Pääomavetiseen

Pääomavetiseen is a Finnish term that translates to "capital-intensive" in English. It describes economic activities or industries that require a large amount of capital investment relative to labor or other factors of production. In a pääomavetiseen industry, significant upfront costs are typically associated with establishing and operating the business. This can include the purchase of expensive machinery, sophisticated technology, extensive infrastructure, or substantial research and development expenditures.

Examples of pääomavetiseen industries often include manufacturing, energy production, telecommunications, and heavy industries like mining and steel production. These sectors tend to have high fixed costs, meaning that a substantial portion of their expenses do not vary with the level of output. Consequently, firms operating in these areas often need to achieve economies of scale to become profitable, as the large initial investment can be spread over a greater volume of production. The term emphasizes the dominant role of financial resources in the production process and its influence on the business's operational structure and financial strategy.