Growth ecosystems as a tool in industrial and innovation policy

Climate change, clean transition, technological transitions and transformation of value creation logics pose a challenge to society’s and enterprises’ innovation activities and innovation policy tools. Global competition and rapid changes in the operating environment make it a necessity for enterprises to invest in the development of new kinds of products, services and solutions, better digital capabilities and an improved understanding of the market and customer needs. Enterprises that do best in the global value chains are those able to control the functioning of value chains and repatriate for themselves a significant share of the value created for the end customer.

Platforms and ecosystems of various sectors are crucial for innovations activities and for harnessing the potential of green and digital transition. Ecosystems are interdependent networks between enterprises, entrepreneurs, researchers, public administration and third-sector operators. Platforms are multi-directional development and interaction venues and marketplaces shared by a variety of operators and users. Digital platforms especially have the potential to produce extensive, rapidly scaling network effects. Ideally, platforms and ecosystems should have critical mass and they should be open, innovation-based, international, data-intensive and strategically managed.

Creation of world-class growth ecosystems will be supported in sectors where Finland has solid expertise and capacity to do well in international competition. Ecosystems and policy measures promoting them are a means to solving broad-based and complex problems in society that need expertise from several sectors. Skills platforms and growth ecosystems facilitate cooperation, co-creation and piloting solutions between different sized enterprises, education providers, research institutes, third-sector operators, public administration and end users.

The public sector plays an important role in enabling and developing the functioning of ecosystems. Common choices and priorities will need the backing up of a knowledge base that supports policy-making and a continuous dialogue between research, public administration and business and industry.

The Ministry of Economic Affairs and Employment will reinforce its collaboration with other ministries and with Business Finland and the Academy of Finland in an effort to develop financing models, operating practices and policy instruments.

The policy measures to develop and promote ecosystems include:

• Identifying future growth potential and building a knowledge base in support of strategic choices and other decision-making;
• Tools for promoting innovation partnerships and ecosystems, including locomotive ecosystems, flagship initiatives, ecosystem agreements, innovative public procurement and development of innovation-friendly regulations;
• Building of development and testing environments for innovations and new solutions.