Reasons for Low Investment
Research group: Business renewal Research began: 2020 Research ends: 2021 Sponsored by: Confederation of Finnish Industry and Employers (TT) Foundation

Responsible for research:

Reasons for Low Investment

Reasons for Low Investment

Productive investments in Finland have long been lagging behind the euro area and Sweden. Finland’s R&D intensity (R&D expenditure / GDP) has also fallen during this decade.

The project analyzes Finland’s intangible and tangible investments in relation to other countries and the factors influencing investments. The results of the study are reported in 2–3 different publications. The project consists of four sections.

The first section focuses on structures of the economy and international comparison of the investments. Intangible and tangible investments are analyzed separately.

The second section analyzes the relationship between ageing and investments. In other words, does the population ageing have impact on companies’ investments.

Third section focuses on investments directed abroad and their relation to domestic investments and value chains.

The fourth section focuses on R&D and particularly on the Government’s target of 4% R&D expenditure in relation to Finland’s GDP.

The analysis of factors influencing the rate of investment is very important because the results determine how strongly and how the decline of the investment rate can be influenced by economic policy.

Responsible for research: