Ministeri Sasin puhe Software Industry -seminaarissa
4.12.2002

The potential of Finnish high-tech know-how on the international market

I would like to thank the organizers of this event for the opportunity to talk to you today. I also appreciate your organizing such an event at this point in time. It sends a clear message to all of us who care about the future of Finnish information technology: now is not the time for self-pity or for hiding in a corner. On the contrary: It is the best time to identify the success factors that will take us ahead of the race tomorrow.

By all accounts, the future is ours. We here in Finland seem to have a talent for adopting and developing new technical solutions to problems that most other people have not even realized are problems. This is a good thing. Looking around, we can see that networking, interaction, globalization and global competition are major factors in change. We can also note that the special features of the present moment are that the importance of information and expertise as production factors is increasing, working life is changing, technology is advancing rapidly and we are becoming more and more dependent on it. This is surely a transition with no direct historical precedent. But we do know that this transition is affecting how we earn a living, how we work, how we communicate, how we express ourselves, how we behave as consumers and how we spend our leisure time. The social impact of this change has been compared to the beginning of industrialization and the advent of electricity.

Against this background, a strong technological orientation is good. But it is not enough. Trade is something that we humans have been involved in one way or another ever since we came down from the trees. And possibly even before. There is no end of studies, reports and textbooks on sales, marketing and business. We do not need to reinvent the wheel, because the world is full of them. In fact, there is so much information available that the essential tends to be drowned out by the irrelevant. The main point is, how can we continue to do those things well that we have been doing for thousands of years, and how can we improve on them?

Finland has the best information society tools in the world. Despite this, trade and industry have not exploited these to the full, with the possible exception of the communications sector, banks and insurance companies. There is still a lot of ground to cover. And yet the domestic market for Finnish technology is limited. It can only sustain a limited number of small or medium-sized enterprises, or a handful of major players. This is not a sufficient basis for building a progressive information technology sector capable of responding actively to the challenges of the changing international business environment.

We must start to seriously think about how to act in Europe so that we would not just share welfare but, above all, create it.

Work life must be made more flexible. No support should be given to old-fashioned industry but to invest in research and product development. All in all, attitudes and income distribution systems must be changed to support work and spirit of enterprise.

The future of Finnish technology lies in internationalization. Our strong high-tech know-how is a solid foundation upon which we should construct our international approach, bit by bit, and with determination and confidence. It is a great challenge, but a challenge that companies in this sector must face, and indeed have already begun to face.

Facing the challenge means that products and services should be designed from the very first to be suitable for the mainstream international market, or at least in a way that allows them to be cost-effectively adapted. Products must be tested in advance in a variety of technological environments, because the first thing we will encounter out there is a variety of proprietary solutions that our products have to adapt to. Products must be easy to maintain and complement, mainly using Finland as a base if at all possible. The innovations for which legal protection must be sought well before the first rollout have to be identified at the product development stage.

It is thus obvious that technology companies are at the forefront of internationalization. But what should be done elsewhere in our information society to enable this front line to succeed?

I have outlined two points to answer this question, the first addressing the aim of the information society and the other addressing the content of our national information society policy. Both points have long-term impact on the survival of technology companies seeking internationalization.

My first point is that the information society is a theme that penetrates all sectors of society. Finland has the best information society tools in the world. As I said earlier, though, not even Finnish trade and industry have exploited these fully, let alone the public administration. It is my view that the goal of information society policy is to employ information technology and communications services everywhere in society to promote the welfare of citizens and the productivity and competitiveness of both the private and the public sector.

My second point is that information society policy promoting welfare and competitiveness requires the participation of all actors. Ordinary people and the private sector are in the most important position here. Future trends will depend specifically on the needs, expertise and choices of individuals and businesses. In a market economy, these decisions are not for government to make.

I feel that the most important duty of any government is to provide a basis on which individuals and businesses can operate. Public investment in human expertise lays the groundwork for good information society development. This investment covers education, research and development, and the promotion of innovation. Government also creates a favourable environment and ground rules for the provision and use of information-society services. A healthy business environment ensures the provision of services that are mainly commercial, ensuring - through competition - that there is a wide range of high-quality affordable services on the market. The public sector also sets an example as a provider and user of information-society services, thereby boosting developments in the private sector. At the same time, the public sector is improving the services it provides for the public.

Communications and technology policy plays a vitally important role in information society policy. Information society services are used through communications networks and technology. Communications networks and services are absolutely vital to the information society. Finnish communications and technology policy has been successful: our achievements in this sector are perhaps more impressive than in any other sector of social policy. But we must not think this is enough. We must use communications and technology policy to ensure that our communications networks and technologies remain at the international cutting edge, that our networks are reliable and capable, that there is access to these networks throughout the country, and that technological applications find their way to end users.

Network infrastructure and technological applications must be allowed to develop on a commercial basis without government directives or economic intervention. The integration of communications networks and technologies that has occurred must be taken into account in content regulation, too. This regulation must encourage the emergence of new earnings models. Regulation must promote the provision and use of content production services and safeguard freedom of speech and variety of content. By improving information security and protection of privacy, we can ensure that the public, businesses and government all have trust in the usability and security of information-society services.

It is important for the future of technological expertise to make the right choices in education policy. Our guideline in education policy is that every citizen must be aware of the value of the information society and be competent in the basic knowledge and skills required of a citizen in an information society. We also need professionals and top experts. In the information technology industry alone, the demand for professionals will double in the course of this decade. The most important resource that we Finns have is between our ears. Strong investments in Finnish human resources must continue. A supply of labour meeting the needs of the information society must be safeguarded, and shortcomings must be corrected - as, for instance, in the vocational training of content producers. The international dimension must be enhanced at all levels of education. Mathematical and technical subjects must be well provided for. The education system must allow for a flexible study process and completion of a degree alongside work. Efficient education policy also requires continuous investment in information technology and communications equipment for schools, and sufficiently fast connections, too.

In science policy, we must develop the international dimension in universities to meet the needs of the information society and thus safeguard the emergence of excellence. We might set ourselves the goal of creating a high-grade university competitive on the European level, investing heavily in post-graduate studies primarily in English. Interaction between universities and business must be increased, and science parks supported.

Public resources committed to research and development must not be allowed to dwindle; rather, they must be increased. A decade ago, this investment was what launched Finland on its path to success. The focus of research and development should be on information society services, anticipating future trends. Research and development must proceed in close cooperation with business.

In trade and industry policy, we must favour the development of small and medium-sized enterprises and support their use of information technology and communications services. Advancement of internationalization in the communications and technology sector, and the promotion of exports, should be continued actively. This is a key issue.

The supply of and demand for information-society services will ensure sustainable growth in the economy. In economic policy, we must take into account the impact of widespread use of information-society services on the economy as a whole. The economic structural change resulting from information society development may reduce the need for labour in certain sectors, but it will increase demand elsewhere. At the same time, faster economic growth will allow for more productive allocation of social resources. Finland must be a competitive environment if it is to ensure the availability of competent labour. Tax policy should be geared to keeping our top people in the country and to encouraging foreign experts to come to and settle in Finland. This will mean reducing income tax and ancillary labour costs. Businesses in the information technology and communications cluster, and the technology itself, should not be burdened with extra taxes and fees.

Now is the time for us Finns to consolidate our foundations, to identify the change factors in our environment, to face the necessary challenges with an open mind and to discover our deserved bright future on the international market.

Takaisin