The Finnish society is well-adjusted to balance work and family life.

Finns are ambitious and tend to work a lot, but they value their family life to the fullest extent. Luckily, the Finnish way of living allows combining these two: we can provide one of the best maternity and paternity leave opportunities, have excellent daycare services and have flexible working conditions that fit different situations in life. Thanks to public child care services and legal right to work shorter days, also women can have a career without compromising family life.

Although the personal taxation is relatively high, we get in exchange good value in healthcare, education, welfare and the preservation of life quality.

The Finnish daycare system helps improve the overall quality of life for the whole family.

Finnish daycare facilities can offer their services between 6.30 in the morning and 17.30 in the evening, excluding public holidays and the summer holiday period. There are over 300 daycare facilities provided by the City of Helsinki, and nearly 60 private facilities. Foreign language daycare can be found in Helsinki in the following languages: English, Spanish, French, Swedish, German, and Russian.

Each daycare facility has its own unique outdoor play area and the daycare centres often arrange trips to local amenities such as children’s theatres, museums or local parks. Food for the children is provided by the municipality, and the menus are available on the respective municipality websites, so parents can see how their children are fed in daycare. Beds are provided by the daycare facility for children who still have a nap.

The children are well taken care of, and during the daytime parents can fully concentrate on their work and save the evening for quality family time.

The public and private sectors in Finland are working together to create unique systems of cooperative businesses. These clusters in specific industries allow a great deal of synergy and productivity that would not be possible working alone.

It is not enough to simply have a good business idea. One needs to have the labour force, the suppliers, the distribution network, the venture capital, a network in the industry and even encouragement from officials.

Each company has unique needs: it can vary from venture capital to business know-how or dependable network of suppliers. To meet this demand Finland has encouraged the development of business ecosystems. Industries, sectors, clusters and microclusters of companies are arranged in networks to help companies meet their needs.

The source of business success is no longer based on tangible products, but increasingly dependent on technology and knowledge. The current trend has helped the creation of a number of business clusters in Helsinki. The information technology, life sciences, logistics and environmental industries are some of the best developed.

The information technology cluster is one of Finland’s greatest successes. There are over 600 software companies in Helsinki alone. For the future, great hopes are being placed in the environmental industry. A number of domestic and foreign companies are focusing on biofuels . To meet the demands for environmentally cleaner fuels, a number of firms are basing themselves in Finland, and the industry is expected to grow dramatically in the future.

One of the great success stories in Finland is the telecommunication industry. This industry coalesced around Nokia. Forty years ago Nokia was just beginning to experiment in the electronics industry and now is the world’s most successful manufacturer of mobile phones. It did not succeed on its own, however. The entire industry grew and prospered with it.

The telecommunication ecosystem developed around Nokia in three forms. One was the traditional cooperation between Nokia and suppliers. These subcontractors mushroomed up to provide parts or components, or even whole processes to Nokia. The second form involves cooperation in the creation of new markets for wireless technology. The third was the use of products and technology in the marketplace.

Partnerships and cooperation with Nokia include the integration of internet and digital television, the Symbian operating system, Bluetooth, other wireless systems, secure payment solutions and a variety of standardisations for technology in the industry.

“Nokia took a new approach in building alliances and partnerships.”, wrote Martti Häikiö in Nokia – The Inside Story. “The aim in its core business, mobile phones and networks, was to rationalize and increase efficiency. Its resources were focussed on areas and operations that would add most value. Already a world leader, Nokia aimed to continue being a pioneer and to make the markets.”

Today this industry continues to thrive. In an area in which technology changes so quickly and growth is so rapid, close cooperation in the industry is a necessity. Many companies find a specific niche to fill in the telecommunications sector. Alone this niche would not be able to survive, but taken as part of a coherent whole this area may be an invaluable piece of the industry.

In recent years, enormous investments have been made in Finland’s infrastructure. From expanding the Helsinki Airport to a new cargo harbour to expanded fibre optic networks, Helsinki offers one of the world’s best infrastructures.

Helsinki can truly be very proud of its infrastructure: Transport by vehicle, rail, aircraft and ship is easy and efficient. The technology infrastructure, as measured by fibre optic cables or wireless connectivity is one of the best in Europe. Office space is increasing and it is much cheaper than in many locations in Western Europe.

Efficient road and rail networks are used by a large industry of freight forwarders and trucking companies. The well-functioning transportation system, combined with the fact that Finland uses the same rail gauge as Russia, makes Finland an excellent transhipment point for Russian trade.

The Helsinki Airport is within a nine hour flight from both New York and Beijing, placing it in the perfect transit point for East–West traffic.

Almost the entire population has access to fibre optic networks. Virtually every commercial space in Helsinki has broadband connections. Wireless communication is also very advanced, with 3G data and phone use very high. The telecommunications environment is one of the most advanced in Europe.

Construction of commercial office space in Helsinki has increased rapidly. Although demand is increasing, rents remain lower than the European average. New centres are being placed in a number of locations.

To maintain a long term reliable source of energy, Finland was the first nation in Europe to begin constructing a nuclear power plant in recent years. Plans are underway to continue to expand the use of nuclear power.

Finnair is taking advantage of the excellent aviation infrastructure available at the Helsinki Airport. The company decided there was no need to resign itself as being a simple regional carrier. Instead, it seized the opportunity to use the excellent location and facilities of the airport to remake itself as the gateway to Asia.

The geographical location of Helsinki coupled with the facilities available for air travel and transport make Helsinki the perfect connection point for trade and travel between Europe and Asia. This has allowed Finnair to seize the excellent opportunity to act as the carrier of choice between the East and West.

Helsinki is the closest European capital to Asia, and the renewed airport with its growth potential is a huge asset. Heavy investments have been made to expand the international terminal, add a new baggage handling centre, improve services, open new restaurants and shops, as well as install energy saving air conditioning and electricity systems. More parking, office space and a new hotel are also being constructed. The work will be finished by the end of 2011.

26% corporation tax is paid on annual net profits.

For businesses, normal taxes consist of a corporation tax (profit tax) and a real estate tax. Other taxes consist of an assets transfer tax (formerly stamp duty) and a withholding tax. All major international consulting companies providing taxation planning have offices in Helsinki.

For individuals, there is a progressive income tax as well as inheritance taxes and net wealth taxes. Foreign personnel, if in Finland for longer than six months, also pay the 35% income tax , when their monthly salary exceeds EUR 5,882. This ensures that all residents continue to receive top-level public health care, free schooling for children, and other valuable public services.

Teachers and researchers from certain countries may be completely exempt from income/withholding tax, especially when invited by a government organisation, university, or scientific research institute.

A social security payment of approximately 22% of gross salary is payable, even by a foreign employer. Social security provides, for instance, employment services, child day care services and services for the elderly.

Protecting Intellectual Property in Finland is relatively easy and effective. Public funding instruments provide flexible negotiation and agreement procedures. Helsinki provides full services on IP issues. Universities have established their own licensing companies in order to commercialise public research. This, in turn, provides better possibilities for interaction in joint R&D&I programmes.

Starting in 2003 Finland has taken concrete steps to reduce the tax burden of both individuals and corporations. Realizing that in today’s global marketplace that the country needs to compete against lower cost locales, the government has systematically reduced taxes.

One of the first goals was to encourage businesses and entrepreneurship. For this, corporate taxes were slashed by three percentage points in 2005. At the same time the capital gains tax rate was cut by one percent.

In 2006 cuts were made across every tax bracket for individuals. The decreases varied between one and one and a half percent in each bracket. At the same time the wealth tax, a remnant of the earlier socialistic era, was completely abolished.

The tax burden was further reduced in 2007, with tax rates falling between one and a half percentage points across all personal income tax brackets. For 2008 the trend continued. Half a percent cuts were placed across the board for personal income taxes.

Finland has been in the pleasant position of running a budget surplus for several years now, and the booming economy has allowed it to lower taxes, maintain the budget surplus and keep the traditional social welfare network in place.

Other reforms have also taken place. The taxes placed on dividends has been lowered and reformed. Home ownership has been encouraged by favourable tax rules. Saving for retirement in voluntary pensions has also been promoted by tax deductions.

Far-reaching reforms to maintain the strong public finances have also been taken. Some retirement rules have been changed to encourage workers to remain at their jobs longer to strengthen the workforce and relieve the burden of a non-productive population group.

A number of organisations offer a wide range of services to support entrepreneurs in Finland. This includes legal advice, financing, recruiting and even help finding a location.

For an entrepreneur seeking to set up a new operation or acquire an existing one, Finland offers a great deal of support services. The Finnish government has taken a proactive approach to making entrepreneurship easier and has encouraged independent organisations to provide advice and support.

Expert advisory services are provided to current and potential entrepreneurs by Employment and Economic Development Centres (TE Centres), regional business services, New Business Centres, business incubators and municipal business development services.

Invest in Finland and the Finnish Venture Capital Association can act as networks to help with financing or other services. Enterprise Finland is a service funded by the Finnish government to act as a source of information for both foreigners and residents and is one of the best places to start researching.

The soft landing centre operated by Technopolis provides services for Finnish companies aiming at international markets as well as international companies seeking to establish operations in Finland. The services of the International Centre are tailored to meet the individual needs of clients. It may include training, coaching or consulting. Many companies also locate themselves at Technopolis facilities.

Purchasing an existing operation or establishing a new one is hard work. Luckily, a wealth of resources is available to encourage foreign investors and help them succeed. Long term relationships are often established between investors and service providers to secure the long term success of all parties.

185 new foreign companies located in Finland in year 2008. There was a slight decrease in the number in comparison to the record-braking year 2007 when over 300 new companies located in Finland. The data released by Invest in Finland shows that Swedes remains the largest source of foreign direct investment in Finland.

Finland is a unique Western country with its long historical ties to the East. It is well suited to profit from the situation to its fullest.

Finland has a long history of being influenced from the West and the East. In prehistoric times, tribes from both directions migrated to Finland. The Estonian neighbours to the south even speak a language related to Finnish. Later on, Finland was politically joined to Sweden and then Russia. Now Finland is able to benefit from its historical ties with both markets.

Finland is firmly established in the European Union. It is the only  one of the Nordic countries to use the euro, the majority of its trade occurs with western nations and most of its foreign direct investment comes from them.

Nevertheless, Finland has managed to exploit its historical ties with Russia as well. It remains a major transit point for goods passing from the east to the west. Likewise, it is acting as a bridge for the west to deal with Russia and Asia. One of the best examples of this is Finnair airline’s strategy to be the main long haul carrier between Western Europe and the Far East.

Situated between two different markets, Finland has managed to focus outwards and build a diverse economy: Forestry companies benefit from cooperation with Russian forestry and the maritime companies take advantage of Finland’s position by the Baltic Sea. A great deal of trade and investment occur between Finland and the Baltic Region. Technology companies, in turn, are expanding to global markets.

This outward focus is necessary to succeed in today’s world because of the small Finnish domestic market. Luckily Finns have managed to grow their economy globally.

Finland has been ranked with the 19th highest level of economic freedom in the world, according to a recent study. The study was published by the Fraser Institute, a libertarian think tank based in Canada. Economic Freedom of the World measures forty-two statistics in five broad categories: size of government, legal structure, access to sound money, freedom to trade and regulations. As it takes a great deal of time for data to be collected and interpreted, this years study concerns the year 2008.*)

Excellent scores were awarded to Finland in several categories. The areas of government enterprises and investments, military interference, integrity of the legal system, freedom to own foreign currency, black market exchange rates, bank ownership, private sector credit and interest rate controls were all given a perfect 10 out of 10 by the institute.

Remarkable improvements have been made by Finland in entrepreneurship. In the business regulation category, the sub-sections of starting a business, bribery and licensing restrictions all received almost perfect scores. The costs of bureaucracy remain the weakest area of business regulations.

Since 1980, Finland has shown slow but significant improvement in economic freedom according to the study. The most impressive improvements have come in access to sound money and legal structures.

Finland has reorganised itself in order to better fit into the European Union and to compete in the globalised world. Although it has been a long process, it is certain that the fruits of the work are now being enjoyed

*) Economic Freedom of the World: 2010 Annual Report

Finland ranks in the top three globally in R&D&I spending per capita (WEF 2006).

4.5% of total government spending in Finland is on  Research, Development and Innovation. Helsinki receives over 40% of all investment in research and product development by Finnish companies.

Thus creativity and innovation are the cornerstones of business in Helsinki. Users, companies, research institutions and universities, as well as public institutions join together to form problem-solving communities. Direct government support through various funding institutions powers this cooperation. National funding of research and innovation is shaping Helsinki as a nationally and internationally important development platform environment. The strategic focus is to promote technology transfer and cooperation between universities and companies. 70% of companies with R&D&I activities cooperate with universities and universities of applied sciences.

In order for a small country to compete against larger nations in an increasingly globalised economy, it is necessary to find an effective approach. Finland has found out that focusing on knowledge-intensive industries and technologies is its way to success.

Finland has focused heavily on innovation and development in a number of industries, including forestry, chemicals, metals, information technology, biotechnology and environmental technology. Finnish innovation in information technologies and the telecommunications sector is well known, but this innovation is expanding into other fields.

The Finnish Funding Agency for Technology and Innovation Tekes is now forming five strategic centres to create a more efficient framework for collaboration between companies, universities, research organisations and sources of funding. These are to include energy and the environment, metals and mechanical engineering, forestry, health and information technology.

Other organisations focus exclusively on the high technology sectors. Technopolis is the largest chain of science and technology parks in Finland, which  alone generates over 100 new start-up companies a year. Otaniemi is a technology hub that features a unique mix of professionals, students, companies and organisations dedicated to research, academia and entrepreneurship. Delightfully students are being very active in the field: for example the students of Aalto University have founded an independent community Aalto Entrepreneurship Society, aiming at high-tech, high-growth, scalable entrepreneurship and a tight startup community.With the highest proportion of researches to the total work force of any OECD country, Finland has invested heavily in its innovation culture. This has caught the attention of several multinationals who have decided to conduct their research and development in Finland. These corporations include GlaxoSmithKline from Britain and Ciba Specialty Chemicals from Switzerland.

Productivity (GDP per working person) is a lot higher in Helsinki than in many other favoured European locations.

Helsinki is consistently in the Top 10 for productivity in Europe, spending heavily on education, training and research – investment that pays dividends by delivering one of the best-educated and trained workforces in the world.

Helsinki has 9 universities and 8 universities of applied sciences providing research resources. In recent years, over 13%, of higher education research funding came from foreign companies. Lately, the trend has been towards greater autonomy for the universities, making them proactive and eager to cooperate with business.

Qualified engineers and other professionals with university degrees in various fields populate every area of business. The knowledge and skills of Finnish students in science, mathematics and reading are of the highest order, and the availability of a highly educated workforce in knowledge intensive research areas is high. Costs of R&D personnel in Finland are relatively inexpensive compared to many European countries. The reason for this is mostly the generally low level of wages compared to other developed economies.

The Finnish labour market system has high trade union density and long-term collective bargaining coverage. 90% of employees are covered by collective agreements, which make the work environment predictable.

The next generation of Finnish professionals, now in school, will continue to keep Helsinki at the forefront of the new economies. In secondary education, Finland ranked as one of the top-performing country on the latest PISA science scale.

Finland’s superb education system has given it one of the best educated workforces in the world. Tuition, books and even lunches are provided for free to students to encourage them to become skilled workers. Coupled with strong societal respect and value for education, this has made Finland’s workforce one of the best suited in the world to thrive in the information age.

The education system does not just produce good employees, it also keeps them. Finland was ranked 10th in the world by the World Economic Forum for brain drain. Once educated, workers tend to stay in Finland instead of migrating to find greener grass abroad.

Instead of losing educated employees, Finland tends to gain them from around the world. Some companies such as Nokia have become so internationalised that they have chosen English as their official language. This doesn’t raise any problems for Native Finnish workers, who are usually fluent in English.

The strength of Finland’s workforce in the information technology industries has given it many advantages. The association for engineers boasts over 70,000 members.

Finland has become the base for a number of international companies taking advantage of a highly educated workforce steeped in the traditional Finnish work ethic. Although the high-tech.

Over a third of Helsinki inhabitants have a higher-level education. Meanwhile, Finnish students are consistently ranked amongst the smartest on the planet. In addition, we have the work ethics and trans-sectoral skills needed to succeed in knowledge-intensive businesses in a global economy. Supported by an unmatched, modern infrastructure, it’s no wonder Finns are constantly ranked as one of the world’s most productive workforces.

Helsinki is packed with highly-educated professionals: 38% of its inhabitants possess a university-level education, many of them products of one of Helsinki’s 17 universities and universities of applied sciences.

According to the OECD’s Programme for International Student Assessment (PISA), Finnish 15- year-olds once again came out way ahead of the pack. In the most recent test, Finland was ranked second, just after South Korea. Not surprising that the IMD World Competitiveness Yearbook rates Finland as having Europe’s top educational system.

We employ a very high work ethic, which makes us straightforward, solutions-orientated and very productive. English is widely spoken – as are many other languages – and many companies have English as their official language. We are advanced users of technology and are always curious about the next big thing. We are also considered creative thinkers, which helps explain why we have built our economy around knowledge intensive businesses in this global economy.

Helsinki’s top-notch workforce is supported by effective infrastructure. Our logistics and transportation systems move people and freight efficiently by land, sea and air. Our data and telecommunications systems are world-renowned and our power and water utilities are extremely reliable. Real estate and office space are in ample supply and public services function transparently and with little bureaucracy – all leading to a very business-friendly environment.

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