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Finland Fact Book Focus Areas of Finnish Business

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Finland Fact Book Focus Areas of Finnish Business FINLAND FACT BOOK FOCUS AREAS OF FINNISH BUSINESS BIOECONOMY CLEANTECH R&D AND INNOVATION World-class Finnish First-class cleantech Finland at the top of expertise in future competence from R&D spending per CONTENTS growth areas. Finland. capita. Why Finland? ....................................................................... 1 An incentive destination for business travel ..........2 Facts about Finland ......................................................... 4 Political system ................................................................. 6 Geography, natural resources and climate .............7 HEALTHCARE ICT TRAVEL AND Better life in Finland ........................................................ 8 AND TOURISM Economy and business outlook ...............................10 WELLBEING Great ICT market Finland’s dynamic Government policy in a knowledge-based Excellent research potential with R&D business climate and economy .............................................................................12 opportunities in Finland. expertise. unique environment Foreign direct investments (FDI) ...............................16 Research, development & innovation .................. 20 Principal industrial and business sectors .............24 Business environment ................................................. 30 Investment incentives ..................................................36 MANU­ RETAIL MINING Setting up a business in Finland ...............................38 Employment and the labour market ......................44 FACTURING A nation of builders with Finland central to Russia The right geology and a Legal framework – corporate law............................ 52 high productivity. and Nordic and Baltic long mining tradition in Taxation ..............................................................................54 countries. Finland. Meeting Finns in business ...........................................56 WELCOME WHY TO FINLAND FINLAND? HOW CAN A NATION OF FIVE MILLION CONSISTENTLY TOP NUMEROUS INTERNATIONAL SURVEYS? DEAR READER Thanks to the close cooperation between Finland is an economically and politically stable business and the institutes of higher learning, society and has been a member of the Euro- companies can benefit directly from the aca- pean Union since 1995. The Finnish economy is demic excellence of the Finnish universities. knowledge-based and strong on innovation. The Finland welcomes international compa- longstanding national investments in nies and entrepreneurs to explore the innovation and a forward-looking various business opportunities and technology policy have pro- excellent infrastructure that our duced world class expertise in country can offer. All compa- many sectors of the Finnish nies registered in Finland en- In Finland, you have a dynamic business environ- in Finland. It is our experience that foreign compa- economy. For many years joy the same benefits, grants ment where everything works. Thanks to its early nies locate in Finland for the long-term and enjoy Finland has also been among and access to the national adoption of information technology, unique co- high return on investment. Today, foreign-owned the top countries globally in technology programs, irre- operation between educational and research insti- companies account for more than 20% of corpo- terms of R&D spending per spective of the nationality of tutions and industry, as well as a skilled workforce rate turnover in Finland, and their number is con- capita. the company’s ownership. receptive to new technologies, Finland is an ideal stantly growing. Finland has several high- Ministry of Employment test bed for new solutions and technologies. Cou- Finland has become the base for a number of tech clusters with many technol- and the Economy and our national ple this with a sophisticated infrastructure, highly foreign companies taking advantage of the vibrant ogy companies that have cutting-edge investment promotion agency Invest in competitive operating costs and strategic location start-up scene, highly educated employees and expertise. Finland’s particular strengths include Finland are pleased to give you further informa- in Northern Europe, and you have a market that their work ethic. Although the high-tech sector is Information & Communication Technology (ICT), tion and assistance for the successful establish- offers great opportunities for success and solid the best known globally, Finland has also man- Cleantech, Renewable Energy, Health Care and ment of your business in Finland. growth. aged to thrive with traditional industries such as the Pharmaceutical, Bio and Medical Industries, Non-existent corruption and minimal red tape forestry and metals. Companies are also investing as well as the Mining, Forest and Chemical In- Sauli Niinistö are additional reasons for establishing a business heavily in new industries such as biofuels. dustries. President of the Republic of Finland 1 EXCELLENT AN INCENTIVE DESTINATION DESTINATION 1st 1st FOR BUSINESS IN WEF´S HUMAN IN HIGHER CAPITAL INDEX EDUCATION AND FOR BUSINESS TRAVEL (Quantifies how TRAINING ** 124 countries are You will, of course, find the best hotels, fine din- What you will not find elsewhere is the unique developing and deploying their human ing, international events and venues, and modern combination of adventure and soothing silence, capital and tracks meeting and convention facilities across the scale. in one of the purest natural settings in the world. progress over time.) That is to be expected of an area that especially Winter or summer, there are plenty of new and welcomes business visitors. stimulating experiences to be gained. We like to think of them as making business a pleasure. 1st 1st IN THE HEALTH AND IN INNOVATION ** PRIMARY EDUCATION ** 1st 2nd COUNTRY IN EUROPE IN AVAILABILITY OF IN LEARNING SKILLS SKILLED LABOUR *** BETWEEN EAST AND WEST AMONG 15-YEAR- AVERAGE FLIGHT TIME TO HELSINKI OLDS ***** NEW YORK LONDON BRUSSELS FRANKFURT COPENHAGEN BERLIN STOCKHOLM 8h 45min 3h 5min 2h 40min 2h 35min 1h 40min 2h 55min 2nd 3rd IN EDUCATIONAL LEAST CORRUPTED SYSTEM *** COUNTRY IN THE WORLD **** ST. MOSCOW DELHI SEOUL TOKYO BANGKOK SINGAPORE PETERSBURG 1h 10min 1h 30min 6h 30min 8h 50min 9h 40min 9h 45min 11h 45min 4th 4th MOST COMPETITIVE IN TALENT (out of 60 ECONOMY IN THE countries) *** WORLD (out of 144 countries) ** BEIJING XI’AN CHONGQING SHANGHAI HONG KONG 7h 40min 7h 50min 8h 30min 9h 5min 9h 50min *Human Capital Report 2015 ** The World Economic Forum, Global Competitiveness Report 2014–2015 *** IMD, World Talent Report 2014 **** Transparency International 2014 Photo: Vastavalo ***** OECD’s PISA study 2012 2 3 FACTS ABOUT FINLAND TOTAL AREA NATURAL DISTANCES BIGGEST RESOURCES CITIES 338,435 km2 • forests of which 90% land and 10% • copper 1,160km internal waters. Of the land from north to south, • iron ore area 77% is forests and other • other minerals woodland and 9% agricultural 540km • fresh water from west to east land. TIME POPULATION POPULATION DENSITY UTC +2 HOURS OULU, population 194,000 during winter, UTC +3 HOURS during summer Sweden Finland 5.5 million 17.9inhabitants per km 2 Norway TAMPERE, population 220,000 LIFE EXPECTANCY LANGUAGES RELIGIOUS VANTAA, population 208,000 AT BIRTH Others 6% COMMUNITIES TURKU, population 182,000 HELSINKI, population 613,000 Females Males Swedish Lutheran 75% 83.5 77.5 5% Finnish Orthodox 1% ESPOO, population 261,000 years years 89% No religious affiliation22% Estonia Russia Denmark Latvia 4 5 Finland is a republic and became independent in Finland joined the European Union in 1995 1917. The current head of state is President Mr Sauli and is known for its active role in the interna- A STABLE POLITICAL Niinistö who was elected in early 2012. The single tional community and has played a major role as chamber parliament has 200 members and is a bridge between the East and the West. Former elected for a four-year term by direct popular vote president Mr Martti Ahtisaari was awarded the SYSTEM BOOSTS under a system of proportional representation. Nobel Peace Prize in 2008, and Finnish soldiers Finland’s multi-party democracy is characterized participate in peacekeeping missions around the THE ECONOMY by consensus and pragmatic policies implement- world. ed by coalition governments. THE FUND FOR PEACE (FFP) RANKED FINLAND THE MOST STABLE COUNTRY IN THE WORLD FOR THE SECOND CONSECUTIVE YEAR IN 2014. THE SCORE IS GEOGRAPHY, BASED ON KEY POLITICAL, SOCIAL AND ECONOMIC NATURAL RESOURCES INDICATORS AND MORE THAN 100 SUB­INDICATORS, INCLUDING PUBLIC SERVICES, INCOME DISTRIBUTION, AND CLIMATE HUMAN RIGHTS AND THE RULE OF LAW. Finland is a country of forests, lakes and islands. resources and minerals, for example iron ore, cop- Areas of exceptional natural beauty include Lap- per, lead, zinc, chromite, nickel, cobalt, gold, silver, land in the north, the Lakeland region in eastern phosphate, limestone, talc, quartz and uranium. Finland and the archipelago along the south- Finland’s climate has four distinct seasons. western coast. It is Europe’s largest archipelago, The summers are usually fairly warm with tem- and also includes the semi-autonomous province peratures rising above +20 degrees Celsius. In of Åland (Ahvenanmaa). Inland, there are 187,888 Lapland, the sun does not set during the summer lakes dotted with islands. Space and a rare tran- months. Finnish winters can be cold and tempera- quillity are some of Finland’s greatest assets. tures below –20 degrees are not uncommon. The Finns like to
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