- Effect of competition on businesses
- Links between innovations and business dynamics
- Productivity growth within firms and ”creative destruction”
- Foreign trade, trade policy and direct investments
The research programme examines the role of competition in the economy. The focus is on the functioning of the markets and the impact of regulation and public sector activity on market dynamics. The programme provides a large amount of empirical analysis based on firm- and individual-level data on the competitive strategies of companies, barriers to entry in the market and the impact of public policy on competition and the operation of companies.
Innovations, i.e., new goods, services and production methods, are a way for companies to cope with the competitive pressure on the markets and therefore one of the important consequences of competition. Of particular interest is innovation in digitalisation and the data economy. The studies will examine issues related to, e.g., open knowledge and mass data.
Innovations increase the productivity of businesses and hence the productivity of the economy as a whole. Productivity of the total economy also improves as resources move from inefficient to more efficient businesses. This is called “creative destruction”. In the programme, research examines productivity growth associated with creative destruction, its determinants and, in particular, the underlying business dynamics. It includes both the creation of new jobs and the destruction of old ones as well as workers’ mobility in the labour market. These issues are examined in close cooperation with the Labour market and skills programme.
The research programme explores the reasons explaining the export performance of Finnish production, by, e.g., comparing Finnish and Swedish export companies. The programme also examines the importance of the workforce’s previous work experience in multinational companies and networking for the success of startup businesses. Research is also conducted on current trade policy changes, which are analysed using a gravitation model and product- and country-level trade data.