--- title: "Finland’s Future Growth Depends on Intangible Capital: Why Policy Must Expand Its Scope Beyond R&D" authors: - name: "Rouvinen, Petri" url: "https://www.etla.fi/henkilot/rouvinen-petri/" sameAs: - "https://orcid.org/0000-0002-7666-6971" - "https://scholar.google.com/citations?user=qYHEFroAAAAJ" - "https://twitter.com/Petri_Rouvinen" - name: "Kässi, Otto" url: "https://www.etla.fi/henkilot/otto-kassi/" sameAs: - "https://orcid.org/0000-0002-8666-200X" - "https://scholar.google.com/citations?user=gdilg18AAAAJ" - "https://twitter.com/ottokassi" - name: "Pajarinen, Mika" url: "https://www.etla.fi/henkilot/pajarinen-mika/" sameAs: - "https://orcid.org/0000-0001-9087-5991" - "https://scholar.google.com/citations?user=7sGKgwsAAAAJ" date_published: "2025-06-05" series: "ETLA Raportit - Reports" series_number: "164" issn: - "2323-2447" - "2323-2455" jel_codes: - "D24" - "E22" - "G32" - "O34" language: "fi" publisher: "ETLA Economic Research" pdf_url: "https://www.etla.fi/wp-content/uploads/ETLA-Raportit-Reports-164.pdf" identifier: "https://www.etla.fi/julkaisut/id/ETLA-Raportit---Reports-164" abstract_translations: en: "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." --- # Finland’s Future Growth Depends on Intangible Capital: Why Policy Must Expand Its Scope Beyond R&D **Published:** 2025-06-05 **Categories:** Rapporter **URL:** https://www.etla.fi/sv/publikationer/rapporter/suomen-tulevan-kasvun-ydin-on-aineeton-politiikkatoimissa-on-ymmarrettava-aineeton-paaoma-tuotekehitysta-laajemmin/ #### 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. --- ## Additional Information **Kirjoittajat:** Rouvinen, Petri - Kässi, Otto - Pajarinen, Mika **Publication Research:** No 65352 **Kansikuva:** https://www.etla.fi/wp-content/uploads/etla-raportit-reports-164-kansi.jpg **Lataa Pdf:** https://www.etla.fi/wp-content/uploads/ETLA-Raportit-Reports-164.pdf **Key Words:** Intangible capital, Investments, Productivity, Innovation policy, Economic growth, Spillovers **Jel:** D24, E22, G32, O34 **Paivays:** 05.06.2025 **Sivuja:** 28 **Kieli:** fi **Sarja:** ETLA Raportit - Reports **Sarja Nro:** 164 **Issn:** 2323-2447, 2323-2455 (Pdf) **Saatavuus:** 2 ## Bibliographic metadata (JSON-LD) ```json { "@context": "https://schema.org", "@type": "ScholarlyArticle", "@id": "https://www.etla.fi/julkaisut/id/ETLA-Raportit---Reports-164", "headline": "Finland’s Future Growth Depends on Intangible Capital: Why Policy Must Expand Its Scope Beyond R&D", "inLanguage": "fi", "publisher": { "@type": "Organization", "name": "ETLA Economic Research", "url": "https://www.etla.fi", "logo": { "@type": "ImageObject", "url": "https://www.etla.fi/wp-content/uploads/logo-etla_logo.svg" } }, "datePublished": "2025-06-05T00:00:00+00:00", "author": [ { "@type": "Person", "name": "Rouvinen, Petri", "url": "https://www.etla.fi/henkilot/rouvinen-petri/", "sameAs": [ "https://orcid.org/0000-0002-7666-6971", "https://scholar.google.com/citations?user=qYHEFroAAAAJ", "https://twitter.com/Petri_Rouvinen" ] }, { "@type": "Person", "name": "Kässi, Otto", "url": "https://www.etla.fi/henkilot/otto-kassi/", "sameAs": [ "https://orcid.org/0000-0002-8666-200X", "https://scholar.google.com/citations?user=gdilg18AAAAJ", "https://twitter.com/ottokassi" ] }, { "@type": "Person", "name": "Pajarinen, Mika", "url": "https://www.etla.fi/henkilot/pajarinen-mika/", "sameAs": [ "https://orcid.org/0000-0001-9087-5991", "https://scholar.google.com/citations?user=7sGKgwsAAAAJ" ] } ], "abstract": "", "keywords": [ { "@type": "DefinedTerm", "name": "Intangible capital", "@language": "en" }, { "@type": "DefinedTerm", "name": "Investments", "@language": "en" }, { "@type": "DefinedTerm", "name": "Productivity", "@language": "en" }, { "@type": "DefinedTerm", "name": "Innovation policy", "@language": "en" }, { "@type": "DefinedTerm", "name": "Economic growth", "@language": "en" }, { "@type": "DefinedTerm", "name": "Spillovers", "@language": "en" } ], "isPartOf": { "@type": "PublicationIssue", "issueNumber": "164", "isPartOf": { "@type": "Periodical", "name": "ETLA Raportit - Reports", "issn": [ "2323-2447", "2323-2455" ] } }, "mainEntityOfPage": "https://www.etla.fi/sv/publikationer/rapporter/suomen-tulevan-kasvun-ydin-on-aineeton-politiikkatoimissa-on-ymmarrettava-aineeton-paaoma-tuotekehitysta-laajemmin/", "url": "https://www.etla.fi/sv/publikationer/rapporter/suomen-tulevan-kasvun-ydin-on-aineeton-politiikkatoimissa-on-ymmarrettava-aineeton-paaoma-tuotekehitysta-laajemmin/", "hasPart": { "@type": "CreativeWork", "inLanguage": "en", "text": "Finland’s future prosperity hinges on intangible assets such as software, data, brands, and organizational capital. 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