Innovation Policy And Service Science In Finland

National Policies for Service Science and Innovation Case Finland Prof. Jari Kuusisto Lappeenranta University of Technology Department of Industrial Management 2009 International Conference on Service Science May 14-15, 2009 • Beijing, China

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Jari Kuusisto

Services are now recognised • Policy makers are increasingly recognising that services have central role in the economy • In the EU-level consultation, 79% of respondents feel that there is a need for a specific service innovation policy • A well-functioning services sector is key to the overall economic performance of OECD countries and to the welfare of its citizens.

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©Jari Kuusisto

Sources: OECD, 2005, Growth in Services Fostering Employment, Productivity and Innovation European Commission, 2008, Towards a European strategy in support of innovation in services: Challenges and key issues for future action.

Research funding in Finland • Funding of Service Science related projects Ministries

Funding agencies

Research performers

Ministry of Educa9on

Tekes

Ministry of Employment and Economy

Academy of Finland

Universi9es, Polytechnics and Public Research Ins9tutes Businesses and Private Research Ins9tutes

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©Jari Kuusisto

Research funding in Finland • Funding of Service Science related projects Ministries

Funding agencies

Research performers

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©Jari Kuusisto

There is a pressure to develop services • Smile curve drives businesses • Intangible parts of the value chain are increasingly important revenue generators for manufacturing industries

Rate of return

The value of manufactured products is increasingly based on intangibles E.g., brand value of a Volvo, BMW, Mercedes cars

R&D

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©Jari Kuusisto

Production

Sales

After-sale services

Source: Takada, 2003.

Service science in Finland • Service Science is picking up in Finland • There are developments on various levels of the system • Strategic, structural as well as functional activities

• Key developments related to service science • Launch of a national innovation strategy • Structural changes in the university system • Service science related activities

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©Jari Kuusisto

Service science is picking up in Finland • Several positive developments over the last two years time • New innovation strategy recognises that • All forms of innovation are important, also non-technological • Users have important roles in the innovation process • Structural changes in the university system • Creates multi-disciplinary research and education opportunities • Support programmes and financing for service innovation are growing • Serve R&D&I programme by national innovation agency Tekes • All technology programmes allow service development

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©Jari Kuusisto

Starting point - Finland • Finland has been successful in implementing effective technology policies • In order to continue success there is a need to develop new policy approaches

• New national innovation strategy was launched in 2008 • All forms of innovation matter - also service innovations • Public sector innovations are recognised as important • The concept of Demand- and User-driven innovation policy is introduced

• Good strategic position for Services Science development 8

©Jari Kuusisto

Structural changes supporting SSME • In order to facilitate multi-disciplinary R&D and skills development Finland is implementing structural changes in the University system • Merger of three major universities and 700 mill. Eur. Extra resources are allocated to new • Helsinki University of Technology • Helsinki School of Economics • Helsinki University of Art and Design

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AALTO UNIVERSITY

• Several key business leaders serve as members of the board of directors at the Aalto university 9

©Jari Kuusisto

Some operational activities • Serve programme (2006-2013) objectives are • to increase and broaden the services development of the Finnish industry and • to promote academic research in service related areas

• SERVE provides businesses and research organizations • • • •

project funding, national and international networks through seminars and industry specific forums and tools to support product management and IPR questions.

• Serve approaches service innovation from • the multidisciplinary viewpoint, and • combines theoretical and methodological knowledge from different scientific perspectives. 10

©Jari Kuusisto

Some operational activities II • Service factory is operating within the Aalto university • Combines technology, business and design elements

• Mission • To be at the forefront in developing the 21st Century human centred Service Society “Finland – Land of best service systems”

• Goals • To lead scientific research in specific domains of digital services • To provide strong service education program combining rigor & relevance • To create a broad research & development forum for service innovation

• Timing • Service Factory is one of the leading global centres of expertise in 20152020

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©Jari Kuusisto

Education – “Service Factory Masters” • Service Factory is coordinating & supporting servicerelated master's programs in the Aalto University • M.Sc. Program in Information and Service Management, HSE • M.Sc Program in Retailing & Channels Management, HSE • Master's Program in Service Design and Engineering, HUT – September 2009 – Computer Science & IT • Master's Program in Service Management and Engineering, HUT – September 2009 - Department of Industrial Engineering and Management of TKK. • Specialization module in Service Design, UAD – September 2009

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©Jari Kuusisto

Service science related challenges • It is a novel area with limited number of service specific elements and instruments readily available • Organisations delivering policy / research / education have little if any experience in service science activities • They are facing a very steep learning curve

• It takes time to change existing institutions and practices • Broader multi-disciplinary agenda and new target groups • The range of development projects broadens significantly • From technology development to business development

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©Jari Kuusisto

Thank you for your attention! [email protected]

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Jari Kuusisto