Structural change

Structural change is normal part of regional economic development and business renewal. There have been major changes in Finland’s industrial structure over the last decade and tens of thousands of jobs have disappeared, especially in traditional industries. During the past few years, the ICT sector has also been severely hit by structural change.

The best way to manage structural change and to prevent abrupt structural change is to ensure a broad-based and vibrant industrial structure. Promoting entirely new growth sectors and ensuring that the education policy is up to date help to alleviate the impacts of structural change. Continuous development of the business policy, understanding the business perspective and the readiness to dispense with old structures (anticipation of industrial and social changes) make it easier to cope with situations involving structural change.

Existing businesses, the creation of new business operations, accelerating growth and internationalisation and the jobs that are generated through this process are in the centre of regional industrial renewal.

In the management of anticipated structural change (ERM), the focus is on using anticipation in management, the anticipatory measures taken in the regions and their responsibility for business promotion and renewal, and the strengthening of smart specialisation and piloting culture. The available employment and business funding instruments are combined on a case-by-case basis.

Anticipated structural change measures accelerate structural changes in regions, launch swift new pilot procedures and strengthen the ability to adapt to changes in business structure (resilience). Renewal of business operations, growth, internationalisation and pilot projects promoting employment and entrepreneurship play a central role in this process.