TURKU SCIENCE PARK IN 2010 Contents......................................................................................................................... 3 Review by the CEO.......................................................................................................4-5 Report by the Board of Directors..................................................................................6-7 TScP Kiinteistöt Ltd......................................................................................................... 8 Income statement and balance sheet 2010..................................................................... 9 Overview of the main business sectors Biotechnology landscape in Turku................................................................10-12 Case: Abacus Diagnostica enjoys fruits of its labour.......................................... 13 Applied ICT in Southwest Finland in 2010.....................................................14-16 Case: Fuugo – so simple a child could use it..................................................... 17 BioTurku®................................................................................................................18-19 Case: Pharmatest’s growing pains a thing of the past...................................20-21 Applied ICT..............................................................................................................22-23 Case: Sanako moved to EuroCity and cut its cord ........................................24-25 Centre of Expertise..................................................................................................26-27 Case: Rediscovering culture in the land of lakes................................................ 28 Case: Finnish food industry companies’ way abroad.......................................... 29 Business development.............................................................................................30-31 Case: Aqsens Ltd. senses when things are not right.......................................... 32 Case: Board games on the go – Tribeflame Ltd.................................................. 33 Marketing and Communication................................................................................34-35 Turku Science Park in the headlines in 2010..................................................... 35 Biocelex Ltd.............................................................................................................36-37 Innovate to Accelerate.............................................................................................38-39
REVIEW BY THE CEO
OPPORTUNITY TO FOCUS ON CORE COMPETENCE
REVIEW BY THE CEO
REVIEW BY THE CEO Through the reorganisation carried out at Turku Science Park Ltd., the company completely severed its ties with the real estate business and now focuses on services for enterprises and research. According to the new strategy, Turku Science Park Ltd. will focus on services for enterprises and research, and support the development of research-based and competence-intensive businesses in the Turku economic region to ensure the region’s competitiveness and appeal. The company’s existence and purpose are based on one of the basic prerequisites for the vitality of the Turku region: the well-being of enterprises. These goals are also important for the company’s largest owner, the City of Turku.
and management as well as matters related to research, sector as one of the significant competence and business teaching, students and personnel in the universities. The sectors of the future in Turku and in Finland. new law reduced government control of universities, offering them more freedom to operate. In connection with the company’s For the development of the uniAt the same time, the universities’ strategy process, its vision has versities’ new kind of operaown responsibility for their adminisalso been clarified, and the goal tions, it is very important to tration and finances increased. At the for 2015 is: “Turku Science Park bring the Turku Science Park beginning of 2010, the University Ltd. is an innovative and proactive, and the universities in the city of Turku and the Turku School internationally known influenceven closer together. of Economics merged to form a er of the economy that supports
new, increasingly multidisciplinary University of Turku. For the development of the universities’ new kind of operations, it is very important to bring Turku Science Park and the universities in the city even The reorganisation allows the company to concentrate on its closer together. New services benefitting all parties can be core task. Since a significant porproduced by increasing co-operation tion of the real estate business in and seeking new kind of synergies. The company’s existence and the Turku Science Park area was purpose are based on one of the moved to a designated company, Biocelex Ltd., a joint venture of Turku basic prerequisites for the vitalTurun Teknologiakiinteistöt Science Park Ltd. and Karolinska ity of the Turku region: the wellLtd., the professionals in this Institutet Holding Ab, is a developbeing of enterprises. ment company focusing on biotechbusiness area can also concentrate on their core competence. nology innovations and business deCo-operation between the companies can further increase velopment, operating on a commercial basis. To further the vitality and appeal of the Turku Science Park area. refine the operations of Biocelex Ltd., a process has been launched to attract the most notable Finnish universities in The new Universities Act came into effect at the beginning the field of Life Sciences to be the owners of the company of 2010, stipulating the universities’ tasks, organisation, and players. This strengthens the role of the Life Sciences
and commercialises innovations through its operations in select focus areas. Through our needs-based services and networked way of operating, we create significant added value for our customers and owners”. The set vision is very ambitious but not impossible to achieve. Now is the time to begin hard and determined work to achieve our goals.
Rikumatti Levomäki CEO, Turku Science Park Ltd.
REPORT BY THE BOARD OF DIRECTORS
REPORT BY THE BOARD OF DIRECTORS The City Council of Turku has approved a Competence, Entrepreneurship and Business programme that also guides the operations of Turku Science Park Ltd. In accordance with the City’s ownership policy, TScP’s tasks include commercialisation of innovations of the universities and enterprises in the area as well as the development of business operations in select areas of high technology. The focus areas are biotechnology / materials technology and applied ICT. Main tools to implement these tasks include pre-incubators, business incubators, business accelerators, project activities, and consulting related to business development. In addition, TScP has been the national co-ordinator of the HealthBIO cluster and a coordinator for the national Centre of Expertise Programme for Southwestern Finland. Biocelex Ltd., a joint venture of TScP, Karolinska Institutet Holding Ab and Turun Seudun Osuuspankki is an accelerator company created for the needs of the Life Sciences sector, operating on a commercial basis. Biocelex assesses the commercial potential of biotechnology innovations by utilising Karolinska’s tools and aims to make use of Karolinska’s investment fund, in which TScP is also a shareholder.
REORGANISATION On 30 June 2010, the Turku Science Park Group completed its reorganisation in which Turku Science Park Ltd. was divided into two new units, with the real estate business moving to a separate company, TScP Kiinteistöt Ltd.. Before the division, Turku Bio Valley Ltd. merged with Turku Science Park Ltd., and the rental operations of KOy Focu, previously controlled by Turku Bio Valley, were transferred to TScP Kiinteistöt Ltd. in the same manner as the other properties. After the division, the entire real property of TScP Kiinteistöt Ltd. was sold according to plan. Turku Science Park Ltd., established in connection with the reorganisation, now focuses on its defined core task.
COMPANY’S SHARES Turku Science Park Ltd.’s share capital is EUR 4,592,000, and the number of shares is 1,329,346. The subsidiaries do not own any parent company shares.
MANAGEMENT AND ADMINISTRATION At the beginning of the year, the composition of the company’s Board of Directors was as follows: Tom von Weymarn (Chairman), Tero Hirvilammi (Vice Chairman), Pauliina de Anna, Rabbe Klemets, Seppo Lehtinen, Björn Mattsson, Aleksi Randell, and Matti K. Viljanen. The Annual General Meeting appointed a new Board of Directors, consisting of Tom von Weymarn (Chairman), Aleksi Randell (Vice Chairman), Jukka Rinnevaara, Björn Mattsson, Matti K. Viljanen, Seppo Lehtinen, and Riitta Koskimies. Mikko Pukkinen, who was appointed to the Board at the Annual General Meeting, resigned on 25 November 2010. The Board convened ten times. The average meeting attendance rate of the Board members was 83%. Rabbe Klemets was acting CEO until 17 May 2010 when Rikumatti Levomäki became CEO.
PERSONNEL AND ORGANISATION At the end of the financial year, the Group employed 40 people, of whom 37 were with the parent company.
scope and structure of its operations and other factors affecting the development of its operations. The content of TScP’s services to enterprises and research as well as financing defined by the City is determined by the City of Turku in its annual budget. There are risks associated with the goal of expanding TScP’s external investment base. Through the reorganisation, the investment risk has increased while other risks have decreased.
OUTLOOK In order to streamline TScP’s operations, the strategy work launched in the autumn of 2010 covered the company’s operational policies. The strategy will be discussed by the Board of Directors in February 2011 and it will guide the company’s future operations. In accordance with the Group guidelines, TScP terminated the leases of its facilities at PharmaCity to end at the end of 2011, and the company will move to DataCity.
Audit The company’s auditor is PricewaterhouseCoopers with APA Johan Kronberg as Chief Auditor.
BOARD´S PROPOSAL FOR DIVIDENDS The parent company’s loss for the financial period was EUR 76,362.47 and the Group’s profit for the financial period was EUR 185,669.91. The Board proposes that no dividend be paid.
ASSESSMENT OF MAJOR OPERATIONAL RISKS AND UNCERTAINTIES In connection with the strategy work launched in the autumn, the Turku Science Park Group evaluated the major risks and uncertainties extensively with respect to the 7
TScP Kiinteistöt Ltd. TScP Kiinteistöt Ltd. was established on 30 June 2010, when Turku Science Park Ltd. was divided into two new companies, and the real estate operations were moved to a separate company, TScP Kiinteistöt Ltd. Before the division, Turku Bio Valley Ltd. merged with Turku Science Park Ltd., and the rental operations of KOy Focu, previously controlled by Turku Bio Valley, were transferred to TScP Kiinteistöt Ltd. in the same manner as the other real estate properties. KOy Focu was sold to Salmela-yhtiöt on 31 December 2010. In accordance with the Group guidelines issued by the City of Turku, real estate was divested. This took place at the beginning of 2011 when the last properties owned by TScP Kiinteistöt Ltd. were sold to Turun Teknologiakiinteistöt Ltd..
INCOME STATEMENT AND BALANCE SHEET
INCOME STATEMENT AND BALANCE SHEET THE NEW COMPANYâ€™S SIX MONTH PERIOD OF 1 July - 31 December 2010 INCOME STATEMENT
Materials and services
Depreciation and impairments
Other operating expenses
Financial income and expenses
3,407,421.32 -725,513.83 -1,139,842.01 -20,002.70 -1,344,499.00 177,563.78 8,106.13 185,669.91
Number of employees
OVERVIEW OF THE MAIN BUSINESS SECTORS
OVERVIEW OF THE MAIN BUSINESS SECTORS
BIOTECHNOLOGY LANDSCAPE IN TURKU In 2010, the biotechnology sector in Turku had plenty of good news, despite the fact that a lack of capital financing for high technology made it more difficult for companies to operate in Finland. Bayer Schering Pharma, a driver company in the area, increased the volume of its operations. The annual sales of the hormonal IUD Mirena increased to EUR 539 million, reportedly making it the most successful technology product of all time in Finland. PerkinElmer Human Health (also known as Wallac) has been reaching revenue of approximately EUR 130 million during the past couple of years. The company’s core business consists of screening studies, which clearly increased the company’s overall profitability due to their positive development in 2010. While the business operations for improving the well-being of the mother and the foetus strengthened in Turku, the company moved the manufacturing of its multi-label readers for pharmaceuticals and research to the UK and Singapore. Orion’s revenue grew by 10 per cent in 2010, amounting to EUR 850 million. Sales grew for Orion’s key products based on its own research, the cardiac drug Simdax and ICU sedative Precedex. The R&D unit in Turku increasingly focuses on the development of proprietary drugs. The employment outlook of both the R&D unit and the local pharmaceuticals manufacturing plant are positive. The co-
operation agreement published in January 2011 with the US-based Endo Pharmaceuticals for the development of anti-cancer drugs also increases the opportunities for success in the research and development of proprietary drugs.
PROFITABILITY AND INTERNATIONALISATION In addition to large companies, several SMEs and research operations achieved concrete milestones. The Turku-based diagnostics company HyTest exceeded its profitability objectives in 2010. Its revenue increased to EUR 9.1 million and operating profit grew to as much as EUR 3.1 million. Export amounted to 97 per cent of revenue. The strong growth was in particular attributable to the good market for immunological reagents used in the diagnostics of cardiac insufficiency. Biotie Therapies and Swiss Synosia signed a merger agreement which will result in Synosia becoming part of Biotie. The new company will have a product portfolio of nine drug development projects in a clinical phase, significant international operations, and offices in Finland, USA, and Switzerland. Through the merger, Biotie will become one of the world’s leading developers of central nervous system drugs, and positive Phase III results were published on nalmefene, the company’s product for treating alcohol dependency, at the end of 2010. Hormos Medical Ltd.’s parent company in the USA, QuatRx Pharmaceuticals Company, and Japanese Shionogi
agreed on the global marketing rights of ospemifene, developed in Turku. QuatRx will receive a USD 25 million signing fee and more than USD 100 million in milestone payments. In addition, QuatRx will receive royalties on the sales of the product. Ospemifene is the first estrogen-free option on the market to treat the symptoms of postmenopausal urogenital atrophy. Pharmatest Services Ltd, a Turku-based company providing nonclinical efficacy studies for the pharmaceutical industry, signed a framework agreement with the international conglomerate Bayer. Pharmatest provides disease models for evaluating the efficacy of drugs developed for the treatment of cancer metastases, osteoporosis, and inflammatory diseases, in particular. Galilaeus Ltd., a company based in Kaarina, manufactures active pharmaceutical ingredients and, for example, probiotics, and it multiplied its production capacity by establishing a manufacturing unit in Warsaw. This way, the company is able to provide its customers with more diversified service and operate effectively against competition from areas such as Asia. A new type of laboratory test for the genetic verification of the MRSA bacterium developed by Abacus Diagnostica Ltd., a diagnostics sector company, obtained a CE label allowing it to launch sales in Europe. The GenomEra CDXTM system that received marketing authorisation is the result of nearly two years of product development carried out 11
OVERVIEW OF THE MAIN BUSINESS SECTORS
with the help of the investment capital the company had collected and Tekes funding. MetGen Ltd., operating in the Turku Science Park business incubator, won the Cleantech company series in a European venture contest. One thousand contestants from 24 countries participated in the Eurecan European Venture Contest 2010. MetGen’s enzymes are used in the pulp and paper industry to make processes faster and more efficient, and to reduce waste. The Sfinx drug interaction database developed by Medbase Ltd, sprang from the Turku Science Park business incubator into an instant success. A co-operation agreement with Elsevier, the largest medical publisher in Italy, has already increased the company’s revenue to nearly EUR 1 million. The company is already making a decent profit, but it believes the agreement will enable its revenue to grow five-fold.
OPENING UP NEW RESEARCH The Finnish Medicines Agency Fimea, formerly the National Agency for Medicines, opened an office in the Turku Science Park at the beginning of October. Fimea is in charge of the authorisation and regulation tasks in the pharmaceuticals sector as well as the evaluation of medicinal products. Fimea’s presence in Turku is strategically significant since it is now easier for companies to receive guidance from the authorities to support their development operations. VTT Technical Research Centre of Finland has grown into an organisation of 75 people in Turku. It effectively obtains research funding for the region from the EU, among others. Among the most important new projects in 2010 was the EU funded TBI Care project launched together with the Finnish Brain Injury Research 12
and Development Centre (FinnBIRD), established by the Intermunicipal Hospital District of Southwest Finland. New projects have also sprouted-up in Turku through the co-operation agreement signed earlier with the German Bayer Schering Pharma AG. Researchers at VTT and the University of Turku discovered four enzymes affecting the body’s metabolism that can be blocked and thus prevent prostate cancer cells from growing. The research results can be used in both identifying the cancer type and developing pharmaceuticals. Direct Fuel, an international fuel project co-ordinated by the University of Turku, received funding of almost EUR 4 million from the EU. The objective of the project is to develop a method in which energy radiated by the sun would be directly converted into usable fuel by means of photosynthetic micro-organisms. The research is being carried out at the University of Turku Department of Biochemistry and Food Chemistry and at the Turku Centre of Biotechnology. Nine research partners from Europe and the United States are participating in the project. The growth of enterprises and product development in biotechnology requires long-term funding. In Northern Europe and Finland, the biotechnology sector has suffered from a lack of venture capital in the initial stage, in particular. There is cause for concern that inventions and findings never become products, or they are sold too early, resulting in the research environment that created the idea never getting to reap any financial benefits from them. Enterprises in Turku have had breakthroughs, but the lack of venture capital has stopped the generation of new biotechnology enterprises. Thanks to the new Universities Act, universities will be able to become shareholders of their spin-off companies, which might contribute to the establishment of new, competence-intensive enterprises as the capital investment activities start to recover.
OVERVIEW OF THE MAIN BUSINESS SECTORS
ABACUS DIAGNOSTICA ENJOYS FRUITS OF ITS LABOUR Case
The diagnostics company Abacus Diagnostica is having the time of its life. GenomEra CDX™, a new type of laboratory test for the detection of the MRSA bacterium developed by the company, received a CE marking covering the entire Europe in the autumn of 2010. Finally, the sales of this product, forecast to be a hit, can begin.
GenomEra CDX™ is a new generation DNA-based testing system for the detection of infectious diseases. The objective of Abacus’s product development was ambitious: to create the fastest and most easy-to-use test in the market.
– Speed is important since the patient can then move on in the hospital’s internal logistics. The hours the patient spends in quarantine are costly for the healthcare organisation and inconvenient for the patient, Palenius says.
The starting point for the product development was an innovation created at the University of Turku Department of Biotechnology: a disposable test strip containing all necessary chemical reagents. When diagnosing diseases, a sample from the patient is first placed into the test strip with a dropper. Then the strip is inserted into the pipette analyser that analyses it and gives the test result. And that’s all there is to it – testing cannot be much easier than that.
ABACUS BREAKING EVEN SOON
CEO Tom Palenius believes that Abacus now has a hit product, since GenomEra has proven infallible in the detection of the MRSA bacterium in test use, for example, at the Turku and Tampere University Hospitals. – GenomEra has not given a single false negative result in MRSA tests. A false negative result would be the worstcase scenario: if a test does not detect a patient’s infection, he or she might infect others at the hospital after being released from quarantine, Palenius says. GenomEra is also just as fast as promised. The result is obtained within about an hour of taking a sample.
In Life Sciences, product development is not for the impatient. It took about seven years for Abacus Diagnostica, established in 2004, to get its first product to the market, and the GenomEra CDX™ testing system contains knowhow that can be traced all the way back to the early 1990s.
new test strips, staying focused on infectious diseases and bacteria resistant to antibiotics. In the meantime, the GenomEra analysers keep processing test strips at hospitals, making money for Abacus with each bite. After so many years of depending on others, Abacus Diagnostica can finally start enjoying fruits of its labour.
3D illustration of the MRSA bacterium.
– The commercialisation cycle in biotechnology may be as long as 10-15 years, so the completion of GenomEra was a significant milestone for Abacus. To date, we have been relying on Tekes funding and capital investments, but in 2011 the direction of cash flow will change. External funding has already been secured for the current year, but in 2012 we will break even, Palenius says, excited. According to Palenius, there are really no limits to the application areas of GenomEra’s technology platform. The analyser and the MRSA bacterium detecting test strip developed by Abacus are already on the market, but that is just the beginning. Abacus is continuously developing 13
OVERVIEW OF THE MAIN BUSINESS SECTORS
OVERVIEW OF THE MAIN BUSINESS SECTORS
APPLIED ICT IN SOUTHWEST FINLAND IN 2010 The Turku and Salo region is Finland’s strongest cluster of ICT competence outside the Helsinki metropolitan area. According to the latest statistics, the region is a home to 1,500 enterprises focusing on ICT service and content production with more than 11,000 employees in total.
There is a clear change underway in the ICT sector with personnel decreasing in large companies and small, innovative enterprises being established. This was also noted in the June 2010 ICT barometer published by the Chambers of Commerce. Many enterprises in the sector have a positive view of the development of profitability and consider the availability of labour force to be good, although there is a shortage of employees with certain specialised skills.
INTERNATIONAL AGREEMENTS Several enterprises in the region announced they grew and internationalised in 2010. Teleste Corp. offering broadband and video networking technology announced both an agreement worth millions of euros with Israeli Hot Telecom and a video surveillance system to be supplied to the police force in Paris with Ineon. The company also strengthened its position in the Polish market by buying the Polish Satlan, providing IP, video and broadband solutions. Teleste’s result for 2010 clearly improved from 2009. The software company Neoxen Systems, which took its first steps in the Turku Science Park business incubator,
has been growing steadily and also been active in developing the region’s education sector. In collaboration with the region’s public sector players and its partner network, the company develops, among other things, a multi-language, open electronic operating environment for educational institutions. The Turku-based Sparknet and OpenSpark networks develop and continue their steady growth, thanks to MP-MasterPlanet and D-Link Nordic. New features of OpenSpark include, among others, wireless encryption policies and the option to use a closed home network.
SOLID COMPETENCE IN THE HEALTH AND WELL-BEING SECTOR Health and well-being technology has achieved a key position in the ICT operations in Southwest Finland. The IKITIK Consortium, specialising in the development of language technology in health care and based in Turku, received an award granted by the Turku Chamber of Commerce and the Foundation for New Technology for the ICT Achievement of the Year in Turku. The consortium’s op-
erations focus on the challenges of handling unstructured and often text-form data in health care. Solutions developed by the consortium will be implemented in the new T Hospital to be opened at the Turku University Hospital in 2012. Members of the consortium include Acentra Ltd., Lingsoft Ltd., Turku Centre for Computer Science (TUCS), the University of Turku Departments of Nursing Science and Information Technology, Kites ry and Turku Science Park Ltd. In 2010, the region hosted more events focusing on health and well-being technology than ever before. Enterprises were especially interested in the Konkarit Kertovat seminar series that concentrated on the product development of health technology products specifically from the point of view of quality and risk management. The event was organised by the Innowell Network project in co-operation with the Finnish Health Technology Association (FiHTA). In 2010, the Southwest Finland Health and Well-being Cluster was also established with the aim to network the key players in the cluster and create new growth in the region.
OVERVIEW OF THE MAIN BUSINESS SECTORS
NEW BUSINESSES A significant launch to generate new business in the region is the Innovation Mill project, in which Turku participates together with nine other Finnish cities. It is a joint venture of Nokia Corp., Technopolis Corp. and Tekes, that aims to refine unused ideas from Nokia into new business operations and enterprises. This way, the City of Turku is providing the city’s enterprises an opportunity to make use of Nokia’s portfolio of ideas. The Turkubased language technology company Lingsoft Ltd. was the first one to jump on-board. Another innovative growth enterprise project is Protomo, with operations in Turku and Salo, which has already worked as a launchpad for several new companies. Protomo, launched in 2008 and funded by, among others, the Finnish Innovation Fund Sitra, Centres for Economic Development, Transport and the Environment and the participating cities, wants to be more agile and flexible in terms of its ways of working compared to previous innovation workshops. Protomo helps create business and employment around new innovations or service concepts. The way of operating was introduced in Turku in October 2010.
programme projects, according to the statistics, and the Turku-based Gasera Ltd. was also among the most active participants with its six framework programme projects. An example of the successful international projects in the ICT sector is B21C (Broadcast for the 21st Century), a project that received an international information technology award, with the University of Turku, Åbo Akademi University, and Turku University of Applied Sciences as participants. The project developed High Definition TV and mobile TV technology, and Nokia, Digita and Elektrobit were the participating Finnish companies. Institutes of higher education and companies in Turku continue to work on the same topic in the international ENGINES project that was launched at the beginning of 2010. The region has also benefitted from national funding for research carried out in such places as the IKITIK consortium. Funding received from the Academy of Finland by truly interdisciplinary projects aiming to improve the quality of patient records and make them easier for laymen to understand totalled over EUR 1 million.
NATIONAL AND INTERNATIONAL JOINT VENTURES
STRONG ROLE OF INSTITUTES OF HIGHER EDUCATION AND THE THIRD SECTOR
ICT companies in Southwest Finland have succeeded well in joint European research and development ventures. Institutes of higher education in Turku have been particularly active in the EU’s seventh framework programme for research. In the EU statistics published in the autumn of 2010, the University of Turku was ranked fourth with its 41 framework programme ventures, immediately after VTT, University of Helsinki and the Aalto University Foundation. Åbo Akademi University had 13 framework
The higher education sector was quite active in 2010 as well. The University of Turku Departments of Mathematics and Information Technology as well as the Turku School of Economics Department of Management launched a new diverse Master’s programme in information security. In the autumn of 2010, the first students were also admitted to the newly established Master’s programme in biomedical imaging. The two-year international Master’s programme will be implemented in collaboration with the University of
Turku and Åbo Akademi University. The third sector was very active in the ICT sector in 2010. Co-operation between ICT sector enterprises in Southwest Finland was intensified through the establishment of Varsinais-Suomen IT-yrittäjät ry, VSIT (Southwest Finland Software Entrepreneurs Society). Its membership has been growing rapidly, and currently the association has about fifty members and significant supporting members. Varsinais-Suomen Tietojenkäsittely-yhdistys ry, VSTKY (Information Processing Association in Southwest Finland) also continued its active operations.
POWER OF COOPERATION In Southwest Finland, poor visibility of the IT professionals’ competence after they graduate from educational institutions in Turku is a challenge, as noted in the ICT Barometer. Another significant challenge is the varied and partly low utilisation of ICT in small and medium-sized enterprises in other sectors. Turku Science Park Ltd. has already addressed these challenges together with the region’s institutes of higher education and enterprises. One example is the ICT-portti project carried out jointly by the University of Turku, Turku University of Applied Sciences and Turku Science Park Ltd. and funded by the ESF, which helps small and medium-sized enterprises in Southwest Finland to use ICT. Small enterprises in particular waste a lot of valuable working time on IT problems which could be turned into more effective business through targeted assistance. This is what Turku Science Park Ltd.’s portion of the project, the TUTKA™ service, aims for.
FUUGO – SO SIMPLE A CHILD COULD USE IT Case
Remember the name Fuugo. It is a television and video application, developed by the Turku-based Axel Technologies, that will reportedly revolutionise watching TV. In December, this claim received support when Fuugo won the grand prize in the Mobile TV category of the TV Innovation Awards in Los Angeles.
Petri Kalske, CEO of Axel Technologies, says Fuugo is the result of a very simple but significant shift in thinking.
easy as sweeping your fingertip to the right or left on the screen. A sweep up displays the channel menu.
– We decided to swim against the current and, for a moment, not listen to our customers. Everyone was always asking whether we supported this or that standard, or whether our application worked on a certain platform. Nobody ever asked whether we had an easy-to-use TV application, or what kind of added value it provided for consumers.
– I’d say my four-year-old daughter would learn to use Fuugo within a minute, Kalske says and laughs. .
– Customers shouldn’t have to try and figure out what application or technology provides access to the TV programme or video clip they want to watch, Kalske says. So, two years ago Axel Technologies, a manufacturer of TV and video software for mobile terminal devices, started to develop Fuugo, a new kind of TV and video application. According to Kalske, Fuugo is the first application on the market that solves the problems the users of mobile TV and mobile video face.
WILD GOALS FOR FUUGO The jury of the TV Innovation Awards, organised in Los Angeles in December, agreed with Kalske. They awarded Fuugo with the grand prize in the Mobile TV category, commending the application for its innovativeness, commercial potential and likelihood of getting consumer approval.
OVERVIEW OF THE MAIN BUSINESS SECTORS
already been creating some minor international hype. We are in touch with large equipment manufacturers almost daily, Kalske says confidently. At the same time, Kalske himself runs from one capital investor to another asking for money. Axel Technologies has already found financers for Fuugo’s marketing campaign and is looking for more to be able to take Fuugo out into the world with a bang. – We don’t want to be able to just barely scrape by. We want Fuugo to be a global product. Our goal is to obtain at least tens of millions of users in a couple of years, Kalske says, outlining the plans.
– We are particularly proud of winning the award in the USA, away from our home turf, where we are not yet known. We think that if we can make it in the USA, we can make it anywhere since competition there is the fiercest, Kalske points out.
– Many smartphones already have several different TV applications and also a separate Media Player for video. Fuugo is just one easy-to-use application that offers you all the essential TV and video services, Kalske sums up.
According to its CEO, Axel Technologies has come to a watershed: the first Fuugo was delivered to a customer in January.
That is what Fuugo’s slogan is based on: Always something good to watch. Fuugo offers one application that contains all of the most essential TV and video content and is easy to use and manage. In Fuugo, changing the channel is as
– To exaggerate a bit, this will either sink or swim. We are naturally convinced that Fuugo will start swimming. Our product is interesting and good. It has
Fuugo offers TV and video services in one application.
OVERVIEW OF THE MAIN BUSINESS SECTORS
In 2010, BioTurku focused on activating local projects and promoting the international business opportunities of the region’s enterprises and service units. The 2010 operating year began in January with the BioTurku breakfast info event which introduced BioTurku’s strategic focus areas and the 2010 action plan to the region’s enterprises and institutes of higher education. In the summer, we organised a traditional Biotreffit networking event with the business incubator for regional SMEs.
SUPPORT FOR CENTRAL PROJECTS Turku Science Park has, together with the University of Turku and the Southwest Finland Centre for Economic Development, Transport and the Environment, participated in the international EU Drivers project aiming to discover and promote the business potential of researchers at Turku BioImaging. To support the productisation and service sales of the University of Turku Center for Disease Modelling and Turku Clinical Biomaterials Centre, BioTurku has been involved in compiling and funding the centres’ marketing brochures and has promoted the units’ customer acquisition at international fairs. In addition, BioTurku has supported a brochure on clinical research in Turku, compiled by the Southwest Finland Hospital District, which is expected to increase research business operations directed at international companies in Turku. Together with regional players – the Hospital District, universities, and enterprises – BioTurku has made preparations to set up and plan the Turku unit of the National Comprehensive Cancer Centre. The goal of the unit is to ensure first-class cancer treatment for patients and to integrate high-quality cancer research, teaching, and training. In connection with this, a Turku-based delegation of
enterprises and researchers participated in the European Cancer Cluster Partnering conference in Oslo with the aim to raise the international profile of competence offered by Turku in cancer research and treatment and to initiate co-operation with the Oslo Cancer Cluster.
CO-OPERATION IN THE BALTIC REGION Within the framework of the co-operation agreement signed by Turku Science Park and Heidelberg Technologiepark GmbH in 2008, an international Systems Biomedicine – linking genes to disease seminar for enterprises and researchers was organised in Turku. The attendees also visited Turku VTT. Thanks to the seminar, scientific cooperation between the regions has increased. BioTurku joined the core group of the Baltic Sea strategy flagship project Baltic Sea Health Region as a task force partner, which is likely to make it easier for participants from Turku to join EU projects in the future. The first joint project, HealthPORT, has already received funding. The goal of HealthPORT is to promote the productisation of inventions made in hospitals among SMEs. BioTurku organised a Finnish-Russian seminar together with the University of Turku and the Trade Representation of the Russian Federation in order to map co-operation possibilities in biotechnology. Our representatives also met with representatives of an organisation setting up the biotechnology cluster in the St. Petersburg area. Initial co-operation with them seems to look promising. The co-operation provides Finnish projects with a channel to participate in the capital investment programme of the Rusnano Corporation.
BIOTECHNOLOGY VISIBILITY In 2010, BioTurku updated the brochures on the enterprises and research in the BioTurku area, focusing on the
Further information: Turku Science Park Ltd. / BioTurku, Director Tero Piispanen, Tel.+358 400 781 683
international market. In addition, the profiles of the region’s diagnostics companies and the research competence of the institutes of higher education were compiled in a new diagnostics brochure. BioTurku participated in the joint Scandinavian pavilion of the BIO2010 congress, the world’s largest biotechnology event, in the USA. The BioTurku concept was presented directly to investor and customer candidates at the congress. Thanks to successful event marketing, a picture of the Finnish department was added to the congress website. In addition, BioTurku participated in European partnering events in the industry in such places as Barcelona, Munich and Oslo. In all, BioTurku representatives met approximately 70 customer and investor candidates on behalf of the region’s enterprises and service units in these events. As a result, further negotiations have already been conducted with several companies. Coaching related to EU funding was provided in the European funding opportunities for the biotechnology service sector event organised jointly with TEKES. The service sector was also presented with a capital investor survey carried out by Ernst&Young in a separate event. Motonori Imamura, from Japan, interned at BioTurku in the autumn and winter 2009-2010 through the EU’s Vulcanus programme. Imamura worked as a researcher in the BioCity proteomics team and also carried out market and enterprise surveys about Japan for BioTurku. Turku Science Park Ltd. also co-ordinated the national HealthBIO Centre of Expertise programme. Within the HealthBIO framework, a two-day annual seminar Get Together, the largest event in biotechnology in Finland, was organised in Tampere and in conjunction with it, a separate international partnering event was offered for companies. The events attracted approximately 250 participants in total. 19
OVERVIEW OF THE MAIN BUSINESS SECTORS
PHARMATEST’S GROWING PAINS A THING OF THE PAST Case
Pharmatest, a supplier of pre-clinical service products, struggled through a painful year during the recession. The company executed a merger under very difficult circumstances in the middle of the international financial crisis, but overcame the growing pains. According to CEO Jussi Halleen, the ordeal was an extreme learning experience.
In December 2009, Pharmatest came into existence through the merger of Pharmatest, Orthotopix and Genolyze in Turku Science Park. Pharmatest, founded in 1999, is a supplier of pre-clinical efficacy studies for the pharmaceutical industry.
sues that we had not anticipated. First of all, executing the merger required a surprisingly large amount of capital. Secondly, integrating personnel with the new company was not completely straight-forward. To be honest, the first year after the merger was difficult, Halleen says and sighs. .
product development in new indication areas. The latest piece of good news was the framework agreement signed with Bayer Schering Pharma in September 2010.
CEO Jussi Halleen says that the Orthotopix merger complemented Pharmatest’s service offering with new research models. However, the reasons for the merger with Genolyze, providing bioinformatics services, were different.
FACING NEW MERGERS WITH INCREASED WISDOM The merger took place against the backdrop of the international financial crisis that caused the majority of the issues.
– Pharmaceutical giants such as Bayer Schering usually don’t make this kind of framework agreements with small players, so this is a huge deal. It will be generating quite a bit of revenue, that’s for sure. In addition, it shows others that we are good at what we do, Halleen says, clearly happy.
– With the help of Genolyze’s bioinformatics, we will be able to develop our own product models and speed up the analysis of results, for example. Thus, we merged with Genolyze primarily to improve our existing products, Halleen says.
– We had four profit-generating years under our belt, but the orders stopped just like that in the last quarter of 2008. We did not receive any significant projects for six months. Luckily the cash we had saved from the profitable financial periods was enough to carry us through the recession, Halleen says.
Halleen says Pharmatest’s revenue increased by ten-fold during the five years preceding the financial crisis. If the economic situation normalises and we receive the capital funding needed to realise our growth expectations, it is quite realistic to expect revenue to grow by ten-fold in the next five years again, he thinks.
Now we have more or less overcome the difficulties caused by the merger, and Pharmatest’s order book has recovered year by year since 2008. In addition, the company received a significant capital investment from Finnish capital investors and EUR 780,000 grant from the EU for
At the same time, Halleen will keep his eyes open for new mergers – a lot wiser this time.
This way, a new, greater Pharmatest was created: it employs more than 20 people and its revenue is approximately EUR 1 million. The merger, however, brought along growing pains that Halleen doesn’t deny. – The merger process brought to surface all kinds of is-
– The experience we gained will surely help in upcoming mergers, he assures. 21
APPLIED ICT During the year, the department defined cluster interfaces and responsibility, paving the way for the future. Increasing challenges in the assembly industry were also reflected in the ICT sector. The difficulties in the Turku region assembly industry and the change needs of the service structure were clearly visible in the ICT sector. Both trends set the scene for enterprises to specialise and focus. Southwest Finland’s ICT cluster consists of several different players with widely different operational structures. Subgroups of the large regional ICT cluster were identified during the year, and their co-operation and development needs were defined. The strategy process of the City of Turku and Turku Science Park highlighted the application of ICT and the benefits it brings to other industry sectors. Since the State Council approved Ubiquitous computing as part of the Southwest Finland’s Centre of Expertise (V-S OSKE) activities, it is possible to intensify co-operation with sectors utilising IT in order to find new business opportunities in the interfaces of different clusters. In V-S OSKE, the responsible organisation for these operations is Yrityssalo. Good examples of the activities include the user-driven systems of language technology and health care. The need for them is
identified, which is also indicated by the ICT Achievement of the Year recognition awarded to the IKITIK consortium by the Turku Chamber of Commerce. Practical project work targets both SMEs in the region and international projects. In 2010, Turku Science Park Ltd. provided IT support services for 117 SMEs in Southwest Finland through the eLive and ICT-portti projects. These services, funded by the ERDF (European Regional Development Fund) and ESF (European Social Fund), offer ways to improve the efficiency of the companies’ business operations and help the region’s ICT companies find new customers. Turku Science Park’s position as an internationalisation partner for institutes of higher education strengthened in 2010. Several consortiums have made use of the company’s expertise when preparing research projects for various European Union funding opportunities. The principle of responsibility is implemented from the perspective of “greentech” and it leads the way in the Centre of Expertise clusters and in the planning and implementation of ICT projects. The theme of responsibility was applied in the Centre of Expertise programme by preparing projects highlighting the theme in food industry development, between several clusters and in a targeted man-
ner in the responsible tourism project. The Southwest Finland forest cluster together with the University of Turku Finland Futures Research Centre produced a roadmap for future agribusiness in Southwest Finland: the book “Matkalla Biokauteen – miten verkottunut Bioketju punotaan” (The way to a bio era – how to create a networked chain of biotechnology) looks beyond the current moment and offers an alternative way to view a constructive, responsible future. During the year, the environmental innovation business development project continued, and an Interreg project was launched with the aim to reduce the nitrogen load of the Baltic Sea. Strategic discussion was conducted with the Landmarks Programme launched by Sitra on launching an extensive responsibility project utilising the lifecycle analysis. The European Enterprise Network (EEN) project was implemented as one of the four contact points in Finland. The objectives of the multi-year project were already met last year when Turku Science Park succeeded in bringing together food industry competence from Turku and Latvia in a joint project.
OVERVIEW OF THE MAIN BUSINESS SECTORS
SANAKO MOVED TO EUROCITY AND CUT ITS CORD Case
Turku Science Park got an interesting new resident in January 2010, when Sanako Ltd. moved to EuroCity. Sanako is a spin-off of the Turku-based Teleste, and the global leader in developing teacher-led language teaching software and modern language labs.
In the world where operations are increasingly global, the importance of language skills grows – and that is just fine with Sanako Ltd.. – We develop software to help provide language teaching in schools. In the old days, schools had language labs. Nowadays computer software has replaced tape recorders, Juha Ollila, Sanako’s CEO says.
Britain, the USA, Germany, France, and Spain. However, the greatest growth expectations target China and India. Approximately one billion people speak English in the world today, but the number is estimated to double by 2020 – mainly due to China and India. Sanako is counting on this language revolution for its growth.
SCIENCE PARK IS A GREAT HOME BASE
Sanako is not a large company, but in its own narrow niche it is the largest in the world. The company employs 76 people, of whom approximately 35 are located in Turku, eight in Espoo, and the rest all around the world. Sanako is a very international company, since exports account for as much as 96 per cent of its revenue. Finland’s reputation as a solid and successful performer in the PISA (Programme for International Students Assessment) studies has boosted growth.
The Sanako story began in 2001, when the Turku-based electronics company Teleste decided to divest its language business, and after the sale of that part of its operations, Sanako Ltd. was formed. In January 2010, Sanako also cut the final cord to Teleste physically by moving from the Teleste office building on Kaurakatu to Turku Science Park.
– Finland’s good reputation in terms of paedagogics is a trump card that we have been using. Various school delegations from all around the world visit Finland, and this brings us direct benefits, Ollila says.
– We usually go to the customer; it is quite seldom that a customer would visit us. And when they do, our facilities in the Science Park are in all aspects representative of us, Ollila says.
Important customer countries for Sanako include Great
Ollila thinks Sanako’s personnel also like the new en-
According to Ollila, Turku is a good location for the headquarters of an internationally operating growth company.
vironment. – The location of Science Park is good, and the transportation connections are great. People from our office in Espoo visit us weekly and they find it very convenient to arrive at the Kupittaa station by train. Technology also works well and there are plenty of places for grabbing lunch, Ollila says. According to Ollila, Sanako was looking for modern facilities that would give customers a favourable and professional impression. EuroCity offered a good price-quality ratio. – In addition, other technology companies and the university are close by. They can provide us with additional workforce when we need more developers, for example. One of the selection criteria for the new location also was having enough space for additional employees, since Sanako’s growth outlook is good. Ollila estimates that within a couple of years, Sanako will be hiring 10-20 additional employees in Finland. – Education is permanent capital that all countries want to invest in. Even the recession did not cut down investments into teaching, Ollila says. 25
OVERVIEW OF THE MAIN BUSINESS SECTORS
CENTRE OF EXPERTISE
CENTRE OF EXPERTISE The Southwest Finland Centre of Expertise (V-S OSKE) has been the most important development tool for the innovation environment in the province and in the City of Turku since 1993. Turku Science Park Ltd. has been in charge of the regional implementation from the beginning, together with its stakeholder network. Expertise from Southwest Finland was applied in five clusters representing the strengths of the region: Food Development, HealthBIO – BioTech Competence, Tourism and Experience Management, Maritime, and Forest Industry Future. Turku also bears the national co-ordination responsibility in two clusters: Machine Technology Center Turku Ltd. co-ordinates the Maritime cluster, and Turku Science Park Ltd. is in charge of HealthBIO. The Centre of Expertise Programme evaluation carried out in 2009 primarily provided positive feedback on the projects in the region. Negative feedback was used to guide development. The evaluation offered an opportunity to check the direction of the operations and make changes to focus areas. After hearing the opinions of stakeholders in the region, Turku Science Park Ltd. proposed three changes in the programme implementation. The suggestions included joining the Ubiquitous Computing Cluster and the Digibusiness Cluster as well as transferring competence in new materials and smart surfaces in the
Nanotechnologhy Cluster. The Ministry of Employment and the Economy confirmed six competence areas for Southwest Finland for the period beginning in 2011, including the new ones of Ubiquitous Computing that Yrityssalo Ltd. is in charge of and the Nanotechnology Cluster that replaces the Forest Cluster operations in Turku Science Park. At the same time, the budget of the V-S OSKE programme for 2011 increased by more than 10 per cent.
the first months of the year, FIF focused on finalizing the future outlook of the forest industry together with the University of Turku Futures Research Centre. The central theme in several topics was responsibility. Efforts in the second half of the year targeted the cluster change through participation in the Nanotechnology Cluster strategy process and definition of the position of V-S OSKE at the beginning of the new period.
The University of Turku Functional Foods Forum FFF has been pioneering as a local player in the Food Development Cluster in making university services available for SMEs. Competence related to sensory evaluation has been an essential part of product development in an increasing number of food industry companies. The million euro project Varsinais-Suomen Ruokaketju – VARRU (Southwest Finland Food Chain), was established as the flagship for the development of players in the region’s food industry and co-operation after a labour of one year. The project clarifies the roles between different players and highlights new opportunities that co-operation creates in the food industry field.
Turku Touring, a local player in the Tourism and Experience Management Cluster, both developed and co-ordinated tourism in the province and promoted the internationalisation of cultural tourism in several separate projects. Preparing for the year as the Capital of Culture was visible in nearly all projects in the form of co-operation with the Turku 2011 Foundation. Co-operation between the capitals of culture and the Europe-wide network of culture tourists initiated activities organised throughout capital of culture year.
FOREST CLUSTER MAKING WAY TO NANOTECHNOLOGY The operations of the Southwest Finland’s Centre of Expertise for renewable forest industry, Forest Industry Future (FIF) was divided into two distinct entities. During
The operations of the Maritime Cluster were characterised by difficulties in the shipbuilding industry. A central task of Machine Technology Center Turku Ltd., in charge of the regional operations in the programme, was to utilise tools related to the structural change. OSKE launched several measures related to training and reorientation and intensified co-operation with the marine cities of the southwest coast and the Federation of Finnish Technology Industries. 27
CENTRE OF EXPERTISE
REDISCOVERING CULTURE IN THE LAND OF LAKES Case
Turku is in the spotlight as the 2011 Capital of Culture in Europe, while hard work continues behind the scenes. The Tourism and Experience Management Centre of Expertise, with Turku Touring leading the way, has been focusing on developing Finland into a cultural tourism destination for quite a while.
The Southwest Finland Tourism and Experience Management Centre of Expertise as part of our tourism cluster, operating in Turku Touring, has for a long time been working to raise the awareness of cultural tourism. Anne Karsikas-Järvinen, Project Manager of the Chain of Culture project finds it excellent that serious investments are made into cultural tourism. – Finland has been marketed as a nature destination for 30 years, so it is good to point out that we also have highquality culture to offer, Karsikas-Järvinen says. The Chain of Culture is a project funded by the European Social Fund and the Häme Centre for Economic Development, Transport and the Environment, with the Cities of Turku, Helsinki and Rovaniemi and the Gösta Serlachius Fine Arts Foundation in Mänttä as participants. Several cultural sites from these locations are included in the project. The goal of the project is to promote the product development of cultural tourism. In addition, the project will create a national quality development programme for cultural tourism, called Culture DQN, which will be piloted in the cultural sites of the project. The participants from 28
Turku are Åbo Svenska Teater, the Turku Castle, and the Luostarinmäki Handicrafts Museum.
STUDENTS BRAINSTORMING FOR THEATRE A good example of the activities is the service design course module created by the Chain of Culture project and the Turku University of Applied Sciences, with Åbo Svenska Teatern as the pilot. – We put together mixed groups of students from different fields and had them go see ÅST’s plays. The students made notes of how the theatre experience offered by ÅST could be developed, Karsikas-Järvinen says. By including students of different fields in the observation groups we made sure that we’d receive diverse improvement suggestions. The groups consisted of students of hospitality management and product development as well as design students who provided a visual perspective to the project. According to ÅST’s Marketing Director Sanna-Maria Sarelius, the students were given a completely free hand in finding and selecting the areas of improvement themselves.
Turku 2011/Arto Takala
– We are very happy with their input. They were very diligent. For example, design students and hospitality management students together helped make a space plan for the audience section of the studio theatre to make it more audience friendly, Sarelius says. According to Sarelius, the intention of ÅST this year is to review the students’ ideas to select the ones with the most implementation potential, since in all, the ideas were fairly good. – For example, the students proposed changes to the signs and facade lighting of the theatre. They came up with ideas to bring the theatre building and its history closer to customers. In addition, new kind of performance merchandise was suggested, Sarelius lists. According to Karsikas-Järvinen, the concept of the service design course has raised interest in other educational institutes providing studies in tourism, and among them, at least the Arcada University of Applied Life is planning to organise a similar course in Helsinki. The same concept might be used again in Turku as well in upcoming semesters: pilot projects could include, for example, the Turku Castle or the Luostarinmäki Handicrafts Museum.
CENTRE OF EXPERTISE
FINNISH FOOD INDUSTRY COMPANIES’ WAY ABROAD Case
Based on the figures, Finnish food industry companies are shy to enter the export market. The Internationalisation programme for SMEs in the food industry aims to encourage the companies to be bolder by providing basic skills in internationalisation to SMEs with a drive to grow, aiming to promote growth in the food industry.
The statistics of the Finnish Food and Drinks Industries’ Federation say it all: in 2009, approximately EUR 3.2 billion worth of foodstuffs were imported to Finland, whereas exports in the same year only amounted to about a half of it, or EUR 1.2. billion.
where meetings with buyers have been organised for the companies. In addition, we will attend the Anuga 2011 food fair in Cologne, Mattila says.
Finland hopes to straighten this skewed situation, and the Internationalisation programme for SMEs in the food industry, supported by the European Social Fund, was launched in an effort to accomplish that. The programme that began in February 2010 is led by the Functional Food Forum FFF, Southwest Finland’s Food Development Centre of Expertise.
One of the participating companies is Marjajaloste Meritalo Ltd. located in the Perniö region in Salo, and owned by Olavi Lindstedt and his wife. Meritalo manufactures jams and juices from Finnish raw materials. Its revenue is a bit over EUR 1 million, and currently the company employs three people in addition to the Lindstedts.
Project Manager Saila Mattila says that ten SMEs from different parts of Finland and developers from different Food Development cluster Centres of Expertise have participated in the training. Some of the companies have a history of export activities, others don’t. One company has launched export activities during the training.
ENORMOUS POTENTIAL OF FINNISH PRODUCTS
Now the Lindstedts have set their sights on export markets. According to Lindstedt, the internationalisation training has proven extremely useful from the point of view of Meritalo’s future plans. He mentions the lectures about the structure of the target market as an example.
Two more training periods are left, and they will focus on market areas that the participants find interesting.
– For example, I did not know that if I needed the contact information of, say, the supermarket chains in Hamburg or wholesalers in St. Petersburg, I can find them all in a database maintained by the Turku School of Economics, Lindstedt says.
– At the end of the training, we will take a trip to Germany
According to Mattila, Germany and the rest of the Baltic re-
gion – St. Petersburg in particular – are the market areas that Finnish entrepreneurs are most interested in. The interest is mutual. In St. Petersburg, the image of Finnish foodstuffs is so good that Russian store chains have hired consultants to find Finnish products that could be sold. The stream of Russian tourists to Finland is currently so strong that Russians have become familiar with our products, and they like them. The products and demand are there. However, the field of our food industry consists mainly of SMEs for which the threshold to go international is high. They need all the support they can get from the network. In addition to FFF, the Internationalisation programme for SMEs in the food industry is organised by Foodwest Ltd., Viikki Food Centre, Agropolis Ltd., and the Turku School of Economics.
BUSINESS DEVELOPMENT Turku Science Parkâ€™s Business Development builds growth companies based on competence and technology. The Business Development services range from evaluating business ideas to development services supporting growth. The start-up stage services (Incubator services) include the evaluation of business ideas, pre-incubator services preparing for the launch of business operations, and the actual incubator services for the start-up stage of the company. Development services supporting growth (Growth company services) are provided for companies in more advanced stages. In addition, we provide facilities and reception services in two incubator units: Bio Incubator and DIO Business Centre. In 2010, 46 business ideas listed as potential new incubator companies were evaluated, of which about a third were accepted for further development aiming at the actual incubator stage. Six new promising growth companies were started in the incubator, with three of them in the ICT sector and three in other sectors. The incubator stage of eleven companies was completed, and the incubator hosted a total of 24 companies during the year. Finding funding, successful product development, and opening up the market are the most typical goals at the incubator stage. Receiving funding picked up significantly compared to the previous year. External funding received by the companies was nearly EUR 3 million, or almost threefold compared to 2009. Equity investments worth approxi30
mately EUR 1.3 million were provided to six companies. The companies in the incubator stage produced a total of approximately EUR 3.5 million in revenue and employed 74 people. The most important public financer of the incubator operations was the Turku Region Development Centre.
PROJECTS GENERATING DEVELOPMENT AND GROWTH In October, Protomo was launched in Turku at the DIO Business Centre as a new start-up stage business development service as part of the Southwest Finland Protomo project administered by Yrityssalo Ltd.. Turku Science Park and Yrityssalo signed a co-operation agreement on the implementation of the project. Protomo is a new kind of innovation apparatus bringing together ideas and talented people, providing both financial resources and expertise for the development of ideas.
gramme and the Innovation Mill project. In the first two programmes, Turku Science Park is in charge of co-ordinating and partly executing services in Southwest Finland. The programmes activate enterprises to carry out development measures, evaluate prerequisites for growth or reorganisation needs, and promote the setting up of development programmes. The programmes also provide funding for planned development measures. Through these programmes, Turku Science Park Business Development served more than 20 companies. Innovation Mill is a project by Technopolis Plc that seeks new users for Nokiaâ€™s unused ideas. The City of Turku joined the project, and during the year, the first development project executed within the Innovation Mill was launched. Turku Science Park is in charge of activating and marketing the project in Turku.
Co-operation with universities in Turku continued in the TULI projects aiming to find and refine new researchbased business ideas. One new research-based company was launched in the incubator during the year. The most important growth company services included the SME National Growth Programme, TRIOplus pro-
Further information: Turku Science Park Ltd. / Business Development, Director Olli Mankonen, Tel. +358 400 921 937
AQSENS Ltd. SENSES WHEN THINGS ARE NOT RIGHT Case
Aqsens Ltd. has a nose for exciting future scenarios. The company, funded by Tekes and Newentures Ltd., is developing a chemical indicator at the Turku Science Park Ltd.’s Bio Incubator for finding fake products by detecting their individual fingerprint. The method is similar to the nose of the dog.
recently been added to it. The end result is a promising business opportunity.
may also be found in the agricultural industry where counterfeit fertilizers and pesticides are a problem.
– As a method, Aqsens works a bit against the basic paradigm of science, since we are not so much looking for an individual signal but, in a way, we control the noise. The method does not look for a specific ingredient but uses an unspecific whole, or a chemical fingerprint, Teimonen says.
The largest markets, however, exist in the pharmaceuticals industry, since the market of counterfeit drugs amounts to USD 70 billion annually.
According to Aqsens Ltd.’s CEO Timo Teimonen, the idea is the brainchild of Pekka Hänninen, Professor of Physics and Technology at the University of Turku, who was inspired to create the product in progress while admiring the sense of smell of his dogs.
The Aqsens method is capable of identifying aqueous solution or any soluble material. The device is fast, affordable and easy to move, since the sensor part of the analyser is no bigger than a regular identifier plate. The Aqsens method itself has dumbfounded even its creators with its sensory accuracy in tests.
– A dog is capable of identifying a scent mark nearly all the way to a molecular level. This is due to the genius of the combination of the dog’s nose and brain and the way it forms a scent mark. Based on Pekka Hänninen’s research and insight, we have now developed a method based on equivalent logistics that will renew the way in which we make liquid analyses, Teimonen says. Aqsens’s chemical indicator is a magnificent example of the competence based in Turku since it uses time resolved fluorescence (TRF) applied in identifying aqueous materials. Initially the method was developed in Turku, and new technology created in the University of Turku has more 32
– We bought several brands of bottled water, and the device differentiated them all beautifully. It even detected that two different brands originated from the same source, Teimonen marvels.
WARMEST THANKS FROM AQSENS TO BIO INCUBATOR Teimonen lists the pharmaceuticals and beverage industries as well as other businesses interested in the origin of products and safety as potential customer segments for Aqsens. The device also detects the origin and authenticity of wines just like any connoisseur. Potential customers
– Currently, the authenticity of a pharmaceutical product is verified using the RFID tag on the package. That is ok too, except that it increases manufacturing expenses and does not say anything about the safety of the product itself, Teimonen says. Teimonen believes that the chemical indicator will be commercially available as early as this spring, so Aqsens, established in 2009, is on the verge of a breakthrough. For this, Aqsens’s CEO and his six-member team want to express their thanks also to the Bio Incubator of the Science Park and to Turku for all the support and competence it has provided. – There is no way we alone could have been able to acquire all the laboratory infrastructure that the Bio Incubator provided us with. In addition, it is important for us to be in an environment where competence is shared. It is a harsh fact that a company of this size could not possibly purchase all this on its own, Teimonen says.
BOARD GAMES ON THE GO – TRIBEFLAME Ltd. Case
Tribeflame Ltd. has solved a problem that plaques all families with children: pieces of board games getting lost. The company manufactures electronic board games, transferring existing games into an electronic format for touch screen devices and also designs games of its own.
up on the idea when the iPad that Apple had introduced afterwards proved to be a natural platform for the purpose.
Turku Science Park’s incubator company Tribeflame Ltd. is an example of all the good things that follow when people think out of the box and boldly take action. CEO Torulf Jernström’s story about how Tribeflame came into existence is full of the kind of entrepreneurial spirit that Finland needs.
– You can, for example, put the display on a table and play with your friends, or let the kids use it in the car. This is the only way to play board games in the car without the pieces getting lost. Our games suit all kinds of social situations. You can also play against the computer while travelling on a train or plane, Jernström says.
– A couple of years ago, I was having a beer with Tribeflame’s co-founder Marcus Alanen and we started playing chess. It occurred to us that it could be fun to play board games on a touch screen as well. We mulled over the idea, until in the spring of 2009 we both resigned from our jobs and founded Tribeflame in June. – In the summer of 2010, we received venture capital funding from Aboa Ventures, and now we employ a total of five people here at the DIO Business Incubator, Jernström says. Jernström and Alanen first intended to develop a proprietary game terminal for Tribeflame’s games, but they gave
According to Jernström, an electronic board game is an easily moveable hybrid of a traditional board game and a computer game.
PROPRIETARY GAME IN THE WORKS Tribeflame’s product portfolio currently contains four games. They are all existing board games for which Tribeflame received licences to make the electronic versions from the game manufacturers. According to Jernström, the manufacturers have a fairly favourable attitude towards the electronic versions of their games. Tribeflame does not have competition in Finland, but elsewhere in the world there are 5-10 companies in the same field, so all games are no longer available. Among others, Monopoly, the king of board games, is one of them: the
manufacturer Hasbro has already signed an agreement on the electronic version of the game with the US Electronic Arts. Jernström says Tribeflame is, however, planning to make versions of a few board games every household is familiar with. In addition, Tribeflame already has games in its selection that are very popular among board game enthusiasts – for example, Keltis Oracle. – It is a sequel to Keltis which in 2008 was selected the board game of the year in Germany, which is a huge market. We are also working on electronic versions of the winners of the previous two years. According to Jernström, Tribeflame’s games have been selling quite nicely. He believes that if the size of touch screen devices and their displays increases, electronic board games may become the favourite pastime in every home. This is what Tribeflame bases its growth on. Next year, the company will be releasing 5-10 more games, and a completely proprietary hit game is also in the works. – I can already say for sure that we will be releasing our own game next year, Jernström promises. 33
MARKETING AND COMMUNICATION
MARKETING AND COMMUNICATION The strategic task of Turku Science Park Ltd.’s Marketing and Communication is directly linked to the achievement of the company’s objectives and management. Bringing together marketing and communication helps build the company’s image in the community and strengthens the appeal of the clusters (BioTurku® and ICT Turku) and the region nationally and internationally. Although Turku Science Park Ltd. is no longer involved in the real estate business, the goal is still to increase the appeal of the Science Park area as a location for businesses as well. The Turku Science Park Ltd. Marketing and Communication department plans, offers consulting in, co-ordinates and implements marketing communication services and measures the functionality of communication. Among the most important methods are community-wide media relations, Internet communication as well as marketing and communication materials, centralised building of the Turku Science Park (TScP) image and brand management, cluster-based targeted marketing and events and other ways to strengthen community of local organisations. The core services include TScP communications and cluster marketing (BioTurku®, ICT Turku), both of which support Turku Science Park’s regional marketing and communication. BioTurku® in particular has for a long time been marketed as a partner and location and an investment target for international companies, research groups, and investors. Since the beginning of 2010, Turku Science Park Ltd. has also attended to the “Invest in” task assigned to it in the City of Turku Competence, Entrepreneurship and Business Programme. Our own focus areas are a 34
natural starting point for attracting foreign investment and businesses.
MEDIA RELATIONS AND ARTICLES During the year, the department published 101 pieces of news and kept TScP among the top science parks in Finland in terms of media visibility. Companies and organisations in the region received information on 39 events related to the focus areas. Companies in the area also received distribution and editing services for press releases as much as possible. In addition, the department provided coaching in marketing communication for the employees of Southwest Finland’s Centre of Expertise Food Development cluster.
TSCP’S PUBLICATIONS AND COMMUNICATION MATERIALS A 36-page Annual Review was published in the spring, and together with the universities’ fundraising letter, it was sent by post to a total of 1,500 provincial and national technology players. The English language Annual Report was also distributed in significant numbers. Turku Science Park’s website was improved by increasing editorial content developed by the company, and by adding a virtual tour of the key technology premises in the area. The number of visitors to the site increased during the year: the website had an average of 9,970 visitors per month. The “Person of the Month” section on the front page profiled people working in both research and business in the Turku Science Park area. The range was extensive and also offered popularised views on science
with featured experts such as Esko Valtaoja, Professor of space astronomy, and Johanna Ivaska, Professor of molecular cell biology. eSpark, an electronic publication for stakeholders was published 11 times, and parallel to it, the Spark web magazine was published. In addition, the Turku Science Park Info served all visitors to the area, providing information and materials in the lobby of the BioCity building.
ATTRACTING INVESTMENTS In addition to the company’s own marketing efforts, specifically those of BioTurku®, investments have been attracted through the Invest in Finland organisation. Its ambitious but particularly challenging task is to attract investments specifically targeted to innovations as well as research and development activities in the area. Although the global economy recovered in 2010, the market of direct international investments in Finland did not grow as expected. In addition, more than a half of international investments for the first time targeted developing economies. The Turku Science Park area was demonstrated to both international and domestic visitor groups, with a particular focus on the competence of the companies and the university community. The goal of the visits is to promote investments and also to seek partners for the companies and university units. Due to the lack of resources to accept visitors from the general public, the tours are intended for more targeted and selected visitor groups.
ADDED VALUE THROUGH EVENTS The Marketing and Communication services participated
MARKETING AND COMMUNICATION
in the organisation, marketing and communication of several events in the area. In addition, the department brainstormed and organised a Capital investment morning event that gathered together more than 120 participants, mainly from companies. The event provided opportunities to meet capital investors and key persons in the sector and receive valuable tips from those Turku-based companies that have succeeded in receiving capital investments – some of which, such as Axel Technologies have done it several times. At the end of the year, preparations were launched to organise an extension to the event: a sparring team for companies, primarily in order to obtain information essential for receiving capital investments and to refine presentation skills. Turku Science Park promises to “Innovate to Accelerate.” Succeeding in this requires determined cooperation between institutes of higher education and companies, which Turku Science Park Ltd. promotes with its networking competence. We hope that the now traditional “Itsenäinen Suomi – vapaus innovoida” (Independent Finland – a Freedom to Innovate) event helped create new contacts and sprouted co-operation. Projects, companies, phenomena and people involved in top competence and science rarely make the headlines. Start-ups concentrate on expanding their operations and researchers focus on doing research. Both feel that getting their messages through is laborious and secondary. In particular, they know that the media has less and less time and resources to concentrate on fields and development paths requiring special understanding. In this work, Turku Science Park Ltd.’s Marketing and Communication has a significant role as it aims to make the work of its partners easier by popularising science and offering its readers glimpses of the daily goings-on of start-up companies.
TURKU SCIENCE PARK IN THE HEADLINES IN 2010 Biotie’s clinical trial was a success [21 January 2010] Axel Technologies introduced Fuugo in Barcelona with high hopes [15 February 2010] Galilaeus Ltd. established a production company in Warsaw [18 February 2010] A pharmaceutical from Turku sold abroad successfully [2 March 2010] Rikumatti Levomäki nominated as the CEO of Turku Science Park Ltd. [24 March 2010] Finnish people – the walking health data banks of the future [15 April 2010] IKITIK to receive the ICT Accomplishment of the Year award [15 April 2010] Lingsoft Ltd. the first company to benefit from the Innovation Mill participation of Turku [6 May 2010] ICT-portti proposed cooperation to ICT entrepreneurs in Turku [26 May 2010] BIO2010 proved the strength of the industry [10 June 2010] Sanako Ltd. breaks down language barriers [11 June 2010] Turku enterprises encouraged to make use of Nokia’s portfolio of ideas [16 June 2010] SMEs in food industry finding their courage in a course about internationalisation [23 June 2010] The Tillandz award granted to researchers of brown fat [20 August 2010] Researchers in Turku want TV viewers to have a better picture [6 September 2010] Pharmatest signed an agreement with Bayer [21 September 2010] Capital investment morning event offered practical advice [28 September 2010] Medbase – success from the start [29 September 2010] Fimea opened an office at Turku Science Park [13 October 2010] Esa Tervo takes Neoxen Systems to classrooms [12 November 2010] Turku Science Park Ltd. to launch co-operation with the Russians [16 November 2010] Abonano: the first Protomo story in Turku [23 November 2010]
Further information: Turku Science Park Ltd., Director of Communications Katja Wallenlind, Tel. +358 50 5774 807
HyTest’s revenue close to EUR 10 million [7 December 2010] The rapid MRSA test by Abacus receives a CE label [8 December 2010] MetGen won a European investor competition [22 December 2010] 35
Biocelex Ltd. In 2010, Biocelex Ltd. continued work to stabilise its operations and develop its strategy. The company participated in the evaluation and development of numerous Finnish innovations and proposed several biotechnology investment options for its Swedish partner.
In its own operations in the entire Finland, Biocelex applies the so-called Karolinska Institutet Innovations AB innovation development model. The model has been modified to suit the Finnish Life Sciences sector, and during the operating year, the model was effectively applied among potential innovation organisations.
The operative functions of Biocelex Ltd., established in July 2007, began on 1 September 2007. The company’s shareholders at the end of 2010 were Turku Science Park Ltd. (59%), Karolinska Institutet Holding AB (26%), Turun Seudun Osuuspankki bank (10%) and the company’s management (5%).
During the operating year, Biocelex pre-evaluated and proposed, within the framework of its co-operation agreements, numerous Finnish biotechnology innovations as investment options for its Swedish partners (Karolinska Institutet Innovations AB and Karolinska Development AB).
During the 2010 operating year, the company continued to invest in the stabilisation of its business operations and strategic development. The foundation of the business operations consists of seeking innovations in Finland, sales of business development services, and coordination of the Tekes Pharma programme to be continued until the end of 2011. At the end of the financial period, Biocelex employed three people.
EVALUATING IDEAS AND INNOVATIONS Biocelex’s innovation seeking activities include finding ideas and promising innovations in the Life Sciences sector in Southwest Finland and, more widely, in the entire Finland; preliminary evaluation of commercialisation potential; and presenting the ideas and promising innovations for the Karolinska’s innovation evaluation process to handle and decide on.
DEVELOPMENT PARTNER IN THE LIFE SCIENCES SECTOR Biocelex provides business development services primarily to the Finnish Life Sciences sector. Business development includes, among others, strategy planning, productisation, internationalization, and the financing process. In these services, Biocelex’s potential customers include start-ups and companies in the growth stage, universities, and institutes. More established larger organisations in the sector are also part of the company’s target group for development services.
Further information: Biocelex Ltd., CEO Kai Lahtonen, Tel. +358 50 689 48
INNOVATE TO ACCELERATE
TURKU SCIENCE PARK – INNOVATE TO ACCELERATE
Two scientific universities: University of Turku and Åbo Akademi University
Turku University of Applied Sciences, Diaconia University of Applied Sciences
Turku University Hospital TYKS
Main sectors: biotechnology and applied ICT
Over 300 companies and organisations
Over 250,000 m2 of completed premises in an area of five square kilometres
More than a dozen technology buildings along the Helsinki highway, right next to
the Kupittaa railway station, within a walking distance from the city centre
Less than a 30-minute drive to the international airport
INNOVATE TO ACCELERATE
INNOVATE TO ACCELERATE www.turkusciencepark.com