Innovations emerge through the combination of new resource mixes and creative efforts (Jelonek 2015). They serve as a foundation for economic growth, as demonstrated by the World Bank’s statistical correlation between Gross Domestic Product (GDP) and investment in innovation. According to Schumpeter (1934), innovation involves reconfiguring existing resources in novel ways to develop new products and services. Makkonen et. al 2023, furthermore highlight the importance of a company’s innovation strategy.
Foreign inventors in Finnish technological development
Data on Finnish patent applications filed with the European Patent Office (EPO) and the United States Patent and Trademark Office (USPTO) during the period from 2011 to 2021, shows that foreign inventors and international collaboration have been instrumental in Finland’s technological advancement. An increase in inventions made by foreign nationals in Finland can be observed: During the 2010s, inventors from 68 different countries contributed to Finnish patent applications. The proportion of foreign inventors has steadily increased since then. By 2021, 60 % of patent applications included foreign inventors, with over one-fifth involving collaboration between Finnish and foreign inventors. The United States has been Finland’s most dominant innovation partner, with Germany, Sweden, and China also playing key roles in patent development. (Koski 2024)
When looking at innovations by technology sector, foreign inventors are particularly prominent in ICT-related patent filings, where they accounted for more than one-fifth of patents during the period of 2011 to 2021. Their involvement has also expanded in other sectors, with their share of United States Patent and Trademark Office patent applications rising from 9 % to 17 %, and European Patent Office applications increasing from 18 % to 23 %.
In a study published by Barona (2024) it was found that twenty-six percent of employers reported planning to hire international workers within the next year. In the public sector, 52 percent of respondents intend to do so. However, it was noted that less than one-third of respondents estimated that their need for labor will increase in the coming year. Furthermore, a decrease can be seen in the discussions about hiring foreigners in companies that do not yet employ such labour. Nearly three quarter (76 %) of foreign reqruits are hired to undertake manual labour.
In light of the demographic trends in Finland and the increased amount of patents by foreign nationals, one can not wonder, if we should not increase efforts to attract foreign nationals not only for manual roles but also increasingly for innovation enhancement roles?
Author
Kristiina Brusila-Meltovaara works as a principal lecturer in the technology department of LAB University of Applied Sciences.
References
Barona. 2024. Työelämätutkimus. Cited 12 Sep 2024. Available at https://prismic-io.s3.amazonaws.com/barona/a974c323-a09c-4210-aaf1-e65b7ef4f63a_Tyo%CC%88ela%CC%88ma%CC%88tutkimus+2024_Barona.pdf
geralt. 2015. Hehkulamppu, paistaa, idea, ajatus. Pixabay. Cited 12 Sep 2024. Available athttps://pixabay.com/fi/illustrations/hehkulamppu-paistaa-idea-ajatus-978882/
Koski, H. 2024. ”Ulkomaalaisten keksijöiden rooli suomalaisessa teknologiakehityksessä”. ETLA Muistio nro 138. Cited 12 Sep 2024. Available at: https://pub.etla.fi/ETLA-Muistio-Brief-138.pdf
Jelonek, D. 2015. The role of open innovations in the development of e-entrepreneurship. Procedia Computer Science, Vol 65, 1013‒1022. Cited 8 Aug 2024. Available at https://doi.org/10.1016/j.procs.2015.09.058
Makkonen, P., Siakas, K., Lampropoulos, G. & Brusila-Meltovaara, K. 2023. Open Innovation Maturity in Companies. In European Conference on Innovation and Entrepreneurship. Vol. 18, No. 1, 545‒551. Cited 8 Aug 2024. Available at https://doi.org/10.34190/ecie.18.1.1622
Schumpeter, J. 1934. The Theory of Economic Development. Cambridge: Harvard University Press.
