Technology is an essential part of Finland's industry and is accordingly being acknowledged by the government in its policy-making. Over the past 10-15 years, the volume of both public and private R&D investments in Finnish industry has grown faster than the OECD average, at an annual rate of about 10 percent. Today, the Finnish R&D input in relation to GDP is one of the highest in the world and now totals about 5 billion euros, which equals 3.5 percent of GDP.

The results of R&D investment are clearly visible in the structural changes in industry and in the wide range of Finnish high-tech exports. The best example is the success story of Nokia, which has contributed to the rise of the whole IT sector. The electronics and electrical industry now represent the third-strongest pillar of the Finnish national economy alongside forestry, metal and engineering industries. High-tech production make up an increasingly large part of Finnish exports: electronics and electro-technical goods account for 27.5% of total Finnish exports.

Innovative products have established Finland at the forefront of technology. Innovations are generated by the demand for more efficient, time-saving, lucrative and intelligent products. For instance, the Finnish chemicals company Kemira has established a position as far away as China with its water management technology, while the energy corporation Fortum has created a new environment-friendly and safe solid acid technology for its petroleum production. F-Secure, a Finnish software company specializing in data security, has introduced the F-Secure Mobile Filter, which guarantees that software downloaded via telephone is secure. They also have the patent for anti-virus updates sent as a text message. Further, Setec, a company focusing on high-security smart cards and visual ID products, is preparing for biometric identification. This is to name but a few recent Finnish innovations.
The ability of a small and peripheral economy to succeed under the pressure of international competition remains largely how it reacts to changing conditions. Finland has been in favor of transparent and rules-based international trade mechanisms, which now bears fruit. The success has been built by networking and taking into account the overall picture. For example, the interaction between Finnish companies, universities and research institutes provides substantial benefits for the economy. Future success will require new innovations and therefore continuous investment in R&D.