Innovations and regions

Ari Tarkiainen, PhDNorth Karelia University of Applied Sciences

Groningen 15 May 2011

AIMS

• Innovation policy in Finland: some conceptual clarifications

• Demographic change in Finland- some figures and facts

• RDI- policies in NKUAS: practice based and user centered innovation paradigm

• suggestions for research cooperation: good practices, policy instruments, innovations

INNOVATION POLICY IN FINLAND

INNOVATION POLICY IN FINLANDEncouraging innovation environment • Finland has proven an excellent location for testing out new products and services. • Businesses benefit from the country's advanced 'Living Lab' environment where

users, companies, researchers and public institutions are joining forces to form problem-solving communities.

Characteristics of the innovation environment • Innovation policy has developed consistently • Growing investments in R&D - public and private • Dynamic and transparent ecosystem • Active, continuous and successful dialogue on all levels • Involves companies, research institutes and the public sector Broad interpretation of innovation • Technology - society • Products - services - processes • Environment - user - design

Concept definitionsNational innovation systemNational innovation system is “the system of interacting private and public firms (either large or small), universities, and government agencies aiming at the production of science and technology within national borders. Interaction among these units may be technical, commercial, legal, social, and financial, inasmuch as the goal of the interaction is the development, protection, financing, regulation of new science and technology” (Niosi et al., 1993: 212).Regional innovation system The regional innovation system is “a system of innovative networks and institutions located within a certain geographical area, with regular and strong internal interaction that promotes the innovativeness of the region´s companies.” (Kostiainen, 2002: 80.)Social capitalSocial capital “refers to features of social organisation, such as trust, norms and networks, that can improve the efficiency of society by facilitating co-ordinated actions” (Putnam, 1993: 167).

Concept definitionsRDIResearch, development and innovation

Regional innovationThe hallmarks of a competitive regional innovation environment are viable cooperation between businesses, universities, research institutions and science parks, and regenerative capacity. The altered nature of innovation and the changes that have taken place in the conditions for competition have boosted the importance of regional innovation environments and regional innovation in innovation policy.

Social innovationSocial innovation refers to new strategies, concepts, ideas and organizations that meet social needs of all kinds - from working conditions and education to community development and health - and that extend and strengthen civil society.

User-driven innovation policyUser-driven innovation policy promotes systematic engagement of users in the innovation process. Tools that enable user-driven innovation include development platforms for user-driven innovation tools for strategic design and service design, web-based tools for the analysis of information masses, ethnography and other methods of analysis and foresight into customer needs.

Origins of innovation?

Vesa Harmaakorpi

Science-based Science, technology, innovation (STI)

Practice-based Doing, using, interacting (DUI)

Finnish policy framework

Cluster-based economic development policy Science-based innovation policy But, only 4 % of innovation is triggered by science (CIS) And, only 1 % of scientific knowledge production in Finland, what

next? User-driven innovation? System innovation? Open innovation? Practice-based innovation? Platform-based economic development policy?

Vesa Harmaakorpi

Wellbeing of citizensEconomic growthCompetitivenessProductivityInnovativeness Changing techno-economic

Paradigm

Global megatrends

Regional innovation system

Dynamic capabilities- Vision- Leadership- Networking- Innovativeness

Resource configurations- Social capital- Development platforms

Path dependency

Innovation policy tool

Regional platform

Harmaakorpi 2004

SHOK vs. IHAK

Vesa Harmaakorpi

• SHOK Strategic centers for scence, technology and innovation

• Nation level• Agglomerations - Clusters• Radical innovation• Expertise- and science-based

innovation• World class science institutions• Homogenous knowledge

production in the chosen field• Transfer of the developed

knowledge and technology to the firms of the cluster

• Big firms• Universities

• IHAK Regional innovation environments

• Region level• Related variety – Innovation

platforms• Incremental innovation• User- and practice-based innovation• Brokerage – General ability to build

possible worlds• Development of the working life• Scanning of technology and market

signals and absorption to the firms• Heterogenous knowledge

production• SME’s• Universities of applied sciences

Resources, comptences and capabilities to be promoted by IHAK-program

Vesa Harmaakorpi

Dynamic Capability: Especially leadership, networking, learning, visionary nad innovative capablities and their simutaneous management in the development process – managing complexity.

Core capability: Combining knowledge and skills – general ability to build possible words.

Core competence: Brokerage - ability to span structural holes

Intangible resource: Creative social capital – amalgam of bonding social capital, bridging social capital and creative tension

Resources: The product factors in regional development platforms fueld by related variety

DEMOGRAPHIC CHANGE IN FINLAND

DEMOGRAPHIC CHANGEmedian age in 2007

15

Median age in 1975 Finland

12/04/202315

23 - 29

30 - 34

35 - 39

40 - 44

45 - 49

50 - 51

(111)

(158)

(92)

(44)

(8)

(3)

Lowest:

Ranua

Taivalkoski

Kuusamo

Oulunsalo

Yli-Ii

Kempele

Posio

Raahe

Utsjoki

23

23

24

24

24

25

25

25

25

Highest:

KökarIniöVelkuaFöglöKumlingeBrändöHouskariSottunga

51

50

50

49

49

48

48

48

Municipalities

Whole country 30 years

26.9.2007/RK Lähde: Tilastokeskus, asukasluvut Pohjakartta© Affecto Finland Oy, Karttakeskus, Lupa L7017/07

16

Median age in 2025

12/04/202316

27 - 29 30 - 3435 - 3940 - 4445 - 4950 - 5455 - 64

(2)(4)

(22)(86)

(118)(90)(94)

Lowest:

Liminka

Tyrnävä

Luoto

Lumijoki

Perho

Sievi

27

29

31

33

34

34

Highest:

LuhankaSavonrantaPuumalaTervoKuhmoinen

64

64

63

63

62

Municipalities

Whole country 44 years

15.8.2007/RK Lähde: Tilastokeskus, asukasluvut Pohjakartta© Affecto Finland Oy, Karttakeskus, Lupa L7017/07

Population of East-Finland(1815-1944, 1945-1974, 1975-2008)

0

200

400

600

800

1 000

1 200

1 400

1815 1865 1875 1885 1895 1905 1915 1925 1935 1945 1955 1965 1975 1985 1995 2005

Year

1 00

0 in

hab

itan

ts

Population changes in North Karelia in 1993-2009*

136

-225

-631

-1 515

-168

-603

-780

-521

-1 099-1 107 -925

-844

-1 159

-1 087

-615

-293

-813

-1 800

-1 600

-1 400

-1 200

-1 000

-800

-600

-400

-200

0

200

400

600

1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009*

Natural increase Net inter-municipal migration Net migration Total change

Source: Statistics Finland

Finland 2008

60 000 40 000 20 000 0 20 000 40 000 60 000

0

2

46

8

10

12

14

1618

20

22

24

2628

30

32

34

36

3840

42

44

46

48

5052

54

56

58

6062

64

66

68

70

7274

76

78

80

8284

86

88

90

92

9496

98

100 -

Women Men

North Karelia 2008

2 000 1 500 1 000 500 0 500 1 000 1 500 2 000

0

2

46

8

10

12

14

1618

20

22

24

2628

30

32

34

36

3840

42

44

46

48

5052

54

56

58

6062

64

66

68

70

7274

76

78

80

8284

86

88

90

92

9496

98

100 -

Women Men

Lieksa 2008

200 150 100 50 0 50 100 150 200

0

2

46

8

10

12

14

1618

20

22

24

2628

30

32

34

36

3840

42

44

46

48

5052

54

56

58

6062

64

66

68

70

7274

76

78

80

8284

86

88

90

92

9496

98

100 -

Women Men

Age and Gender Structure in 2008

Age and Gender Structure in 2030According to Population Projection by Statistics Finland 2009

Finland 2030

50 000 30 000 10 000 10 000 30 000 50 000

0

2

4

6

8

10

12

14

16

18

20

22

24

26

28

30

32

34

36

38

40

42

44

46

48

50

52

54

56

58

60

62

64

66

68

70

72

74

76

78

80

82

84

86

88

90

92

94

96

98

100 -

Women Men

North Karelia 2030

2 000 1 500 1 000 500 0 500 1 000 1 500 2 000

0

2

4

6

8

10

12

14

16

18

20

22

24

26

28

30

32

34

36

38

40

42

44

46

48

50

52

54

56

58

60

62

64

66

68

70

72

74

76

78

80

82

84

86

88

90

92

94

96

98

100 -

Women Men

Lieksa 2030

200 150 100 50 0 50 100 150 200

0

2

4

6

8

10

12

14

16

18

20

22

24

26

28

30

32

34

36

38

40

42

44

46

48

50

52

54

56

58

60

62

64

66

68

70

72

74

76

78

80

82

84

86

88

90

92

94

96

98

100 -

Women Men

Age-groups entering and leaving the North Karelian labour markets in 1990-2030

0

2 000

4 000

6 000

8 000

10 000

12 000

14 000

16 000

1990 1995 2000 2005 2010 2015 2020 2025 2030

20-24

60-64

Demand and supply of labour force in North Karelia in 1995-2030

50 000

55 000

60 000

65 000

70 000

75 000

80 000

1995 2000 2005 2010 2015 2020 2025 2030

Labour force

Number of jobs

CHANGES IN SOCIAL AND HEALTH CARE

Service campus – welfare mix

Living environment

New technology

Other services

CUSTOMER/CITIZEN

ACTORS

Internal dynamicskka

External dynamics

SERVICE CAMPUS: NEW CONCEPT FOR ORGANIZING SOCIAL AND HEALTH CARE

N

S

W

E

Logistics

Living and housing

• What is home?• Safety and universal design ?• Community planning and architecture ?• Building and renovation ?• Living in-between? For whom? • New concepts for community housing

(Netherlands, Denmark

New technology

• Mobile ICT- new modes of organizing work ?• Work and service design?• Follow-up and quality?• Logistics and efficiency?• Virtual services and interfaces?

Services in future

• Skilled labour force: supply and demand • Right place, right time, right focus • Funding challenge of social and health sector• the role of public sector; efficiency,

productivity• Recent trends: welfare mix – social and health

sector as a market• Internal dynamics social and health care

NGOs and citizens – 3rd sector

Public sector- hierarchy

Private companies- market

Interface 1

Interface 2

Interfaces in service campuses and actor platforms

Services: public-private partnerships – purchader/provider- model

CHALLENGE FOR UNIVERSITIES OF APPLIED SCIENCES

Service campus platformExpertise

Age knowledge and knowhow

lnstitution

In-between solutions

Heavy home care

Light home care

Self-care

Community

prevention

EducationBasic Further

Research Practical trainingThesesResearch interventions

I´nnovationRegionWorking lifeSocial and healthservices

Institutional care

A 1Research vs. education

B 1 Development vs. education

C1 Innovation vs. education

A2 Research andprofessional practice

B2 Development vs. professiona practices

C2 Innovation vs. professional practices

A3 Research vs. region B3 Development vs. region

C3 Innovation vs region

Some suggestions for cooperation

Some suggestions for cooperation

• Active ageing 2012: healthy ageing• Good practices and exchange• Good policy models: regional approach• Intervention studies linked with innovations:

dilemma of implementation and imagination• EU- programmes ?• Multi-dimensional, multi-disciplinary

THANK YOU!