OECD praises quality of Finnish research and development, laments narrow scope

Call to ease taxation for high income earners

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A report by the OECD praises research and product development in Finland as being among the best in the world. However, the report, published in Paris on Tuesday, notes that R&D activities in Finland focus too much on information technology.
      Of all OECD countries, Sweden and Finland spend the highest proportion of their GDP on research and development. Finland is also found to have the highest per capita rate of new patents.
      The OECD also feels that Finland should cut the taxation of high income earners as a way of keeping highly-trained professionals in the country. Currently, Finnish tax rates for those with high incomes are among the highest in the world.
     
The OECD also urges Finland to spread out internationally; cooperation with foreign companies should be increased, and moves should be made to attract more foreign researchers and students to Finland.
      The OECD report seeks to clarify how its member states might boost their economic growth. Support for research and development is seen as one means to this end.
      The report is an extension to a study published last year, where countries were urged to increase the productivity of labour and boost the employment level.
      In the view of the OECD, the countries of the European Union do not sufficiency encourage their citizens to work, and the situation is exacerbated by the ageing of the population.
      "Too few efforts have been made to weaken the tax incentive that pushes older employees out of work", said the OECD’s main economist Jean-Philippe Cotis at a press conference in Paris.


Previously in HS International Edition:
  OECD: Finland has very few foreign students (14.9.2005)

Links:
  OECD web site: OECD reports mixed progress on key economic reforms, highlights the importance of innovation

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