OECD Economics Department Working Papers

ISSN :
1815-1973 (online)
DOI :
10.1787/18151973
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Working papers from the Economics Department of the OECD that cover the full range of the Department’s work including the economic situation, policy analysis and projections; fiscal policy, public expenditure and taxation; and structural issues including ageing, growth and productivity, migration, environment, human capital, housing, trade and investment, labour markets, regulatory reform, competition, health, and other issues.
 

Restarting the Growth Engine in Finland You or your institution have access to this content

Authors:
Henrik Braconier1
Author Affiliations
  • 1: OECD, France

Publication Date
03 Sep 2012
Bibliographic information
No.:
981
Pages
44
DOI
10.1787/5k92zp04tlr6-en

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Impressive productivity performance during the last decades has weakened since 2007, reflecting the 2008-09 recession but also a poor performance in important sectors, like the information and communication technology sector. Reforms to raise long term productivity growth need to be pursued. Current project-based R&D-support and business subsidies seem inefficient and should be scaled back and remaining support should focus on addressing externalities in terms of the creation of high productive jobs and R&D spillovers. A R&D tax credit could provide higher flexibility, equity and efficiency than current targeted support. Capital taxation should be streamlined to improve incentives for entrepreneurship and growth. The performance of the higher education system could be improved through allocating more R&D funding and teaching resources based on quality rather than block grants. Productivity performance could be enhanced by exposing sectors like health provision, network industries and retailing to more competition through lowering government dominance in provision and loosening planning restrictions. This Working Paper relates to the 2012 OECD Economic Survey of Finland (www.oecd.org/eco/surveys/finland).
Keywords:
entrepreneurship, ICT, retailing, structural change, competition, growth, R&D, Finland, productivity
JEL Classification:
  • H2: Public Economics / Taxation, Subsidies, and Revenue
  • I23: Health, Education, and Welfare / Education and Research Institutions / Higher Education and Research Institutions
  • J6: Labor and Demographic Economics / Mobility, Unemployment, and Vacancies
  • L63: Industrial Organization / Industry Studies: Manufacturing / Microelectronics; Computers; Communications Equipment
  • O3: Economic Development, Technological Change, and Growth / Technological Change; Research and Development; Intellectual Property Rights
  • O4: Economic Development, Technological Change, and Growth / Economic Growth and Aggregate Productivity