Jyrki Ali-Yrkkö

Research Institute of the Finnish Economy, Finland, Helsinki | ETLA

The contributions of entry and exit of firms to aggregate productivity growth are well-established in the literature. However, the impact of industry switching of firms on productivity remains overlooked. The purpose of this report is to shed new light on the role of industry switching as a form of structural change. The results show that industry...

Suomen suhdannevaihtelut ovat olleet keskimäärin suurempia kuin Ruotsin, Tanskan ja useimpien muiden kehittyneiden maiden vaihtelut. Tulosten mukaan, mitä suurempi maan bkt on ja mitä korkeampi on sen elintaso, sitä pienemmät ovat suhdannevaihtelut. Yleispäteviä suhdannevaihtelujen suuruuteen vaikuttavia tekijöitä löytyi kuitenkin vähän. Koronakrii...

Do workers hired from superstar tech-firms contribute to better firm performance? To address this question, we analyze the effects of tacit knowledge spillovers from Nokia in the context of a quasi-natural experiment in Finland, the closure of Nokia’s mobile device division in 2014 and the massive labor movement it implied. We apply a two-stage dif...

Tässä raportissa keskitytään tapahtuma-alan koon ja kansantaloudellisen merkityksen arviointiin hyödyntäen sekä toimiala-että yritystason aineistoja. Lisäksi tutkitaan korona-ajan vaikutusta tapahtuma-alan yrityksiin. Tulosten mukaan tapahtuma-ala tuottaa 1,2 % Suomen bkt:sta. Yritysten lisäksi alalla toimii huomattava määrä muita toimijoita, kuten...

This study examines the employment status of workers who left Nokia during the period 2009–2014. The results reveal that the workers were quite successful in finding employment. According to the latest available data, more than three-quarters of these individuals found a new job, while the share of unemployed was 9.6 percent. The remaining share of...

Kyberuhat yleistyvät erittäin nopeasti maailmalla. Suomessa esim. tietomurtojen määrä on kaksinkertaistunut parissa vuodessa. Kyberhyökkäysten taloudellisten kustannusten on arvioitu kasvavan sitäkin nopeammin. Tarkkaa käsitystä kyberuhkien taloudellisista vaikutuksista Suomen kansantalouteen ei kuitenkaan ole. Erityistesti mikroyritysten kyberturv...

This report sheds light on the size and composition of the digital economy in Finland and its impact on the tax gap and tax system. No generally agreed definition of digital economy exists, and only a few prior studies have assessed the size of the digital economy quantitatively. We measured the size of the digital economy by the value added genera...

In 1980, American physicist Paul Benioff published a theoretical model of a machine capable of performing mathematical calculations by utilising the principles of quantum mechanics (Benioff, 1980). The concept was the starting point for the development of quantum computers. 40 years later, the dream of quantum computing is closer to reality than ev...

Vuosina 2014–2019 julkaistut digibarometrit ovat kertoneet kansakunnan digitaalisen asennon sekä siinä tapahtuneet muutokset, myös suhteessa muihin maihin. Näin on jälleen tänäkin vuonna. Perinteisen digibarometrin tulokset ja havainnot löytyvät julkaisun alun tiivistelmästä ja liitteestä 3. Jo kolmatta kertaa muu osuus Digibarometri-julkaisusta ra...

In this paper, we study service exports by Finnish companies , with a special focus on their EU trade. We use a register based dataset of all Finnish service export firms. We find that service export growth has been fast. In 2010-2017, Finland's service export volume grew by more than 50%, which exceeded the corresponding growth in service exports...

We analyse the trade routes between the UK and EU countries. Our results show that the relative importance of the UK as a trading partner in the EU has slightly decreased. We further decompose the total value added into components that quantify the value added that is generated through direct trade with the UK and the indirect trade that is channel...

In recent years, business angels have invested in a few hundred Finnish firms annually. The target firms are mainly young and small: 75% of them employ fewer than 10 workers and are less than 8 years old. These firms are most likely to be found in the ICT and professional service industries and manufacturing. Although many angel-funded firms have f...

Vuosina 2014–2018 julkaistut digibarometrit ovat kertoneet kansakunnan digitaalisen asennon sekä siinä tapahtuneet muutokset, myös suhteessa muihin maihin. Näin on jälleen tänäkin vuonna. Jo toista kertaa muu osuus Digibarometri 2019 -julkaisusta rakentuu kahden pääteeman – resurssien riittävyyden sekä massadatan laajemman hyödyntämisen – ympärille...

The aim of this paper is to broaden the knowledge concerning the development of Finnish firms’ innovation activities. The results show that during 2008–2017 the share of overseas R&D has risen. Currently, 14–25% of Finnish firms’ total R&D are conducted overseas. If Nokia is taken into account, the share of overseas R&D rises to 53–65%. Furthermore...

The book recounts Finnish economic history during the different phases of globalisation as defined and analysed by Richard Baldwin in “The Great Convergence: Information Technology and the New Globalisation”. We demonstrate that Finland has benefited a great deal from its participation in the international division of labour and exchange, and that...

Finland and Sweden are deeply engaged with New Globalization, which is characterized by geographically fragmented production and intense cross-border knowledge flows. Although a popular uproar has brought the steady deepening of this phenomenon to a halt, it is not about to reverse. The consequences of this new era are not well understood due to t...

Through an innovative trade-in-task case study, we explore how Nokia, which is historically one of the most important mobile phone manufacturers in the world, offshored the development and production of three distinct mobile phones at three different points in time. Adjacent to these processes, we find that the value creation in areas such as desig...

In this paper, we examine in detail 35 final assembly location decisions to gain understanding of the manufacturing location decision from strategy and economic policy perspectives. We are particularly interested in the decision to locate final assembly specifically in a high-cost (high GDP per capita) environment. In contrast with the earlier lite...

In this study, we analyse Estonia's position in global value chains using World Input-Output Data and firm-level data. We find that 69% of Estonia's total exports are intermediate goods and services, exceeding the EU average (65%). Two-thirds of Estonian imports are intermediates. Our findings suggest that Estonia is heavily involved in vertically...

We explore through an innovative trade-in task case study of how Nokia—one of the historically most important mobile phone manufacturers in the world—disaggregated and geographically distributed the production of three mobile phones. We find that the value creation across the three studied models shows a rapid shift in tangibles and manufacturing a...

Global value chains, GVCs, have had a transformative impact on the world economy since the early 1990s. We study 45 specific GVCs with company-confidential invoice-level data. We find that the case companies’ headquartering functions capture a large share of the overall value added, 27 % on average. The value added shares of other functions are as...

In this paper, we examine in detail 35 final assembly location decisions in an attempt to understand the manufacturing location decision both from a strategy and economic policy perspectives. We are particularly interested in understanding the decision to locate final assembly specifically in a high-cost (high GDP per capita) environment. In contra...

There are almost 200,000 enterprises operating in the Finnish service sector, combined. However, not all of the service industries are the same. Some services have become independent of geographical locations, meaning that they can be exported, much like physical products. Other services still require that they are produced and consumed in the same...

In this study, we explore who creates and cap-tures value in digital services by analyzing four such services. Our results show that there are notable variations in both value creation and value capture between the services. Similar variations are also observed in the geographi-cal distribution of value added. The study al-so highlights variations...

This article analyses the distribution value added of three mobile telecommunications products launched in 1999, 2003 and 2007, in addition to analysing the respective changes of value added and the tasks – such as research & development, industrialisation, and manufacturing – related to disaggregation between advanced and emerging economies and kn...

Purpose - Supply chains are central to understanding wealth creation and capture in an increasingly globalized production system. The increasing disaggregation and dispersal of supply chains is profoundly affecting the geographical distribution of value added, input costs and profits of multinational firms. This suggests that understanding supply c...

Technology and service platforms are becoming even more important to firms and countries as software built on these platforms is integrated into physical end-products and services across business environments. We find two especial-ly significant topics to explore. First, there is a clear motivation to increase understanding of how platform-based bu...

Microsoft ’s acquisition of Nokia’s phone business has considerable implications for Nokia and po- tentially for Finland as a country, but little immediate effects on Microsoft and related industries. One might ask, couldn’t there have been better remedies for the challenges both Microsoft and Nokia were facing? ...

With the increasing ease of communication and transportation, the falling costs of processing and transferring information, and the major political and societal changes that have occurred in recent years, the link between economies of scale and the geographic concentration of production has weakened. It has become feasible and profitable to dispers...

Available statistics reveal little about the economic consequences of the increasing global dispersion of production processes. To investigate the issue, we perform grass-roots investigative work to uncover the geography of the value added for a Nokia N95 smartphone circa 2007. The phone was assembled in Finland and China. When the device was assem...

Where is your mobile coming from? This simple question is not easy to answer as the mobile has been assembled using components from different countries (including the domestic) and by using services from the domestic and foreign economies. This multi-country nature of products is not only a feature of more complex high-tech products (such as mobile...

In this paper, we examine firm innovation and its link to firm growth. Instead of using the conventional conceptualization and operationalization of innovation in terms of the R&D budget, we use a more elaborate 12-dimensional conceptualization, which takes into account also the non-technological aspects of innovation. The 12-dimensional operationa...

Understanding determinants of business location decisions is important from the point of view of economic policy. While the determinants of manufacturing and R&D location have been extensively covered in the literature, in this article we examine a largely neglected question: Under what conditions do manufacturing and R&D have to be physically colo...

This report presents the results of the eleventh annual National Software Industry Survey. During 2008, the development work started in 2007 to improve the overall quality and coverage of the study was continued. The most visible results of this work are restructuring of our report, making better use of the data across years, and last but perhaps m...

ABSTRACT : This study investigates the relationship between innovations and firm growth, based on the data of Finnish firms operating in the software industry. We find that in terms of turnover and employment, firms with only technological innovations do not grow more rapidly than other firms. However, firm growth is positively associated with the...

ABSTRACT : This study empirically explores whether R&D offshoring affects the domestic R&D employment at the firm level. Overall, the Finnish survey data suggest that the impact of R&D internationalization on domestic R&D employment depends on the mode of internationalization (in-house offshoring vs. offshore outsourcing vs. in-house expansion of R...

In order to shed light on the consequences of the ongoing financial crisis, ETLA conducted two surveys at the end of October 2008. The firm survey targeted firms employing at least 10 persons in Finland (2,017 observations with a response rate of 33%) and the consumer survey targeted 15–74-year-old Finns (2,025 observations with a response rate of...

In order to shed light on the consequences of the ongoing financial crisis, ETLA conducted two surveys at the end of October 2008. The firm survey targeted firms employing at least 10 persons in Finland (2,017 observations with a response rate of 33%) and the consumer survey targeted 15-74-year-old Finns (2,025 observations with a response rate of...

ABSTRACT : The phenomenon of physical R&D-manufacturing co-location is interesting, because researchers have made very different observations regarding its prevalence. In some populations co-location of the two functions seems to be the norm; in others, an exception. However, we still do not have an explicit explanatory theory of co-location. In th...

This paper studies whether family businesses (FBs) differ from non-family businesses (non-FBs) in various dimensions of globalization with a representative sample of businesses in Finnish manufacturing and private services. FBs and non-FBs are not so different when it comes to export and off-shore (includes both in-house moves and outsourcing) prob...

ABSTRACT : This study analyses how R&D expenditure impacts the productivity of companies. We analyse the productivity impact of R&D using a large panel dataset of Finnish firms over a nine-year period from 1996 to 2004. Our results are two-fold. In the short run (in 1-2 years) we find no statistically significant productivity impact of R&D. However...

ABSTRACT : This study analyses how patent quality impacts the likelihood of acquisition. If a firm owns high quality or valuable patents, other firms may be interested in buying the firm to obtain the ownership of these patents. To proxy the quality of patents, we use both forward and backward citations. Moreover, our data enables us to distinguish...

This study analyses the extent and motives of outsourcing and offshoring. We find that in early 2000, 10, 000 – 23, 000 jobs were transferred overseas from Finland. Annually this corresponds to approximately 1.0 – 2.5% of normal job losses and creations in the Finnish labour market. The majority of offshored jobs concern manufacturing tasks. Only a...

This study analyses how public R&D financing impacts the labour demand of companies. To our knowledge, no previous studies have distinguished the impact between a firm’s global and domestic employment. Our company-level panel data covers a period from 1997 to 2002. The statistical method employed in the study takes into account the possibility that...

A firm that owns a patent has a legal right to exclude. Applying for the patent, however, discloses discovery of an invention by the firm. Both the ownership of the right and the disclosure of the discovery expose the firm to an acquisition, because other firms may be interested in buying the right or the invention for a number of reasons. This ide...

TIIVISTELMÄ: Intian merkitys maailmantaloudessa on vielä pieni, mutta maan kansainvälinen merkitys on noussut nopeasti erityisesti IT-palvelujen tuotannon ja kaupan nopean kasvun takia. Intian talouden avautuminen ja siihen liittyvä talouskasvun nopeutuminen alkoi myöhemmin kuin Kiinassa. Osin tästä syystä Intian teollinen sektori on vahvistunut hu...

This study analyses how public R&D financing impacts companies. Our main goal is to study whether public and private R&D financing are substitutes or complements, and whether this impact differs between financially constrained and unconstrained companies. Our company-level panel data cover the period from 1996 to 2002. The statistical method employ...

Abstract: Financial factors and investment behaviour of manufacturing industry. Lisensiaatintyö -- Helsingin kauppakorkeakoulu. kansantaloustieteen laitos.