Finland has strong fundamentals in terms of education, research and development and the quality of its institutions. Despite this, Finland’s productivity growth has slowed significantly since the financial crisis and has diverged from other Nordic countries. The main reason seems to be the weakening of creative destruction: high-productivity companies do not grow fast enough, and valuable resources such as skilled labour and intangible capital are often lost when companies exit the market.
This research project investigates how firms’ market entry and exit, labour mobility and the management of intangible capital affect productivity dynamics.
The results support more effective industrial and innovation policy. By identifying micro-level barriers to business innovation, we aim to support productive entrepreneurship, strengthen RDI investments and improve the reallocation of skills and knowledge in the Finnish economy.
