Doing Business with Finland

1
Doing Business with Finland
Brian McCleary
Regional Senior Commercial Officer
American Embassy
Helsinki, Finland
2
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.

3
Success Finlands 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 Finlands GDP.
• The ten biggest Finnish companies in the United
  States have a combined turnover of more than
  three times the value of Finlands total exports
  to the United States.

4
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 Europes premier educational
  system
  
• ranks number one in knowledge transfer between
  universities and companies
  
• is third globally in RD spending per capita
• ranks at the top of environmental
  sustainability and
  
• has been judged as the least corrupt among all
  countries.
  

5
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.

6
Vast U.S. Business Opportunities

• Finland is the only Nordic country to use the
  euro.
  
• As one of the worlds innovation leaders,
  Finland invests almost 4 of its GDP on RD.
  
• 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 RD,
  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.
  

7
Todays 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.

8
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.
  
•  

9
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
  RD 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.  
  

10
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.
  

11
Best Prospect Sector Energy

• Finlands 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.
• Finlands 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 Finlands National Technology
  Agency, TEKES.

12
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, Finlands complies with EU
  directives
  

13
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.
  

14
Following Up
Please contact us to take adva
ntage of U.S. and Finnish trade and investment
opportunities. The American Embassy in Helsinki
s Web site is www.usembassy.fi the Commercial
Sections is www.buyusa.gov/finland.
Thank you!