisis on company investments, research and product development. The respondent group consisting of Representatives of Economic Life. (Question presented: How does the current economic crisis affect your company s investments, research and product development? 1 = It has a decreasing effect, 2 = It has a relatively increasing effect, 3 = It has no effect, 4 = Difficult to say). An additional open-ended question was also used enquiring why the economic crisis has not affected the company s R&D investments. Justifications provided by Representatives of Economic Life may be divided into five groups. The first justification was that R&D investments are of strategic importance in the company s core business. The second justification emphasises the development of new operating methods and tools to be used for the purpose of achieving a better position in the new rise following the recession period. The third justification was connected with the implementation of the company s long-term strategy, which remained unaffected by the short-term economic crisis. The fourth justification was connected with the completion of investments that had been launched prior to the economic crisis. The fifth group of justifications emphasised the fact that the company in question operates in a sector that has remained largely impervious to the prevailing recession. Figure 117 shows companies assessments concerning the product users or user representatives participation in the company s product development process. Almost 90% of the companies involved stated that users participate in the product development process. Correspondingly, the response of more that 10% was that users were not integrated into the product development process. 86

87 Figure 117. Users participation in the company s product development process. (Question presented: Have the users of your products, or their representatives, participated in your product development process? 1 = Yes, 2 = No). An additional question was presented enquiring about the available methods to involve users in the product development process. Figure 118 shows a grouped presentation of the companies answers. More than 26% of the respondents held the view that arranging trial periods and testing are the central methods of user participation. According to 24% of the respondents, the most significant methods of user participation would be found in joint product development projects and pilot projects. Some 20% of the respondents would seek the user-oriented viewpoint from interviews, opinion surveys and market research. Of the respondents 16% saw open dialogue and brainstorming with customers as the most essential method for user participation. The view of 14% was that the central method to involve users in product development projects is to engage in close cooperation with user communities or focus groups. 87

88 Figure 118. Companies main methods to involve users in participation, percentage of responses received. (Question presented: What are the main methods of user participation? An interpretation of the open-ended answers received) SUSTAINABLE DEVELOPMENT ENVIRONMENTAL THREATS Figure 119 shows attitudes towards environmental threats, which were sought only from Politicians during this survey. Politicians assessments varied to a certain degree regarding each theme being assessed. Compared to 2007, Politicians were less concerned regarding the development of two environmental issues (the use of oil and coal as fuel and motor-vehicle-induced environmental pollution) but were now more concerned about other environmental threats. Compared to the previous barometer survey conducted in 2007, a new additional question was now included the impact of greenhouse emissions on climate warming, rising seawater surface levels and the increasing number of storms. In the survey conducted in 2009, Politicians regarded this environmental threat as the most serious of all, and as one that requires immediate action in their opinion. The second environmental threat to be assessed was the combination of clear cuttings and site preparation in forestry. In the previous barometer survey Politicians view was that this particular environmental threat is important, but so well controlled that it cannot have any adverse effects. In the survey conducted in 2009, however, Politicians worries on clear cuttings and site preparation had increased. In their view, this is an issue that requires increasing attention, compared to the present situation. The third assessed environmental threat was the use of oil and coal as fuels. In 2007, Politicians 88

89 regarded this environmental threat as a serious one on the scale applied, of the type that would require immediate action. In 2009, however, Politicians were somewhat less concerned, which may have been influenced by the increasingly public role of action against climate change, in national and international policies alike. The fourth environmental threat is constituted by pollutants generated by motor vehicles. In 2007, this environmental threat was also regarded by Politicians as a more moderate one, compared to the use of oil and coal as fuels, but nevertheless serious enough to require immediate action. In 2009, however, Politicians were less concerned about this environmental threat, among others, than they were in Similar to the previous question, the observed change may be due to anti-climate change action plans and the related discussions on energy and environmental political decisions. The fifth assessed environmental threat is that of our seas and lakes becoming polluted. Politicians assessed that this matter is a serious one and requires a higher degree of attention and immediate action. In addition, their assessment was that the situation of sea and lake pollution has deteriorated compared to This change has been partly influenced by the recent decisions made concerning the state and use of the Baltic Sea. The sixth assessed environmental factor involves pesticides and fertilisers used in agriculture. Politicians assessed this matter to be a problem that requires increasing attention. According to Politicians, the environmental threat caused by the use of pesticides and fertilisers in agriculture has become more serious compared to the survey conducted in The following environmental threat is that caused by the loss of threatened species of animals and plants. In 2007, Politicians considered the loss of animal species and plant species to be a problem that required increasing attention, compared to the current situation. In 2009, their worry about the loss of animal and plant species had increased slightly. This change may partly be due to concrete effects of climate change on animal and plant species, in rain forests on the global scale, and locally in Finland. 89

90 Figure 119. Attitudes towards environmental threats. (Question presented: Some environmental questions are listed below. Indicate alongside each one how serious you consider this problem to be in Finland. Select the number of the alternative closest to your own view. 1 = This matter is not important nowadays, 2 = This matter is important but we have it under control and no harm will result from it, 3 = This matter is a problem and more attention should be paid to it than is being done at present, 4 = The matter is serious and requires immediate actions, 5 = The matter is so serious it amounts to a catastrophe.) The eighth presented environmental problem connects to the disposal of nuclear waste generated by nuclear power plants. Politicians assessed nuclear waste to be a problem that requires increasing attention. Attitudes towards this environmental threat have also become slightly more negative, compared to This may have been influenced by the ongoing discussion on construction permits for new nuclear power plants in Finland and the political parties mutually conflicting views on the required number of new nuclear power plants. The final environmental threat being assessed was the effect of airborne pollutants on forest deaths. As Politicians see it, this environmental threat deserves increasing attention, and their worries concerning this issue have continually grown compared to the survey results from STATE OF THE ENVIRONMENT AND ACTION TAKEN BY THE AUTHORITIES Figure 120 shows the respondent groups assessments on the efficiency of actions taken by the Finnish authorities at the local, regional, national, EU and global levels. This time the question was responded to by TEK Membership and Politicians. According to the survey results from 2007, TEK Membership s and Politicians assessment was that 90

91 the Finnish authorities act most efficiently at the regional, national and local levels, somewhat less efficiently at the EU level, and the least efficiently at the global level. The survey results from 2009 introduce a new, interesting trend of change to this development: TEK Membership and Politicians share the view that the Finnish authorities continually act most efficiently at the local, regional and national levels, but the authorities action in environmental protection has become less effective at the said three levels, compared to the survey results from In addition, especially TEK Membership, consider that the Finnish authorities action has become less effective at the global and EU levels also. As Politicians see it, the most significant individual change in the authorities environmental protection actions towards an increasing lack of efficiency is found at the regional level, and the second most significant one at the national level. The survey indicated in 2007 that the authorities action was almost fairly efficient, Politicians view was that it had become rather inefficient in Similarly, Politicians deemed in 2009 that environmental management and environmental protection had become less effective, especially at the national and local levels. Their assessment of the loss of efficiency at the EU and global levels was more marginal, however. The view of TEK Membership is that the authorities environmental action has become less effective at all the levels assessed, compared to the survey results from As they see it, the greatest drop in efficiency in the authorities action has occurred at the local level, but it is obvious even at the regional, national, EU and global levels. To summarise, it may be stated that, according to the TEK Membership s and Politicians assessments, the Finnish authorities action in environmental protection has become less effective at all the levels involved. As in 2007, however, one should not draw drastic conclusions based on the responses provided because all the assessments indicated a moderately low level of efficiency. Consequently, it may be concluded that the public authorities action at the various geographic levels is not very visible which is why it is not perceived as efficient. The increasingly tangible effects of climate change, requirements for political action, and the results of the so-called Stern review report, which were published shortly before Technology Barometer 2010, may have additionally influenced the assessments pointing out the declining efficiency of the authorities action. Figure 120. Assessments of the Finnish authorities actions in environmental protection at various levels. (Question presented: Do the public authorities act efficiently at the following levels for environmental protection? 1 = Inefficiently, 2 = Fairly inefficiently, 3 = Difficult to say, 4 = Fairly efficiently, 5 = Efficiently). 91