Investmentguide Finland

2009
Finland
and Helsinki
Fact Book
A guide to doing
cost-effective business
in Finland
Welcome to Finland
DEAR READER DEAR READER
Finland is an economically and politically stable society and has been a Invest in Finland is the national investment promotion organisation
member of the European Union since 1995. The Finnish economy is know- committed to encouraging FDI and making business grow. We assist foreign
ledge-based and strong on innovation. The longstanding national invest- companies in their direct investments and build international co-operation
ments in innovation and a forward-looking technology policy have produced on a win-win basis in order to create added value to the national economy
world class expertise in many sectors of the Finnish economy. For many and to the industrial, service and logistical structure of the country.
years Finland has also been among the top countries globally in terms of
R&D spending per capita. We offer our clients an in-depth analysis and consulting on all the different
investment alternatives; greenfield investments, an acquisition of an existing
Finland has several high-tech clusters with many technology companies Finnish company, joint ventures or R&D Co-operation.
that have cutting-edge expertise. Finland’s particular strengths include
Information & Communication Technology (ICT), Cleantech, Renewable The services are tailored to the specific needs of the client and cover every
Energy, Health Care and the Pharmaceutical, Bio and Medical Industries, stage of setting up business in Finland, from initial data collection and
as well as the Mining, Forest and Chemical Industries. Thanks to the opportunity analysis to the actual business launch. The client company
close cooperation between business and the institutes of higher learning, is also shown how it can access the investment incentives offered by the
companies can benefit directly from the academic excellence of the Finnish Finnish government and regional bodies, and how to benefit from the
universities. world-leading research collaboration between Finnish universities and the
private sector.
The Ministry of Commerce of the People’s Republic of China and the Ministry
of Employment and the Economy of Finland have signed a Memorandum of With this investment guide Invest in Finland invites you to explore Finland’s
Understanding on bilateral investment promotion. The aim of this MoU is excellent business opportunities. We are more than happy to give you further
to encourage bilateral investments and it forms a solid base for new invest- information about these and other projects and opportunities in Finland.
ments between our two countries.
Finland welcomes Chinese companies and entrepreneurs to explore the

various business opportunities and excellent infrastructure that our country Tuomo Airaksinen
can offer. All companies registered in Finland enjoy the same benefits, CEO
grants and access to the national technology programs, irrespective of the Invest in Finland
nationality of the company’s ownership.
My Ministry and our national investment promotion agency Invest in

Finland are pleased to give you further information and assistance for the
successful establishment of your business in Finland.
Mauri Pekkarinen
Minister of Economic Affairs
the Ministry of Employment and the Economy
2 Investment Guide Book Investment Guide Book 3

Contents Why Finland?
2 Welcome to Finland Bangkok 9 h 45 min

Tokyo
Beijing 7 h 40 min
5 Why Finland? New York
Berlin 2h
6 The Finland Experience Seoul Brussels 2 h 40 min
Copenhagen 1 h 40 min
10 Business Outlook Beijing Shanghai
Frankfurt 2 h 40 min
13 Research, Development & Innovation Hong Kong 9 h 50 min
Hong Kong
15 Principal Industrial and Business Sectors London 3 h 10 min
Moscow 1 h 45 min
22 Business Environment Helsinki Mumbai 7 h 25 min
Stockholm
26 Investment Incentives Copenhagen
St. Petersburg
New York 8 h 40 min
Moscow
London
Bangkok
Paris 3 h 05 min
28 Setting up a Business in Finland Brussels Berlin Seoul 8 h 30 min
Paris Frankfurt
31 Employment and the labour market Shanghai 8 h 55 min
St. Petersburg 1 h 05 min
34 Visas, work and residence permits
Mumbai Stockholm 55 min
36 Legal Framework – Corporate Law Tokyo 9 h 25 min
37 Taxation
40 Baltic Sea Region

How can a nation of five million consistently top numerous international
surveys? In Finland, you have a dynamic business environment where
42 Helsinki everything works. Thanks to its early adoption of information technology, • One of the most competitive
unique co-operation between education, research and industry, as well as a economies in the world, WEF Global
44 Welcome to Helsinki
skilled workforce receptive to new technologies, Finland is an ideal test bed Competitiveness Report 2007
45 Greater Helsinki for new solutions and technologies. Couple this with a sophisticated infra- • The least corrupt country in the
47 Helsinki Ecosystems structure, highly competitive operating costs and strategic location in world, Transparency International
Northern Europe, and you have a market that offers great opportunities for • Ranked best in the Environmental
51 Helsinki infrastructure
success and solid growth. Sustainability Index, WEF
53 Costs • Europe’s top educational system,
55 Helsinki workforce Non-existent corruption, and minimal red tape are additional reasons IMD World Competitiveness
58 Quality of life for establishing a business in Finland. It is our experience that foreign Yearbook 2006
companies locate in Finland for the long-term and enjoy high return on • Ranked best in knowledge transfer
61 Helpful Organizations
investment. Today, foreign-owned companies account for more than 20% between universities and companies,
of corporate turnover in Finland, and their number is constantly growing. IMD 2006
• Top in the OECD’s PISA study of
learning skills among 15-year-olds
AN INCENTIVE DESTINATION FOR BUSINESS TRAVEL • Number three globally in R&D
You will, of course, find the best hotels, fine dining, international events spending per capita
and venues, and modern meeting and convention facilities across the scale. • The only Eurozone country in
That is to be expected of an area that especially welcomes business visitors. Northern Europe
• Strategic geographic position in
What you will not find elsewhere is the unique combination of adventure the expanding markets of Northern
and soothing silence, in one of the purest natural settings in the world. Europe
Winter or summer, there are plenty of new and stimulating experiences to
be gained. We like to think of them as making business a pleasure.

The Finland Experience
Finland is a stable society with an advanced industrial economy and THE FINNISH ECONOMY
a world leading business environment that is highly conducive to foreign
investment. Since joining the European Union in 1995, Finland has enjoyed Main economic indicators, Finland Gross Domestic product,
a period of sustained growth and political stability that has made the 2005 2006 2007 2008* 2009* 2010* Finland
country one of the most open, competitive and successful economies in GDP (change, %) 2.8 4.9 4.5 2.1 -0.5 0.7 GDP (at current prices, € billion)
Europe. In 2008, Finland scored well the Global Competitiveness Report Industrial production (change, %) 3.9 9.1 5.2 3.9 3.1
200
Imports of goods and services (change, %) 9.6 7.8 6.6 0.4 -2.1 2.6
2008 by the World Economic Forum as one of the fastest growing countries 180
186
Exports of goods and services (change, %) 6.1 11.8 8.2 3.9 -3.3 1.0
in the EU and with the highest government surplus. In 2009 Economist 160
Private consumption (change, %) 3.8 4.1 3.2 3.1 0.7 1.9
Intelligence Unit ranked Finland’s business environment as the best in General government consumption (change, %) 1.9 0.6 1.3 1.3 1.9 1.6 140
152
the world for the period 2009-2013. Current account (% of GDP) 4.9 4.6 4.1 3.8 2.5 0.7 120
Consumer prices, average (change, %), 100
EU harmonized 0.9 1.6 2.5 4.1 1.8 1.7 2004 2005 2006* 2007* 2008*
Facts about Finland Unemployment rate (%) 8.4 7.7 6.9 6.3 7.2 7.7 Sources: Statistics Finland 2009
* Forecast
Sources: Statistics Finland, Ministry of Finance, Bank of Finland 12/2008
Total area 338,000 square kilometers
* Forecast
Land area 69 % of which is covered by forest, 10 % by water and
6 % by agricultural land
GDP per capita Finland
Neighboring countries Estonia, Sweden, Norway, Russia
(1,269 km, Finland’s land border with Russia is the eastern Finland has become the base for a number of international companies taking GDP per capita (at current prices, €)
border of the European Union)
advantage of a highly educated workforce steeped in the traditional Finnish 37,000
Natural resources Forests, copper, iron ore
35,041
Distances 1,160 km from north to south, 540 km from west to east
work ethic. Although the high-tech sector is the best known globally, Fin- 35,000
33,000
Time +2 hours GMT land has also managed to thrive with traditional industries such as forestry
31,000
Population 5.305 million; 67 % live in towns or urban areas, or metals. It is also investing heavily in new industries such as bio-fuels. 29,000
33 % in rural areas 27,000
29,107
Population density 17 inhabitants per square kilometer 25,000

Life expectancy at birth females 82.8 years, males 75.8 years 2004 2005 2006* 2007* 2008*
Gross domestic product at basic prices
Main towns Helsinki (564,520) Espoo (235,020), Tampere (206,370), Sources: Statistics Finland 2009
Vantaa (189,710), Turku (175,355) and Oulu (130,180) Industry Proportion of the GDP, % * Forecast
Languages Finnish 91.51%, Swedish 5.49%, Lappish 0.03%, Russian 0.80%, Primary production 3,0
other 2.17%. Finnish and Swedish are the official languages. Secondary production 31,6
Religion Lutheran 82.5%, Orthodox 1.1%, other 1.1% Services 65,4 GDP per capita in
(15.1% have no religious affiliation)
Source: Statistics Finland Finland, Sweden,
Denmark, Estonia
As the home of Nokia, the global leader in mobile communications, Finland
has established a reputation for innovative high-tech industries. The coun- GDP per capita (at current prices, €)
try’s infrastructure is well developed and its workforce highly educated and 45,000
40,200
skilled. According to the World Economic Forum (WEF), Finland has the best 40,000
35,041
34,500
35,000
availability of scientists and engineers in the world, and the best educa- 30,000
tional system in the world. Finland also welcomes foreign workers because 25,000
20,000
there are several sectors where the country is facing labour shortages due to 15,000
9,700
its ageing population. 10,000
5,000
0
2002 2003 2004 2005 2006 2007* 2008*
Denmark
Sweden
Finland
Estonia
Sources: Statistics Finland 2009, Eurostat

* Forecast

Despite high birth rates, POPULATION AND WORKFORCE GEOGRAPHY, NATURAL RESOURCES AND CLIMATE Finland is strategically to
women are actively in work The population of Finland is 5.3 million. The population is in a growing Finland is a country of forests, lakes and islands. Areas of exceptional natu- serve a market area of
life. Thanks to public child- trend. In 2008, 59,530 babies were born – 800 more than the year before. ral beauty include Lapland in the north, the Lakeland region in eastern 80 million consumers in
care services and a legal The total workforce in Finland is 2.7 million of which 49% are men and 51% Finland and the archipelago along the southern coast. It is Europe’s larg- Northern Europe.
right to work shorter days, women. est archipelago, and also includes the semi-autonomous province of Åland.
women can have a career Inland, there are 187,888 lakes dotted with islands. Space and a rare tran-
without compromising English is the common business language among Finland’s highly inter- quility are some of Finland’s greatest assets.
family life. national business community and also the most popular foreign language
in the country. About 90% of Finns under thirty speak English. There is Finns like to call their forests Green Gold because they are its most impor-
instruction available in the major European languages in the main cities for tant natural resource. Other resources include peat, freshwater resources
expatriate families who wish to continue their children’s education in their and minerals, for example iron ore, copper, lead, zinc, chromite, nickel, Finland has consistently
Age distribution own language. cobalt, gold, silver, phosphate, limestone, talc, quartz and uranium. been ranked as one of
of the population the least corrupt countries
Finland’s climate has four distinct seasons. The summers are usually fairly in the world.
THE BUSINESS HUB OF NORTHERN EUROPE warm with temperatures rising above +20 degrees Celsius. In Lapland, the
65 -years Finland shares borders with Russia, Sweden and Norway, as well as Esto- sun does not set during the summer months. Finnish winters can be cold
17%
0- 24 years nia across the Gulf of Finland. The long border with Russia is also the and temperatures below -20 degrees are not uncommon. The mean tempera-
29% eastern border of the European Union. With long-established connections ture in Helsinki in July is +17 degrees and -5.7 degrees in February.
50–64 and experience of doing business with Russia, the Nordic and the Baltic
years countries. More information in English at Statistics Finland: www.stat.fi • Virtual Finland: Finland has been ranked
22 %
www.virtual.finland.fi • Research Institute of the Finnish Economy: www.etla.fi at the top of the WEF’s
25-49 years Environmental Sustain-
33% A STABLE POLITICAL SYSTEM BOOSTS THE ECONOMY ability Index since 2000.
Finland is a republic and became independent in 1917. The current head
of state is President Mrs Tarja Halonen, who was elected in 2000 and re-
Sources: Statistics Finland 2009
elected in 2006. The single chamber parliament has 200 members and is
elected for a four-year term by direct popular vote under a system of propor-
Age distribution
tional representation. Currently the largest parties are the Centre Party,
of the workforce
the National Coalition Party, the Social Democratic Party, the Left Alliance
and the Green League. Finland’s multi-party democracy is characterized by
65-years
0,4% 16 - 24 years consensus and pragmatic policies implemented by coalition governments.
10%
Finland is known for its active role in the international community and has
played a major role as a bridge between the East and the West. Former presi-
50 - 64 years
dent Mr Martti Ahtisaari was awarded the Nobel Peace Prize in 2008 and
31%
Finnish soldiers participate in peacekeeping missions around the world.
25- 49 years
58%

Business Outlook
According to the latest STATISTICS FOR 2008/2009 exchange rates. Finland’s economy was prepared well for the global reces- José Manuel Barroso,
report from Fitch Ratings, According to preliminary data from Statistics Finland for 2008, the volume sion and its economic prospects remain significantly better than for much President of the European
Finland’s AAA status “is of Finland’s GDP grew by 0.9% to EUR 186 billion, which is EUR 35,041 per of the EU. Commission, recently
underpinned by sound capita. This makes Finland’s average GDP growth rate for the past ten years stated that “Finland has
public finances, a solid 3.16%. Growth rates in 2007 and 2006 were 4.2% and 4.9% respectively. created wealth not through
external position, high GOVERNMENT POLICY IN A KNOWLEDGE-BASED ECONOMY easy money, not with
income per capita, demon- In 2008, the volume of consumption grew by 1.9% despite the sharp downturn The government of Finland views entrepreneurial activity as the bedrock of casino money, but with
strable political and social in the last quarter. Investments grew by 1%. Households’ real income grew Finland’s competitiveness and is committed to providing companies with work, discipline and ideas.”
stability and an impeccable by an average of 2.7%. The average salary in 2008 was EUR 2860. Finland’s the world’s best operating environment. Finland’s economic policy aims to
debt service record”. government enjoyed a surplus amounting to 5.3% of GDP. improve productivity through the utilisation of new ideas, the creation and
rapid adoption of new technology, a highly skilled workforce and the intel-
According to Bank of Finland statistics for 2008, Finland’s exports totalled ligent organisation of work. A knowledge-based competitive edge is seen
EUR 81 billion, (goods EUR 66 billion and services EUR 15 billion). Exports as the result of a more diversified array of skills – in science, technology,
made up over 40% of Finland’s GDP. The major exports were electronics and business, service solutions, design, branding or ways of organising work
electro-technical products (24% of total or over EUR 15billion), machines, and production.
machinery and vehicles (22%), Pulp, paper and wood products (17%), basic
metals and metal products (13%), chemicals and chemical products (7%). One of the key long-term factors contributing to the success of the Finnish
economy has been the constructive partnership between the government,
In 2008 the volume of exports fell by 1.1% and the volume of imports fell by employers and trade unions. The Finnish system has produced a level of
1.3%. In February 2009, Finland’s inflation rate was 1.7% and the unemploy- political stability and economic continuity undreamt of in most countries.
ment rate was 7.6%.
FOREIGN DIRECT INVESTMENT (FDI) IN FINLAND

FORECASTS AND THE IMPACT OF THE RECESSION As one of the most competitive and open economies in the world, Finland
The global recession caused by the fi nancial crisis has halted the forward has a great deal to offer foreign investors and also much to gain from foreign
march of the Finnish economy, characterised by growth rates above 4%, low direct investment (FDI). Statistics show that most foreign-owned compa-
inflation and interest rates, and a current account surplus. nies actually grow faster and perform better than the local companies after
establishing themselves in the Finnish market.
The economic statistics for 2008 and 2009 show clear evidence of the glo-
bal recession, with Finland’s export sector being particularly hard hit. The On average, about 200 foreign companies locate in Finland every year. Their
Bank of Finland forecast for 2009 is that Finland’s GDP will fall by 5% in main reasons for coming Finland are access to the Finnish and surrounding
2009 and unemployment will increase towards 9%. Inflation is expected to markets of 80 million people, as well as the country’s world-class expertise
be around 1% in 2009. and technology. Other important reasons include safety, the clean envi-
ronment, and the lack of bureaucracy and corruption. Finland’s modern
Despite the gloomy short-term prospects, the underlying resilience of the infrastructure, logistics and communications networks are also attractive
Finnish economy suggests that it will be among the fi rst to recover in the to many companies.
EU. As a telling measure of its macroeconomic stability, Finland enjoys the
highest possible rating with the global credit rating agencies Fitch Ratings, Many companies that invest in Finland use it as a base to also manage their
Moody’s and Standard & Poor’s. business in the Nordic countries, the Baltic region and Russia. Finland is
the ideal business gateway to Russia and most of the transit trade from the
Finland’s banking sector has largely escaped the turmoil caused by the glo- EU to Russia already passes through Finland. Finland’s historical, trade and
bal financial crisis. Being the only eurozone country in Northern Europe, cultural ties to the neighbouring countries provide valuable insights for
Finland has also benefited from reduced uncertainty over interest rates and foreign companies. Finland offers the fastest and least congested air route

Research, Development & Innovation
from Northern Europe to Asia. Foreign direct investment (FDI) in Finland is Expertise and innovations play an increasingly important role in Finland’s 32,862 research personnel
often related to knowledge-driven investments. future strategy,Innovation refers to competence-based competitive work in Helsinki and
advantage that can emerge from scientific research, technology, business 79,507 in Finland in total.
Finland has several high-tech clusters with many small technology com- models, service solutions, design, brands or methods of organising work They are divided between
panies that have cutting-edge expertise but lack capital and have limited and production. Capitalised as innovations, competence based competitive companies, public sector,
access to the global markets. These include companies specializing in wire- advantages promote the advancement of businesses, society and wellbeing. non-profit organizations
less and mobile solutions, health care and life sciences, and new materials This is why innovation is an integral part of the R&D process. and the university sector.
and processes. Connecting these companies with the right foreign investors (Statistics Finland 2007)
results in a win-win situation for everyone. Finland ranks in the top three globally in R&D spending per capita (WEF
2006). Finland is at the top of the list when comparing the influence R&D
Finnish companies also have extensive know-how in the Cleantech sector, has on the country’s competitiveness. A lot of assets are put into R&D in VTT Technical Research Centre of
including biomass-powered energy technologies, combined heat and power Finland; 4.5 per cent of total government spending in Finland is spent on Finland is a non-profit-making
research organization established
production, and power plant automation. Finland is one of the indust- Research, Development and Innovation. Businesses in the Helsinki region
in 1942. VTT is the largest multi-
rialised world’s leading users of bio-energy and a developer of combustion invest over 40 per cent of all investment in research and product devel- technological applied organization in
technologies and effective fuel chains. Wind energy is another national opment by Finnish companies. Businesses and the institutions of higher Northern Europe. It provides high-end
technology solutions and innovation
and global growth sector with good potential for a high return on invest- education work closely together in R&D: 70 per cent of companies with R&D
services. Striving to improve its
ment. Finland is committed to introducing a new feed-in tariff system and activities cooperate with universities and universities of applied sciences. clients’ competitiveness and compe-
funding which are intended to attract major investments into the wind tence, VTT combines different tech-
energy sector. nologies, creates new innovations and
a substantial range of world-class
R&D INTENSITY AND COMPETITIVENESS
technologies and applied research
One of the sectors which is expected grow markedly in the future is Business Finland has a long history of investing in research and education. These services.
Services. In 1995 Business Services made up 5% of the GDP but in 2006 the investments give Finland a competitive advantage. The relationship between
figure was already 7.7%. This trend is expected to continue as outsourcing is R&D intensity and competitiveness factors is very strong: Finland is the VTT uses its extensive international
scientific and technology network to
gaining ground and economic activities are diversified. In the public sector most competitive country in Europe and its R&D intensity is second highest.
produce informationrmation, upgrade
many municipalities are merging and also looking for new outsourcing technology knowledge and create
possibilities. Competitiveness and R&D Intensity in European countries business intelligence and value added
to its stakeholders.
OECD statistics show that Finland’s unit labour costs have fallen during the VTT’s nearly 6,000 customers are both
period 1990-2009, improving the country’s competitiveness in relation to Luxembourg Finland
domestic and foreign companies as
the OECD average. Wages are lower in Finland compared to the other Nordic well as public organizations in Finland
EUROPEAN COMPETITIVENESS INDEX 2006-2007

and abroad. In 2008, VTT employed
countries.
Norway approximately 2,700 people.
Switzerland
Denmark Sweden
Netherlands
UK France Over the past 20 years VTT has made
Ireland Belgium Germany about 1,000 domestic and over 1,800
FDI IN 2008
Italy foreign patent applications. Over the
In 2008, 185 new foreign companies established themselves in the Finnish Spain past 20 years it has also published
market. About 60% of the FDI in Finland was made through business acqui- Greece
nearly 50,000 publications. At the
Portugal
sitions. The majority of the companies located in the Helsinki metropolitan beginning of 2008 VTT had 950
Hungary patents and patent applications
area. About half of the FDI was in the Trade & Services sector. The next most Slovak Republic
Czech Republic
Poland in its portfolio.
popular sectors were ICT, environment, healthcare, forestry and the mining
industry. The biggest number of companies came from Sweden, followed by More information in English: www.vtt.fi
R 2 = 0,52
the UK, Germany and USA. Chinese companies featured in the FDI statistics
R&D INTENSITY (% of GDP) Over the past 20 years VTT has made
for the fi rst time. Sources: http://fiordiliji.sourceoecd.org/vl=1845686/cl=12/nw=1/rpsv/sti2007 approx. 1,000 domestic and over
http://www.hugginsassociates.com/
1,800 foreign patent applications.

Principal Industrial and Business Sectors
Tekes (the Finnish Funding Agency for PATENTS In the 1950s the Finnish economy was still largely based on primary Finland has developed
Technology and Innovation) is the
Finland has a high number of patent applications in relation to the country’s production and an agrarian workforce. Today Finland is leading or near world-class expertise in
main government financing and expert
organization for research and techno- population 5.3 million. It has more resident patent fi lings per million popu- the top of most international comparisons in terms of growth and develop- sectors like cleantech,
logical development in Finland, lation than some of the other Nordic countries such as Sweden, Denmark, ment in the economic, technological and social spheres. According to forestry, metal and
founded in 1983. Tekes finances and Estonia. The Research Institute of the Finnish Economy, the system has combined machinery manufacturing,
industrial R&D projects as well as
economic efficiency and growth with a peaceful labour market, an egali- ICT industry and services,
projects in universities, polytechnics
and research institutes. It focuses tarian distribution of income and social cohesion, backed up by a generous and health and wellbeing.
especially on challenging, innovative Patent applications and granted in Finland, Sweden, social security system. International investors and
and risk-intensive projects. Denmark and Estonia companies can benefit
Finland Sweden Denmark Estonia The largest sector of the Finnish economy is Services at 65.7%, followed by from the clusters and
Tekes employs 370 people. Along its
Patent applications (2007) 2,015 2,925 1,857 63 Manufacturing and Refining at 31.4%. Primary production is at 2.9%. Fin-
Helsinki-based headquarters Tekes centres of expertise in
has 14 so-called regional T&E Centres Patents granted (2006) 1,059 1,490 162 N/A
land’s main industrial products are paper and board, electronics and metal these business sectors
throughout Finland and six offices Source: WIPO / Patent applications by patent office (1883-2007), Patent grants by patent office (1883-2007)
products. The engineering and high technology industries, led by Nokia, that aim to maximize the
abroad in Beijing, Brussels, Tokyo,
Shanghai, Silicon Valley and have long been the leading branches of manufacturing. benefits of research, net-
Washington D.C. working and international
Patent filings in Finland, Sweden, Denmark and Estonia Foreign trade plays an important part in Finland’s economy, which is firmly cooperation.
Tekes funds its target projects through
Resident* patent filings per million population (2006) integrated into the global economy. In 2008, about 53% of Finland’s trade
low-interest loans or grants, depend-
Finland 345.57 was with the EU countries. Finland’s major trading partners are Germany,
ing on the stage of the innovation and
Sweden 270.40
the nature of the proposed project. Russia, Sweden, United Kingdom, USA, Netherlands and China. Finland is
Tekes also awards financing to foreign Denmark 276.87
the only country in Northern Europe to use the Euro as its currency.
owned companies registered in Estonia 26.84
Finland. Foreign companies with R&D Source: WIPO / World Patent Report a statistical review, 2008.
activity in Finland are not required to * Resident: The “resident” filing refers to an application filed with the Office of or acting for the State in which the first
named applicant in the application concerned has residence.
have a Finnish partner to be eligible for TRADITIONAL INDUSTRY
funding. The financed project should,
Finland’s largest industrial sector is technology-based and growth in recent
however, contribute to the Finnish
economy. years has been rapid. Many companies operating in this sector are Finland’s
Graduates from fields of science in total and leading exporters and internationally recognised as innovation pioneers.
In 2008, Tekes was actively funding from some broad subject areas
nearly 2,000 projects with 516 million €
Finnish companies engaged in electronics and electro-technical activities
altogether and had a total of 1,954
completed projects. Fields of science total 6,110 generate innovative solutions which are employed in production processes
all over the world, from underground trains to wind power plants, from
More information in English: space technology to sports and medicine.
www.tekes.fi
Social sciences 2,526
Humanities The metals sector includes metalsproduction, the further refining of steel
1,109
and copper products, zinc and nickel for use in the machine, vehicle, con-
Engineering and technology 1,061
struction, electronics and electro-technical industries, and mechanical
Medical and health sciences 608 engineering. Finnish metal processing is well known for its efficient uti-
lisation of energy and raw materials, and holds world-leading positions in
Natural sciences 598
a number of processes. More than half the world’s copper and a third of all
nickel is manufactured using the flame melting technology developed by
Source: Statistics Finland 2007
Finns. State-of-the-art cruise ships are built in Finland’s shipyards.
The chemical industry is Finland’s third-largest industrial sector. The range

of products manufactured is huge, with most of them being used in other

industries, especially forestry and agriculture. Products include plastics, To spark the imagination of international investors and companies, High-
paints, oil products, pharmaceuticals, environmental products and petro- Tech Finland is profi ling a broad cross-section of work by Finnish companies
chemicals. and researchers in areas ranging from mobile communications and sus-
tainable energy to environmental technologies, new types of health care,
More information in English at the Federation of Finnish Technology Industries: advanced industrial processes and materials, and more.
www.teknologiateollisuus.fi
More information in English at HighTech Finland: www.hightechfinland.fi
PAPER AND PULP

Finland has a uniquely strong and diverse businesses based on forest ICT
resources. This concentration of expertise is referred to as the forest cluster. As one of the most advanced information societies in the world, Finland is
Wood products, pulp, paper and paperboard, and other processed products known as a leader in ICT innovation and high quality ICT products. The sec-
form the core of the forest cluster, which also includes forestry entrepre- tor has enjoyed strong growth during this decade.
neurs, logistics companies, machinery and equipment manufacturers,
energy producers, chemicals manufacturers, related research institutions, Finland has much to offer international investors and companies in the ICT
universities and consultancies, packaging industry, and the wood-based sector, including fi rst-rate availability of talented and qualified ICT engi-
construction industry. neers, and easy access to public R&D funding and development networks.
Finland has strong domestic demand for ICT products and services, and
The forest cluster accounts for some 10% of Finland’s GDP, about 30% of there are also profitable opportunities in Russia and the Baltic countries.
aggregate industrial output and about a third of net export income. The Predictably, Finland has a very strong mobile cluster driven by Nokia. Other
cluster directly or indirectly employs around 200,000 people in Finland. ICT clusters in Finland include Digibusiness, Ubiquitous Computing and the
The aggregate R&D expenditure of the forest cluster is estimated to total Nanotechnology Cluster.
In the musical instruments industry, €400-500 million annually. The Finnish forest cluster is also a strong player
exotic tonewoods such as ebony, in the global trade arena. Finland’s share of the exports of forest-cluster Finland is an excellent test bed for new technologies. For example, the city
widely used in everything from acous- products in the industrialised countries is almost 8%. of Oulu in central Finland has become a global hub for the research, develop-
tic guitars to clarinets, are increasingly ment and piloting of wireless technologies. It has more than 800 ICT compa-
difficult to source. In addition to the traditional products like newspapers, books, packag- nies with specialized focus areas in Near Field Communication (NFC)/RFID,
ing and furniture, wood and its constituents are also used to manufac- sensors, Assisted GPS (AGPS) location services, contextual internet, mobile
Finnish guitar maker Flaxwood uses ture sweeteners for chewing gum and a cholesterol-lowering additive for internet, digital mobile media and realXtend virtual world technologies.
patented technology to produce margarine spreads, for example. Other possibilities include the addition
musical instruments or instrument of `smart´ components or nanotechnology to wood-fibre-based products, Applications are also being developed for ubiquitous computing, health care
components by mould-injecting creating entirely new kinds of product opportunities for the forest industry. and the elderly, bio- and nanotechnology, security and environmental pur-
organic fiber-composite materials poses.
using spruce or other sustainably
harvested woods. The results rival HI-TECH INDUSTRY More information in English at TIEKE Finnish Information Society Development Centre:
instruments produced using the very From eco-friendly batteries to remote diagnostic services for the health sec- www.tieke.fi
finest exotic hardwoods. Flaxwood’s tor, and the production of metals with the help of microbes, there is a wealth
own line of guitars has proven the of exciting work being carried out by Finnish companies and researchers at
viability of the technology, having the cutting edge of technological development in different sectors of the CLEANTECH
garnered recognition at the highest economy. Finnish cleantech companies offer advanced environmental technologies
level among musicians, and in the that can succeed in global markets and provide a significant return on
music industry press. Flaxwood’s Investment decisions are increasingly shaped by issues of sustainability investment.
guitars were recently awarded the and responsibility. Finnish companies are delivering technologies for
prestigious “Premier Guitar Gear improved environmental and economic performance by making better use The cleantech business is estimated to grow at a pace of 5–15% per year world-
Award”. of raw material inputs, using less energy, consuming less water and other wide and Finland is considered as one of the most progressive countries in
utilities, reducing emissions, and creating a safer operational and working the world in terms of its cleantech expertise and associated technologies.
environment. This know-how provides international companies with excellent opportuni-

ties to benefit from innovative environmental technology companies, solu- Finland offers a range of possible biotechnology cooperation partners with
tions, products and services. These include, for example, technologies that different profi les. These include innovative start-ups with skilful, devoted
combine waste management and energy production, distributed energy employees and potential patents for further development. There are also
production, and products and industry-specific technologies that can be established drug discovery companies and biotechnology companies inter-
seamlessly integrated into large-scale environmental projects. ested in forming strategic partnerships to develop and launch new thera-
peutic methods and products. Finally, there are interesting merger and
The Finnish Cleantech Cluster is comprised of about 200 companies and acquisition candidates specializing in a particular diagnostic/therapeutic
is made up of the four most notable centres of expertise within the sector, field.
located in Kuopio, Lahti, Oulu, and Helsinki and the surrounding areas.
The four centres cover around 60% of Finland’s cleantech business and 80% of There is a healthy level of funding and resources available to overseas pharma/
cleantech research. Finland’s sparsely populated areas and relatively small biotech investors and companies interested in establishing a presence in
waste quantities also offer ideal conditions for testing new technologies. Finland or developing ties to Finnish R&D networks. The major funding
organisations are Tekes – the National Technology Agency, the Academy of
Each centre specialises in different aspects of cleantech expertise and strives Finland, Sitra, Finnvera, Finpro and the network of regional Technology Cen-
to promote the growth and internationalisation of the associated busi- tres and Centres for Employment and Economic Development. This includes
nesses. They collaborate with each other and network with local businesses VTT Technical Research Centre of Finland, the largest technological R&D
and academia. For international companies the cluster also represents a organisation in the Nordic region.
useful gateway for fi nding partners in Finland.
Many Finnish bio-products – such as drugs, enzymes and diagnostic tests –
Finland was ranked as one of the world’s leading countries in environmental have already been successful in the global marketplace. For example, Orion
sustainability in the 2006 Environmental Performance Index (EPI), which Pharma, the largest pharmaceutical company in Finland, is behind Prece-
provides benchmarks for national pollution control and natural resource dex, a popular pain-relieving tranquilliser used in intensive care. Leiras
management results. (today owned by Schering) has also developed the polymer-based Delvivo
drug delivery technology for the hormonal contraceptive Mirena.
More information in English at: www.cleantechfinland.fi
More information in English at Tekes: (www.tekes.fi ) • The Academy of Finland: www.aka.fi
• Sitra: www.sitra.fi • Finnvera: www.finnvera.fi • Finpro: www.finpro.fi • VTT: www.vtt.fi
BIOTECHNOLOGY
Finland is ranked among the top 10 countries worldwide for biomedical
science and clinical medicine, and biotechnology is one of the most promis- MINING INDUSTRY
ing high-tech industries in the country. Today Finland’s pharmaceutical FINLAND – A MINING FRIENDLY COUNTRY
market is worth €1.6 billion and is closely integrated into the global indus- Finland has excellent geological databases, good infrastructure and readily
try through ownership arrangements. Finland’s domestic market offers an available exploration services. These factors make operations in Finland
excellent platform from which to launch and develop innovative healthcare attractive and cost-effective.
products.
In October 2008, Resource Stocks magazine ranked ’Finland as the safest
Finland is also a global leader in the development of new niche applications place to spend exploration dollars. The mining and minerals industry is very
based on biotech innovations, such as biomedicals, gene technology and important to the country, and plays an increasing role in our economy, both
molecular biology, human genetics, implants, biomaterials, drug discovery, domestically and outside Finland.’
diagnostics and drug delivery devices. Finnish pharmaceutical and biotech
companies are continuously looking to develop international partnerships. Finland offers the exploration industry a favourable investment and operat-
This includes overseas companies or corporate venturing units for strategic ing environment, with significant potential for new discoveries as many
investment or research cooperation. For example, new biopharmaceuti- commodities are still highly under-explored. Present activity is concentrated
cal companies such as Biotie Therapies Corp, Hormos Medical Corp. and on gold, platinum group metals, base metals, diamonds and industrial
Juvantia Pharma Oy Ltd are aiming to launch spearhead products globally minerals. Finland has an excellent geological database, good infrastructure
through partnerships with international pharmaceutical companies. and readily-available exploration services.

MINING AND MINERAL PRODUCTION Finland’s Travel and Tourism sector offers a dynamic business climate, a
Finland has a long history of mining activity, and Finnish metallurgi- clean and unique environment with four distinct seasons, and a society that
cal technology and manufacturers of mining equipment are well known is both safe and internationalized. The number of foreign visitors in Finland
throughout the international mining community. The exploitation of cop- has increased significantly during recent years. According to forecasts by
per, nickel, cobalt, zinc and lead ores as well as chromium, vanadium and the World Travel Tourism Council (WTTC), the total demand for travel in
iron deposits has provided the raw material base for the country’s metal Finland will grow by 33.7% between 2006 and 2016.
industry. The major industrial minerals mined in Finland are carbonates,
apatite and talc. More information in English at Visit Finland: www.visitfinland.com
• Mining history dates back to 1540 when iron ore mining commenced
• Some 270 metal mines have been in operation
• Total output has been 250 million tons of ore (66% sulfide and
34% oxide ores)
• Main commodities have been: Cu, Ni, Zn, Co, Cr, Fe, V
• Industrial mineral operations include limestone, apatite, talc, quartz,
feldspar and wollastonite
• Well established mineral processing and refining plants exist for
Cu, Ni, Zn, Co, Cr & Fe ores as well as for phosphorus fertilizers,
titanium pigments & coating carbonates
TRADE AND SERVICES

There are many opportunities for international investors and companies
in Finland’s Trade and Services sectors, which have grown strongly in the
last few years. Finland is also a cost-effective business centre from which
to serve both the domestic and surrounding markets, including the vast
potential of Russia and the Baltic countries.
The retail trade and services have grown strongly as Finnish consumers
enjoy spending time in the city centres and shopping centres, which are
being developed across the whole country.
The Finnish property market continues to deliver a stable return on invest-

ment. There is also a growing demand for service producers due to increas-
ing outsourcing in both the public and private sectors. Facility services like
catering and security services are growing fast, creating opportunities for
international companies. The large neighbouring market area, especially
Russia, offers additional business opportunities.
Finland’s central location in Northern Europe, combined with its modern

infrastructure and logistical connections, present excellent opportunities
for international logistics companies. Finland also offers a working border
crossing with Russia and the fastest and least congested transport channel
from Europe to Russia, China, Korea and Japan.

Business Environment
WEF’s The Enabling Finland’s business environment is characterized by a well-functioning highest figure among the OECD countries. The number of doctorates has The Finnish government’s
Trade Index 2008 ranked partnership between the public and private sectors, and has proved itself also nearly doubled in the last ten years. innovation policy is an
Finland’s business with a record of sustained growth during the past decade and more. important part of its
environment as the best The Ministry of Employment and the Economy oversees Finland’s technol- economic policy. It aims
in the world. The public institutions that underpin Finland’s economic development are ogy policy. The key expert and funding organisations in the Finnish innova- to foster the preconditions
highly ranked in international comparisons. The country’s institutions and tion environment are Tekes, the Academy of Finland and Sitra (the Finnish for innovation, provide
regulatory administration perform effectively and transparently, and sup- Innovation Fund). They run technology and research programmes that net- incentives for it, and ensure
port the private sector to drive the economy forward. work industry and the academia, as well as providing funding for the best the viability of the innova-
scientist and R&D companies in Finland. At the regional level, the technol- tion environment. The
Finland’s corruption level is among the lowest in the world and there is a ogy policy is implemented by the T&E Centres (Employment and Economic active dialogue between
strong respect for the law in both the business world and the society at large. Development Centres). companies, universities,
Finland’s security environment is often at the top of the global rankings. research institutes and
Universities and polytechnics form the higher education sector, which is R&D financiers is one of
The cost of doing business in Finland is competitive and the corporate tax exceptionally dense and regionally comprehensive by international compar- the cornerstones of Finnish
rate is one of the lowest in Europe. Foreign-owned companies have full ison. Finland also has 21 government research institutes and several science innovativeness.
access to the investment incentives and dynamic innovation environment parks, business incubators and technology centres. The knowledge transfer
available in Finland. The country’s workforce is highly educated and compu- between business and universities is one of the key features of Finland’s
ter literate, so skills and know-how are readily available. Foreign investors economy and innovation policy.
can also draw on the Finns’ expertise in doing business with the neighbour-
ing countries in terms of logistics, cultural knowledge, language skills, and
experience in venture capital operations. TRANSPARENCY AND ANTI-CORRUPTION
Corruption is a global problem and it exists in all countries and regions. In
Science, technology and innovation are nurtured at the highest level of Nordic countries corruption is less of a problem than in many other coun-
the Finnish government and through the effective framework that brings tries and one significant reason is the solid tradition of transparency in the
together companies, universities, research institutes and public funding administration.
bodies. Key issues concerning technology are regularly discussed at the
Research and Innovation Council, chaired by the Prime Minister. A report by Transparency International shows that in 2007, Finland ranked
fi rst in anti-corruption. The index draws on a number of expert opinion
surveys that poll perceptions of public sector corruption in 180 countries.
INNOVATION ENVIRONMENT While many countries are perceived to be facing serious domestic corrup-
Finland is internationally known for its high level of innovation and tech- tion, Finland’s high levels of civil service integrity continue to facilitate
Finland is among the top nological expertise. Finnish innovations include the text message (SMS), business and public sector efficiency.
countries globally in terms lactose free dairy products, Xylitol tooth friendly sweetener and the Linux
of R&D spending per computer operating system, to name but a few. The fact that the police force is seen as the most trusted and reliable insti-
capita. Finnish companies tution in the country tells a lot about the low level of corruption in Finn-
and consumers are early Finland is one of the most research-intensive countries in the world. ish society. The lack of corruption makes doing business in Finland more
adopters of emerging National spending on research and development totals EUR 6 billion, or 3.4% straightforward than in most places and is one of the attractive features of
technologies, which makes of the GDP. Companies account for 71% cent of R&D expenditure. Finland the country as an investment location.
Finland an ideal test bed leads the field in terms of utility patents in the EU and also has the biggest
for new solutions and turnover (15.6%) from new products in the Nordic countries. According to the study Combating Corruption – the Finnish experience by the
technologies. Ministry for Foreign Affairs, there is a combination of reasons that help to
During the past decade, the number of R&D personnel in Finland has grown prevent corruption in Finland. The first is a popular value base that promotes
from 40,000 to nearly 80,000, which is 2% of the overall labour force and the moderation, personal restraint and the common good. Secondly, Finland has

developed well-functioning legislative, judicial and administrative struc- ENERGY Finland’s energy sector
tures that closely monitor and guard against the abuse of power. Thanks to Foreign investors in Finland can depend on a highly reliable and cost-effec- produces a reliable and
efficient law enforcement, professional crime investigation methods, and tive power supply to run their business with maximum efficiency. Finland’s affordable power supply
modern budgetary, accounting and auditing practices, the likelihood of power generation, transmission and distribution systems are highly effi- and is a world leader in
finding and apprehending the perpetrators of corruption is high. cient and the price of electricity is among the lowest in Europe. EU Eurostat the use of bio-energy.
figures show that in terms of purchasing power, the price of domestic elec-
The obligation to provide public argumentation for decisions and public tricity in Finland is the cheapest in the EU countries and about one third
access to official documents also increases transparency and public trust lower than the average price in the EU.
in governance. Finland’s independent media is quick to expose even minor
abuses of official functions. Another important factor contributing to the Finland’s energy policies are focused on energy security, economic develop-
culture of accountability and preventing the abuse of power is the promi- ment and environmental sustainability. Power generation in Finland
nence of women in parliament and high public offices in Finland. Finally, is decentralised across more than 400 power stations, which use several
the low-income disparities and adequate wages in Finland serve to reduce different production technologies and raw materials. This diversified
the propensity to accept bribes. Good wages, in turn, require a strong public approach ensures a very stable energy supply and has kept the price of elec-
economy and a strong corporate sector. tricity, natural gas, wood and peat at a competitive level. Finland ranked fourth in the
Environmental Performance
Nuclear power and hydropower are currently the two largest sources of Index in 2008. The index
INFRASTRUCTURE energy. The construction of a fi fth nuclear power plant, will ensure that measures national perfor-
Advanced transport infrastructure and logistics are key strengths of Fin- future energy demand is met and keep price increases at a moderate level. mance in environmental
land’s domestic economy and its lively trade with the Nordic and Baltic Finland has taken the lead internationally in removing unnecessary regula- policy development and
Finland’s highly developed countries, the EU, Russia and Asia. Business is served by excellent roads tions in the energy sector, creating the preconditions for the internationali- implementation.
transport and communica- and railways, and a vast network of waterways, canals and sea lanes. As the sation of its energy companies.
tions infrastructure enables eastern border of the EU, Finland is the ideal business gateway to Russia.
strategic access to the The countries share the same rail gauge, so rail cars do not require modifica-
expanding markets of tion or reloading when they cross the border. FINLAND – LEADER IN BIO ENERGY Environmental
Northern Europe, Russia Finland is one of the industrialised world’s leading users of bio-energy and a
Performance Index
and Asia. Finland has 24 airports serving airfreight and passenger traffic, including the developer of combustion technologies and effective fuel chains. The Finnish
Rank Country Score
Helsinki-Vantaa Airport, which is recognised among the world’s best interna- energy cluster has special expertise in biomass-powered energy technolo- 1 Switzerland 95.5
tional airports in IATA and ASQ surveys. Helsinki-Vantaa Airport offers global gies, cogeneration (combined heat and power production) and power plant 2 Sweden 93.1
connections to more than 120 destinations and is an increasingly popular automation. Cogeneration is exceptionally high in Finland, resulting in 3 Norway 93.1
gateway to Asia as the fastest route between Northern Europe and Asia. fewer emissions to the environment. 4 Finland 91.4
5 Costa Rica 90.5
6 Austria 89.4
Finland’s fully automated, state-of-the-art ports are highly specialized and Research and development is constantly carried out into the use of renew-
7 New Zealand 88.9
rank among the safest and fastest in the world. Car ferries and container able energy resources such as barley ethanol, turnip rape and logging waste. 8 Latvia 88.8
ships serve the region with regular daily departures. The newly opened About 30% of all the energy consumed in Finland today is produced from 9 Colombia 88.3
Vuosaari Harbour has been built in a key location for efficient transport con- renewable raw materials and it is possible to purchase exclusively green 10 France 87.8
nections in a total market area of 80 million consumers. electricity generated from environmentally friendly sources. 11 Iceland 87.6
12 Canada 86.6
13 Germany 86.3
The world’s leading providers of logistical services are represented in Fin-
14 United Kingdom 86.3
land. They offer the full range of specialist aircraft, ships and vehicles, and ENVIRONMENTAL PERFORMANCE 15 Slovenia 86.3
the latest technology for automated warehousing and real-time monitoring In line with the EU’s energy policy, the Long Term Climate and Energy 16 Lithuania 86.2
of shipments. Strategy recently adopted by the Finnish Government aims at decreased 17 Slovakia 86.0
Finland has been an early adopter of emerging digital and wireless tech- energy consumption as well as intense growth in the share of renewable 18 Portugal 85.8
19 Estonia 85.2
nologies, and Nokia remains the global leader in the mobile phone market. energy sources.
20 Croatia 84.6
As a result, Finland’s scientific, technological and telecom infrastructure
is highly developed. Internet, broadband and mobile phone penetration is Sources: Yale University, Colombia University,
World Economic Forum, European Commission
among the highest in the world. 2008

Investment Incentives
Foreign investors in Finland are eligible for a wide range of government Tekes, the Finnish Funding Agency for Technology and Innovation, provides EU funding is largely
and EU incentives on an equal footing with Finnish-owned companies. low-interest loans and grants to challenging and innovative projects poten- channelled through the
tially leading to global success stories. Foreign-owned companies with R&D T&E Centres. It is directed
Business aid to companies is coordinated by the Employment and Economic activities in Finland are not required to have a Finnish partner to be eligible to projects developing the
Development Centres. The 15 regional offices of these T&E Centres also pro- for funding. In 2008, Tekes invested EUR 516 million in 1,983 innovative competitiveness, know-
vide consulting, training and advice on registration issues and location projects. how and operating environ-
choices. Foreign investors can benefit from several different types of aid: ment of the SME sector,
More information in English on T & E Centres: www.te-keskus.fi • Ministry of Employment with a special emphasis on
Investment aid can be granted to companies in the regional development and the Economy: www.tem.fi • Enterprise Finland: www.enterprisefinland.fi start-up businesses and
areas, especially small and medium-sized enterprises (SMEs). Large compa- service sector companies.
nies may also qualify if they have a major employment impact in the region.
VENTURE CAPITAL
Aid to business development can be granted to improve or facilitate the Venture capital is available from various private and public sources. The
company’s establishment and operation, know-how, internationalisation, three sources of public venture capital in Finland are:
product development or process enhancement.
Finnvera: www.finnvera.fi
Subsidies for start-up companies are available for establishing and expand- Sitra: www.sitra.fi
ing business operations during the first 24 months. Tekes – Finnish Funding Agency for Technology: www.tekes.fi
Transport aid may be granted for deliveries of goods produced to sparsely

Venture capital investment as a percentage of GDP Total amount of VC
populated areas like Lapland, Northern Ostrobothnia, Kainuu, Northern
investments* in Finland
Karelia, and Savo.
0.044%
Finland Million
0.051%
Energy subsidies can be granted to companies for investments in energy 1,000
0.052% 900
efficiency and conservation. Sweden 800
877
0.248%
700
0.051% 600
Tax relief is available for companies setting up in Development area 1 (North- Denmark 500
0.350% 400
384
ern and Eastern Finland) in the form of a higher depreciation rate on fi xed 300
350
0.021% 313
200
assets. EU
0.091% 100
0
0.026% Early stages 2005 2006 2007 2008
The state-owned financing company Finnvera offers services to businesses OECD
0.098% Expansion
of all sizes and in all sectors, except basic agriculture. Its services range from Source: The Finnish Venture Capital Association
loans and guarantees, to start-ups and micro-enterprises, to export credit Source: OECD 2005
* Includes both venture capital investments and
buyout investments made by the actual members
guarantees to large exporters and their financiers. Finnvera is also Finland’s of the Finnish Venture Capital Association.
official Export Credit Agency (ECA).

More information on private VC sources at the Finnish Venture Capital Association:
More information in English on Finnvera: www.finnvera.fi www.fvca.fi.

Setting up a Business in Finland
Foreign companies are welcome in Finland and the process of establishing More information in English on registered business names, names pending registration Limited companies are
a business is quick and easy. The incorporation process usually takes about and auxiliary business names at Business Information System: www.ytj.fi • National divided into private and
2–3 weeks. Board of Patent and Registration: www.prh.fi public companies Public
companies are listed on
Types of business. In Finland foreign companies most commonly conduct Trade name of a limited company. The trade name of a private limited com- the stock exchange.
business through private or public limited liability companies or a Finnish pany must include the words “osakeyhtiö” (limited company) or the corre-
branch office. Business can also be conducted through general or limited sponding abbreviation “oy” and the trade name of a public limited company
partnerships or cooperatives. A foreign organization or foundation can also shall include the words “julkinen osakeyhtiö” (public limited company) or
establish a branch in Finland for business. the corresponding abbreviation “oyj”. The notification fee of a limited com-
pany is 330 €. The registration of an auxiliary trade name is 60 € per name.
More information in English on public authorities, trade regulations, and employment
issues at Enterprise Finland: www.enterprisefinland.fi Share capital. A private limited company shall have a minimum share capi-
tal of 2,500 euros and a public limited company, 80,000 euros. The share
capital must be paid to the company’s account in full before the company
SETTING UP A LIMITED COMPANY can be entered in the Trade Register maintained by the National Board of
The European Economic Area (EEA) Foreigner as founder of a limited company. A limited company may be estab- Patents and Registration. The mandatory Trade Register’s fee is EUR 330 and
was established on 1 January 1994 lished by one or more natural or legal persons (founders). At least one of the the auditor’s fee to certify the deposit share capital is around EUR 200-300.
following an agreement between founders shall be permanently resident or, if the founder is a legal person, The cost of incorporation by a law firm is around EUR 1250.
member states of the European Free have its domicile in the European Economic Area - unless the National Board
Trade Association (EFTA), the Euro- of Patents and Registration grants an exemption from this rule. The nation- Registration formalities. New businesses submit the basic declaration to
pean Community (EC), and all member ality of the founder is thus irrelevant. A legal person shall have its domicile the Trade Register using the start-up notification form. This form can also
states of the European Union (EU). It in the EuropeanEconomic Areawhen it has been established in accordance be used for registration in the Trade Register, Tax Administration, register
allows these EFTA countries to partici- with the laws of a State belonging the European Economic Area and when its of VAT liable businesses, register of employers, and the tax prepayment
pate in the European single market registered office, central administration or head office is in a State belong- register. For legal purposes, limited liability companies and cooperatives
without joining the EU. ing to the European Economic Area. A person who is legally incompetent or are only established when they have been entered in the Trade Register
declared bankrupt may not act as founder. maintained by the National Board of Patents and Registration. The registra-
tion fee for a private trader is EUR 65, partnership EUR 155, and for a limited
Permission of the National Board of Patents and Registration to act as company EUR 330. A company must register the following documents with
founder. If a permit is required, the application, free in form, is be submit- the Trade Register within three months of signing the memorandum of
ted to the National Board of Patents and Registrations either in Finnish or association: its articles of association and memorandum, minutes of the
in Swedish. An application fee (100 euros) is paid for each decided permit. If board of directors’ meeting (to register the board’s chairman), a directors’
permits are applied for three founders of a limited-liability company, three certificate, and an auditor’s certificate.
fees are charged (total of 300 euros). The fee is charged after the decision to
grant or to deny the permit has been made. Statutory obligations. In a limited liability company an Ordinary General
Meeting must be held in each accounting period, unless otherwise stipu-
Selecting a business name. A name must be chosen for the company before lated in the Articles of Association. All registered companies must appoint
the formation documents have been completed and the company applies for a professional auditor to audit their annual accounts, except for the small-
entry in the Trade Register maintained by the National Board of Patent and est companies, which are exempt from this requirement. Companies must
Registration. The name must identify the business and be distinct from the submit their annual accounts to the Trade Register. Public companies must
business names already in the register. prepare and publish interim reports at least four times a year. There are no
costs for complying with the reporting requirements.

Employment and the labour market
THE STAGES OF ESTABLISHMENT ESTABLISHING A LIMITED COMPANY TRADE UNIONS IN FINLAND

OF A LIMITED COMPANY ARE Setting up a Branch of a Foreign Organization. A branch refers to a part of An important function of trade unions in Finland is to run unemployment
THE FOLLOWING: a foreign organization or foundation that conducts continuous business or funds and to provide earnings-related unemployment benefits. These are
professional activities in Finland from a permanent place of business in typically much higher than the basic unemployment allowance provided by
• drafting of the Memorandum Finland in the name and on behalf of the foreign organization or founda- KELA (the Social Insurance Institution of Finland).
of Association tion. The trade name of a branch of a foreign entrepreneur established in
• drafting of the Articles of Finland shall contain the trade name of the foreign entrepreneur with a
Association (to be included in supplement, which indicates that it is a branch - e.g. CDE Cargo Ltd., branch EMPLOYMENT CONTRACTS
the Memorandum of Association) of Finland. A trade name may be registered in two or several languages if In employment contracts and employment relationships, employers must
• subscription of the shares the expressions in the different languages correspond to each other in their comply with the minimum requirements on employment terms and condi-
• Constituent Meeting of the Share- contents. The notification fee of a branch of a foreign organization is 330 €. tions stated in a nationwide collective labour agreement considered to be
holders (if not incorporated without representative in the sector. An employee posted to Finland is entitled to
a Meeting of Incorporation) Trade permit to the National Board of Patents and Registration. A foreign the salary determined by a universally valid Finnish collective labour agree-
• adoption of the Articles of organization or foundation having its registered office outside the EEA, ment for the sector.
Association seeking to establish a branch in Finland, must apply for a permission to
• election of the Managing Director establish the branch from the National Board of Patents and Registration. According to the Employment Contracts Act, the employer must provide the
and the chairman of the Board of The performance fee for the trade permit for a branch of a foreign organiza- employee with a description of the most essential terms and conditions of
Directors (if elected) tion is 100 €. The decision is sent to the applicant or his representative C.O.D employment if they are not indicated on a written employment contract.
• payment of the share capital (cash on delivery). An employment contract can be made for a specified period or until fur-
• registration of the limited company. ther notice. In an employment contract the employee personally commits
Acquisition of a business. You do not need to found a business yourself; you to working for the employer under its management and supervision against
can also acquire an enterprise or its business operations, or become a part- wages or other compensation. An employment contract can be made for a
ner in an existing enterprise. The object of acquisition may be, for example, specified period or until further notice. An employment contract for a speci-
a private undertaking, shares in a general or limited partnership, the entire fied period requires a justified reason. An employment contract can be made
stock of a limited liability company or a majority of the shares. You can in writing, orally or electronically. There are no requirements regarding the
become a member of an existing cooperative by paying the participation form of an employment contract. However, it is recommended that contracts
share. be made in writing, indicating all the terms and conditions.
Finnish law does not impose any restrictions on foreign ownership; foreign-
ers may also acquire Finnish enterprises. More information on the right of ACCIDENT AND PENSION INSURANCE
non-EEA residents to found an enterprise or be involved in the administra- The employer has a statutory obligation to take out accident and pension
tion of a Finnish enterprise can be found on the section “Permits from the insurance for the employees; the employees are also provided with group life
National Board of Patents and Registration for non-EEA residents”. assurance and unemployment insurance in connection with the statutory
accident insurance. The employer must arrange for statutory occupational
A large number of transfers of businesses to younger generations are health care.
expected in Finland in the next few years. According to different estimates,
between 60,000 and 80,000 enterprises are going to change hands in the
next few years. If no new owner can be found within the family, an alterna- TAX AND SOCIAL SECURITY
tive is to sell the business to a third party. The employer is responsible for paying any withheld taxes and social secu-
rity contributions to the tax authorities, and for submitting annual noti-
Source and/or more info from. fications to the tax authorities, and the pension and accident insurance
companies, with informationrmation on the wages and salaries paid to
employees.

MEETING FINNS IN BUSINESS TERMS AND CONDITIONS OF EMPLOYMENT A typical breakdown of the monthly payments made by the employer for
Working hours. Regular working hours are usually at most 8 daily hours and an employee with a salary of EUR 3000.
To succeed as an entrepreneur in Salary 3000
40 weekly hours. In a two week period the working hours are not more than
Social security payment (2,801%) 84
Finland, it is important to be familiar 80 hours and in a three week period 120 hours. The weekly hours may also
Pension insurance TyEl (about 21,4%) 642
with the norms, attitudes and customs be arranged in longer periods during which the average weekly hours do not Unemployment insurance contribution (0,65%) 20
of Finnish business culture. There are exceed 40 hours. Working hours may be arranged by law or collective agree- Accident insurance at work compensation (0,3148%) 9
many characteristics of western, ments alternatively, for example in two or three week periods. Group life assurance payment (0.074%) 2
individual-based culture in Finnish Total employer costs € 3757
society. Finns endeavor to make OVERTIME RULES
sensible use of their time. They follow Typical salaries in Finland, €
Holidays. An employee has a right to receive pay also for the time he/she
Production and operations manager (in business services enterprises) 6,168
timetables and other plans faithfully is on annual holiday. Normally holiday leave accumulates 2 days (when
Sales and marketing manager 5,563
and expect the same from others, employment has lasted less than 1 year) or 2 1/2 days for each holiday credit Electrical engineer 4,232
expecting well-defined targets and month. Normal wages are paid for the time an employee is on holiday. Chemist 3,934
processes, authority and responsibili- Artistic specialist and commercial designer 2,202
ties. Finns are careful and gather Sick pay. According to the law, an employee who is unable to work due to an
background informationrmation in illness or an accident is entitled to paid sick leave. Wages are paid for the Average personnel costs per employee in euros (Source: Eurostat 2006)
advance, but they make decisions Real estate, renting and business activities 40,400
day when the illness started (if it had been a working day for the employee)
Hotels and restaurants 27,100
quickly and thoroughly. Changing a and for the working days. If the employment relationship at the start of the
Transport, storage and communication 39,900
decision is difficult without well- disability has lasted for at least one month, the employee will be paid full
founded reasons. Power and responsi- wages for the said period. If the employment relationship has lasted for a
bility are flexibly distributed with a period shorter than one month, half of the wages will be paid for the same Compared to many alternatives, Finland is a very cost-efficient location
strong streak of independence. Finns period. for running a business. For example, the capital city Helsinki has a wide
dislike being too closely supervised. array of high quality office premises available at competitive costs. The
Personal dignity is highly valued. Parental leave. Parental leave lasts 158 working days taken during pregnancy total costs of employing highly educated professionals in Helsinki are lower
or in the period following birth. It is extended by 60 weekdays per child in than in most other European locations. Helsinki’s compact size and reliable
The Finnish way of thinking and the case of multiple births. transport system helps companies to save money in transportation costs.
working is very consistent. As a result, Finland’s electricity prices are among the lowest in Europe.
they sometimes shun unfamiliar In the case of a baby born prematurely parental leave is 208 working days.
Sources: Statistics Finland, Helsinki Business Hub, Eurostat
modes of operation. In Finnish society, Parents can take their parental leave entitlement in up to two turns of a
all are treated equally and the use of minimum of 12 days each. They have to let their employers know about their
first names universal – but modesty is parental leave plans at least two months beforehand.
appreciated. Finns like to solve con-
flicts by negotiation, looking for an Costs to Business
outcome that is fair for all. In negotia- Statutory contributions by employers amount to about 26% of the gross salary
tions, don’t always expect immediate payable. They include:
feedback on your comments, and • Social security contribution
enjoy taking breaks from the conver- • Pension insurance
sation. Finns greatly value a genuine • Unemployment insurance
interest in Finnish culture and enjoy • Accident insurance
discovering cultural differences. • Group life insurance
A healthy sense of humour is an asset,

and if you have the opportunity to take
a sauna, try it out, your Finnish hosts
will be mightily impressed.

Visas, work and residence permits children too, even if they are entered in the passport or other travel docu-
ment of a parent or guardian.
Application forms. The application form for a residence permit (OLE 1) and
People from countries outside the EU may stay in Finland as tourists for a list of the required attachments is available from diplomatic missions.
three months without a permit. If they wish to work in Finland, they need In order for a residence permit to be granted, the applicant must have a
to apply for a residence permit, even if the period of stay is shorter than valid passport or other approved travel document. In Finland, the residence
three months. EEA and Swiss citizens, their spouses and children under permit with photo is in Finnish or Swedish, depending on which language
21 years of age or dependent on their parents’ care do not need a work permit. the applicant chooses on the application form. There is no provision for
residence permits in English, since EU legislation requires that national
Permits for entrepreneurs and employees. The permits required depend languages be used in each EU Member State.
on whether the person is from or residing in another Nordic country, an
EU country or outside the EU. The notifications and permits required can The cost of a worker’s residence permit is EUR 200.
include registering the right to reside in Finland, the residence permits of
the entrepreneur or employees, and registration in the Population Register. More information in English on acquiring residence permits at the Finnish Immigration
Persons residing outside the European Economic Area (EEA) may also need Service: www.migri.fi
a permit from the National Board of Patents and Registration to serve in
managerial and other duties of responsibility in businesses.
WORK PERMITS
Employment of a foreign national in Finland requires a residence permit,
VISA APPLICATIONS which is applied for before arriving in Finland from a Finnish mission abroad.
Applying for a visa to the Schengen area and application form. Foreign Private entrepreneurship or the exercise of a profession in Finland requires a
nationals who need an entry visa are requested to apply at the nearest Finn- separate residence permit intended for entrepreneurs. Residence permits for
ish mission. In countries where Finland does not have a mission, another employees or entrepreneurs are not required for citizens of EU-member states
Schengen country can represent Finland in visa matters. The Schengen or citizens of Iceland, Liechtenstein, Norway and Switzerland.
member states are Austria, Belgium, Czech Republic, Denmark, Estonia,
Finland, France, Germany, Greece, Hungary, Iceland, Italy, Latvia, Lithua- For EU and EEA citizens. EU citizens and citizens of Iceland, Liechtenstein,
nia, Luxembourg, Malta, Netherlands, Norway, Poland, Portugal, Slovakia, Norway and Switzerland can freely work in Finland if the work lasts for a
Slovenia, Spain and Sweden. These states have jointly agreed about the rules maximum of three months. After that, they must register their right to
concerning the movement of third-country nationals in their territories and reside in Finland, but they do not need a special residence permit.
decided which countries’ citizens are required to present a visa.
For Non-EU citizens. Foreign employees who are non-EU citizens and equiva-
RESIDENCE PERMITS lent persons need a residence permit for an employed person if they intend
Residence permits For Citizens of EU and EEA countries. Citizens of the to work in Finland. An alien who has entered the country either with a visa
Nordic countries (Sweden, Norway, Denmark and Iceland) may freely enter or visa-free is not allowed to engage in remunerated employment in Finland
Finland and reside in the country without a residence permit. They can but, rather, has to apply for a residence permit. A residence permit can
also take up paid employment without a residence permit for an employed be granted on the basis of either temporary work or work of a continuous
person. EU citizens and citizens of Iceland, Liechtenstein, Norway and Swit- nature.
zerland have the right to enter, reside, study, seek work, or practice a profes-
sion in Finland for three months without a residence permit. If the stay In granting the permit, the needs of the labour market are taken into con-
lasts longer than that, they must register their right to reside in Finland at sideration. The aim of the residence permit certification is to support the
a police department. possibility of those who are on the employment market to gain employment. More information in English at Enter-
Thus, the availability of work force is also supported. prise Finland: www.enterprisefinland.fi
Residence permits for citizens of non-EU/EEA countries. Citizens from non- • National Board of Patents and
EU/EEA countries should apply for a residence permit first. Everyone apply- Granting a residence permit for an employed person requires that the alien’s Registration: www.prh.fi • Finnish
ing for a residence permit must fi ll in a separate form. This applies to all means of support be guaranteed. The employment office will estimate both Immigration Service: www.migri.fi
children too. The application is subject to a fee, which will be charged for the labour political requirements and the sufficiency of the means of support. Ministry of Foreign Affairs www.formin.fi

Legal Framework – Corporate Law Taxation
Finland has a civil law system where EC law is directly applicable and takes For businesses, normal taxes consist of a corporation tax (profit tax) and The current 26% corpo-
precedence over national legislation. There are several important legal con- a real estate tax. 26 per cent corporation tax is paid on annual net profits. ration tax is among
siderations to take into account when establishing a business in Finland. Other taxes consist of an assets transfer tax (formerly stamp duty) and a the lowest in Europe.
withholding tax. The employers are also required to make a social security It is paid on annual net
Foreign investment. There are no general restrictions on foreign invest-
ment, although authorisation is required in certain regulated sectors such contribution. profits.
as banking. There are no exchange controls or currency regulations. Govern-
ment subsidies are available in certain areas and usually take the form of Individuals have to pay a progressive income tax from their salaries. Foreign
start-up grants, subsidised loans, state-guaranteed financing and freight personnel working in Finland for longer than a six-month period are also
subsidies. required to do pay Finnish income tax. This guarantees that all residents
continue to receive top-level public health care, free schooling for children,
Directors’ liability. The managing director and members of the board and and other valuable public services. Private individuals’ income tax has come
supervisory board are liable to compensate the company or the shareholders
closer to the European level in recent years in Finland.
for damages caused deliberately or through negligence; and third parties for
any breaches of the articles or the Companies Act.
Parent company liability. A parent company is not generally liable for its CORPORATE INCOME TAX
subsidiaries’ debts, unless it has provided a guarantee for those liabilities. Corporation tax is an income tax collected from limited companies and other
corporations. The tax is levied of the taxable income of a corporation. The
Reporting requirements. Companies must submit their annual accounts taxable income of a corporation is calculated by subtracting the deductible
to the Trade Register. Public companies must prepare and publish interim
expenses of the corporation from its taxable income.
reports at least four times a year. There must be statutory audit in Finland
of a Finnish branch office, if the company’s annual accounts are not being
compiled, audited or made public in the manner corresponding to the cur-
Examples of tax rates in Finland
rent EU rules.
Tax Sub classes Tax rate
Tax residency. Finnish or foreign individuals are treated as a Finnish resi- Corporate income tax 26%
dent if they either have their main abode and home in Finland or stay in Value added tax (VAT) • Standard 22%
• Foodstuffs and animal feed 17%
Finland for more than six consecutive months.
• Books, medicines, admissions to
commercial sporting facilities, sporting
Patents are protected by registration with the National Board of Patents and
events, cultural and entertainment events 8%
Registration. Protection generally lasts for 20 years. • Newspapers and periodicals 0%
Transfer tax, securities 1.6%
Employer obligations. If a foreign company has a permanent establishment
Excise tax Varies, usually
for the purposes of income taxation, its role as an employer in Finland is no not a percentage
different from that of a domestic employer. Therefore the company should
become registered as an employer, withhold money from the wages paid out,
fi le monthly tax returns and annual employer payroll reports. VALUE ADDED TAX (VAT)
VAT is an indirect tax assessed as a percentage of the value of all goods and
More information in English at the Employment regulations. The most relevant statutes regulating employ-
services, unless specifically exempted. It is a consumption tax paid by the
Finnish Tax Administration: www.tax.fi ment relationships in Finland are the Employment Contracts Act 2001 (ECA
end consumer. VAT-registered businesses can deduct VAT paid on purchases
• National Board of Patents and 2001) and Codetermination within Enterprises Act 1978 (CEA 1978). Other
for business activities from their VAT liability. The Finnish acronym for VAT
Registration: www.prh.fi generally relevant statutes applicable to most employment relationships are
is ALV. In 2009 the standard VAT is 22%.
the Working Hours Act 1996, Annual Leave Act 2005 and Safety at Work Act
2002. In general, all employers are subject to labour laws, irrespective of
their size and line of business. Finnish labour laws are generally applicable
Text: Peter Jaspers, Attorney at Law, to all employment relationships in Finland, including foreign employees
BJL Bergmann Attorneys at Law working in Finland and Finnish employees seconded to work abroad.

TRANSFER TAX INCOME TAX FOR EXPATS
Transfer tax is payable on the transfer of the ownership of securities, and If a foreign person works in Finland for less than six months, withholding
it is paid on the purchase price. There are two separate transfers when tax of 35% is paid. However, if the employer is a foreign company without a
exchanging securities and both transferees should pay the tax relating to permanent office in Finland and the salary is paid through a bank, taxes are
the received acquisition. paid in the home country, not in Finland. Key foreign personnel, even if in
Finland for longer than six months but not longer than 24 months, also pay
the 35% income tax, when their monthly salary exceeds EUR 5882.
EXCISE TAX
Excise duty is levied to provide for general government finances. The col- More information in English at: www.vero.fi • www.enterprisefinland.fi
lection of excise duty can also contribute to health and social affairs, the
environment, energy, transportation, or economic policy. Excise duty is
levied on all products that are subject to it, whether domestically produced,
imported from a member state of the European Community, or imported
from a country outside the Community’s tax territory. Excise duty is levied
on alcohol and alcoholic beverages, tobacco products, liquid fuels, electricity
and certain fuels, and soft drinks. Waste tax and oil waste duty are also
comparable to excise duty.
Excise taxation is implemented and controlled by the Finnish Customs.
TAX LIABILITY AND TAXES

Taxes in Finland are levied by the central government, local municipalities
and the church.
For business entities, normal taxes consist of a corporation tax (profit tax)
and a real estate tax, and for individual persons, an earned income tax.
Other taxes consist of Assets Transfer Tax (former Stamp Duty) and with-
holding tax, and for individuals, inheritance and net wealth tax.
The 22% value-added tax (VAT) is levied on all transactions, with a few excep-
tions such as food and animal fodder (17%), books, medicines, accommoda-
tion, transport of persons, cultural events etc. (8%), and banking, health
and educational services (tax-free). Excise taxes are levied on tobacco and
alcohol, among other things.
There is also a special motor vehicle tax and an environmental tax on energy
consumption and certain waste materials.
The Assets Transfer Tax of 1.6% is levied on privately traded shares (0.8% if
through the stock exchange). A preliminary tax on an employee’s income is
deducted and paid monthly by the employer, who also pays social security
and other compulsory premiums. This deduction covers the national income
tax (progressive, from 7.5–60% per annum), the municipal income tax (e.g.
in Helsinki 17,5%), and the church tax (a flat rate from 1–1.98%, depending on
the municipality. The church tax can be waived in cases where the employee
is not a member of the Evangelical-Lutheran or Orthodox churches).

Baltic Sea Region
The countries in the Baltic Map of region STRATEGIC LOCATION Finland also offers the
Sea region cover an area Finland is centrally placed to serve a market area of 80 million people in fastest and the most
of 2.4 million km2, which Northern Europe. This includes the Nordic and Baltic countries, as well congestion-free transport
accounts for nearly half of as Russia. St Petersburg is just an hour’s fl ight from Helsinki. Helsinki channel from Europe to
the EU. also has regular air, sea and rail connections to the other major cities of Russia, China, Korea and
Stockholm, Tallinn and Riga. Most of the transit trade between the EU and Japan through the Helsinki-
Sweden Finland
Russia
Russia already goes via Finland. Many Finnish companies have extensive Vantaa international airport.
GDP (€ billion) of Norway experience of project management and implementation in the Baltic coun-
Estonia
Helsinki, Stockholm, tries and Russia.

Latvia
Copenhagen and Tallinn Denmark Lithuania
100 Germany Poland
90
83 PPS* in Baltic Sea region capitals
80
The Baltic Sea region comprises of (?) Finland, Denmark, Sweden, Norway,
60
57 Estonia, Latvia, Lithuania, Germany, Poland, and Russia. The region Helsinki 50,646
exceeds European standards in many indicators and seeks to be a role model
40
for Europe in achieving sustainable growth based on equality, innovation, Stockholm 74,619
20 mobility and integration. The principal metropolises cooperate in many
8 spheres of society, tied together by the sea that connects them. Copenhagen 59,894
0
2002 2003 2004 2005 2006
Stockholm
Population in the capitals of Baltic Sea Region Tallinn 12,669
Copenhagen
Helsinki* Source: Eurostat
Tallinn
Helsinki* 1,320,220 * Purchasing Power standard: The purchasing power standard (PPS) is the name given
by Eurostat to the artificial currency unit in which the PPPs and real final expenditures
Source: Statistics Finland, Eurostat for the EU 25 are expressed – namely, euros based on the EU 25.
* Greater Helsinki Stockholm 1,860,000
Copenhagen 1,822,000
GDP per capita (€ million) PPS* in Baltic Sea region countries
of Helsinki, Stockholm, Tallinn 521,000
Copenhagen and Tallinn Sources: Statistics Finland, AP Home pages, Local transport companies Finland 260,663
* Greater Helsinki
60,000
48,950 Denmark 157,946

50,000
47,100
40,000
43,903 Size of the workforce in the capitals of Baltic Sea Region
Sweden 142,936
30,000
20,000 Helsinki* 688,684

16,825 Estonia 20,746
10,000
Stockholm 989,700
0
Source: Eurostat
2002 2003 2004 2005 2006
* Purchasing Power standard: The purchasing power standard (PPS) is the name given
Copenhagen 858,000 by Eurostat to the artificial currency unit in which the PPPs and real final expenditures
Stockholm for the EU 25 are expressed – namely, euros based on the EU 25.
Copenhagen
Tallinn 214,000
Helsinki*
Tallinn
Sources: Statistics Finland 2006, Statistics Sweden, Statistics Denmark, Statistics Estonia, OECD
Source: Statistics Finland, Eurostat * Greater Helsinki
* Greater Helsinki

Main Industries
Finland Sweden Denmark Estonia
Metals and metal products, Iron and steel, Iron, steel, nonferrous metals, Engineering,
electronics, precision equipment (bearings, chemicals, electronics,
machinery and scientific instruments, radio and telephone parts, food processing, wood and wood products,
shipbuilding, armaments), machinery and transportation textiles;
pulp and paper, wood pulp and paper products, equipment, information technology,
foodstuffs, processed foods, textiles and clothing, telecommunications
chemicals, motor vehicles electronics,
textiles, clothing construction,
furniture and other wood products,
shipbuilding and refurbishment,
windmills,
pharmaceuticals, medical equipment
Helsinki Stockholm Copenhagen Tallinn

Information technology, IT, Food, Transit trade,
shipbuilding, computer manufacturing, hotel, Food processing,
specialised business expert services, research and development IT and telecom sectors, textile production,
financing and insurance, life sciences (i.e. pharmaceutical and engineering and electronics
the media, biotechnology cluster)
pharmaceuticals and hospital technology
Source: CIA The World Factbook, Eurostat Urban Audit
Cumulative productivity LANGUAGE SKILLS

Finland is a bilingual country; its two official languages are Finnish and
growth in some
Swedish. Foreign languages are studied from the age of 9 and every student
Nordic countries and
studies at least two languages by the age of 16.
EU 1995–2007
35%
Languages spoken by Finnish workforce (18–64 years)
30%
25%
English 82%
20%
15%
Swedish 65%
10% German 33%

5% French 11%
0%
Russian 6%
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
Spanish 6%
Finland
Sweden
EU19 Source: Statistics Finland 2006
EU15
Denmark
Source: OECD
PRODUCTIVITY
The productivity of Finland has grown year by year since 1995. The growth
has been significantly faster than Europe’s on average.
42 Investment Guide Book

1. Helsinki
2. Espoo
3. Vantaa
4. Kauniainen
5. Hyvinkää
6. Järvenpää
7. Kerava
8. Kirkkonummi
9. Mäntsälä
10. Nurmijärvi
11. Pornainen
12. Sipoo
13. Tuusula
14. Vihti
Welcome to Helsinki Greater Helsinki
Greater Helsinki, comprising of the cities of Helsinki, Espoo, Vantaa, Kau- Greater Helsinki consists of the cities of Helsinki, Espoo, Vantaa and Kauniainen The companies that
niainen and 10 surrounding municipalities, is the commercial, political as well as surrounding municipalities represented by the Uusimaa Regional established business in
and cultural center of Finland. Moreover, we are at the heart of the Baltic Council. In addition to urban areas, Greater Helsinki still has many small Greater Helsinki during
Sea Region, which is a rapidly developing market of more than a hundred towns, villages, sparsely settled rural areas, national parks and lots of islands. 2004–2005 are happier
million people. Greater Helsinki is also at the geographical and cultural with their city than their
crossroads between East and West. We have a long history of doing business Someone once said that all Finland has are trees and brains. Helsinki has counterparts in other
in Russia and we are becoming an important business hub between Europe plenty of trees and plenty of brains, but most important is where they are European cities. (ECER
and Asia. located. Helsinki is strategically located at the heart of the Baltic Sea region, Banque Populaire Ranking
Jussi Pajunen (Mayor of Helsinki)
surrounded by fast growing markets, with fast access to the EU and easy air study. Nearly 2,400
Over a third of the Greater Helsinki inhabitants have a higher-level educa- access beyond Europe far to the East and West. Greater Helsinki accounts for European entrepreneurs
tion – a remarkable figure – meanwhile, Finnish students are consistently around 35 per cent of the national GDP and is the driving force behind the from 37 European cities
ranked amongst the smartest on the planet. In addition, we have the work competitiveness of the Finnish economy. answered the study.)
ethics and trans-sectoral skills needed to succeed in knowledge-intensive
businesses in a global economy. Supported by an unmatched, modern infra-
structure, it’s no wonder Finns are constantly ranked as one of the world’s
GDP (€ billion), Helsinki*
most productive workforces.
Marketta Kokkonen (Mayor of Espoo)
1. Helsinki 58
Greater Helsinki offers a very high standard of living and welfare. According 2. Espoo 57
56
to most quality of life indicators, Finland and its capital region are amongst 3. Vantaa
4. Kauniainen 54
the best places in the world to live. It is a green place – both in terms of 5. Hyvinkää 52
its natural public spaces as well as our attitude toward the environment. 6. Järvenpää
Finnish society is also very stable, allowing our people and businesses the 7. Kerava 50
8. Kirkkonummi
48
opportunity to flourish and bloom. 9. Mäntsälä 2002 2003 2004 2005 2006
10. Nurmijärvi
11. Pornainen Source: Statistics Finland
We would like to invite you to discover more of Greater Helsinki in person
Juhani Paajanen (Mayor of Vantaa) 12. Sipoo * Greater Helsinki
and we believe it will be worth your while. 13. Tuusula
14. Vihti
GDP per capita (€),

Helsinki*
Helsinki is one of the leading regions by the Regional European Competitive-
ness Index, scoring second after Brussels. The metropolitan area has also 46,000
43,903
seen an increasing amount of Foreign Direct Investment (FDI). Especially 44,000
Torsten Widén (Mayor of Kauniainen) companies operating in the electronics and software sectors have been inter- 42,000
ested in investing in the Uusimaa region (Helsinki and surrounding areas).

40,000
38,000
2002 2003 2004 2005 2006
DRIVING FORCE OF THE FINNISH ECONOMY

Source: Statistics Finland
Helsinki can be called the driving force of Finland’s economy: The gross * Greater Helsinki
domestic product of Helsinki is 34% of the whole country’s GDP (Helsinki 57

billion €, Finland 167 billion € in 2006). GDP per capita is 38% higher than
Ossi Savolainen (Regional Mayor, that of Finland (31,700 € in 2006). The PPS (Purchasing Power standard) of
Uusimaa Regional Council) Helsinki is 50,646, and of Finland 260,663 € (Eurostat 2007).

PHILIPS INNOHUB Helsinki ranks on top when European regions are put in order by their com- Helsinki Ecosystems
petitiveness. Despite its size, Helsinki offers a vibrant and efficient business
Philips Applied Technologies founded environment.
its first InnoHub in Singapore in 2004.
The second InnoHub started operating The public and private sectors in Helsinki are working together to create
The Regional Competitiveness Index
in the Helsinki area in fall 2008. unique systems of cooperative businesses, also called ecosystems. These
Regional Competitiveness
It was founded in cooperation with Rank Region clusters in specific industries allow a great deal of synergy and productivity
Index Score
VTT Technical Research Centre of 1 Brussels 193.5 that would not be possible working alone. The source of business success
Finland and Well Life Centre in Espoo. 2 Helsinki* 188.3 has expanded from tangible products to technology and knowledge intensive
The objectives of the newest InnoHub 3 ÎIe de France 185.2 businesses. Information technology, life sciences, logistics and environ-
are to generate breakthrough innova- 4 Stockholm 177.8
mental industries are some of the most developed in the world.
5 Luxembourg 165.9
tions for products and services in
6 Prague 165.7
the field of well-being, healthcare and
7 Hamburg 163.5
life-style. The focus will be on the 8 London 162.6 KEY ECOSYSTEMS
clients in the Nordic and Baltic 9 Bratislavský kraj. 159.6 The following ecosystems are defined as the key ecosystems in Helsinki.
countries. 10 Bremen 155.8
Source: Rober Huggins assosiates: European Competitiveness Index 2006-2007

• Cleantech
The function of InnoHub is to help * Uusimaa • ICT
companies transform their business • Life sciences
ideas to practice. InnoHub is a service • Design & Creativity
Main economic indicators, Finland
desk where ideas are turned from • KIBs
2005 2006 2007 2008* 2009* 2010*
technical concepts into a specific • Logistics
GDP (change, %) 2.8 4.9 4.5 2.1 -0.5 0.7
plan and further tested in an open Industrial producion (change, %) 3.9 9.1 5.2 3.9 3.1 • Leisure
innovation environment in a real-life Imports of goods and services 9.6 7.8 6.6 0.4 -2.1 2.6 • Wholesale & Retail
setting. End-users are involved in (change, %)
• Construction & Real estate
Exports of goods and services 6.1 11.8 8.2 3.9 -3.3 1.0
the development process from the
(change, %)
beginning of the project, together Private consumption (% change) 3.8 4.1 3.2 3.1 0.7 1.9 Key figures on the ecosystems, Helsinki*
with product developers and business General government consumption 1.9 0.6 1.3 1.3 1.9 1.6 Number of Revenue Gross value added
partners. Companies can benefit from (change, %) enterprises** Employment (1,000 EUR) (1,000 EUR)
Current account (% of GDP) 4.9 4.6 4.1 3.8 2.5 0.7 ICT 10,243 79,020 43,159,887 8,694,339
InnoHub and its services by becoming
Consumer prices, average 0.9 1.6 2.5 4.1 1.8 1.7 Logistics 5,617 53,936 11,645,869 4,096,362
a member or through ad-hoc projects. (change %), EU harmonized
KIBS 12,203 75,600 11,275,052 5,668,528
Unemployment rate (%) 8.4 7.7 6.9 6.3 7.2 7.7
Design & 6,096 29,728 4,843,474 2,173,836
creativity
Sources: Statistics Finland, Ministry of Finance, Bank of Finland 12/2008
Life sciences 5,469 19,697 3,492,745 1,354,976
* forecast
Clean tech 344 2,253 945,833 165,289
Key figures on the ecosystems, Helsinki* Source: Statistics Finland 2007

* Greater Helsinki
** That have at least one establishment operating in the ecosystem and in the area
Number of Employment Revenue Gross value added
enterprises** (1,000 EUR) (1,000 EUR)
ICT 10,243 79,020 43,159,887 8,694,339
Logistics 5,617 53,936 11,645,869 4,096,362 DEMOGRAPHY OF BUSINESS
KIBS 12,203 75,600 11,275,052 5,668,528 The total number of companies that have at least one establishment in Hel-
Design & 6,096 29,728 4,843,474 2,173,836 sinki is 71,234. 2.8% of them are foreign affi liates. The companies operating
creativity
in Helsinki with at least one establishment in the region, employ 458,089
Life sciences 5,469 19,697 3,492,745 1,354,976
Clean tech 344 2,253 945,833 165,289 persons in total.

* Greater Helsinki
** That have at least one establishment operating in the ecosystem and in the area

OTANIEMI MICROCLUSTERS (OMC)
Number of enterprises with at least one establishment Number of foreign affiliates* with at least one
in Helsinki* establishment in Helsinki** by country of origin (TOP 10)
The Otaniemi Microclusters (OMC)
Sweden 451 project promotes business-driven

Micro 65,751
United States 340 research and research-driven busi-
United Kingdom 213 ness in Otaniemi, Espoo. The OMC
Small 4,354
Germany 199
project’s objective is to identify
Denmark 122
Medium 905 Micro <10 persons world-class research and international
Micro <10 persons France 91
Small Smallpersons10-49 persons
10-49
Medium
Medium 50-249 50-249 persons
persons Norway 82 anchor companies. The Otaniemi
Large 224 Large Large
250< persons 250< persons
Netherlands 76 Microclusters project has joined
Japan 73 forces with both public and private
* Greater Helsinki Switzerland 63
organizations with a mission to create
world class microclusters in Otaniemi
*A company resident in the compiling country over which an institutional unit not resident
in the compiling country has control, or an enterprise not resident in the compiling country that generate lively technological
Development of revenues and number of enterprises over which an institutional unit resident in the compiling country has control
** Greater Helsinki ecosystems These microclusters
with at least one establishment in Helsinki* generate world class innovations and
Revenue ( ) Number of fast growing hitech companies as well

enterprises Development in the turnover and number of foreign as value adding hi-tech jobs, attract
180,000,000 74,000 affiliates* with at least one establishment in Helsinki** global technology actors and VC
160,000,000 72,000 money to Otaniemi, and offer open
Revenue of foreign Number of foreign Source: Statistics Finland
140,000,000 70,000 affiliates ( ) affiliates innovation platform to anchors and
*A company resident in the
120,000,000 68,000
45,000,000 2,500 compiling country over which an academia.
66,000 institutional unit not resident in
100,000,000 40,000,000 the compiling country has control,
64,000
80,000,000 35,000,000 2,000 or an enterprise not resident in
62,000 the compiling country over which The liaison formed between the public
60,000,000 30,000,000 an institutional unit resident in
60,000 and private players makes an attrac-
1,500 the compiling country has control
40,000,000 58,000 25,000,000 ** Greater Helsinki tive space for high-growth business
20,000,000 56,000 20,000,000
1,000 start-ups, forming a beneficial micro-
0 54,000 15,000,000
2004 2005 2006 2007 cluster for all three. The outcome of
10,000,000 500
5,000,000 Revenue the concentration of professionals and
Source: Statistics Finland Revenue
* Greater Helsinki Number of enterprises 0 0 Number of foreign affiliates open innovation will be an increased
2004 2005 2006 2007 quality in research and business.
There are four ongoing and upcoming
2.8% of the companies INTERNATIONAL BUSINESS ENVIRONMENT cluster programs: Nanosurface@
in Helsinki are foreign Otaniemi, Mobility@Otaniemi,
affiliates. Number of foreign affiliates* with at least one Microsystems@Otaniemi, and
establishment in Helsinki** Energy@Otaniemi.
Micro 1,011 More information in English on Otaniemi

Microclusters: www.omc.otaniemi.fi
Small 620
Medium 280 Micro <10 persons

Small 10-49 persons
Large 70 Medium 50-249 persons
Large 250< persons

*A company resident in the compiling country over which an institutional unit not resident
in the compiling country has control, or an enterprise not resident in the compiling country
over which an institutional unit resident in the compiling country has control
** Greater Helsinki

Helsinki infrastructure
Many Fortune Global 500 In recent years enormous investments have been made in Helsinki’s infra- The broadband penetration
Fortune Global 500 companies in Finland
companies have presence structure. Through recent undertakings ranging from the expansion of is at a high level: it is 76.8%
(TOP20; banks and insurance companies included)
in Finland. the Helsinki-Vantaa Airport to the construction of a new cargo harbour and in Helsinki and 69.2% in
Rank Company Name in Finland
5 Toyota Motors Toyota Motor Finland Oy extending its fibre optic networks, Helsinki offers one of the most effective the whole country.
9 General Motors General Motors Finland Oy infrastructures in the world. (Statistics Finland, 2009)
11 Daimler Daimler Finland Oy
13 Ford Motor Volvo Auto Oy
17 Citigroup Citibank
A WELL-DEVELOPED AND FUNCTIONING INFRASTRUCTURE
26 Deutche Bank Deutche Bank AG Helsinki Branch
Getting around in the region is easy. The network of commuter trains,
35 AIG-American International Group AIG Europe S.A. (Finland)
37 Siemens NokiaSiemens Networks Oy metro, trams and buses take you flexibly from the surrounding areas to
41 Hewlett-Packard Hewlett-Packard Oy downtown Helsinki. There are many business parks in the metropolitan
46 IBM Oy International Business Machines Ab area that offer great locating premises. The Aviapolis business park in Van-
47 Gazprom Gasum Oy taa is located a mere stone’s throw away from the Helsinki-Vantaa Airport
48 Hitachi Hitachi Data Systems Oy
and business parks such as Technopolis in Espoo offer premises for those
50 Nissan Motor Nissan Nordic Europe Oy
seeking an environment catering from technology and innovation.
52 E.ON Fennovoima Oy
55 Deutche Post DHL Global Forwarding (Finland) Oy
57 Nestlè Suomen Nestle General info
73 BASF BASF Oy Mobile penetration over 100 percent; over 6.4 million subscribers in June 2008
75 Sony Sony Music Entertainment Finland Oy Internet more than 75 percent of Finns use internet regularly or
78 BMW Oy BMW Suomi Ab occasionally (Finland’s total population is 5.3 million); for
79 Procter & Gamble Procter&Gamble Finland those under the age of 40, the figure is 100 percent.
81 UnitedHealth Group Ingenix International (Finlan) Oy Broadband connections 1.923 million (at the end of June, 2008)
82 Hyundai Motor Hyundai Motor Finland Oy Railways 5,732 km, electrified 2,617 km
88 Nokia Nokia Oyj Waterways 7,842 km, includes Saimaa Canal system of 3,577 km;
89 ThyssenGroup Polarputki Oy southern part leased from Russia
90 Lukoil Teboil Oy Airports 76 spread around the country, two of them with runways
over 3,000 m
92 Toshiba HM-Office Oy
Ports Helsinki, Hanko, Kotka, Turku, Hamina, Pori, Naantali,
97 Suez Sita Finland Oy Ab
Rauma, Raahe, Porvoo
101 Robert Bosch BSH Kodinkoneet Oy
106 Dell Oy Dell Ab
107 Johnson&Johnson Janssen-Cilag Oy
BUSINESS PARKS
Sources: ODIN, ORBIS, Fonecta
There are several business districts in Helsinki. All of them provide the
companies with a good location and connections within the city and to
elsewhere in Finland.
Otaniemi mainly tempts technology companies. The business area is located

in the same neighborhood with the Helsinki University of Technology in
Espoo. New office space is being developed in the area that will host the new
Aalto University opening its doors in 2010.
Other business districts in Espoo are for example Keilaniemi, Tapiola, Niit-
tykumpu and Matinkylä. Traffic connections to these areas will be improved
when the westbound metro is completed by 2013.

Costs
Traffic connection from Ruoholahti’s office area has attracted companies from various fields, such as Compared to many alternatives, Helsinki is a very cost-efficient city for
the city centre to the IT/hi-tech and business consultancy companies. The area is in the vicinity running a business. A very wide array of high quality office premises is
Helsinki-Vantaa airport will of the city centre. Other office areas outside the city centre include Pasila, available at competitive cost. The total costs of employing highly educated
become even faster once Sörnäinen, Vallila and Lauttasaari. professionals in Helsinki are lower than in most other European locations.
the Ring Rail Road starts
operating in 2014. Aviapolis is located in the immediate vicinity of the Helsinki-Vantaa inter-
national airport. The companies operating in the area currently employ SALARY COSTS AND CONTRIBUTIONS
approximately 30,000 people. The development of Aviapolis continues: an
HELSINKI CITY TRANSPORT
area of 400,000 square meters has already been zoned for the construction Average yearly income of certain professionals*
of office space. Traffic connections will be improved by the opening of the Occupation €
Helsinki’s public transport was ranked
Ring Rail Road in 2014 that connects the airport area seamlessly with the Production and operations manager (in business services enterprises) 74,016
the second best in Europe in the 2008
Helsinki city centre. Sales and marketing manager 66,756
BEST (Benchmarking in European
Research and development manager 65,952
Service of Transport) study. The most Electrical engineer 50,784
valued aspects of public transporta- Business parks Chemist 47,208
tion to citizens were its environmen- Some main business districts in Helsinki* Artistic specialist and commercial designer 26,424
tally friendly values and its social Aviapolis Otaniemi Ruoholahti Source: Statistics Finland
significance. The number of bus and Number of companies 765 487 1,536 * ISCO-88 Classifications
train stops in the transportation Distance to the city centre (km) 19 7 3

Distance to the airport (km) 0 23 20
network in the city centre was consid-
Rents
ered important. Travellers thought that
Source: Statistics Finland (number of companies) City Central Business District rents Suburban / Out-of-town rents
the Helsinki City Transport provides a * Greater Helsinki
Class A Gross Rent* (USD) Class A Gross Rent* (USD)
safe way to travel. Helsinki 40.87 20.43
Stockholm 57.44 28.72
Helsinki City Transport participates in Copenhagen 33.45 19.37
COMMUTING TIMES
many research and development Oslo 38.18 24.36
Less than half an hour is spent travelling from home to work in Helsinki. Tallinn 29.87 18.55
projects, which aim at finding more
environmentally friendly public trans-
Metro, commuter train, tram lines and bus networks provide the commut- Riga 37.72 25.15
portation. The bio-diesel project has ers a quick and safe journey to their offices. Vilnius 27.51 22.95
St. Petersburg 71.28 46.93
an objective to reduce emissions and
Warsaw 59.45 36.44
greenhouse gases. Another project
Hamburg 42.44 26.72
has a goal of minimizing the use of Average commuting times
Source: Colliers International / Global Office Real Estate Review 2009
energy by taking buses using hybrid Average commuting times in Helsinki, Stockholm, Copenhagen and Tallinn * The average rent quoted per square foot per annum for a class A office building withing the CBD plus additional
energy into use. Helsinki City Trans- costs such as property taxes, service charges or or operating expenses
Helsinki Stockholm Copenhagen Tallinn
port will be testing hybrid buses in the Average travel time from home to work 26 35 27 28
(mins)
near future together with traffic opera- Contributions
tors. The metro and local trains form Average travel time from city center to 35 50 27 21
airport by bus (mins) Contribution Rate
the base of the public transport in the Employer’s social security contribution General I Class 2.771%
metropolitan area, and in the future Sources: Eurostat Urban Audit, Helsinki-Vantaa Airport, Flygbussarna, The Danish Travel Plan, Tallinn public II Class 4.971%
they will be further developed. There transport schedules
III Class 5.871%
are numerous extension plans for the Group life assurance (obligatory) Varies between insurance offices
rail traffic, for both the tram routes and More information in English on Helsinki City Transport: www.hkl.fi Accident insurance payment 0.3–7.5%
the metro, which will be extended to TYEL-pension insurance premium Over 20% of wages (average 21.8%)
Espoo, while different rail options are Unemployment insurance premium 1–4%
planned for quick access to the Sources: Vero.fi, Suomen Yrittäjät
Helsinki-Vantaa International Airport.

Helsinki workforce
Employer’s social security contributions. The contribution is payable by the The Finns are known as a hard-working people, and Helsinki is consistently The number of engineers
employer every month. It is determined according to the monthly amount of in the Top 10 for productivity in Europe. Education and training are strongly in Helsinki is high: about
paid wages. If a foreign company is permanently established in Finland, it emphasised in Finland, and the investment pays off: Finnish professionals 30,000 in a total population
is always obliged to pay this contribution. are well educated and boast excellent language proficiency. English as of 1.3 million. There are five
a business language causes no problems for Finnish workers as they are schools that offer both
Group life assurance (obligatory). The rate varies between insurance offices. required to take English at all levels of their studies. The availability of bachelor and higher level
a highly educated workforce in knowledge intensive business areas is high. education in engineering.
Accident insurance payment. Employers should take out accident insurance The labour costs are relatively low compared to many other Western (Statistics Finland)
for their employees from an insurance company. countries.
TYEL-pension insurance premium. Employers are obliged to take out pension

insurance for their employees. It is taken from a Finnish pension insurance LEVEL OF EDUCATION
Nature of educational
company. The premium includes the employee’s share, which the employer Finland is well known for its excellence in education: Finnish students have
background in Helsinki*
must withhold on every payday. repeatedly ranked fist in OECD’s PISA study. The compulsory education con-
tinues until the age of 16 and after that most continue to vocational schools Doctor 2 %
Unemployment insurance premium. The premium is withheld and collected and high schools, and further on to higher education in universities and
from wages, and it is payable to the same insurance company as the accident universities of applied sciences.
insurance payment. The employee’s share of the premium is withheld by the Master 20 %
employer. Secondary
Share of adults with tertiary education educaton
(bachelor or higher) 41 %
For more information in English, the Finnish Tax Administration at: www.vero.fi Bachelor’s
degree
Finland 35% 16 %
Upper
OCCUPANCY COSTS Sweden 39%
Secondary
education 21 %
In addition to being an affordable place to open business, Helsinki’s compact
size and efficient traffic solutions offer companies an opportunity to save Denmark 36%
money in transportation costs. Reliable high-speed communications serv- * Uusimaa
ices are available for businesses at affordable prices everywhere in Helsinki. Estonia 33%
Based on industrial end-users consuming 2 GWh per year and excluding Source: Education at Glance 2008 / OECD Indicators
VAT, the average price of 100 kWh of electricity was € 9.18 in the EU in 2007.
Electricity prices ranged from € 4.43 in Latvia to € 13.87 in Italy. Prices were
relatively low in the Baltic States as well as in Bulgaria, Finland, France and Helsinki offers a diversely skilled, highly educated and cost-effective work-
Poland (less than € 6.00 per 100 kWh). (Eurostat) force. Finland has made the development of a competent, multilingual, and
motivated workforce a national priority. The workforce is generally highly
Electricity prices (EUR/100 kWh; including taxes) computer literate and proficient in several languages.
Household Industry
Finland 11.60 6.89 The education system is ranked high in international competitiveness
Sweden 17.14 6.31 reports and it meets the needs of a competitive economy e.g. with a high
Denmark 25.79 10.74 number of qualified engineers and other professionals with university
Estonia 7.50 6.30
degrees in various fields. Vocational education has also witnessed a major
Source: Eurostat / Europe in figures - Eurostat yearbook 2008

transformation in recent years, enhancing the skills and qualifications of
young people entering the labour market.

A new university – Aalto The Finnish higher education system consists of two parallel sectors:
Employment by occupation, Helsinki* Employment by
University – will begin its polytechnics and universities. Universities are characterized by scientific
Occupation Employment ecosystem, Helsinki*
work in 2010 when the research and higher education based on it. There are altogether 20 universi- Corporate managers 78,100 Ecosystem Employment
Helsinki University of ties in Finland. Polytechnics are working life oriented and operate on the Physical, mathematical and engineering science professionals 61,200 ICT 79,020
Technology, Helsinki basis of higher expertise requirements set by working life. Architects and engineering science professionals 28,000 KIBS** 75,600
Sales and marketing managers 25,500
School of Economics and Logistics 53,936
Business professionals 19,700
the University of Art and UNIVERSITIES AND UNIVERSITIES OF APPLIED SCIENCES Design & 29,728
Production and operations managers 14,000 creativity
Design are combined. There are 17 universities and universities of applied sciences in Helsinki.
Electronics and telecommunications engineers 7,700 Life sciences 19,697
Legal professionals 7,700 Clean tech 2,253
Universities and universities of applied sciences in Helsinki* Artistic, entertainment and sports associate professionals 7,300
Universities Universities of applied sciences Mechanical engineers 4,700 Source: Statistics Finland 2007
* Greater Helsinki
Aalto / Helsinki School of Economics Arcada University of Applied Sciences Research and development managers 4,700
** Knowledge intensive business services
Aalto / Helsinki University of Technology Diaconia University of Applied Sciences Electrical engineers 4,200
Aalto / University of Art and Design Helsinki Haaga-Helia University of Appliec Sciences Physicists, chemists and related professionals 2,600
Academy of Fine Arts HAMK University of Applied Sciences
National Defense University Helsinki Metropolia University of Source: Statistics Finland 2008
* Greater Helsinki
Applied Sciences
Sibelius Academy HUMAK University of Applied Sciences
HANKEN – Swedish School of Economy and Lahti University of Applied Sciences GDP per hour worked (at current prices, US dollars) R&D expenditure
Business Administration in Helsinki* by sector
CAREER SERVICES FOR Theatre Academy of Finland Laurea University of Applied Sciences
INTERNATIONAL STUDENTS University of Helsinki Finland 43,1
The KVOTA project develops trainee- Source: Hera (Helsinki Education and Research Area)
* Greater Helsinki Sweden 45,9 University
ship possibilities for international sector
degree students in Finland. It is a Denmark 43 17 %
cooperation project between the
EU15 45,4 Public
career and recruitment services in Post-graduate students and doctorate students sector
higher education institutions, cities in the universities of Helsinki EU19 41,8 15 %
and companies in Greater Helsinki.

University of Helsinki 5,406 Source: OECD 2007 Private sector
KVOTA is a part of the Helsinki Educa- 2,203 68 %
tion and Research Area (HERA) project Aalto / Helsinki University of Technology 2,519
that develops the international activi- 814
336
GDP per hour worked as percentage of USA*
ties of higher education institutions. Aalto / Helsinki School of Economics Source: Statistics Finland 2006
146 * Uusimaa
During the summer of 2008, the
Aalto / University of Art and Design 203 Finland
KVOTA project approached over one 82.2%
90
hundred companies by phone. Half of Swedish School of Economics and 162 Sweden 87.6%
the companies had a positive attitude Administration 70
Post-graduate students Denmark 82%
towards the idea of hiring an interna- Sibelius Academy 130
37 Doctorate students
tional student as a trainee. KVOTA was
EU15 86.6%
Source: Kota Online 2007
a pilot project that initiated marketing
international students to employers. It EU19 79.8%
is followed by the VALOA project that,
Source: OECD 2007
like KVOTA, concentrates on promot- EMPLOYMENT * USA = 100
ing international students to employers The key ecosystems employ 260,235 persons in Helsinki. The size of the total
and seeking and securing traineeship workforce (16-64 years old) is 921,000 persons. (Statistics Finland)
opportunities for them. R&D EXPENDITURE The Finns are productive
A total of EUR 2399,73 million was spent on R&D in Helsinki in 2006 (EUR despite strong trade
More information on career services 5761,19 million in Finland in total). The amount was divided between pub- unions, short working days
for international students: www.hera.fi lic, private and university sectors. and long holidays.

Quality of life
Helsinki leaves other Helsinki offers a very high standard of living and welfare. According to The general consensus is for further development of the public transporta-
locations green with envy. most quality of life indicators, Finland and Helsinki are among the best tion system, but according to studies other means to lower the use of private
places in the world to live. Helsinki is a green city both in terms of its cars may be needed in the future as passenger cars still account for 85 per
natural pubic spaces as well as our attitude toward the environment. cent of all transport nationwide.
Finnish society is also very stable, allowing out people and businesses
the opportunity to flourish and bloom. You will enjoy living in multilingual At the moment Helsinki has a wide network of Park and Ride parking areas
Helsinki, if you feel the same about life as the Finns. near stations, terminals and bus stops and some companies offer subsidised
travel passes to encourage their employees to use public transport.
Helsinki is a compact, yet spacious metropolis, and surrounded by the sea.
Downtown Helsinki is easy to explore on foot or by tram and bus. The entire All in all, one should bear in mind that the healthiest way to travel to work
metropolis is served by a superb mass transit network, by bus, commuter is on foot or bicycle. In the summer you can even borrow a “Citybike” for a 2
train and metro, with plenty of park and ride facilities if you live further euro (3 USD) deposit.
out. Europe’s largest underground bus terminal serves over 150,000 com-
muters a day, with covered walkways connecting the downtown area. Snow
or shine, you are connected. Our winter is a fact of life, but the infrastruc- FREE EDUCATION
ture is designed for it. In Helsinki there are 9 universities and 10 universities of applied sciences, In Finland, higher education
with more than 60,000 students, a growing proportion from abroad. Many is free also for international
further education courses are taught in English, and there are international students whereas, for
FAST JOURNEYS TO WORK schools for primary and secondary education. example, an international
Modern working life in Helsinki is easier compared to the larger metropo- student of the University of
lises of the world. For example, the average journey to work in Helsinki is 6.2 Facilities for student work and play match any European capital and chal- London will pay approxi-
km (3.9 miles), which takes up to 30 minutes during rush hour. In Central lenging local careers await for the creative and the innovative, due to the mately €15,600 per year.
London the average journey to work is 14 km (8.7 miles), which can take up close cooperation between academia and business. Helsinki has expanding
to an hour, and sometimes considerably more. employment in a wide range of advanced and interconnected disciplines.
In downtown Helsinki, the journey to work is most often done by tram. In Finnish universities an average bachelor’s degree will take three years to
There are 11 main tram routes in Helsinki and in 2004 over 56 million jour- complete and a master’s degree five years.
neys were made by tram.
Some of the most advanced doctoral research work is being conducted in the
The Metro is another quick and safe way to travel. The journey time between key cluster areas of technology, business development and creativity, and
stations is one to two minutes. The peak-hour train frequency is app- the synergy between them. But the breadth of advanced education covers
roximately 4 minutes and off-peak 5 minutes. A single ticket costs €2–2.20 the full spectrum. There are over 6000 researchers in the specialized Hel-
($3–$3.40) and is valid for 60 minutes from the moment of purchase, however sinki universities and universities of applied sciences.
most frequent travellers have travel cards. There are an estimated 700,000
of them in daily use.
AALTO UNIVERSITY
Currently Greater Helsinki is gearing up for major expansions to its metro, The most recent change in the field of higher education in Helsinki is the
commuter rail, tram and bus networks. A western metro line extension is merging of the Helsinki School of Economics (HSE), the University of Art
already set to go ahead and should be up and running in 2012, by which time and Design Helsinki (TaiK) and the Helsinki University of Technology (TKK)
the whole metro system is scheduled to be fully automated with driverless into the Aalto University. This new top university will formally exist in time
cars enabling shorter time-intervals in between trains. There are also plans for the autumn 2009 semester. It is hoped that by 2020 the merger will have
to establish new peripheral east-west commuter train and bus lines. Exten- resulted in a world-class technological, commercial and design university,
sions to the tram network are also underway. with innovation at its heart.

Helpful Organizations
The International School There is plenty of student accommodation in Helsinki and the surrounding Finland and Helsinki offer a top- Helsinki, Espoo, Vantaa and Kau-
of Helsinki is an IB World municipalities. For a shared apartment, a student in Helsinki can expect level business environment, excel- niainen, as well as the Uusimaa
School authorized to offer to pay c. €200–€300 ($300–$450) in rent per month, whereas in London the lence in technology and, as the Regional Council. GHP is a service
International Baccalaureate average monthly rent is around €600 (over $900). The standard of accom- business centre of Northern Europe, agency for foreign companies that
programs to students modation in Helsinki is also much higher than in London. the most cost-effective, direct are interested in locating in the
aged 4 onwards in grades access to 80 million consumers. Helsinki region.
K1 to 12. Active student status also entitles the student to a 50 per cent discount on If you are interested to learn more,
travel in the capital area. Student discount in London is only 30 per cent. A or need a guide through the process Each company needs to find its own
student who lives permanently in Helsinki will pay approximately 21 euros of establishing a presence in business case and we are the local
(32 USD) per month for travel; other students have to pay approximately 40 Finland, the following organiza- neutral partner for your business
euros (60 USD). tions can offer you direct help. development team. We look forward
Helsinki is among the to hearing from you.
world’s cleanest, safest INVEST IN FINLAND
and most culture-oriented FINNISH DAYCARE ALMOST AS GOOD AS HOME Invest in Finland is a national Visiting address:
capitals. Most people would agree that nobody can look after a child like its own expert service organization assist- Mechelininkatu 1 a, 00180 Helsinki
parents. The good news is that, in Finland, the daycare system comes a very ing foreign companies in establish- Tel: +358 9 562 6677
close second to a child’s own parents. This helps improve the overall quality ing or expanding their business. It Fax: +358 9 562 6688
of life for the whole family. is funded by the Ministry of Trade & Email: [email protected]
Industry. Whether it’s opening a
The daycare system is also a good way to prepare a child for school. As a Nor- sales office, mapping out merger
dic welfare state Finland is perfectly capable of guaranteeing this chance for and acquisition targets, or setting FINPRO
parents and their children. Finnish daycare facilities can offer their services up a R&D/manufacturing unit, we Finpro is an association founded by
between 6.30 in the morning and 18.00 in the evening, excluding public at IIF give you a head start on Finnish companies. The aim of
holidays and the summer holiday period. Foreign language daycare can be achieving profitable growth. Give Finpro is to guarantee that Finnish
found in Helsinki in the following languages: English, Spanish, French, us a call or just send an email and companies, especially SMEs, have
Swedish, German, and Russian. let’s find your next business access to high quality, comprehen-
opportunity. sive internationalization services
around the world.
FINLAND’S WORLD HERITAGES INVEST IN FINLAND
One of the best things about being out and about in Helsinki is that, despite Kaivokatu 8, 6th floor During the last 90 years Finpro has
its laid-back surface, one can dig a little bit deeper and find some world- FI-00100 Helsinki, Finland evolved into an international con-
class gems. Finland hosts seven UNESCO World Heritage sites: the fortress tel. +358 10 773 0300 sulting network that has been
of Sveaborg Sea Fortress, Old Rauma, the Petäjävesi old church, the Verla fax. +358 10 773 0301 instrumental in the internationali-
groundwood and board mill and the archaeological site of Sammallahden- [email protected] zation projects of thousands of
mäki, the Struve geodetic arch and the Kvarken archipelago. Finnish companies. Its main objec-
tive is to accelerate and promote the
It’s easy to see that the Finns enjoy a close relationship with the sea. Fur- GREATER HELSINKI internationalization of Finnish
ther activities include boat trips to Helsinki’s other main island attraction PROMOTION (GHP) companies and find new markets
Korkeasaari Zoo, and sightseeing tours abound. However, if you get lucky Greater Helsinki Promotion Ltd for them. Finpro offers its client
and make friends with the locals who have second homes on the archipelago (GHP) is the international business organizations comprehensive sup-
lying off the coast then you’ll really be able to appreciate the Finnish holy promotion agency for the Helsinki port along the entire journey, and
trinity of sauna, beer and sausages in its proper setting. area. GHP receives its funding from both strategic and practical assist-
public sources – from the cities of ance. Finpro encompasses over 330

professionals in more than 40 coun- FINCHI FECC
tries representing a unique, FinChi is a non profit organization, The Finnish Environment Cluster
dynamic partner for Finnish com- based in Shanghai, dedicated to for China supports green opportu-
panies and institutions. supporting Finnish high-tech com- nities between the two countries.
panies in entering and expanding
Postal address: P.O. Box 358, in China. FinChi provides a wide FINNISH ENVIRONMENTAL CLUSTER
Visiting address: Porkkalankatu 1, range of services, resources and FOR CHINA/FECC
00181 Helsinki, Finland reliable office solutions. Cleantech Cluster Programme
Tel: +358 204 6951 Lahti Science and Business Park Ltd
Fax: +358 204 200 FinChi was established by the Niemenkatu 73
Email: [email protected] Ministry of Trade and Industry of FI-15140 Lahti, Finland
Finland, together with Finpro and
Tekes. This unique innovation con- China
TEKES cept is also fully supported by the Yang Fenghui
TEKES, the Finnish Funding Shanghai Pudong government. Tel: +86 21 6104 2271
Agency for Technology and Innova- The strong local connections enable [email protected]
tion, is the main public funding FinChi to network high-tech compa-
and expert organization for nies and local Chinese enterprises.
research and innovation in Fin- FINNODE
land. Tekes funds innovative The FinChi community fosters a cul- FinNode is your access node to
research and development projects ture of innovation, wealth creation a global network of resources. We
in companies, universities and and lucrative business ventures. To are a business and technology
research institutes, and especially date, FinChi has served nearly 30 community designed to help North
promotes innovative, risk-intensive Finnish organizations ranging from American companies hook up with
R&D projects. The focus areas of government agencies to research partners in Finland and the U.S. –
Tekes strategy are wellbeing and institutes, from traditional paper whether you are looking for specific
health, a knowledge society for all, industry to venture capitalist. IP, cutting-edge research, R&D
clean energy, management of resources or even available talent
scarce resources, the built environ- FINCHI Innovation Center Co., Ltd.
ment, intelligent systems and envi- Rm401-402, #2 BLDG FINNODE
ronments, service business and 690 Bi Bo Road 3945 Freedom Circle
innovations, and interactive media. Zhangjiang Hi-Tech Park Suite 110
Shanghai 201203 Santa Clara, CA 95054
TEKES Tel: +86 21 6104 2222 Tel: +1 408 748 7400
Postal address: P.O.Box 69 Fax: +86 21 6104 2200 Email: [email protected]
Visiting address: Kyllikinportti 2, FIN- E-mail: [email protected]
00101 Helsinki, Finland
Tel: +358-1060 55000 芬华创新中心有限公司
Fax: +358-9-694 9196 碧波路690号，2号楼，
401-402室
Email: [email protected]
上海市张江高科技园区
邮政编码：201203
电话：+86 21 6104 2222
传真：+86 21 6104 2200

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2009

DEAR READER DEAR READER

Finland welcomes Chinese companies and entrepreneurs to explore the

My Ministry and our national investment promotion agency Invest in

2 Investment Guide Book Investment Guide Book 3

2 Welcome to Finland Bangkok 9 h 45 min

40 Baltic Sea Region

4 Investment Guide Book Investment Guide Book 5

Consumer prices, average (change, %), 100

Population density 17 inhabitants per square kilometer 25,000

Sources: Statistics Finland 2009, Eurostat

6 Investment Guide Book Investment Guide Book 7

Sources: Statistics Finland 2009

8 Investment Guide Book Investment Guide Book 9

FOREIGN DIRECT INVESTMENT (FDI) IN FINLAND

10 Investment Guide Book Investment Guide Book 11

EUROPEAN COMPETITIVENESS INDEX 2006-2007

12 Investment Guide Book Investment Guide Book 13

The chemical industry is Finland’s third-largest industrial sector. The range

14 Investment Guide Book Investment Guide Book 15

PAPER AND PULP

16 Investment Guide Book Investment Guide Book 17

18 Investment Guide Book Investment Guide Book 19

TRADE AND SERVICES

The Finnish property market continues to deliver a stable return on invest-

Finland’s central location in Northern Europe, combined with its modern

20 Investment Guide Book Investment Guide Book 21

22 Investment Guide Book Investment Guide Book 23

24 Investment Guide Book Investment Guide Book 25

Transport aid may be granted for deliveries of goods produced to sparsely

oﬃcial Export Credit Agency (ECA).

26 Investment Guide Book Investment Guide Book 27

28 Investment Guide Book Investment Guide Book 29

THE STAGES OF ESTABLISHMENT ESTABLISHING A LIMITED COMPANY TRADE UNIONS IN FINLAND

30 Investment Guide Book Investment Guide Book 31

A healthy sense of humour is an asset,

32 Investment Guide Book Investment Guide Book 33

34 Investment Guide Book Investment Guide Book 35

36 Investment Guide Book Investment Guide Book 37

Excise taxation is implemented and controlled by the Finnish Customs.

TAX LIABILITY AND TAXES

38 Investment Guide Book Investment Guide Book 39

Helsinki, Stockholm, tries and Russia.

100 Germany Poland

48,950 Denmark 157,946

20,000 Helsinki* 688,684

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Helsinki Stockholm Copenhagen Tallinn

Source: CIA The World Factbook, Eurostat Urban Audit

Cumulative productivity LANGUAGE SKILLS

10% German 33%

42 Investment Guide Book

GDP per capita (€),

ested in investing in the Uusimaa region (Helsinki and surrounding areas).

DRIVING FORCE OF THE FINNISH ECONOMY

domestic product of Helsinki is 34% of the whole country’s GDP (Helsinki 57

44 Investment Guide Book Investment Guide Book 45

Source: Rober Huggins assosiates: European Competitiveness Index 2006-2007

Key ﬁgures on the ecosystems, Helsinki* Source: Statistics Finland 2007