To what extent does Finland’s regulatory landscape facilitate or discourage foreign investment? Which policy considerations can contribute to attracting new international investments to Finland and retaining existing ones? This presentation details the main findings in from an OECD report on The Impact of Regulation on International Investment in Finland. Find out more at https://www.oecd.org/investment/the-impact-of-regulation-on-international-investment-in-finland-b1bf8bee-en.htm

1. The Impact of Regulation
on International
Investment in Finland
MAIN FINDINGS
Francesca Spinelli
Head of the InternationalInvestmentStatistics Unit
InvestmentDivision, OECD
HIGH-LEVEL LAUNCH - 19 MAY 2021

2. • highly skilled workforce
• reliable & functional infrastructure
• stable political environment
• good-quality institutions
• thriving innovative landscape &
technological readiness
WhyinvestinFinland?

3. What foreign firms bring to
Finland

4. Yet Finland’s gap with other
Nordic-Baltic countries in
attracting FDI is widening
Inward FDI stocks as share of GDP
Finland
Denmark
Lithuania
Norway
Latvia
Sweden
Estonia
20 30 40 50 60 70 80 90
Per cent
2010 2019
Source:OE
C
DInternationalD
irectInvestm
entStatisticsdatabase(B
D
4).

5. Howdoesregulationaffectforeigninvestment
decisionsandbusinessoperationsinFinland?

6. 1.Complexadministrativeproceduresto
recruitforeigntalent&stringentlabour
marketconditionsaffectgrowthprospects
• The framework for
recruiting foreign talent is
challenging:
• Labour market tests
apply in most cases
• Long processingtimes
• Short initial duration of
residence permits
• Rigid labour market
conditions are among the
main challenges faced by
businesses in Finland

7. 1.Complexadministrativeproceduresto
recruitforeigntalent&stringentlabour
marketconditionsaffectgrowthprospects
Reduce the
number of
permit
categories
Speed up
processing
of residence
permits
Increase
the
duration of
the initial
permit
Strengthen
effortsto
retain
foreign
students
Continue
efforts to
improve
labour
market
flexibility
Facilitate
integration
of foreign
workers
Policy considerations

8. 2.Lengthyprocessesfornewoperations
andregulatoryuncertaintyaffect
businessentry&scale-uppossibilities
• Relatively long processing time to
register a company in Finland
• Limited access to online
registration
• Lengthy and costly permit
processing slows down investment
projects:
• Land-use permit
• Environmental permit
• Constructionpermit
• Sudden changes in regulation &
over-implementation of EU
directives add risks and increase
compliance costs

9. 01
02
03
04
Policy considerations
Expedite company registration& reduce
administrative burdens
Improve the digital operating
environment,building on recent initiatives
& scoped reforms
Streamline processing and cost of
operationalpermits
2.Lengthyprocessesfornewoperations
andregulatoryuncertaintyaffect
businessentry&scale-uppossibilities
Keep developingregulatory impactassessment&
increase scope of ex-post evaluationsof regulation

10. 3.MorecouldbedonetohelpFinland
exploititsfullpotentialasaninvestment
location
• High-concentration of FDI in the capital area: 59% of cross-
border M&A deals and 78% of greenfieldprojects went to the
Helsinki region
• Several business executives wished for a morewelcoming
environment – cultural factors might play a role
• There is room to increase Finland’s visibilityon the
internationalarena
• Foreign firms call for betterdialogue with policy makers

11. 3.MorecouldbedonetohelpFinland
exploititsfullpotentialasaninvestment
location
Policy considerations
• Improve visibility of cities outside the capital
• Increase the availability of regulatory information in
English
• Reinforce efforts to marketFinland as an attractive FDI
destination
• Strengthen the dialogue between the government and
businesses

12. Thank you / Paljon kiitoksia!
Contacts
Investment Regulatory Reviews Team
Francesca.Spinelli@oecd.org
Polina.Knutsson@oecd.org
Laura_Kuusela@welho.com
Further information
Full report & highlights (Fin/Eng)
https://oe.cd/3Er