The Helsinki Business Hub, the facilitator of business needs for the highest growing capital city of Finland, is planning to invite potential buyers for industrial facilities including pharmaceutical R&D and manufacturing firms in the state due to the threat of high growth rates of ageing population.
The Indian pharmaceutical companies interested to acquire facilities in Europe can buy out the facilities and the hub can initiate a buyer-seller meet for better results, informed sources from the business hub. The high rate of ageing in the country has resulted in lack of manpower in higher management posts and several companies based in Finland are ready to hand over the facilities to potential buyers.
"I think that the small and medium entrepreneurs in Indian pharma can leverage momentum in European markets through acquiring facilities in Finland. Some of the pharma companies and pharma related companies are ready to be acquired at present and if we get a collective industry response we are ready to identify more," said Najmal Hasan, distinguished advisor, Helsinki Business Hub.
According to a study in 2004, Finland is the fastest ageing society in European Union (EU). The country has about 5.2 million inhabitants and the share of people aged 65 years and older is predicted to increase from 17 per cent in 2010 to 23 per cent in 2020 and 26 per cent in 2030. Many of the companies are facing closure as the managing director or chief executive officer of the top management retires.
The acquisition of companies can help the Indian firms to enter into EU market and R&D driven companies can find multiple opportunities in Finland, which ranks number three globally in R&D spending per capita. Helsinki has over 6000 researchers in the specialised Helsinki universities and applied sciences universities including the Faculty of Medicine, Viikki Campus for biological science and science campus in the University of Helsinki apart from its centralized research network - VTT - technical research centre of Finland.
Further, the companies also can avail research funding from Tekes, the Finnish funding agency for technology and innovation, which funds R&D and Innovation programmes and direct the spending in this segment in all technology sectors to the tune of 465 million Euro. The European Chemicals Agency (ECHA) is also based in Helsinki and the Helsinki REACH centre (HRC) has been established by the government to promote cooperation in REACH activities and international competitiveness. The Chinese importers and exporters under the banner of China Chamber of Commerce of Metals, Minerals and Chemicals (CCCMC) have a representative office in Helsinki to work with ECHA, informed sources.
However, the rapid growth of ageing population may also pose some threats for the future of industries in Finland, suggests a latest study of Organisation of Economic Cooperation and Development (OECD), an international organisation helping governments to tackle the economic, social and governance challenges of a globalised economy. In a recent economic survey on Finland, OECD warned that the rise in the average age of the population threatens to lead to slower economic growth in the country in the coming years. It also urged more competitiveness and wage flexibility in industries to manage the problem and continue the momentum of growth.