UNIVERSITY ROLE IN ICT-INNOVATION - SOME THOUGHTS Jyväskylä 20.03.2012 Prof., Dr. Tech, eMBA Pauli Kuosmanen CTO FINNISH INNOVATION SYSTEM SPAGHETTI INDEED Source: Evaluation of the Finnish National Innovation System FINNISH INNOVATION SYSTEM • Players Parliament SITRA VVM TEM OM EK LVM TIN Academy of Finland TT FinPro TEKES Company Company Company VTT University University University OSKE network University University EIT ICT Lab Polytechnic Polytechnic Polytechnic Polytechnic FVH TIEKE TIVIT Fimecc Cleen Company Forest Cluster RYM Company SalWe … TAF HERMIA DIMES Company FICOM Etc SOMEONE SHOULD SIMPLIFY THIS TIVIT 5 SHOK* NETWORK IN FINLAND 2011 • Finland is active in the national innovation system development and has established six SHOKs* for selected industry verticals to carry out industry driven research activities and to take care of the verticals’ competence development and renewal >>> SHOKS are Industry driven public private partnerships with contribution to the Finnish industrial innovation and growth Industry & Universities and research institutes Energy and environment (CLEEN) Built environment (RYM ) Forest cluster (FORESTCLUSTER ) Metal products and mechanical engineering (FIMECC) Information and communication industry and services (TIVIT ) Health and well-being SHOK in the area of ICT: -Private, non profit company -Established in 2008 -Owned by industry, universities and other active Finnish innovation network players (SALWE ) Shareholders & National funding *SHOK = CSTI: Center for Science, Technology and Innovation 6 MISSION • TIVIT creates ICT based business ecosystems to enable new global growth business for TIVIT’s owners and partners • Services include: – Cooperative national and international research programs to create new technological and business innovations – Facilitation of business concept creation to explore new business opportunities in Finland but aiming to global markets – Coordination of international research activities • Success factors: – Focusing on selected breakthrough opportunities, results and international markets – Continuous benchmarking and dynamic adjustment of activities – Fast flow of results from research to business utilization - based on the latest innovation theories and models inside programs • Core theme 2011…2015: – Enabling real time society 7 STRUCTURE • The complete SRA implementation can contain several elements SRA* Business concept Business concept Business concept Academy project Tekes funded program 60%/40% rule 75%/25% rule Academy project Project with China Project with USA Eureka project FP7 project Company project Company project Company project Company project Company project JTI project Research Applied research Product development *SRA = Strategic Research Agenda 8 COMPETENCE BENCHMARK FRAMEWORK R7 Global star R6 R5 R4 State of the art R3 R2 R1 Requirements: Challenger R1: Program conditions R2: Progress after first year R3: State of the art level reached in a wide sense R4: National business pilots and influence; Academy/EU projects R5: Global business initiatives; Global standardization influence R6: Global business born; Global research influence widely recognized R7: Recognized global star competence 9 TIVIT PROGRAM PORTFOLIO 2012 Content value net Next Media Co-creativity Service value net Services program Web of services Network value net Internet of Things Internet everywhere Data value net From Data to Intelligence Acting on data SW value net Cloud Software Web SW & productivity Device and Interoperability Bridging realities HW value net = ramp up/down in 201210 SRA PORTFOLIO Future Internet 5,9 Flexible Services Device and Interoperability Cooperative Traffic 16,7 5,0 13,8 10,4 13,1 11,8 2 7,8 3,5 Cloud SW 16,3 18,2 14 Next Media 6,8 9,0 9 Data to Intelligence 8 Internet of Things 12 Services 4 Parallax??? Annual volume ~ / M€ 2009 2010 2011 2012 28,6 53,2 45,5 49 11 PERFORMANCE AND SERVICES • TIVIT development: financial performance and services 2 500 000 2 000 000 1 500 000 Revenue Other income 1 000 000 Tekes ramp up Result 500 000 0 2008 2009 2010 e2011 b2012 -500 000 Research 2008 16/02/2012 2009 2010 CONFIDENTIAL 2011 2012 12 FINNISH ICT “COMPETENCE BUILDING” 2009 Telecom Computational Business Basic competences 13 Physical business Digital business SPEED OF DIGITAL BUSINESS R&D Production Logistics ICT ICT ICT Distribution ICT Computers have been used to help and to increase the productivity in the physical business Customer service ICT Maintenance ICT From operating systems Digital/Data value chain New paradigm: 1) Design first the digital business, 2)Build necessary physical elements to service systems and services Digital business: R&D phase > run the global service in the cloud Global coverage for millions over night, expense depends on the real usage 17.11.2010 14 ICT TRANSITION - PAST 1980…2007 Global star : Nokia Nokia driven mobile business ecosystem State of the art R7 R6 R5 R4 R3 R2 R1 Telecom and mobile communication competences and business 26.5.2010 Challenger . . . 1992: Nokia’s first GSM handset Nokia launches its first GSM handset, the Nokia 1011. 1991: GSM – a new mobile standard opens up Nokia equipment is used to make the world’s first GSM call. 1987: Mobira Cityman – birth of a classic Nokia launches the Mobira Cityman, the first handheld NMT phone. 1984: Mobira Talkman launched Nokia launches the Mobira Talkman portable phone. 1982: Nokia makes its first digital telephone switch The Nokia DX200, the company’s first digital telephone switch, goes into operation. 1981: The mobile era begins Nordic Mobile Telephone (NMT), the first international mobile phone network, is built. Source and see more in: Story of Nokia 15 ICT TRANSITION – NEW VISION AND STATUS Digital services businesses Nokia 1 State of the art Challenger Telecom including mobile communication competences and business Computational including cloud computing and big data competences and business 1. Competence building transition is done! 2. Accelerate business growth based on new competences THE NEW FINNISH GROWTH – VISION SUMMARY Tivit programs Goal Business focus and growth Next Media Service program Future Internet / IoT From Data to Intelligence ICT leadership Cloud Software Device and Interoperability Data intensive digital services & ICT Enabling the transformation of other industry verticals UNIVERSITIES 20.3.2012 18 UNIVERSITIES • Very important actors in the new knowledge economy, as they are sources of – – – – – knowledge capital undertaking research educating skilled workers, and providing consultancy services in support of innovation significant contributors in regional development 19 UNIVERSITY/BUSINESS INTERACTIONS 20.3.2012 20 UNIVERSITY/BUSINESS INTERACTIONS From transactions to relationships • Strategic commitment • Collaborative culture 21 UNIVERSITIES AND SMEs • SMEs – – – – – Too small Too little IT investiments Too little R&D sharing Too few IT skills Heavy reliance on external resources for solving their innovation problems • Wide range: from D&I processes into customer management issues SME support bucket? Innovaatimarkkinapaikka 2.0 22 INTERNATIONALIZATION • Universities have played a key role in this • Keep on this! • How to gain new territory with the developing countries? 23 ENABLING PARADIGM TRANSITIONS • What is th next transition • Universities should prepare Finland for these 24 EVANGELIZE THE TRANSFORMATION! Kauppalehti 18.10.2010 25 MAKE MINISTERS TO UNDERSTAND • Krista Kiuru (Viestintäfoorumi, February 2012) – Key quote: “Suomen kansantalous teki 90-luvun laman jälkeen valtavan tuottavuushypyn perinteisen ICT-teollisuuden nousun avulla. Vastaava hyppy on tehtävä jälleen, on siirryttävä seuraavalle tasolle. Tämä hyppy tarkoittaa rakentamista syntyneen ICT-infrastruktuurin päälle. Se tarkoittaa vahvaa panostamista digitaalisten palveluiden tuotantoon ja niiden huomattavasti nykyistä laajamittaisempaan käyttöön.” 26 TIVIT RELATED QUESTIONS TO YOU 20.3.2012 27 COMPETENCE BENCHMARK FRAMEWORK R7 Global star R6 R5 R4 State of the art R3 R2 R1 Requirements: Challenger R1: Program conditions R2: Progress after first year R3: State of the art level reached in a wide sense R4: National business pilots and influence; Academy/EU projects R5: Global business initiatives; Global standardization influence R6: Global business born; Global research influence widely recognized R7: Recognized global star competence Shoud this be moved to earlier milestones? 28 MORE RESEARCH ORIENTED SRA? • Could try somehing like this 1. Write SRA – Universities in charge – Longer time-span 2. Implement it – With smaller projects • Sharing information between them inside a bigger pool of all SRA projects (tools need to be created for this) • Tivit label (and fee) is needed for this – Academy of Finland, Tekes, EU funding – SRA level Steering Board 3. When topic matures, make decision about possible ”normal Tivit SRA” Perhaps old SRA name should be changed into SIA (Strategic Innovation Agenda) 29 NEW POSSIBLE STRUCTURE SRA* Academy project Academy project Academy project Academy project Ecosystem concept Ecosystem concept Ecosystem concept Academy project Horizon 2020 project Horizon 2020 project Research Business concept Business concept Business concept Company project Company project Company project Company project Company project Project with China Project with USA Horizon 2020 project Applied research Product development *SRA = Strategic Research Agenda 30 SUMMARY 20.3.2012 31 ICT DEVELOPMENT SUMMARY I CT CT 32 SUMMARY • With changing contexts of knowledge production, the old division between pure research (universities) and applied R&D (industry) has given way to new forms of partnerships and collaboration • And new forms will be constantly generated • We should make those in power to understand the change • Only agile ones will survive