Importance The article discusses the issues of development of the woodworking industry of Russia and considers Finland's experience in this field. Objectives The article aims to specify the institutions and organizational and economic mechanisms conditioning and favoring Finland's transition to added-value wood processing. Methods For the study, I used a factorial analysis and the cliometric method. Results The paper presents the results of the analysis of the four-phase reform of the Finnish forest industry. It shows how the strategy of import substitution in the wood industry based on borrowing the advanced technologies allowed Finland to diversify the structure of production of the wood processing industry. Conclusions Russia can use this experience to reform its own forest sector and introduce the measures of the kind. This can help Russia achieve good results in the development of high-level processing of forest resources.
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