An active industrial policy
Sustainable growth must be underpinned by an active industrial policy
The green transition and combating climate change are challenges for industries. Finland is an attractive investment target for industry, but we must also ensure that this continues.
Objectives
- A moderate trend in fuel and electricity prices must be maintained.
- Research and innovation must be supported, in particular by direct subsidies.
- New technologies such as small nuclear power stations and the hydrogen economy must be promoted through regulation, and through joint ventures between central government and the private sector where necessary.
- We must invest in expertise. The level of vocational training in particular must be improved with funding secured.
- The regulatory environment must be predictable to ensure security of investment (e.g. through a prior authorisation system).
Grounds
Besides payroll expenses, the costs of industry comprise the costs of energy, logistics, raw materials and components, and of investments and their financing. Finland is an attractive location for industrial investment, with scope for wage increases when these costs remain at a reasonable level compared to competitor countries.
The green transition and combating climate change are fostering reforms in many sectors. Public sector risk resilience and private sector capital and skills must be combined to ensure rapid development of new technologies. It must be possible to set up new state-owned companies to create new industries where necessary.
Through investment in research and innovation, we can ensure the regeneration of businesses operating in Finland and growing productivity in our national economy. RDI subsidies should favour the most effective approaches.
Examples of industrial plants that failed at an unfortunately late stage (such as the BASF plant in Harjavalta) have arisen in Finland in recent years. While strict regulation should be maintained, the licensing system should be improved through such measures as developing a system of prior authorisation in order to ensure legal certainty for operators and overall investment security.
Other goals of SAK related to industrial policy
- Support should be provided for a tourism sector buffeted by various crises.
- Transport investment must focus on cost-effectiveness, and funding must be secured for maintaining basic transport infrastructure.