Authors: 4FRONT Experts
A recent study on Finland’s largest R&D investors tell an increasingly important story about the transformation of the innovation landscape – not only in Finland but also across Europe. Large industrial and technology corporations still form the backbone of business R&D investment. At the same time, scaleups and deep tech companies are becoming much more visible among the most R&D-intensive firms.
The study, commissioned by the Finnish Research and Innovation Council and conducted by 4FRONT, shows that Finnish companies continued to increase their research and development investments despite a challenging economic and geopolitical environment. At the same time, the report highlights a broader structural shift in the kinds of companies shaping Finland’s future competitiveness.
Startups and scaleups are becoming a more visible part of the R&D landscape
Traditionally, Finnish business R&D has been strongly associated with large industrial and technology corporations. These companies remain critically important: Nokia alone accounts for nearly half of the total R&D expenditure of the Top 100 R&D investing companies.
However, another trend is becoming increasingly visible. Startup, scaleup and deep tech companies such as Wolt, IQM, ICEYE and RELEX now stand out as the most R&D-intensive firms in the country. On average, these most R&D intensive companies invested around 40% of their revenue in R&D activities — significantly more than companies in many traditional sectors.
These firms share several characteristics: technology-driven growth models, strong international market orientation and business models where product development and technology development play a central role.
This points to a wider change in the R&D landscape, where startups and scaleups are becoming an increasingly important structural component of Finland’s (and Europe’s) R&D and innovation system.
Measuring and identifying R&D activity is becoming more important — and more difficult
As highlighted also in the report, reliably identifying and measuring R&D activity is not straightforward.
Corporate reporting practices vary significantly across industries and corporate structures, and not all companies report R&D expenditure in the same way. The definition and identification of R&D itself is also becoming less clear in areas such as software development, platform economy businesses, AI-driven services and broader forms of digital development work. As a result, important innovation and development activities may remain unrecognised and underreported, even when they play a major role in business renewal and competitiveness.
The report notes, for example, that some companies with substantial development activities could not be fully included because reliable R&D figures were not publicly available. Differences in accounting practices, international group structures and reporting standards also affect how R&D investments appear in statistics.
These questions are currently being explored in more detail in an ongoing study commissioned by the Finnish Prime Minister’s Office. The study examines how R&D and broader innovation-related development activities are evolving across sectors, and how development work could be identified more accurately beyond traditional R&D definitions.
More information about the study:
https://tietokayttoon.fi/-/t-k-toiminnan-muutos-nakymat-ja-mahdollisuudet-eri-toimialoilla-tk-muutos-
Finland has strong opportunities to strengthen its position among Europe’s leading startup and scaleup ecosystems
The findings from the Top 100 analysis suggest that Finland is well positioned in technology-driven startup and scaleup ecosystems. The high R&D intensity of many growth companies reflects active investment in new technologies, software, deep tech solutions and globally scalable business models.
At the same time, competition for talent, investment and emerging technology leadership is intensifying across Europe.
To explore these developments further, 4FRONT has been leading the project to develop a European Startup and Scaleup Scoreboard (ESS), which compares startup and scaleup ecosystems across European countries. The Scoreboard – to be published next week – will provide a more detailed picture of the strengths and development challenges of different ecosystems.
To continue the discussion on Finland’s position in Europe’s startup and scaleup landscape, 4FRONT will also host a session during the Maria 01 NOW in Helsinki on 4 June 2026. The event will include the Finnish launch of the European Startup and Scaleup Scoreboard of the European Commission, and Fabian Landes will present the Scoreboard’s methodology, online tool and key findings, followed by a panel discussion moderated by Kimmo Halme on what the data reveals about Finland’s strengths, gaps and future opportunities as a startup and scaleup ecosystem.
Sign up for the event: https://maria.io/events/maria-01-now/
