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  • Finland 'niet goed genoeg'

    - Finland heeft zijn rapport van zijn ‘Commissie-Veerman’ inmiddels binnen. Kennis en innovatie zijn “goed, maar niet goed genoeg.” Daarom zijn losse maatregelen niet afdoende. Samenhangende, ingrijpende vernieuwing moet doorgevoerd. Zwaar accent wordt gelegd op de hbo-sector en de versterking van de eigen aard daarvan, met helder verschil in missie bij de universiteiten.

    De excutive summary van het rapport leest u hier.

    Even if the current state of the Finnish innovation system is good, it is not enough: While some of the panel's proposals are laborious to implement, they are indeed needed to meet Finland's future challenges. The survey conducted to support the evaluation reveals that the actors of the Finnish innovation system are optimistic about its future. They are ready for, and even demand, major changes.

    Premises

    Both the new innovation strategy (Aho et al., 2008) and the subsequent Government's Communication to the Parliament (henceforth the two are collectively referred to as the Strategy) call for a broad-based and systemic approach as well as demand- and user-orientation in innovation policy. The Strategy highlights the increasing role of information and knowledge in the society as well as stresses the urgency in addressing the challenges induced by globalization. The Strategy's basic choices constitute the premises of this evaluation.

    The Strategy warns against partial solutions in developing the system. It rather calls for comprehensive renewal and structural development requiring strategic management within the public administration. It notes that individual and separate policy measures will not suffice.

    Reflections on the Strategy

    The Strategy defines productivity improvement as the main objective, implying a balanced consideration of
    • Developments within existing units,
    • Re-allocation between existing units,
    Entry of new units, and
    Exit of old units.

    The last three re-allocative elements have previously been waved aside. Second, the emphasis is on pioneering, which suggests less (innovation policy) concern for individuals and organizations that are not (seeking to be) at the global frontier. The panel welcomes the ambitions of the Strategy but challenges some of its key measures. Overall the panel finds the Strategy vague, leaving room for misinterpretation.

    The panel calls for caution on several accounts: broad-based innovation policy can indeed be too broad. Demand and user orientation should be interpreted as impartiality as to the source, type, and application domain of innovation, not as a shift to the other extreme from the current technology and supply-side emphasis. Analysis reveals that the Finnish system is less international than conventionally thought and that there are signs that it is falling further behind; current ways of addressing the issue are clearly not working.

    The Finnish innovation system lacks explicit cross-ministerial decision making and execution. The panel hesitates with the Strategy's proposal to extend the Cabinet Committee on Economic Policy to include innovation matters, even though it is in line with the panel's proposal that the Ministry of Finance and the Ministry of Employment and the Economy should assume a joint responsibility for the enterprise-side of innovation (and growth) policy. A broader and stronger Research and Innovation Council is seen as an alternative for renewing the Cabinet Committee.

    A call for a systemic renewal

    One consequence of weak coordination within the system is that occasionally several organizations go after the same societal problem (e.g., lacking growth entrepreneurship) with similar tools, which leads to wasteful replication and adds to institutional clutter. Current (public) aspects of the system are an outcome of an evolution of several decades. The system has grown complex to both access and administer. Thus, the evaluation calls for a reform of the current research and innovation system, including its rationales and goals as well as its organizations and instruments.

    The provided outline should not be taken as a blueprint or an organization chart but rather as a guiding principle. It is nevertheless the case that the desired outcome cannot be reached without touching existing organizational boundaries. Taken individually, most new policy measures are consistent with the Strategy. Taken jointly, they appear piecemeal solutions the Strategy warns against. The panel calls for prescreening of new actions in order to prevent duplication and overlaps.

    Several sub-panels touch upon the issue of using tax incentives and on the role of the Ministry of Finance more generally, which in innovation policy has been tolerating but remote. The panel urges for consideration of all possible innovation policy tools: Knowledge and human capital as well as enablers of innovative activity are important, but incentives and ample rewards on success in risky endeavors are needed as well.

    Since the 1980s Finland has been in transition from an investment-driven catching-up country towards an innovation-driven and knowledge-based frontier economy. With this transition the locus of Finnish innovation policy has to change towards more experimentation, risk-taking, and acceptance of failure. Innovation policy should mostly be concerned with the coming up with, and employment of, truly novel ideas (new-to-the-world and radical/disruptive innovations) with considerable societal significance.

    Due to changes in operating environment (e.g. globalization), logic of innovation (e.g., democratization), and internal developments in Finland (e.g., reaching the frontier), the work of all six sub-panels points towards shifting innovation policy emphasis from established incumbent companies and other organizations towards individuals and their incentives.

    Reforms

    The panel takes a strong stance for the university reform and encourages it to go further than what is currently being suggested. The panel calls for a continuation of the higher education reform:

    - Polytechnics are important actors in the system with their strong regional and applied role and emphasis on bachelor-level education. In the course of the 2000s, however, there seems to be an increasing  tendency to make them more like nationally- and globally orientated research universities. In the panel's view this does not serve the interests of the system. There should be a clear division of labor between universities and polytechnics.

    -The panel is cautiously optimistic about the national Strategic Centres for Science, Technology and Innovations (SHOKs) but suggests limiting public resources devoted to them. In the panel's view SHOKs are mostly about incrementally renewing larger incumbent companies in traditional industries.

    -The true reform of sectoral research (public research organizations, PROs) remains in gridlock. Even if the PROs make a worthy so cietal contribution as well as provide quality research and services, the panel believes that they have considerable upside potential that could be unleashed. The panel recommends moving their academically-orientated research to universities and organizing the remaining tasks into 4-5 units in accordance with larger societal needs (as opposed to the ministries' administrative boundaries).

    -A long-term binding action plan is needed to implement the reform. The panel calls for a clarification and coordination of national, regional, and local innovation policies as well as their links to other (non-innovation) policies. Local and regional actors have grown important also in innovation policy matters. They have, e.g., assumed similar tasks as TECentres.

    Currently national innovation support has an 'unspoken' regional bias. Primarily through the previously ignored re-allocative elements, national direct support for private innovative activity may have a negative overall impact in the relatively disadvantaged regions.

    While direct cost is not very large, the total cost becomes considerable in terms of hampered regional development and foregone growth. The panel's proposal is to make the system transparent and not to make regional imbalances a concern for national direct support of private innovative activity.

    Final remark

    The Finnish system is at a crossroads due to both internal and external factors. Innovation (policy) is in turmoil worldwide. While Finland is quite well-positioned to meet future challenges, there is a unique opportunity for further reforms. Furthermore, both structural challenges and the financial crisis bring about a sense of urgency that should not be wasted.