In recent years, Finland has been extremely successful in various international comparisons of know-how, learning, the application of technology, and even ecologically sustainable development. Now, The International Institute for Management Development (IMD) and The World Economic Forum (WEF), the most eminent organizations evaluating the competitiveness of nations, agree that Finland is the most competitive country in the world in 2003-followed by the United States, Sweden and Denmark.

The ranking list is created by turning tens or even hundreds of combinations of parameters into indices. The level of each country is measured by statistical data as well as direct mail inquiries to business executives. The definition of competitiveness applied in the evaluation highlights a country's capability to provide a proper operating environment for private business. Finland ranked top in the overall results and the WEF report praises Finland as one of the most significant success stories of the decade.

Finland's success consists in promoting education as well as providing appropriate infrastructure and institutional arrangements to support competition. Before reaching its current position, Finland experienced a serious economic crisis: between 1990-93 GDP dropped by 14 percent and unemployment rose to almost 20 percent. However, the recession may have been a blessing in disguise, as it forced both the private and the public sectors to rationalize, streamline and downsize their operations. In addition, rapid action taken by the government towards opening up the economy to foreign investors, and increased investments in research and development, enabled the transition towards a knowledge-based economy in Finland. One important factor behind competitiveness in the longer term has been to maintain high standards of basic education. Consequently, by transforming economic structures and maintaining the welfare-oriented "Finnish Way," the country has managed a turnaround in its performance.

Some experts believe that statistically speaking Finland would not rank so high with the current method of comparison, which suggests that the core of Finland's competitiveness lies in matters that statistical variables cannot reveal. However, while any attempt to measure competitiveness will be deficient, the country's steady climb to the top since the early 1990s, as well as above EU-average growth in GDP and labor productivity, declare that Finland is indeed one of the most competitive countries in the world.