Finnish electronics industry going down

Sad trends news gain. Finnish electronics exports collapse continues. :-(

Finnish electronics exports shrank in the last quarter of 2012. This is largely due the fact that Nokia miracle seems to be in the end. When Nokia’s gold rush was booming phones and other communication devices were 20 per cent of all Finnish exports. They were last year to less than three per cent and are expected to drop this years because Nokia moved manufacturing away from Finland.

Electrical and electronics exports were before the start of Nokia’s collapse in 2008 of more than EUR 15 billion. Electrical and electronics export from Finland were last year down to 7.3 billion Euros. This means drop to less than half in just few years! Was no wonder that market got too hard for Prosessori Magazine, an important publication for many people working on those fields and a magazine I wrote to.

The electronics industry exports amounted to more than three billion (communication equipment accounted for more than half of that). Electrical products were exported to almost four billion euros. This means that the traditional electrical engineering industry is currently more important to Finland than electronics export sector.

What kind of changes are needed in this industry? The future of the electronics industry in Finland presentation from 20120 says that a significant structural change has taken place as many manufacturing companies were transformed into service and software companies. It also says that Finnish system, having successfully managed the catching-up process, is currently at crossroads but without an explicit crisis because ICT markets are still in the growth phase.

The mass production of electronics moves to the low cost countries and locations. The focus of the business has changed from the assembly of modular products to the critical components, software and services as well as to the management of the value chain. Competition will emphasise the need for truly novel ideas. The question is how can we innovate those?


  1. Tomi Engdahl says:

    3T explained the engineering work safest and most threatened areas.

    Those most at risk in the near future is part of the metal product and its subcontractors for jobs.

    Electronics manufacturing jobs have largely moved away from Finland.

    The consumer electronics manufacturing and design has decreased dramatically in Finland. At the same time, software and content increases.

    Statistics Finland’s data show that in 1998, the IT sector employed just under 30,000 people. By 2011, the number had grown to almost 60,000 employees.

    “Also, many electrical industry the company is doing well. Electronics and electrical line of business encompasses a diverse business, “Technology Industries of Finland Mervi Karakorpi says.

    Many of the machine and metal internationalization of small and medium-sized companies still need talent. A large increase in the number of pensioners will bring more job opportunities in health technology and related services to developers

    A significant part of the GDP generated even more industry, even though restructuring has contributed to a sharp. Industrial jobs in large part already associated with the production of services. The industry should be defined as again, “says Husari.

    “Finland is considered to be too tightly to the past industrial model. We have spoken well at times, unilaterally and supply-for example, a mechanical and electrical engineering. This approach could be a challenge, as the Finnish model has not worked as expected. ”

    Manufacturing shift to Asia is the extremely painful thing. Business activities of the internal value creation has changed drastically, and it should not be forgotten.

    “Now it is cheap and bulk production. Finnish specialist expertise is to simply sit down there.”

    “The software development is quite different. The number of employees will continue to grow, and it is not bent, such as on the side of the device. Digitalisation of the world will continue and will bring a great number of new opportunities. ”

    Indulging in a pretty world, climate change, energy and urbanization have a strong impact on what is done in Finland.

    “The local market is not worth the breath for granted, but to network globally and have customers from all over the world. In fact, I see an opportunity for the world’s best product design that combines economics, technology, and design. ”

    Future hot start
    ♦ 3d-printing
    ♦ Printed Electronics
    ♦ Software
    ♦ Construction and Building Services
    ♦ Infrastructure Technology / municipal engineering
    ♦ Water Technology
    ♦ Energy
    ♦ Health and Wellness
    ♦ inhabited environment, urban planning

    Threatened areas
    ♦ Paper Machine Technology
    ♦ Consumer Electronics and its mass production


  2. Tomi Engdahl says:

    Renesas fired from 800 persons in Finland – the biggest cuts in Oulu
    The Japanese company Renesas Mobile terminated all of its employees in Finland.

    Mobile Development Unit, Renesas Mobile’s co-determination negotiations, the result is a sharp blow to Finland. Renesas Mobile Corporation in the unit Heikki Tenhunen says that the company terminates all 808 of its work force in Oulu, Salo, Helsinki and Tampere. The first layoffs are being delivered as early as next week.

    Renesas Mobile Corporation, a Japanese parent company has been looking for a buyer for a mobile unit.

    Renesas Mobile Corporation, Oulu, R & D unit steward Lauri Mined Power told the workers to be very disappointed.

    - This being eroded little by little miracle of Oulu. Just about the only big company that is now left of Oulu, Nokia Siemens Networks, said Mined current info after the event.


  3. Tomi Engdahl says:

    Sampo and UPM’s Chairman of the Board Björn Wahlroos believes that the iPad is to blame for the poor state of the Finnish economy.
    Wahlroos explains his views Talouselämä magazine interview.

    Wahlroos believes that the Finnish economy is due to the poor state of the paper industry and the ICT sector under the leadership of Nokia. Wahlroos, Apple launched the iPad tablet computer boom, which has hit the paper publications, as well as the mobile industry market.


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  5. Tomi Engdahl says:

    Finnish warned: More than 40 000 industrial jobs could be lost

    If Finland does not get as soon as competitiveness increases, the industry will soon be in the free labor market a huge number of workers.

    The Boston Consulting Group, a new study shows that Finland will lose up to 42 000 jobs in the manufacturing industry by year 2020. Together Finland, Sweden, Denmark and Norway are expected to lose a total of 200 000 jobs in the manufacturing industry by 2020.

    - This is due to global competition. For example, Nokia has done well in this competition, which led to the fact that it was forced to run operations in an area in Finland. Also, many large companies, which are currently still going well, moving production and sourcing abroad, says Anssi Paasivirta restructuring of Employment and the Economy Ministry.

    If BCG’s forecast comes true, it is hard to take action in Finland introduced the restructuring deal.

    - Unfortunately, we are already accustomed to. Since 2008, we have already lost 65 000 jobs in the industry, Paasivirta says.

    Restructuring of the treatment, there are two lines of action.

    - The first step aims at identifying people as quickly as possible of new jobs and training for those sectors where there is a shortage of the labor force. We generated a lot of new jobs in small and medium-sized firms, as well as care.

    The replacement business

    Another way is to try to generate a defunct business in place of a replacement operation.

    - What is needed is a radical new growth companies, Paasivirta says.

    He takes the example from Nokia dismissed the ICT sector workers, who have developed a new business and to strengthen Finland’s position in digitalization of the market. Solely on the basis of Nokia in Finland was born about 450 companies.

    - Nokia laid-off are well trained people. It would be a shame to throw their knowledge wasted, Paasivirta says.


  6. Tomi Engdahl says:

    The world’s largest mobile phone manufacturer, technology giant Samsung Electronics, opened in Otaniemi, Espoo research and development unit. Samsung’s R & D Institute to develop smartphones, tablets, and televisions.

    The Chinese telecommunications company Huawei opened its own R & D department in the Vallila district of Helsinki in the autumn. Intel microprocessors in well-known American has served as the Espoo’s West End last spring.

    Samsung’s R & D Institute Director Timo Aho, the river is not a coincidence that Finland will invest nearly at the same time more of an international technology company.

    “Two-three years ago in Finland began to fade technology country, but now we have a grip back. Pace is again hard and Finland will – and fast,” says cm In. He refers specifically to the decline in Nokia’s difficulties and a reduction in resources for other technology companies.

    “Open source is a Finnish software engineer in the heart,” says cm In.


  7. Tomi Engdahl says:

    Lifestyle Renovation

    “Time is the former never return”, as the Minister said about the Urpilainen , and this reflects the hard way Finnish industrial production sinister development – the latest figure is -5.9 per cent.

    It may be still clear that Finland needs the industry to increase its exports, GDP and tax revenues.

    New areas are often perceived as more dynamic and sexier than the industry.

    Manufacturing is still a key role in the future of Finland.

    But how Finland will be able to compete with the cost of production in India and China? Is there a continuous anorectic dieting, the cost of running and unfair cuts, the only way?

    I think not. Dieting is not the only nor the best way to stay healthy, but a complete way of life, and during the renovation.

    The industry is on this day of high technology and high competence in a demanding sector. Gone is the sooty roar filled the manufacturing facility.

    Modernity are more efficient robots, linking to ERP and CRM systems, and even social media.

    Networking within the organization and the business environment is the realism of the industry.

    For example, Germany is running 4.0-Industrie program , under which “all machinery, equipment, and processes are connected to the Internet, and they can be controlled by one titles, the most appropriate tools.”

    And that’s not all. Manufacturing is only one link in a new industrial chain.

    Networking of the situation in terms of delivery of the goods to get into the business. Networking products, monitoring, management, maintenance and development could take place in a continuous pro-active service.

    The manufacture of the entire service take-over could very well be successful Finnish companies on the global scale.

    Finland’s strengths are a high-tech know-how and a strong education system.

    Finnish manufacturing industry, more opportunities to move mega-trend functions back to Europe, the USA, this is already a reality .

    Offshoring has been transferred to functions such as India and China.

    But their ever-rising labor costs and the rise in oil prices added transport costs may lead to a situation where the new high-skill industries may be more advantageous to work at home.

    Consumers will be more aware, and the mass of the products are no longer pull.

    New technology and networking is much cheaper produce real-time consumer preferences. Intelligent factories are calculated in a global liiketoimintapotentiaaliksi $ 1.95 trillion by 2020 .

    The manufacturing industry in Finland is also the story of the beginning of a new front. Lifestyle Home Improvement does not necessarily mean ongoing cost cuts

    The Economist magazine ‘s third industrial revolution appointed by the trend is the same as the networking that combines Internet-based factory networks, operations management and organizational decision-makers – which also includes its largest customers before and after the purchase transaction itself.

    This technology, based on the intelligence needs-based production requires networking, strong technological know-how and new business models.

    High-end manufacturing requires intelligence, as people, machinery to process. Networking and Finland’s strengths makes this possible for us

    new technologies allow us to enter the high-end service chain manufacturing high country.


  8. Tomi Engdahl says:

    Components of the wholesalers is not easy now. The Finnish market is shrinking, production is lost to the rest, and fast on-line stores will challenge the distributor. Fintronic swim against the current. The company plans to grow by 3-5 per cent this year.

    - I believe that the next 10-20 years are the time for the sensors. Various systems and devices are the sensor assembly to the senses, Vasama predict.

    The sensor system design is, however, technically difficult, and where technical support is necessary to be close to the development. The mere sale of the component does not work very well.


  9. Tomi Engdahl says:

    Microsoft to buy Nokia’s phone business

    Stephen Elop’s task on turning Nokia Mobile phones business to Microsoft compatible has come to end: Microsoft Corporation and Nokia Corporation today announced that the Boards of Directors for both companies have decided to enter into a transaction whereby Microsoft will purchase substantially all of Nokia’s Devices & Services business, license Nokia’s patents, and license and use Nokia’s mapping services.

  10. Tomi Engdahl says:

    Veijo Ojanperä: There remains a healthy and innovative Nokia

    The first reaction of Nokia and Microsoft’s trade is most definitely a shock. Surprise phone sales side can not be none.

    The final solution seems to always be just so. A final. From a domestic point of view, the next question is, what the deal means for Finland? What it means for the Finnish engineering know-how in terms of? What does that mean in terms of the Finnish innovation?

    Is likely ultimate outcome, the relevant time, the grief-positive. The remaining Nokia, that is, about half the current, is a vibrant, innovative, healthy and money-making enterprise.

    Now living in the shadow of Nokia can finally stop. Finnish engineer can focus on what his future really is: new, innovative solutions for industry. Whether it’s machine control, automation and embedded software solutions, these Finnish developer still has a lot to offer.

    Nokia’s new models of success does not depend on iron. It is prized by many foreign industry analysts. Success does not even necessarily depend on the operating system, even though most do not want Windows on their mobile phones.

    Nokia is not desired, because it is not desirable. Desirability is again something that is very difficult to achieve when it is once lost. In that speech, “the third ecosystem” has not the slightest importance.

    All come to an end. Each dynasty crashes.


  11. Tomi Engdahl says:

    Technology 13-event in early October, organized by Finnish Fair atmosphere changed in recent Nokia news, because in one fell swoop. Electronics and automation innovations are presented for the first time in Finland, where the mobile phone business has virtually disappeared.


  12. Tomi Engdahl says:

    American wireless chips Broadcom to buy top name Renesas Mobile’s European operations. Broadcom may trade in high-end talent, as well as in manufacturing LTE modem technology at low prices, as the price is only 124 million.

    After Midsummer, Renesas announced the close down of the entire mobile component company. The decision would have meant 566 developer termination of Oulu, Finland.


  13. Tomi Engdahl says:

    What do we learn from Nokia?

    Nokia’s rise and fall is Finland’s biggest story in the 2000s. We can no longer boast of the world’s greatest mobile company, even though the peak years of the time only a few years. In today’s Nokia New winds are blowing.

    Finnish companies, many of which are operated Nokia’s subcontractors, have to look forward. Could the current Nokia may provide business opportunities? Or is it to leave the world to sell?

    As soon as pestinsä early Seppala became familiar with Nokia’s cut-throat “seduce and squeeze”-tactics, which it tiristi sub-contractors as much as possible out of it.

    “Nokia’s key message was always that we have been easy to give the business because we know how to do the job. Taking care of us that have to use as much resources as the other tending, “Seppala says.

    “This idea also spread to internal meetings.”

    Certainly sounds very familiar to many Finnish Nokia’s subcontractors.

    “Seduce and squeeze”-tactics

    “The cooperation with Nokia was a constant suppliers of humiliation,”

    Pry the dinosaur

    “Nokia is a company full of unwieldy bureaucracy,” said wished to remain anonymous subcontractor.

    “Nokia is very prescriptive, slow and sluggish. Decision-making is a long process and requires all long internal politics, “replied the second, and continues:” The Nokia deals with other companies to subordinates, even in a situation where we are in the same line. ”

    And so on. The majority of respondents complain. Someone says Nokia was the “worst customers” while another says there is not ever going to do with Nokia.

    Ave Caesar

    Nokia’s peak years, many entrepreneurs had difficulty in accepting that had driven the company to a situation where a significant one too, customers have grown to full power. Nokia was in the days of greatness like Caesar. It depended on the position of the thumb, to achieve the Finnish subcontractor fabulous success, or plunged it into bankruptcy.

    When the relationship became a problem, the work became personal.

    “As early as 2005, it was evident that the business can go down. I still remember the presentation name: Let’s sell our golden egg. I suggested that the merged Nokia account to another company in order to actually change strategically. ”

    But it does no come. The top management decided to continue the old strategy. Was it the right decision, it is unlikely to know anyone, but stalling started already be deadly.

    Finnish technology industry’s problems were just beginning. Asia injected up factories in size, and Finnish contract manufacturers have been able to defend themselves in any, the Giants rolled into the East Keilaranta to enter into contracts.

    “The year 2006 was not good, but the contracts already started to change substantially worse than sub-contractors,” says Timo Seppälä. Nokia began to focus more and more costs. Long-term partnerships and flexibility diminished.

    But you bite the hand that feeds you have. Is it?

    We Finns feared for Nokia, because it was so rich and all-powerful. In this country, it was difficult to do business, if stigmatized Nokia critic. Suppliers also not supported annoyed by Nokia, since the rage giant would no longer come to invitations to press conferences. The situation was being paranoid. We all went to Finland, the Finnish front, Nokia, and Nokia messed up the front.

    When Caesar then fell down, and at best 65 euros price fell to less than two euro.

    Autocrats became mortal, even though it was already too late.

    But admit it: if someone had written in 2007 that Nokia is collapsing, it would be necessary, as well as supplier management and delivery of a huge guts. It is not from this country were found. Not found me at all.


  14. Tomi Engdahl says:

    Electronic Finland returned to pulp Finland

    One of the best Nokia’s fading image of the key figures can be found in the Customs foreign trade statistics published

    This point is called the telephone, radio, television and other appliances. This found under the export figure is the most recent of the January-June ever 307 million.

    When Nokia still went hard, under Section 76 was a very different readings.

    In 2007, in January-June exports amounted to 4.6 billion euros, or drop the top of which is 93 per cent.

    Finland, fortunately, the good old pulp is back. The cellulose was taken in January-June, 780 million, and exports are growing well.


  15. Tomi says:

    Finland leads foreign companies, “the engineer is here a good price-quality ratio”

    The work a good price-quality ratio and engineers committed to their work. There are two reasons why foreign companies to transfer their product development in Finland now. Foreign companies have created in Finland in the hundreds of new R & D jobs, attracted by good engineering skills.

    A dozen or so foreign ICT companies in the field has increased its product development and research in Finland in the last couple of years.

    Often, the foreign company’s product development will come to Finland in connection with the acquisition of the Finnish company has been sold to the world.

    Completely new units have opened in recent years, in particular the ICT industry, such as the Smart, Ericsson, Huawei, Intel, and Samsung.


  16. Tomi says:

    Global Finnish companies decreased the most in Finland

    Global Finnish companies decreased between 2007 and 2010, about 80 000 people from around the world. Of this amount, reduced by four-fifths of Finland.

    Business focused abroad mostly in construction and some service industries.


  17. Tomi Engdahl says:

    This is the new Nokia – three very different parts

    When the Nokia sells phone manufacturing to Microsoft, there remains a large and very healthy 56 000 employee in the company. The new Nokia structure is interesting. The company is comprised of three very different parts, especially the one which is shrouded in darkness.

    Nokia and Microsoft’s M & A is interesting. Microsoft is taking over Nokia’s mobile phone business, and related services – but not quite completely. Nokia, for example, will develop new technology to the CTO (Chief Technology Office) Unit, as well as the company’s range of valuable patents.

    1 Huge part: Nokia’s network company Nokia Siemens Networks

    Nokia announced in July that the company will buy out Siemens’ joint network company Nokia Siemens Networks. Nokia paid half of the company’s € 1.7 billion, and the network of the company name was changed to the Nokia Solutions and Networks.

    NSN is the new Nokia by far the largest unit. It has about 50 000 employees. NSN is an independent company, which will continue as CEO Rajeev Suri and the Chairman of the Board, Jesper Ovesen.

    NSN’s journey in recent years, it has been difficult, but now the company is in excellent condition.

    In April-June NSN’s net sales totaled EUR 2.8 billion. The operating profit margin was excellent, almost 12 per cent.

    2 Small and promising: Here-mapping

    Here net sales amounted to EUR 233 million in the spring, and the result was a 3.4 per cent profit.

    The unit is based on Navteq, which Nokia acquired in 2008, a little bit less than six billion euros. Navteq’s website, the company employs approximately 7,000 people.

    Here, the unit is still small compared to the NSN network company, but Nokia claims that it is of great strategic importance.

    3 The biggest question mark: Technology and Patents

    The most unusual Nokia’s new parts of the Advanced Technologies. According to Nokia, it focuses on the development of technology and its licensing.

    The unit’s main task is the Nokia more than 10 000 patent licensing. Nokia also suggests that at least some research remains to this new unit.

    Patent licensing can bring significant revenue to Nokia over the coming years. Their extent is not known.

    Nokia’s new three-unit complex is a profitable and healthy company. Nokia estimates that in the first half of this year, “Nokia’s new” sales would have been € 6.3 billion, and the profit margin would have been a perfect 12.1.


  18. Tomi Engdahl says:

    Russia’s electronics did not grow in the first half

    Many Finnish manufacturer and component distribution company to rely on Russia engine of growth, the production will fall in Finland. At least early in the year, the Russian market were not a gold mine, as a component of the market remained virtually unchanged.


  19. Tomi Engdahl says:

    VTT envisioned: 3D printing, Finland, the new Nokia

    VTT’s research manager of 3D printing technology advances, it can be used in the future to print up a unique house.

    At least VTT and Aalto University is believed to 3D printing brought about by business opportunities in Finland.

    VTT’s research director Erja Turunen, Finland has plenty of capacity to make breakthroughs in 3D technology. Finnish industry is based on small series manufacture of special products with 3D technology, the benefits can be.

    - We are not for mass producing because out size. Finland is a good as a high-value-added products. We are also good to combine expertise from different fields. It is when something is needed 3D printing innovation. In addition, we have a strong engineering-March.

    VTT sees the greatest potential for technological exploitation of the Finnish engineering and energy industries. The Institute has been involved in developing inter alia, spare parts business.

    - We want to stand out from consumer gadget hype. We believe that 3D allows to explicitly provide new high value-added industrial products.

    3D technology is said to put an existing business models into new, as it eventually revolutionize the production of industrial design and production. 3D printing customers can be produced more individual, lighter and more complex products at no additional cost.

    Thanks to technology, such as a broken part of the machine or production equipment spare part can be printed if necessary, to the other side of the globe.

    This in turn saves significantly on corporate transportation and storage costs when the product logistics chain, from design to production takes place mainly in bits.

    - Sure, the mass production of the traditional supply chain will continue. In business, additive technology means that companies are more design oriented, rather than the capital they have closed stores and materials.


  20. Tomi Engdahl says:

    When the middle class is being deceived

    Business leaders unreasonable fees, the elite and the Gluttony capital district tax paradise contats receive regular employees feel betrayed. This is the assessment experts. What does all this imply?

    In recent weeks, the news has undermined confidence in the rapidly ordinary wage earners of society and the reasonableness of the top-level sense what is right and wrong

    Elite play politics often conceived as an error: it only thinks about the legality of its operations – it is not what it looks like.

    The people are stirred up, among other things, the Nokia head Stephen Elop dubious merits received a gigantic bonus pot, elite exuberance telling Björn Wahlroos unofficial biography , Mr. Casimir Ehrnrooth tax haven, hidden in millions and Jorma Ollila secret held by a foreign investment company.

    At the same time, is said to have structural changes “bittersweet each of the” . Wage increases were followed close to the zero line of the employers requirement, and the purchasing power of a wage-earner may even decrease.

    - This is quite hard to break it, from the social contract is said to be a question of political history at the University of Helsinki, Professor Pauli Kettunen says.

    - The middle class will have to get used to the idea that the elite groups do not belong anymore, “us”, but rather represent global capitalism, outside the national society.

    Our highly trained, the working middle class is the main source of economic growth. The idea of ​​’middle-class’ project, which through training and by working to become wealthy, is disappearing.

    - It is very difficult, if people lose hope, or the idea that they can build their lives rationally. The idea of the social and economic rise has brought stability and predictability to society, and now it is disappearing, communications lecturer at the University of Anu Kantola says.

    Middle-class status is difficult to overstate, the researchers say. If the middle class does not ensure the subsistence of his act work in practice, the whole of society, it does not do any of the.

    - Our society is the idea that power can be taken out when the greatest possible proportion of the population is educated and connected to the world of work, Anu Kantola says.

    The public sector is largely a justification for the working middle class depends on. It is alarming in terms of public debate, more and more often repeated view that the productive and valuable work focuses almost exclusively in the export sector, for example, is not the state or municipalities.

    - The welfare state legitimacy is essential that the middle class is experiencing the welfare state as their own

    - Unemployment and Non-aside has been seen for a long time really expensive for society, but for now, this attitude is disappearing, Anu Kantola says.

    - These two phenomenon is a clear gap. To achieve success in working through is becoming more difficult, but at the same time emphasizes the importance of the work even more.

    The difficulty is often to achieve the objectives of the surrounding reality, not an individual is performing.

    In reality, the work does not seem to matter how enriching to make an effort, but fortunes are earned just by other means than an employed person. Then the motivation drops.

    - Middle-class life has become much more risk based and more dangerous. Over time, this can lead to committed employees finding it more difficult than before, says Anu Kantola.

    Especially a lot of employees believe in eating kicks among the shared management of the enormous fees. Also, the premiums lame arguments. For example, Nokia Elop explained due to the premium only award.

    - It was said to legitimize the premium, although really it should alert you that there is a structural element – the contract – which can produce such an outcome, Kettunen says.

    What discontent

    While continuing to dissatisfaction and uncertainty exacerbated by social confrontation. For example, in the United States are already talking about making a general of the elite “one percent” who live at the expense of another 99 per cent.

    - European Even the middle class no longer feel the old structures to work, it is quite clear, Weems says.

    A striking feature is the lack of political alternatives. No one does not offer a credible alternative for cutting policy and able to compete in marketplace, and the Left in the lagging historically unprecedented hit rock bottom.

    If a credible political alternative does not exist, which is channeled discontent? Historical examples do not bode well.

    - Most of the middle-class discontent talking about fascism and national socialism, the rise in the background, Kettunen says

    - It seems that the discontent is already a pretty widespread.


  21. Tomi Engdahl says:

    When the Finnish companies claim to be innovations, one might think that they emerge as the conveyor belt. When the government or a donor representatives speak, innovation is sorely lacking.

    Unfortunately, the latter outfit is right. Finnish companies get products for the vast majority of existing products, improvement, re-positioning, packaging and branding of existing products, or re-heating.

    Finnish everything from product development to only six per cent of the right to produce innovations, ie, by definition, completely new, commercial launch and commercialization of the products, which are in demand in the market. International average is 17 percent.

    However, Finland invests heavily in research and development, the highest in Europe. R & D share of GDP is about four per cent, while the international comparison number is half of this.

    The contradiction is devoid of common sense. Major inputs are non-existent amount of the desired results.

    We have already been warned by the European Commission last April by the report pointed out that Finland will become less competitive, because product development investments, too few innovations used in relation to money and highly-trained workforce.

    Finnish management consulting firm Synergy Group Europe carried out a survey last spring, which was attended by 50 major Finnish company’s R & D decision-makers. “The study showed that all the participating companies was clearly room for improvement,”

    In Finland, the money is not the main obstacle to innovation. “The participants emphasized such factors as the lack of ideas and non-functional brainstorming processes. Although the company would use the time and resources in product development, corporate culture does not support the creation of innovation, “Winquist said.

    Shortage of innovation also leads to the fact that often a new creation takes a lot more time than the former product or brand enhancement.

    In the short term, product enhancements, and works to keep owners and investors satisfied. In Finland, as many as 56 percent of the product development investments redirected to the current enhancement of products and product applications for making, while the corresponding figure is 23 per cent globally.

    “Mainly in the global market, firms have almost twice as many innovations as compared to the product portfolio of domestic and neighboring markets, focusing on companies,”

    Innovation has contracted a company in trouble will not die right away, but first suffer from withering a long time. The Finnish food, furniture and electronics industry would die out because they have not been able to bring new products to consumers stimulant.

    In synch with the overall picture is also bright spots. Rovio and Super-success stories are familiar, but the innovations generated elsewhere.


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  23. Tomi Engdahl says:

    Broadcom dismissed all of Oulu, Finland

    American manufacturer of wireless circuits Broadcom has terminated all of Oulu unit employees. Oulu unit kicks out involves approximately 450 employees. Broadcom modems will continue the development of the United States. Previously, the company announced it was withdrawing completely modems development.


  24. Tomi Engdahl says:

    European semiconductor distribution market grew rapidly in the second quarter. Unfortunately, the increase did not reach the Nordic countries up. Dmass organization of the semiconductor sales in the Nordic countries decreased by 8.7 per cent in the second quarter.

    Industry in the Nordic countries were sold in the second quarter semiconductors for 141 million (for comparison Germany was April-June was EUR 514 million).


  25. Tomi Engdahl says:

    Ericsson to stop the modem developments in Finland – under threat of redundancy 122

    The new strategy Swedish Ericsson does not intend to prepare yourself for mobile phones modems (component responsible for 3G and 4G networks data transmission) , but to focus on radio networks in component development.

    Discontinued operations are Ericsson and semiconductor company STMicroelectronics co-operation ST-Ericsson’s former employees. Co-dissolution in August last year modem development was transferred to Ericsson. Internationally Ericsson’s LTE modem developments in the killing of about 500 jobs are exhausted.

    Ericsson Finland, Director of Communications What Nummenpää says that the company is looking for new employees in Finland currently working with IP networks development. In these jobs, laid off are seekers priority if their skills only suitable jobs.

    In the past, the American Broadcom announced his resignation of mobile phone modem development (former Renesas company modem development unit that was until 2010 a part of Nokia). It led to nearly 500 workers laid off in Oulu.


  26. Tomi Engdahl says:

    “The mind pictures do not give succeed”

    Finnish supply industry will meet this week in Tampere Subcontracting Fair. The event yesterday promised the Family Business Association President and CEO Matti Vanhanen pointed out that success in the international market be achieved simply by mental images.

    Vanhanen says Tampere Trade Fairs Web magazine, that we may exaggerate the Finnish know-how in the world appreciation. – I believe that internationally Finland is connected to positive images about in general, but trading will eventually determine precisely the products of the company in question, as well as experience gained in quality and reliability, Vanhanen emphasizes.

    Former Prime Minister muistuttaam that we have lost our global trade. – Exports are at a lower level than in 2008, we really do not get complacent, that Finnish would sell itself. Each race must be won at the enterprise level.

    - If the evaluation criteria used for the quality, price competitiveness, stretching from the production of which, and after-care, so I think that it is the quality and after sales service, we have good, says Vanhanen.

    According to him, the cost competitiveness of our country has problems, and our ability to be flexible in working hours, for example, is weak.

    Vanhanen calls for flexibility in the labor market.


  27. Tomi Engdahl says:

    Ericsson’s decision to end cell phone modem development

    Ericsson announced yesterday the close down of cell phone modem product development. All in all, the decision will lead the company in 1700 the employee’s dismissal. Some of the kicks is also directed to Finland, where Ericsson has been strong in product development.

    Ericsson is the co-determination negotiations, the message from the 30 modems developers in Oulu. In Turku, the negotiations will have 92 employees. It is estimated that Ericsson would be off the message Finland, about 100 employees, or about one in ten would chuck.

    Ericsson’s decision is a shock, of course, the company’s employees, but no big surprise it is not. Ericsson got the modem business last year from ST-Ericsson joint venture with STMicroelectronics. At that time the target was third place LTE modem chips on the market.

    This is now proven to be un-realistic market, which is held a sovereign by Qualcomm. The only company capable of competing with it is Mediatek. Even Intel has great difficulty in obtaining design wins as a modem.

    Ericsson’s GSM modem business eventually went the way of Nokia, although at a slower pace. In time, both companies are leaning cellphones strong for your circuit design. Ericsson’s radio modems were generally technically the best.

    Nokia’s modem unit myths out of the end of this year. The unit was sold to Renesas for the first and last year Broacomille.

    The problem ended up being the same as the Ericsson: expensive R & D does not lead to a major design wins result of people reporting or customer contracts.


  28. Tomi Engdahl says:

    Finnish PM: Apple has DESTROYED FINLAND
    Well, the mobile phone manufacturing bit, anyway

    The Prime Minister of Finland has claimed that Apple destroyed his country’s biggest industry: mobile phone manufacturing.

    As if that wasn’t bad enough, Alexander Stubb went on to say that Cupertino had also annihilated the paper-making industry, which was his nation’s other pride and joy.

    “We have two champions which went down. One could say that the iPhone killed Nokia and the iPad killed the Finnish paper industry, but we’ll make a comeback,” Prime Minister Alexander Stubb said.

    However, a leading Finnish analyst has rubbished the PM’s claims, telling us that Nokia “committed suicide”.

    “This claim that Apple killed two big industries is not true. It’s a way to put the blame on someone else.”

    Strand has written extensively on the Nokia collapse, often aiming a swift kick right to nether regions of former CEO Stephen Elop, whom he has previously described as having a “dream of creating shareholder value like Gordon Gekko but ending up as Mr. Flop” instead.

    He tracked Nokia’s failure back to the Stephen Elop’s “burning platforms” memo, in which he admitted falling behind competitors and heralded the end of the Symbian platform.

    “Elop was not capable of communicating,”

  29. Tomi Engdahl says:

    Finnish research going gown:

    Four offices abolished: VTT is to reduce the more than 300 employees

    VTT Technical Research Centre reduction of approximately 335 employees, of which about 250 are terminated.


  30. Tomi Engdahl says:

    53 000 jobs have disappeared in six years

    Finland’s technology industry has had a gigantic restructuring. After 2008, the entire industry has lost as many as 53 000 jobs, says Technology. Technology firms still hired continuously by new arrivals. Last year, 20 were recruited 000 new employees. This year, the recruitment pace has accelerated since the January-March 7000 got a new job a worker.

    All in all technology areas 273, 000 people worked at the end of last year. The electronics and electrical industry employed 114 000 workers and the machinery and metal products industry 119 000 employees.

    Consulting-industry companies wages earns a total of 6,000 employees.


  31. Tomi Engdahl says:

    Change for better seen?

    In past years, there was much talk of China-phenomenon, the Finns took the volume of production to lower-cost countries. Tampere Xortec shows that even at home can produce electronics as business – company even wants to talk about the renaissance of the Finnish electronics industry.

    Large operators have already transferred their manufacturing back to Europe. Xortec is anticipated change for the better by investing in new, automated production line and double up the production facilities.

    - We did not want that better times will surprise us with his pants down. Thanks to new machines we are able to typeset the quadruple speed without compromising the level of service for smaller customers, Xortecin CEO Seppo River Bridge says.

    Domestic electronics went down about properly. Those who remained behind, are doing now quite well.

    - Compared to the Chinese kilpaveljiin Finland’s interests are central location, consistent quality, fast delivery and high manufacturing and design expertise. We are internationally competitive, because we have modernized our production and to reduce the loss

    Internet of things also provides opportunities for growth, such as Xortecin on a global scale small, but specialized contract manufacturers

    - Whether the Finnish industrial Silicon Valley Internet, depends on companies ‘ability to identify customers’ changing needs quickly enough and to cooperate across sectors.


  32. Tomi Engdahl says:

    It seems that change for better is coming:

    Finnish electronics is growing now

    Finnish electrical and electronics industry has lived many lean years in a row. Semiconductors specializes in the distribution Fintronic sees that we are now heading in a better direction. – Now comes the real growth and that growth will come from Finland

    Component importers’ association Elkomit to predict its members for sales to grow this year by 10 per cent. The organization predicts the year, total sales of EUR 487 million.

    Fintronic growth will be 20 percent this year.

    - It’s hard to say where the spike came from. There was no particular destination, that have sold more clearly.

    Finnish electronics have returned to normal after the boom of Nokia. The companies must realize that here is a lot more know-how. New growth is created specifically for new ideas.

    - We have everything in order from design to manufacturing and distribution. It should just come up with these new innovations.

    What innovations have they, then? Finding them is a key loss for businesses, but it is also the most difficult task.

    - Yes, they somehow at that the Internet of Things and smart sensors associated with


  33. Tomi Engdahl says:

    Led lights from Kajaani – Finland won the China production

    Finnish led tube manufacturer of power light showed the Kajaani mill in China’s factories more profitable. The advantages are brought about by automation and cost-effectiveness of exceptionally good quality. All end products are also tested in a fully automated way.

    Valtavalo R & D is located in Oulu.
    At first tubes were being manufactured in China, but in 2012 the vast Light decided that the production is better to keep at home rather than in China. The company moved its entire production back to Kajaani.

    “I had to design a whole new way with the product and a production line that allows us to compete with low-cost labor countries”


  34. Tomi Engdahl says:

    Demand for components on the rise

    European component of the trade is kavsanut for a long time and now finally the growth seems to have entered the “base keeper”. Electronic components and measuring importers’ association Elkomitin the demand components grew in the first half of the 10 per cent.

    Elkomitin, this suggests that industrial orders are also increasing. Electronic components are used more and more widely the electronics industry, but also in almost all machines and equipment.

    One of electronics drivers, internet of things, which is also one yesterday that Elkom Fair of the main themes. Elkomit sees that Finland has a strong IoT expertise and fast-growing markets offer opportunities for a wide range of definitions of small enterprises. Several industrial internet products are available immediately at birth products, with its market area throughout the world.


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  36. Tomi Engdahl says:

    PPO Electronics has made a special emergency center: self-designed and manufactured in Finland. The company responsible for the production of Petri Pelkonen, the “Made in Finland” may continue to be a preferred feature, even in electronic equipment, where global competition is fierce.


  37. Tomi Engdahl says:

    Finland Sweden clearly behind the trade of components

    Dmass Organization (Distributors ‘and Manufacturers’ Association of Semiconductor Specialists), the trade component in the Nordic countries increased last year by almost a fifth. I’m sorry for our purposes is the fact that growth came almost exclusively from the Swedish market.

    Dmass states that Finland is one of Eastern Europe and along the Baltic region, which continued to suffer from the transition to production to Eastern Europe or Asia.


  38. Tomi Engdahl says:

    Things seem to look slightly better in 2016:

    Finnish electronics industry has experienced in recent years, hard. First, set off mass production in China and the Baltic countries, then disappeared Nokia mobile phone production. – However, during the last three months has been a visible clearly better, says Rutronikin Country Manager Juha Ahonen.

    - It appears that many customers have gone a little better in recent times. In particular, wireless has been a pick-up, he says.

    According to Ahonen’s new move to explain the old Nokia soles. – Former Nokia employees to set up and apply for Startup modules products. And these companies leave immediately pursue global markets.


  39. Tomi Engdahl says:

    Electronics started to grow slightly

    Electronica – Finnish electronics industry has experienced in recent years, hard. First, set off mass production in China and the Baltic countries, then disappeared Nokia mobile phone production. – However, during the last three months has been a visible clearly better, says Rutronikin Country Manager Juha Ahonen.

    - It appears that many customers have gone a little better in recent times. In particular, wireless has been a pick-up, he says.

    According to Ahonen’s new move to explain the old Nokia soles. – Former Nokia employees to set up and apply for Startup modules products. And these companies leave immediately pursue global markets.


  40. Tomi Engdahl says:

    So now began to rise – the electrical and electronics industry grew the most
    - 12/13/2016

    Turnover in manufacturing increased in the third quarter by 2.3 per cent compared with the previous year. Most increased electrical and electronics industry. Metal and forest industries increased in July-September was 4.2 per cent.

    Net sales grew in almost all sectors of industry, from the corresponding period of the previous year. Electrical and electronics industry growth came to 5.5 percent, and the forest industry and the metal industry, by 4.2 per cent.


  41. Tomi Engdahl says:

    Finnish production rises

    According to Statistics Finland, industrial output grew by 1.3% in June from the year before. The best growth in the electrical and electronics industry – more than nine percent. New orders for the manufacturing industry grew steadily.

    Industrial output grew in addition to the electrical and electronics industry, and in June, the chemical industry grew by 4.6 per cent year-on-year. Production in the metal industry increased by 3 per cent and in the forest industry by 1.7 per cent. The largest decrease in mining production was 18.3 percent.

    The total working day adjusted production in the industry grew by 2.3 per cent in January-June.

    The rise in Finnish production will continue to grow, as new orders in industry rose by 11.9 per cent from the year before. In January-June, orders grew by 20.0 per cent year-on-year.


  42. Tomi Engdahl says:

    The technology industry grew – electricity and electronics +10 percent

    The turnover of the technology industry companies in Finland grew by 10 per cent last year, totaling EUR 74.1 billion. Half of the increase was due to the increase in production volume and the other half of the increase in raw material and component prices. The shipbuilding industry grew the best. The electrical and electronics industry grew by ten per cent.


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  44. Tomi Engdahl says:

    I’m out of cell phone-Nokia’s legacy

    (Embedded World, Nuremberg) Peter Hellström is currently responsible for Analog Devices sales in Central Europe.

    Hellström’s criticism was above all that Nokia’s outsourcing culture, which dominated the mobile phone industry, led production to cheaper countries and tried to squeeze component prices down to a minimum. This undermined innovation and contributed to the desirability and quality of the mobile phone-Nokia products. Hellström emphasizes that the current Nokia network has always worked differently.

    According to Hellström, Finns could take a model from Germany. According to Hellström, there is a solid, often family-run small and medium sized company that wants to compete by being the best. Often, this means choosing innovative, slightly more expensive components.

    - Now there are clear signs that Finnish companies are at the same time on the move. Of course, such companies have always been, Hellström says and raises for example Vaisala.

    Why is culture emphasizing innovation important? The reason is simple. It is the only way in which Finnish companies can succeed. “As long as the products are planned in Finland and using the best technologies, we all do well,” Hellström recalls.


  45. Tomi Engdahl says:

    According to the latest statistics, the cyclical situation in the Finnish technology industry is still strong, with net sales expected to be higher in spring and summer than in the corresponding period last year. But worryingly, growth seems to be signs of deceleration. However, large orders widen figures from month to month.



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