The Impact of National Innovation System on Entrepreneurial Venture Creation Process

The important role of entrepreneurship in countries’ economic development and overall society well-being is widely recognized by researchers, experts as well as policy makers. Every phase of the process of starting a new business is related to the interaction with at least one player of country innovation system and therefore the efficiency of this interaction may have an influence on the success of whole entrepreneurial process and consequently on the willingness of potential entrepreneurs to engage into this process. The study proposes a System Dynamics model for studying the impact of National Innovation System (NIS) on the entrepreneurial venture creation process. The developed model also takes country population aspect into account and provides results for estimation the effect various demographic tendencies on the process performance. The special impact is made on possible ways to facilitate the development of entrepreneurial framework conditions. Business incubators are seen as one of the effective tool for accomplishing such task. The study also provides the result for estimation of possible impact arising from properly functioned Business Incubators.

The Russian National Innovation System - an International Perspective

Russia inherited a large research and development (R&D) sector from the Soviet times, and has retained a substantial R&D sector today, compared with other emerging economies. However, Russia is falling behind in all indicators measuring innovative output in comparison with most developed countries. Russia’s innovation performance is disappointing, despite the available stock of human capital and overall investment in R&D. The communist legacy still influences the main actors of the innovation system. The federal state is still the most important funding source for R&D. Private companies are not investing in innovative activities, preferring to “import” innovations embedded in foreign technologies. Universities are outsiders in the innovation system, only a few universities carry out research activities. Nowadays, Russia is a resource-depended country. The economy depends on energy and metals for growth. The Russian economy faces the challenge of diversification and should embrace innovation, and shift to a knowledge economy to remain competitive in the long run. Therefore, Russia has to tackle the challenge of developing an efficient innovation system with its huge potential in science expertise and engineering know-how.

Governmental Measures to Enhance the Finnish Innovation System to Respond to the Challenge of Mitigating Climate Change

Climate innovations, that cover both technological applications and process and service innovations, play a key role in climate change mitigation. The purpose of this study was to examine how the Finnish innovation system could be enhanced with governmental measures so that the diffusion of climate innovations could be speeded up. During the study, it became evident that the governmental measures need to support the whole innovation chain, which comprises of research, development, demonstration and deployment. Only this can lead to the successful birth and diffusion of low carbon innovations. The study found that the strengths of the Finnish innovation system are research and development, and the current national innovation policies strongly support these activities. However, these have been emphasised at the expense of the demonstration and deployment. Consequently, the biggest bottlenecks in the Finnish innovation landscape are the lack of pilot and demonstration projects and slow commercialisation, thus the high price of the innovation. To meet with the challenge, the government should firstly promote strict greenhouse gas emission reduction targets. This would boost up the innovation activities, which would also lower the prices of the innovations. To speed up the commercialisation process, measures that stimulate the domestic market, such as feed-in-tariffs and public procurements, are needed. Special attention should also be paid to the measures that could shift the traditional closed innovation chain towards open innovation. This means that the product development should involve experts from several fields such as the user and marketing experts to speed up the commercialisation. In addition, efficient innovation co-operation between both private and public sector is essential. Finally, as the domestic resources are not adequate for producing all the innovations needed, the domestic innovation activities should be focused on a few sectors, and at the same time promote efficient import policies.

Study on measuring Systems of Innovation on National level- case Finland

Innovation improves human affluence and comfort and is key driver of nation’s economic progression. This study focuses on National innovation systems in general and Finnish national innovation system in particular. It is known that innovation process does not work in isolation; rather it is an outcome of role played numerous actors. In this study three aspects are explained- firstly, to define the most important actors of National innovation systems and secondly, a framework to analyze National innovation system. Third aspect of this study highlights and analyzes the key aspects of Finnish National Innovation system. Moreover, during the course of this study emphasis was given on the utmost central processes which are required to come off in innovation system as they can successfully lead towards innovation.

Influence of Institutional Environment on Companies’ Innovation Activity

At the time of moving towards knowledge-based economy, countries pay much attention to innovations by making them a central issue in countries’ innovation policy development. Innovations are influenced much by the institutional environment, in which they are created. That is why exploration of National Innovation Systems, as an important part of such an environment, became central in works of different researchers all over the world.

The effectiveness of financial innovation support tools. Comparative study of Latvia and Finland

In the Innovation Union Scoreboard of 2011, Latvia ranked last amongst the EU countries in innovation performance. Even though there is sufficient scientific and technological basis, the results remain modest or low in most of the indicators concerning innovations. Several aspects influence the performance a national innovation system. In Latvia, the low effectiveness is often attributed to lack of financial support tools. As a comparison, Finland was chosen because of its well-established and documented innovation system. The aim of this study is to research the efficiency and effectiveness of the current financial innovation support tool system in Latvia from the point of view of an innovating company. It also attempts to analyze the support tool system of Latvia and compare to the relevant parts of the Finnish system. The study found that it is problematic for innovative companies in Latvia to receive the necessary funding especially for start-ups and SMEs due to the low number of grant programs, funds and lacking offer from banks, venture capital and business angels. To improve the situation, the Latvian government should restructure the funding mechanisms putting a bigger emphasis on innovative start-ups and SMEs. That would lay a foundation for future growth and boost research and scientific activities in Latvia.

The Role of Universities in the Triple Helix model of innovation management within the biotechnology industry, Case example: Turku Science Park Network

Biotechnology has been recognized as the key strategic technology for industrial growth. The industry is heavily dependent on basic research. Finland continues to rank in the top 10 of Europe's most innovative countries in terms of tax-policy, education system, infrastructure and the number of patents issued. Regardless of the excellent statistical results, the output of this innovativeness is below acceptable. Research on the issues hindering the output creation has already been done and the identifiable weaknesses in the Finland's National Innovation system are the non-existent growth of entrepreneurship and the missing internationalization. Finland is proven to have all the enablers of the innovation policy tools, but is lacking the incentives and rewards to push the enablers, such as knowledge and human capital, forward. Science Parks are the biggest operator in research institutes in the Finnish Science and Technology system. They exist with the purpose of speeding up the commercialization process of biotechnology innovations which usually include technological uncertainty, technical inexperience, business inexperience and high technology cost. Innovation management only internally is a rather historic approach, current trend drives towards open innovation model with strong triple helix linkages. The evident problems in the innovation management within the biotechnology industry are examined through a case study approach including analysis of the semi-structured interviews which included biotechnology and business expertise from Turku School of Economics. The results from the interviews supported the theoretical implications as well as conclusions derived from the pilot survey, which focused on the companies inside Turku Science Park network. One major issue that the Finland's National innovation system is struggling with is the fact that it is technology driven, not business pulled. Another problem is the university evaluation scale which focuses more on number of graduates and short-term factors, when it should put more emphasis on the cooperation success in the long-term, such as the triple helix connections with interaction and knowledge distribution. The results of this thesis indicated that there is indeed requirement for some structural changes in the Finland's National innovation system and innovation policy in order to generate successful biotechnology companies and innovation output. There is lack of joint output and scales of success, lack of people with experience, lack of language skills, lack of business knowledge and lack of growth companies.

Adaptability, Transformation and Complex Changes in Namibia and Tanzania: Resilience and Innovation System Development in Local Communities

This thesis is a research about the recent complex spatial changes in Namibia and Tanzania and local communities’ capacity to cope with, adapt to and transform the unpredictability engaged to these processes. I scrutinise the concept of resilience and its potential application to explaining the development of local communities in Southern Africa when facing various social, economic and environmental changes. My research is based on three distinct but overlapping research questions: what are the main spatial changes and their impact on the study areas in Namibia and Tanzania? What are the adaptation, transformation and resilience processes of the studied local communities in Namibia and Tanzania? How are innovation systems developed, and what is their impact on the resilience of the studied local communities in Namibia and Tanzania? I use four ethnographic case studies concerning environmental change, global tourism and innovation system development in Namibia and Tanzania, as well as mixed-methodological approaches, to study these issues. The results of my empirical investigation demonstrate that the spatial changes in the localities within Namibia and Tanzania are unique, loose assemblages, a result of the complex, multisided, relational and evolutional development of human and non-human elements that do not necessarily have linear causalities. Several changes co-exist and are interconnected though uncertain and unstructured and, together with the multiple stressors related to poverty, have made communities more vulnerable to different changes. The communities’ adaptation and transformation measures have been mostly reactive, based on contingency and post hoc learning. Despite various anticipation techniques, coping measures, adaptive learning and self-organisation processes occurring in the localities, the local communities are constrained by their uneven power relationships within the larger assemblages. Thus, communities’ own opportunities to increase their resilience are limited without changing the relations in these multiform entities. Therefore, larger cooperation models are needed, like an innovation system, based on the interactions of different actors to foster cooperation, which require collaboration among and input from a diverse set of stakeholders to combine different sources of knowledge, innovation and learning. Accordingly, both Namibia and Tanzania are developing an innovation system as their key policy to foster transformation towards knowledge-based societies. Finally, the development of an innovation system needs novel bottom-up approaches to increase the resilience of local communities and embed it into local communities. Therefore, innovation policies in Namibia have emphasised the role of indigenous knowledge, and Tanzania has established the Living Lab network.

The state of research and development in Australia: implications for future development

The scale of research and development (R&D), and other technological activities, and the way in which the available resources are managed and organized at the enterprise and national level contribute to the rate of technological change in a country. A well organized national innovation system can be a powerful engine of progress, whereas a lack of interaction between institutions results in the slowing down of technological change, thereby diminishing its contribution to economic growth and welfare. The research object of this thesis is Australia’s national innovation system and the state of R&D in Australia. In order to establish an overall picture of the situation and to be able to make recommendations for future development, the general level of R&D activity and the main performers and funders of R&D within the system are analyzed. The framework policies supporting R&D and prevalent dynamics between different actors and sectors are of specific interest of the research. The findings reveal that the Australian culture is not a culture of research and innovation and that the main challenge is building a coherent system with strong domestic and international linkages.

Commercializing technology in transitional economies. Case: Nanotechnology in Russia

The aim of the study is to find out “What are the challenges to overcome for the successful nanotechnology commercialization in Russia?” Working closely with the case country was definitely an advantage when it comes to the understanding of the research subject. The thesis is divided to two parts: first part examines the concept of technology commercialization and identifies unique aspects of the process in context of nanotechnology. Second part is dedicated to an empirical research, investigating current status of nanotechnology commercialization in Russia. For the purpose of this study, Russian and international scientists, researchers, entrepreneurs, industry and government representatives were interviewed systematically during 2007 – 2009. Based on the research done it can be concluded that immense public funding provides necessary support for the development of Russian nanotechnology industry. However, investments alone do not address important structural shortcomings of a national innovation system, which in turn slow down the progress. Taking into consideration gap between science and business and challenging IPR legislation, expected significant economic impact in Russia may be overestimated. Nevertheless it should be noted that development of nanotechnology is advancing rapidly and therefore, the state of commercialization is changing accordingly, even while this lines are written.

Ekologinen kestävyys Suomen innovaatiojärjestelmässä

Tämän diplomityön tavoitteena on tutkia ekologisen kestävyyden huomioimista Suomen innovaatiojärjestelmässä. Ekologinen kestävyys on osa laajempaa kestävän kehityksen käsitettä, joka syntyi jo 1980-luvun lopulla. Sillä viitataan toimintaan, joka jättää mahdollisuuksia tuleville sukupolville yhtä paljon tai enemmän kuin nykyään on käytettävissä. Kestävyyteen pyritään nykyisin laajalti ja sen toteutumisen turvaamiseksi on laadittu muun muassa EU-maat, Pohjoismaat ja Suomen kattavat strategiat. Ekologisen kestävyyden suurimmat uhat ovat tällä hetkellä ilmastonmuutos, biodiversiteetin pieneneminen ja ravinteiden kierto. Kestävä innovointi ja ympäristöinnovaatiot ovat tärkeitä keinoja ekologiseen kestävyyteen panostettaessa. Näissä innovaatioissa kyse on teknologian, talouden ja ympäristön tasapainosta. Suomen innovaatiotoimintaa tuetaan ja kansallista kilpailukykyä pidetään yllä kansallisen innovaatiojärjestelmän avulla. Suomen innovaatiojärjestelmässä on useita eri tason toimijoita. Tärkeimpinä voidaan pitää päättäjiä, rahoittajia ja tutkimuksen tuottajia. Rahoituksen suuntaaminen vaikuttaa siihen, mistä aihealueista tutkimusta tuotetaan. Suomen Akatemialla, Tekesillä ja Sitralla on ekologista kestävyyttä edistäviä ohjelmia. Lisäksi mm. SHOK:issa on huomioitu ekologisuus. Perustutkimusta rahoitetaan Suomen innovaatiojärjestelmässä huomattavasti soveltavaa tutkimusta vähemmän. Ekologiseen kestävyyteen panostavan tutkimuksen teemoista nousee selkeimmin esiin kestävä energiantuotanto sekä kestävä rakentaminen. Jatkotutkimuksena voisi selvittää, kuinka nämä panostukset ovat vaikuttaneet suomalaiseen rakennusalaan.

Key factors in U.S. Government support of business internationalization in Finland Case: U.S. Embassy in Helsinki

This study discusses the importance of government intervention for companies and the expansion of national innovation systems. The purpose of the study is to examine the impact which the U.S. Embassy in Helsinki can have on Finnish businesses through their business support programs and events. The embassy has shifted focus in recent years with the creation of an innovation center and increased business services. The study has sub-objectives to discover the critical factors for producing impact, host and home based factor interaction, and effects produced by these initiatives. The theoretical background of the study consists of literature relating to the concepts of national innovation systems and government intervention. The empirical research conduct for this study is based on interviews with experts from the environment surrounding the U.S. Embassy in Helsinki, Finland and participation in embassy events. The data was collected between March 2014 and September 2015. Seven interviews were conducted; five with representatives of the U.S. Embassy and two with related organizations. Thematic analysis was used to categorize and interpret interview and observation data. The use of an impact radar was implemented as a basis for analysis. This study finds that the internationalization of national innovation systems provides interesting opportunities and challenges for national governments. The opportunity to provide services to foreign companies by an embassy in a stable environment opens the possibility to create positive notice and relations with the host country. The increased connections and inputs to the national innovation system of the home country have the potential to increase knowledge absorption and create positive growth. The most effective way for governments to encourage businesses is to create incentives and reduce barriers. The services are best aimed at small to medium sized companies in the early stages of development. The findings of this report suggest that the most critical factors for producing impact on companies are the ability to disseminate information effectively, the ability to create a positive image of the country, the ability to foster effective networks between the two countries, and the ability to facilitate the internationalization of companies. In the best cases, the embassy is able to create incentives to internationalize to the United States and reduce barriers which are encountered by companies. Future research is necessary to fully understand the impact of business services provided by an embassy can have on the political and economic relations of countries, and on particular industry sectors. The institutional setting provided by the embassy’s focus on business relations provides a rich environment for further study in a number of areas.

Innovation Process Management and System Modelling

Työn tavoitteena oli perehtyä innovaatiojohtamisen ja järjestelmän soveltamiseen prosessiteollisuuden toimintaympäristöön. Kirjallisuuslähteitä apuna käyttäen perehdyttiin liiketoimintaympäristön innovaatiojohtamiselle asettamiin vaatimuksiin ja erilaisiin innovaatiojärjestelmiin. Olennaisena osana innovaatiojohtamiseen liittyy sidosryhmien tarpeiden ja niiden tarjoamien resurssien huomioiminen toiminnassa. Myöskin tuotekehityksen menetelmät ja työkalut ovat omalta osaltaan merkittävässä asemassa toiminnan tehokkuutta arvioitaessa. Innovaatiojärjestelmä tulee sopeuttaa yrityksen toimintoihin ja sen erityispiirteet huomioonottaen siten, että toiminnan johtaminen prosessina tuo yritykselle ja sen sidosryhmille lisäarvoa. Innovaatiojärjestelmän luominen yritykselle on ainayksilöllinen prosessi ja siihen ei ole olemassa yleispätevää menetelmää, joka voitaisiin ottaa käyttöön sellaisenaan. Yritys, jonka liiketoiminta keskittyy kuitupohjaisten pakkausmateriaalien valmistamiseen, joutuu täyttämään toiminnassaan materiaalintoimittajien, omien tuotantoprosessiensa ja asiakkaiden sekä jopa loppukäyttäjien uusille tuotteille luomat odotukset. Innovaatiojohtamista sävyttää toiminnan tulosten suuri epävarmuus ja sen vaativien aineellisten ja henkisten resurssien mittavuus. Innovaatiotoiminnan johtaminen prosessina, käyttäen hyväksi järjestelmämallia, tavoittelee systemaattista ja asetettujen kriteerien täyttämää lähestymistapaa tuotekehityksen ja uusien liiketoimintainnovaatioiden alueella. Kehitetyn mallin tulee palvella monimutkaista liiketoimintaympäristöä, jokatoisaalta perustuu tehokkaaseen massatuotantoon ja toisaalta pyrkii erilaistumaan palvelemalla sekä huomioimalla asiakkaidensa tuotteille asettamat vaatimukset.

Ranking Regional Innovation Policies: DEA-based Benchmarking in an European Setting

Seudullinen innovaatio on monimutkainen ilmiö, joka usein sijaitsee paikallisten toimijoiden keskinäisen vuorovaikutuksen kentässä. Täten sitä on perinteisesti pidetty vaikeasti mitattavana ilmiönä. Työssä sovellettiin Data Envelopment Analysis menetelmää, joka on osoittautunut aiemmin menestyksekkääksi tapauksissa, joissa mitattavien syötteiden ja tuotteiden väliset suhteet eivät ole olleet ilmeisiä. Työssä luotiin konseptuaalinen malli seudullisen innovaation syötteistä ja tuotteista, jonka perusteella valittiin 12 tilastollisen muuttujan mittaristo. Käyttäen Eurostat:ia datalähteenä, lähdedata kahdeksaan muuttujsta saatiin seudullisella tasolla, sekä mittaristoa täydennettiin yhdellä kansallisella muuttujalla. Arviointi suoritettiin lopulta 45 eurooppalaiselle seudulle. Tutkimuksen painopiste oli arvioida DEA-menetelmän soveltuvuutta innovaatiojärjestelmän mittaamiseen, sillä menetelmää ei ole aiemmin sovellettu vastaavassa tapauksessa. Ensimmäiset tulokset osoittivat ylipäätään liiallisen korkeita tehokkuuslukuja. Korjaustoimenpiteitä erottelutarkkuuden parantamiseksi esiteltiin ja sovellettiin, jonka jälkeen saatiin realistisempia tuloksia ja ranking-lista arvioitavista seuduista. DEA-menetelmän todettiin olevan tehokas ja kiinnostava työkalu arviointikäytäntöjen ja innovaatiopolitiikan kehittämiseen, sikäli kun datan saatavuusongelmat saadaan ratkaistua sekä itse mallia tarkennettua.