Organizational failure is one of the new challenges of innovation policy, which includes the ability to build networks.6 Networks are “an important component of national systems of innovation. An important function of science and techno-logy policy is to strengthen existing innovation-related networks and to help build networks in areas where they are lacking.” (oeCD, 1992, 79.)
Schienstock and Hämäläinen (2001) state that “network-facilitating policies”
must overcome:
a. a “lack of information about the potential benefits of network cooperation in organisations (information problem);
b. difficulty of implementing systemic change in organisations and networks (perhaps due to lack of shared understanding, trust and vision);
c. uncertainty about the ability to reap the benefits of human capital invest-ments (required complementary resources); and
d. structural, institutional and mental rigidities in the organisational environ-ment (systemic failures).” (sChienstoCk – häMäläinen, 2001, 192.) They highlight that the government of Finland was able to cope with awareness creation (with publications, seminars and the Internet); partner searching; building shared understanding and trust; organizing networks; and developing comple-mentary resources at that time.7 (sChienstoCk – häMäläinen, 2001, 190-193.)
6 Organizational failure: “Firms may be unable to transform their internal organisations and stick to the old Fordist production model instead of turning themselves into learning organisations” and “firms are not always able to build social capital, form networks and other cooperative relationships without external help.”
7 At that time highlighted problems were the following: “need for more well-trained researchers and
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The public sector also sought to build up a “digital government” and “strategic agility”, the latter refers to “the degree to which high-level, whole-of-government policy-debating and decision-making fora enable the government to identify correctly emerging strategic or “hot” priorities, and make decisions on how best to shift and reallocate human, financial and institutional resources quickly to address them.” (OECD, 2015,13)
The following is a brief overview of the supporting actors. These organizations can be separated into three categories:
a. “those responsible for setting policy and strategy;
b. those responsible for providing funding and support (“enablers”);
c. research and education institutions.” (halMe, et al., 2014, 38.)
One can find different “platforms” too “for facilitating the collaboration of various actors.” (halMe, et al., 2014, 38.)
Figure 4 shows the organizations which operate within Finland’s national inno-vation system.
Figure 4.
Finland’s R&I System
(Source: Based on SAARNIVAARA –HALME – MITCHELL, 2018, 9., own edition) The Research and Innovation Council (RIC) is responsible for the Finnish inno-vation system as a whole from a strategic and policy perspective and for the science and technology policy of the country. “It is both a classical coordinating and advisory body, and a strategy-shaping multi-stakeholder institution, where
consultants in Finland who can effectively facilitate inter-organisational networking (…) need for inc-reasing cooperation among network policy makers in different ministries and public agencies in order to spread the best practices and foster mutual learning.” (SCHIENSTOCK – HÄMÄLÄINEN, 2001, 193.)
Innovation performance in Finland
political decision makers, administrators, academics and industrial experts jointly design and formulate major development lines and actions for national STI policy.”
(sChwaag-seRgeR – wise – aRnolD, 2015, 43.)
Its members are the prime minister (chair), all key ministers and represent-atives of relevant actors. It was revised in 2016, and in 2017 the RIC adopted its vision and roadmap, and defined its strategy to achieve them based on govern-ment programs.
Its goal is to make Finland the most attractive and competent environment for innovation by 2030. It believes that the driver of the ecosystem is coopera-tion between research and industry. It points out the importance of cooperacoopera-tion between higher education institutions, research institutes and the business sector.
Its vision has the following four main components: “a) ensuring the com-petence base, b) the development of platforms for comcom-petence and growth, 3) internationalisation as a perquisite for quality and impact, and 4) clear processes for strategic decision-making.” (halMe, et al., 2014, 13.)
To help with high-level decision-making, the Finnish Innovation Fund (Sintra) has been set up as an independent public foundation, or think tank, reporting directly to the Finnish parliament. According to its external evaluation in 2017
“Sitra’s work is praised especially in the fields of the circular economy and impact investing.” (SITRA webpage)8
As an umbrella organization Team Finland is a network of public sector actors providing internationalisation services. The goal is to provide businesses with a smooth service chain, ranging from advice services to financing. (Figure 5.) (Business Finland webpage) It is also represented abroad by more than 80 local teams. Each team brings together the Finnish authorities, publicly funded organisations, and other central actors representing Finland in a particular region.
(Team Finland webpage) This organization symbolizes how much the Finnish state understands the importance of networks related to innovation. With further government reform in 2020, the network will also include private sector actors.
One of the members of Team Finland, Business Finland, was set up on 1
8 SITRA has 6+1 goals to complete its vision of Finland as a pioneer of sustainable well-being:
a) Addressing well-being in a holistic way;
b) Adjusting to planetary boundaries;
c) Empowering individuals and communities;
d) Moving to a regenerative and collaborative economy;
e) Building competencies for a complex world;
f) Developing inclusive and adaptive governance;
g) Strengthening resilience. (SITRA webpage – goals)
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January 2018 by merging Finpro, an organization which offered services for internationalization, investments and tourism promotion, and Tekes, which was the Funding Agency for Technology and Innovation (for both companies and research institutions).
Business Finland operates under the Finnish Ministry of Economic Affairs and Employment. Its strategy has two main goals: to a) enable companies to grow internationally and b) to cre-ate world-class business ecosystems and a competitive business environ-ment for Finland. (Business Finland webpage)
Another member institution, Finnvera provides banking and loan services for companies seeking to start, grow and spread internationally.
It offers loans, domestic guarantees, export credit guarantees, and other services associated with the financing of exports. Its goals are to increase the number of start-up enterprises, enable financing for changes encountered by SMEs and promote enterprise growth, internationalisation and exports.
(Finnvera webpage)
Its affiliates, Veraventure (funds), Seed Fund Vera (direct investments), and Finnish Industry Investment, provide public venture capital investments to private equity funds and companies. (halMe, et. al., 2014, 38.)
The 15 Centres for Economic Development, Transport and the Environment (ELY Centres) are responsible for the regional implementation and develop-ment tasks of the central governdevelop-ment. They promote regional competitiveness, well-being and sustainable development and curb climate change, holding responsibility for business and industry, labour force, competence and cultural activities; transport and infrastructure; environment and natural resources. (ELY Centres webpage) ELY centres deal with “financing and development services for enterprises and employment-based aid and labour market training.” (halMe, et.
Ministry of Economic Affairs and
Source: Team Finland webpage, own edition Figure 5.
Members of the network of Team Finland
Innovation performance in Finland
al., 2014, 38.)9
The Academy of Finland (SA) is responsible for funding academic research, and reports to the Ministry of Education and Culture. SA works in close consul-tation with other stakeholders in the Finnish research, education and innovation system. Its tasks are to grant funding in open competition for scientific research and researcher training and to improve framework conditions for research, to pro-vide expertise to Finnish and international collaborative networks, to collect and analyse data on science and scientific research and to perform other science pol-icy expert roles assigned to SA. (Academy of Finland webpage)
Research and educational institutions include public research organizations (such as the Technical Research Centre (VTT), Statistics Finland, and the Finnish Environment Institute), 14 universities, and 25 universities of applied studies (pol-ytechnics). SHOKs (strategic centres for science, technology, and innovation) are public-private partnerships (PPPs) with the goal of speeding up innovation pro-cesses and bring together academic research and private R&D activities. (halMe, et. al., 2014, 38.)
It is apparent that Finnish public sector institutions are cooperating and devel-oping a network to strengthen their ability to promote innovation on regional, national and international levels.