THE ROLE OF UNIVERSITIES IN URBAN POLES: A PRE-VISIT VIEW OF TAMPERE, FINLAND
Cities are widely recognised as playing a fundamental role in the promotion of the knowledge economy, but most research and policy has focussed on large cities with world-class educational and research institutes and advanced clusters of economic activity. There are clear and significant gaps in the knowledge of how smaller sized cities, with different levels and types of knowledge institutions and different levels of economic activity can compete within the knowledge economy. Yet such cities are recognised within European Union policy as a playing a vital role in the implementation of the Lisbon Agenda.
This report has been produced by the URBACT II network RUnUP in advance of a study visit to Tampere in Finland between the 13th and 14th October. The information has been researched and drawn together from a number of internet based resources (City of Tampere Website, Council of Tampere Region, Wikipedia, Hermia Science Park) and edited into one document. This report highlights the key support features linked to the objectives of RUnUP that will be visited during the Study Visit and the questions that the study visit is seeking to address.
INTRODUCTION TO TAMPERE Tampere is the third largest city in Finland and the largest inland centre in the Nordic countries. Currently there are over 200,000 inhabitants in Tampere, and almost 300,000 inhabitants in Tampere Sub-Region, which comprises Tampere and its neighbouring municipalities.
Tampere’s population density is 390 per square kilometre. Tampere is one of the three most rapidly developing regions in Finland. In 2004, the City of Tampere came first in an image survey comparing the largest cities in Finland. It was also the most attractive city among Finns who plan on moving.
Tampere’s city centre is surrounded by lake and ridge scenery, sited on an isthmus between lakes Pyhäjärvi and Näsijärvi. The Tammerkoski rapids run through the city. Pyynikki, which was formed by the action of ice and sea more than 10,000 years ago, is the world’s highest gravel ridge. At its highest it rises 80 metres above Lake Pyhäjärvi and 160 metres above sea level.
There are 200 lakes and ponds in Tampere, and a total of 450 in the entire region. 24 per cent of Tampere’s surface area is water and 76 per cent land. 18.5 per cent of the land has a town plan. There are numerous nature reserves in Tampere. Pyynikki and Viikinsaari near the city centre are the best known of them. Parks and green areas amount to 2,400 hectares, approximately 100 square metres per inhabitant. The city also has four allotment areas. The Hatanpää allotment, established in 1916, was among the first in Finland.
Approximately 17,500 enterprises operate within the Tampere central region, of which 80 per cent employ less than ten persons. The unemployment rate in the Tampere central region is slightly higher than the national average, at approximately 12 per cent. The gross national product per inhabitant is approximately EUR 24,000.
STUDY VISIT KEY QUESTIONS A visit to Finland exploring the role of universities and the wider development of innovation and enterprise inevitably raises a range of critical questions:
• To what extent is Finland driven by the Nokia Effect? • Would the Finnish economy have been as successful without Nokia? • Is Finnish success based solely on large-level investment in Research and Development? • On what platform is the success of a Small and Medium Sized Finnish city like Tampere based? • Can such success be replicated elsewhere? • What next for Tampere and Finnish Innovation?
THE REGIONAL INNOVATION SYSTEM The most important actors in the innovation system are the ones who create and use the new knowledge. These are the large R&D oriented companies and universities and research organisations: e.g. Nokia, University of Technology (TUT), University of Tampere (UTA) and VTT Technical Research Centre of Finland. Nokia has an important part of the private sector’s knowledge base in Tampere Region, because it has one of its largest research centres located in Tampere. (Kautonen et al. 2004, p. 179)
In addition to the universities, there are numerous educational institutions in Tampere Region which provide skilled labour force for private and public sectors. These are Pirkanmaa Polytechnic, Tampere Polytechnic, Häme Polytechnic with one unit and many vocational institutions. Also contracts of apprenticeship are provided. In the 1980s and 1990s a number of intermediary and financial institutions were established in the innovation support infrastructure of the Tampere Region (Schienstock et al. 2004, p. 143). The most important intermediary organisations are Hermia Technology Centre, FinnMedi Research Centre, Professia Ltd and Innovation Research Development Tamlink Ltd. There are also several institutions that function as bridges between higher education and industry. These include for instance Digital Media Institute and Optoelectronics Research Institute. (Schienstock et al. 2004, p. 143)
There are many public and private organisations that finance innovation activities. These include for example municipalities, the Council of Tampere Region, and privately own Sentica Partners Ltd, Tutor Partners Ltd and other private venture capital companies National organisations that operate in Tampere Region regarding finance and innovation support are Tekes (Finnish Funding Agency for Technology and Innovation), Finnvera and regional EEDC (Regional Employment and Economic Development Centre. These are the three most important public innovation support organisations for companies (Kautonen et al. 2004, p. 183).
In the innovation system of Tampere Region the importance of interaction and cooperation is emphasized. The innovations are produced in social interaction and the interaction creates dynamics that is composed from the interaction on three levels: regional, national and international level.
On regional level the linear and interactive models are complementing each other. The Innovation process develops through constant learning and producing scientific knowledge. Thus innovations are produced in an interactive process where science, technology, learning, production and demand are interacting. The regional relationships have a great effect on producing innovations and the relationships are frequent and two way. This is the case especially between the large companies and universities and VTT. In Tampere Region the regional relationships and contacts play a major role in producing innovations.
In Tampere Region the enterprises have large vertical and horizontal networks that include subcontractors, research organisations, clients etc. The enterprises get the knowledge needed for the innovations from the universities and research organisations as scientific information, from the clients and subcontractors as information on markets and production. The interaction and innovation platforms and arenas are often composed according to the hierarchy of the organisations that are involved. In practice this means that the interaction about decision making, foresight activities and discovering possibilities has taken place between the executive level persons.
The operational level is dealing more in the innovation areas where mutual learning and transfer of “silent knowledge” takes place. These levels are not sufficiently interlinked and sometimes they do not come across at all. In the future the strategic level discussion and interaction should be enhanced to involve more actors. One of the future development needs related to the regional level is the need to increase cooperation regionally and between universities, research organisations and enterprises. In addition the cooperation between public administration and other actors (especially with the enterprises) should be strengthened.
The networks of the universities, research organisations and global companies outside the region are important and these networks should be strengthened. The universities provide important information on the global challenges to the region. Also the enterprises of the regional innovation system have important links nationally and internationally. It’s important to note that also the contacts and links of other actors can serve as a start to the cooperation between research organisations and enterprises. E.g. intermediary organisations can operate as creators of networks and contacts. In addition, the financiers are important partners on the national level.
The Tampere Region innovation system can be classified in three different ways.
Firstly it can be classified as an international research and development midpoint, as the network composed by research organisations and technology enterprises is especially strong and well developed. Secondly it can be classified as an environment for inner growth and innovation, as knowledge based enterprises are constantly evolving to the region. And thirdly is can be seen as a environment for constant learning. This is based on the fact that innovation is created as a result of the mutual learning process in the value network of enterprises. The knowledge from the universities and research organisations should be increased to these networks and the cooperation could involve also other than technology enterprises.
In the classifications of type one and two there is a need to develop business development services. Both of these environments require also a strong science and technology basis. In the second classification there is also a need to improve the venture capital.
KNOWLEDGE CREATION In Tampere Region two different models of new knowledge creation can be identified. In these models the actors (enterprise, universities and R&D organisations) are in constant interaction and the knowledge is diffused into several directions. The knowledge creation models can be divided as follows:
1) science based model with research organisation, university networks 2) market based model with enterprise networks
In Tampere Region the creation of technology based knowledge is especially strong. This is based on the high scientific level and knowhow. The aim is to produce innovations that create extensive economical benefits. In addition to the technology based knowledge, there is also market based creation of knowledge in the networks of enterprises. This takes place on a daily basis together with the clients and subcontractors with the objective to solve problems and make product and process improvements.
The regional innovation system in Tampere Region is a combination of both models. However the knowledge creation potential should be further developed. First of all the focus on the technology based knowledge should be widened, the technology knowledge is only one part of the new knowledge that is needed for creating innovations. Also wider business knowhow is needed to cover the overall chain: from clients’ needs, subcontracting, production, logistics to the service. Thus the strong technological knowledge is not solely sufficient, also social and organisational innovations are needed to support the dissemination of new knowledge.
The strong sectors in the region are metal industry, electronics, wood processing, ICT, KIBS (knowledge intensive business services) and chemical industries. Based on the good interaction especially between Tampere University of Technology and industry, the companies’ strong fields have also supported the high level research in the relevant fields. The good interaction, high-level research, education and strong companies are the basis for clusters that have been identified in the region in the following fields: machine construction, automation, ICT, health care technology. The clusters have been implemented also in the national centre of expertise programme that has given financing to the identified areas of strong competencies and knowhow in order to make them more competitive in the global context as well. During the new period, 2007-2013,new clusters have been identified. In Tampere Region centres of expertise will be implemented: health, wellbeing, future energy technologies, ubiquitous computing, digital content business, nano and micro systems and adaptive materials and intelligent machines.
REGIONAL UNIVERSITIES AND RESEARCH CENTRES The most important creators of the new knowledge in Tampere Region are the two universities; Tampere University of Technology (TUT) and University of Tampere (UTA) and VTT, Technical Research Centre of Finland.
TUT has one Centre of Excellence appointed by the Academy of Finland for the term 2006-2011: The Signal Processing Research Group. The leading edge fields of research in TUT are: signal processing based technologies, nano-photonics, biotechnology, intelligent mobile machines and hydraulic systems. In addition there are several strong areas of competence at TUT: software systems, telecommunications and electronics, machine and process automation, production technology and paper machines, energy technology, alternative energy sources and combustion processes, numeric methods related to field theory, the strength of materials and rheology, materials technology (metals, composites, polymers, ceramics, coating technology), industrial management, knowledge management and management accounting, urban planning and architectural design, structural engineering and building renovation.
UTA is multidisciplinary and committed to scientific research and to advanced teaching with the focus on society, economy, administration, culture and the health and welfare of individuals. UTA has a Centre of Excellence appointed by the Academy of Finland for the term 20082013 on mitochondrial disease and ageing. UTA has also a Centre of Excellence in higher education in several fields. There are some 15 400 degree students and 2 100 employees, of which approximately one half in teaching and research. (UTA 2006)
VTT is the biggest contract research organisation in Northern Europe. VTT provides highend technology solutions and innovation services. VTT specialises in applied research, concentrating on improving product and process technologies. There are five research areas present in Tampere: mechanical automation, construction, plastic and fibre technology, security technology and metallurgy, and information technology. VTT employs 250 persons in Tampere. (Kautonen et al. 2004, p. 178)
In addition to these above mentioned research and education institutions, a lot of research and development takes place at the R&D units of private companies. A good example is Nokia and its R&D unit. For the knowledge creation it’s important to have programmes and arenas for interaction. The aim is to offer a platform where persons and actors can meet, exchange information and create a common view. In Tampere Region several programmes and platforms have been or are currently operational. Centre of Expertise Programme, Innovation Council, eTampere Initiative (ended 2005), BioNext and Creative Tampere serve as platforms of interaction that is vital for the knowledge creation and diffusion.
HERMIA SCIENCE PARK TOUR Hermia is a science park near Tampere University of Technology (TUT). Hermia is located in Hervanta, a suburb of Tampere, Finland. Hermia is also acting as a technology centre for its region. Hermia offers office space and facilities for both small technology startups and larger companies. It consists of 100,000 m 2 of office space and is home to 150 companies and research organizations, for example to many research and development units of the cell phone manufacturer Nokia.
In the offices of Hermia was developed the first Nokia Communicator mobile phone, as well as Nokia's first camera-phone. The site is also home to one of the offices of Nokia Research Center, where among other activities the EFR and WB-AMR codecs were developed.
CENTRE OF EXPERTISE PROGRAMMEAS A TRIPLE HELIX OF TAMPERE The Tampere Region Centre of Expertise Programme coordinated by Hermia Ltd is one of 21 centres of expertise in Finland. The purpose of the Finnish Government’s Centre of Expertise Programme is to focus measures on key industries of national importance. The programme is founded on the utilization of regional expertise which is of an internationally high standard.
The programme’s operational model was renewed to become cluster-based for the period 2007- 2013. One of the programme’s aims is to enhance differentiation between regions and strengthen cooperation between centres of expertise. The national programme is implemented by 13 nationally significant expertise clusters and 21 centres of expertise in different regions. The Centre of Expertise Programme (OSKE) is a fixed term special government programme aimed at focussing regional resources and activities on development areas of key national importance. The programme promotes the utilisation of the highest international standard of knowledge and expertise that exists in the different regions.
The Government has challenged regional actors to cooperate in joint strategies by using relatively small funding incentives and at the same time giving them a high-level status in the Finnish innovation strategy. From the very beginning the carrying force of the programme has been the active cooperation between universities, research and development institutions, companies and municipalities.
The idea of The Centre of Expertise Programme is to concentrate on exploiting internationally top- level expertise on the basis of regional strengths. The regional operating models adopted in previous periods and the current programme networks create suitable conditions for the new programme period.
The starting point of the programme is cooperation between different actors within the region together with actors within the same cluster situated elsewhere. Pivotal cooperation parties are companies, universities, institutes of higher education, research institutes, technology centres and various sources of finance (cities, municipalities, regional councils, Employment and Economic Development Centres, especially their technology divisions and county administration boards). A new development platform in the programme is the cluster of expertise, used to intensify the cooperation between centres of expertise. The cluster of expertise aggregates the key actors in centres of expertise in different regions into broad cooperation.
The competence cluster is the network and cooperation forum for the centres of expertise active within it. The cluster of competence is formed from businesses and public corporations bonded with each other, whose interplay produces clearly demonstrable benefits. The most important element in the cluster of competence is network cooperation. The cluster of competence is formed from at least two centres of expertise situated in different regions, having complementary fields of expertise which can be defined on the basis of branch, technology, expertise or application. Clusters do not comprise entire branches of industry, but rather top-level expertise sub-areas of more functional clusters, or promising new sub-areas with development potential, with whose help centres can together develop the competitiveness and business activity of the whole cluster.
The centre of expertise forms a high-level expertise hub of national significance in its field or fields of expertise, the top-level expertise of which can be exploited by the Centre of Expertise Programme both regionally and nationally within the entire cluster. The centre of expertise, through its field of expertise, also has a national task in the implementation of the cluster of expertise programme. From a regional point of view, a centre of expertise may contain several fields of expertise belonging to different clusters. The objectives and measures of centres of expertise are defined in accordance with the needs and opportunities of businesses, both in the region and the entire cluster, and of other actors in the innovation system.
The centre of expertise is a network of regional operators implementing the national Centre of Expertise Programme in their region together with other members of the cluster, with activities based on a regional structure comprising businesses, universities, institutes of higher education, research institutes and technology centres.
The Tampere Region Centre of Expertise Programme is a participant in seven expertise clusters. Hermia Ltd has been implementing the national Centre of Expertise Programme in the central Tampere Region since 1995.
STRATEGY IN THE DEVELOPMENT OF THE ECONOMY AND INNOVATION ENVIRONMENT OF TAMPERE
Since 2007 Dr. Kari Kankaala has been working as the director of Business and Economic Development for City of Tampere. In 2002-2007 Kankaala was the managing director of Professia Ltd., a consultancy and development firm specializing on various aspects of service innovations, innovation system and management and knowledge transfer. Prior to that he was a director responsible for technology transfer at the venture capital arm of Sitra, the Finnish National Fund for R&D, where his task was to enhance the capitalization of the Finnish knowledge base, especially technology transfer mechanisms at and from Finnish universities and research institutions including licensing and investments in start-ups. Earlier in his career, Kari has been engaged in technology transfer activities both at universities and in the private sector in Finland and in the US. Kari is a past and present board member at some 15 venture capital backed firms and has acted as an expert in several innovation related working groups, committees and the like including the Innovation Program Committee in EU FP5.
The main task of the Business Development Centre is to plan and implement the city's business strategy, which sets general guidelines for the city's business and industrial structure. The Business Development Centre operates in co-operation with an extensive network of participants within the framework of a number of projects and initiatives. The most current projects include the BioneXt project, as well as initiatives focusing on general promotion of expertise and know- how. Bio-programme is a cross-disciplinary development project focusing on the research and development of health promoting biotechnology and its applications, research & development and global commercialisation.
The Business Development Centre provides advisory services in matters related to business and enterprises together with a number of partners, including the Employment and Economic Development Centre for Pirkanmaa, Ensimetri business service centre and the Tampere Chamber of Commerce and Industry. The Business development centre also commissions surveys and studies to support development activities, and co-ordinates the development of regional co- operation in the fields of business and industry. In addition, the Centre provides an interface between businesses and industry and the city administration in matters dealing with building plots and business premises, among other things.
DEMOLA OPEN INNOVATION CENTRE Demola is a ‘demo factory’, a multidisciplinary open innovation environment where researchers and students can co-create to develop new digital products and services with global market potential. Companies provide project ideas, concepts and guidance for student teams, who then develop the ideas further by building demos and test beds, doing trials and analyses, and creating business models.
Students are encouraged to create a personal profile on Demola’s web site and choose the projects they are interested in. Students then contact Demola staff, and together they search for team members in collaboration with universities and colleges. Once a project is started, partner companies give continuous guidance – about two hours a week – to the project team through weekly meetings, workshops and one-on-ones. Demola staff are on hand to provide support as well, about topics such as project management, development models and working methods. Companies will actually implement some of the projects if they are worthy, or the projects could potentially generate new start up businesses.
The shared physical workspace on Demola’s premises proved to be an important factor in fostering co-creation and an open innovation community. Demola is not just a work place but also an environment that is beneficial to innovation and provides an atmosphere open toward new working methods and continuous interaction with the various teams, companies and researchers.
Teams are working with unproven concepts, so they might run into unforeseen technical problems that need novel solutions. This reinforces the importance of a shared space because of how it enables teams to tap into the Demola community for problem solving and creation of new ideas. Best practices can be identified and distributed to other teams as well in such a close working environment.
In many teams, there are students from several universities or colleges. Having a neutral location that is conveniently located in the city center has enabled unbiased and constructive collaboration among people from different academies and organisations.