Towards a More Innovative and Competitive Europe

Finland will hold the Presidency of the European Union between 1 July and 31 December 2006. During our Presidency, we wish to emphasise that public confidence in the EU can only be improved through concrete achievements in areas where Union-level action clearly outperforms action taken by individual Member States alone. Finland will concentrate on the challenges now facing Europe, such as globalisation, improving competitiveness, population ageing, climate change and security. Finland will also promote the development of a broad-based innovation policy, drawing on the recommendations made in Esko Aho’s innovation report (Hampton Court report) as one source of ideas.

In the development of EU innovation policy we want to adopt a broader approach encompassing demand for innovation. Notwithstanding the importance of joint and national measures to increase research and development funding and to put it to more effective use, innovation policy cannot make a real difference unless measures are taken to develop the markets that encourage innovation and generate new demand for it. Such measures include standards, public procurement, steps to make markets function more effectively, greater mobility of research resources and closer cooperation between universities, business and public sector as a whole.

In Finland, systematic research is developed largely through guidelines given by the Science and Technology Policy Council which works to assist the Government and various ministries. Led by the Prime Minister, the Council handles key issues related to science, technology and innovation policy. The goal is to enhance Finland’s position in various areas through investments in high-quality education, research and innovation-oriented activities. Key policy guidelines are prioritisation, national and international profilisation and selective, forward-looking decision making.

On an international scale, Finnish R&D funding is at a high level. In 2005, the share of R&D funding was 3.52 per cent of GDP. By comparison, the European Council at Barcelona in 2002 set a target of directing 3 per cent of GDP for R&D in EU Member States by 2010. However, implementation of research results cannot be quaranteed solely by increasing R&D funding. It is also important to ensure proper allocation of R&D funds and to avoid overlapping work. R&D investments must also be directed especially to areas which are most important in terms of national economy, social development and public wellbeing. This applies equally to Finland and the entire EU.

The Science and Technology Policy Council is currently overseeing the preparation of a national strategy for the creation and nurturing of internationally competitive science and technology clusters and centres of expertise. On the whole, R&D investments focus increasingly on the utilisation of information and knowledge and, among other things, on service innovations.

Information society development is one of the key strategic goals of the current Government. For this purpose, in 2003, the Government started a horizontal Information Society Policy Programme, and appointed a broad-based National Information Society Council, both led by the Prime Minister. During the past three years, the programme has focused on implementing key information society measures, establishing a dialogue and fostering cooperation between various stakeholders. Examples of the programme’s achievements include structural renewal of public administration IT management, creating of a national electronic patient record, and bringing broadband connections within reach of all citizens.

As the Government’s term of office approaches its end, a National Information Society Strategy is being prepared under the Government Information Society Programme. Aiming at the year 2015, the strategy focuses particularly on the development of service provision, skills and innovation-driven activities, with the goal of making Finland more innovative, human-oriented and competitive.

Innovation-driven activities, competitiveness and information society issues are featured strongly in events planned for Finland’s EU Presidency. In September, through the EU’s i2010 programme, we will examine an information society related theme of the new everyday life (ubiquitous society). In October, we will have the seminar Networked Business and Government – Something Real for the Lisbon Strategy which examines concrete examples to boost European competitiveness. In November, we will launch a new European innovation system – European Network of Living Labs; while in the same week, a large group of experts will gather in Finland for the IST 2006 conference.

Strengthening European competitiveness through investments in R&D and broad utilisation of information and communications technology is our common challenge. Increased cooperation is a key priority for the development of the information society set by the Ministerial Group of the Finnish Government Information Society Programme. Such cooperation is needed at the national level as well as the EU level and world-wide.

Mr Matti Vanhanen

Prime Minister of Finland
President of the European Council (1.7.-31.12.2006)
Chairman of the Information Society Policy Programme’s Ministerial Group, the Information Society Council and the Science and Technology Policy Council