Etla » B-series

Nokia and Finland in a Sea of Change

admin — Mon, 10 May 2010 11:00:00 +0000

In the 1990s, Nokia became a leader in the global cell phone market. The stellar growth of Nokia contributed significantly to the Finnish national economy, especially to GDP growth, exports and the R&D system.

The first years of the 21st century have witnessed a massive relocation of electronics manufacturing from Europe and the U.S. to Asia and other low-cost regions via the emergence of global supply chains. The Finnish ICT cluster and the national economy as a whole have been influenced by this transformation in many ways.
This book offers four complementary perspectives on the global ICT transformation and the role of Nokia in the Finnish economy:

- What is Nokias contribution to the growth and restructuring of the Finnish economy?
- How have the manufacturing supplier networks of Nokia changed during the 2000s?
- Is the innovative dominance of Nokia in Finland a unique phenomenon in international comparison?
- Where is the value added of high-tech products such as mobile phones created, and who captures the value?

Wealth and retirement

Niku Määttänen — Fri, 12 Feb 2010 11:00:00 +0000

In this study, we review the connection between individuals private wealth and their timing of the retirement. The study begins with a review of related international literature. In the second section, we describe how Finnish citizens have responded when asked about the impact of their wealth on the timing of their retirement. In the third section of the study, we construct a life cycle model of an individuals savings and retirement decisions. When making these decisions, the models individual will take into consideration the earnings-related and national pension benefits and uncertainties relating to future earnings. Using the model, we examine, among other things, to what extent the incentive effects of certain pension reforms that aim to prolong careers depend on personal wealth.

Nordics in Global Crisis. Vulnerability and resilience

admin — Thu, 28 Jan 2010 11:00:00 +0000

During the past two years, the world has experienced its most severe slump since the Great Depression in the 1930s. The Nordic countries have been hit harder than most other countries.

Due to its sharpness and depth, the current global financial and economic crisis has initiated a wide debate on the supposed self-correcting properties of the market economy, on the need for more effective regulation and supervision of financial markets, and on the role of macroeconomic stabilization policies. It has led to a re-evaluation of the role of monetary and fiscal policy. It calls into question the virtues of unfettered globalization, underlining the need for global institutions and cooperation. It throws new light on the costs and benefits of the welfare state and its risk- sharing mechanisms. The crisis is opening up a broad agenda of essential policy issues for renewed consideration.

This is a report on the global financial and economic crisis from the point of view of small open economies with particular reference to the Nordic economies. The report discusses a number of important questions: Why were the Nordic countries hit hard by a crisis, which apparently had little if anything to do with the stability of their own financial systems or with their competitiveness in global markets? What have the Nordics done and what could they do to alleviate the domestic consequences of the crisis? What are the lessons of the crisis with regard to monetary policy and the different choices of monetary regime across the Nordic region? Is there need and scope for expansionary fiscal policy in small open economies even though fiscal multipliers may be small and large budget deficits may threaten public debt sustainability? How can fiscal consolidation and a resumption of economic growth best be reconciled? Should the Nordic countries reconsider their outward-looking growth model in view of a more unstable global economy? Is the Nordic socio-economic model an asset or a liability in the light of the crisis?

The report offers an in-depth analysis of the macroeconomic issues faced by small open economies in a turbulent world economy. It outlines the main elements of the policies that should guide the Nordic countries in their search for less vulnerability and more resilience.

Medical Innovation and Government Intervention

admin — Thu, 10 Sep 2009 11:00:00 +0000

Global health care issues are driving the public sector into a balancing act between conflicting and complementary forces of inevitable change: an ageing population, the explosion of new therapeutic technologies, a critical shortage of clinical professionals, the desire to improve clinical outcomes, and economic constraints.

With respect to technology and economic constraints, the public is in a confusing situation as it strives to lower current health care costs, but at the same time, seeks more and better health care technology. Moreover, in developing this new technology it is in the publics interest to foster successful new business development, increasing national wealth by creating jobs and the resulting tax revenues. Also, a healthier workforce is more productive, further enhancing the incentive for technology development.

Biotechnology has been seen as offering promises of breakthrough innovations and hence major business potential. These innovations are not incremental improvements but new and different types of therapy and diagnostics. Consequently, a number of governments have invested significant resources into creating a strong biotechnology industry base, with special emphasis on subsidizing drug development.. Despite the success of some individual products, however, the infrastructure has so far not fully met expectations.

This book deals with the complex ambiguity of the health care sector, assessing, in particular, the risks inherent with an enforced regulation of an entire industry sector. The major focus is on value creation in general and biotechnology in particular. Since drugs constitute the bulk of biotechnological health care applications, and likewise both drug development and pricing is under particular governmental regulation, the book highlights the pharmaceutical sector whenever possible. Both practitioners and policy makers will find the messages in this book helpful in creating value for their stakeholders.

Economic Relations between Finland and the United States

Ville Kaitila — Mon, 23 Mar 2009 11:00:00 +0000

The focus of the research is on economic relations between Finland and the United States as well as their effects on the Finnish economy and Finnish-owned firms. A substantial share of the effects are transmitted through indirect channels. In the beginning the roles of the United States in world output, trade and foreign direct investment are evaluated. The role of the U.S. dollar as a world currency and the roles of the U.S. in the transmission of economic shocks and in trade policy are studied. The shocks analyzed include the financial crisis of the years 2007-2008 and changes in the exchange rate of the dollar. The NiGEM model of the international economy is used as the main analytic tool. Exports and imports of goods and services are studied at the aggregate level and according to product groups. The effects of Finlands U.S. exports are studied with an input-output model and with a macroeconomic model. Among investments, foreign direct investments as well as portfolio investments are considered. Economic relations are researched also at the firm level. The material includes annual reports of listed enterprises, the Orbis-databank on firms and a questionnaire posted to firms that are active on the U.S. market. Next, the importance of the United States in the innovation activity and technology transfer is explored. The effects on Finland are studied by focusing on e.g. studying in the U.S., patent co-operation and trade in high technology products, as well as with the help of the above-mentioned questionnaire. In the end of the book some conclusions from the whole study are drawn

Careers in Finland – Does Gender Matter? A Study on White-collar Employees in Manufacturing 1981-2006

Antti Kauhanen — Thu, 26 Feb 2009 11:00:00 +0000

This report analyses the careers of men and women in Finnish manufacturing in 19812006. The focus is on three main issues : 1) gender differences in jobs and hierarchical positions in the beginning of the career, 2) gender differences in career development, 3) gender differences in starting wages and wage premiums to changes in hierarchical position. The study uses wage data for white-collar employees from the registers of the Confederation of Finnish Industries (EK). The results show that white-collar women typically start their careers from less demanding jobs than men. However, the differences have declined in the past 25 years. The results also show that there are gender differences in career development : men get promoted more often than women, but are demoted less often. Thus the differences in career development tend to amplify the gender differences already apparent in the beginning of the career. Concerning wages, the results show that white-collar men earn on average more than women already in the beginning of the career, but this difference in starting wages has declined markedly during the past 25 years. On the other hand, there are no clear-cut gender differences in the wage changes in hierarchical position. Wage increases attached to promotions are roughly of the same size for men and women, but women tend to experience larger wage reductions when demoted.

Nanotechnology and industrial renewal in Finland – A synthesis of key findings

admin — Tue, 24 Jun 2008 11:00:00 +0000

Nanotechnology enables the manipulation and control of matter and processes at very small scales where materials, devices and systems often gain new functionalities. It is often seen as a rapidly emerging general purpose technology which can enable both incremental and radical innovation in a broad range of industries, leading to potentially significant impacts on our economies and the way in which we live our lives. To unlock the possibilities supportive technologies, innovations, organisations, institutions and coordinated policies will be needed.

This report synthesises the key findings of the project Nanotechnology and industrial renewal in Finland which examined the present significance and future possibilities of nanotechnology in renewing established industries, and creating new ones, in Finland. The project was motivated by the increasingly significant attention that nanotechnology has been receiving in recent times in innovation policies in Finland and most other industrialized countries in the absence of substantive analysis of its nature, challenges and economic implications.

The report discusses, and provides policy observations on, the following issues in nanotechnology developments in Finland :
R&D investments and programs
Publication and patenting activity
Technology transfer from the public research sector to industry
Commercialisation and the role of new and small versus large companies
Application industries and linkages to existing areas of technological specialization

Sukupuolten palkkaerot Suomessa – Yksityisen sektorin miesten ja naisten palkkojen ja palkkaerojen tarkastelu

admin — Wed, 14 May 2008 11:00:00 +0000

GENDER WAGE DIFFERENCES IN FINLAND THE STRUCTURE AND TREND OF PRIVATE-SECTOR MALE AND FEMALE WAGES AND WAGE GAPS
This report analyses the trends in private-sector male and female wage dispersions and wage gaps up to 2005. The focus is on three central wage and salary earner groups : white-collar and blue-collar male and female workers in manufacturing industries and services sector male and female employees. Additionally this overall analysis is complemented with similar analyses for different job hierarchy levels (white-collar manufacturing male and female workers only), as well as for industries differing in their share of women. Separate analyses are also undertaken concerning the influence of key individual characteristics and also of the employing establishment on the dispersion of male and female wages. The data comes from the Confederation of Finnish Industries (EK) which compiles detailed individual-level wage data from its member companies. The results show that both the level and trend in the dispersion of male and female wages are highly similar in the male-dominated manufacturing sector but largely different in the female-dominated services sector. Also the role of various modes of performance-related pay turns out increase for males relative to women with the female-dominance of the employee category under study. The (dis)similarity in the categorys male and female wage dispersions is found to be closely related both to the frequency of women and to the size of the (unadjusted) gender wage gap at the different levels of the wage distribution. The gender wage gap increases when moving up the wage ladder. So does also the role of various performance related pays. Moreover, also this effect seems to be strongest in female-dominated employee categories.

The Nordic Model. Embracing globalization and sharing risks

admin — Fri, 14 Dec 2007 11:00:00 +0000

Is there a Nordic model? What are the main characteristics of the Nordics? What challenges are they facing? Is the Nordic welfare state viable in conditions of globalization and ageing populations? What reforms are needed?

The Nordic countries have attracted much international attention in recent years. The school system in Finland has repeatedly been ranked the best in the world. The Swedish pension reform is a benchmark in the international debate. Danish flexicurity figures prominently on the policy agenda in the EU and the OECD.

The economic performance of the Nordic countries has been impressive in comparative terms: rapid growth, high employment, price stability, healthy surpluses in government finances. The Nordics have embraced globalization and new technologies. Cross-country comparisons support the view that the Nordics have been successful in reconciling economic efficiency with social equality.

While successful in the past, the Nordic model is facing increasingly serious challenges in the future. Globalization and the demographic transformation have major consequences for labour markets and the public sector. The viability of the Nordic welfare state as it exists today is put into question.

This report offers an in-depth analysis of the Nordic model, explaining its key features and evaluating its performance as well as setting out its challenges. It examines many of the quick fixes put forward in public debate and explains why they are unrealistic or based on erroneous reasoning. The report also outlines the main elements of policy that reform of the Nordic model should focus on.

Biotechnology as a Competitive Edge for the Finnish Forest Cluster

admin — Thu, 29 Mar 2007 11:00:00 +0000

This book analyses features of the Finnish forest biotechnology applications from three complementary perspectives:
1. What current biotechnology projects and resources are steered towards forest applications?
2. How much does the Finnish forest cluster invest in biotechnology R&D, and what are the key application areas in the value chain?
3. How well do the academic resources, company R&D investments, and research needs converge to help secure the future competitiveness of the Finnish forest industries?

The Finnish forest sector benefits from comparative advantages. The forest raw materials abundance, high quality and some special features compensate for the low growth caused by the harsh climate. Finland has a good overall infrastructure, mostly maintained or supported by the public sector. Finally, the Finnish forest cluster has financial resources to commercialize any new technology that provides long term cost savings or other benefits.

Biotechnology holds promises of specific process enhancements as well as novel products and concepts. This is why the combination of a research-intensive biotechnology sector with the strong Finnish forest sector offers crucial future opportunities.