National innovation system profile of Finland

Finland's competitive position is facing challenges and its large export businesses have suffered. Considering its high level of R&D inputs, the country has a relatively low contribution of high-tech and medium-high-tech goods to the trade balance. Within the past few years, the decline of the important electronics (telecommunications) sector in particular has created pressure for structural change in Finland. The decline of this sector is reflected in a decrease in business R&D investments - dominated by Nokia. Consequently, the extent to which the business and public sectors will be capable of absorbing new innovations from the ICT sector - and more concretely the available highly-skilled human resources - is considered a determinant for new growth. The action plan for research and innovation policy presents four major themes where Finnish research and innovation policy needs to improve itself (MEC and MEE 2012): (1) Increasing the attractiveness of Finland and enhancing the internationalisation of the RDI system. (2) A research and innovation system with better quality and more flexibility: Structural reforms of funding agencies, research institutes and universities have advanced creating relevant mergers and further coordination that are expected to improve, together with more excellence driven funding models, the quality of scientific research. (3) Increasing effectiveness by expanding the scope of innovation activities and increasing experimentation and (4) Greater value and new competitive advantages through intangible investments. In May 2015, a new Centre Party -led government started its reign. In its strategic programme, the new government states that Finland's competitiveness is built on high expertise, sustainable development and open-minded innovations based on experimentation and digitalisation.