The new strategy will help the country to progress "from words to deeds," said Petri Peltonen, responsible for Finland's technology and innovation policy and implementation, presenteing a proposal for National Innovation Strategy on 24 June in Brussels.
"This is no rocket-science," said Peltonen, adding that the strategy just reflects "the most recent and relevant innovation policies and policy research developments: the role of open innovation, users and market".
A broad definition of innovation
The novelty of the final proposal lies in "the wide definition of innovation," which includes not only science and technology, but also "many non-scientific and non-technological features," explained Peltonen. "Being able to develop both at same level of resources and seriousness is probably something new Finland is doing," he said, listing design, branding, business concepts and innovation in management, production, workplace and services as examples of "the soft side of innovation".
A user-oriented strategy
Another novelty is the role of users and the clear market orientation of the proposal. Peltonen said this is now being taken "seriously" and it is evident that the user and market orientation "call for change in national policies and in particular in the way policies are implemented in different organisations".
In fact, the strategy proposal can, to some extent, be seen as a national implementation plan of the 2006 Aho report on creating an innovative Europe, which urged creation of an innovation-friendly markets in which businesses can launch new products and services. Following that report, the Commission launched an initiative aiming to create EU-wide lead markets (LMI) on sectors such as eHealth or renewable energy.
"Size of the market is not finally important," said Esko Aho, noting that five million people [the size of Finnish population] was enough for creating market-oriented innovation, while some sectors, such as transport and logistics, would need an EU-wide dimension.
Money not an object
Aho also emphasised that "the cheapest solution is not innovative, because cheapest solution is based on current technologies".
"We need to dare to change if necessary and understand future customer needs before the customers themselves," agreed the executive director of the Finnish funding agency for technology and innovation (Tekes), Riikka Heikinheimo. In addition, "more the policy instruments are market oriented, more they will be appreciated in global competition," noted Mikko Alkio, state secretary to the Minister of Economic Affairs.
The overall strategy consists of four main blocks. These are international dimension of innovation, demand and user orientation of innovation, supporting innovative individuals and communities and broad management of change.
Bold tax plans
"We have bold proposals," some of which, such as taxation, are politically sensitive, acknowledged Peltonen. To boost entrepreneurship, "there are clear recommendations" for tax incentives for private investors investing in risky businesses and for attracting qualified people from abroad with lower tax rates than they would normally see in Finland".
In addition, up to €1 million of public money can be invested in a growth company through a new European young innovative company fund, which is "something reasonably radical in Finland".
The Finnish Government will take a decision on the proposal in August after which it will be passed to the Parliament for discussion. The evaluation of all organisations involved in innovation will be conducted between August 2008 and March 2008 to determine the necessary changes for implementing the new policy.
The director of innovation policy at the Commission's DG Enterprise and Industry, Jean-Noël Durvy, said he was "impressed" by the policy and qualified the proposal as "an ambitious paper".
To read a full interview with Petri Peltonen, please click here.
