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Sources of economic growth : Sources of economic growth Fundamental drivers of growth Human capital Randamp;D Innovations Countries respond differently to fundamental drivers Opening up of product and service markets Flexibility of the regulatory framework Opening the way for small highly innovative companies to flourish Macroeconomic policies low and stable inflation moderate tax burdens openness to international trade DM 36095 01-2005 Copyright © Tekes Source: True growth Understanding Economic Growth, OECD, 2004


New economic growth model – sources of economic growth : New economic growth model – sources of economic growth DM 36095 and 218475 09-2006 Copyright © Tekes Productivity growth Growth in well-being According to the new growth model, economic growth is rooted in education, research and technology.


GDP per capita : GDP per capita DM 36095, 36097 and 218475 08-2006 Copyright © Tekes USD in current prices and PPPs GDP in Finland has grown at a rate faster than the OECD average both before and after the recession. 35,000 30,000 25,000 20,000 15,000 10,000 5,000 0 Figures for Finland according to new calculations from Statistics Finland. Sources:: For Finland: ETLA 2006; for OECD: OECD


GDP per capita in 2006 : GDP per capita in 2006 Sources Maddison (2003); IMF and ETLA DM 36054, 36095 and 218475 11-2006 Copyright © Tekes USD, international prices in 2004 0 10,000 20,000 30,000 40,000


Structural changes in Finnish industryreviewed by development of employment : Structural changes in Finnish industry reviewed by development of employment Level of know-how High Low Index, 1980 = 100 Source: Mika Pajarinen andamp; Pekka Ylä-Anttila: Maat kilpailevat investoinneista - teknologia vetää sijoituksia Suomeen, ETLA B 173 (2001) DM 36095 04-2002 Copyright © Tekes


Number of companies in industry andknowledge intensive services : Number of companies in industry and knowledge intensive services Number of companies Randamp;D investments in the high tech and mid-technology sectors are at least 2 per cent, in other industries less than 2 per cent of turnover. Know-how intensive services include banking and insurance services, postal services and telecommunications, leasing of equipment, Randamp;D, information technology and other business services and education, health and social services. DM 36095 and 38065 03-2006 Copyright © Tekes Other industry Knowledge intensive services High tech and mid-tech industry Knowledge intensive services without educational, health and social services Source: Statistics Finland


Personnel in industry andknowledge intensive services : Personnel in industry and knowledge intensive services Personnel, 1,000 persons Other industry Knowledge intensive services High tech and mid-tech industry Knowledge intensive services without educational, health and social services Source: Statistics Finland Randamp;D investments in the high tech and mid-technology sectors are at least 2 per cent, in other industries less than 2 per cent of turnover. Know-how intensive services include banking and insurance services, postal services and telecommunications, leasing of equipment, Randamp;D, information technology and other business services and education, health and social services. DM 36095, 38065 and 218475 08-2006 Copyright © Tekes


Turnover in industry andknowledge intensive services : Turnover in industry and knowledge intensive services Turnover, billion euros Other industry Knowledge intensive services High tech and mid-tech industry DM 36095 and 218475 08-2006 Copyright © Tekes Knowledge intensive services without educational, health and social services Randamp;D investments in the high tech and mid-technology sectors are at least 2 per cent, in other industries less than 2 per cent of turnover. Knowledge intensive services include banking and insurance services, postal services and telecommunications, leasing of equipment, Randamp;D, information technology and other business services and education, health and social services. Source: Statistics Finland


Share of manufacturing in GDP : DM 36095 01-2005 Copyright © Tekes Share of manufacturing in GDP Sources: OECD; Statistics Finland; ETLA % Ireland FINLAND Germany Sweden Japan Great Britain


The impact of manufacturing outsourcing in the employment of B-to-B services : The impact of manufacturing outsourcing in the employment of B-to-B services DM 36095 11-2004 Copyright © Tekes Sources: Statistics Finland and EK 1,000 employees Employment in industry has decreased with approximately 150,000 people in 20 years. Outsourced services taken into account, industrial employment has remained at the level of the late 1970’s.


Increase in employment in networked andnon-networked companies : Increase in employment in networked and non-networked companies Industry 60951264 01-2005 Copyright © Tekes 1994 = 100 Source: The Confederation of Finnish Industries EK Highly networked Networked Non-networked


Increase in employment in networked andnon-networked companies : Construction Increase in employment in networked and non-networked companies 1994 = 100 Highly networked Networked Non-networked 60951264 01-2005 Copyright © Tekes Source: The Confederation of Finnish Industries EK


New foreign companies and acquirements in Finland : New foreign companies and acquirements in Finland DM 36095 03-2006 Copyright © Tekes Source: Invest in Finland Companies 165 139 198 243 238 177 168 190 185


Share of ICT employees of total labour force : Share of ICT employees of total labour force % Source: Statistics Finland DM 36095 11-2004 Copyright © Tekes Finland


Turnover in the IT cluster : Turnover in the IT cluster DM 36095 11-2004 Copyright © Tekes Source: Statistics Finland Equipment production 1993 = 100 Index Services Content production All branches


Use of ICT in enterprises by branch : Use of ICT in enterprises by branch DM 36095 05-2005 Copyright © Tekes All Construc- tion Hotels and restaurants Transport Motor vehicles, sales etc. Retail Manufac- turing Post and tele- comm. Commission- and wholesale Business services Source: Statistics Finland Spring, 2004 %


Use of ICT in enterprises by size : Use of ICT in enterprises by size Spring, 2004 Source: Statistics Finland DM 36095 03-2005 Copyright © Tekes Number of employees %


IT-expenditures in percent of GDP : IT-expenditures in percent of GDP In 2004 DM 36095 and 36054 03-2006 Copyright © Tekes Source: European Innovation Scoreboard 2005


Broadband penetration rate : Broadband penetration rate Per 100 inhabitants in 2004 Source: European Innovation Scoreboard 2005 DM 36095 and 36054 08-2006 Copyright © Tekes