THUNDER BAY, ON - February 5, 2009 - Paavo Löppönen presented a session titled 
Knowledge-based Transformation in a Global World, at the recent “Think North Summit. Using the example of Finland, Paavo went on to show that it is possible to turn a crisis into an opportunity. The question he and other had to address was how to save and restructure a small nation?
Finland from 1990-95 went from full employment to 18% unemployment. GDP had fallen by 13% during that time as well. Nokia with government support began restructuring towards an information society. From 1995 onwards, Nokia transformed from a pulp and paper company to the world’s largest maker of cell phones, The Finish government reassessed its position in the global labour market and developed new policies to suite that assessment, the recession was not followed by strong growth in domestic demand, but by rapid structural change and an export led economy. Membership in the EU in 1995 opened up the whole economy and society. Eventually these changes led to a new political reality in Finland.
Löppönen cautions not to copy some recipe for success. “There are none suitable for all”. Just the same there are valuable lessons from his session that we need to use and adapt to our situation. Economic crisis forced Finland to take an honest look at itself as a member of Europe, and globally. From this view came a balanced combination of policies which addressed past mistakes as well as plotted paths for new investment in the future. In the process they came up with new ways for developing new policies. In our area we have to look at our selves in much the same way, and develop policies that will do the most good for our people.
His statement that it is possible to go from crisis to recovery using a knowledge-based economy can apply to our area also. A knowledge based economy does not mean that everyone needs a PhD in order to earn a living. “Knowledge economy is an ensemble of elements which are in balance”, he went on to say “not necessarily lack of technological infrastructure or innovations, but possibly education, incentives, and public notices.
I found his comments on knowledge interesting. “Knowledge can grow without limits”, Löppönen continued by saying that in sharing knowledge there is more for all. Knowledge is the tool that will generate growth and value from our traditional resources. To succeed we must apply as much knowledge to our production as possible. In Finland they chose to concentrate on their cluster of forest industries, metal products, and mechanical engineering, energy and environment, health and well-being, information and communication industry. What will our choices be?
Paavo’s main messages can be summed up thusly;
• You can turn a crisis into an opportunity
• It is possible to combine economic success, excellence in knowledge economy and sustain social cohesion.
• Develop your own success recipe, don’t copy another.
• A knowledge based economy is a balanced ensemble of elements.
• Institutions matter a lot, (colleges, universities, hospitals, research institutes, centres of excellence.)
• Policies must be clear, well planned and long term.
• The stakeholders in the new economy must be committed, and transparent.
• We must institutionalize a forward thinking process to help us guide policies for future development so that this process keeps on growing.
Mr. Löppönen currently holds the position of director Foresight and Development at the Academy of Finland. Far sighting is a structured procedure that encourages insightful discussion and the free flow of ideas. It is an important tool for government, industry leaders to help them prepare for the future. In Finland this process had worked to maintain a well-being society and a world class innovator. We can do the same hear in the North.
Bert Rowson
LakeSuperiorNews.com