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Stellenbosch University, Sasol Art Gallery

Stellenbosch, South Africa, 9 May 2007

UNIVERSITIES’ CONTRIBUTION

TO KNOWLEDGE ECONOMY

Professor Jorma Routti

CIM Creative Industries Management & Helsinki University of Technology

[email protected] [email protected]

Former President of Sitra & Director General of Research DG of European Commision

Finland Europe World

0

2

4

6

8

10

12

14

16

2003 2005 2007 2009 2011 2013 2015

Trillions of 1995 international $

India China Brazil

Canada France Germany

Italy Japan Mexico

Russian Federation United Kingdom United States

India

China

United States

JapanGermany

United Kingdom

France

Italy

Canada

Mexico

Russian Federation

Brazil

Real GDP (PPP): Projections 2004-2015 (Using 1991-2003 Average Growth Rates)

©cjd©cjd

Manufacturing Output by Region in 1750-2005, % of world total

0

10

20

30

40

50

60

70

1750 1800 1850 1900 1950 2000

East Asia

North America

Europe

East Asia: China, Japan, India

North America: USA, Canada

Europe: Germany, Great Britain,

France, Italy, Spain, Sweden,

Belgium, Switzerland

Sources: Bairoch (1982), UNSD,

ETLA

%

First Unbundling of Industries 1950-2000Second Unbundling of Services 2000-

Lisbon strategy

Research

Growth and Jobs

Education Innovation

S&T contributes to the Lisbon objectives: economic growth, employment creation, environmental protection, social challenges: fight poverty, improve human health and quality of life (GSM, remote working, safe roads, etc.)

9 Thematic Priorities1. Health

2. Food, agriculture and biotechnology

3. Information and communication technologies

4. Nanosciences, nanotechnologies, materials and new production technologies

5. Energy

6. Environment (including climate change)

7. Transport (including aeronautics)

8. Socio-economic sciences and the humanities

9. Security and space

+ Euratom: Fusion energy research, nuclear fission and radiation protection

Cooperation – Collaborative researchCooperation – Collaborative research

Joint Technology Initiatives

Global Monitoring for Environment

and Security

Global Monitoring for Environment

and Security

Hydrogen and Fuel Cells for a Sustainable Energy

Future

Hydrogen and Fuel Cells for a Sustainable Energy

Future

Towards new Nanoelectronics

Approaches

Towards new Nanoelectronics

Approaches

Embedded systemsEmbedded systems

Aeronautics and Air Transport

Aeronautics and Air Transport

Innovative Medicines for the Citizens

of Europe

Innovative Medicines for the Citizens

of Europe

Other possible themes to be identified later…

The Four Pillars of the Knowledge Economy

Education

InnovationInformation

Infrastructure

Interconnected

Interdependent

Interconnected

Interdependent

Economic and Institutional

Regime

Strong Correlation: GDP/Capita & KEI

Source: KAM Africa GDP/capita = $2624

Regression KEI 2002 and GDP per capita 2002

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

0.00 1.00 2.00 3.00 4.00 5.00 6.00 7.00 8.00 9.00 10.00

Knowledge Economy Index 2002

GD

P p

er

ca

pit

a 2

00

2 (

19

95

co

ns

tan

t U

S$

20

02

)

R2 = 0.66Finland

Brazil

ChinaIndia

Korea

RussiaJordan

Ireland

Poland

South Africa

Ethiopia Ghana

Turkey

USA

UK

Slovenia

Taiwan

Africa

Stages of Industrial and Economic Development

FOREST-BASED INDUSTRIES

MACHINERY, ENGIN. IND.

FOREST-BASED IND

ICT, ELECTRONICSMACHINERY, ENG.FOREST-BASED INDCHEMICALS

0,00

0,50

1,00

1,50

2,00

2,50

3,00

3,50

4,00

4,50

19

81

19

84

19

87

19

90

19

93

19

96

19

99

20

02

20

05

Finland

Japan

USA

EU

Sw eden

China

R&D expenditure, % of GDP

Industrial Productionat 2000 prices

0

2

4

6

8

10

12

1951

1955

1959

1963

1967

1971

1975

1979

1983

1987

1991

1995

1999

2003

Bill. EUR

Electronics

Metals and engineering

Pulp and paper

Chemicals

Textiles and apparel

Sources: Statistics Finland, ETLA.

Telecommunications and Nokia's Change

1988 1998

Mobile Phones 60% Infrastructure 33% Other 7%

Floorings 1%

Chemicals 2%

Machinery 4%

Electrical Wholesale 4%

Rubber 6%

Information Systems 23%

Cables 9%

Paper 10%

Consumer Electronics 31%

Mobile Telephones 5%Telecommunications 5%

Mobile Telephones 5%Telecommunications 5%

2000

Net sales USD 5.2 billion 1988 Market capitalization USD 1.4 billion at year end 1988

Net sales USD 19.9 billion 1999Market capitalization USD 236.5 billion, as of February 28th 2000

Services in the Mobile Information Society

Information

Entertainment

e-shoppingand banking

Voice

Corporate access and e-mail

e-education

Video

MARKETS quality

competitiveness price

competitiveness environmental

expertise

F O R E S T I N D U S T R Y

Pulp and paper technology

Wood products industry

Machines, machinery and processes

A11/ 99-08

Securing competitiveness inthe Forest Industry

FORESTRY

CONSTRUCTION AND WOOD TECHNOLOGY modification of wood construction

technology andarchitecture

logistics, assembly

MANUFACTURING TECHNOLOGY forestry machines process and production machinery material technology

BIOTECHNOLOGY enzymes rot prevention gene technology

ENERGY AND ENVIRON-MENTAL TECHNOLOGY biofuels, combustion technology ecobalances closed cycles energy-saving and

emissions

CHEMICAL TECHNOLOGY paper and bleaching chemicals surface treatment

substances pigments, adhesives

INFORMATIONTECHNOLOGY sensors, measuring

and control computational

intelligence,simulation andmachine vision

multimedia and telecommunication tomography

Co-operation between companies and universities and research institutes

Norway

UK

Sweden

FINLAND

Portugal

Austria

Netherlands

Ireland

Italy

France

Denmark

Germany

Belgium

EU

Norway

UK

Sweden

FINLAND

Portugal

Austria

Netherlands

Ireland

Italy

France

Denmark

Germany

Belgium

EU

0 20 40 60 %

Share of innovative companieshaving co-operation agreements

with universities (1994-1996)

Share of innovative companies havingco-operation agreements with public

research institutes (1994-1996)

Source: Eurostat, Enterprise DG, 2nd Community Innovation Survey

J05/ 00-06

0 20 40 60 %

Science Parks in 1980 – 2000 and CoE concept

University Company

in 1980’s

Companies

Universities

Science Park

in early 1990’s

Companies

Science Park

Centre of Expertise Programme Universities

Polytechnics

in late 1990’s and 2000’s

Regional networking with partners from Oulu in electronics and telecommunications programmes

DM 5862003-2004 Copyright © Tekes

Includes partners who participated in at least three projects in Tekes Electronics and Telecommunications technology programmes.

Lappeenranta University of Technology (Lappeenranta)

Salcomp Oy (Kemijärvi)

CCC (Oulu)

Sonera (Helsinki)

Nokia Mobile Phones (Oulu)National Semiconductor Finland Oy,former Fincitec Oy (Kemi)

University of Oulu (Oulu)

Efore Oy (Helsinki)

Projekti-Insinöörit Oy (Helsinki)

Cybelius Software Oy (Oulu)

Teleste (Turku)

Tampere University of Technology (Tampere)

Nokia Networks (Oulu)

ADC Telecommunications Oy (Oulu)

VTT, Technical ResearchCentre of Finland (Helsinki)

Helsinki University of Technology (Espoo)

JOT Automation Oy (Oulu)

Nokia Research Center (Helsinki)

VTT, Technical ResearchCentre of Finland (Oulu)

Extrabit Oy (Oulu)

ABB (Helsinki)

NetHawk Oy (Oulu)

Elektrobit Oy (Oulu)

Vaisala Oyj (Helsinki)

Polar Electro Oy (Oulu)

Filtronic LK Oy (Oulu)

Aspocomp Oy (Helsinki)

Elcoteq Network Oyj (Lohja)

Planar Systems Oy (Helsinki)Ultraprint Oy (Oulu)

Suunto Oy (Helsinki)

Picopak (Lohja)Nokia Mobile Phones (Salo)

Large companies (more than 500 employees) receive 16 % of Tekes total funding and 26 % of Tekesbusiness R&D funding. Large companies co-finance Tekes R&D projects in universities, publicresearch institutes and SMEs more than Tekes finances their projects.This system is managed by Tekes funding criteria. The system increases the quality of R&D projectsand has important externalities in:• knowledge transfer between large companies and research organisations• development of SMEs as subcontractors and strategic partners of large companies

Funding flows of Tekes funded R&D projectsbetween large companies (more than 500

employees), research organisations and SMEs

DM 5877408-2003 Copyright © Tekes

+ 60

- 31

- 15

- 16

- 2

UniversitiesPublic research

centresSMEs

Tekes

60 mill.euros

Projectvolume

180 mill. euros31 mill. euros 15 mill. euros

16 mill. euros

Annual average 2000-2002

Funding flows to/from large companies,million euros

• Tekes funding to R&D projectsof large companies

• Large companies projects buyresearch services from researchorganisations

• Large companies projects useSMEs as subcontractors

• Large companies co-financepublic research projects

• Net flow

Large companies

The stimulating effect of public funding on R&D

5 10 15 20 25

FINLAND

Sweden

OECD Max

USA

Increased public funding

strengthens the stimulating effect

Growth of the stimulating effect

decreases

Public funding compensates

corporate efforts

The chart is directional and the figures include uncertainty.

Share of public fundingin corporate

R&D spending,%

The stimulating effect ofpublic funding on R&D

Source: OECD, Science, Technology and Industry Outlook 2000. (statistics from 17 countries, compiled over a period of 15 years). DM 38065

04-2002 Copyright © Tekes

Innovation and Funding System

Pri

vate

Basic research Applied research Business R&D

Business developmentMarketingInternationalisation

Company R&D

Business Angels

Pu

blic

UniversitiesResearch Institutes

Technology Funding

Venture Funds

Sectorial research

ResearchCouncils

Science Parks

s

SOCIAL & HUMAN CAPITAL

TECHNOLOGY & INNOVATION

RE

SE

AR

CH

CA

PA

CI

TY A

BS

OR

TIO

N C

AP

AC

ITY

SUPPLY USERS

CREATORS DEMAND

s

SOCIAL & HUMAN CAPITAL

TECHNOLOGY & INNOVATION

RE

SE

AR

CH

CA

PA

CI

TY

AB

SO

RT

ION

CA

PA

CIT

Y

SUPPLY USERS

CREATORS DEMAND

JAPAN

USA

IRL

ITA

SWE

DE

FR

UK

FIN

ITERInternational Thermonuclear Experimental Reactor

Cleaner Energy for our Planet

Main ITER Parameters

Total Fusion Power (MW) 500

Q - Fusion Power/AuxiliaryHeating Power 10

Average (1 MeV) neutron wall loading (MW/m2) 0.57

Plasma major radius (m) 6.2

Plasma minor radius (m) 2.0

Plasma Current (MAmpere) 15

Toroidal Field at 6.2 m radius(T) 5.3

Plasma Volume (m3) 837

Installed auxiliary heating/current drive power (MW) 73

TIME – ENERGY - INFORMATION

E = 0

I = 0 T = 0

I = maxT = max

E = max

E enlightenment

W wisdom

U understanding

K knowledge

I information

D data

[email protected]