supporting researcher training of their personnel and by hiring more employees with a doctorate than atpresent.The Finnish government also stresses the importance of international research cooperation, and the importantrole which universities can play through cooperation with foreign universities and firms with regard toproviding links between the regional and local economy and the global networks. This should be an efficientstrategy for promoting the internationalization of local SMEs, as well as for providing access to globalknowledge production and R&D for local SMEs. Thus, the international, national and regional missions ofHEIs should not be seen as mutually exclusive but as potentially interlinked. A strong performance in theinternational and national level benefits the regions as well.The operational and juridical framework in Finnish universities has not, however, been able to respondadequately to growing expectations. Particularly in universities, the nature of cooperation has changed fromresearch undertaken by an individual researcher to extensive collaborative projects, with the participation ofbusiness and industry. One precondition for cooperation is that ownership and utilization rights are clearlydefined with regard to all the partners. The current legislation concerning intellectual property rights datesfrom 1967, when there was no corresponding need to provide for large joint projects carried out by highereducation institutions. Changes in research work have resulted in varying funding practices and complicatedcontractual arrangements. According to a Ministry of Trade and Industry committee (2002), the currentstatutes do not provide a sufficient basis for clarifying and enhancing the utilization of inventions made inhigher education institutions. The committee recommended new unambiguous statutes to that effect. Inpractice, this will mean amendments to the Act governing in-company inventions and the Universities andPolytechnics Acts and enactment of totally new legislation. The new regulations concerning the propertyrights to the research results of HEIs are under preparation.4.2 Core research fundingSince the mid-1990s, R&D spending in <strong>Finland</strong> has increased by close to 14% annually, compared to an EUaverage of less than 4% (Figure 4.2). In 2004, the share of HEIs of the total R&D expenditure was 20%, andR&D expenditure as a proportion of GDP stood at 3.5%. The rapid growth is mainly owing to an increase inbusiness enterprise input as its share of total funding has grown from 55% in 1993 to 68% in 2003 (Figure4.3). In the EU countries, the share of public R&D funding of the gross domestic product was the highest in<strong>Finland</strong> after France, 1.01% in 2003. The EU mean was 0.75%. In the case of basic research, public money isthe primary source of funding in <strong>Finland</strong>.Billion euros5,55,04,54,03,53,02,52,01,51,00,50,085 87 89 91 93 95 97 98 99 00 01 02 03 04YearOther public research Universities EnterprisesFigure 4.2 R&D expenditure in <strong>Finland</strong> in 1985-2004 (Source: Tekes)43
5,04,0Billion euros3,02,01,00,083 85 87 89 91 93 95 97 98 99 00 01 02 03YearPublic Fundig Enterprises Other fundingFigure 4.3 Funding of R&D expenditure in 1983-2003 (Source: Tekes)The R&D activity is heavily concentrated on only a few regions in <strong>Finland</strong>. The capital region and fouruniversity regions (Tampere, Oulu, Turku and Jyväskylä) cover 80% of the total R&D expenditure in thecountry. Also, the patenting activity is mainly accumulated to the same regions. In 2001, the number ofpatents per 1 000 inhabitants was 0.73 in the region of Jyväskylä whereas in the whole country it was 0.32(Appendix 9).The National Technology Agency of <strong>Finland</strong> (Tekes) and Academy of <strong>Finland</strong> are the main external publicfunding organizations for research and development in <strong>Finland</strong>. Tekes funds industrial projects as well asprojects in HEIs and research organizations, and especially promotes innovative, risk-intensive projects.Tekes funds come from the state budget via the Ministry of Trade and Industry. Tekes has an annual budgetof EUR 400 million and it funds approximately 2 000 projects annually. The Academy of <strong>Finland</strong>, whichoperates under the administration of the Ministry of Education, provides funding for high-level scientificresearch. Annually the Academy issues funding decisions worth around EUR 200 million. More than 3 000research professionals are engaged in Academy-funded projects at universities and research institutes.About half of the research funding of Finnish universities comes from their internal budget and the other halfis covered by external funds. In 2004, 58% (EUR 99.5 million) of the total public research funding of Tekeswas allocated to the Technical Research Centre of <strong>Finland</strong> (VTT) and HEIs. The share of polytechnics wasrather low, being 7% (EUR 6.6 million), but it is expected to increase in the years to come along with thestrengthening of polytechnic R&D activities. The Tekes funding covered one fifth of the total externalresearch funding of universities in 2004. The respective share of the Academy of <strong>Finland</strong> was 32%. Some84% (EUR 174.5 million) of the total funding of the Academy of <strong>Finland</strong> was awarded to the universitiesand university hospitals. The EU-funding also forms an important external funding source of HEIs’ R&Dactivities, particularly from the viewpoint of regional projects. Its relative proportion of the total externalresearch funding of universities is approximately 9%. The distribution of funding of universities is presentedin Table 1 in Appendix 10.The R&D expenditure in the region of Jyväskylä was EUR 181 million in 2004, which is 6% more than inthe previous year, and it covers 3.4% of the total R&D expenditure in <strong>Finland</strong> (Table 4.1). The R&Dexpenditure per capita in the Jyväskylä region was EUR 1 107, which exceeds the national average (EUR1003 million). In only four regions was the R&D expenditure per capita larger than in Jyväskylä. The shareof the University of Jyväskylä and Jyväskylä Polytechnic was nearly 40%. Approximately half of the R&Dexpenditure was covered by private sector firms, which is less than in the whole country where the firms’share is approximately 70%.44
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Box 6.9 Environmental management in
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Strengths+ The significance of HEIs
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Discussion proposal 15: To ensure d
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achieved by the horizontal utilizat
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Appendix 2 Information on data used
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School of BusinessRoleThe School of
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Agora Center’s partners from the
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Appendix 14 Master’s Programmes a
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Uusiutuvan energian tutkimusohjelma
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BIBLIOGRAPHYAcademy of Finland (200