Ageing of the population occurs in the industrialised societies and in all fields of society.
Finland is the most rapidly ageing country in Europe - Japan being the most rapidly ageing society worldwide - and this has a significant structural and economic impact (Luoma et al.
2003; Kunz 2007). It is estimated that the number of Finnish people over 75 years old will have doubled by 2040 (Statistics Finland 2007). The ageing of the population together with the difficult economic situation of Finnish municipalities means both an increase in the need for services and a decrease in the workforce because of retirement.
The ageing of the population in Finland is caused by the baby boom generation getting older
this turbulent situation and there are many distances to consolidate, but the collisions and distances can act as platforms of innovations, and play a decisive role in the direction of ageing regime change. Societal stability is based on shared rules and meanings and reproducing these rules, but when there are landscape changes, the old rule systems are not necessarily working any more and must be questioned. Therefore, the change is not functional, but takes place in action and rule-making and rule-breaking. I will argue that there is room for guiding and governing the change in and between the levels. As a crucial factor, the concept of “distance management” is taken, which accentuates the potential of distances and collisions in transition management, which means exploiting the potential of collisions as a source of innovation.
The structure of this summarising article is as follows: First, in Chapter 2, I will go through the issues of ageing of the population, the changing structure of the health care, and technological development related to ageing as landscape changes and as a background of the problem. In Chapters 3 and 4, to understand the central changes in the belief systems in the field of ageing, as a regime, I will discuss the changes in the concept of ageing and the changes in the concept of innovation, which will help to understand the starting points of the socio-technical change. In Chapter 5, I will present the framework of transition theory: the multi-level perspective on transition and the concept of system innovation. This part also forms the theoretical background of my study.
In Chapter 6 I will define the research problem with the research questions, as well as research setting and positioning of the original publications in the chosen framework. Chapter 7 deals with the research approach with ontological and epistemological remarks, and Chapter 8 presents the sets of data and analysis methods used the original publications. In Chapter 9, the results of the study are presented in the context of a multi-level perspective on transition.
In Chapter 10, I will make some final conclusions about the study. Chapter 11 discusses the state and direction of change in the issue of ageing in Finland. Finally, in Chapter 12, I will make some critical reflection about the study.
2 CHANGES IN THE LANDSCAPE
2.1 Ageing of the population and its positive and negative impacts
Ageing of the population occurs in the industrialised societies and in all fields of society.
Finland is the most rapidly ageing country in Europe - Japan being the most rapidly ageing society worldwide - and this has a significant structural and economic impact (Luoma et al.
2003; Kunz 2007). It is estimated that the number of Finnish people over 75 years old will have doubled by 2040 (Statistics Finland 2007). The ageing of the population together with the difficult economic situation of Finnish municipalities means both an increase in the need for services and a decrease in the workforce because of retirement.
The ageing of the population in Finland is caused by the baby boom generation getting older
“age shock” or “gray wave” (Jyrkämä et al. 2009, 147) and the debate is dominated by “a burden” or even “crisis” (Karisto 2007; Healy 2004) interpretation: the focus is on the pension explosion and on the care burden, which is expected to become unbearable when boomers grow old. The care burden is affected by the changes occurring in people´s health and capabilities.
The traditional picture of old age also stresses seeing old people characterised by losses, inevitable decline of the body, illnesses, restraints and disengagement, leading to an increased need for care that increases the cost to society. From the point of view of innovation, this can be called the Old age as a burden point of view. Therefore from this point of view, innovations include encouraging productivity and minimising the growth in health expenditure in the public sector and, for instance, assistive technology that should “repair” or compensate for the losses that ageing causes.
However, the scenario calculations are often based on mechanical and simplified assumptions, not taking into account all the interrelating aspects, like the possible development of medical sciences and technologies, immigration or rise of the education level (e.g. Kiander 2009.) Reduction of the workforce may also encourage and force work reorganisation (Kiander 2009, Saxen 2009) The pressures for an increase in public expenditure are also influenced by factors other than ageing, like the employment ratio and productivity growth. The care burden for society can also be relieved by the fact that most elderly care is family care, and it is expected to increase. Therefore, it is also said that the rhetoric of ageing being a huge unparalleled challenge is grossly exaggerated. (Kiander 2009, 99.) On this basis, a counter-discussion maintains that ageing should not be equated with decline, disability and dependence. Despite a strong public focus on the negative aspects of the phenomenon, ageing of the population does not mean an utter disaster caused by increased retirement, but brings with it new opportunities and positive challenges. (Karisto and Konttinen 2004; Healy 2004; Kunz 2007). Studies show that boomers reach retirement age healthier than previous cohorts (Sihvonen et al. 2003; Martelin et al., 2004; Karisto 2007).
Furthermore, the compression theory suggests that the prolongation of age itself does not dramatically increase care costs, because illnesses seem to be mainly in the last years of life irrespective of life expectancy (Karisto 2007; Kiander 2009). It seems that the elderly are in better condition at least until they reach the age of 80, after which there is an increased need for help. (Vaarama 2009) It should also be remembered that increased longevity is something worth pursuing and supporting (Karisto and Konttinen 2004).
There has been a discussion about the heterogeneity of older people – older persons differ significantly from each other regarding, for example, their health, wealth, behaviour and lifestyle, just like other age groups. The remarkable positive impacts of ageing have been discussed only recently, and this might be mentioned as a change in the cognitive rules in a regime, that might have wider impacts. The positive side of ageing of the populations is that it has meant in particular an increase in the number of years people can expect to be active in their old age (e.g. Karisto and Konttinen 2004). The later years can therefore be perceived as an active, autonomous and independent time of life, in which maintaining the earlier life-style or engaging in new activities are considered to be the central ways of growing old. From this point of view, the elderly are not merely consumers of society's resources. From the point of view of innovation, Old age as an opportunity is connected to seeing old people as active consumers (e.g. Kohlbacher and Hang 2007; Kohlbacher and Herstatt 2008) and active
“age shock” or “gray wave” (Jyrkämä et al. 2009, 147) and the debate is dominated by “a burden” or even “crisis” (Karisto 2007; Healy 2004) interpretation: the focus is on the pension explosion and on the care burden, which is expected to become unbearable when boomers grow old. The care burden is affected by the changes occurring in people´s health and capabilities.
The traditional picture of old age also stresses seeing old people characterised by losses, inevitable decline of the body, illnesses, restraints and disengagement, leading to an increased need for care that increases the cost to society. From the point of view of innovation, this can be called the Old age as a burden point of view. Therefore from this point of view, innovations include encouraging productivity and minimising the growth in health expenditure in the public sector and, for instance, assistive technology that should “repair” or compensate for the losses that ageing causes.
However, the scenario calculations are often based on mechanical and simplified assumptions, not taking into account all the interrelating aspects, like the possible development of medical sciences and technologies, immigration or rise of the education level (e.g. Kiander 2009.) Reduction of the workforce may also encourage and force work reorganisation (Kiander 2009, Saxen 2009) The pressures for an increase in public expenditure are also influenced by factors other than ageing, like the employment ratio and productivity growth. The care burden for society can also be relieved by the fact that most elderly care is family care, and it is expected to increase. Therefore, it is also said that the rhetoric of ageing being a huge unparalleled challenge is grossly exaggerated. (Kiander 2009, 99.) On this basis, a counter-discussion maintains that ageing should not be equated with decline, disability and dependence. Despite a strong public focus on the negative aspects of the phenomenon, ageing of the population does not mean an utter disaster caused by increased retirement, but brings with it new opportunities and positive challenges. (Karisto and Konttinen 2004; Healy 2004; Kunz 2007). Studies show that boomers reach retirement age healthier than previous cohorts (Sihvonen et al. 2003; Martelin et al., 2004; Karisto 2007).
Furthermore, the compression theory suggests that the prolongation of age itself does not dramatically increase care costs, because illnesses seem to be mainly in the last years of life irrespective of life expectancy (Karisto 2007; Kiander 2009). It seems that the elderly are in better condition at least until they reach the age of 80, after which there is an increased need for help. (Vaarama 2009) It should also be remembered that increased longevity is something worth pursuing and supporting (Karisto and Konttinen 2004).
There has been a discussion about the heterogeneity of older people – older persons differ significantly from each other regarding, for example, their health, wealth, behaviour and lifestyle, just like other age groups. The remarkable positive impacts of ageing have been discussed only recently, and this might be mentioned as a change in the cognitive rules in a regime, that might have wider impacts. The positive side of ageing of the populations is that it has meant in particular an increase in the number of years people can expect to be active in their old age (e.g. Karisto and Konttinen 2004). The later years can therefore be perceived as an active, autonomous and independent time of life, in which maintaining the earlier life-style or engaging in new activities are considered to be the central ways of growing old. From this point of view, the elderly are not merely consumers of society's resources. From the point of view of innovation, Old age as an opportunity is connected to seeing old people as active consumers (e.g. Kohlbacher and Hang 2007; Kohlbacher and Herstatt 2008) and active
participants in society (Koskinen, 2004.). Innovations related to, for example, the consumption of services and free-time products (such as travel, sports and cultural activities) are emphasised in this point of view.
The distribution of how time is spent in society changes as the share of pensioners grows (Kautto 2004). Increased leisure time leads to different forms of participation, in non-public sector activities or other voluntary activities, but participation may also include involvement in the design and planning of products and services. The resources that older people possess has been discussed emphasising that older people have social, political and economic resources and strengths, as well as resources related to values, life experience, increased free-time and liberty. (Koskinen, 2004.) This is also visible in the social expectation that the elderly are increasingly independent in their daily activities with as little care as possible (see, e.g. Leinonen 2006, 9). Old age as a resourceful time is connected to seeing old people as active, participating actors in the innovation processes. When the elderly are seen as productive, they are not only targets of services planned by professional experts, but they have resources and expertise that can be exploited when planning products and services. (see Hennala et al., forthcoming).
Gilleard and Higgs (2005, 153) note: ”Past habits of consumption constrain future opportunities.” Ageing is a generation-related phenomenon: the baby-boomers, born during and after the Second World War1 in 1945-1950, have different generational experiences than their parents, for example, being the first youth culture generation in the fifties and sixties (Karisto 2005). “Those who grew up spending freely earlier in life are more likely to continue to spend freely later in life”. (Gilleard and Higgs 2005; see also Karisto 2007) This implies that who are used to consuming when young and healthy will continue doing so, as they get old and, perhaps, sick. From this point of view, ageing can have many positive impacts as an opportunity to create new businesses, for example. One particularly essential implication of the demographic shift is the emergence and constant growth of the “graying market” or the
“silver market” that can be very attractive and promising, although still very underdeveloped in terms of product and service offerings (Kohlbacher and Herstatt 2008, xi; Usui 2008).
Innovations related to the consuming of services and free-time products (such as travel, sports and cultural activities) are emphasised. Demand and new markets will be created especially for assistive devices, safety-related products, products that promote health, as well as services: wellbeing services, hobbies, leisure time products, travel and culture (Kautto 2004, 15). The demand becomes more quality-oriented and specialised, since the elderly are a very heterogeneous group just like other age groups.
This implies that the baby boomer generation is projected to be more educated, healthier, wealthier, more active and more productive and used to consuming than preceding generations (e.g. Healy 2004;see e.g. Leinonen 2006, 9). Hjerppe et al. (1999) estimated that the pension purchasing power will grow considerably, so that even pensioners receiving an average pension will be able to pay for a larger share of the production costs of the social and welfare services. Upon retirement age, households are typically at their wealthiest. However, studies of income and the consumption patterns in Finland show that Finns start saving instead of consuming when they retire. One explanation could be insecurity about social
participants in society (Koskinen, 2004.). Innovations related to, for example, the consumption of services and free-time products (such as travel, sports and cultural activities) are emphasised in this point of view.
The distribution of how time is spent in society changes as the share of pensioners grows (Kautto 2004). Increased leisure time leads to different forms of participation, in non-public sector activities or other voluntary activities, but participation may also include involvement in the design and planning of products and services. The resources that older people possess has been discussed emphasising that older people have social, political and economic resources and strengths, as well as resources related to values, life experience, increased free-time and liberty. (Koskinen, 2004.) This is also visible in the social expectation that the elderly are increasingly independent in their daily activities with as little care as possible (see, e.g. Leinonen 2006, 9). Old age as a resourceful time is connected to seeing old people as active, participating actors in the innovation processes. When the elderly are seen as productive, they are not only targets of services planned by professional experts, but they have resources and expertise that can be exploited when planning products and services. (see Hennala et al., forthcoming).
Gilleard and Higgs (2005, 153) note: ”Past habits of consumption constrain future opportunities.” Ageing is a generation-related phenomenon: the baby-boomers, born during and after the Second World War1 in 1945-1950, have different generational experiences than their parents, for example, being the first youth culture generation in the fifties and sixties (Karisto 2005). “Those who grew up spending freely earlier in life are more likely to continue to spend freely later in life”. (Gilleard and Higgs 2005; see also Karisto 2007) This implies that who are used to consuming when young and healthy will continue doing so, as they get old and, perhaps, sick. From this point of view, ageing can have many positive impacts as an opportunity to create new businesses, for example. One particularly essential implication of the demographic shift is the emergence and constant growth of the “graying market” or the
“silver market” that can be very attractive and promising, although still very underdeveloped in terms of product and service offerings (Kohlbacher and Herstatt 2008, xi; Usui 2008).
Innovations related to the consuming of services and free-time products (such as travel, sports and cultural activities) are emphasised. Demand and new markets will be created especially for assistive devices, safety-related products, products that promote health, as well as services: wellbeing services, hobbies, leisure time products, travel and culture (Kautto 2004, 15). The demand becomes more quality-oriented and specialised, since the elderly are a very heterogeneous group just like other age groups.
This implies that the baby boomer generation is projected to be more educated, healthier, wealthier, more active and more productive and used to consuming than preceding generations (e.g. Healy 2004;see e.g. Leinonen 2006, 9). Hjerppe et al. (1999) estimated that the pension purchasing power will grow considerably, so that even pensioners receiving an average pension will be able to pay for a larger share of the production costs of the social and welfare services. Upon retirement age, households are typically at their wealthiest. However, studies of income and the consumption patterns in Finland show that Finns start saving instead of consuming when they retire. One explanation could be insecurity about social
of those women who are over 75 year old and who live alone are at a high risk of poverty.
Two thirds of those who earn only the basic pension are women. (Niemelä and Ruhanen 2006.) As an increasing number of women are participating in the working life, the situation is improving. Women still outlive the men (for women the average life expectancy was 82,9 years in 2007 in Finland, and for men 75,8 years ), but the gap is narrowing all the time (Vaarama 2009).
2.2 Changes in the global economy and its impacts on the social and health care service