Finland as a Knowledge Economy : Elements of Success and Lessons Learned
2006
Dahlman, Carl J. | Routti, Jorma | Ylä-Anttila, Pekka
In the early 1990s, Finland went through watershed developments due to a severe economic recession, during which unemployment rates rose from around 2 percent to over 15 percent and GDP decreased by more than 10 percent. However, in one decade Finland became the most ICT-specialized economy in the world. Three times it has ranked number 1 in the World Economic Forum's (WEF) competitiveness index. It also ranked highest in the OECD's Program for International Student Assessment (PISA) studies of learning skills and educational attainment. This paper includes the following headings: introduction; Finland's knowledge economy today; structural changes in the Finnish economy - from agriculture to high-tech; changes in the economic and institutional regimes; innovation and education strategies and policies in Finland; sectoral perspectives on the Finnish knowledge economy -- from forest-related industries to ICT; challenges to the Finnish knowledge economy -- what's ahead; and conclusions and lessons from Finland's knowledge economy for other economies.
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