ANU LYYTINEN Finnish Polytechnics in the Regional Innovation System – Towards New Ways of Action ACADEMIC DISSERTATION To be presented, with the permission of the School of Management of the University of Tampere, for public discussion in Paavo Koli Auditorium, Kanslerinrinne 1, Tampere, on April 29th, 2011, at 12 o’clock. UNIVERSITY OF TAMPERE Finnish Polytechnics in the Regional Innovation System Anu Lyytinen Finnish Polytechnics in the Regional Innovation System – Towards New Ways of Action 2011 © Tampere University Press, and the author Higher Education Group (HEG) School of Management University of Tampere Finland Higher Education Finance and Management Series Editorial Board: Professor Seppo Hölttä (chair, University of Tampere) Research Director Timo Aarrevaara (University of Helsinki) Professor Peter Maassen (University of Oslo) Professor Ari Salminen (University of Vaasa) Professor Jari Stenvall (University of Lapland) Series Editor: Vuokko Kohtamäki Assistant Editor: Elias Pekkola Sales Bookstore Taju P.O. Box 617, FIN-33014 University of Tampere, Finland tel. +358 40 190 9800 fax +358 3 3551 7685 [email protected] www.uta.fi /taju http://granum.uta.fi Page design Sirpa Randell Cover Mikko Reinikka ISBN 978-951-44-8407-0 (nid.) Acta Electronica Universitatis Tamperensis 1063 ISBN 978-951-44-8408-7 (pdf) ISSN 1456-954X http://acta.uta.fi Tampereen Yliopistopaino Oy – Juvenes Print Tampere, Finland 2011 Contents Acknowledgements...................................................................................................... 9 Abstract...................................................................................................................... 11 Tiivistelmä................................................................................................................. 13 1. The.change.of.the.orientation.of.the.higher.education.institutions . in.the.Finnish.polytechnic.context...................................................................... 15 1.1 Policy context .................................................................................................... 15 1.2 Research context ............................................................................................... 19 1.3 Aims of the research ........................................................................................ 22 1.4 Structure of the study ...................................................................................... 23 2. Polytechninics.in.the.changing.environment.................................................... 25 2.1 The changing role of higher education institutions in the knowledge society – challenges of the innovation policy to higher education institutions ...................................................................................... 25 2.1.1 Higher education institutions as part of the development of the welfare state ................................................................................ 25 2.1.2 Higher education institutions in the national innovation policy and system .................................................................................. 26 2.1.3 Regional innovation policy and higher education institutions ...... 32 2.2 The Finnish polytechnic system as part of the changing higher education policy ............................................................................................... 36 2.2.1 Establishment of the Finnish polytechnic system as the response to the needs of the knowledge society......................... 36 2.2.2 Frames for the polytechnics’ regional engagement .......................... 40 2.2.3 Polytechnics as higher education institutions .................................. 46 3. Innovation.in.the.regional.context..................................................................... 48 3.1 Concept and typologies of innovation .......................................................... 48 3.2 Evolution of innovation ................................................................................... 50 3.2.1 From linear models to interactive innovation .................................. 50 3.2.2 Innovation system ................................................................................. 52 3.2.3 Regional innovation system ................................................................ 56 4. Entrepreneurship.in.the.higher.education.context............................................ 58 4.1 Entrepreneurship in the higher education literature .................................. 58 4.2 The organisational dimensions of entrepreneurial higher education institutions ...................................................................................... 67 4.2.1 Reconciling academic and managerial values – strengthened steering core ............................................................... 68 4.2.2 Spanning the external boundaries of the organisation – expanded developmental periphery ................................................ 72 4.2.3 Seeking external resources – diversifying the funding base ......... 75 4.2.4 Increasing the interaction between core and environment – stimulated academic heartland ....................................................... 76 4.2.5 From institutional idea to integrated entrepreneurial culture ....... 77 5. Research.data.and.methodological.choices........................................................ 79 5.1 Multiple case study design .............................................................................. 79 5.2 Limitations of the research ............................................................................. 88 6. Results.of.case.analyses:.changing.polytechnic.organisations . and.practices......................................................................................................... 90 6.1 Seinäjoki Polytechnic – facilitator of the regional innovation system ................................................................................................................ 90 6.1.1 South Ostrobothnia as the regional innovation environment ....... 90 6.1.2 Seinäjoki Polytechnic’s responses ....................................................... 92 6.2 Satakunta Polytechnic – regional technology developer ......................... 102 6.2.1 Satakunta as the regional innovation environment ....................... 102 6.2.2 Satakunta Polytechnic’s responses ................................................... 104 6.3 Jyväskylä Polytechnic – diversified regional developer ............................ 112 6.3.1 Jyväskylä urban region as the regional innovation environment ........................................................................................ 112 6.3.2 Jyväskylä Polytechnic’s responses .....................................................113 6.4 Tampere Polytechnic – regionally recognised education provider ........ 121 6.4.1 Pirkanmaa as the regional innovation environment ..................... 121 6.4.2 Tampere Polytechnic’s responses ...................................................... 122 7. Results.of.cross-case.analyses:.towards.new.ways.of.action . –.polytechnics’.operations.models.in.different.regions................................... 127 7.1 Strengthening internal management capacity for regional engagement ...................................................................................... 127 7.2 Establishing linkages to the environment’s other actors ......................... 130 7.3 Stimulation of the practices in schools ....................................................... 136 7.4 Diversification of funding sources .............................................................. 139 7.5 Building an integrated culture .................................................................... 144 8. Conclusion.and.discussion.................................................................................147 References................................................................................................................ 154 Appendixes................................................................................................................181 Appendix 1. Invitation to stakeholder analysis ...........................................181 Appendix 2. Introduction of the research ................................................. 182 Appendix 3. Original Finnish interview quotes ........................................ 183 List of figures FIGURE 1. The administration of Finnish higher education institutions and research ............................................................................................................ 28 FIGURE 2. Types of innovation ..................................................................................... 48 FIGURE 3. Linear innovation models ........................................................................... 50 FIGURE 4. Interactive innovation processes ............................................................... 52 List of tables TABLE 1. Basic information about the case polytechnics .......................................... 81 TABLE 2. Characteristics of the regional innovation environments of the case polytechnics ....................................................................................... 83 TABLE 3. Revenue sources: Seinäjoki Polytechnic ..................................................... 94 TABLE 4. Linkages to the regional innovation environment: Seinäjoki Polytechnic ........................................................................................... 95 TABLE 5. Stakeholder map: