Finland’s Future Growth Depends on Intangible Capital: Why Policy Must Expand Its Scope Beyond R&D

Abstract

Finland’s future prosperity hinges on intangible assets such as software, data, brands, and organizational capital. While research and development (R&D) is a central intangible asset, other types collectively hold greater significance.
The growth trajectory of Finland’s intangible investments stalled with the 2008–2009 financial crisis and resumed only after the COVID-19 pandemic. This “lost decade” partly explains Finland’s sluggish economic and productivity performance.

Innovation policy should broaden its focus beyond R&D to encompass other forms of intangible investment, as well as the adoption and diffusion of innovations. Policy should prioritize quality over quantity, encourage bold experimentation, and support scaling. This necessitates a shift towards equity financing and fostering skilled labor mobility. Mergers and acquisitions are vital for leveraging and disseminating intangible capital, but anti-competitive “killer acquisitions” are not in the national interest.

Information om publikationen

Forskningsgrupp
Förnyelse av företag
Serie
ETLA Raportit - Reports 164
Datum
05.06.2025
Nyckelord
Intangible capital, Investments, Productivity, Innovation policy, Economic growth, Spillovers
ISSN
2323-2447, 2323-2455 (Pdf)
JEL
D24, E22, G32, O34
Sidor
28
Språk
Finska