The public sector in Finland faces tasks and challenges in promoting science, technology, and innovations in conditions of global change. Sustainable economic, social, and cultural development will continue to demand comprehensive development of the innovation system based on solid cooperation between the public and private sectors in the country. A special challenge for the public sector is to be able to implement the necessary development measures simultaneously in all directions under conditions of international competition and cooperation. Conditions must be created for the development of information industries, especially by strengthening human resources. The overall level of education must be further raised in Finland, and postgraduate education must be strengthened. It is also necessary to promote the utilization of knowledge produced both abroad and in Finland. In addition, the public sector must develop research funding to promote science, technology, and innovation. Three appendixes report the accomplishments of the Science and Technology Policy Council from 1996-1999; record the interim accomplishments of the expert group as of December 10, 1999, and report on the development of sectoral research. (KC)