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National Policies for

Service Science and Innovation

Case Finland

Prof. Jari Kuusisto

Lappeenranta University of Technology
Department of Industrial Management

2009 International Conference on Service Science

May 14-15, 2009 • Beijing, China

1 Jari Kuusisto
Services are now recognised

• Policy makers are increasingly recognising that

services have central role in the economy

• In the EU-level consultation, 79% of respondents feel

that there is a need for a specific service innovation

• A well-functioning services sector is key to the overall

economic performance of OECD countries and to the welfare of
its citizens.

OECD, 2005, Growth in Services Fostering Employment, Productivity and
2 ©Jari Kuusisto European Commission, 2008, Towards a European strategy in support of
innovation in services: Challenges and key issues for future action.
Research funding in Finland
• Funding of Service Science related projects

Ministries Ministry of Educa9on Ministry of Employment

and Economy

Funding agencies Tekes Academy of Finland

Universi9es, Polytechnics and
Public Research Ins9tutes
Research performers

Businesses and Private Research Ins9tutes
3 ©Jari Kuusisto
Research funding in Finland
• Funding of Service Science related projects


Funding agencies

Research performers

4 ©Jari Kuusisto
There is a pressure to develop services
• Smile curve drives businesses
• Intangible parts of the value chain are increasingly important revenue generators
for manufacturing industries

Rate of
return The value of manufactured
products is increasingly based
on intangibles

E.g., brand value of a Volvo, BMW,

Mercedes cars

R&D Production Sales services

5 ©Jari Kuusisto Source: Takada, 2003.

Service science in Finland
• Service Science is picking up in Finland
• There are developments on various levels of the system
• Strategic, structural as well as functional activities

• Key developments related to service science

• Launch of a national innovation strategy

• Structural changes in the university system

• Service science related activities

6 ©Jari Kuusisto
Service science is picking up in Finland
• Several positive developments over the last two years

• New innovation strategy recognises that

• All forms of innovation are important, also non-technological
• Users have important roles in the innovation process

• Structural changes in the university system

• Creates multi-disciplinary research and education opportunities

• Support programmes and financing for service innovation are growing

• Serve R&D&I programme by national innovation agency Tekes
• All technology programmes allow service development

7 ©Jari Kuusisto
Starting point - Finland

• Finland has been successful in implementing effective

technology policies
• In order to continue success there is a need to develop new policy

• New national innovation strategy was launched in 2008

• All forms of innovation matter - also service innovations
• Public sector innovations are recognised as important
• The concept of Demand- and User-driven innovation policy is introduced

• Good strategic position for Services Science


8 ©Jari Kuusisto
Structural changes supporting SSME

• In order to facilitate multi-disciplinary R&D and skills

development Finland is implementing structural changes
in the University system

• Merger of three major universities and 700 mill. Eur. Extra

resources are allocated to new
• Helsinki University of Technology
• Helsinki School of Economics
• Helsinki University of Art and Design

• Several key business leaders serve as members of the

board of directors at the Aalto university

9 ©Jari Kuusisto
Some operational activities

• Serve programme (2006-2013) objectives are

• to increase and broaden the services development of the Finnish industry and
• to promote academic research in service related areas

• SERVE provides businesses and research organizations

• project funding,
• national and international networks through seminars and
• industry specific forums and
• tools to support product management and IPR questions.

• Serve approaches service innovation from

• the multidisciplinary viewpoint, and
• combines theoretical and methodological knowledge from different scientific

10 ©Jari Kuusisto
Some operational activities II
• Service factory is operating within the Aalto university
• Combines technology, business and design elements
• Mission
• To be at the forefront in developing the 21st Century human centred
Service Society “Finland – Land of best service systems”
• Goals
• To lead scientific research in specific domains of digital services
• To provide strong service education program combining rigor &
• To create a broad research & development forum for service innovation
• Timing
• Service Factory is one of the leading global centres of expertise in 2015-

11 ©Jari Kuusisto
Education – “Service Factory Masters”

• Service Factory is coordinating & supporting service-

related master's programs in the Aalto University

• M.Sc. Program in Information and Service Management, HSE

• M.Sc Program in Retailing & Channels Management, HSE
• Master's Program in Service Design and Engineering, HUT – September
2009 – Computer Science & IT
• Master's Program in Service Management and Engineering, HUT –
September 2009 - Department of Industrial Engineering and Management
of TKK.
• Specialization module in Service Design, UAD – September 2009

12 ©Jari Kuusisto
Service science related challenges

• It is a novel area with limited number of service specific

elements and instruments readily available

• Organisations delivering policy / research / education

have little if any experience in service science activities
• They are facing a very steep learning curve

• It takes time to change existing institutions and practices

• Broader multi-disciplinary agenda and new target groups
• The range of development projects broadens significantly
• From technology development to business development

13 ©Jari Kuusisto
Thank you for your attention!


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