Economic and Industrial Policy Transformations in Finland

Finland represents a good example of how knowledge can become the driving force in economic transformation. Finland tops various competitiveness rankings and has been listed number one in the OECD's PISA studies on young people's learning skills and educational attainment. This paper discusses the role that industrial policy has played in these developments, looking explicitly on recent shifts in policy thinking and implementation. We focus on the emergence of new industrial policies in the early 1990s, the main policy initiatives and measures, and present their broader organizational landscape. We conclude with an assessment of these policies and the future challenges.