The COVID-19 crisis revealed the dependence of companies on global value chains. Production disruptions in value chains forced companies to adapt to a completely new situation. Factories in Finland also had to be temporarily closed. The new research project, which will be launched in Etla in autumn, studies the renewal of companies during and after the COVID-19 crisis and their resilience toward shocks and what impacts the shocks has on companies. The aim of the research project is to support decision-makers and generate policy implications on how resilience could be improved. Etla is implementing the project together with VTT.
The COVID-19 crisis has revealed vulnerabilities that have not been previously identified or at least not responded to. One such challenge is the extreme dependence on global value chains. During COVID-19 pandemic, companies have had to adapt to a completely new situation. In Finland, factories also had to close temporarily due to difficulties in purchasing components around the world.
The new research project “Company Resilience in the Era of Globalization (CRIEG)”, which will start in Etla in autumn 2021, studies the renewal of companies during and after the COVID-19 shock. Furthermore, the project analyzes the long-term impacts of shocks on companies and find instruments and policies to improve companies’ resilience. Etla is implementing this project in cooperation with VTT.
According to Etla Research director Jyrki Ali-Yrkkö, leading the project funded by Business Finland, the impacts of COVID-19 crisis on companies vary.
– While some companies have greatly suffered, for some other companies, the crisis has been beneficial. The COVID-19 crisis is global in nature, like many other crises. In an open economy like Finland, these global crises come as external shocks, which means that Finland’s only options is to just adapt to them, Ali-Yrkkö says.
The research project also provides new insights into the impacts of shocks on global value chains and international trade and the effects of Business Finland funding for development in disruptive circumstances during the COVID-19 pandemic. The main aim of the project is to support decision-makers and generate policy implications about companies’ resilience.
In addition to Jyrki Ali-Yrkkö, research directors Heli Koski and Tero Kuusi, research chief scientists Terhi Maczulskij and Olli Ropponen and researchers Paolo Fornaro and Otto Kässi will participate in the project from Etla. The project will be done in close cooperation with the University of Strathclyde (the UK), Luiss University (Italy) and Lunds University (Sweden).
The research project “Company Resilience in the Era of Globalization (CRIEG)” will start in September 2021 and run until 2023.