The European Council of Civil EngineersMeeting of the General Committee June 7, 2002Research and Development in Finland and achievements in civil engineering and construction Dr Veli-Pekka SaarnivaaraDirector General, Tekes: The European Council of Civil Engineers Meeting of the General Committee June 7, 2002 Research and Development in Finland and achievements in civil engineering and construction Dr Veli-Pekka Saarnivaara Director General, Tekes Randamp;D investments in Finland Impacts of the Randamp;D investments in national ecoomy and wellbeing Future challenges The Finnish Real Estate and Construction Cluster #36034


R&D input in some OECD countries: Sources: OECD, Main Science and Technology Indicators Database and Statistics Finland Randamp;D input in some OECD countries OECD total Docs 26030 A 02 / 02-02 est. USA Japan Germany Sweden UK France Austria Norway FINLAND Denmark Canada UK Austria Denmark FINLAND Norway France Sweden USA Germany Japan Canada Percentage of GDP


Competitiveness of the day after tomorrow is decided today: Competitiveness of the day after tomorrow is decided today Finland’s investments in research and development have been successful Restructuring of the economy creates jobs and economic growth. Technology is the most important source of growth in productivity and the national economy. Technology affects society and prosperity in many positive ways. International competitiveness comparisons bear witness to a successful history. Public financing of technology encourages enterprises to innovation and research cooperation. Docs 30615 02-02


Slide4: Evaluations of the Finnish Science, Technology and Innovation Environment In a comparison made by the University of United Nations (2001 State of Future) Finland is ranked 2nd in overall ranking. Finland is also ranked 2nd in Education, Technology and Information Indices. Finland is among the most advanced countries in Europe measured by several indicators relating to investments in Randamp;D, innovativeness, scientific publishing, patenting and high-tech exports according to the report made by the Research DG of European Commission (2001). Results are based on statistical key figures which measure the inputs and impacts of national innovation and research policies. According to a United Nations Development Programme (UNDP) report released in 2001, Finland is the most advanced country in creating and using technology. In the report, technological development is estimated by the Technology Achievement Index (TAI), which measures the capabilities of countries to create and utilise technology in a network economy. IMD (International Institute for Management Development) ranks Finland second in overall competitiveness in 2002. According to WEF (World Economic Forum), Finland is ranked 1st in current competitiveness, growth competitiveness and economic creativity. In innovation capacity Finland is ranked 2nd and in technology 3rd. Sources: THE UNITED NATIONS UNIVERSITY: The Millenium project 2001 EU: Indicators for benchmarking of national research policies. Key Figures 2001 - special edition UNDP: Human Development Report 2001 IMD: The World Competitiveness Yearbook 2002 WEF: The Global Competitiveness Report 2001-2002 Docs 20377


High tech exports: High tech exports Sources: OECD and Statistics Finland EU Ireland % of total exports of goods Norway USA Japan Denmark Great Britain Netherlands FINLAND Switzerland Canada France Sweden Germany Docs 29653 04-2002


Structural change in Finnish industry from the development of employment standpoint, orientation: Structural change in Finnish industry from the development of employment standpoint, orientation #15584 Orientation Science-based Specialised supplier Labour-intensive (index, 1980 = 100) Scale- intensive Raw material-inten. Source: Etla B173: Countries compete for investment - Finnish technology attracts foreign firms.


Productivity of labour in industry: Productivity of labour in industry Added value in relation to working hours FINLAND Sweden Netherlands Great Britain France Germany Japan Canada USA USA 2000 = 100 Docs 29653 04-2002 Source: Statistics Finland, Mika Maliranta


Environmental quality and growthcompetitiveness in 2001: Environmental quality and growth competitiveness in 2001 ESI index Growth competitiveness ranking Source: World Economic Forum (WEF) ESI = Environmental Sustainability Index Docs 29653 04-2002


Co-operation between companiesShare of co-operating companies of all innovating companies: Co-operation between companies Share of co-operating companies of all innovating companies Source: Towards a European Research Area - Key Figures, Special Edition. EU 2001 % Docs 29653 04-2002


Technology Strategy : Technology Strategy Business competence in the networked economy Development of industrial clusters: competitiveness and renewal of existing industries, birth and growth of new businesses Welfare in line with sustainable development Intelligent products, processes and systems Sustainable development Welfare Knowledge- intensive services Information and communications technology Bio- technology Material technology General trends: globalisation, knowledge and competence, digital era, networked economy, sustainable development, social development, technological trends Docs 17284 04-2002


Key Areas of Industrial Renewal andWelfare-promotion: Information and communications technology Material technology Biotechnology Business competence in the networked economy networks with new value cluster cooperation fast commercialisation of ideas Key Areas of Industrial Renewal and Welfare-promotion Intelligent products, processes and systems adaptive and intelligent products, materials and systems navigation and identification virtual models Welfare information and communications technology for health care functional foods targeted pharmaceuticals and diagnostics healthy and safe living environment Docs 17284 04-2002


The Finnish Real Estate and Construction Cluster: The Finnish Real Estate and Construction Cluster The Cluster Competitiveness Subclusters and their dynamics Policies and strategies Building and construction policy programme Vision 2010 Technology strategy of the Federations of industries Tekes technology strategy for the Real Estate and Construction Cluster National technology programmes


Slide13:


Foreign Trade of Building Materials and Products (Finland): Foreign Trade of Building Materials and Products (Finland) Import Export Source: Customs Statistics


Slide15: Clusters in the construction technology sector Building Infra Well-being Wood products Logistics Energy Building services Mechanical engineering ICT Forest Transport equipment Real estate Environment Service Building-product industry


Dynamics of Finnish Industrial Clusters: Real Estate and Construction Information and Communications Metal Forest Chemical and Bio Energy Welfare Food Environment Dynamics of Finnish Industrial Clusters Technology and competence are sources of renewal Docs 17284 04-2002


Dynamics of the Real Estate and Construction Cluster: Dynamics of the Real Estate and Construction Cluster Building services and systems Software products and services Design and consulting Demolition and recycling Facility management Construction products Construction industry Facility services Renovation Specialised construction Product and process services Total cluster Foundations for a good life and productivity


Slide18: 1. Facilities and channels for business 2. Materials and systems to produce added value for customers 3. From customer interface to management of customer relations 4. From project expertise to process expertise 5. The real estate and construction cluster is becoming a significant user of ICT 6. Sustainable development and environmental values are the foundation of development and business 7. Business may be local, but competition is always global 8. From production to service business Changes and megatrends in the real estate and construction sector


Slide19: Three components of strategy Change is needed in the basic philosophy of this traditional sector From minimising investment to maximising added value The mission of Tekes’ construction technology unit Making Randamp;D part of normal business Making business thinking part of research


Technology programmes: Technology programmes VPS/ 01-05/dk Steering enterprices Tekes preparing co-ordi- nating decision making Funding Grants Loans Capital loans Company Randamp;D projects Public research projects Synergy Networking Part financing Implementation of results of public research is based on parallel execution and networking with company projects. 50 on-going programmes in 2001 with a total extent of EUR 1.3 billion a programme lasts typically 3-5 years annually 2000 company participations annually 800 research unit participations Tekes usually finances * 60-80 % of university projects * 25-50 % of company projects


Slide21: ÄLY- Intelligent Automation Systems 2001-2004 UTT- Business Consepts for Industries 2000-2004 iWell- Well being 2000-2002 Healthy Building - Building technology, indoor air quality 1998-2002 Companies’ own projects and programmes Technology Programmes linked with the Building Cluster Programme ELO- Logistics in e-business 2002-2005 Independent projects INFRA - Construction and Services 2001-2005 CUBE - Building Services (2002-2006) Rembrand - Real Estate Management and Services 1999-2003 ProBuild - Progressing building process 1997-2001 RYM- Environmental Technology in Construction 1998-2000 Building Cluster Programme (2003-2007) VERA - Information Networking in the Construction Process 1997-2002 OPN 05.06.2002


Slide22: Target areas of the Building Cluster Programme Globally local Partnering 4. Mass-customising and business process models Buildings, systems and services will be developed exploiting partnering, best practise solutions and applying ICT Implementation/ Education 1. Understanding of customers needs - producing added value Added value for users, owners and society 2. Life Cycle and Environmental Competence Sustainable development is value added when implemented in construction business 3. Knowledge Management and ICT tools ICT technology will be brought into business processes OPN 05.06.2002


Slide23: National technology programmes in the construction sector · life-cycle properties in building services · procurement procedures and networked service processes · systems for updating of spaces · making use of ICT and improvement of energy efficiency · networked service concepts and life-cycle co-operation · making the quality and functionality of real estate support companies’ core business · investment in real estate to generate and promote the business of the end user · data transfer between the parties involved · IT becomes part of the building process · life-cycle thinking applied to information · information networks and using information technology in building · services and business concepts · ventilation and building services · moisture and emissions · procurement processes · expanding and networking expertise · making use of information technology · life-cycle systematic and the environment Priorities


Energy, Environment and Construction Technologies: Energy, Environment and Construction Technologies Information Networking in the Construction Process - VERA Healthy Building Value Added Wood Chain Technology and Development Programme for the Furniture Sector - DIVAN Technology and Development Programme for the Stone Industry - STONE Real Estate Management and Services - Rembrand Construction and Services - INFRA Building Services Technology Programme - CUBE Construction and Wood Technology Programmes in 2002 1997-2002 1998-2002 1998-2003 1999-2002 1999-2002 1999-2003 2001-2005 2002-2006 44 23 50 17 10 21 24 27 5 15 10 6 10 5 8 - 57 80 40 54 110 40 42 - Docs 30256 F 06B /02-03