The productive investment rate in Finland and competitor countries
The article examines Finland’s productive investment rate relative to the Netherlands, Sweden, Germany, and Denmark.
Finland’s investment rate has been lower than Sweden’s throughout the entire review period, and since the financial crisis it has continued to decline, unlike in the comparator countries. The central finding is that the decline is explained almost exclusively by a contraction in R&D investment — and this primarily as a consequence of organisational changes in a single electronics group. Investment in machinery and equipment, by contrast, has actually grown in recent years.
The conclusion is that concern about the adequacy of investment should be directed specifically at R&D investment. Policy measures can support a stable operating environment and R&D activity, but quickly replacing lost investments is unrealistic. (AI translation)
