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Innovation development trackCENTRAL FINLAND

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Authors of the publicationKirsi Knuuttila, JAMK University of Applied SciencesPetri Jetsu and Janne Keränen, VTT Technical Research Centre of FinlandEsa Alakoski and Riikka Reitzer, University of JyväskyläTytti Laitinen, Outi Pakarinen and Mikko Ahonen, Jyväskylä Innovation Ltd.

Graphic Design: Avalon OyLayout: Pirjo LeirimaaPrinted by: Kopijyvä Oy Photo on cover page: Finnish Forest Research Institute

The sole responsibility for the content of this publication lies with the authors. It does not necessarily reflect the opinion of the European Communities. The European Commission is not responsible for any use that may be made of the information contained herein.

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PREFACEThis publication has been produced for those interested in research related innovation management systems. It describes the recent development in Central Finland. The publication is produced via the BIOCLUS project and aims to develop biomass research cluster cross-cooperation.

In general, the success of the regional innovation system is influenced by several factors that can be divided into the following key areas:

 Identification (and definition) of innovation  Awareness of innovation management challenges  Management of the innovation system  Resourcing the innovation system  Policy environment of innovation systems

Innovation itself may have a different focus, such as technology, service or process. It can be based on the results of applied research or the transfer and modification of technology and knowledge. Adequate professional background is a precondition for the success of such innovation.

The management of the innovation system is typically more effective in cases where there is close cooperation between the R&D (research and development) organisations and business organisations. The innovation system can be resourced by private and/or public bodies.

The regional innovation system is influenced by policy environment. This covers both financial and legislative environments together with concerns such as, pressure from interest group and general public opinion.

In general, individual states and regions have different political, economic, technical and organizational preconditions for the implementation of innovative systems.

September 2012The Authors

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RESEARCH RELATED INNOVATION MANAGEMENT IN FINLAND

According to Finnish Research and Innovation Policy Guidelines for 2011–2015

“Finland has decided to invest in knowledge and expertise as its strategy for success. Education, research and innovation (ERI) will support economic growth and the positive development of the economy, the sustainable reform of social structures and the well-being of citizens.”

The focus themes of innovation policy are structural development, human capital and development of funding. The universities are expected to have a strong role in the innovation development. For example teaching, research and innovation activities are going to be promoted. Besides, regional impact of polytechnics must be strengthened. At the same time the research institutes and higher education institutes should establish joint infrastructures and support services.

In Finland public funding is intended to complete private funding. It concentrates on companies during start-up and on high risk ventures and large development projects. The Finnish Funding Agency for Technology and Innovation, Tekes, is the main public funding agency for applied and industrial research and development activities in Finland. According to Research and Innovation Policy Guidelines for 2011–2015 the activities of the Strategic Centres for Science, Technology and Innovation (SHOK) are continued. SHOKs with research agendas related to utilization of biomasses are CLEEN Ltd and Finnish Bioeconomy Cluster FIBIC Oy.

The Centre of Expertise Programme (OSKE) lays the ground for diverse innovation activities in which high-level research is combined with technological, design and business competence. The programme is a tool for regional innovation, which contains ready-made operating models and networks for the national and international markets. The programme offers networks and services for companies, universities, universities of applied sciences and research institutions. The Centre of Expertise Programme is a fixed-term special programme coordinated by the Ministry of Employment and the Economy, in compliance with the Act on Regional Development. More information is available at www.oske.net.

European Enterprise Network (EEN) operates in Finland. The services of national wide Centre for Economic Development, Transport and the Environment are available in Central Finland. However, there is no office of the technology transfer partner of EEN.

The operational priorities set for the period 2011-2015 are following:

 Strong scientific research and useful application  Growth entrepreneurship, support for

businesses and innovations  Services  Demand-orientation & user-orientation  Utilisation and application competencies

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University Inventions Act and Act on the Right in Employee Inventions

The new University Inventions Act took effect in the beginning of 2007. The act provided universities the intellectual property rights (IPRs) to the inventions generated in the universities within externally funded research. Earlier the IPRs of all inventions belonged to the inventors in the universities. According to the act, an invention disclosure (idea notice) must be made for every new invention or commercially exploitable research result. However, in practice this is often not the case. Also, the fact that the researcher own the

IPRs to inventions made in open research requires careful study of the background of each invention and possible projects related to it.

VTT Technical Research Centre of Finland complies with the Act on the Right in Employee Inventions. This defines more straightforward the owner of the rights in inventions than the University Inventions Act. Basically, it says that the IPRs of invention of employee belongs to employer if the invention is a result of employee’s works for employer or the employee has used his experiences gained in the enterprise or institution of his employer.

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REGIONAL RESEARCH RELATED INNOVATION MANAGEMENT In Central Finland the regional research related innovation management is implemented especially by following organisations:

 Jyväskylä Innovation Ltd: Jyväskylä Region Centre of Expertise Programme, Protomo (business incubator)

 University of Jyväskylä  JAMK University of Applied Sciences  VTT Technical Research Centre of Finland

Figure 1 introduces biomass related innovation management actors and their roles in Central Finland.

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Figure 1: The main actors and their responsibilities in biomass-related innovation management in the Jyväskylä region.

Business development and networking

National Centre of Expertise Programme: Energy technology

and Forest Industry Future competence clusters

Ministry of Employment and the Economy

Jyväskylä Region Centre of Expertise in Energy Technology

and Forest Industry Future

Jyväskylä Innovation Ltd

Open innovation community PROTOMO,

business incubator

Dynamic Bioenergy Cluster

Jyväskylä Regional Development Company

Jykes Ltd

University of Jyväskylä Renewable

energy program

JAMK University of Applied SciencesBioenergy

Development Centre

VTTBiomass Fuel Production

and Use

R&D

Business enterprises in the field of Bioenergy

Public funding

Policy development, application & guidance

Initiatives, studies, promotion, information dissemination, lobbying

EU programmes: FP7, IEE (CIP), Interreg, Rural Policy, Structural funds: Regional

Development, Social

Tekes programmes: Biorefine, Groove, TULI from

bench to business

Other possible sources: Finnvera, ELY-centre,

Foundation for Finnish Inventors, SITRA -programs

ELY –centre, Regional office of Tekes, TE –centre,

Foundation for Finnish Inventors

Regional Council of Central Finland:

Regional development plan, Regional development program

Municipal Innovation Services

NGOs : Finnish Energy Industries (ET), Finnish Bioenergy Association

(Bioenergia ry), Finnish Biogas Association

Regional Forestry Centre, Development Centre TAPIO, Promotion and development

of sustainable forestry

Agricultural Centre, development and promotion of rural areas and agricultural

industries

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HOW TO PROMOTE INNOVATION PROCESS IN THE UNIVERSITIES? In the innovation management process, the research results are verified and they are developed into the form that they can be commercialized. The process is resourced by the university, Tekes or European Structural Funds. For example, the regional Council of Central Finland has allocated funding from the Centre of Expertise Programme to activate the ideas of university staff and to promote entrepreneurship of students.

In general the innovation management process is well defined and works well as a whole. Each actor (scientist/inventor, innovation management staff, out sourced services, business entity) has an important role in the process that is described in the figure 2.

Figure 2. Actors and their roles in the transfer process in universities (Riikka Reitzer)

How to motivate research staff to promote innovations?

Previously the number of invention disclosures was low at both the University of Jyväskylä and the JAMK University of Applied Sciences. Staff believed incorrectly that due to the new University Inventions Act (UIA), the university would get all income and the inventor would receive nothing. However in the reality, the inventor receives half of the profit that the university makes on the invention, whilst the university carries all the risk and costs.

verify the functionality and market orientation of the research result

Innovation service(university)

Researcher

Consult/expert

Company, whichcommercializes

ACTIVATION

Application, software,invention, expertise

or research result to becommercialized

Looks for things to becommercialized and activates researchers

Brings results to becommercialized

EVALUATION

Evaluates, Screens outProtects IPR

Co-ordinates thetechtransfer process

Evaluates, screens out and accounts for the outsourcing services

Is committed to supportthe commercialization

Novelty searches andpreliminary market need

Problem point

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Therefore there have been campaigns aiming to

 Increase innovation activity cooperation in-between the regional universities

 Increase the staff awareness about technology transfer and entrepreneurship

 Inform the staff about the innovation services and their resources

 Transfer research results to the use of business life

Campaigns to promote innovation process

The first project organised over 60 interactive events to promote innovation, for the universities staff. It

was assessed to be successful and therefore there have been follow-up projects to continue the work. The aim of these events has been to enable staff to have a more favourable attitude towards innovation development and commercialisation, thereby creating a culture of innovation.

The projects have applied new operational models in the innovation environment. They have strengthened the network of in the working places, and have integrated innovating as part of the daily job of the scientific staff. The campaigns have introduced the innovation services to the staff and have explained the roles and the responsibilities of the innovation services.

verify the functionality and market orientation of the research result

REFINEMENT

Produces market information, looks for

buyer companies, develops and pilots

Leads the commercialization

process

Is responsible for thescientific expertise

Business models, planning and fabrication of prototypes

Possibly involved inthe pilot phase

PRODUCTIZATION

Strategy andagreement

negotiations

Transfer of the scientific expertise

Knowledge transfer andagreement negotiations

Productization tomarket

PROFITS

Licence incomeSpin offs

Extra incomenew research projects

Earning andnew assignments

Competitiveness improves and turnover upswings

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1) Idea Kiosk is a mobile cart loaded with coffee, tea, donuts, mandarin and of course hearty load of information on innovation activities of the university. The idea kiosk cruses along the corridors and work space of the staff – unannounced, so the staff doesn’t need to prepare in any way. The conversation takes place in staffs own surroundings and in a relaxed atmosphere. The idea kiosk was held once or twice a month. Each workroom and space was visited two to three times during the project. To go around the entire university and every corner took bit less than a year with this frequency.

2) Idea Café is a four hour workshop for about 15 – 25 people and the world café technique is applied (see http://www.theworldcafe.com). In a year, nine idea café were organized. The goal was to discuss about the possibilities of commercialization of research results and ponder what are the obstacles hindering scientist to get involved and how to remove them. The themes vary each time and as an introduction to the workshop a university or theme related entrepreneur opened up the discussion.

3) Meeting Place is a big happening for around 100 people. It is an event planned for wide audience and more general themes such as guidelines and rules of innovation activities and the University Inventions Act are talked through. Also, possible contradictions between making science and commercializing research results are discussed.

4) Academic Business Club (ABC) is a peer group for the scientists and R&D -experts interested and involved in commercialization of research results. The ABC has a very import role as an example setter and as an opinion leader at the university (http://en.wikipedia.org/wiki/Opinion_leadership). The ABC meets about five times a year in the evening in casual settings. The get-together involves a guest speaker and the discussion is around a selected theme. E.g. at the ABC on 15th of April 2010 the guest speaker was U.S. patent attorney Carlos Villamar (http://www.rmsclaw.com/attorneys/carlos.html) and the discussion was around the importance of IPR protection and the differences in the USA and Finland.

5) Case-cocktail is a social event where actual cases that have been commercialized or are under work are presented. The scientific staff has a change to get to know the commercialization/technology transfer process of the university. The event takes place in a restaurant and each case has an own table. At table for each case there are two people from the following groups presenting the case: a. The scientist or R&D -expert that has disclosed his/hers research results to the innovation services/R&D –development services for commercialization b. A consult or expert of a company that has been involved in the case e.g. in the planning or construction of a prototype or conducting a market research or c. A member start-up companies and the university’s pre-incubator services are presented.

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Knows that there are support services Knows that gets 50% of the profit0

20

40

60

80

100

45

36

59

29

74

63

79

45

11/2009

06/2010

Knows that there are support services

Knows that gets 50% of the profit

Results of the innovation process campaign

This campaign has provided some results that are introduced in figure 3. The scientific staff is beginning to understand the role of the innovation services. They know better what could be commercialized. The staff also finds that they get enough information about the Innovation Service and have learned more about the Innovation Services during the past year.

Figure 3: Selected results of the campaign survey in University of Jyväskylä (Riikka Reitzer)

JAMK Generaattori

In 2007 JAMK University of Applied Sciences began a process that led to the modification of innovation management process and the nomination of the first Innovation Manager. In late 2008, JAMK secure TULI finance and started to receive allocated financial support for innovation management. TULI (Tutkimuksesta liiketoimintaan 2008-2012, http://www.tekes.fi/ohjelmat/tuli) is a programme that is financed and coordinated by Tekes – the Finnish Funding Agency for Technology and Innovation. It supports researchers and researched based centres to evaluate the commercialization potential of novel business ideas or inventions. In 2010 the systematic innovation management provided the first evidence for JAMK, when a number of innovations were licensed. The process is described in figure 4.

In 2011 JAMK continued the development work in the field of the innovation management. The innovation management system Generaattori was founded. It makes the management process more professional and also offers the legal and practical expertise in the use of the idea developer. For example JAMK offers entrepreneurship trainings and launch pad coaching. Additionally, JAMK has some living lab environments and internationally recognized research and development activities. It educates professionals for enterprises and manages pre-incubator for business development. Furthermore, there are financial resources for idea development and up-dated knowledge about the operational business environment. So far, the focused information dissemination with professional support tools has increased the level of innovations in JAMK.

Attitudetowardsexploiting R&D-results changed

Knows what could becommercialized

% o

f the

staff

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Figure 4: JAMK innovation management process roadmap.

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INNOVATION MANAGEMENT AT VTTVTT Technical Research Centre of Finland is the biggest multi-technological applied research organization in Northern Europe. It provides high-quality technology solutions and innovation services. VTT promotes the competiveness of their customers and thereby supports the regional development, employment, and wellbeing.

From its wide knowledge base, VTT combines different technologies, create new innovations and has a substantial range of world class technologies and

applied research services. Through its international scientific and technology network, VTT can produce information, upgrade technology knowledge, create business intelligence and add value to its stakeholders.

VTT’s services support the customer in all stages of the innovation process from the identification of technology, to the market and trend analysis. The basics of the innovation process of VTT are presented in figures 5 and 6.

Figure 5: VTT’s innovation process connects research and innovation (VTT).

Business impacts

Innovative research Creating new ideas, technologies, innovation

potential, incubating applications and growing

competencies

Added value

for customers

and other

stakeholders

- Strategic networks

and partnerships

- Technology

infrastructures

- Licensing

- Spin-offs

- Partnerships

- Contract R&D

- Expert services

Strategic research portfolio

Foresights & visions

Frontier research

Large programmes

Focus area projects

Customer and

other

stakeholders’

needs

Accelerated

Benefits

process

Research services

Business concepts

Technology concepts

Solutions

Forums and networks

Research services

Products and

services

Outsourcing of R&D

Consulting services

Testing

Certification

Industrial rights

New companies

Concept

development

Product and

service

development

CommercialisationTechnology

foresight

Industry’s

innovation

process

VTT’s

innovation

process

Creation of

business

opportunities

Development of

products and

services

Commercial

services

Market,

technology and

business

foresight

Offered

by VTT

Future

opportunities

foresight

Co-operation

goals

Technology

foresight

Concept

development

Development

of products

and services

Testing and

consulting

services

Figure 6: Integration of VTT’s and customer’s innovation processes (VTT).

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JYVÄSKYLÄ REGION CENTRE OF EXPERTISE PROGRAMME

The Centre of Expertise Programme (OSKE) is a fixed term special government programme aimed at focusing regional resources and activities on development areas of key national importance. The programme promotes the utilisation of the highest international standard of knowledge and expertise that exists in the different regions. The National Programme involves 13 national Clusters of Expertise and 21 regional Centres of Expertise.

Jyväskylä Region Centre of Expertise is participating in five national Cluster Programmes:

 Energy Technology Cluster Programme  Ubiquitous Computing Cluster Programme  Nanotechnology Cluster Programme  Forest Industry Future Cluster Programme  Tourism and Experience Production Cluster

Programme

Biomass related innovations are promoted especially by the Jyväskylä Region Centres of Expertise for Energy Technology and Forest Industry Future. Jyväskylä

region is the home of a global, major paper machinery supplier, many major engineering companies, many high-tech companies developing the latest innovations for the forest and paper industry, two paper mills, one board mill, one pulp mill as well as numerous chemicals and additives suppliers. Activities related to forest industry are closely linked to the fields of energy, environment, ICT and nanotechnologies. The aim of the Jyväskylä Region Centres of Expertise for Energy Technology and Forest Industry Future is to promote the transfer of top know-how from research to business, to promote collaboration between companies, research and education as well as other public bodies, and activate companies to grow and internationalise.

Jyväskylä Region Centre of Expertise Programme is carried out by Jyväskylä Innovation Ltd. Jyväskylä Innovation Ltd is a development company with the main task to develop innovation environments and technology clusters. More information is available at www.jklinnovation.fi.

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INNOVATION MANAGEMENT IN PROTOMO™ BUSINESS INCUBATOR

Protomo™ is a multidisciplinary social innovation and entrepreneurial environment. It offers a location for start-up companies and brings together experts with different professional backgrounds. Protomo provides all the necessary gear and equipment along with community support and business sparring from experts.

Facilitation and professional support  Idea assessment and sparring  Matchmaking and Protomo network  Protomo contract framework  Professional support e.g. in concept

development and sales message building, IPR and legal support, funding and technology

Agile process

 Value creation  Business model development  Customer development

Premises and tools  Community and workspace  Web and hardware  Development software  Prototype components

In practise, in Protomo is it possible to develop product ideas, prototypes and services in a “safe” environment. Protomo business incubator is a nationally offered service. Regional operators include at the moment nine regions in Finland: Jyväskylä, Tampere, Seinäjoki, Pori, Turku, Salo, Kouvola, Helsinki and Espoo. Each Protomo is working together with the region’s start-up communities. Financiers include SITRA, local cities and Centres for Economic Development, Transport and the Environment.

In Jyväskylä Protomo is coordinated by Jyväskylä Innovation Ltd. More information is available at www.protomo.fi/jyvaskyla.

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INNOVATION MANAGEMENT PROCESS IN REAL LIFE

According to University Inventions Act the ideas are classified by their origin. The ideas can be the result of either collaborative research (with external research partners) or open research conducted at the university (no external partners). During the past years R&D entities have undertaken intensive work to develop their innovation systems. In practice such management is usually conducted through the following process:

 The inventor defines the idea.  The inventor introduces the idea to the

innovation management service staff. An informal invention disclosure is prepared.

 The official idea notice is prepared by the inventor with the support of the managers and submitted to the department of the innovation management.

 The invention is protected if convenient.  The innovation system supports for product

development and commercialisation process. Â The decision whether to sell the invention or to

initiating business based on the invention.

Makes an invention

Sends a written acknowledgement

or asks for additional information

Prepares a written

inventions disclosure

Receives the acknowledgement

Receives the response

Sends a written response in two

months time of the acknowledgement

If necessary gives consultation on the

invention declaration

Evaluates patentability, commercial potential

grounds and know-how based activities grounds

Prepares a motion to the

GM or headmaster

Makes the decision whether the university keeps or transfers the

IPRs of the invention.

Inventor

R&D developement Manager

Expert/Lawyer

GM/ Headmaster

Figure 7: Process for the handling of inventions at Universities of Applied Sciences in Finland.

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The process for innovation management at universities of applied sciences in Finland is shown in figure 7.

The overall number of inventions that are annually presented for possible commercialization to the university innovation services are annually approximately 20 cases for University of Jyväskylä and 30 cases for JAMK. The cases are developed with procedure that has been created in joint collaboration between University of Jyväskylä and JAMK University of Applied Sciences. Moreover both organizations have developed it further to meet the respective needs of their own the organization.

Importance of the cooperation

The regional organisations, such JAMK University of Applied Sciences, University of Jyväskylä and VTT all have very unique targets and motivations to carry out research and development activities. However, in many cases the cooperation improves the activity quality and also supports the regional cooperation. Therefore the organizations have great interest to improve the cooperation practices with other R&D organizations. The key means to achieve this are as follows:

 Improve personnel level contacts and cooperation in-between the organizations

 Increase the number and quality of the beneficial joint actions

 Cooperation in-between the organization and other research orientated cluster members and national and international networks and other essential forums.

Receives negative decision

on the rights

Receives positive decision

on the rights

Sends a written decision in six months time of the response

Prepares transfer

document

No! Yes!

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OPTIMAL INNOVATION MANAGEMENT SYSTEM

Central Finland research organisations have adapted their innovation systems to support the activities that support research related ideas to become innovations that are used in business life. The basis is the University Inventions Act and the practical implementation promoted with the cooperation of the regional universities – University of Jyväskylä (academic university) and JAMK University of Applied Sciences.

The innovation management tracks have a lot of similarities and there are supporting documents available. Besides, the development process is supported by R&D organizations that help to identify potential developing funding and support at some extend with finance applying process. In general, the key topics in the optimal innovation management case are following:

Proper idea evaluation & promotion practices

In the most of innovation processes it has to be evaluated whether the invention can be supported with the existing mechanism or not. For that process there has to be skilful experts to carry out and evaluate the invention. Fair and professional idea evaluation and innovation management is based on skilled and experienced staff. The staff working with innovation related topics have to have enough expertise about innovation related legal frame and practical constrains. Besides they need to have resources for innovation management as well as proper communication skills and manners.

Often inventions are from such specialised field that there is a real lack of experts suitable for the evaluation. If the evaluator does not understand the value of the invention, there is an acute danger that process gets halted in the initial evaluation stage.

The idea has to be analysed and evaluated before the decision about commitment by the university is ensured. For that reason the innovation management staff has to be able to find professionals that are independent and skilful in this activity. This process has to be transparent enough for all the parties concerned and if possible it could give input for further development activities.

The commercialization process is often supported by the host organizations. Thus the work is carried out professionally and it is fuelled intensively. Besides the host organisations might help with further finance.

Appropriate communication and documentation

The process has to be carried out so that all entities are treated with good manner. Besides all the commitments, for example agreements, patents and licences, have to be careful studied and understood by all parties that it concerns. It is essential important that the inventor and possible other participants have clear and realistic understanding about their roles and duties related to the process decision making, immaterial and other properties and possible further findings.

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Target oriented and encouraging support activities

The process is carried out so that all activities support at some level the implementation of the final target: innovation commercialisation. Usually the idea needs to be developed. Therefore it is important to seek proper communication partners, for example the potential customers and financers. This process can be supported by the innovation system. Sometimes the university supports the R&D project development or market analyses. However, the expertise areas that invention covers are not always found in the universities. Therefore the inventor would at some cases need external mentor for his developing activities. This process has to be improved in the future.

The inventor has often very strong relationship to his or her invention. The process to develop the idea and in some cases to share the immaterial rights with some other parties is not easy. For that reason the inventor needs to be supported in the different phases. In the very beginning is essential to get in cooperation with the innovation management system. And later it certainly improves the product development if there are people to share the ideas with.

Besides if the inventor wishes to mentoring and encouragement from innovation management staff and the other university professionals, the option should be easily available.

SOURCESR. Reitzer, N. Nuutinen and M. Wihersaari, 2010: Research related innovation support systems – focus on JYU, JAMK and VTT (BIOCLUS Article in Innovation workshop of BIOCLUS project, available in www.bioclus.eu)

K. Knuuttila, E. Alakoski, T. Laitinen, J. Keränen, 2011: Task 5.1.c Mentoring and Mutual Learning Plan: Central Finland (BIOCLUS Document, available in www.bioclus.eu)

The research and innovation council of Finland (2010): Research and Innovation Policy Guidelines 2011-2015

Finlex: Laki oikeudesta korkeakouluissa tehtäviin keksintöihin 19.5.2006/369

Finlex: Laki oikeudesta työntekijän tekemiin keksintöihin 29.12.1967/656

Website: Ideasta ilmiöksi, http://www.ideastailmioksi.fi (10.1.2012)

Key characteristics of the optimal innovation management system

 Target oriented, flexible & transparent process

 Professional staff  Proper communication and

documentation

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This publication introduces the development of research related inventions management system in Central Finland. It describes and analyses the national framework of research related innovation management as well as the innovation management practices in Jyväskylä Innovation Ltd, University of Jyväskylä, JAMK University of Applied Sciences and VTT Technical Research Centre of Finland.

The publication is produced by BIOCLUS project (Developing Research and Innovation Environment in five European Regions in the field of Sustainable Use of Biomass Sources), which is funded by Region of Knowledge Programme of EU Seventh Framework Programme for Research and Technological Development (FP7/ Project 245438).

The objective of BIOCLUS is to boost regional competiveness and growth in Central Finland, Navarre (Spain), Western Macedonia (Greece), Slovakia and Wielkopolska (Poland). The project promotes collaboration and integration of cluster regions and strengthens the innovation by improving research potential and innovation management. It also supports the sustainable development by improving the research environment that is related to the use of biomass.

More information is available at www.bioclus.eu