Tekes’s role in FosteringInnovation in Services

RESER 14.9.2007

Tiina Tanninen-Ahonen

Director, Service Innovation

Tekes

Serve

1. Services in Tekes’s strategy

2. Serve – Innovative Services – program 2006 – 2010

3. Innovation Policy in Services,

Innonet – project IPPS

Tekes’s role in FosteringInnovation in Services

Serve

Conclusions from the Service and Innovation ConferenceHelsinki October 2006

Broad-based innovation policy (Finland's key theme during the EU Presidency )

attention not just to supply side policies but also to consumers, customers and markets as important factors of innovation.

Services play dominant role in economies but less so in innovation policies

is a strong need for new policy initiatives and mutual learning in innovation policy planning and design that ackowledges services.

Division between services and manufacturing is increasingly artificial:

policies need also to reflect the merger between services and manufacturing and, especially, recognise that services are becoming a key ingredient to manufacturing companies' competitiveness.

A set of policies affect innovation in services there is a need to take a comprehensive look at all the policies that

affect innovation in services and reassess their focus from the viewpoint of services and the related innovation.

Background for the service innovation policy development

Serve

Tekes’ mission statement

Tekes boosts the development of Finnish industryand the service sector by technological means and

through innovation.

This will renew the economy andincrease added-value, productivity and exports,

thereby creating employment and enhancing well-being.

DM 3218903-2006 Copyright © Tekes

Finnish Funding Agency for Technology and InnovationFinnish Funding Agency for Technology and Innovation

Serve

Tekes strategy 2005, innovative servicesas catalysts for modernization

Modernization ofindustries by

service-driven business concepts

Manufacturing and construction,30 % of GDP

Service sector,70 % of GDP

Knowledge Intensive BusinessServices and Activities

KIBS - KISA

Reformingservice markets

Private Public

Innovative service concepts Developing new service concepts Developing new business models

based on service innovations

DM 2409i811-2006 Copyright © Tekes

Serve

Serve – Innovative services

Programme duration: 1.3.2006-31.12.2010Programme volume: approx. 100 million euros,

of which Tekes funding is 50 per centFurther information: www.tekes.fi/serve

DM 2409i811-2006 Copyright © Tekes

Focuses upon developing new service conceptsand service business based on these concepts.Focuses upon developing new service conceptsand service business based on these concepts.

Serve

Focus areas

Knowledge intensive business services (KIBS,e.g. software design, consulting, research anddevelopment, legal services, corporate financeand business administration, marketing,advertising, engineering)

Trade Real Estate Services Industrial services Financing and insurance Logistics Asset Management Services

The main emphasis is on B to B servicespersonal & social/welfare services are

excluded from the programme.

DM 2409i811-2006 Copyright © Tekes

Serve

Research themes in 2007

In 2007 Serve technology programme funds research projects which relate to the following topics

service management and leadership, (management of services)

the role of customers in service development and production

internationalization of services.

The research funding budget for 2007 was 4,2 million euros.

7 new projects were funded in 2007 in addition to 22 existing projects

Serve

The Aims and Means of the Roadmap Work

Identifying the key challenges in Finnish service business companies

Today In the near future

Identifying the State of the Art in Finnish academic research in services

Semi-structured interviews and on-line survey 28 companies in trade, KIBS, RE, manufacturing and

logistics interviewed 12 researchers interviewed A survey was sent to 52 researchers

Serve

Main findings

Overall the identified challenges are similar from one industry to another

The main challenges are related to

The role of customer in service business and service innovation process

Service Business Management and Leadership

Development of new service concepts

Serve

The role of a customer in service business and service innovation process

Understanding customer needs and turning them into profitable business

How to create value to your customer? How to collect and use customer data more efficiently? How to anticipate customer needs?

Customer as a development partner How to identify strategic, right customers as development

partners? How to make more use of everyday development at the

customer interface? When & what to develop with customers?

Serve

Service Business Management and Leadership

Creating a service mindset in your organisation and among your customers

Willingness and capability to sell services Willingness and capability to use and buy services

Pricing models & profitable business models How to define the value of your service to your customer? How to build a profitable service business?

Rid off giving out services as “favours” Towards making money out of them

Serve

Developing new service concepts

Mechanisms for developing new services How does a service development project differ from the

traditional product development? How to identify the customer needs for new services? How to turn new and challenging ideas into practice?

Scalability of service concepts How to make your service business up-scale? How to find the optimal between scalability and

customization?

Serve

Ultimate aim of the IPPS

A preparatory act for an INNO-Net that aims at joint activities at trans-national level

Focus is in service innovation related programmes and activities

The ultimate aim is to develop a common roadmap that will lead to

Better knowledge of the possibility to prepare joint activities at trans-national level (e.g. INNO-Net)

Better knowledge of possible barriers Better knowledge of suitable and eligible partners for

trans-national cooperation

IPPS – Innovation Policy Project in ServicesFP6 / Research and Innovation Programme INNO-Net / Specific Support Action (SSA)

Serve

Mapping study contributors

Country / region Official IPPS participants Research performers

Baden-Wrttemberg Ministry of Economic Affairs Fraunhofer Institute for Industrial Engineering (IAO),

Czech Republic* Association of Innovative Entrepreneurship

Association of Innovative Entrepreneurship

Estonia** Ministry of Economic Affairs and Communications

Finland Tekes, Finnish Funding Agency for Technology and Innovation Š Project coordinator

European Touch Ltd.

Germany Bundesministerium fr Bildung und Forschung (BMBF),

Fraunhofer Institute for Industrial Engineering (IAO),

Ireland Forf‡s, Enterprise Ireland CM International

Netherlands Ministry of Economic Affairs Dialogic

Norway Research Council of Norway NIFU-STEP

Slovenia Public Agency for Technology Development of the Republic of Slovenia

Centre of International Relations, Faculty of Social Sciences, University of Ljubljana

Sweden Vinnova, Swedish Governmental Agency for Innovation Systems

FBA Holding AB

United Kingdom Department of Trade and Industry

Institute of Innovation Research, University of Manchester

Western Greece* Ministry of Education and Religious Affairs

Computer Technology Institute

Serve

IPPS Conclusions (1/2)

Due to the early development phase of the service related innovation policy and programmes, there is also a clear need to continue the exchange of information and best practices between Member States

Because of the early stage of development spontaneous solutions are not likely to emerge

There is a need for broad-based transnational collaboration activities in the field of service innovation

This kind of broad-based approach was regarded necessary by the Expert Focus Group because of the importance of the subject and multifaceted nature of the service innovation

Serve Such a broad-based approach would include strategic, policy

and operational level activities to exchange ideas, information and best practices between

Member States and regions and therefore accelerate the learning process in the identified field,

to create common language and understanding in the area of service innovation,

to encourage the development of necessary policy toolboxes and measures in the identified field and

to start a mind-set change that is required in order to recognise services as a powerful economic force in the contemporary and future European Union.

A long-term goal should be to achieve an effective and balanced innovation policy which would be industry neutral in nature

There is also a need for a more balanced mix of innovation policy utilising both demand- and supply-side measures in the promotion of service innovations

IPPS Conclusions (2/2)