Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/333984 
Year of Publication: 
2025
Series/Report no.: 
ETLA Report No. 164
Publisher: 
The Research Institute of the Finnish Economy (ETLA), Helsinki
Abstract: 
Finland's future prosperity hinges on intangible assets such as software, data, brands, and organizational capital. While research and development (R&D) is a central intangible asset, other types collectively hold greater significance. The growth trajectory of Finland's intangible investments stalled with the 2008-2009 financial crisis and resumed only after the COVID-19 pandemic. This "lost decade" partly explains Finland's sluggish economic and productivity performance. Innovation policy should broaden its focus beyond R&D to encompass other forms of intangible investment, as well as the adoption and diffusion of innovations. Policy should prioritize quality over quantity, encourage bold experimentation, and support scaling. This necessitates a shift towards equity financing and fostering skilled labor mobility. Mergers and acquisitions are vital for leveraging and disseminating intangible capital, but anti-competitive "killer acquisitions" are not in the national interest.
Subjects: 
Intangible capital
Investments
Productivity
Innovation policy
Economic growth
Spillovers
JEL: 
D24
E22
G32
O34
Document Type: 
Research Report

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