Finnish startups target €925 million in domestic R&D by 2028

Total R&D investments from startups are expected to increase from €360 million to €1.14 billion over the same period. “Startups often operate at the frontier of new technologies.

The R&D phase comes early and at scale, long before product–market fit. The survey results highlight the ambitious growth targets startups have set for their R&D investments, provided the operating environment allows it,” said Youssef Zad , Chief Economist at the Finnish Startup Community. Finland has committed to raising R&D expenditure to 4 percent of GDP by 2030.



According to Statistics Finland , the country’s total R&D spending in 2023 reached €8.4 billion, or 3.1 percent of GDP.

Of that, €5.7 billion came from companies. Public support is expected to contribute one-third of the total required increase.

The FSC says startups are ready to take on a greater role in advancing Finnish innovation but warns that support from established industries and public institutions is critical for success. “Achieving this requires a greater appetite for risk, increased capital—through stronger public and private investment—and a focused effort to remove friction across the entire innovation ecosystem,” said Juha Vartiainen , Global Affairs Officer and Co-founder of IQM Quantum Computers. He called for long-term commitment to renewal and growth in order to strengthen Finland’s knowledge base and global competitiveness.

Despite the optimistic outlook for R&D, the FSC survey reveals declining confidence in the broader economic environment. This is the third consecutive quarter in which startups reported a more cautious view of the market. “The caution is likely linked to geopolitical uncertainty, such as the rising tensions between the United States and the EU, which are increasing uncertainty in global markets and investment timeframes,” said Riikka Pakarinen , CEO of the Finnish Startup Community.

She noted that while startups remain confident about their own financial outlook, international instability may delay funding and expansion decisions. Still, most indicators in the Barometer point to improved sentiment compared to 2023, when the global startup sector faced sharp declines in funding and growth opportunities. The FSC emphasised that Finland’s startup sector is positioning itself for innovation-driven growth—if supported by a stable environment that encourages risk-taking and technological advancement.

HT.