National economic performance as reflected in productivity growth and international competitiveness deteriorated. Moreover, the Finnish economy was subject to shocks associated with Nokia’s decline and downsizing in the forestry sector, which brought the issue of Finland’s diversification into the limelight. The role of national institutions that played an important role in Finland’s rise - such as the Science and Technology Policy Council (now the Research and Innovation Council, RIC) and the Finnish Funding Agency for Innovation, Tekes - has diminished. Against this backdrop, and the urgent need to revive the economy and achieve high and sustainable economic grow th, research and innovation remain critical for Finland’s future success in economic and broader social development.