2: Renewal and Competitive Edge

Promote new entrepreneurship, structural change, productivity, international business, innovation, labour force competence and the capability for renewal in times of change.

Other Information:

Renewal and competitive edge in the global economy -- The Government Programme stipulates that Finland must find ways of establishing globally leading centres of expertise, while ensuring the creation of a large number of com-petitive and productive jobs. The goal is to promote economic growth by improving pro-ductivity and employment levels. This can be achieved through strengthening labour availability, competence and innovation, and renewing economic structures (The Government Programme 19 April 2007). The labour and industrial policy promotes new entrepreneurship, structural change, productivity, international business, innovation, labour force competence and the capability for renewal in times of change. The openness of markets, combined with well-functioning competition, is a key component of structural change, as well as constituting incentives to improve productivity. It is equally important that the labour market functions well: this can be achieved by resolving problems in matching labour demand to supply, and by developing working life and fruitful co-operation in the labour market. The preconditions for cluster and new industry growth must be ensured. The industrial policy of the new era will identify and promote sectors whose products and services are in high demand in the growth markets of the future. Such a policy will develop the elements of the operating environment that are important to these sectors, accelerating structural change rather than slowing down renewal through corporate subsidies. One of the failings of Finnish industrial policy is the low number of competence-based companies embarking on a fast growth track. The system of public funding and business services is being renewed in order to promote the dynamics of fast growth and internationalisation. This can be implemented through, for example, regulation encouraging growth, efficient risk capital markets, new solutions for business development activities, and business service packages that support such companies. Developing the competence base requires open-minded co-operation between various fields of knowledge and networking with global top players. Competitive strength is based on creativity and the ability to get ahead of the competition in realising the needs of customers, consumers and citizens, while offering the corresponding products and services. Demand for and the utilisation of new, innovative solutions can be promoted through regulation, taxation and public procurement, as well as incentives that take account of the needs of users. Regional success depends on policies promoting specialisation based on local strengths and companies’ ability to benefit from this. Resources must be targeted at strengthening core competences, improving the versatility of industrial structures, and developing operating and innovation environments. Resources will not be targeted at structures that slow down renewal. In terms of international competitiveness, it is fundamentally important that companies are able to react quickly to changes in the market and identify new business opportunities on the international markets. Developing the operational environment of companies, strengthening demand for new, innovative solutions, and building world-class innovation clusters emerge as the focal points for labour and industrial policy. Definition of target policies: Promote new, growing and increasingly international business operations. Definition of target policies: Strengthen the preconditions of innovation activities, and create world-class innovation clusters.

Objective(s):

2.1: Open Markets

2.2: Flexibility and Security of Labour

2.2.1: Mobility

2.2.2: Forecasting

2.2.3: Equality

2.3: New Companies

2.4: Growth Companies

2.5: Competence and Renewal

2.6: Internationalisation of Innovation

2.7: New Markets

2.8: Demand and User-Centeredness

2.9: Competitive Edge

2.10: Strengths and Interaction

2.11: Research, Development and Assessment

2.12: Immaterial Rights

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