--- canonical_url: "https://csls.ca/ipm-archive/ipm-issue-20/finlands-path-to-the-global-productivity-frontier-through-creative-destruction/" title: "Finland’s Path to the Global Productivity Frontier through Creative Destruction" author: name: "CSLS" url: "https://csls.ca/author/cslc/" date_published: "2026-07-13T07:31:44+00:00" date_modified: "2026-07-13T07:31:44+00:00" post_type: "ipm" summary: "" ipm_issue_period: - "Fall 2010" ipm_keyword: - "creative destruction" - "deregulation" - "entry and exit" - "Finland" - "firm dynamics" - "ICT" - "liberalization" - "manufacturing" - "Nokia" - "productivity" ipm_research_theme: - "Sectoral and firm-level dynamics" ipm_country_focus: - "Finland" - "International" - "Japan" - "Sweden" - "United States" featured_image: "https://csls.ca/wp-content/uploads/2026/06/IPM_50_banner.webp" status: "publish" --- # Finland’s Path to the Global Productivity Frontier through Creative Destruction Canonical URL: https://csls.ca/ipm-archive/ipm-issue-20/finlands-path-to-the-global-productivity-frontier-through-creative-destruction/ # Finland’s Path to the Global Productivity Frontier through Creative Destruction [Download full PDF article](https://csls.ca/wp-content/uploads/2026/07/IPM-Issue-20-4-Maliranta-Rouvinen-Yla-Anttila.pdf) Cite this article × Cite this article as: Maliranta, Mika, Petri Rouvinen, and Pekka Ylä-Anttila. 2010. “Finland’s Path to the Global Productivity Frontier through Creative Destruction.” International Productivity Monitor, No. 20 (Fall 2010): 68–84. https://www.csls.ca/ipm-archive/ipm-issue-20/finlands-path-to-the-global-productivity-frontier-through-creative-destruction/ ## Authors: - Mika Maliranta The Research Institute of the Finnish Economy (ETLA); Jyväskylä University School of Business and Economics - Petri Rouvinen The Research Institute of the Finnish Economy (ETLA); Jyväskylä University School of Business and Economics - Pekka Ylä-Anttila The Research Institute of the Finnish Economy (ETLA); Jyväskylä University School of Business and Economics ## IPM Issue 20 Fall 2010 pp. 68–84 ## Related IPM articles [The Relationship between Efficiencies Defenses for Mergers and TFP Growth Robin Shaban Fall 2025 | IPM Issue 49 | pp. 82–102](https://csls.ca/ipm-archive/ipm-issue-49/the-relationship-between-efficiencies-defenses-for-mergers-and-tfp-growth/) [Adult Skills and Productivity: New Evidence from PIAAC 2023 Dan Andrews, Balázs Égert, Christine de La Maisonneuve Fall 2025 | IPM Issue 49 | pp. 41–63](https://csls.ca/ipm-archive/ipm-issue-49/adult-skills-and-productivity-new-evidence-from-piaac-2023/) [The Potential Impact of Pro-competitive Regulatory Reforms on Productivity and Growth in Canada Gilbert Cette, Jimmy Lopez, Giuseppe Nicoletti, Océane Vernerey Fall 2025 | IPM Issue 49 | pp. 3–40](https://csls.ca/ipm-archive/ipm-issue-49/the-potential-impact-of-pro-competitive-regulatory-reforms-on-productivity-and-growth-in-canada/) [De-industrialization and the Great Productivity Slowdown: What Comes Next? 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The Canadian Experience Tim Sargent Fall 2024 | IPM Issue 47 | pp. 39–53](https://csls.ca/ipm-archive/ipm-issue-47/how-does-industrial-policy-impact-output-hours-and-productivity-the-canadian-experience/) [Climate Change and Productivity — An Exploration Dirk Pilat Fall 2024 | IPM Issue 47 | pp. 54–86](https://csls.ca/ipm-archive/ipm-issue-47/climate-change-and-productivity-an-exploration/) ## Abstract ## Résumé EN FR Copy link Email LinkedIn The marked acceleration of Finnish productivity growth since the mid-1980s is attributable to intensifying creative destruction, understood as the joint effect of market entry and exit as well as resource reallocation between continuing plants and firms. This acceleration coincided with the economy-wide deregulation, liberalization, and the opening up of Finland, which provided new incentives and opportunities, thus enabling individuals and businesses to capitalize on intangible capital accumulated via sustained investment since World War II. The “Nokia effect” was particularly important in the latter half of the 1990s, but productivityenhancing restructuring has been more widespread. Developments in Finland are contrasted to those in Japan, Sweden, and the United States. RÉSUMÉ L’accélération marquée de la croissance de la productivité en Finlande depuis le milieu des années 80 est attribuable à l’intensification de la destruction créatrice, c’est à-dire l’effet conjoint de l’entrée et de la sortie sur le marché, de même que de la nouvelle répartition des ressources entre les usines et les entreprises qui se maintiennent. Cette accélération coïncide avec la déréglementation de l’ensemble de l’économie, la libéralisation et l’ouverture de la Finlande, facteurs qui procurent de nouveaux stimulants et possibilités, de sorte que les particuliers et les entreprises sont en mesure de tirer profit du capital incorporel accumulé par des investissements soutenus depuis la Seconde Guerre mondiale. L'”effet Nokia” a été particulièrement important dans la deuxième moitié des années 90, mais la restructuration favorable à la productivité a été plus répandue. L’évolution en Finlande est mise en parallèle ave celle qui s’est produite au Japon, en Suède et aux États-Unis. F ROM 1970 TO 2007, F INLAND ’S real GDP per La nette accélération de la croissance de la productivité finlandaise depuis le milieu des années 1980 est attribuable à une intensification de la destruction créatrice, comprise comme l’effet combiné de l’entrée et de la sortie des marchés ainsi que de la réaffectation des ressources entre les établissements et entreprises en activité. Cette accélération a coïncidé avec la déréglementation à l’échelle de l’économie, la libéralisation et l’ouverture de la Finlande, qui ont fourni de nouvelles incitations et opportunités, permettant ainsi aux particuliers et aux entreprises de capitaliser sur le capital immatériel accumulé grâce à un investissement soutenu depuis la Seconde Guerre mondiale. L’« effet Nokia » a été particulièrement important dans la seconde moitié des années 1990, mais la restructuration favorable à la productivité a été plus généralisée. Les développements en Finlande sont mis en contraste avec ceux du Japon, de la Suède et des États-Unis. [Download full PDF](https://csls.ca/wp-content/uploads/2026/07/IPM-Issue-20-4-Maliranta-Rouvinen-Yla-Anttila.pdf)