Productivity has picked up lately. Nevertheless, policies need to enhance framework conditions further and to support innovation and foster inclusive growth.
- Streamline regulations in transport and construction.
- Reinforce cooperation between companies, particularly start-ups, and universities.
- Reduce taxes on labour to improve work incentives, and raise indirect taxes and recurrent taxes on property.
- Reduce the number of products subject to reduced VAT rates.
- Ensure that financial regulation supports new forms of financing, while guaranteeing financial stability and investor protection.
- Design public procurement to encourage innovation.
Source: OECD May 2017 Economic Outlook database
Maliranta, M., P. Rouvinen and P. Ylä-Anttila (2010), “Finland’s Path to the Global Productivity Frontier Through Creative Destruction”, International Productivity Monitor, 20(10), 68-84.
Ministry of Employment and the Economy (2015), Service Economy Revolution and Digitalisation, Finland’s Growth Potential, Publications of the Ministry of Employment and the Economy, Innovation, No. 41/2015, Helsinki.
OECD (2016), OECD Economic Surveys: Finland 2016, OECD Publishing, Paris. (Chapter 1. Boosting Productivity).
Productivity - enhancing institutions
The Ministry of Employment and the Economy (MEE) is responsible for the operating environment underpinning entrepreneurship and innovation activities, securing the functioning of the labour market and workers’ employability, as well as for regional development.
The Research and Innovation Council, chaired by the Prime Minister, advises the Government and its Ministries in important matters concerning research, technology, innovation and their utilisation and evaluation. The Council is responsible for the strategic development and coordination of Finnish science and technology policy as well as of the national innovation system as a whole.