India, Finland may ink R&D pact

Finland is planning to sign a memorandum of understanding (MoU) with India for co-operation in science and technology (S&T). The MoU is expected to be signed in the next 3-6 months.

"Preparation for co-operation in the field of science and technology is under way. The main idea is to build long-term research and development (R&D) co-operation in the fields of information and communications technology, life sciences and engineering," said Mauri Pekkarinen, Finland's trade and industry minister in an exclusive interview to Business Standard during his visit earlier this week.

Pekkarinen was on a two-day visit to India to sensitise the government and corporates about the investment opportunities in the Baltic Sea Region.

The annual growth in R&D investment of the Baltic Sea Region in 2005 was around 6 per cent. Sweden's R&D expenditure in 2005 was 4 per cent of its gross domestic product, followed by Finland's 3.5 per cent and Denmark's 2.6 per cent.

"The Baltic Sea area is perceived as the most competitive in the region and has lots of advantages for potential investors. We are all European Union (EU) member countries. The EU, without any discrimination, grants funds to the companies interested in investing in the region. The grant varies according to the nature of economy of the country for which the investment is meant," he said.

"We have an excellent workforce and technology facilities. The area is more advantageous for the companies that require advanced technology and skills. Also, the area has a wide market reach," he said.

Of the total exports in 2005, Denmark exported 69 per cent to the EU and 1.4 per cent to Russia. Finland exported 56.8 per cent to the EU and 11 per cent to Russia. Out of Sweden's exports, 58 per cent was to the EU and 1.6 per cent to Russia.