

innovation systems, focused on the three pilot provinces of
Gauteng, the Western Cape and the Eastern Cape.
The programme conforms to the Finnish guidelines for devel-
opment of Information Society for 2005, which emphasize the
creation of preconditions for the development of an information
economy in partner countries, especially those that are in transi-
tion. Based on Finland’s own experiences relating to the
Information Society and economic policy, it is crucial that, by
upgrading local innovative activities, legislation and economic
policy, cooperation on development ensures economic growth
and its more balanced distribution, especially for the benefit of
the poorest parts of the population. Of equal importance is the
attempt to secure the establishment of a nationally significant
entrepreneurial sector in developing countries. This will gener-
ate local employment and encourage content production based
on national languages and cultures. In its regional and country-
specific development activities, Finland gives priority to the
coherent development of such regional or national strategies,
particularly concerning strategies for the reduction of poverty and
the development of an Information Society, and relevant regula-
tory frameworks.
Mainstreaming ICT into different sectors of society in order to
attain the development goals could fail without the creation of
more general preconditions for both global and regional sustain-
able development. The preconditions for establishing a sustainable
Information Society must, therefore, be developed comprehen-
sively in the partner countries. This calls for an extensive skills
and knowledge base among citizens, legislation, strategies, appro-
priate infrastructure, and supporting information economy
instruments. The guidelines for the Finnish development policy
provide a framework for the development of a sustainable
Information Society, which can also be seen as laying the ground-
work for national innovation systems.
Sharing knowledge and know-how
Finland is known for its high technology, but also for its skills
and expertise, education, and state-of-the-art research and inno-
vation systems. These factors, which are essentially related to
knowledge and know-how, can have a major effect on economic,
social and cultural development. In Finland, Information Society
policy has pooled technology, know-how and innovation into a
coordinated entity, giving Finnish public and private institutions
a good starting point to act as a partner in comparable strategic
projects in South Africa.
South Africa has great potential for innovation and business
development, with key strategic-level and basic educational
and research and development structures in place as well as a
mature national innovation policy framework. But with the
exception of a few initiatives such as Blue IQ in Gauteng and
the Cape Information Technology Initiative in the Western
Cape, integrated management mechanisms to support innova-
tion at the national and provincial levels are not yet sufficiently
developed. Presently the critical innovation actors (higher
education, public, research and technology organizations,
industry and government) have failed to optimally converge
around the broad objectives of innovation-based growth and
development.
Whereas South Africa is only beginning to grapple with the
challenges associated with establishing a national system for inno-
vation, Finland has achieved highly acclaimed success in terms
of regional innovation and development. Finland obviated the
main impediments of its innovation system by broadening and
deepening the national innovation policy discourse and provid-
ing concessions and incentives to support, for example, the
following actions, which are also of interest for South Africa:
• Innovation management activities based on regional strengths
• Development of cluster-based programmes in key core
competence sectors
• Strengthening of the Centres of Expertise Programme
• Development of regional innovation programmes
• Target-based research and development activities to promote
local and foreign companies
• Increased and more effective utilization of foreign technology
• Well-defined spin-off and start-up processes with financial
and commercialization tools.
Finnish experience shows that unless interventions are coordi-
nated, with the government playing a proactive role, opportunities
to leverage the national innovation system are piece meal and
constrained.
Closer regional cooperation, coordination and integration
within South Africa at all levels of political and socioeconomic
life is a strategic national priority. South Africa, therefore, partic-
ipates actively in all the forums, including those related to
science and technology, of the SADC, a regional organization
whose members comprise South Africa and thirteen other
Southern African countries. The objectives of the New
Partnership for Africa’s Development (NEPAD), a Pan-African
initiative aimed at accelerating Africa’s growth and develop-
ment, also serves to inform the strategic policy objectives of
both South Africa and the other SADC member states. Both the
NEPAD and SADC programmes recognize the important role
played by science and technology as instruments for growth and
development.
The strengthening of national innovation systems in African
countries and their regional and continental integration are,
therefore, key objectives for both NEPAD and SADC. South
Africa and Finland agree that strengthening regional coopera-
tion in Southern Africa. The Finland-South African Cooperation
Framework on Innovation Systems also shows rich potential
for finding applications in other Southern African countries. In
light of this goal, opportunities for appropriate expansion of
the cooperation framework to include other Southern African
countries will also be explored during implementation of the
framework.
Building sustainable institutional links
Both Finland and South Africa agree that the strengthening links
between institutions, corporations and civil society organizations
is a key element to sustainable collaboration in the future. These
partnerships should be based on mutual interests, and should
benefit all participants. In this spirit, Finland has encouraged the
creation of partnerships by providing special seed funding for the
startup and planning of joint projects. The science and technol-
ogy sector was identified as an area where this type of partnership
could flourish, and within the development of information tech-
nology envelope, the development of Information Society was
specified as a target area. Since 2004, several fruitful partnerships
have been established between the institutions of the two coun-
tries. Bearing in mind the multinational nature of science and
technology collaboration, the partnerships have been opened to
other countries as well, even if they do not necessarily benefit
from the Finnish funding associated with South Africa and some
of its neighbouring countries.
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