Tekniikka & Talous
May 13 2009

Finland is the innovation hot spot number two in the world, tells Harvard Business Review.


Despite the economic recession, the pole position belongs to the United States.

Innovation strategies are thought over all around the world. Singapore, about the same size as Finland in population, is fifth on the list. China, investing heavily on innovations, is only 17th. 

Singapore concentrates on a model called Focused Factory. Innovation investments are put on selected fields of business and research. Singapore concentrates on biomedicine and digital media.

China dominates with volume. The innovation strategy combines cheap labour, vast amount of capital and extensive innovation potential.

Finland learned its lessons in innovation policies during the last economic depression. Decisions made back then have created a model where a strong innovation system benefits from the strong role of the administration.

Funding for research is given flexibly to public and private sector. Sitra, Tekes and other state controlled sources for funding function well.

The Aalto University is one of the best examples of the pervasive Finnish way of approaching innovations. The University is a concrete example of how to give birth to innovations by crossing different ways of thinking.