Since joining the European Union in 1995, Finland with a population of 5.3 million, once viewed as a remote northern outpost, has become a strong pole of attraction for international business. A Nordic country, Finland is an EU member state and shares a long border with Russia. Finland has a unique position as the center of a rapidly developing marketplace formed by northwestern Russia, Scandinavia, and the Baltic republics, with over 80 million prospective consumers. Finland was also the first Nordic EU chairman country in 1999 and was the only Nordic country to replace its national currency Finnmark with Euro in the beginning of 2002.
Nearly everyone has probably heard something about the mobile revolution in Finland. The latest studies show that Finland's mobile communications standard-bearer, Nokia, is one of the world's most valuable, and prominent brands. However, Finnish high-tech is much more than just mobile phones and telecommunications technology - high-tech has also been an important factor in driving the impressive growth in Finland's GDP typical of recent years.
According to the Global Competitiveness Report, Finland is the most competitive economy in the world. Besides holding a leading position in Information Technology, Finland has a strong paper and shipbuilding industry. Every fourth cruise line ship in the world is made in Finland.
The United States is Finland's second most important trading partner outside of Europe. With 3.4 percent share of imports, the United States is Finland's eight largest supplier after Russia, Germany, Sweden, China, The United Kingdom, The Netherlands, and France. Finland's business attitude towards the United States is very positive. Business relations between Finnish and U.S. companies are often based on many years of mutual experience. Finland's import climate is open and receptive to U.S. products and investments. There are no significant trade barriers or regulations that U.S. firms need to take into consideration.
A Test Market for New IT Technologies - In a decade, Finland has joined the group of leading producers and users of information and communications technologies. At the same time its entire economic and export structure has fundamentally changed. Today Finland has one of the highest Internet and mobile phone penetration rates in the world. Finland is also described as the most networked country in the world. Finland was also the first country in Europe to grant 3rd Generation (3G) mobile phone licenses (March 1999) and one of the world leaders in Internet banking. Finland is considered as a pioneering adapter and an important research center of new technologies. International companies (e.g., ICL, IBM, Siemens, Hewlett Packard, and Ericsson) have set up research units in Finland, increased their cooperation with Finnish firms or acquired small companies in the sector.
Nokia - A Big Company in a Small Country - Nokia, headquartered in Finland has grown to become a multi-national giant in a small country. Its contribution to the Finnish economy is significant. Nokia's exports alone are larger than the total paper industry - the sector that previously dominated the Finnish economy. Nokia is, of course, the mayor player in the ICT cluster. But it is not alone. Altogether there are some 3000 small and medium-sized companies in the cluster. Some 300 are direct first-tier suppliers to Nokia, known as the Nokia network.
Other Industry Sectors for U.S. Companies to Look For - The United States continues to be the main long-haul destination for Finns. In 2006, over 95,000 Finns traveled to the United States. New York, Florida, and California are the best prospects for the U.S. travel industry. New York City, Chicago, Boston, Los Angeles, and Atlanta are the most important destinations for Finnish business people.
According to the Finnish Bioindustries, Finland's biotechnology industry ranks seventh in Europe. Characteristic of a Finnish biotechnology company is that it is closely connected to universities, biocenters, and technology centers. Cooperation is highly intensive and thus far has resulted in some 200 patented inventions. The main areas of strength are pharmaceuticals, biomaterials, diagnostics, and industrial enzymes.
International research cooperation and participation in joint research projects has made Finnish know-how well known and increased the interest of European and American companies and investors in Finnish biotechnology research. A substantial number of new biotechnology companies are collaborating with large international companies. Also international capital investors have shown rapidly growing interest in Finnish biotechnology companies. There are also excellent opportunities for U.S. venture capital companies to engage in joint ventures with Finnish biotechnology companies.
The United States continues to be the most important external supplier of medical equipment in Finland. High-quality and technically sophisticated medical equipment has the best market potential in Finland. Especially equipment that increases efficiency and reduces occupancy rates in hospitals is in demand.
Finland, a Gateway to Russia and the Baltic States - Finland's gateway position between east and west was also emphasized when Finland became an EU member and strengthened during Finland's EU Presidency (in 1999 and again in July-December 2006). Finland is a vital transit channel to the Russian markets. Over 40 percent of the EU's road shipments to Russia are shipped from Finland or arrive via Finland. Finns know how to do business in Russia and the Baltic States. Finland's excellent infrastructure and its geographical proximity to Russia and the Baltic countries, especially Estonia, give Finland an advantage as a gateway to the east. Many foreign and U.S. companies are using Finland as a base for opening their transportation and marketing activities to the former Soviet Union.
