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Abstract
Denmark and Finland are small open economies with about
the same size of population.
Companies respond to globalization and grand challenges
by searching increasingly for
specialized products. This publication gives a short
excursion into some technological and non-technological
innovations and their competence requirements that
support this
specialization. Also, we describe recent developments in
national innovation strategies in both countries. In both
countries, there is clearly an increasing focus on
innovation through customer solutions. Close contact and
cooperation with customers is a rule. Furthermore,
combining services like maintenance, monitoring, and data
management with products is a common trend. In general,
service providers are willing to change their business
more towards operating their client's businesses. The
development requires an analysis of the practices that
result in customer and stakeholder value. We can see that
digitalization indeed affects the business ecosystems and
business models. ICT understanding should be the basic
competence in management. The need for digitization, for
remote monitoring and collaborative supply chains (i.e.
for process improvements) has been and still is a key
driver for the renewal of manufacturing in Finland.In
Denmark ICT has possibly less served as a driver for
innovation but the situation is now about changing.
Profitability effects are positive for process
innovations although these do not increase productivity,
at least if not combined with product innovations. This
suggest that process innovations are important for
improving efficiency, but this may be because of the
improvement of cost efficiency rather than an increase in
output. Digitalization is an important opportunity for
renewing manufacturing. This opportunity is firmly rooted
in technological advancement in the area of intelligent
technologies, but it does not realize itself via
technology push. Innovation locates in value networks.
Digital transformation requires that innovation processes
are agile and networked. Even the smallest companies are
willing to reinforce their networking with other
companies. On the other hand, large companies have
started to implement lean start-up methodologies. In
addition, recruitment and hiring has become one of the
most critical competences in companies, being possibly
even more important than the development of a new digital
technology inside the company. Companies should have
people who can handle the task of
creating new innovative solutions. With the advent of IT
start-ups and their new funding schemes, a new business
culture is coming ashore and penetrating the markets.
Companies that have adopted a new business culture, IT
services companies in the forefront, are typically lower
in hierarchy, more transparent in their internal
communication and flexible and faster in their
operations. They are more creative, problem solving and
disruptive innovation is being built-in in their business
models, which often are hyper scalable. In these
companies, organizational capital and organizational
competences are key for business development. They invest
more in new designs and brands, in developing new
business models and management systems, i.e. in
non-technological innovations.
Original language | English |
---|---|
Place of Publication | Espoo |
Publisher | VTT Technical Research Centre of Finland |
Number of pages | 135 |
ISBN (Electronic) | 978-951-38-8558-8 |
Publication status | Published - 2017 |
MoE publication type | D4 Published development or research report or study |
Publication series
Series | VTT Technology |
---|---|
Number | 302 |
ISSN | 2242-1211 |
Keywords
- innovation management
- innovation policy
- industrial renewal
- digitalization
- industrial internet
- Denmark
- Finland
Fingerprint
Dive into the research topics of 'Critical competences for industrial renewal in Denmark and Finland'. Together they form a unique fingerprint.Projects
- 1 Finished
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Innomitta II: Critical Competences for Value Creation in the Danish and Finnish Manufacturing: new ways to measure intangible capital
Naumanen, M. (Manager), Lehtoranta, O. (Participant), Simons, M. (Participant), Bloch, C. (Participant), Piekkola, H. (Participant), Eklund, C. (Participant) & Huovari, J. (Participant)
1/01/15 → 31/07/17
Project: Business Finland project