Finland is challenged to make the most of globalization by reinforcing its positive aspects. The 1990s taught that success in creating innovations is a key factor for success of business and societies. A precondition, high-level technological and business know-how, requires systematic input into producing social innovations that prevent societal and social development from diverging from economic and technological development. This set of actions constitute the national strategy's core. Internationalization must proceed at the level of the innovation system, and Finland must be able to internationalize its operations and its national science and technology institutions through quality and cooperation. Success in implementing the national strategy entails determined development measures. Finland's foremost strengths in knowledge--the national competencies--must be developed further. Measures must be taken to promote the use of technological and social innovations in business enterprises to accelerate renewal of traditional industries. Research organizations must be developed as active and dynamic cooperation partners for business and industry. Investment in basic information society skills must continue. Research and innovation financing must be increased to accelerate internationalization of the innovation system and improve overall conditions for innovation. Regions face the same internationalization challenges and need to enhance their own factors for development. (Appendixes include report excerpts and policy reports.) (YLB)