Towards new growth business - thisisFINLAND: Facts: Politics & economy

Towards new growth business - thisisFINLAND: Facts: Politics & economy: "Stimulating clusters

Amid the severe recession of the early 1990s, Finland embraced a national export-led cluster strategy, which proved enormously successful – but has now been exhausted.

In the past two decades, the Finnish core clusters – forestry (dominated by UPM-Kymmene, Stora Enso and Mets�liitto), metal engineering (Kone, Metso, Outokumpu and Ruukki), mobile communication (Nokia) and chemicals (Kemira and Orion) – have demonstrated increasing productivity and innovation.

These flagship companies have given rise to new business, but their clusters have not led to new growth firms.

In the Finnish national innovation system, there have been increasing efforts to “stimulate” new business through a dozen national competence clusters, more than 20 centres of expertise, and half a dozen public-private strategic centres for science, technology and innovation.

Along with an array of technology development and innovation institutions, these initiatives seek to facilitate international competence as a resource in business operations, job creation and regional development.

Still, a critical mass of new growth businesses has not yet materialised."