There is no doubt that Finland and Finnish higher education have made gigantic strides in this domain since the early 1990s in the immediate aftermath of the break-up of the Soviet Union. Before 1990, for geopolitical reasons, Finland was rather introverted, both politically and educationally, as was evidenced by university strategic reviews in the 1993 period. This has demonstrably changed attitudinally, instrumentally and in international visibility - but so have other systems - and the issue of parity partly remains.
Many documents reinforce the need to continue the internationalisation of the workforce in Finland. Both the composition of personnel in the higher education sector as well as the student body are less influenced by international exchanges than those in most other OECD countries. Also in the Finnish society outside higher education, international contributions to the part of the labour force that has a background in tertiary education are relatively rare: this important group of workers benefits little from an influx of highly skilled foreigners as it does in many other industrialised countries. This is a consideration weakness at a time when internationalisation of R&D environments and access to the best “brains” available are increasingly important for the development of academic, industrial and commercial excellence and competitiveness.
It could be contended that, in spite of its recent impressive industrial success, Finland is a loser in the increasingly important international competition for talents and brains. The part of the Finnish work force that has higher education degrees includes 0.9% of persons from other OECD countries, compared with 7% in Sweden and the US and 20% in Switzerland. Not only does Finland benefit little from this kind of important talent, it also provides a relatively large share of its higher education based work force to other OECD countries. This loss corresponds to 6.8% of the total work force in Finland with tertiary education. In other words, Finland
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has a net loss of almost 6% of its tertiary level workforce, while other, comparable OECD countries have large gains.
The problems are not only related to the exchanges with other OECD countries. Many industrialised countries benefit significantly from immigration of highly education persons from countries outside OECD, mostly from developing countries. This is often referred to as brain drain and is by many developing countries considered highly unfortunate. However, this import is an important driving force in the science and technology systems of some large, industrialised countries. In contrast, Finland only receives an input of highly trained labour from countries outside OECD corresponding to 1.3% of the relevant work force in Finland, compared to 7% in Sweden and 9% in the US. In other words, Finland is one of the few new losers of “brains” among the wealthiest OECD countries, with a combined loss of almost 5% and this applies, of course, to holders of Masters and doctoral degrees in significant disciplines.
A study from 2004 of the internationalisation of Finnish science and technology actually lists among the strengths identified that the brain drain from Finland is not very large (Science and Technology Policy Council of Finland, 2004). One may argue that almost 5% of the work force with tertiary education is not an insignificant number. In addition the importance of advanced R&D makes Finland highly dependent on the ability to attract talents from other countries; it is not enough to be able to limit the loss to less than 5%. The present inability to compete for talents is a considerable weakness in a country that is heavily dependent on its international competitiveness within higher education, research, development and industry.
Future labour market needs are also an important contextual factor. The low level of input from abroad may become an increasing problem as the age-profile of the Finnish population changes towards a situation where a large share of the work force has retired from the labour market and a much smaller share than today are working. However, the situation is not simple; according to a recent study of future labour market needs in Finland, the needs in individual fields will change in different directions during the next decade compared with the present situation. It seems clear that the needs of polytechnic and university graduates in technology, transportation, health and social services will increase considerably. In contrast, the labour market needs for social science, humanities and education graduates will decline, in some cases by 25%, and the expected future intake of new staff within business and administration is expected to drop in basic education by 50%! It may become difficult to satisfy the fast growing labour market needs in technology and transportation at the highest level without an increased input of foreign talent.
7. INTERNATIONALISATION AND GLOBALISATION – 63 The insufficient internationalisation has also serious consequences in other respects that that of highly qualified manpower. For example, the limited amount of international exchanges makes it more difficult to gain rapid access to new research results produced elsewhere and reduces the opportunities for cost sharing in larger research projects. Most of all, Finnish research cannot benefit fully from the important processes that occur when expertise from several research environments are brought together.
As far as foreigners in Finnish higher education and industry are concerned, a very recent study among foreign Ph.D. students and researchers employed in Finnish higher education institutions, research institutes and industries provides interesting insight in the composition of this group and the conditions they live under in Finland. The study includes about 850 foreigners, with an average age of 34. About one third of the foreigners are women, and more than 90% have a Masters, Licentiate, or Ph.D. degree. About 60% are Ph.D. students at Finnish institutions and almost 80% of the total are financed by Academy, TEKES, or university grants. The most common citizenship among the group is Russian (12%), followed by Chinese (11%) and German (6%). The vast majority (almost 80%) has a background in science, technology, agriculture and medicine. It is a clear weakness that the majority of these highly education foreigners are graduate students and do not represent employment-based immigration. Furthermore, only 48% of the group intends to stay permanently in Finland; it is remarkable that this percentage is even lower among persons from developing countries.
Finland, of course, has been a strong supporter of the European Union, and this has certainly contributed to substantial economic and regional development initiatives and achievements, which have been very significant in establishing Finnish universities in the forefront of regional growth (i.e. regional growth inspired by international vision and engagement) which is well documented in recent studies (e.g. Goddard et al., 2006). Furthermore, Finland has been extremely active in promoting the elements of the Bologna process internally and internationally, and is acknowledged in European circles as a leading proponent and exponent. The potential of this is clearly of great significance in terms of this chapter.
However, Europeanisation is different from globalisation, and the recent developments in GATS/WTO of higher education in the free trade context, will undoubtedly create challenges e.g.:
− The possibility of other national (non-Finnish) providers parachuting courses (by virtual or camps-based learning) into Finland – thus introducing a serious competitive threat, especially if these were offered in English.
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− The extent to which Finnish institutions can – or would want to be – serious players on the global stage – whether in terms of providing education in other systems, via sophisticated e-learning or by physical provision, franchising etc., or by the enhanced recruitment of students to Finnish universities.
− The increased pressure to reconceptualise the nature of inter- provider alliances (with HEI and commercial operators, home and abroad).
We return to this later, but it is evident that this complex context will certainly create policy and operational issues for resolution.