Transcript The role of Finnish Industries: Achievements to date and

Economic Outlook and
Competitiveness of Finnish Industry
Simo Pinomaa
Senior Economist
Confederation of Finnish Industries EK
[email protected]
www.ek.fi
Elinkeinoelämän keskusliitto
Finlands Näringsliv
Confederation of Finnish Industries
vvvvvvvvvvvvvvvvvvvvvvvvvvvvv
vvvvvvvvvvvvvvvvvvvvvvvv
2 EK/Eng/shs11.2004
EK represents
• The entire private sector and companies of all sizes
• 35 branch associations
• About 16,000 member companies, of which 96% are SMEs
• Over 70% of Finland’s GDP
• Over 95% of Finland’s exports
• About 950,000 employees
pp.kk.vvvv
3
Tekijä
EK activities
Business
Environment
Business
Infrastructure
• Logistics
• Energy
• Environment
and Climate
Sustainable
Development
•
Communications
pp.kk.vvvv
4
Tekijä
• Business Law
• Competition
• Information
•
Society
Trade Policy
and
International
Relations
Industrial
Relations
Economic Policy
•
•
•
•
•
•
SME-Affairs
Economy
Taxation
Employment
Finance and
Welfare
Business
Cycles and
Trends
Competitiveness
• Collective
•
•
•
•
Bargaining
Development
of Labour
Market
Labour and
Social law
Statistics and
Surveys
Corporate
Security
Regional Offices
Innovation
Environment
and Competences
• Business
•
•
•
•
Development
Education,
Training and
Qualification
Requirements
Labour and
Immigration
Research and
Technology
Business
Services and
Financing
EK Brussels
OUTLINE
• Economic Structures
• Macroeconomic Situation
• Finnish Competitiveness
From Agriculture to Services
Employment by Sector, %
pp.kk.vvvv
6
Tekijä
pp.kk.vvvv
7
Tekijä
The Volume of Industrial Production Has Doubled
pp.kk.vvvv
8
Tekijä
The Industrial Growth without Electronics
pp.kk.vvvv
9
Tekijä
pp.kk.vvvv
10
Tekijä
pp.kk.vvvv
11
Tekijä
Finland: 3 Stages of Economic Development
pp.kk.vvvv
12
Tekijä
R&D in Finland in 1985-2005
Billion EUR
5,3
5,0
4,6 4,8
5,0
4,4
4,5
3,9
4,0
3,3
3,5
2,9
3,0
2,5
2,2
2,0
1,5
1,5
1,0
5,4
1,7 1,
8
0,9
0,5
0,0
1985 1987 1989 1991 1993 1995 1997 1998 1999 2000 2001 2002 2003 2004 2005
Public sector
Source: Statistics Finland
pp.kk.vvvv
13
Tekijä
Universities
Enterprises
(estimate)
R&D Expenditure per Capita
in 2003 PPP dollars
Sweden
USA
Israel
Finland
Iceland
Japan
Denmark
Germany
Austria
Norway
Canada
France
Netherlds.
Belgium
Singapore
UK
Australia
Korea
Ireland
Italy
Slovenia
New Zeald.
Spain
Czech Rep.
0
pp.kk.vvvv
14
Tekijä
250
500
750
1000
1250
Educational achievements: OECD Pisa –study
OECD average = 500, 15 year old students
440
460
480
500
520
Finland
Korea
Japan
Canada
Australia
New Zealand
Netherlands
Belgium
Sw itzerland
Czech Rep.
Sw eden
Math
pp.kk.vvvv
15
Tekijä
Reading
Natural Sciences
Problem Solving
540
560
The Crises of the ”Finnish Model”
1991 – 1993 a collapse in employment
pp.kk.vvvv
16
Tekijä
Will the Good Economic Performance Continue?
- yes at least in the short run …
Source: European Commission, April 2007
pp.kk.vvvv
18
Tekijä
pp.kk.vvvv
19
Tekijä
pp.kk.vvvv
20
Tekijä
pp.kk.vvvv
21
Tekijä
pp.kk.vvvv
22
Tekijä
… the growth has been balanced …
pp.kk.vvvv
24
Tekijä
A Strong Current Account Surplus
pp.kk.vvvv
25
Tekijä
pp.kk.vvvv
26
Tekijä
… but in the long run?
Finland and Competitiveness
Total ranking 2003-2006
Finland
USA
Sweden
Denmark
Taiwan
Singapore
Iceland
Switzerland
Norway
Australia
Netherlands
Japan
Great Britain
Canada
Germany
Hong Kong
pp.kk.vvvv
WEF
Growth
competitiveness
2005 2004 2003
1
1
1
2
2
2
3
3
3
4
5
4
5
4
5
6
7
6
7
10
8
8
8
7
9
6
9
10
14
10
11
12
12
12
9
11
13
11
15
14
15
16
15
13
14
28
21
24
WEF
IMD
Business
Total compecompetitiveness titiveness
2006
2005
2
10
1
1
12
14
4
5
14
18
5
3
17
4
7
8
21
12
15
6
9
15
8
17
6
21
13
7
3
26
20
2
Tekijä
28
Sources: IMD, The World Competitiveness Yearbook 2006 and
WEF, The Global Competitiveness Report 2005-2006
DM 36054
05-2006 Copyright © Tekes
Ranking of Finland in IMD Total Competiteveness Indicator
0
5
10
15
20
25
30
1993
1994
1995
1996
1997
1998
1999
2000
Sources: IMD, The World Competitiveness Yearbook 2006
14.5.2005
pp.kk.vvvv
29
Simo Pinomaa
Tekijä
Lähde:IMD
2001
2002
2003
2004
2005
2006
Ro
m
Li an
th ia
u
S l an i
ov a
ak
La ia
Es tvia
to
Ir e nia
la
P o nd
B u l an d
lg
a
Cy r ia
pr
u
Cz s
Po ech
r tu
g
Sp al
Gr ain
ee
c
Un
M e
ite Hu alta
d ng
K
Lu ing ary
xe do
Ne m b m
t h ou
er rg
l
Ge and
rm s
S l an
ov y
en
ia
It
Au aly
s
Fi t ria
nl
a
Fr nd
a
B e n ce
l
De giu
nm m
S w ar k
ed
en
Total Tax Revenue as percentage of GDP
EU-countries in 2005
60
50
40
pp.kk.vvvv
30
EU-27 average 40,8 %
30
20
10
0
Source: Eurostat
Tekijä
Labour costs in various countries 2006
Industrial workers
Norway
Denmark
Germany
Finland
Netherlands
Belgium
Switzerland
Austria
Sweden
United Kingdom
Canada
Australia
France
USA
Ireland
Italy
Japan
Spain
South Korea*
Singapore
Portugal
Czech Republic
Estonia
Brazil*
Russia**
China***
India***
31.17
29.41
26.67
26.19
25.70
25.38
24.62
24.22
23.88
21.64
20.92
20.75
20.41
20.12
19.10
17.47
16.50
14.72
10.90
6.82
6.04
5.48
5.09
3.29
2.33
1.04
0.84
0
Euro/hour
5
10
15
*2005 **2004 ***2003
Source: Confederation of Sw edish Enterprise, U.S. Department of Labor, Economist, Confederation of Finnish Industries
Data mainly refers to the blue-collar w orkers in manufacturing but in some countries to all employees.
pp.kk.vvvv
7.5.2007
31
Tekijä
Saukkonen
20
25
30
35
Change of labour costs in Finland and euro area 2001 - 2006
Private sector
6.0
%
5.6
Euro area
Finland
5.0
4.2
4.0
3.9
3.8
3.5
3.1
3.1
3.1
3.1
3.0
2.4
2.5
2.4
2.0
1.0
0.0
2001
2002
2003
Source:
Eurostat (Hourly
pp.kk.vvvv
TekijäLabour Cost Index), Statistics Finland (Labour Cost Index)
7.5.2007
32
Saukkonen
2004
2005
2006*