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Commission warns that Finland risks falling behind in creativity and innovation
Finland’s status as an engine of European innovation could soon be a thing of the past, according to a report issued by the European Commission on the state of the Finnish economy.
In a report released on Wednesday, the Commission warns that without a significant increase in the number of growth companies involved in innovation, Finland’s status as a leader of innovation in the EU threatens weaken.
Factors affecting the decline in creativity include the weakening of the data technology sector and export sector, and the extensive structural change that has taken place. This has eaten away at the willingness of companies to steer cash flows toward research and development.
Juhana Vartiainen, Director-General of the Government Institute for Economic Reasearch (VATT), sees nothing unexpected in the assessments. The need for innovations and other new sprouts has been “harped on many times”.
In addition, the Commission makes note of factors such as the ageing population of Finland, competitiveness, and unemployment.
Vartiainen feels that it is a noteworthy observation that the per-unit costs of work have risen quickly by 12 per cent from 2007 to 2010. This trend has been faster in Finland than in Sweden and Germany, which are important trading partners for Finland.
The rise in costs has also been greater than the EU average.
The Commission believes that the tripartite framework agreement reached last year will ease Finland’s position.