Technology and Innova/on in Finland: Current Issues and Future Challenges

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1 Technology and Innova/on in Finland: Current Issues and Future Challenges Tomi Nokelainen

2 Outline What is technology and innova/on? A historical glimpse- like synthesis on the past century of Finnish technology and innova/ons The role of technology and innova/ons currently in Finland Topics under discussion currently in Finland

3 On technology At least three views Ar/fact/tool view Physical ar/facts, tools which solve a prac/cal problem and/or provide some value added Technique view Knowledge to solve problems and/or enhance produc/vity, quality of life etc. (resul/ng in ar/facts or otherwise) Human agency view Human modifica/on of the natural world (to achieve some desired end)

4 On innova/on Something new, prac/cally anything (once successfully implemented) Technological innova/ons; e.g. Mobile telephony Internet data transmission protocols Social innova/ons; e.g. Condensed wri/ng style and smileys in text messages Blogs (web logs) Scien/fic innova/ons? Usual typology Radical/discon/nuous Disrup/ve; e.g. digital cameras Incremental/con/nuous Compliant; e.g. pa[ern recogni/on (e.g. faces) in digital cameras

5 Innova/ons in a business context Product innova/on Changing product/service features (e.g. instant/sms loans) Process innova/on Changing produc/on (e.g. online photo development) Service innova/on Changing customer rela/onship (e.g. car inspec/on) Marke/ng innova/ons Changing percep/ons (e.g. Veikkaus and gambling) Value chain innova/on Changing value produc/on configura/on (e.g. online music streaming/retailing) Business model innova/ons Changing economic logic (e.g. Rovio and Angry Birds)

6 Other noteworthy aspects on technology and innova/ons History ma[ers Advancement (and resistance) builds on what has come before; physically and cogni/vely E.g. various forms of mobile payment in Finland Context ma[ers Every context is somewhat different from other contexts (preferences, culture, resources ) E.g. sauna stoves in Finland and elsewhere System ma[ers Every technology and innova/on is embedded in a socio- technical system with constraints and incen/ves E.g. electric car in Finland and elsewhere

7 Technology and innova/on in Finland, the past century crudely in a nutshell Before 1900s Prac/cal innova/ons by craasmen, farmers and merchants Early buildup of technical (higher) educa/on; prac/ce- oriented Several key people recruited from abroad, mainly from German- speaking sphere Impor/ng foreign technology to Finland (Germany, UK, USA ) E.g. co[on industry in Tampere Turn of the 1900s and early 1900s Formaliza/on of technical (higher) educa/on, increasingly with domes/c resources; s/ll rather prac/ce- oriented à Domes/c technological exper/se to develop domes/c industries E.g. forest- based industries, engineering works ( heavy industries) Na/onal infrastructure

8 Largest companies in Finland Finlayson & Co. (tex/les) 2. Pitkäranta- yh/ö (copper mine and foundry) 3. Tammerfors Linne- och Jernmanufaktur (co[on processing and iron foundry) 4. Forssa Ab (tex/les) 5. Fiskarsin ruukki & konepaja (foundry and engineering works) 6. Paul Wahl & Co. (foundries, sawmills) 7. Porin tuli/kkutehdas (matches) 8. N. L. Arppe & Hallonblad (foundries, sawmills) 9. Rosenius & Seseman (sawmills) 10. Taalintehdas (foundry)

9 Technology and innova/on in Finland, the past century crudely in a nutshell Aaer the second World War Substan/al war repara/ons for the Soviet Union à Noteworthy mandatory boost for engineering technology and engineering works à Strong basis for subsequent engineering technology Gradual scien/fica/on of technical (higher) educa/on Towards the end of 1900s and currently Dwindling of major tradi/onal industries Technology: abstrac/za/on of development Disconnect from immediate need; technology push Technology as a commercial offering in itself Innova/on: towards crea/ng and detec/ng novel customer needs E.g. new game strategies Global technology transfer as the underlying basis

10 Largest companies in Finland 2012 (market capitaliza/on) 1. Nordea Bank Ab (banking) 2. TeliaSonera Ab (telecommunica/on services) 3. Kone Oyj (elevators and escalators) 4. Sampo Oyj (insurance, financing) 5. Fortum Oyj (energy) 6. Nokia Oyj (telecommunica/on; 32 % of Nordea) 7. Wärtsilä Oyj Abp (heavy engines and propulsion) 8. UPM- Kymmene Oyj (paper products) 9. Metso Oyj (technology supplier for manufacturing industries) 10. Nokian Tyres Oyj (car tyres)

11 Role of technology and innova/on in Finland, some anecdotal observa/ons Technology and innova/on seen as a major contributor to na/onal compe//veness Crea/ng and Adop/ng Some highlights Global Compe//veness Report (World Economic Forum) 1 ( 05-06), 6 ( 07-08), 6 ( 08-09), 6 ( 09-10), 7 ( 10-11) PISA: Science and Ability to Use Scien/fic Knowledge (OECD) 1 ( 03), 1 ( 06), 2 ( 09) Newsweek: World s Best Countries 1 ( 10) h[p://en.wikipedia.org/wiki/interna/onal_rankings_of_finland But: rankings oaen show a trend downwards

12 Some examples of rela/vely recent Finnish innova/ons Linux opera/ng system h[p:// Forest harvesters + simulators E.g. h[p:// QWERTY enabled mobile phones h[p://en.wikipedia.org/wiki/nokia_communicator Text message, SMS (?) h[p://en.wikipedia.org/wiki/sms#early_implementa/ons Consumer/athlete heart rate monitors h[p:// Cholesterol- reducing margarine (i.e. func/onal food) h[p:// Angry Birds game family and brand h[p:// work/games/view/1/angry- birds

13 Some Current Issues and Future challenges

14 Future dominant industries Forest- based and electronics industries moving outside Finland Moreover, somewhat mature industries already What next? E.g., Bio/nanotechnology? Environmental technology (e.g. wind energy, renewable energy sources, geothermal energy )? Especially: zero energy / passive house construc/on technology Electric cars and/or the infrastructure they need? Will there ever be a next Nokia? Current buzz: Mobile gaming (e.g. Rovio/Angry Birds)

15 Higher educa/on and research Balance between higher and lower educa/on Emphasis on higher and higher educa/on, but increasing shortage of prac/cally skilled workforce Funding and purposes/goals of universi/es Seeking truth vs. regional effec/veness vs. interna/onal recogni/on vs. commercializa/on of innova/ons? Fusion of capital area universi/es: Aalto university Helsinki school of economics, Helsinki university of technology, University of art and design Helsinki à Top university in Finland Ra/onale: mul/- disciplinary university for development and commercializa/on of new innova/ons

16 Maintaining na/onal innova/veness, the innova/on system Interna/onal rankings of Finland have declined somewhat during the past years Is this permanent? And if yes, Why? What should be done? (And by whom?) Issues under discussion e.g. Total na/onal compe//veness vs. equal regional possibili/es? Compliance to interna/onal rakings measures vs. pursuing a na/onal set of criteria (perhaps soaer )? General lack of entrepreneurial aytude; why? Technology transfer ; how to foster?

17 Future of Work: New work From employment to entrepreneurship Branding and marke/ng oneself Constantly upda/ng technological and other professional exper/se; life- long learning Remote working (fad?) Changing values towards work From stability towards enjoyment, expression and development Primary social reference groups outside workplace But: among teenagers growing anxiety towards professional career Simultaneously aging popula/on Work lives societally ever more important Tomi Nokelainen

18 Traffic Discussion driven by environmental considera/ons (especially emission reduc/on) Recent developments Car purchase tax based on exhaust emissions E10 par/al biofuel recently introduced, RE85 taking off Car usage fee/tax based on emissions But some relics (e.g. for electric cars) Ongoing considera/ons Conges/on fees in downtown areas (especially Helsinki) Car usage fee/tax and insurance based on distance driven (e.g. GPS tracking) Urban planning explicitly favoring public transporta/on

Melanie Agnew, University of Wisconsin, U.S.A. Rhonda Friesen, University of Manitoba, Canada Douglas Proctor, University of Melbourne, Australia

Melanie Agnew, University of Wisconsin, U.S.A. Rhonda Friesen, University of Manitoba, Canada Douglas Proctor, University of Melbourne, Australia Introductions Who we are and why we are here. Who you are