• 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.

Researches of the program

Research began 2019 Research ends 2019
The aim of the project is to evaluate the economic impacts of the EU’s FTAs on Finland. Trade agreements have a central role in ensuring economic growth and employment. The main purpose of the analysis is to study the
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 ended 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 ended 2019
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 2016 Research ended 2017
We construct an up-to-date study of the Chinese economy, its international role, and especially Finnish-Chinese Economic Relations. ETLA’s research team has previously done several studies on, e.g., Finland’s EU and EMU membership, Finnish-Russian Economic Relations, and Finnish-American Economic Relations.
Research began 2014 Research ended 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