1. Enforcing the international
growth –
case Finpro
Riga 17.9.2013
Kari Häyrinen
President and CEO

2. Content
• Finnish economy and its challenges
• What needs to be done
• What could be Latvia’s challenges
• Finpro’s role and activities in enforcing the growth
– Trade and internationalization
– Foreign direct investments
2

3. Features of Finland
• Totally open Eurozone economy
• Very dependent on exports
• Small domestic market
• High standard of living – with high cost
structure
• Well educated work force
• Fastest aging population in Europe
• High in innovation and competiveness
rankings
3

4. Challenges for economic growth
• Exports mainly of investment goods or
other b2b goods and services
• Main markets still in slow growth Europe
with increasing competition
• Large multinationals represent a major
part of exports – with limited or negative
investments in Finland
• Geographic challenges for natural and
easy internationalization
• SMEs need to internationalize in very
early stage with limited exposure to global
market opportunities
• Low FDI due to smaller domestic market
compared to peers
4

5. Kari’s thesis for Finland - 1
• Strategy needs to be built on natural or long term
competitive advantages
1. Northern location 2. Water 3. Forests
4. Solid bedrock 5. Long border with Russia
6. Innovations through education
• Also the SMEs need to go to the emerging
economies in Asia, Americas and even in Africa
• Relevant global business opportunities need to
become visible to the SMEs and they need to get
quickly to the value networks
• Achieved position at the ’home markets’ needs to
be secured – Nordic countries and Baltic Sea
region
5

6. Kari’s thesis for Finland - 2
• New private sector and export oriented jobs will
be coming from SMEs (mainly from M) and
through FDI
• More global consumer goods need to be
created for example by ‘born global’ start ups’
• Foreign companies will open the global
marketing networks to local SMEs
• High value adding foreign investments come
for competencies that are world-class and well-
known
• All this needs focus, focus and focus (’picking
the winners’)
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7. Possible challenges to Latvia
• Small economies that have developed fast are likely to lose their
cost advantage before they have developed solid innovation
ecosystem
• Small domestic market is typically a disadvantage for the
businesses but can also be considered as the driving force for
internationalization
• Larger companies will grow and invest more likely closer to the
markets – are there enough SMEs having the will and the
means to internationalize themselves
• How to differentiate amongst the peers to attract the much
needed high value adding FDI
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8. Finpro is Finland’s official trade, internationalization and
investment promotion organization
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Over 65offices in 48countries
Founded in 1919by Finnish companies
Over1400assignments in 2012
370professionals

9. Access to future
opportunities
 We identify
potential business
opportunities for
Finnish companies
 We help the
companies to enhance
the innovativeness of
their business
development and
accelerate the
commercial success of
the new solutions
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10. Speeding up
internationalization
 We boost our clients’
success with world
class services based on
our strong expertise on
internationalization, indu
stries and global
markets.
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11. Breakthrough to right
markets
 Our global trade
center network ensures
the right services at the
right time and place
 Local expertise and
connections ensure our
clients’ successful
foothold in the target
markets
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12. Industry expertise in internationalization
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LifeSciences
Software and digital media
Energy, environment and forest industry
Construction, logistics and manufacturing
Services

13. Acquisition
Candidate Search
Market Monitor
Sales AcceleratorEntry Options Partner Search
International
Growth Plan
Test Drive
Right Markets
Sales Channel
Development
Direct Sales
Establishing
Company
Supplier Evaluation
Export Partner
Groups
Trend Pulse
Improving
Market Position
Establishing
Presence
Finpro Navigator - service package
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Planning
Market Entry
Preparing
Growth
Finpro offers expertise at every stage of internationalization
Industrial Services

14. International programs operated by Finpro
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15. Benefits of foreign direct investment
• Stimulates economic growth through
new jobs and possible export earnings
• Improves the functioning of markets
• Fills the gaps in capital markets
• Diversifies the economy and industries
• Increases international business know-
how
• Brings in the global business networks
and competencies
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16. Invest in services for international companies
• Production of market information
• Research about business opportunities
• Evaluation of market entry alternatives
• Networking in Finland
• Location services
• Consulting to get the business started
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17. Wind energy
investments
Leading the
cleantech sector
Growth in travel
and tourism
Home base
for Hi-Tech
Favorable mining
environment
Ideal place for
datacenters
R&D and innovation
strengths
Green
construction
Invest in Finland focus areas 2013
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18. Finpro’s Global Network
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19. Global Network – Finland and Europe
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20. Global Network – Americas
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21. Global Network – Asia and Russia

22. Global Network – Australia, Malaysia,
Philippines and Singapore
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23. Global Network – Africa
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24. Team Finland promotes external
economic relations, the country's
image abroad, internationalisation
of enterprises, and investments to
Finland.

25. Follow us on social
media and visit our
website www.finpro.fi