Finland Q1 2025 Business Snapshot: A hidden gem for growth and innovation

Despite global geopolitical tensions and tighter investment conditions, Finland’s innovation ecosystem is showing remarkable resilience. Early 2025 has brought a wave of developments that highlight the country’s role as a forward-looking, opportunity-rich hub for international business. Read on to explore the full scope of Finland's innovation and business opportunities.

Hydrogen projects accelerate Finland’s green transition

Finland’s green transition is accelerating, catalyzed by a 400-million-euro subsidy program designed to keep major green investments from relocating elsewhere. Backed by the EU’s state aid framework, the initiative is helping unlock record levels of clean-tech investment. In 2025 alone, green projects worth EUR 8.5 billion are advancing across the country, spanning a wide range of clean technologies.

Hydrogen infrastructure is expanding, with Gasgrid Finland and partners securing EU funding for three cross-border hydrogen transmission projects. Talks with Germany are also underway for a bidirectional hydrogen pipeline.

These developments are further supported by the H2 Springboard Ecosystem, launched by global automation and electrification company ABB in collaboration with Business Finland. The initiative aims to accelerate the country’s hydrogen economy growth by fostering innovation and collaboration across a network of over 50 Finnish companies, research institutions, and universities, thereby driving the creation of globally competitive hydrogen solutions.

Finland is combining technical expertise with pragmatic policymaking to create a fertile ground for international business growth.

The Nordic nation’s bioeconomy roadmap is gaining attention at the EU level. Swedish Environment Commissioner Jessika Roswall recently praised Finland’s leadership in circular economy solutions – joking that she’d like to “steal some of the ideas.”

Finnish clean energy innovator P2X Solutions has launched Finland’s first industrial-scale green hydrogen plant—described by CEO Herkko Plit as a “game-changer” for the country’s clean energy landscape. 

Also worth mentioning is Easpring Finland New Materials, which is building a battery materials plant in southern Finland. The facility will produce cathode active material (CAM), a crucial component in the production of lithium-ion batteries. 

Meanwhile, Swedish renewable energy firm OX2 is developing two of the largest wind farms in Finnish history, which will have a combined capacity of 472 MW – enough to power around 300,000 homes annually.

Finland advances quantum tech and industrial AI

Finland has reached a pivotal milestone in quantum computing. A collaboration between VTT, Finland’s state-owned research and technology organization, and IQM, a Finnish quantum computing company, has produced Europe’s first 50-qubit quantum computer, now available for commercial and research use. This unlocks new frontiers in molecular simulation and logistics optimization, enabling faster drug discovery, more efficient supply chains, and breakthroughs in materials science and energy systems.

The LUMI supercomputer, one of the world's fastest, is powering the newly launched LUMI AI Factory, which delivers tailored AI services to industrial companies. These solutions are helping businesses enhance product quality and operational efficiency through advanced, data-driven tools.

Further strengthening Finland’s AI credentials is Silo AI, the largest private AI lab in the Nordics and now part of AMD, a global leader in high-performance computing and semiconductor technologies. With deepening collaborations across 38 Nordic companies, Silo AI is helping position Finland as a hub for scalable, industrial AI applications, and a magnet for global AI talent.

Finland’s clean energy, cool climate, and stable electricity grid are also attracting significant investments in digital infrastructure. British trading firm XTX Markets is planning five new data centers, while a separate one-billion-euro data center and power plant project is underway, signaling confidence in Finland’s long-term digital potential.

Finland’s space sector startups gain global recognition

Finland is developing a new national cyber defense doctrine centered on post-quantum encryption and the protection of critical infrastructure. Supporting this effort is GlobalConnect, one of the leading digital infrastructure and data communication providers in the Nordic region, whose 2,600-kilometer undersea fiber cable linking Berlin to Finland will significantly enhance regional digital sovereignty. Complementing this is the Merikarhu project, which safeguards underwater data cables and ensures secure communications.

The country’s space sector is gaining altitude, with around 200 companies now active in space-related business. The European Space Agency (ESA) has also selected a site in Finnish Lapland for a new satellite data center to be operated in collaboration with the Finnish Meteorological Institute. This Arctic facility will boost Finland’s capabilities in climate science and Earth observation.

Finland offers a compelling mix of innovation, stability, and opportunity.

The deep tech sector is also drawing international attention. Finnish company Winse Power has developed a laser-powered chip that boosts drone flight times and supports power transmission from space. The innovation has earned recognition from both NATO and the ESA, highlighting the country’s rising role in cutting-edge light-based technology.

Defense technology is emerging as a key growth area within Finland’s broader innovation landscape. Swedish defense company Saab has developed the Sirius Compact passive electronic warfare sensor designed for next-generation systems and is expanding its manufacturing footprint in the country. 

Finnish defense contractor Patria is also investing €40 million to scale up production of armored vehicles. Prime Minister Petteri Orpo has identified defense as a strategic export sector, particularly as demand from allied nations continues to rise.

Finnish consumer exports and tourism show strong growth

Finland’s food and agricultural exports grew by 5% last year, reaching EUR 2.3 billion, with standout products including vegetables, alcoholic beverages, and dairy. Oat exports to Germany hit record levels, and 75% of all food exports went to EU countries, with China emerging as a key non-European market. To build on this momentum, the government will shift export oversight to the Ministry for Foreign Affairs at the beginning of 2026, aiming to better align trade promotion with global opportunities.

E-commerce is also expanding, particularly in the international health and beauty sectors. Finnish consumers spent nearly EUR 5.4 billion online, primarily driven by foreign e-commerce in cosmetics and health products. 

Meanwhile, tourism is rebounding strongly. In February 2025 alone, Finland recorded 1.81 million overnight stays, including 0.69 million by foreign tourists – a 9% increase from the previous year. Winter tourism continues to outperform summer, with Lapland remaining the most popular destination, as well as attracting EUR 1.2 billion in new investments.

One notable tourism project is the Kaamos Lodge in Ylitornio, a Finnish municipality near the Swedish border. This resort, featuring Hobbit-style cottages and a wellness spa, is fully booked until 2030. It exemplifies Finland’s innovative approach to experiential travel.

From quantum computing and green hydrogen to Arctic space research and sustainable tourism, Finland is combining technical expertise with pragmatic policymaking to create a fertile ground for international business growth. For decision-makers seeking new frontiers, Finland offers a compelling mix of innovation, stability, and opportunity.