Investments will increase slightly, though less than originally planned
The amount of fixed investments made by Finnish industrial enterprises increased last year by approximately seven percent. This year the growth is expected to slow down to one and a half percent. Accordingly, investments would amount to EUR 4.1 billion in 2008.
Investment plans are somewhat smaller than in the last survey carried out in autumn 2007. These statistics are revealed in the latest Investment Survey carried out by the Confederation of Finnish Industries EK.
The amount of investments will increase this year in the technology and chemical industries, for example. However, investments in the food and forest industries are expected to be smaller than last year. Investments by the energy sector continue to be at a historically high level.
The investment ratio, i.e. the ratio between investments and industrial added value, will remain almost unchanged. In 2006-2008 the investment ratio was approximately 11 percent, which is close to the Western European average.
If R&D operations are included in investments, the investment ratio for industrial enterprises is almost 21 percent.
The R&D operations of Finnish industrial enterprises expanded last year quite rapidly. R&D outlays increased by over ten percent. This year a further increase of around two percent is expect, which would increase R&D outlays to approximately EUR 3.7 billion.
The number of people employed within R&D in Finland has remained stable at approximately 30,000.
The amount spent by Finnish companies on R&D abroad increased last year significantly but is expected to remain at the same level this year.
The number of R&D personnel abroad is expected to decrease slightly to just over 17,000.
The EK Investment Survey is part of the EU’s harmonised business trend survey system.
A total of 321 industrial enterprises participated in the survey. The investments made by enterprises participating in the survey cover approximately 80 percent of all manufacturing industry investments.
The combined investments of participating enterprises in Finland amounted to EUR 74 billion in 2007. Participating enterprises employed 196,000 people in Finland.