The Prerequisites for Increasing the R&D Activity of Companies in Finland

Jyrki Ali-Yrkkö, Kimmo Halme, Matthias Deschryvere, Janne Lehenkari, Kalle Piirainen and Arho Suominen

No 98, ETLA Brief from The Research Institute of the Finnish Economy

Abstract: Abstract This study focuses on factors affecting companies’ research and development (R&D), Finland as a location for R&D activities, and R&D intensity (R&D/GDP). According to our results, R&D investments are increasing in Finland but the R&D intensity will not reach 4 % target by 2030. Our results showed that Sweden, Estonia (and to some extent other Baltic countries), and Germany are Finland’s main competitors regarding the location of R&D investments. The key factors affecting R&D location are the availability of R&D personnel, and the geographical proximity to the companies’ other units and customers. We recommend comprehensive and long-term innovation policy which considers policy actions – not only affecting the increase of R&D and its impacts – but also the increase of capabilities. It should be noted, however, that rather than the ultimate target, R&D is a means to reach other goals.

Keywords: R&D; Research; Development; Target; Location; Factors; Private; Company; Firm; Competition (search for similar items in EconPapers)
JEL-codes: D22 D25 E22 F23 H25 O3 O32 O38 (search for similar items in EconPapers)
Pages: 7 pages
Date: 2021-09-09
New Economics Papers: this item is included in nep-cis, nep-cse, nep-eur, nep-isf, nep-mac, nep-sbm and nep-tid
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