Digitalization as an enabler for sustainable growth

Mikko Kosonen, President

The Finnish Innovation Fund Sitra

September 28th, 2015

Sitra • Mikko Kosonen • 3.11.2014 4

Transition from an industrial welfare society to sustainable well-being

Eco

nom

ic g

row

th a

nd w

elfare

develo

pm

ent

1990 1980 2015 2000

Industrial welfare society

Sustainable well-being society

Subjective well-being

Economy

Global consumption of natural resources

Preventive

healthcare

Circular

Economy

3

The biggest systemic challenge of our time: Increasing wellbeing whilst disconnecting economic growth from the consumption of natural resources!

Digitalization is THE key enabler!

1. Nation-wide, transparent steering via common ‘service packages’ For equality and cost transparency

2. Single-channel funding From sub-optimization to holistic view and knowledge management

3. Separating service ownership from service production For releasing the innovation potential of private sector

4. Money to follow patients in basic services For empowering people 4

Finland has an excellent opportunity to build a lead market for ICT-enabled preventive healthcare Basic conditions:

National Operator

Finland’s great opportunity: Creating a National Operator for Health and Well-being Information

5

Data Creation

“My Kanta” / personal

online service for

medical details

EHR database

Bio-

banks

Integrated

and

analysed

data

Standard interfaces

Customized interfaces

Ecosystem and Partner Network

• Public

Research

Institutes

• Private

Research

Institutes

• Pharmaceutical

Industry

• Healthcare

Information Enrichment and Increased Customer Value

Revenue Stream

Utilization of Information

KanTa

Genome

-database

Other data sources

Value Added Services

Data

anonymization

Individual

Benefit

1 3 Data Gathering and Refining

2

Individual

• Individual

Analytic services

End-user applications

Services containing anonymized data

Etc.

Audit Trail and Securing Information Reliability

• National Centres

of Expertise

4

7

Circular Economy, a new economic paradigm?

• Circular economy is a new economic model which generates no waste or

loss, and reduces the dependency of virgin natural resources

• Products, materials and their value remain in circulation instead of linear

usage

• Added value for products is generated through digitalization and services

• Consumer-based business models create added value for consumers

instead of ownership

Realizing these opportunities requires new type of collaboration

• Global competition takes increasingly place on ecosystem, not on individual company level

• Finland needs visible global references (Healthcare, Circular economy, Education…) for driving new growth and attracting investments.

• Creation of new business ecosystems requires:

1. Setting national priorities for new growth areas

2. Multi-disciplinary research combined with active experimentation

3. Intensive public-private-people partnership

• We also need new incentives (taxation, regulation…) and innovation driven public procurement to make this happen

New innovation policy?

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