Performance overview: Finland
Finland drops two places to 10th, mainly as a result of its weakening macroeconomic environment. The country has been hit hard by the global economic downturn—especially the fall of exports to Russia and the drop in demand for paper and electronic exports32—which has hurt Finland’s competitiveness for the past three years. Although some improvements are perceived in the labor market (up three places to 23rd), with an improvement in the efficient use of talent (up one to 6th), these are offset by the market’s rigidity (102nd): restrictive labor regulation is identified as the most problematic factor for doing business. The government’s planned reforms in this area are to be commended.33 Finland can count on its first-class, efficient, and transparent institutions and its high-quality education system. Finland is also well positioned in terms of innovation, with its capacity to innovate supported by the excellent availability of scientists and engineers (1st) and a high degree of collaboration between universities and industry (2nd).