Baltic Rim Economies 7/2013
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Baltic Rim Economies Quarterly Review ISSUE NO. 7, 18 DECEMBER 2013 EXPERT ARTICLES: Lauri Ihalainen: The Finnish marine industry in the midst of structural change Page 1 Ari Puheloinen: Security in the Baltic Sea area Page 3 Eeva-Johanna Eloranta: The Baltic connection Page 4 Jukka Kopra: Economic growth in South-Eastern Finland Page 5 Ritva Koukku-Ronde: The Baltic Sea region has a role in transatlantic relations Page 6 Elisabeth Kehrer: Austria and Finland – a partnership with room for improvement Page 7 Björn Carlson, Valery Gergiev, Juha Nurminen, Esa-Pekka Salonen and Michael Tydén: The Baltic Sea orchestra is playing out of tune Page 8 Alex Prilutskii: Evangelical-Lutheran Church of Ingria Page 9 Ilya Ermakov: CBSS Expert Group on maritime policy – towards better coherence among actors in the Baltic Sea region Page 10 Janne Laine: Cooperation with Russia benefits Eastern Finland Page 11 Maksim Meyksin: Innovation development of St. Petersburg Page 12 Irina Gladysheva: Territory available for investors Page 13 José Valanta: Vantaa – Finland’s link with the world Page 14 Juhani Pekkala: The Baltic is a challenge to trade Page 15 Kari Häyrinen: Finland welcomes foreign investors Page 16 Timo Pietiläinen: Finnvera promotes the internationalisation of SMEs in Russia Page 17 Yuri Piskulov: The joint global competitiveness – an ambitious goal of trade policy between Russia and Finland Page 18 Petri Lahesmaa: Responsible gaming system – the most efficient way to prevent money laundering Page 20 Markku Kivikoski: Technology for the benefit of people and the environment Page 21 Leonids Ribickis and Arturs Zeps: Role of advisory council in developing competitive technological universities Page 22 EXPERT ARTICLES CONTINUED ON NEXT PAGE To receive a free copy, print or register at www.utu.fi/pei Baltic Rim Economies Quarterly Review ISSUE NO. 7, 18 DECEMBER 2013 EXPERT ARTICLES CONTINUED: Matti Manninen: University of Jyväskylä – ahead of its time for 150 years Page 23 Anatoly Voronin: Petrozavodsk State University cooperation with the Finnish universities and organizations Page 24 Kalle-Antti Suominen: University of Turku – with research to better future Page 25 Hannu Salmela: The future of business education in the Baltic Sea region Page 26 Matti Lievonen: An oil company’s perspective on operating in the Baltic Rim Page 27 Klaus Töpfer and Carolin Sperk: Germany’s energy policy – responsibility and chance for sustainable development Page 28 Frank Apel: AREVA in a key position to support Baltic Rim countries in their future energy strategy Page 30 Jukka Ruusunen: Towards a Northern Dimension electricity market? Page 31 Denis Kolchin: Risks and opportunities analysis in the oil and gas industry of Russia Page 32 Artur Usanov and Alexander Kharin: Oil production in Kaliningrad Page 33 Jānis Bērziņš: Financial markets and the threat for European security Page 34 Sakari Martimo: The Finnish Naval Academy – international cooperation Page 35 Tomasz Szatkowski: Poland and prospects for defence cooperation with Nordic countries Page 36 Kari Huhta: Debating NATO in Finland and Sweden – some wind, less motion Page 37 Lauri Kontro: Northern Europe as a model region for agriculture Page 38 Anna Scherbakova: Investment climate of St. Petersburg in the mirror of media Page 39 Jürgen Sorgenfrei: German Baltic ports – forecast 2030 Page 40 Sturla Henriksen: High North – high stakes: maritime activities in the Arctic Page 41 Stephen Blank: The Arctic as a manifestation of international transformation Page 42 Ulrika Larpes: Shipping as a strategic enabler for Finnish industry Page 44 EXPERT ARTICLES CONTINUED ON NEXT PAGE To receive a free copy, print or register at www.utu.fi/pei Baltic Rim Economies Quarterly Review ISSUE NO. 7, 18 DECEMBER 2013 EXPERT ARTICLES CONTINUED: Beata Madejska: Lower emissions from ships in the light of provisions of “sulphur directive” adopted by the European Union Page 45 Jaakko Mäkikalli: The power of personal and genuine encounters – the key to the success of fairs Page 46 Shinichiro Tabata: Will the boom in Japan-Russia economic relations continue? Page 47 Henrikki Tikkanen: Large Finnish companies’ international business strategies – an outlook Page 48 Kirsi Vainio-Korhonen: Maternity health – political issue in 18th century Finland and Sweden Page 49 Jukka Korpela: Positive and negative market forces in university life Page 50 Yuri Mazurov: Sport in modern society – reflections on the eve of the Olympic Games in Sochi Page 51 Petri Minkkinen: Karelia in the Finnish-Russian relations Page 52 Kirsti Virtanen: Russian cooperation in Finnish universities of applied sciences Page 53 Dmitry Gudimenko: Urban development cooperation in the Baltic region Page 55 Tomas Janeliūnas: Third party in the EU EaP Programme Page 56 Ihor Lishchynskyy: International relations of Ternopil National Economic University and Baltic Rim universities Page 57 Matthew Broad: Anglo-Nordic relations – past, present, future Page 58 To receive a free copy, print or register at www.utu.fi/pei Expert article 1401 Baltic Rim Economies, 18.12.2013 Review 7▪2013 The Finnish marine industry in the midst of structural change By Lauri Ihalainen Vigorous structural change is currently going on in the construction and next for the shipping company making the Finnish marine industry. One of the leading enterprises in the order, which are subjected to competitive bidding with regard field, STX Finland Oy, is suffering from the financial problems to the financial terms and conditions of special financing of its Korean parent company, STX Group, which culminated institutions, leading to competition between states. in the company’s debt restructuring; while a large order Does the Finnish shipbuilding industry have a future, in considered as certain was cancelled with regard to another view of the fact that we only get continuously bad news from leader in the field, Technip Offshore Finland Oy. These have the field? From the employment figures angle, the figures for led to the highly regrettable termination of the Rauma the shipbuilding industry also appear to have declined in Shipyards, which were rich in tradition, as well as the co- 2013. At the outset of 2012, the marine industry still operation negotiations and dismissals in the companies employed almost 18,000 people in Finland, of which over concerned and within the subcontracting chain. 80% worked outside the shipyards. Approximately 3,300 At the same time that the shipbuilding industry suffers people worked in the shipyards, but this figure can be from the lack of industrial competitiveness afflicting Finnish reckoned to be considerably smaller due to the changes at industry in general, shipbuilding yards in particular are STX Finland Oy and Technip Offshore Finland Oy. troubled by global over-capacity, which makes such Nevertheless, almost 50% of Finland's marine industry competition severe and partly unhealthy. However, business personnel were employed by Finland’s international system activity is still profitable and abundant growth opportunities and device supplier enterprises, for whom the Finnish are on the horizon in many of Finland’s marine industry shipyards are one customer among others. companies, global equipment and system suppliers and Even so, maritime transport, the marine industry and design-field companies, as well as in firms serving the offshore operations are future growth areas. Goods and offshore field and Arctic shipping. Also marine industry people shall be transported in larger numbers in the future, subcontractors who in the past were mainly concentrated on the search for natural resources shall extend to more and domestic demand have found new markets in, for instance, more difficult areas (deeper waters and arctic regions), and Norway and Russia. Well managed, the next renewal the opening of northern sea routes as well as more stringent resulting from structural change could lead to fortification of environmental regulations on maritime transport shall competitive ability. demand increasingly advanced and environmentally- The shipyards’ order books increased throughout the friendlier vessels. All of this raises the challenges to know- period from 2002 until the worldwide economic crisis that how in the field, but at the same time this represents the core started in the autumn of 2008. With the growth in the number of Finnish marine industry expertise. of orders, new shipyards were built in abundance in various Through the ages, shipyard operations have formed the parts of the world; for instance, merchant vessels were core of the Finnish marine industry. Impressive, demanding ordered and constructed considerably more than was types of vessels and offshore structures have established a required on the basis of their actual transport needs. This led global reputation for Finland as an expert in demanding to an oversupply of both ships and shipbuilding capacity – structures. Alongside shipyards and offshore machine shops, which still troubles the shipbuilding market today. As a result a versatile marine industry-based cluster of expertise has of the crisis, the overcapacity of the shipyards was not taken shape in Finland and, given the correct measures, they allowed to unwind: on the contrary, states began to prop up may remain here in the future as well. their shipbuilding industries with various support Amongst the first in the group, Finland and Finnish programmes. operators have to adapt to increasingly stringent The crisis also led to changes in market shares. environmental