Special Economic Zones as a Restorer of Vitality in Eastern Finland – International Lessons and an Eu-Compatible Model in The Economic Crisis
Reponen, Jari (2025)
2025
Master's Programme in Leadership for Change
Johtamisen ja talouden tiedekunta - Faculty of Management and Business
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Hyväksymispäivämäärä
2025-11-19
Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:tuni-2025111710685
https://urn.fi/URN:NBN:fi:tuni-2025111710685
Tiivistelmä
Previous research has established the position of Special Economic Zones (SEZs) as a global tool for regional development, but their suitability in the EU context has not previously been examined from the perspective of Eastern Finland. This Master's thesis contributes to the debate by examining how SEZs could strengthen the vitality of Eastern Finland in the midst of the ongoing economic crisis triggered by the closure of the Russian border. The research draws on international SEZ models (Poland, Czech Republic, Ireland, China, Italy) to propose an EU-compatible framework tailored to the structural challenges of the region.
Key concepts are special economic zones, regional resilience and EU state aid compatibility. The analysis is set in the Finnish multi-level governance, where national policy meets EU regulation and local needs. The empirical material consists of policy documents, economic reports and international case studies (n = 85), which were analysed using qualitative comparative policy analysis and summative content analysis, supplemented by thematic coding.
The results show that only 28% of Finnish regional development documents for 2022–2025 explicitly mention SEZs, and most frame them as potential crisis measures. The analysis identified six key dimensions of SEZ applicability: legal feasibility within the framework of the GBER, infrastructure and logistics readiness, RDI and knowledge networks, sector-specific smart specialization, administrative agility, and stakeholder coordination. The Polish and Italian models show that qualitative criteria (e.g. RDI intensity, green compatibility) and digital one-stop-shop administration significantly improve the SEZ impact. The Shenzhen model emphasizes innovation-led growth, but its transferability to the EU is limited.
The proposed SEZ model for Eastern Finland combines GBER-compatible incentives (art. 14, 25–30, 36–52), multimodal logistics hubs (TEN-T policy) and tripartite governance (municipalities, companies, employee organisations). It prioritises bioeconomy, low-carbon energy and sustainable tourism, utilising the region's strengths (universities, forest industry clusters). Difference-in-differences impact modelling is recommended for monitoring results (employment, FDI, carbon footprint).
The study concludes that SEZs are not a universal solution, but a strategic crisis response when embedded in EU legislation, local strengths and adaptive governance. It highlights the tension between economic urgency and regulatory constraints, underlining that institutional agility and stakeholder trust are as critical as fiscal incentives.
This study contributes to regional policy theory by contextualizing the viability of SEZs in crisis-ridden, peripheral regions in the EU. It opens up future research opportunities, such as longitudinal impact studies, comparative Nordic SEZ analysis and local stakeholder attitude surveys. In an era of geopolitical upheaval and green transition, the results provide an actionable blueprint for the revitalization of Eastern Finland and a model for other EU border regions in need.
Key concepts are special economic zones, regional resilience and EU state aid compatibility. The analysis is set in the Finnish multi-level governance, where national policy meets EU regulation and local needs. The empirical material consists of policy documents, economic reports and international case studies (n = 85), which were analysed using qualitative comparative policy analysis and summative content analysis, supplemented by thematic coding.
The results show that only 28% of Finnish regional development documents for 2022–2025 explicitly mention SEZs, and most frame them as potential crisis measures. The analysis identified six key dimensions of SEZ applicability: legal feasibility within the framework of the GBER, infrastructure and logistics readiness, RDI and knowledge networks, sector-specific smart specialization, administrative agility, and stakeholder coordination. The Polish and Italian models show that qualitative criteria (e.g. RDI intensity, green compatibility) and digital one-stop-shop administration significantly improve the SEZ impact. The Shenzhen model emphasizes innovation-led growth, but its transferability to the EU is limited.
The proposed SEZ model for Eastern Finland combines GBER-compatible incentives (art. 14, 25–30, 36–52), multimodal logistics hubs (TEN-T policy) and tripartite governance (municipalities, companies, employee organisations). It prioritises bioeconomy, low-carbon energy and sustainable tourism, utilising the region's strengths (universities, forest industry clusters). Difference-in-differences impact modelling is recommended for monitoring results (employment, FDI, carbon footprint).
The study concludes that SEZs are not a universal solution, but a strategic crisis response when embedded in EU legislation, local strengths and adaptive governance. It highlights the tension between economic urgency and regulatory constraints, underlining that institutional agility and stakeholder trust are as critical as fiscal incentives.
This study contributes to regional policy theory by contextualizing the viability of SEZs in crisis-ridden, peripheral regions in the EU. It opens up future research opportunities, such as longitudinal impact studies, comparative Nordic SEZ analysis and local stakeholder attitude surveys. In an era of geopolitical upheaval and green transition, the results provide an actionable blueprint for the revitalization of Eastern Finland and a model for other EU border regions in need.