SFINNO Database of Finnish Innovations. Erkki KM Leppävuori Eurotech 18 th November 2012 Copenhagen
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1 SFINNO Database of Finnish Innovations Erkki KM Leppävuori Eurotech 18 th November 2012 Copenhagen
2 2 The innovation database SFINNO has been designed to capture significant (technological) innovations developed by Finnish industry during the post-war period. It follows the LBIO (Literature Based Innovation Output) method. Innovation is an invention which has been commercialised by a firm or equivalent. (OECD Oslo Manual 1997) Innovation is the implementation of a new or significantly improved product (good or service), or process (OECD Oslo Manual 2005)
3 3 Relevance of object based approach on innovation Measures innovation activity through actual innovations. Produces detailed information of innovation process, underlying knowledge bases etc. in the firms. Provides a micro-level insight into the wider processes of industrial renewal and technological change.
4 4 History of Sfinno process Sfinno database construction started at VTT in as a research project funded by VTT and Tekes Finnish Funding Agency for Technology and Innovation. Six data collection rounds since the start Including the collection of data of historical innovations, Today, the innovation data covers years ~4900 domestic innovations ~1900 innovative firms
5 5 International innovation databases Variable U.K. (I) U.S. Netherlands Austria Italy Ireland U.K. (II) Spain Sweden Finland (a) Finland (b) SAPPHO SWINNO SFINNO H-INNO No of innovations Years covered Method Expert LBIO LBIO LBIO LBIO LBIO LBIO LBIO LBIO holistic' LBIO Sectoral distribution: according to firm * * * * * * * * according to innovation * * * * * * * Firm size * * * * * * * * * * Firm age * * * Incremental vs radical (novelty) * * * * * * * * * * Patents * *? * * * * * R&D data * * * *?? * Geography * * * * * * Complexity * * * * * * * * Properties of innovation * * Diffusion / sectoral use * * * * * * * * Domestic (D) / Foreign (F) D+F D+F D+F D+F D+F D+F D+F D D D D Collaboration? * * * Financial support? * * * * Share of exports? * Share of employees (sector)? *? * Industrial coverage ALL ALL ALL 15 sectors ALL ALL 1 sector ALL ALL ALL Origin of innovation * * * Development time * * *
6 6 Composition of Sfinno data Basic data Historical data of 1593 innovations ( ) Contemporary data of 3382 innovations ( ) Survey data Total 4975 innovations Sfinno contemporary data - survey data of 1158 innovations (34% of the total data), years
7 7 Data collection Identification Some innovations are identified from 15 professional journals annually. Some 5-8% of innovations per update round are identified from annual reports of 20 largest R&D spenders. Survey Survey is distributed to innovation developers. Name of person identified from journals or business register. Response rate is around 20-30%. Statistics 5th update (Sfinno10) - Years covered innovations identified - 22% response rate in Sfinno survey
8 8 Innovation collection process 1 2
9 9 Innovation timeline Sfinno innovations per year Number of innovations according to commercialisation year ( ) (N= ~4900)
10 10 Insights into the data Innovation type: Share of process innovations ~3% ( ) Share of service innovation ~2,7% ( ) However, the share of identified process and service innovations is increasing. 14% of process and 11% service innovations in the 5 th update. Innovation characteristics: 49% of innovations are totally new to firm and global market. 65% of innovations are internationalised. 54 % of innovations have filed a patent. Figures are based on survey data, n=1158
11 11 Example - Finnish Innovations from the era of independence The need to present the versatile nature of innovations - the innovation discussion is getting one-sided. Not a nonfiction book of innovations technical details but it rather pictures the period of times through novelties in the different decades. Idea about illustrating different decades was easy to accomplish with the help of Sfinno database. Book is published by Gummerus in 2011.
12 12 Innovation as key output indicator of innovation system an example A contract study for Tekes in To explore the different roles of Tekes in developing Finnish innovations. Case study examples selected from Sfinno database. Sfinno data provided accurate information about the involvement of Tekes in innovation development.
13 Finnish innovations 27/11/
14 14 The significance of Tekes funding to different types of innovation Importance of Tekes Funding: Novelty to the firm No public funding Minor role Signifi cant role Totally new 30,9 % 11,2 % 57,9 % 100% 537 Major improvement 43,3 % 10,3 % 46,5 % 100% 282 Incremental improvement 69,2 % 5,8 % 25,0 % 100% 52 Market novelty New to domestic market 57,9 % 5,3 % 36,8 % 100% 190 New to global market 30,5 % 11,9 % 57,6 % 100% 613 Type of know-how behind innovation devt. Core technology of the company 61,2 100% 27,4 % 11,5 % % 340 Devt.& integration of 46,2 100% components/modules 42,7 % 11,1 % % 288 Devt. of production methods 51,7 100% 40,8 % 7,5 % % 147 Commercialisation of service concepts 35,4 100% 54,2 % 10,4 % % 48 Other 44,4 100% 44,4 % 11,1 % % 45 Total N Source: VTT SFINNO, (N = 852). Note: figures are based on survey entries.
15 Market opportunities Competi-tive pressure 27/11/ The role of Tekes financing in innovation drivers (1/2) Factors driving innovations Price competition Not significant Rival innovation Not significant Market nice Not significant Customers Not significant Public procurement Not significant Importance of Tekes Funding: No funding at all Minor Significance Total N 35,2 % 11,3 % 53,4 % % ,4 % 8,9 % 48,7 % % ,7 % 12,0 % 53,3 % % ,2 % 8,0 % 47,8 % % ,2 % 8,8 % 50,0 % % ,6 % 10,4 % 52,9 % % ,4 % 9,9 % 53,7 % % ,7 % 10,8 % 51,5 % % ,9 % 10,2 % 50,9 % % ,1 % 11,5 % 64,4 % % 87 Source: VTT SFINNO, Note: figures are based on survey entries.
16 Science & technology 27/11/ The role of Tekes financing in innovation drivers (2/2) Factors driving innovation Importance of Tekes funding No funding 24,1 % Minor significance 11,5 % 64,4 % Total % 87 N Environment Not significant 42,3 % 9,8 % 47,9 % % ,8 % 13,2 % 67,0 % % 182 Regulation Not significant 48,6 % 7,2 % 44,2 % % ,6 % 13,0 % 62,3 % % 276 Scientific breakthrough Not significant 46,5 % 11,6 % 41,9 % % 658 6,2 % 6,2 % 87,6 % % 194 New technology Not significant 39,7 % 9,9 % 50,4 % % ,0 % 12,1 % 54,9 % % 273 Public research Not significant 38,6 % 8,6 % 52,8 % % ,5 % 15,7 % 49,8 % % 235 License Not significant 38,5 % 10,9 % 50,6 % % ,0 % 8,0 % 76,0 % % 50 Other Not significant 39,4 % 11,3 % 49,3 % % ,9 % 13,2 % 54,9 % % 91 Source: VTT SFINNO Database, Note: Figures based on questionnaire entries.
17 17 Innovation development times and the role of Tekes funding Role of Tekes Funding 1 year or less 2 years 3-4 years 5-6 years 7-20 years >20 years N 38,6 % 43,5 % 60,5 % 64,5 % 63,7 % 85,7 % 424 Minor significance 7,1 % 10,8 % 11,8 % 6,6 % 17,7 % 0,0 % 87 No funding at all 54,3 % 45,7 % 27,6 % 28,9 % 18,5 % 14,3 % 294 Total % % % % % % % Grand Total N Lähde: Source: VTT SFINNO VTT SFINNO, -tietokanta, Note: Huomio: figures are lukemat based perustuvat on survey kyselyvastauksiin. entries
18 18 The role of VTT in innovation On-going study to assess the role of VTT in developing innovations. to consider potential quantitative and qualitative approaches and methodologies for exploring VTT s impacts. to identify few promising methodologies and approaches, and to carry out pilot studies for identifying best practices to assess impact in future. to assess various roles, forms and impacts of VTT s internationalization. to make the analysis in the context of current strategy of socio-economic global grand challenges.
19 19 50% 40% The role of VTT and other RTO s for Finnish innovations* 47% 30% 35% 20% 27% 10% 18% 17% 0% Domestic universities Foreign universities VTT Other domestic research institutes Foreign research institutes *Share of innovations where the selected r&d organizations played a role Source: Sfinno survey data (1158 innovations commercialized in the period)
20 20 Challenges in Sfinno method Representativeness to whole population of innovations in economic system. Keeping method constant but flexible (e.g. adapting questions to current needs). Subjectivity and division of labor. Requires internal and external quality control. Bias towards more significant innovations. Laborious to keep data up-to-date. Does not work for all types of innovations E.g. service innovations in minority. Pervasive, systemic innovations cannot be detected (e.g. integration of production-processes based on wood-processing in forest cluster).
21 21 To conclude Current developments SWINNO database is currently under construction in Lund University, Sweden. The data covers years Future developments Linking patent data to innovation level data (currently on company level). Increase the number of academic research and collaboration on studies based on Sfinno data. Recent papers e.g. in Scientometrics (2012), Strategic Management Journal (under review).
22 22 More information: Nina Rilla, Robert Van der Have, SFINNO webpage:
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