Finland: Steady competitor in the global race

Despite global challenges such as economic uncertainty, supply chain disruptions, and geopolitical tensions, Finland is not slowing down. From streamlining operations and permit procedures to added funding, the barriers to business expansions are reduced.

“Despite the globally challenging economic situation, Finland keeps on accelerating investments in clean transition and R&D,” says Annabella Polo, Senior Advisor at Invest in Finland.

Tax deductions for green transition

A notable feature is the adoption of a tax credit for large-scale industrial investments aimed at transitioning to a net-zero economy, encompassing sectors like battery production, hydrogen projects and clean steel manufacturing. The draft plan includes a 20% tax deduction from corporate tax, up to max. 150 million euros.

Primed for clean transition wins

“Finland wants to be a part of the race on green investments,” Annabella Polo describes.

Finland is particularly welcoming to projects that reduce emissions or focus on battery and hydrogen industries, aiming to be a leader in green investments. The country has well-established ecosystems in cleantech, covering renewable energy, low-carbon concrete, and other clean solutions, and is committed to diversifying and enhancing its competencies further.

Additional 1.715 billion euros for Research and Development

The fiscal strategy also includes a significant increase in government allocations for R&D, with a particular emphasis on fostering collaboration between businesses and research institutions. An additional €1.715 billion is earmarked for R&D by 2028. This aligns with the government's long-term plan of increasing research and development expenditure to four percent of GDP by 2030.

“With these substantial R&D investments, the government is clearly putting its money where its mouth is. We’re on track to lead the world in innovation and research,” states Polo.

The Business Finland funding is also increased. Funding will be allocated particularly to supporting corporate R&D activities and cooperation between businesses and researchers.

Never compromise on talent

“Finland's knack for knowledge and competence is like having a secret superpower. Even in tough economic times, we’re not about to let our expertise slip,” Polo notes. “Investment in education ensures businesses can team up with top-notch university researchers and innovate together.”

This commitment keeps Finland’s workforce competitive and supports innovation in sustainable technologies. The government is increasing funding for EU-financed R&D projects, bioeconomy research, and postdoc programs to hire 85 researchers. Additionally, the Research Council of Finland will receive more funding for research projects.

What’s in it for your business?

For investors, the funding outlined in the General Government Fiscal Plan translates into reduced costs, an increased number of innovation projects, and access to a thriving ecosystem of innovation and skilled talent, making Finland a prime destination for forward-thinking businesses and sustainable investments.

“Invest in Finland provides organizations with free customized information about Finland’s business environment and funding opportunities. Our networking services are of great value, when you want to learn more about opportunities in Finland,” Annabella Polo reminds.