The Finland government started pursuing the innovation policies from 1980s. The government policies and an instrument on innovations has now made the country to be among the innovation leaders in Europe. Its policies on innovation has led to the substantial growth Nokia Corporation that has become one of the leading telecommunication companies in the world and its development has also led to the success of Finland Economy.
In 1970s and 1980s, Finnish government launched the development R & D cooperation and programs to modernise the university system; the purpose was to improve science and technology and to create more jobs and the development of information technology, the (Peter, Susan. 2003. P. 77). Additionally, Finnish government launched a program called Technical Research Center of Finland in 1972, this was to develop technical oriented research program in the country.
There was also a substantial support for the Finnish firms, the government in collaboration of Bank of Finland disbursed R & D loans and grants for research and development. Thus, in 1980 and 1990s, Finland’s innovation policies became more improved than most other industrialized countries. The industrial export rose from 4 percent in 1980s to 11 percent in 90s. When Finland recovered from recession in 1990s, the government created Science and Technology Policy council of Finland in 1996, the council was to focus on the development of information technology, education and the improvement of R & D.
Between 1997 to 1996, Finnish government spent total amount of 250Million EUR for the funding of research and development and improvement of research in technological sectors, it had also re-organised the Technical Research Center oF Finland (VTT) in 1972 . (Peter, Susan. 2003. P. 79) The chart above reveals the innovation performances of Finland in 2007. The information from the chart reveals that Finland ranks as one the most innovative country in the EU and is among the group of country that is leading in innovations.
Finland is also among the top three EU countries in the improvement of Innovation Drivers, Knowledge Creation and Applications and it is among the top three European countries that lead in innovation of Tertiary education, Public and business R&D expenditures. The country is also leading in the innovation of Early-stage venture capital, and patenting but its performances but is weak in Intellectual Property where it is below EU average. (PRO INNO EUROPE)