This paper explores the effects of outsourcing on employee well-being through the use of the Finnish linked employer-employee data. The direct negative effect of outsourcing is attributable to greater job destruction and worker outflow. In terms of perceived well-being, the winners in...

This paper studies how firms contribute to the productivity growth of an industry over their lifecycle. We present a decomposition method that allows us to condition the components of productivity growth on the age of production units. We find evidence for a prolonged positive exit effect that...

We assess Finland’s competitiveness in the light of various, mainly short-term indicators. It turns out that the weak export market performance over the last few years is linked to the deterioration of profitability of production in Finland. A better export and employment performance requires...

Radical innovations require risk-taking. However, it is hard to find an objective measure for innovation investments that would take riskiness into account. In this paper, we investigate how a simple measure of firms’ innovation investments, namely the employee share of managers and...

Workers have different abilities in research, development and innovation (R&D&I) activities. Firms have different “prospects for innovation”. Innovation is facilitated by matching innovators, i.e. workers that are specialized in R&D&I to firms with good prospects for innovation. Aggregate...

The bulk of innovation subsidies in Finland are allocated to firms in industries where the employment share of “innovators,” i.e., workers who are specialized in R&D&I, is very high. The average subsidy per employee is typically the highest among young firms. At the firm level, an increase...

In this study we analyse the development of business investments in Finland and in other countries of comparison on the basis of national accounts, survey data and a sector-level general equilibrium model. According to the results, the decline in investments in Finland is mainly explained by two...

We characterize increases and decreases in plant-product -level output sales in the Finnish manufacturing sector during years 2006 to 2015. We show that during the recession of 2008 to 2009, the intensity of variation in plant-product -level sales diminished, and it took several years until the...

There is a lack of comprehensive information on the quality of management in Finland as compared to other countries. Funded by the Strategic Research Council, the Skills, Education and the Future of Work research project has started filling this gap. As part of the project, an extensive survey...

In the report we analyse the reasons for the weakness of Finland’s economic performance over the past decade and assess the growth prospects in the coming 5 years. The weakness of Finland’s performance relative to comparative EU-countries since 2009 can largely be explained by the collapse...