In 2024, investments in research and development (R&D) in Southwest Finland grew exceptionally strongly. The most significant increase, over 50 percent, occurred in corporate investments.
The region’s total R&D expenditure rose by €171.6 million compared to 2023, a 31.4 percent increase, bringing total spending to €718 million. Nationally, R&D expenditure grew by only 5.5 percent, making Southwest Finland’s growth particularly remarkable. In previous years, the region’s growth had been moderate, but now the trend is clearly upward.
This growth is driven by the joint decision and determination of companies, higher education institutions, and public actors to strengthen research, development, and innovation (RDI) activities. The goal is to double RDI investments from the 2023 level of €550 million by 2030. The target was set in the Southwest Finland RDI Roadmap process, which involved around 150 experts from 56 organizations.
– Economic growth requires the courage to renew. Business Turku and its regional partners have systematically strengthened the foundations and cooperation for RDI activities. This joint effort to boost RDI is now bearing fruit, strengthening companies’ international competitiveness, attracting new investments, and creating jobs, says Minna Arve, CEO of Business Turku.
Collaboration Between Companies and Universities Fuels Innovation
After Uusimaa, the higher education institutions of Southwest Finland invest the second-largest amount in R&D in Finland, and their growth has been steady for years. In 2024, their expenditures reached €258 million, up 9 percent from the previous year.
The establishment of the Faculty of Technology at the University of Turku in 2021, as well as the continuously strengthening collaboration between universities and companies, has had a particularly significant impact on R&D investments.
– The expansion of technological and scientific activity with the support of businesses and society has proven to be a success. Several faculties of the University are also active contributors to business and innovation development,” notes Tapio Salakoski, Vice-Rector of the University of Turku.
For example, Turku University of Applied Sciences (TUAS) has heavily invested in practical research and education involving close cooperation with companies. The expertise, equipment, and facilities of TUAS research groups are available to companies, and both technical education and R&D have grown significantly in recent years in line with industry needs.
– Our most important form of company collaboration is applied industrial research funded by Business Finland. We strive to build direct relationships with companies and jointly solve key R&D challenges, explains Juhani Soini, Vice-Rector of TUAS.
According to Sitra’s 2024 national corporate survey, in addition to funding, the most important factor for companies to increase R&D activities is facilitating cooperation with research organizations.
Over 50% Growth in Corporate R&D Expenditures
In Southwest Finland, corporate R&D expenditures reported to Statistics Finland increased by more than 50 percent in 2024 compared to the previous year. Companies accounted for 63 percent of the region’s total R&D spending, or €452 million.
Southwest Finland nearly matched Uusimaa in the absolute growth of corporate R&D investments: the increase in Uusimaa was €168 million, while in Southwest Finland it was €153 million. For comparison, Pirkanmaa saw an increase of €21 million, meaning that Southwest Finland has significantly narrowed the gap with Pirkanmaa’s R&D expenditures, which exceed €1 billion.
– New R&D-intensive sectors in the Turku region, such as hydrogen technology, electrification, and artificial intelligence, are strengthening the region’s position as a national R&D hub alongside its traditional strengths in maritime industry, health technology, and pharmaceutical development, explains Linda Fröberg-Niemi, COO of Business Turku.
As the regional development company, Business Turku has actively accelerated R&D growth through free funding advisory services, active networks, and accelerator programs. For example, the Maritime Venture Programme, supported by the City of Turku, was recently held to boost cooperation between major maritime companies and startups.
R&D activities are also promoted by Technology Campus Turku’s RDI voucher for company–university collaboration, as well as by ecosystems such as Smart Chemistry Park and Axelia, which support corporate research and development work.
– Our goal is to ensure that R&D investments translate into stronger regional vitality and business growth. We also want to encourage companies that have not yet realized the potential of R&D as a driver of business growth, says Fröberg-Niemi.
Courage to Grow and Develop Strengthens Finland’s Economy
Finland’s national goal is to raise R&D investments to 4 percent of GDP by 2030. In 2024, the R&D investment rate reached 3.22 percent.
The key outcome of Finland’s R&D efforts should be innovation that renews markets, addresses global challenges, and accelerates economic growth.
– This growth reflects increasing investments, stronger research networks, and companies’ courage to invest in the future. The overall direction is positive nationwide. Long-term, predictable R&D policy is now more important than ever to sustain this growth momentum, emphasizes Arve.
Growth Figures for Southwest Finland in 2024 (compared to 2023)
- Total R&D investments: €718 million (+€171.6 million / +31.4%)
- R&D personnel: 8,286 (+13.1%)
- Full-time R&D work years: 4,941 (+9.1%)
- Corporate sector share: 62.9%
- Higher education sector share: 35.9%
- R&D investments per capita: €1,452 (5th highest among Finnish regions)
- Turku region R&D investments: €1,688 per capita (7th highest of 69 subregions)
- – Growth: +€87.8 million / +17.4% per year
Source
Statistics Finland press release on R&D expenditure, 23 Oct 2025: Share of research and development expenditure of gross domestic product 3.2 per cent in 2024 | Statistics Finland