Innovation Research

Opportunities and bottlenecks of system-level changes


System-level Innovation and Change in Evolving Global Wireless Communications Industry
Hanken School of Economics: Taina Tukiainen

This research proposal is concerned with the strategic evolution of the global wireless communications industry. It focuses on system-level innovation and change in the different layers of the industry during the period 2000-2012, and intends to further augment and expand the empirical and conceptual foundation for better understanding the directions and evolution of the industry beyond 2012. The research will provide useful insight for corporate-level platform strategy development for Finnish incumbents (e.g., Nokia), as well as guidance for Finnish startup firms eager to join and contribute to the ecosystems developing around the leading corporate platforms. The insights generated by the research will also usefully inform government policy with respect to further stimulating entrepreneurship and innovation in this crucial sector of the Finnish economy.


Transnational Private Regulation and System Level innovations in Global Food Value Chains
Turku University of Applied Science: Kaisa Sorsa

Transnational Private Regulation (TPR) and system level innovations in global food value chains aims at finding out what is the mechanism between TPR, contractual networks and system level innovations. The proliferation of TPRs in global value chain management offers a rich research object for system level innovation and learning. Research findings will contribute to the internationalisation of Finnish food industry.

University sector

Universities, Funding Systems and Renewal of Industrial Knowledge Base
ETLA, VTT, University of Helsinki, Aalto University: Terttu Luukkonen

The project studies the ways in which the ongoing structural change in universities provides framework conditions for the various funding mechanisms enabling or hindering societal/economic utilisation of university research and the role of the universities in the renewal of the knowledge base of the Finnish innovation system. Fulfilling this role is an important prerequisite for the renewal of the country's industrial and economic base. The perspective is systemic, though the study will collect information at the meso and micro level. The project aims to study the separate and combined impacts of the various research funding mechanisms and instruments on research paying special attention to innovativeness and innovation in university research. The project will collect case studies, carry out a survey and utilise documents and other studies. It will engage in intensive international collaboration and will carry out case studies or collect relevant information from a number of other countries.


Technology choices, experimentation and system-level change from the viewpoint of economics
Research Institute of the Finnish Economy, ETLA: Mika Maliranta

Finland has advanced from a technology follower towards a technology leader. As a result, firms' key decisions regarding technology choices are increasingly risky. Experimentation in the markets and reallocation of resources between firms are now key mechanisms of economic growth. While many firms will unavoidably fail, the potential returns in the global markets are huge. However, for various reasons (e.g. agency problems) there may be too little experimentation and risk taking compared to the social optimum. This calls for a policy intervention. The aim of this project is to facilitate policy design by studying firm level incentives and constraints as well as system-level changes related to R&D and technology choices. We provide new data and indicators about the links between firms' financial situation, productivity and growth. We also develop numerical models of firm dynamics and use them with Finnish firm data to understand the mechanisms through which financial constraints and firm level choices influence, with various feedback mechanisms, aggregate productivity. Such tools are also needed for (pre-)evaluation of alternative policies.