Post on 08-May-2015
Enforcing the international growth –case Finpro
Riga 17.9.2013Kari HäyrinenPresident and CEO
Content
• Finnish economy and its challenges• What needs to be done• What could be Latvia’s challenges • Finpro’s role and activities in enforcing the growth
– Trade and internationalization– Foreign direct investments
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Features of Finland
• Totally open Eurozone economy
• Very dependent on exports
• Small domestic market
• High standard of living – with high cost structure
• Well educated work force
• Fastest aging population in Europe
• High in innovation and competiveness rankings
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Challenges for economic growth
• Exports mainly of investment goods or other b2b goods and services
• Main markets still in slow growth Europe with increasing competition
• Large multinationals represent a major part of exports – with limited or negative investments in Finland
• Geographic challenges for natural and easy internationalization
• SMEs need to internationalize in very early stage with limited exposure to global market opportunities
• Low FDI due to smaller domestic market compared to peers
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Kari’s thesis for Finland - 1
• Strategy needs to be built on natural or long term competitive advantages
1. Northern location 2. Water 3. Forests
4. Solid bedrock 5. Long border with Russia
6. Innovations through education
• Also the SMEs need to go to the emerging economies in Asia, Americas and even in Africa
• Relevant global business opportunities need to become visible to the SMEs and they need to get quickly to the value networks
• Achieved position at the ’home markets’ needs to be secured – Nordic countries and Baltic Sea region
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Kari’s thesis for Finland - 2
• New private sector and export oriented jobs will be coming from SMEs (mainly from M) and through FDI
• More global consumer goods need to be created for example by ‘born global’ start ups’
• Foreign companies will open the global marketing networks to local SMEs
• High value adding foreign investments come for competencies that are world-class and well- known
• All this needs focus, focus and focus (’picking the winners’)
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Possible challenges to Latvia
• Small economies that have developed fast are likely to lose their cost advantage before they have developed solid innovation ecosystem
• Small domestic market is typically a disadvantage for the businesses but can also be considered as the driving force for internationalization
• Larger companies will grow and invest more likely closer to the markets – are there enough SMEs having the will and the means to internationalize themselves
• How to differentiate amongst the peers to attract the much needed high value adding FDI
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Finpro is Finland’s official trade, internationalization and investment promotion organization
Over 65 offices in 48 countries
Founded in 1919 by Finnish companies
Over1400 assignments in 2012
370 professionals
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Access to future opportunities
We identify potential business opportunities for Finnish companies
We help the companies to enhance the innovativeness of their business development and accelerate the commercial success of the new solutions
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Speeding up internationalization
We boost our clients’ success with world class services based on our strong expertise on internationalization, industries and global markets.
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Breakthrough to right markets
Our global trade center network ensures the right services at the right time and place
Local expertise and connections ensure our clients’ successful foothold in the target markets
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Industry expertise in internationalization
LifeSciences
Software and digital media
Energy, environment and forest industry
Construction, logistics and manufacturing
Services
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AcquisitionCandidate Search
Market Monitor
Sales AcceleratorEntry Options Partner SearchInternationalGrowth Plan
Test Drive
Right Markets
Sales ChannelDevelopment Direct Sales
Establishing Company
Supplier Evaluation
Export PartnerGroups
Trend Pulse
ImprovingMarket Position
EstablishingPresence
Finpro Navigator - service package
Planning Market Entry
PreparingGrowth
Finpro offers expertise at every stage of internationalization
Industrial Services
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International programs operated by Finpro
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Benefits of foreign direct investment
• Stimulates economic growth through new jobs and possible export earnings
• Improves the functioning of markets
• Fills the gaps in capital markets
• Diversifies the economy and industries
• Increases international business know-how
• Brings in the global business networks and competencies
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Invest in services for international companies
• Production of market information
• Research about business opportunities
• Evaluation of market entry alternatives
• Networking in Finland
• Location services
• Consulting to get the business started
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Wind energy investments
Leading the cleantech sector
Growth in travel and tourism
Home base for Hi-Tech
Favorable miningenvironment
Ideal place fordatacenters
R&D and innovation strengths
Greenconstruction
Invest in Finland focus areas 2013
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Finpro’s Global Network
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Global Network – Finland and Europe
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Global Network – Americas
Global Network – Asia and Russia
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Global Network – Australia, Malaysia, Philippines and Singapore
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Global Network – Africa
Team Finland promotes external economic relations, the country's image abroad, internationalisation of enterprises, and investments to Finland.
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