Finland Capital Helsinki Currency Euro (EUR) Population 5.22 million EU status Member GDP $151.2 billion Employment 91.1% Government type Republic Religions Lutheran National Church 84.2%, Greek Orthodox in Finland 1.1%, other Christian 1.1%, other 0.1%, none 13.5% (2003) Languages Finnish 92% (official) Swedish 5.6% (official) other 2.4% (small Sami- and Russian-speaking minorities) (2003) Exports $67.88 billion f.o.b. (2005 est.) Imports $56.45 billion f.o.b. (2005 est.)

Finland

From a primary products exporter, mainly of timber in the 1930s, to a major pulp and paper exporter in the 1950s through the 1970s, this daughter of the Baltic today tops global rankings in terms of education, research, and product development. The level of information society development in Finland is among the highest in the world. The worldwide success of Nokia, the Finnish face of communications technology, has significantly boosted the country’s economic growth in recent years. Today, Finland has one of the best-performing economies in the EU.

Sailboats docked at a marina in Helsinki

A knowledge society

For American investors, Finland is attractive on many fronts. Finns are experienced in doing global business, some 40% of the GDP stems from exports. The globally oriented Finns are also highly educated, with a public commitment of developing Finland into a sustainable “knowledge society”. Finland is a world leader in collaboration and knowledge transfer between companies, universities and research institutes. Unsurprisingly, a number of leading multinationals have decided to locate to Finland to profit from these focal points of research, education and innovation. Furthermore, 90% of all Finns under 30 speak English, and English serves as the language of business.

Overall, business practices in Finland are straightforward and reflect Finnish qualities such as punctuality and honesty. In recent years, Finland has led global rankings especially in terms of competitiveness and lack of corruption. According to Transparency International’s Corruption Perception Index, Finland has been deemed the least corrupt country in the world five times over, taking second place in 2005.

R&D Flagship

One of Finland’s flagships is its advanced R&D infrastructure and thereby the access to technological expertise. The World Economic Forum’s study, which assigns scores to nations by considering factors such as government economic policy, the strength of local institutions, and the degree to which technology has been used to bolster growth, ranked Finland as the most competitive economy in the world for the third consecutive time in 2005. Also in 2005, the United Nations Conference on Trade and Development (UNCTAD) ranked Finland second in the global innovation capability index. That said, Finland boasts a very high number of patent applications for high technology products. Also, investment in R&D as a percentage of GDP is among the highest in the world.

A platform for business

Finland is a great platform for any globally oriented business, offering immediate access to Northern Europe — a growing market with over 80 million consumers. With EU enlargement, Northern Europe is even more attractive as a base for business due to its strategic geographical position, providing excellent access to growing markets. Finland has the longest land border with Russia of any EU member state, with much of the EU transit trade to Russia passing through Finland. Due to its central location and convenient global connections, Finland provides a strong potential base for direct investment in the neighbouring areas. Foreign-owned companies increasingly operate in Finland to serve the Finnish and surrounding markets. Finland is also a growing hub for transport to Asia. A member of the European Union since 1995, Finland continues to be the only euro zone country among the Nordics. Finland will take over the rotating EU Council Presidency in the second half of 2006, and is also to be the seat of the EU Chemicals Agency.

A global leader

Olympic Stadium of Helsinki

Certain industry sectors have risen to the forefront of the Finnish business horizon. ICT has propelled Finnish industry to the global forefront of productivity, efficiency and growth. This competence base is globally unique and offers great potential for innovation and technology transfer. Finland is one of the top manufacturers and exporters of information and communications technology products in the world.

Finland is also a global leader in bioenergy technologies, wastewater management and distributed energy production. The Finnish biotech industry ranks high in Europe, with strengths particularly in pharmaceuticals, new biomaterials, diagnostics, industrial enzymes and genome research. Finnish biotech companies offer excellent networking opportunities and sharing in R&D benefits.

Other highly promising sectors for foreign companies in the expanding markets of Northern Europe include: information and communications technology, environmental technology and services, healthcare, forestry, mining, as well as trade and services.

Life beyond work

Foreign executives arriving in Finland enjoy a Nordic lifestyle in one of the last frontiers of untamed wilderness in Europe. Finland offers unique outdoor recreational opportunities in each of the four seasons. Finland is also one of the world’s safest countries, the product of a modern welfare state with a stable social structure, where public services benefit society as a whole through universal health care and education.

With its highly skilled workforce, advanced technological resources, and responsiveness to business needs, Finland’s unique mix of technology, innovation and competitive environment offers many attractive investment opportunities.

 

Facts in brief

Finland’s location is Northern Europe, bordering the Baltic Sea, Gulf of Bothnia, and Gulf of Finland, between Sweden and Russia. Long border with Russia; Helsinki is northern-most national capital on European continent; population concentrated on small south-western coastal plain

Its climate is cold temperate: potentially subarctic but comparatively mild because of moderating influence of the North Atlantic Current, Baltic Sea, and more than 60,000 lakes

Natural resources include timber, iron ore, copper, lead, zinc, chromite, nickel, gold, silver, limestone

Agricultural products are barley, wheat, sugar beets, potatoes; dairy cattle; fish

Industries include metals and metal products, electronics, machinery and scientific instruments, shipbuilding, pulp and paper, foodstuffs, chemicals, textiles, clothing

Diplomatic representation in the US — Chief of mission: Ambassador Pekka Lintu

Diplomatic representation from the US — Chief of mission: Ambassador Marilyn Ware

 

Contact Information

The American Chamber of Commerce in Finland
Vilhonkatu 6A
00100 Helsinki
Finland
Tel: +358 45 1335027
E-mail: henna.pontinen@amcham.fi
Website: www.amcham.fi

Useful websites

www.investinfinland.fi	Finnish investment agency
www.stat.fi	Statistics Finland
www.usembassy.fi	US Embassy in Finland
e.finland.fi	The technology and ICT markets in Finland
www.ek.fi	Confederation of Finnish Industries
www.valtioneuvosto.fi	The Finnish government
www.finnfacts.com	Business news, economic and business update
www.visitfinland.com	Tourist information

 

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