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Series title and number of the publication<br />
Aleksanterinkatu 4 P.O. Box 32 Tel. +358 9 16001<br />
MTI Publications<br />
FIN-00170 Helsinki<br />
FINLAND<br />
FIN-00023 GOVERNMENT<br />
Helsinki FINLAND<br />
Telefax +358 9 1606 3666<br />
35/2006<br />
Authors<br />
Erkki Virtanen, Chairman<br />
Hannu Lipponen, Secretary<br />
Date<br />
September 2006<br />
Commissioned by<br />
Ministry of Trade and Industry<br />
Date of appointment<br />
25 May 2005<br />
Title<br />
Guidelines for Finnish Industrial Policy<br />
Abstract<br />
Prosperity and economic success walk hand in hand. Finnish GDP and productivity have grown rapidly over the<br />
last decade, the country enjoying a current account surplus and balancing its public finances, while foreign debt has<br />
diminished almost entirely. This report seeks to peer into the next chapter of this success story, spanning the forthcoming<br />
decades.<br />
Economic success is the product of profitable firms with innovative business processes, while Finland’s industrial<br />
policy is seeking to ensure that its business environment remains one of the world’s best. Close interaction between<br />
an effective innovation process and effective markets forms the key to future success, with technology policy, business<br />
policy, and competition and consumer policy measures comprising the bedrock for the development of such interaction.<br />
Lively dialogue between demanding customers and firms is a challenging but indispensable means to the development<br />
of innovative goods and services for the domestic and overseas markets. In effective markets, while purchasing<br />
power improves, competition maintains prices at reasonable levels. Greater innovation and productivity requires<br />
that markets become more effective, especially in the service sector.<br />
An innovation process can be said to work when an idea is translated into commercial success. One perspective in<br />
this regard focuses on how significant research and development investment could create more success stories in the<br />
markets, how customer and business model-based innovations might proliferate and how the number of fastgrowing<br />
companies might be increased, alongside more comprehensive use of information and communications<br />
technology in the business world.<br />
Energy availability will prove crucial to the business infrastructure, as will effective markets. Meanwhile, emissions<br />
trading will slow down growth in GDP while raising costs in certain industries, transforming the manufacturing<br />
base, both of which will also feel the impact of rising fuel prices. On the other hand, these trends will spur innovation,<br />
generating new businesses such as energy saving and environmentally friendly products, production methods<br />
and processes, if they can be successfully commercialised.<br />
Ministry of Trade and Industry Hannu Lipponen, Industries Department, telephone +358 (0)9 1606 3606<br />
Key words<br />
Industrial policy, Energy, Globalisation, Climate, Innovations, Sustainable development, Competition, Competitiveness,<br />
Consumers, Service industries, Technology, Industry, Enterprises, Entrepreneur<br />
ISSN<br />
1459-9376<br />
Pages<br />
84<br />
Published by<br />
Ministry of Trade and Industry<br />
Language<br />
Finnish<br />
ISBN<br />
952-489-043-7<br />
Price<br />
€ 17<br />
Sold by<br />
Edita Publishing Ltd
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