By Luize Ferreira de Albuquerque, Fraunhofer IPK
“In terms of innovation, research and development, technology and competitiveness, Finland has been one of the world’s leading countries for many years. Finland is also a leader in renewable energy use, particularly bioenergy”.
Finland has redefined itself from a quiet agriculture and forestry-based economy to a trend setting global centre for technology and design. The country is highly integrated into the global economy with international trade accounting for a third of its GDP. Finland’s commercial clout far exceeds its modest population of 5.5 million. In 2021, Finland’s GDP was $271 billion with nominal per capita GDP of $48,871 (higher than Canada or United Kingdom). It is the only Nordic country that uses the Euro and the capital, Helsinki, has easy connections by rail, sea and air to Tallinn, St. Petersburg, and Stockholm (ITA Finland, 2022).
Finland routinely ranks at the very top of international surveys on education, quality of life, competitiveness, and transparency. It is also a highly industrialized nation with great digital performance according to DESI 2021 (Digital Economy and Society Index). Owning one of Europe’s most progressive telecom market, this Nordic nation is oriented towards high technology, research, and development with considerable investment in information and communication sectors, serving as a lab for testing new tech products and services (DESI Finland, 2021).
According to European statistics, Finland is also a leader in renewable energy use reaching the mark of 40% of renewable sources in 2020. In face of a global sustainability crisis, the government’s goal, set in the National Energy and Climate Strategy 2030, is to increase renewable energy use by 50% and reach carbon neutrality by 2035, creating the first fossil fuel free society (National Energy and Climate Strategy 2030).
The most important renewable source in Finland is bioenergy, particularly wood base, and its production is largely integrated into the forestry industry, as their by-products can be used for energy production. According to the Inter-American Development Bank (IDB), bioenergy has great potential to grow in Latin America as it is easy to collect and use, it reduces CO2 emissions and it can benefit rural areas by stimulating investments and creating jobs. Brazil, for instance, is the leader in bioenergy in the region mainly due to ethanol production from sugarcane (IDB, 2015).
Economic Forecast
According to the World Bank, Finland’s GDP in 2021 was 299 billion US dollars. The country suffered a contraction 5% due to the COVID-19 pandemic, among the smallest in the OECD thanks to rapid and effective containment measures such as temporary layoffs and mobility reduction. The Economist predicts that GDP growth will be moderate in 2022 but it will remain above the pre-pandemic levels with a steady recovery. The main economic drivers will be the sectors of construction investment and spending in consumer goods (The Economist, 2020).
To meet the 2030 carbon emission goals, Finland will implement measures in the transport sector, increasing bio-fuel consumption. Finnish government also plans to simplify the resident permit process to attract more high-skilled immigrants to boost the supply of educated workers, something that Latin American researchers and ICT professionals could benefit from (OECD Economic Surveys: Finland 2020).
Finland’s Science Technology and Innovation (STI) Landscape
In terms of innovation, research and development, technology and competitiveness, Finland has been one of the world’s leading countries for many years. Finnish R&D spending sits at 2.9% of its GDP. Three sectors account for 60% of business R&D expenditure: electronics, computers and electrical equipment (30%); information and communication (18%); other machinery and equipment (12%). In Finland, funding for scientific research comes mainly from private companies (two third), the government and funding agencies (one third) (OECD Economic Surveys: Finland 2020).
The Ministry of Economic Affairs and Employment of Finland is responsible for formulating innovation policy in the country, they are also responsible for the Research and Innovation Council, for implementing the Horizon Europe programme and it has also stablished a national roadmap for research, development and innovation (RDI). Their aim is that new information generated by investment in human capital is used and deployed in all areas of society while promoting the collaboration of enterprises, universities and research institutes (Ministry of Economic Affairs and Employment).
EURAXESS points out four main funding agencies in Finland. The Academy of Finland (AoF) produces high-quality data and supports the use of scientific knowledge in policy-making, working closely the Finnish research, education and innovation system. Finnish Innovation Fund (Sitra) brings together partners from different sectors to deploy science and technology. EDUFI (Finnish national Agency for Education) administers scholarship and exchange programmes for students and researchers. Finally, the Council of Finnish Foundations provides services for grant applicants and recipients. Through its Aurora database, they provide funding information from Finland as well as foreign funding parties that are available for Finns or foreigners living in Finland (EURAXESS Finland).
National Science Technology and Innovation priorities
The current government programme has set a number of objectives for employment, competition, knowledge and education in order to establish a socially, economically and environmentally sustainable Finland. For example, in 2021, the government approved the programme Innovation and Skills in Finland 2022-2027. With a total budget of EUR 3.2 billion, the programme will support companies’ RDI activities, promote the availability of skilled labour, speed up the green transition and increase young people’s inclusion. The areas of priority are sustainable development, gender equality, non-discrimination, digital development, internationalisation, climate change and innovation (Ministry of Economic Affairs and Employment) .
The Finnish government recognizes the importance of business digitalization. New technologies and business models, digital platforms, software products and big data are essential milestones to maintain Finland competitive in the global market. Activities in these areas are fostered through programmes funded by Business Finland, and research know-how is provided by the Technical Research Centre of Finland (VTT). All this is closely connected to EU- and international-level activities. Current relevant technologies that support the development and increase of business include (Ministry of Economic Affairs and Employment):
- work phase automation
- robotization
- machine learning
- artificial intelligence
- big data analysis
- virtual and enhanced reality
- blockchain technologies
Previous contribution to Horizon 2020
In total 3,500 Finnish organisations were involved in the Horizon 2020 programme with a total of EUR1,54 billion funding received by the project’s participants. The top Finish organizations in terms of EU contributions were the Technical Research Centre of Finland, the Helsinki University and Aalto University. In relation to Latin America, the countries with which Finland collaborates the most in European Research programmes are, respectively, Argentina, Chile and Colombia (Horizon 2020 Dashboards, state of September 2022).
Funding opportunities in Horizon Europe
Horizon Europe is the biggest EU research and innovation programme ever with €95.5 billion of funding available over 7 years (2021 to 2027). It is open to the world. This means that participants from all over the world can participate in most calls. In many cases, the EU will fund at least partly the participation of the international partners. As a member state of the EU, participants from Finland are automatically eligible for EU funding, unless specific limitations or conditions are laid down in the work programme and/or call/topic text. Most LAC countries are also eligible for EU funding as per the Horizon Europe participation rules. The list of eligible countries can be consulted in the Funding and Tenders Portal.