# Presentation: 714904

## Doing Business with Finland

**Doing Business with Finland**

**Brian McCleary                             **
**Regional Senior Commercial Officer**
**American Embassy**
**Helsinki, Finland**

## Vast Potential for Increased Business Partnerships

-   There is _enormous_ untapped potential for trade and investment between the United States and Finland.
-   U.S.-Finnish commercial links are already strong; there is more than
- $7 billion in annual two-way trade.
-   Finland has a highly developed economy known for its globally successful companies (e.g., Nokia, Stora Enso, Neste Oil, UPM, Kesko,
- Sampo, Wartsila, and Konecranes).
-   “Sisu,” a Finnish word, means courage, strength, and the will to endure and finish a task; sisu sustained Finns when they fought to defend their country, and it also shows through in business today.

## Success:  Finland’s  Economic Forecast

**Success:  Finland’s **** Economic Forecast**

-   Finland has one of the best performing economies in the EU and Europe; its GDP growth was a robust 5.5% in 2006.
-   It has an industrial economy based on abundant forest resources, capital investments, and high technology.
-   The Finnish economy has made huge strides since the deep recession of the early 1990s.
-   Finland has outperformed its European partners in terms of economic growth and public finance.
-   Exports constitute 31% of Finland’s GDP.
-   The ten biggest Finnish companies in the United States have a combined turnover of more than three times the value of Finland’s total exports to the United States.

## A Thriving Business Environment

- According to recent reports from diverse sources, Finland shines because it:
-   has one of the most innovative and competitive economies in the world;
-   has created Europe’s premier educational system;
-   ranks number one in knowledge transfer between universities and companies;
-   is third globally in R&D spending per capita;
-   ranks at the top of environmental sustainability; and
-   has been judged as the least corrupt among all countries.

## Vast U.S. Business Opportunities

- Why should American companies do business in Finland?  The answer is simple:  it makes good business sense.
-   Finland provides a valuable market opportunity – it is a unique gateway to a rapidly growing area formed by Scandinavia, the Baltic states, and northwestern Russia, giving you access to more than 80 million prospective customers.
-   The Finnish workforce is highly trained and proficient in foreign languages, including English.
-   Finland has strong, modern business infrastructure that is an inducement to investment and commerce.
-   Finland is a safe, well-run country.

## Vast U.S. Business Opportunities

-   Finland is the only Nordic country to use the euro.
-   As one of the world’s innovation leaders, Finland invests almost 4% of its GDP on R&D.
-   Finland has a solid business ethic, and transactions are transparent.
-   The United States and Finland share many common business practices.
-   They also share a keen interest in R&D, science, and creativity, which spur cutting-edge technologies.
-   Finland was the first European country to grant women the right to vote; 12 out of 20 ministers in the new Finnish government are women.
- In sum, there is an _excellent_ business and cultural fit between American and Finnish values.

## Today’s Key Industrial Sectors

- Finland, said to have transformed its economic base from rubber and herring to high technology, has a wide range of industrial sectors:
-   metal (including electronics and electrical equipment);
-   engineering;
-   forest products;
-   chemicals;
-   shipbuilding;
-   information and communications technology;
-   environmental technologies;
-   textiles; and
-   travel and tourism.

## Best Prospect Sector:  Information and Communications Technology

-   The telecommunications market has been fully liberalized.
-   Finland was among the first to open its telecommunications market.
-   It has the lowest mobile tariffs among OECD countries.
-   In 2006, 100% of households had at least one mobile phone.
-   It is one of the world's leading countries in electronic banking.
-   It provides an excellent test base for new U.S. information technology.
-   The United States is the number one supplier of standard, non-customized application software to Finland.
-   Finland is now developing customized software products and is looking for U.S. partners.
-   Information security business opportunities are also in demand.

## Best Prospect Sector:  Biotechnology

-   Finland is a biotechnology-intensive country; almost 7% of all the biotech companies (about 140) in the 27-member-country EU are located in Finland.
-   Finnish biotech companies historically are closely connected to universities, biocenters, and technology centers.
-   Among the areas of biotech strength are:  pharmaceuticals, biomaterials, diagnostics, and enzymes.
-   About 30% of all Finnish biotech companies have R&D partners in the United States.
-   There are first-rate opportunities for strategic alliances with U.S. businesses and venture capital firms.
-   Finnish biotech firms seek to enhance their marketing skills, which means there are further possibilities for cooperation with U.S. firms.

## Best Prospect Sector:  Environmental Technologies

-   There is a dynamic environmental business sector in Finland:  at present, there are 300 envirotech firms.
-   Their areas of activity focus on:  air pollution control, air protection, waste management, recycling, renewable energy, conservation, soil protection, water purification, noise abatement, and research.
-   There is strong demand for air pollution control equipment in light of environmental concerns in neighboring countries (e.g., Russia and the Baltic states).
-   Finland has a national action plan with the goal of becoming the leader in environmental business by 2012.
-   There are business opportunities in technologies to detect air and water pollution and to purify air in industries and municipal energy and power plants.
-   Another promising area is in equipment to remove nitrogen oxide emissions, reduce dust, and recycle/recover municipal waste.

## Best Prospect Sector:  Energy

-   Finland’s energy needs are high, due to its energy-intensive industry, cold climate, and long distances.** **
-   Finland does not have its own fossil fuels – coal, oil or natural gas – but does have biofuels, rich reserves of peat, and extensive wood resources.
-   Finland’s energy-intensive industries are major players and have spurred development of efficient energy systems.
-   Four nuclear power plants already exist and a fifth is being built; a sixth plant is under discussion.
-   Finland aims to increase its use of renewable energy significantly by 2025 from the current 25%.
-   The target for electricity production from renewable energy sources is 32% of gross electricity consumption in 2010.
-   The Finnish market offers business opportunities in innovative renewable energy source equipment.  Possibilities also exist in projects funded by Finland’s National Technology Agency, TEKES.

## Best Prospect Sector:  Medical Equipment

-   Finland has universal health coverage and is divided into 21 hospital districts.
-   Public (subsidized) hospitals are owned by municipalities; 10% of hospitals are private.
-   The United States is the most important external supplier of medical equipment in Finland, with 26% of the market.
-   High quality and technically sophisticated medical equipment such as patient monitoring systems, mini invasive surgery (MIS) equipment, magnetic resonance imaging (MRI) equipment have the best market potential in Finland.
-   Finnish hospitals are eager to try out new technology in modern treatment methods.
-   As an EU member, Finland’s complies with EU directives

## What American Business Offers

- What does American business offer to Finland?
-   The United States has the largest and most technologically powerful economy in the world.
-   American firms are at the forefront of technology development in areas such as information and communications, software, health, power generation, transportation, defense, and services.
-   Doing business in America is also highly attractive.  Last year, foreign nationals bought nearly $100 billion in U.S. equities and $500 billion in private sector bonds; they also took ownership stakes of $180 billion in American companies.
-   There will always be plenty of investment opportunities for Finnish firms throughout the United States.

## Following Up

- Please contact us to take advantage of U.S. and Finnish trade and investment opportunities.
- The American Embassy in Helsinki’s Web site is “www.usembassy.fi”; the Commercial Section’s is “www.buyusa.gov/finland.”
- Thank you!