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Embassy of Finland

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Presentation at the Launch of the Feel Finland in Science 2006, Jan. ... A corollary: Finland one of the most advanced countries in the world in gender equality ... – PowerPoint PPT presentation

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Title: Embassy of Finland


1
Some Aspects of the success of Finnish Economy
  • Presentation at the Launch of the Feel Finland in
    Science 2006, Jan. 12, 2006
  • Juha Niemi
  • 1st Secretary
  • Embassy of Finland, Tokyo

2
FINLAND
  • Location Northern Europe, between Sweden and
    Russia
  • Independence 6.12.1917
  • Capitol Helsinki
  • Official languages Finnish and Swedish
  • Population 5,2 million
  • Area 338 000 km2
  • Population density 17/km2
  • appr. 180 000 lakes, 70 of area covered by
    forests
  • GDP/capita 2003 28 700 US (ppp OECD)
  • A typical Nordic Welfare State

3
Good scores in recent international comparisons
  • World Economic Forum Global Competitiveness
    Report 2005 1st place
  • Institute for Management Development (IMD) World
    Competitiveness Scoreboard 2005 6th place
  • Transparency International Corruption Perceptions
    Index 2004 lowest level of corruption
  • OECD/Pisa on education 1st place
  • UNDP Human Development index 2005 13th place
  • WEF environment comparison 1st

4
Finnish Economy and Society
  • Finnish economy has been one of the best
    performers among the OECD countries
  • brisk economic growth (04 3,6), low inflation
    (less than 1) , high surplus in current account
    (04 4,1)
  • government debt at 44 of GDP one of the lowest
    among OECD countries
  • problem persistent unemployment (currently 7-8
    )
  • one of the top countries in terms of equality in
    incomes

5
Finlands Real GDP Growth 1990-2004
6
Drivers behind Finlands economic success
  • 1. Quality education with equal opportunity
  • 2. Investments in RD for technology development
  • 3. Good regulatory framework and efficient public
    service
  • 4. Open economy
  • 5. Social model

7
1. Quality education with equal opportunity
  • cultural undercurrent importance of education
    stressed since independence
  • investment to the educational system currently
    6 of GDP directed to public education
  • high-level, free and universal education from
    comprehensive school to university
  • rationale small country with scarce natural
    resources, important to mobilize all human and
    intellectual resources
  • A corollary Finland one of the most advanced
    countries in the world in gender equality
  • High participation of women in the work force

8
2. Heavy Investment in RD
Total 5.0 billion euros, 3.5 percent ofthe Gross
Domestic Product (GDP) in 2003.
9
RD funding/GDP in 2003comparison of selected
countries
/ GDP
10
Patents
High technology EPO patent applications
High tech. patents granted in the USA
- Applications per million inhabitants in 2002
- Patents granted per million inhabitants in 2002
Finland
Netherl.
Sweden
USA
Germany
Denmark
Japan
UK
France
EU
Ireland
Austria
11
Other Tools...
  • promoting co-operation particularly within our
    main industry clusters
  • triangular co-operation universities/research
    institutes, enterprises, central and local
    government institutions
  • to lower barriers between public, private
    academia, especially important when nurturing new
    technologies
  • 22 science parks and technology centres
  • 12 centres of excellence in universities
  • incubators
  • co-financing of research by public and private
    actors

12
3. Sound regulatory framework and efficient
public service
  • Premise Sound and predictable regulatory
    framework important for business to thrive
  • Impartial, transparent and reliable public
    service
  • Finland one of the least corrupt countries
  • Efficiency aim at expanding room for private
    sector to maneuver
  • less red tape
  • public authorities more as regulators and less as
    service providers
  • Consistent efforts at deregulation since 1980's
  • liberalization of telcom markets in the early
    1980's Nokia, ICT industry
  • privatization of postal services in the 1990's,
    increased outsourcing of various public services,
    private provision of day care for children,
    public private partnerships etc.

13
4. Open economy
  • Finnish mindset embrace globalization rather
    than seek recourse to protectionism
  • Benefit allows access for wider markets and
    foreign capital and forces to continuously
    improve performance and stay competitive
  • Finland, a firm believer in international trade
    liberalization
  • FTA with the EU in 1973, member of the European
    Union 1995, member of the Euro-zone 2002, WTO
  • descriptive of Finland almost 40 of GDP derived
    from exports

14
5. Social Model the Welfare State
  • "double edged sword" in competitiveness rankings
    high taxation
  • Finlands tax to GDP ratio 44.3 in 2004, 5th
    highest in OECD (Japan 2003 25,3 )
  • however, the system offers also benefits
  • free health care, free tuition, safety net which
    contributes to social cohesion and political
    stability
  • welfare state enjoys wide support

15
Challenges
  • Fast-paced progress of globalization,
    intensifying competition
  • To remain competitive
  • build on strengths, invest in knowledge
    intensive, make sure that the business
    environment remains attractive
  • No room for complacency! Need to revisit all
    aspects behind competitiveness continously!
  • streamlining welfare state, streamlining
    bureaucracy etc.
  • Easier to get to the top than to stay there

16
Doumo arigatou gozaimashita!
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