Presentation
The Role of Small and Medium Enterprises in Bridging the Digital Divide and Government Policies to Empower SMEs: the Finnish Perspective

Mr. Pekka Lindroos
Commercial Counsellor, Industries Department, Ministry of Trade and Industry, Finland

The Finnish Ministry of Trade and Industry has various responsibilities, including technology policy, competition policy and consumer protection policy in Finland and in Europe.

There is a digital divide in almost every economy in Europe, between the old economy and the new economy. This is based on the fact that the knowledge-based economy is not spreading to the optimal extent. There are the traditional sectors and the SMEs, which cannot develop tools for IT at an optimal pace. There is much to be done on increasing the productivity and uptake of the digital economy. This is also a problem for Europe, which is falling behind in productivity, and enterprises must realize that productivity leads to economic growth.

It is the productivity of enterprises that runs the economy and permits the expansion and realization of the digital opportunity, and this fact should be constantly restated. We need the opportunity for every sector to make use of digital tools. In addition, the working life is the best means of bridging the digital divide among the adult population. Adults many learn their IT skills through their working lives and the greater the number of digitalized enterprises, the greater the number of skilled IT human resources there are likely to be.

In the promotion of SME businesses, competitiveness and productivity are foremost considerations, in addition to entrepreneurial strategy. Governments have two sets of tools to influence enterprise e-competence: the general tools of developing the business environment, and particular targeted policies to encourage companies to adopt e-tools.

On the side of the business environment, it is important to establish an innovation system, as well as market rules and policies to develop knowledge and skills. This is achieved through a number of pilot projects aiming at the enhancement of competence in e-commerce. The innovation system is an important one, for example, in the 1990's Finland's investment in R&D exceeded 3% of GDP, a very high figure, and the Finnish government believes that this level must be maintained in the future. Networks of regional centers of excellence must also be established, coupled with adequate financing for innovation and venture financing, an area in which Europe is trailing.

Skills and knowledge are also closely linked with the innovation system. For example, there is an independent association that has developed a computer driver license examination system in Finland, to provide a network through 400 schools. In addition, a further project is the SME e-Strategy evaluation, which relies on an enterprise competence training network through a regional network to offer subsidized expert services to enterprises.

Market rules in Finland are set at the European level, and internal market harmonization is a particularly important focus in Finland.

One of the centerpieces of government action is the digital administrative services, and it is the role of the Ministry of Trade and Industry in Finland to heighten legal tax and company registry obligations in the IT sector, in cooperation with the Ministry of Finance. In addition, enterprise services, as well the establishment of a public procurement portal, are also required by government.

SME e-Competence consists of awareness, creation, technical competence, strategic insight, organizational change and financial competence. Finland is just embarking on this kind of analysis into e-competence, but it is recognized that coordinated actions on the national and European level are important.