• Effect of competition on businesses
  • Connections between innovation and business dynamics
  • Growth of business productivity and “creative destruction”

The program focuses on many aspects of the competition. The research topics include the functioning of markets, regulation and the impact of public sector activities on market performance. The program involves a lot of empirical analysis of business and personal data sets based on competitive business strategies, market entry barriers (e.g. patents), as well as the effects of government activities (e.g. business subsidies) on competition and business activities.

Innovation, i.e. new goods and services as well as ways of manufacturing, are a means for companies to cope with the pressures of competitive markets and therefore one of the interesting consequences of competition. Topics of particular interest in the program are innovation related to digitalisation and the data economy. The research focuses on, among other things, how companies make use of open data and big data in the development of new products. At the same time we evaluate what kinds of innovation strategies companies use in their data-based innovation and how these innovation strategies affect competition.

Successful innovation companies are able to raise their own productivity and thus the productivity of the whole economy. On the other hand, economic productivity is also improved as resources shift from inefficient companies to more efficient ones. The latter mechanism is called “creative destruction” in the literature. The program’s research focuses on productivity growth, its factors and in particular at the underlying dynamics of the company. It includes creation of new jobs and the destruction of old ones, as well as the mobility of workers in the labour market. These questions are explored in close cooperation with Labour Market and Education Economics program.

Researches of the program

Research began 2017 Research ends 2020
This project evaluates the impacts of Tekes R&D subsidies by answering to the following five questions: i) Have subsidized firms increased their R&D investments, and if yes to what extent, due to Tekes funding (i.e., input additionality)?, ii) Have
Research began 2018 Research ends 2019
The project studies the effects of firm subsidies on global competitiveness. The study will be conducted with a clear distinction between two different aspects of competitiveness: short-term cost competitiveness, and long-term structural competitiveness. The aim is to better perceive
Research began 2017 Research ends 2021
The consortium Tackling Biases and Bubbles in Participation (BIBU) builds a novel multidisciplinary research setting that explores the dynamics of citizenship in Finland. We study Finland as a testing ground for globalisation, exploring how worldwide changes affect citizens’ political
Research began 2017 Research ends 2018
The project focuses on the significance of immigrants to business dynamics and economic growth of Finland from both employment and productivity growth perspectives. Economic growth is, ultimately and above all, based on new ideas, which are converted into growth
Research began 2014 Research ends 2018
The project will be a comparative analysis of the development of labour productivity, wages and operating margins in Norway, Sweden, Denmark and Finland. The analyses will be based on comparative micro-level data, with a special focus on dynamics and
Research began 2015 Research ended 2017
There is an increasing unanimity in Finland, that the Finnish manufacturing sector has problems with its cost competitiveness. Roughly one half of it can be explained by increases in labour costs exceeding those of the competitors and another half
Research began 2016 Research ended 2017
The project aims at producing information on the cost-effective ways of promoting the use and effectiveness of open data. The first goal is to determine indicators and a model for assessing impacts and cost-effectiveness of opening up data (particularly
Research began 2016 Research ended 2018
Etla’s part in the project firstly focuses on the developments in personal data related hype-cycles and innovation in three selected domains that have been identified to have an exceptionally large near-term potential to generate value from data. Such data-intensive