Report: success in the data and platform economy requires long-term investments
The development of Finland’s digitally advanced reference countries is based on long-term policy outlines dating back to the 1990s. There is no single clear success factor or policy measure, finds an international comparison report of policy measures promoting the data and platform economy, published by the Ministry of Economic Affairs and Employment on 2 May 2023.
In all of the reference countries (Denmark, Sweden and Estonia), early investments in the development of connectivity and competence have played a key role. The emphasis has been on promoting digitalisation and creating the foundation for the digital economy. In Estonia and Denmark, in particular, the foundation for the data economy has been created by means of a common digital identity. The development of digital public services has served as a driving force of the development of the digital economy.
At its best, regulation supports the development of the data and platform economy, and acts as a pull factor for companies in the industry. This has been the case in Estonia, for example. The reference countries have developed business cooperation at various levels and supported the development of ecosystems. The EU’s Recovery and Resilience Plans are also key instruments for the promotion of digitalisation in the next few years in all of the reference countries.
The report includes eight recommendations. They concern regulation, taxation, business subsidies, choices of priorities, competence and centres of expertise, hard and soft infrastructure, and the quality, availability and flow of data.
The challenge for Finland is to turn the country’s strengths into growth
Finland performs well in comparisons. Our challenge is that our capabilities have not been sufficiently turned into value creation and growth. From the perspective of taking advantage of digitalisation, the R&D investments of companies operating in Finland have not been allocated as successfully as in the countries that are the leaders in digitalisation. The impact of ICT capital on economic growth in Finland is weak by international comparison. The value of the Finnish data market is also clearly below the EU average.
Digitality is one of the most significant ways to create new economic growth. The value of the rapidly growing data economy is projected to be EUR 829 billion, or nearly six per cent of the EU’s GDP, in 2025.
The report “We are eager to try new things – An international comparison of policy measures to promote the data and platform economy” was authored by Heli Paavola (WitMill Oy) and Henri Lahtinen (KPMG Oy). The comparison will be used in the development of policy measures for the data and platform economy, and it is connected to other policy preparations to promote digitalisation.
Lasse Laitinen, Senior Specialist, Ministry of Economic Affairs and Employment, tel. +358 29 504 7162
Satu Vasamo-Koskinen, Chief Specialist, Ministry of Economic Affairs and Employment, tel. +358 29 504 7073