VinnovaAnnual Conference

October 12, 2011

The future role of states in enhansing innovation: Health care example

Mikko AlkioPartner

2Finland’s recovery form the recession of early 90’s

Million eurosFinland’s financial crisis 1991-94

• Major bank sector difficulties

• Exports down by >20%

• GDP down by 13%

• Unemployment from 3,5% to 18%

Development of Tekes’ public funding for industrial R&D1991-99… and 2007-

Role of states in innovation?

Difficult.

Markets – opportunities for business and growth People – competencies, hard workPublic Funding – market failureIncentives – Wealth creation, IP protection etc. Vision – social atmosphere

5

IP system

State intervention

increases

TaxationEducation system

Public R&D Funding

Public Venture Funding

Public Investment

funding

Role of State of States in Research and Innovation Policy

State Aid

Efficient administration

Internationalization Services

Public procurement

Market Regulation

Bigger market failure

Public Research

Investing in innovation

Mikko AlkioDubrovnik

World Bank Innovation seminar

In Health Care (HC)?

3 BillionEUR

Why Finland is so weak in HC innovation?

• HC system too decentralized, no reforms• Imbalanced market development (due to more than 300

local communes being responsible of HC services) • Weak IP system (in the history), no innovative national

champions with strong exports• Sporadic (bottoms-up) project based research and

innovation funding, no clear policy choices• Very weak F-RDI investment objectives• Too strong emphasis in public funding in general

“development” and may be also in services, back to technology financing?

Should we use 3 billion EUR (btw taxpayers money!) also in next 10 years for HC related RDI?

In yes, how should we do it?

Key points, in general

• Long term investment in the education system– Great global demand for competitive, creative and hard working labour (btw – are we

hardworking anymore?) • Investments in the innovation system with clear general and sector based

objectives:– World class science – Commercialisation of inventions (innovations)

• Innovation (and competition) friendly markets– Mobile saga in the Nordic countries in the 1990s – unfortunately no other positive

examples exist!– Health care could be the next?– Innovation friendly pharma regulation / reimbursement system

• IP is still crucial!– IP Policy: open innovation requires strong IP protection– How to acquire and link foreign ideas, technology and IP with national innovation

system?

Mikko Alkio, PartnerEmail: mikko.alkio@inventiolegal.comTel. +358-50-4135502 Skype: mikko.alkiowww.inventiolegal.com