11/04/23, 1

ST Parks: Where successful and innovative

companies of Nokia type grow

ADVISORY LECTURES BRATISLAWA JANUARY 2008

N TAPANI SAARINENVICE PRESIDENTBUSINESS DEVELOPMENT

11/04/23, 2

11/04/23, 3

FINLANDPopulation: 5.2 millionArea: 338.000 km2

GDP/capita: 26 200 € PhD students 21 000

SLOVAKIAPopulation: 5.4 millionArea: 49.036 km2

GDP/capita: 12 900 €PhD students 9 000

11/04/23, 4

THE WORLD CHANGES RAPIDLY

YOU WON´T BELIEVE, ´TILL YOU SEE

11/04/23, 5

11/04/23, 6

Mobira Talkman MD 50

1985 4999 € (as 2007 money)

NOKIA 1600 BLACK

May 2007 48 €

11/04/23, 7

City of Turku

Turku Science Park

Competitive Finland

11/04/23, 8

Science Parks

11/04/23, 9DM 36100

12-2006 Copyright © Tekes

Innovation environment in Finland

Pri

vate

Basic research Applied research Business R&D

Business developmentMarketingInternationalisation

R&Dat companies

3,880

The figures represent the total extent of each organisation in million euros in 2005, those markedwith star in 2004 or earlier. In parenthesis the share that is funded from the State budget.

** includes venture capital funds from the Finnish Industry Investment Ltd

BusinessAngels

approx. 380*

Pu

blic

Finnvera406 (40)

Universities1,040 (454)*

Academyof Finland219 (219)

Ministries,TE-Centres,

sectorial research312 (221)*

Tekes430 (430)

VTT225 (78)

From abroad169*

Innofin6 (5)

Finpro32 (20)

Venture capitalists:Private 268**

Finnish Industry Investment:direct 13, venture capital funds 42,

seed funding 11Sitra 29

11/04/23, 10

Tekes

Sitra

Key actors of the Finnish innovation environment

Finnish IndustryInvestment Ltd

Business AngelsInvestors

Companies

Research institutes

Universities

Academy of Finland

Science andTechnology Policy

Council

Ministry of Education

Associations

Inventions

Private investmentsin innovation

Technology Centres

Centres of Expertise

Polytechnics

Regional TE-Centres

Regional Councils

Finnvera

FinproEU structural fundsfor innovation

Ministry of Employment and the EconomyOther ministries

Investments in different sectorslike environment, health and traffic

National public investment ininnovation and know-how

DM 3610001-2008 Copyright © Tekes

Key actorsof the Finnish

innovation environment

Key actorsof the Finnish

innovation environment

Invest in Finland

National Board of Patentsand Registrations of Finland

11/04/23, 11

20 Universities

Students163 000, of which new students 19 000

Qualifications/year 10 000

Personnel 12 000

FINNISH UNIVERSITIES

(+ 30 Polytechnics with 120 000 Students)

22% OF THE POPULATION HAVE AN ACADEMIC DEGREE

11/04/23, 12

AgropolisCarelian Science ParkCulminatumFinn-Medi ResearchFoodwestHelsinki Business & Science ParkHämeenlinna Technology CentreJyväskylä Science ParkKajaani Science ParkKetekKuopio Technology Centre TekniaMedia TampereNeopoliOtaniemi Science ParkPrizzTechSeinäjoki Technology CentreTampere Technology CentreTechnopolisTechVillaTechnology Centre KareltekTechnology Centre MerinovaTurku Science Park

OPERATIVE COMPANIES 30 technology and science parks 550 employees100 M€ turnover

SCIENCE PARKS 1 600 enterprises and organizations

32 000 experts 1 000 000 m2

FINNISH SCIENCE PARKS

WWW.TEKEL.FI

11/04/23, 13

Network in Finland of:

DM 5862003-2004 Copyright © Tekes

UniversityRegional university unit

PolytechnicPolytechnic regional unit

VTT, Technical ResearchCentre of Finland or otherpublic research instituteRegional unit of public sector research institute

Technology centre

Universities, Polytechnics

Public research institutes

Technology centres

www.tekel.fi

11/04/23, 14

Finland – a Country of Top Education

1st Place 2nd Place 3rd Place

Mathematical

literacyFinland Korea The Netherlands

Reading

literacyFinland Korea Canada

Scienctific

literacyFinland Japan Korea

Problem

solvingKorea Finland Japan

Learning outcomes for schoolchildren:

Source: OECD PISA 2003 Study

11/04/23, 15

The Global Competitiveness Report2007-2008

1. United States

2. Switzerland

3. Denmark

4. Sweden

5. Germany

6. Finland

7. Singapore

8. Japan

9. UK

10. The Netherlands

Source: World Economic Forum, Global Competitiveness Report 2007-2008

Overall Competitiveness

Index

11/04/23, 16

R&D investments in some countries

DM 36109, 36054 and 21847504-2007 Copyright © Tekes

Percentage of GDP

Sources: OECD, Main Science and Technology Indicators,Finland 2005 and 2006, Statistics Finland

Prel.

Israel

Sweden

FINLAND

Japan

Korea

Iceland

USA

Germany

Denmark

Austria

Singapore

OECD

France

Canada

Great Britain

Norway

China

Ireland0,5

1,0

1,5

2,0

2,5

3,0

3,5

4,0

4,5

5,0

91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06

5.0

4.5

4.0

3.5

3.0

2.5

2.0

1.5

1.0

0.5

0

1

2

3

4

5

6

87 89 91 93 95 97 98 99 00 01 02 03 04 05 06

1.11.5

1.7 1.82.2

3.9

4.4

2.9

4.64.8

3.4

5.35.0

5.55.8

Source: Statistics Finland

R&D expenditure in Finland

DM 3610012-2007 Copyright © Tekes

Billion euros

EnterprisesUniversitiesOther public research

Total 5.8 billion euros, 3.5 percent ofthe Gross Domestic Product (GDP) in 2006.

In 2006 Tekes allocated 477 million euros for R&D projects.

R&D input in Finland

DM 3610010-2007 Copyright © Tekes

Public sectorPublic sector1.7 billion

euros

4.1 billioneuros

EnterprisesEnterprises

Sources: Statistics Finland and Tekes

Companies’ share of total R&D fundingin 2003

DM 36109 and 3605403-2006 Copyright © TekesSource: Eurostat

0 20 40 60 80

PortugalIcelandAustria

Great BritainSlovakia

SpainNorwayFrance

NetherlandsCzechia

EU 15Ireland

SloveniaBelgium

DenmarkUSA

SwedenGermany

FinlandJapan

%

Venture capital investmentsAverage 2000-2003

Source: OECD, Science, Technology and Industry Scoreboard 2005DM 36104, 36054 and 218475

09-2006 Copyright © Tekes

0,0 0,1 0,2 0,3 0,4 0,5

JapanAustria

SwitzerlandPortugalGermany

IrelandBelgium

FranceNorway

DenmarkSpain

EUFinland

NetherlandsGreat Britain

SwedenOECDKorea

CanadaUSA

Iceland

Percent of GDP 0.0 0.1 0.2 0.3 0.4 0.5

Expansion phaseEarly phase

11/04/23, 21

Finnish Innovations

Heart rate monitor

ABLOY®

Long-acting intrauterine contraceptive system

MIRENA®

Range of foods and drinkswith a unique cholesterol lowering

ingredient

Benecol®

Xylitol

Utilization of Xylitol e.g. in chewing gums and pastilles

to prevent caries

11/04/23, 22

THE AIM AND MISSION OF THE GOVERNMENT IS

TO PROVIDE FOR BOTH ENTREPRENEURSHIP AND INNOVATION ACTIVITIES

WORLDS BEST OPERATIONAL ENVIRONMENT.

“Finnish Government Platform 2007”

11/04/23, 23

CoE

11/04/23, 24

City of Turku

Turku Science Park

Competitive Finland

11/04/23, 25

85 Million People within 1000 km Radius

11/04/23, 26

Academia Aboensis, the Åbo Akademi, was founded already in 1640. It reached the top level of science by the end of 1700’s

Today Turku has three universities and the largest polytechnic (University of Applied Sciences) in Finland

Turku – an Educational Centre with Traditions

11/04/23, 27

THE 4 PHASES OF UNIVERSITY DEVELOPMENT ( WALSH ; 1990, SAARINEN 1994, 2004)

PRINCIPAL INFLUENECES PRIME FUNCTIONS AND OUTCOMES

ON THE UNIVERSITIES

CHURCH EDUCATION PRIESTS, MED DOCTORS, LAWYERS

(Alma Mater Bologna ca.1170-1300)

CHURCH AND STATE EDUCATION PRIESTS, MED DOCTORS, LAWYERS (ca.1300-1830) CIVIL CERVANTS

STATE EDUCATION CIVIL CERVANTS, PROFESSIONALS

(ca. 1830-1980) RESEARCH PURE AND APPLIED

The era of traditional industrialism, continuous growth, large scale

ENTERPRISES, STATE EDUCATION KEY MANPOWER

(ca. 1980-) RESEARCH PURE AND APPLIED, GOOD AND BAD

The era of information technology, virtual organisations, smaller scale

INNOVATION BROKERS ? UTILISATION? GLOBAL KEY MANPOWER OF RESEARCH? START UPS ???

and 5th

11/04/23, 28

Turku, the oldest town (778 yrs) in Finland, the clear heart of the South-Western part of the country, hosts economical area of 290 000 inhabitants

Turku is the European Capital of Culture in year 2011

11/04/23, 29

Favourable Location in the Fast Growing Baltic Sea Region

The most high-level and most international centre of research and innovation after the capital region

World class competence in the biotechnology and maritime clusters

The highest GEP forecast of production growth, employment and population development in Finland until the year 2010¹)

Near the European markets – located along the transport corridors of all the Nordic countries

Good connections by flight, road, train and ferries

¹) ETLA 2006

TURKU

Moscow

St PetersburgStockholmHelsinki

Gothenburg

Oslo

Copenhagen

Berlin

Paris

Rome

Brussels

GdanskLondon

Milan

Düsseldorf

11/04/23, 30

Liberty of the Seas

11/04/23, 31

City of Turku

Turku Science Park

Competitive Finland

11/04/23, 32

SCIENCE PARK CONCEPT

TO CONVERT

KNOWLEDGE AND EXPERTISE

INTO

ACTION, PRODUCTION AND INVESTMENTS

”The Product of a Science Park is contact,

which leads into activity”

11/04/23, 33

Incubationand otherActivities fortenants

Regional andNational DevelopmentProjects andprograms.

Providing and DevelopingPremises,Environment andservices.

SCIENCE PARK CONCEPT

CoE Programme

11/04/23, 34

MISSION OF SCIENCE PARKS

© N.T. Saarinen Turku Science Park Jan.2003

ENHANCE INDUSTRIAL PROFILE BUILD THE IMAGE OF THE REGIONAL ECONOMY IMPORTANT ROLE IN INNOVATION AND INDUSTRIAL RENEVAL SUPPORT THE FORMATION OF BUSINESSES NURTURE ENTREPRENEURSHIP INTERMEDIATES BETWEEN ACADEMIA AND INDUSTRY CATALYST FOR THE COMMERCIALISATION OF RESEARCH RESULTS TRANSFORMER OF IDEAS INTO NEW PRODUCTS AND PROCESSES

Patrick Dubarle; OECD Territorial Development Service; Quebec 2002

11/04/23, 35

TRIPLE HELIX

ACADEMIAINDUSTRY

SOCIETY

11/04/23, 36

SUCCES FACTORS OF SCIENCE PARKS

• INFRASTRUCTURE

• LOGISTICS; COMMUNICATIONS

•SITE; POSSIBILITY TO GROW

• LEVEL OF KNOWLEDGE

•UNIVERSITIES; RESEARCH INSTITUTES

• PEOPLE

• COORDINATION

• OGRGANISED; RESOURSED

• RECOGNIZED LEADERSHIP

• COOPERATION

• TRIPLE HELIX

• COMMITMENT””FLOW OF KNOWLEDGE

11/04/23, 37

Responsible for the management and development of Turku Science Park - in close co-operation with the local universities, polytechnics, companies and public actors

Takes care of the strategic management of the Turku Science Park area and activities as well as marketing and business development services.

Promoting innovation and new businesses based on the knowledge and expertise from local universities and companies

Enhancing the internationalization and growth of BioTurku® – cluster and ICT Turku –cluster

Turku Science Park Ltd -Accelerating Innovative Growth

11/04/23, 38

To promote businesses based on local university knowledge

Mission

Regional development company and neutral intermediate between research,

business and the public sector

Role

Turku Science Park Ltd

11/04/23, 39

Operative coverageFocus Areas

Biotechnology Life Sciences

ICT Applied ICT

11/04/23, 40

1. External R&D funding, VC and investments to focal areas

2. Number of employees in focal areas 3. The city´s and region´s image as a centre for high-tech

Strategic Goals

11/04/23, 41

Turku Science Park - a Strong Platform for High-tech

three universities two polytechnics university hospital

13 500 employees 25 000 students 400 professors 300 companies and organisations over 250 000 m2 of premises an integral 5 km² area within a walking distance from the city-centre

11/04/23, 42

Organizations by type:

Bio

ICTOther technology

Services

Research and education

23%23%

25%25%12%12%

28%28%

12%12%

Number of organizations:

0

50

100

150

200

250

300

350

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

Attractive Location for High-tech

11/04/23, 43

The Chairmen:• Tom von Weymarn, The Chairman of the Board, also Chairman of the Board in TeliaSonera Ab and Lännen Tehtaat Plc

• Tero Hirvilammi, Vice-Chairman of the Board, Deputy Mayor for Competence and Business Development in the city of Turku

Board members:• Pauliina de Anna, 2nd Vice-Chair of the City Board (City of Turku)

• Rabbe Klemets, Chairman of the Board in Klemets Management Ltd

• Seppo Lehtinen, 1st Vice-Chair of the City Board (City of Turku)

• Björn Mattsson, Chairman of the Board in Patria Plc and Nordkalk Plc

• Aleksi Randell, Member of the Turku City Council, Special Adviser of the Minister of Communication

• Matti K. Viljanen, Professor, Vice-Rector in University of Turku

Business-driven Board of Directorsfor Turku Science Park Ltd

11/04/23, 44

35 professors 260 scientists 2000 university students 2000 polytechnic students Graduate School 20 new PhDs per year

120 professors ~1000 scientists in ~80 groups 8000 university students 350 polytechnic students 8 Graduate Schools 80 new PhDs / MDs per year

Solid Scientific Base – Source of Innovations and Experts

11/04/23, 45

ICT Turku has a Solid Scientific Base

35 professors, 260 scientists, 2000 university students, 2000 polytechnic students, 20 new PhDs per year

Turku Center for Computer Science TUCS, Turku Polytechnic and Diaconia Polytechnic, Finland´s Future´s Research Center, Institute for Advanced Management Systems Research IAMSR, Crest…

Wide scope of testing and verification equipment and services through area university and polytechnic high-end laboratories available for both education, and active cooperation with the industry

11/04/23, 46

Personnel in ICT-companies (Luotain)

Established ICT-business is large in national comparisonTurnover of ICT-companies, m€ (Luotain)

0

1000

2000

3000

4000

5000

6000

7000

8000

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

Salo

Turku Region

0

2000

4000

6000

8000

10000

12000

14000

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

Salo

Turku Region

11/04/23, 47

The 2nd largest region in Finland in terms of ICT turnover Large stock of companies Growth rate of turnover has slowed down The share of services is growing Very few mid-sized companies A number of well-established companies: Nokia, Auria/TSF, TS

Group, Teleste, Finlux, TietoEnator, Aspocomp as well as new ”rising stars”, e.g. GoodMood, ImageTalk, Sanako

91 %

1 %3 %

4 %

1 %

< 10 '10 - 20 '20 - 50 '50 - 100 >100

Company size by personnel

Established ICT-business is large in national comparison

11/04/23, 48

Companies Aiming at International Success

Cable Networks, Video networks

Wireless handheld terminals

Virtual Learning

Webcasting

Language technology, ebooks

Process Improvement Solutions

CAD/CAM consulting and engineering

Mobile digital television (DVB-H)

Media (newspaper, TV, radio...)

11/04/23, 49

Incubation period (1-3 years)

Incubation Process

Pre-Incubation

Evaluation

Selection and finance decisions

Exit

11/04/23, 50

Results of the Business Incubation Process

Over 160 start ups 1989 – 2007

Success rate 85 - 90 %

Over 850 new jobs

Currently in the Incubator:• 10 bio companies• 15 ICT companies• 7 companies of other fields

11/04/23, 51

SparkNet – the Widest Wireless Local Area Network

in Finland

Over 2000 wireless access points 100.000 registrated users Free for university staff and students as well as city employees Test bed for new technologies and facilitator of cooperation

www.sparknet.fi

11/04/23, 52

FINLAND – LIFE AND SCIENCES

THANK YOU FOR YOUR ATTENTION

www.turkusciencepark.com