Cooperation between Universities and Industry in Finland

EUA Conference
Research in European Universities: Strategies and Funding
Uppsala 20 - 22 October 2005
Cooperation between
Universities and Industry in
Finland
Rector Lauri Lajunen
University of Oulu
Finland
Communications 17 July 2003

THE ESTEEM OF THE UNIVERSITIES
During the history of universities their esteem
has varied greatly.
Our time emphasises the meaning of universities
and they are highly appreciated.
The esteem and importance of universities will
remain high only if they manage to accept the
challenges presented by modern changing
societies.
This cannot be successfully accomplished by
using old attitudes, strategies and structures.
At present we need to take into account
globalisation, technological developments as well
as environmental aspects and custom orientation.
Communications 17 July 2003

THE MODERN UNIVERSITIES
The modern university can be described with
- “social relevance and applicability” and
”multi- and cross –scientific”.
- Teaching and other merits have gained in
importance.
- Students have become an essential part of the
scientific community and their learning is at the
center of attention.
- Research is conducted in groups.
Communications 17 July 2003

THE ROLE OF THE UNIVERSITIES
The Finnish universities are based on humboldian ideals of
autonomy, freedom of research and teaching and the unity of
research and teaching.
These are still essential elements in the university but we have
to be able to combine them with cooperation with other
research and teaching organizations, with businesses and with
officials:
The needs of society have to be taken into account.
However, it must be made clear that
- universities shall not be the executors of every whim of
businesses,
- Universities must be pilots,
- Universities must research that knowledge and those
applications which society needs in five or twenty years.
Communications 17 July 2003

UNIVERSITIES ARE AN ESSENTIAL PART OF THE
FINNISH INNOVATION SYSTEM
During the last ten years there has been about 40 % increase
in the number of students.
Most of this has been in the academic fields central to
businesses, that is, natural sciences, technology and
economics.
Universities are an essential part of the national innovation
system.
Different departments, teachers and researchers cooperate
closely with other universities, research institutes, businesses
and politicians.
Majority of academic diploma works are done on themes
which interest the economic life.
Communications 17 July 2003

The success of a state is more and
more depending on the success of the
regions
Thus, it is important to create regional
economic innovation centers
Communications 17 July 2003

Pre-Requisites for Creating Regional
Economic Innovation Centers
1. One or more great research
universities
2. Industrial infrastructure
3. Financial capital
4. Intellectual property protection
5. A “culture of innovation”
Communications 17 July 2003

The problem-oriented multi-
and inter-disciplinary research
centers attract high-tech
companies and their R&D units
to the region
Communications 17 July 2003

Universities should have:
-Cooperation between education,
research, authorities and enterprises
- Clear profile in research
- Top international level in research
at the chosen areas
Communications 17 July 2003

% GDP
4
3.5
3
2.5
2
1.5
1
R&D input in selected OECD countries
1983 1984 1985 1986 19871988 1989 1990 1991 1992 1993 1994 1995 1996 19971998 1999 2000 2001 2002
estimate
Source: OECD, Main Science and Technology
Indicators 2002
Sweden
FINLAND
Japan
USA
Germany
OECD average
France
United Kingdom
Denmark
Austria
Norway
Communications 17 July 2003

illion €
6
5
4
3
2
1
R&D input in Finland in 1989-
2002, by actor
1989 1991 1993 1995 1997 1998 1999 2000 2001 2002
estimate
Source: R&D expenditure, Statistics Finland 2003
Business enterprises
71%
Universities
18%
Other public sector
11%
Communications 17 July 2003

Finland
Japan
Sweden
Researchers per thousand labour
force: latest available year (1)
US
Belgium
Denmark
Germany
France
UK
EU-15 (2)
Netherlands
Ireland
Austria
Spain
Portugal
Greece
Italy
0 2 4 6 8 10 12 14 16
Source: DG Research
Data: Eurostat, Member States, OECD
Notes: (1) FIN, JP, E, P: 2000; UK, A: 1998; US: 1997. All other countries: 1999.
(2) EU average does not include Luxembourg
Researchers are full-time equivalents (FTE); labour force are headcounts (HC)
2,80
3,31
3,30
5,49
5,40
5,15
5,05
4,88
4,56
6,46
6,45
6,20
6,95
8,08
9,26
9,10
13,08
Key Figures 2002

Salo
Oulu
Tampere
Helsinki
Turku
Jyv skyl
Kuopio
Vaasa
Forssa
Porvoo
Lappeenranta
Joensuu
Raahe
Imatra
Etel -Pirkanmaa
boland-Turunmaa
Pori
Kotka-Hamina
€ nekoski
Rovaniemi
J ms
Outokumpu
Kajaani
Varkaus
Riihim ki
Rauma
Heinola
H rm nmaa
H meenlinna
Pohjois-Lappi
Lahti
Kemi-Tornio
Kokkola
Jakobstadsregionen
Mikkeli
Lohja
Pohjoiset sein naapurit
Sis -Savo
Tammisaari
Kaakkois-Pirkanmaa
Kaakkois-Satakunta
R&D activities by region in Finland
in 2002
0 50 100 150 200 250 300 350 400
Region
Euros per inhabitant
R&D expenditure in proportion to number of inhabitants.
Source: Statistics Finland
Communications 17 July 2003
03-2004 Copyri

Universities in Finland in 2002
One of the most comprehensive
university networks in Europe
10 multi-faculty universities
• Helsinki, Turku (2), Tampere, Oulu,
Jyväskylä, Joensuu, Vaasa, Kuopio,
Rovaniemi
3 universities of technology
• Helsinki, Tampere, Lappeenranta
• + Faculty of Technology in Oulu: 4669
students
3 schools of economics and business
administration
• Helsinki (2), Turku
• + Faculty of Economics in Oulu:
720 students
4 art academies
Vaasa
Turku
Helsinki
Tampere
Rovaniemi
University of Oulu
OULU
Jyväskylä
Lappeenranta
Kuopio
Joensuu
Communications 17 July 2003

University of Oulu
Communications 17 July 2003

University of Oulu –
Northern Gateway to Knowledge
Founded 1958
Students 16 400
admissions 2424
Staff 3225
• professors 250
Awarded Degrees 1523
• first degrees 1247
• doctorates 130
Expenditure 206,6 M€
• state budget 140,9 M€
• external funding 65,7 M€
Communications 17 July 2003

Faculties and Disciplines
Faculties
• Humanities (2261)
• Education (1886)
• Science (4077)
• Medicine (1953)
• Economics and Industrial Management (809)
• Technology (4843)
Other disciplines
• dentistry (210)
• health care (336)
There are 45 training programmes in all
(student numbers are in brackets)
Communications 17 July 2003

The University’s Primary Regions of
Influence
Geophysical Observatory
Research Liaison Officer (OY, LY)
Meri-Lappi Institute
Research Liaison Officer
Perämeri Research Station
Graduate Engineer Training Program
Chydenius Institute (JY)
Research Liaison Officer(OY, JY, VY)
Oulu Southern Institute
Kokkola
Vaasa
Turku
Hailuoto
Raahe
Kemi
Tampere
Helsinki
Sodankylä
Rovaniemi
Kuusamo
University of Oulu
OULU
Nivala
Iisalmi
Jyväskylä
Lappeenranta
Kajaani
Kuopio
Joensuu
Oulanka Research Station
Naturpolis Kuusamo
Department of Teacher Education
Kajaani University Consortium
Research Liaison Officer (OY, KY)
Communications 17 July 2003

Mission
The University of Oulu is an international
research university, whose central
mission is to promote culture and wellbeing
especially in northern Finland.
The University provides a high-quality
learning environment, in which both
specialists and generalists are given
a thorough grounding for demanding
tasks in the national and international
arena.
Communications 17 July 2003

250
200
150
100
50
0
M€
Expenditure of the
University of Oulu in 1999–
48,9 49,9 54,4
122,7 123,7
126,2
2004
57,5 69,6
135,7 127
75,7
130,9
1999 2000 2001 2002 2003 2004
other sources
state budget
Communications 17 July 2003

Major financing sources outside the regular
state budget of the University of Oulu
12000
10000
8000
6000
4000
2000
0
1999 2000 2001 2002 2003
Tekes and
companies
Academy of
Finland
EU framework
prog.
EU struct. Funds
Other EU financing
Communications 17 July 2003

Focus areas:
1. University is internationally
strong at these areas
2. These areas are important for the
economic and cultural life of the
region
Communications 17 July 2003

Research in Focus Areas
Information technology (Infotech Oulu, CWC)
• Electronics and system engineering,
communications engineering, computer science
and information engineering, software engineering
and information systems (machine vision,
automation, multimedia)
Biotechnology (Biocenter Oulu)
• Biosciences, biomedicine, molecular and cellular
biology
Northern and Environmental issues (Thule institute)
• Global change in the north, circumpolar health,
northern activity
• Sustainable use of natural resources,
cooperation with Environmental Administration,
link to industry and commerce
Communications 17 July 2003

Northern and Environmental
Issues
Programme
manager
Global Change
in the North
Programme
manager
Circumpolar
Health and Wellbeing
Programme
manager
Land use and
Land cover
M U L T I D I S C I P L I N A R Y R E S E A R C H
C O - O P E R A T I O N W I T H R E S E A R C H I N S T I T U T E S
C O - O P E R A T I O N W I T H S M E s & I N D U S T R Y
M.Sc. - and PhD - level Graduate Schools
Co-ordination Co Co-ordination ordination and Development of Joint Basic Studies
Services and Facility Development
Faculties of the University Research stations Giellagas Institute
Communications 17 July 2003

NorNet
Northern Environmental Research Network
Finnish Forest
Research
Institute
MTT Agrifood
Research
Finland
Finnish Environment Institute,
Regional Environment Centres
in Kainuu, Lapland and
North Ostrobothnia
Professor
Research
professor
Research
professors
Coordination
UNIVERSITY
OF OULU
Other Research
Institutes Other Universities
NorTech
Oulu Unit
Finnish Game and
Fisheries Research
Research
professor
Environmental
Enterprisers
Institute
Geological Survey
of Finland GTK
Communications 17 July 2003

Innovations in Regional Development
- ”The Oulu Model” is a good example of European good practice –
”Triple Helix –model”, where enterprises, research and public
sector have established a successful partnership.
- Regional multi-centre
multi centre models are needed in order to deliver
critical mass of innovation outside the growth centres.
- More effective push of the Multipolis Network programme, where
the Oulu Model has been delivered to the smaller centres in North
Finland, Sweden and Norway.
Communications 17 July 2003

TECHNOPOLIS Plc
• 200 companies
• 6 000 employees
INFORMATION TECH.
• Info-technology,
mobile technology etc.
OULU UNIVERSITY
• 16 400 students
• 5 000 in technical faculty
• 12000 jobs Common R&D
Town planning
OULU SUB-REGION
• 200 000 inhabitants
Spin-offs
Experts
Test platforms
IT-application
promotion
OULU GROWTH
AGREEMENT
Education
Common
Professionship
Students,
Trainees
Equipment
Funding
VTT
• 320 employees
OULU
POLYTECHNIC
•7300 studets
• 300 in electronics
STATE UNITS
• TEKES
• TE-CENTRE
• Provincial office
Communications 17 July 2003

Oulu Growth Agreement
Information
Technology
Content
and Media
2006
Clusters
Wellness
Cluster
Biocluster
Programme Agreements
Objective 2 Programme
Business Development
Programme
Logistics
Programme
Environment
Communications 17 July 2003

TECHNOPOLIS GROUP
Oulu
Helsinki
Metropolitan Area
Sector’s s leading company in Finland
Business environment as a product
High tech customers
Growing and well profitable
Sector
Listed on the main list of the
Helsinki Exchanges

Information
society
INFORMATION
INDUSTRY
Promoting
business
WELLNESS
INDUSTRY
Internationalisation
Wellness
society
Enhance domestic and global networks

Recent Challenges for University
Research 1/4
1. Basic funding from the state has decreased
and gets more unpredictable
-> universities must specialize
-> the funding basis must become more
diverse
2. University involved in regional and
economical development
-> technology transfer
-> knowledge transfer
-> intellectual property
Communications 17 July 2003

Recent Challenges for
University Research 2/4
3. Research depends on large investment
(equipment, special buildings etc.)
-> rules and regulations needed for transfer
of
materials etc.
-> who should own the results?
4. New ethical problems in research
-> increased competition
-> conflict of interest
Communications 17 July 2003

Recent Challenges for University
Research 3/4
5. More and more international and interdisciplinary
R&D projects (European Union, others)
-> contract matters
-> professional project development and
management
6. Commercial exploitation of research results
becomes more important
-> intellectual property rights
-> finding the right exploiter
-> negotiating the licences
Communications 17 July 2003

Recent Challenges for University
Research 4/4
7. Increased requirements for predefined
quality in research
8. Matters of compliance become more
important
-> human subjects
-> genetically modified organisms
-> animal experiments
Communications 17 July 2003

What do companies expect to
get from the University ?
Intellectual capital in the form of:
• well educated people
• readily applicable R&D results
• “Something they cannot expect”,
results of basic research
• generic inventions
• improvement of methods
Communications 17 July 2003

The University should have
a conscious research policy and
technology transfer policy
a professional research
administration
appropriate rules and
regulations
Communications 17 July 2003

Research and Innovation
Service Unit at the Univ.Oulu
a service that helps the
researchers at the University of
Oulu in all issues related to
research projects and to the
exploitation of results
Communications 17 July 2003

Functions of Research and
Innovation Service Unit
strategy and day-to-day
operations
sponsored research
technology transfer
Communications 17 July 2003

Research and Innovation
Services, RIS
FEASIBILITY
STUDY
-Financier
-Partners
-Prior of Art
PLANNING
-Project plan
-Pre-TIP
ADMINISTRATION
LEGAL SERVICES
-Negotiation process
-Contract models
-Univ. policy of IP
RESULT
EVALUATION
-Protection
-Market potential
CONTRACT RESEARCH WORK
-Lab. notebook
IMPLEMENTATION
-New start up
-Existing company
PUBLISHING
-Scientific papers
-Project report
-TIP2
LICENSING
PUBLIC DOMAIN
Communications 17 July 2003

number
of ideas
~100
10
Innovation Model
HIGH INTEREST OF RESEARCH
I 2
I n
-10
BASIC RESEARCH
UNIVERSITY
Tech. transfer
project
Option agreement
I 1
I 12
-5
APPLY RESEARCH
UNIV & COMPANY
License agreement
I 13
MARKET POTENTIAL
I 1n
MARKET ENTRY
0 t
PRODUCT DEVELOPMENT
COMPANY
Communications 17 July 2003

Innovation Process in Oulu University
RESEARCH BASE
Environmental research
NorNet
ITC
Infotech Oulu
Biotechnology
Biocenter Oulu
PRE-INCUBATOR ACTIVITIES
1. Pre-evaluation of Research Results and Ideas
2. IPR –evaluation and Protection
3. Implementation Plan / Business Plan
1. Entrepreneurship training programmes
1. Financial Support
1. University of Oulu
2. Foundation of Finnish Inventions
3. Technology Agency Of Finland /TULI
COMMERCIALIZATION
•New Hightech
Start ups
/Technopolis
Oulu
•Incubator
/OuluTech Ltd.
•License
Agreements
with a 3rd Party
/Licentia Ltd.
Communications 17 July 2003

PARTNERS
Innovation process at the
University of Oulu
RESEARCH EXPLOITATION
PUBLIC
Free Academic Research
Co-financed Research
Contract Research
PRIVATE
License Agreement
Technology Transfer
Agreement
START-UP
- Oulutech Ltd.
(incubator)
LICENSE
CONTRACT
PARTNER
Communications 17 July 2003

Division of net incomes
GROSS INCOME (royalties, fees, payments, etc)
Reimburse costs
(patenting, etc.)
20%
1
2
Inventors
NET INCOME
20%
60%
Laboratory University
Communications 17 July 2003

Innovation activity in 2004
Patent portfolio:
total 9 patents/ patent
applications
• 1 in biotech
• 4 in electronics
• 2 in telecom
• 1 in physics
• 1 in medical technology
Technology Transfer:
5 licence agreements
17 technology transfer
agreements
number of cases
90
80
70
60
50
40
30
20
10
0
50
New Invention Reports
58
60
2000 2001 2002 2003 2004
yrs
79
60
Communications 17 July 2003

Co-operation Between Universities and
Foundation of Finnish Inventions
Espoo / HUT 2
Helsinki
Helsinki /
university 3
Helsinki / HKKK
Joensuu
Jyväskylä
Jyväskylä /
university
Kajaani
Kemi
Kuopio
Kuopio /
university
Lahti
Lappeenranta
Lappeenranta /
LUT
Mikkeli
Oulu / university
Oulu
Pori
Rovaniemi
Seinäjoki
Tampere / TUT
Turku
Turku /
universities
Vaasa
Communications 17 July 2003

Northern Lights of Knowledge
Thank You for Your attention.
Communications 17 July 2003