Europe must work hard if it wants to catch up with the U.S. head start in the use of new information and communications technologies in the so-called "old-economy". Many indices indicate, however, that Finland's success in the new economy is better than the European average.

The fourth benchmark report of UNICE,the Union of Industrial and Employers ' Confederations of Europe, focuses on the so called "new economy". It compares the EU countries to the U.S.in particular,where the new economy has developed the fastest, but also to Japan. According to the report, Europe 's competitive edge in the new economy is not too impressive,and no change in the situation has been prompted by the slowdown in U.S. economic growth.

The report notes that Finland 's performance is better than the European average in many areas. After the recession of the early 1990s, Finland 's industrial output has grown clearly faster than in the EU on average,and even faster than in the U.S. Finland 's per capita R&D expenditures are also significantly higher than the European average. Of European countries,only Sweden, Finland and Switzerland approach the U.S. level.

The share of knowledge-intensive production in GDP is held to be one explanation for why per capita income growth has risen faster in the U.S.than in Europe.The share in the U.S. is 44 per cent,while in EU countries it is only 33 per cent. Finland 's share is 39 per cent. In the OECD 's definition, the knowledge-intensive sectors refer to high-tech and medium-high technology, communications services, finance, insurance and other corporate services, as well as community, social and personal services.

INFORMATION SOCIETY INFRASTRUCTURES THE MOST ADVANCED IN THE NORDIC COUNTRIES

The actual pace of telecommunications liberalisation in Europe has been slow and it has hindered the development of new services and the new economy. Internet connection costs are generally higher in Europe than in the U.S. The countries in which connection prices are lower than in the U.S.- i..e. in Finland and Iceland - have the most Internet servers in Europe. When comparing information society infrastructures, the Nordic countries fill the top positions. The index used in the comparison covers features such as computer numbers, Internet-servers and education.

A knowledge-based society requires both good basic education opportunities and lifelong learning. Students must be computerliterate when leaving secondary school. Access to an Internet connection is one criterion in determining how well the school system prepares youth to make use of the possibilities offered by information and communications technology. Five EU member countries provide Internet access in all secondary schools. Only Finland and Ireland do so in primary schools.

The willingness of consumers and manufacturers to adopt new products, processes and services influence the pace of technological innovation.Consumers have been very quick to accept for example network banking. European banks and consumers are leaders in the utilisation of electronic financial services. In Sweden and Finland, almost 35 per cent of accounts are already in the Web and the other Nordic countries are close behind.