Innovation policy provides an incentive for continuous renewal

Innovation plays an important role as an engine for renewal and productivity. The aim of the innovation policy is to ensure that Finland can provide an operating environment encouraging enterprises to bold innovation, renewal and international growth.

Innovation policy helps to ensure a broad competence base and comprehensive and effective use of the new knowledge arising from it. Finnish innovation policy draws it strength from a wide field of different sectors. Development of traditional technologies and a broad range of non-technology competence are used as instruments for economic growth and well-being. Digitalisation and the growing importance of services in the economy highlight the role of intangible value creation and offer new ways of creating value.

Public sector enables and encourages innovation

Innovation involves an economic and technological risk. Innovations often require years of research and development work. However, the development efforts are not always successful or the product may fail to attract customers. Enterprises can be encouraged to innovate by providing them with research and innovation funding, by promoting innovation-friendly legislation and by developing cooperation networks and platforms.

Innovations are created at interfaces of different types of expertise

In addition to introducing continuous improvements to their products and services, enterprises are also increasingly using radical innovations as a competitive factor. Solutions making use of new ideas are created when experts from different fields cooperate and question old practices. In addition to maintaining domestic networks, enterprises must also actively seek new expertise and knowledge through international cooperation.

Growth requires new thinking and new operating methods

As the competitive environment is becoming tougher, enterprises should seek new ways of creating innovation. For example, making use of users’ views, involving users in the innovation process, finding solutions to major social challenges or the research findings produced by universities and research institutions may provide new impetus to innovation. Digitalisation is also providing unprecedented opportunities for new business.

Innovation is the tool that allows the public sector to renew its operating approaches. The aim of the public sector is to produce higher-quality public services in a more cost-effective manner. One way of doing this is to purchase more innovative services through public procurement.

Preparation and implementation of Finland’s innovation policy is the responsibility of the Ministry of Economic Affairs and Employment. Development of Finland’s innovation system is coordinated by the Research and Innovation Council, which is chaired by the Prime Minister.

Further information: kirsti.vilen(at)tem.fi