Public funding must be used more efficiently to boost new sectors and diversify the economic structure, according to Industrial Policy Strategy published by the government on Wednesday.
A steering group of the Ministry of Economic Affairs presented the strategy to Minister of Economic Affairs Wille Rydman, said an official press release.
The strategy also suggested that Finland must improve the competitiveness of its investment environment with the help of predictable regulation and sufficient incentives and companies must increase their intangible investments to enhance the value added and productivity.
The strategy is a strategic agenda for the renewal and growth of Finnish industry and provides an overview of the Government’s industrial policy priorities and the means to implement them.
The strategy also examined the initiatives related to EU industrial policy that are of primary importance to Finland and links them with the context of national industrial policy.
“State-led industrial policies have made a come-back in Asia, America and Europe. This poses a major challenge for a small open economy like Finland. However, we must acknowledge this, instead of closing our eyes to the changes in the world economy. The new industrial policy strategy aims to provide answers to the competitive challenges Finland is facing now,” said Rydman.
“The operating environment for the international economy has changed dramatically, and at the same time the competitive position of Finnish companies in the global market has weakened. The poor development of productivity and the long-term deficit in foreign trade can be explained by several factors, and addressing them requires determined policy measures,” said Permanent Secretary Timo Jaatinen, who chaired the steering group.
“Maintaining a globally competitive position puts pressure on Finland’s established industries to renew themselves. Our expertise in many sectors and technology areas is strong. This will enable the emergence of new growth sectors. New industrial policy measures are necessary to respond to the changed international operating environment and, in particular, to introduce new solutions to the market and expand them to the industrial scale,” Jaatinen added.
The steering group has defined seven objectives and proposes policy measures to achieve them.
The objectives are develop the competitiveness of the operating environment to attract investments, enhance public funding to leverage private funding, increase the value added and productivity by investing in intangible capital, generate growth from research, innovations and international networks, exploit opportunities offered by the clean transition, the bioeconomy and the circular economy, invest in logistics, infrastructure and industrial hubs and ensure the availability of skilled labour
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Source: www.dailyfinland.fi
