Finnish ICT Education Industry

Hannu PeltolaService Unit of Finnish Virtual University

3rd November 2005

ContentFVU 2005

1. Background

2. Finnish Governmental Policy Programs and Strategies

3. Finnish Innovation System

4. Finnish Science and Technology Policies

5. Public and Private Partnership

6. Technology Development

7. Finnish University System and Finnish Virtual University

8. Key Experiences

Background

FVU 2005

FINLAND

Area total: 337,030 sq km

Population: 5,183,545

GDP/ comp. by sector: agriculture: 4% industry: 34% services: 62%

GDP/ capita: purchasing power parity

$26,200

International organizations-Member of United Nations since 1955- Member of European Union since 1995

http://www.gandalf.it/data/data2.htmhttp://www.cia.gov/cia/publications/factbook/

Research & Development Expenditure http://www.tilastokeskus.fi

FVU 2005

0,0

1 000,0

2 000,0

3 000,0

4 000,0

5 000,0

6 000,0

1989 1991 1993 1995 1997 1998 1999 2000 2001 2002 2003 2004

mill

ion e

uro

s

Private Sector Public Sector Education Sector

Note:1) Public Sector includes private non-profit activities2) Education Sector includes universities, polytechnics and central university hospitals

Research & Development Expenditure http://www.tilastokeskus.fi

FVU 2005

0,0

0,5

1,0

1,5

2,0

2,5

3,0

3,5

4,0

1989 1991 1993 1995 1997 1998 1999 2000 2001 2002 2003 2004

R&D expenditure, % of GDP

Governmental Policy Programs and

Strategies

Government Policy ProgramsFVU 2005

The Policy Programmes cover the most important intersectoral subject matters in the Government Programme.

Prime Minister Vanhanen's Government launched four policy programmes that are led and coordinated by a minister responsible for the programme:

• Information Society Policy Programme (Prime Minister) • Employment Policy Programme (Minister of Labour) • Entrepreneurship Policy Programme (Minister of Trade and Industry) • Civil Participation Policy Programme (Minister of Justice)

The ministers responsible for the policy programmes are assisted by programme directors appointed to the relevant ministries.

The coordinating ministers and programme directors organise the implementation of the policy programmes in a manner they consider adequate for the attainment of the objectives. They also make decisions on the division of responsibilities and on the organisation of detailed preparation, implementation and monitoring of the policy programmes.

eEurope and Finnish National Information Society PolicyFVU 2005

http://e.finland.fi/

http://europa.eu.int

Information Society Policy Program (1/2)FVU 2005

The aim of the programme are to boost competitiveness and productivity to promote social and regional equality and to improve citizens' well-being and quality of life through effective utilisation of information and communications technologies.

The Information Society Policy Programme aims to maintain Finland's status as a leading producer and user of information and communications technology.

Information Society Policy Program (2/2)FVU 2005

1. The Information Society Programme consists of seven sub-sectors:2. telecommunication infrastructure and digital television

3. Citizens' ability to utilise the information society and secure information society

4. Training, working life, research and development

5. Utilisation of ICT in public administration (development of public services, social welfare and health, information management in public administration)

6. Electronic commerce and digital contents

7. Legislative measures

8. International dimension

Finnish Innovation System

Finnish Innovation SystemFVU 2005

Source: http://www.research.fi

Finnish Innovation System (1/3)FVU 2005

Source: http://www.research.fi

Finnish science and technology policy is characterised by long-term development of knowledge and know-how.

The national innovation system means a comprehensive entity composed of the producers of new knowledge and know-how, their users and the various ways in which they interact.

Central elements in the innovation system are education and training, research and development, and knowledge-intensive business.

New knowledge is produced by universities and polytechnics, research institutes and businesses, among others. Knowledge is chiefly used by businesses, private individuals, and the decision-makers and administrations responsible for the development of society.

Finnish Innovation System (2/3)FVU 2005

Source: http://www.research.fi

The national science, technology and innovation policies are formulated by the Science and Technology Policy Council, which works under the Prime Minister.

The organisations with primary responsibility for science and technology policy are the Ministry of Education and the Ministry of Trade and Industry. Nearly 80% of the government research funding is channelled through these two ministries.

Finland has been transferring from an economy based on natural resources towards a knowledge-based economy. The rapid change in the industrial structure has also benefited traditional industries: products and production methods are more knowledge-intensive in the economy as a whole.

The globalisation of the economy and technology and the ensuing rapidly proceeding international change have a strong effect on the regional level on the industrial structures, business models and the competencies required of both the labour force and society at large.

Finnish Innovation System (2/3)FVU 2005

Source: http://www.research.fi

The key challenge is to keep Finland sufficiently attractive to business, to jobs and as a living environment in general. At the national level, it is necessary to secure welfare services in the face of a rapidly ageing population and the ensuing pressures for taxation, to lower the unemployment rate, to improve employment and to balance regional development.

The success of the national knowledge-based strategy entails1) The capability for constantly generating new high-standard and relevant knowledge2) Efficient and unimpeded diffusion of knowledge and know-how3) Advanced capability for exploiting knowledge produced abroad4) Effective horizontal partnerships in the domain of knowledge 5) network-building across sectoral boundaries

Finland must identify the strength areas – the national competencies – and invest in their systematic development.

Alongside technological innovation, the focus is increasingly on the promotion of social innovation.

Finnish Science and Technology Policies

Finnish Science Policy (1/2)FVU 2005

Source: http://www.research.fi, photo: Helsinki University of Technology

Finnish science policy is designed to ensure positive development in science and scholarship.

The general aim is to raise the level ensure the comprehensiveness enhance the social impact promote the international penetration of Finnish research.

Science policy is the responsibility of the Ministry of Education

the most important research financing organisation is the Academy of Finland.

Publicly funded research is mainly conducted in universities and research institutes.

Finnish Science Policy (2/2)FVU 2005

Source: http://www.research.fi, photo: Academy of Finland

The key targets and priorities in Finnish science policy1. To effect a substantial

increase in research funding and maintain the GDP share of R&D at a world top level.

2. To step up the development of centres of excellence

3. To promote national, European and international networking in research4. To support research especially in fields relevant to knowledge-intensive

industries and services, such as biotechnology5. To intensify cooperation between the users of the research system and

research findings and the diffusion of research findings6. To promote the commercialisation of research findings and the creation

of new business and the utilisation of research findings and technology7. To make input into impact analysis and the evaluation of the state and

performance of the research system.

Finnish Technology Policy (1/3)FVU 2005

Source: http://www.research.fi

Finnish technology policy is designed to strengthen the competitiveness of technology-based enterprises.

Technological progress is used to create new business opportunities and promote the growth of existing business. Technology policy is a central component in industrial policy.

Technology policy is the responsibility of the Ministry of Trade and Industry.

The responsibility for measures geared to develop and disseminate new technological knowledge has been assigned to agencies in the Ministry's sector.

The most important organisation financing technological R&D is the National Technology Agency (Tekes).

Finnish Technology Policy (2/3)FVU 2005

Source: http://www.research.fi, photo: Acedemy of Finland

The aims of Finnish technology policy1. To develop the national innovation system with a goal of generating

new knowledge and promoting knowledge-based production and services

2. To increase and expedite the utilisation of growing research results and to promote the emergence and growth of new companies

3. To effect a substantial increase in public R&D funding, which will be allocated to R&D and commercialisation of results in the services sector and in new production fields and to innovation promoting sustainable development

4. To restore an upward trend in public R&D funding

5. To promote national, European and other international networking in R&D...

Finnish Technology Policy (3/3)FVU 2005

Source: http://www.research.fi, photo: Academy of Finland

6. ...To support national technology policy priorities and a more effective use of research resources through bilateral and multilateral cooperation

7. To support regional development through technology

8. To evaluate regularly the performance and impact of technology policy

9. To enhance research into technological change and innovation and their social impact

10. To ensure that the technological infrastructure, national quality policy and the technological safety system meet international standards and promote business competitiveness

11. To disseminate information to decision- makers and the general public on the results and the impact of public R&D funding.

TEKESFVU 2005

Tekes, the National Technology Agency is the main public financing and expert organisation for research and technological development in Finland.

Tekes finances industrial R&D projects as well as projects in universities and research institutes. Tekes especially promotes innovative, risk-intensive projects.

The primary objective is to promote the competitiveness of Finnish industry and the service sector by assisting in the creation of world-class technology and technological know-how.

Tekes’ activities aim to diversify production structures, increase production and exports, and create a foundation for employment and social wellbeing.

Tekes funds come from the state budget via the Ministry of Trade and Industry. Tekes has a budget of 400 million euros, a source of funding for 2000 projects annually.

Source: http://www.tekes.fi

Public and Private Partnership

Case: Science ParksFVU 2005

Public and privatefunding (e.g. TEKES)

Expert level personnelfrom universities

Flourishing high-tech enterprise

Technology Development

Internet hosts per 1000 inhabitants 3/2003 http://www.gandalf.it/data/data2.htm

FVU 2005

Broad-band Connections http://www.tilastokeskus.fi

FVU 2005

0 5 10 15 20 25 30

Greece

Turkey

Mexico

Slovakia

Czech Republic

Poland

Ireland

Hungary

New Zealand

Australia

Italy

Portugal

Spain

Germany

Luxembourg

Austria

United Kingdom

France

United States

Sweden

Norway

J apan

Finland

Belgium

Switzerland

Canada

Iceland

Denmark

Netherlands

Republic of Korea

OECD

Connections per 100 inhabitants

Telecommunications in Finland http://www.tilastokeskus.fi

FVU 2005

0

200

400

600

800

1000

1980 1990 1997 1998 1999 2000 2001 2002 2003

Fixed telephone connections Mobile telephone connections Internet connections

Connections per 1 000 inhabitants

Finnish University System and

Finnish Virtual University

Finnish University systemFVU 2005

21 FINNISH UNIVERSITIES (Government) • 10 multifaculty universities

• 3 technical universities

• 3 business schools

• 4 art universities

• 1 National College for Defence

Higher Education Policy in Finland, guidelines 1999-2004FVU 2005

Education and research seen as crucial to Finland’s national economic and political strategy for the future. In 1999 the Government fixed the guidelines for higher education up to the year 2004.

The Information Strategy For Research And Education centered on:

– Reforms of University education towards a more student-centered teaching methods– The development of teaching and learning to especially capitalize on network-based and open and distance learning– The promotion of the use of ICT in education and research– Virtual university, established to produce high-standard educational services

which enable studies to be pursued in every part of Finland through networks

MinEdu requested all the 21 Finnish Universities to prepare ICT strategy for teaching and learning at the end of the year 2002

ref. e.g. http://www.minedu.fi/julkaisut/Hep2001/Edusys/3HEPolicy/index.html

FVU in a nutshell

a consortium of all 21 Finnish universities a co-operative and service organization of the universities does not award degrees or qualifications operation started in 2001 and until 2006 the FVU operates as a project organization no legal authority yet

FVU 2005

Higher Education and ICT for Teaching and LearningFVU 2005

1995-1999

2000 -2001

2002 -2004

2005-…2009

The Equipment Phase (iron age)

The Competence Phase

The Strategy Phase

The Network Phase

Four phases

Juha Pohjonen, FIND presentation in Bandung October 2005

National level activities at Service Unit• Common portal and support services• Common agreements• International co-operation

Inter-University co-operation• Thematic networks• Common services• Development projects

Finnish Virtual University activitiesFVU 2005

Local activities at each university• e-learning material• Learning systems• e-Learning courses• ICT training• Local support services

Suomen virtuaaliyliopiston portaalihanke Totti Tuhkanen 29.4.2002 2

Management Model of the Finnish Virtual University

Consortium Assembly

FVU strategy and national guide lines are decided at FVU Consortium Assembly. Each university and Ministry of Education are represented.

Steering Group

Steering Group takes care of operational management

Service Unit

Coordination of national development projects

FVU 2005

Develop virtual courses, and their support services - Thematic networks and local e-learning support centers

Harmonize universities’ information systems- especially learning support systems- e.g., electronic transfer of credits and related information between universities

Enhance the flexible studies- Flexible Study Rights agreement (”JOO” agreement)- All universities participating

Provide shared services for university students, teachers, researchers and administrators - agreements on standards for, e.g., course information and educational material format - national database on online courses- counselling service for the national Flexible Study Rights scheme (JOOPAS) - online student counselling- design support for online courses: tools for planning, implementation and evaluation; databases for developing educational material- advice on IPR issues

Initial Goals of the Finnish Virtual UniversityFVU 2005

increase co-operation among universities and encourage the development of joint study programmes- thematic national networks

establish the operating models and services developed during the project as permanent parts of the universities’ activities

… Initial Goals of the FVUFVU 2005

FinancesFVU 2005

Ministry of Education 2001 - 2005:~9 million EUR per annum half for the universities’ projects half for the university networks

European Social Fund 2001 - 2004:1.5 million EUR for the FVU portal

Success stories...FVU 2005

FVU consortium agreement: First ever collective agreement among the Finnish Universities

Agreement of Flexible Studies in different universities All universities participating, started September 2004 extensive support service launched in 2004

Strategic level approach for the development of virtual university activities

All areas developed simultaneously and systematically

... Success storiesFVU 2005

Truly networked research and development established

30 active networks’ of universities operating regional, service focused and thematic networks

Local successes eLearning support units formed in each Finnish university the amount of e-Learning rising steadily

eLearning methods thoroughly accepted permanent organizations formed new technology and services developed

Challenges...FVU 2005

Management model complicated responsibilities of different organizations shall be defined in more detail

Financing model Today sole dependency of MinEDU funding 50 % directly to universities, 50 % to university networks

21 different opinions and strategies of parent universities

Challenge to manage but also a strength: different views and plenty of ideas collected in each project

... ChallengesFVU 2005

Consolidation of the legal and economic position of the FVU

Legal entity will be formed in 2006

Technical infrastructure Today totally different IT systems Common infrastructure will be built on key areas

Joint quality procedures and criteria Joint quality criteria will be defined by 2005 Extensive quality program for e-learning in 2004-2006

Challenges in 2005-2006FVU 2005

Items to becovered

in 2005-2006

Financing models and levels from year 2007

Measuring the effectiviness of the operations, meters

Implementation of strategy,new projects

Organization models,permanent operations

Finnish Virtual University has just now critical moments in operations: a 5 year project shall be transferred as every-day operations with permanent organizations

Case: Strategic Development and ICT Strategy ServiceFVU 2005

The development of Finnish Virtual University started as strategic levelinitiative

In order to support the universities to define an ICT strategy, a strategy support service was created by the FVU

Strategy service has tools how to builtup a balance score card based strategy

Strategy service has a data base of different ICT strategies of Finnish universities

Strategy service is supported by strategy consulting offered by the senior experts of FVU

Experiences: - all universities have made ICT strategies- the quality of university strategy work has increased- the openness of universities goals has increased

Case: Learning Center ”Aleksandria” at Helsinki UniversityFVU 2005

The Finnish Virtual University activities of Helsinki University are organized as Learning Centre "Aleksandria“ In addition of the virtual university activities the unit has components of university library, university language centre and IT support units.

The Language Centre is responsible for the Self-Access Centre for language study the Library offers a major part of Aleksandria’s library services Information Technology Department takes care of IT support, user account administration, and software distribution and sales.

At the Learning Centre there are 350 computers available for the students' use free of charge 24 hours per day. The local virtual university unit offers the teaching staff of the University of Helsinki support services in the use of ICT in teaching.

Case: ICT training program ”TieVie”FVU 2005

Finnish Virtual University ICT training program “TieVie” is networked expert organization comprised of experts from 13 universities

TieVie has trained almost 600 university teachers to have the basic level educational ICT skills and over 300 teachers and specialists have been trained to expert level.

Altogether the number of trained people represents about 11 % of total number of Finnish university teachers.

Case: Service UnitFVU 2005

The Service Unit of the Finnish Virtual University offers and maintains the national virtual university services like portal services and flexible study right services. The unit negotiates national level agreements between the consortium members and with partners.

The personnel participate in national development projects and the results of the projects are distributed via service unit channels.

The service Unit is also one contact point for all domestic and international contacts.

The service unit has a staff of 7 persons.

Strategic objectivesFVU 2005

1. Enhancement of flexible studies and development of support systems for flexible studies

2. Enhancement of co-operation among e-learning courses and course material

3. Wide-spread usage of FVU ICT training and support services

4. Integration of FVU to the European Higher Education Area, other international co-operation

5. Organization, working methods, financing and management model support the needs of networked operation

Students have broad selection of courses andadministration is easy

Enhancement of quality,cost-efficiency

Developed tools and services are in large-scale use, cost-efficiency

Mutual exchange of university teaching, broad-scale co-operation with selected partners

A firm foundation forall operations

Mission for FVUFVU 2005

The Finnish Virtual University (FVU) is a The Finnish Virtual University (FVU) is a network organization for co-operation among network organization for co-operation among

Finnish universitiesFinnish universities

The FVU promotes the development, The FVU promotes the development, productisation and distribution of network-productisation and distribution of network-

based educational and research services for based educational and research services for shared use and provision by universities in shared use and provision by universities in

national and international contextsnational and international contexts

The FVU bases its development work on The FVU bases its development work on state-of-the-art researchstate-of-the-art research

Key Experiences

CompetitivenessFVU 2005

Source: World Economic Forum (WEF), The International Institute for Management Development (IMD)

Relationship between GDP per capita and public funding for research and development

FVU 2005

Internet hosts vs. access costsFVU 2005

Internet Access Cost and Internet Host Density OECD Nations 1998-99OECD, Science, Technology and Industry Scoreboard, 1999, Benchmarking Knowledge-based economies (OECD: Paris) p.19

Summary: key success factors in FinlandFVU 2005

Long-term development with comprehensive programs

Balanced programs: private and public sector developed equally

Financing, legislation, technology and user support/training shall be developed

Private competition essential in developing new services and keeping price level adequate

Public sector can support the development with (risk) financing, infrastructure investments and training programs

Contact InformationFVU 2005

Hannu PeltolaDirectorService Unit of the Finnish Virtual University

Tel. +358 50 537 8333e-mail hannu.peltola@virtualuniversity.fiwww www.virtualuniversity.fi