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The Specificities of Finnish Industrial Policy - Challenges and Initiatives at the Turn of the Century

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  • Palmberg, Christopher
  • Ylä-Anttila, Pekka

Abstract

The Finnish experience in the 1990s represents one of the few examples of how knowledge can become the driving force in economic growth and transformation. The countrys industrial structure that was previously raw material-, energy-, and capital-intensive changed in less than a decade to primarily a knowledge-intensive on. During the first year of the 21st century Finland has topped the list in various competitiveness rankings and is also number one in OECDs PISA studies of youths learning skills and educational attainment. The aim of this paper is to discuss the nature and role that industry policy has played in these developments, with an explicit focus on the specificities and recent shifts in policy thinking and implementation in Finland. We discuss the emergence of new industrial policies in Finland in the early 1990s, the main policy initiatives and measures, present the organisational landscape of these new policies, and conclude with a partial assessment of the success of policies and future challenges.

Suggested Citation

  • Palmberg, Christopher & Ylä-Anttila, Pekka, 2006. "The Specificities of Finnish Industrial Policy - Challenges and Initiatives at the Turn of the Century," Discussion Papers 973, The Research Institute of the Finnish Economy.
    • Handle: RePEc:rif:dpaper:973
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    References listed on IDEAS

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    1. Koski, H. & Rouvinen, P. & Yla-Anttila, P., 2002. "ICT clusters in Europe The great central banana and the small Nordic potato," Information Economics and Policy, Elsevier, vol. 14(2), pages 145-165, June.
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    Cited by:

    1. Goya, Daniel, 2014. "Política industrial: Qué es, por qué es necesaria, y su pasado, presente y futuro en Chile
      [Industrial policy: What is it, why it is necessary, and its past, present and future in Chile]      ," MPRA Paper 64881, University Library of Munich, Germany.
    2. Luukkonen, Terttu, 2006. "Venture Capital Industry in Finland - Country Report for the Venture Fun Project," Discussion Papers 1003, The Research Institute of the Finnish Economy.
    3. Johansson, Edvard & Böckerman, Petri & Prättälä, Ritva & Uutela, Antti, 2005. "Alcohol Mortality, Drinking Behavior, and Business Cycles: Are Slumps Really Dry Seasons?," Discussion Papers 986, The Research Institute of the Finnish Economy.
    4. Eva Heiskanen & Sirkku Kivisaari & Raimo Lovio & Per Mickwitz, 2009. "Designed to travel? Transition management encounters environmental and innovation policy histories in Finland," Policy Sciences, Springer;Society of Policy Sciences, vol. 42(4), pages 409-427, November.

    More about this item

    Keywords

    Finland; industrial policy; innovation systems; clusters; globalization;

    JEL classification:

    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O38 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Government Policy

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