In the globalized world economy the crucial issue is locational competition - where internationally competitive firms invest and locate their high value-added production. The policy challenge is to enhance firms' capabilities to create firm-specific competitive advantages linked to certain...

The report looks at investment activity in Finland by industries and types of investment, and makes international comparisons. Investment rate (fixed investment in relation to GDP) fell in Finland in the early 1990s from an internationally high level to the average West European rate. Among key...