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Factsheet for measure FI-2018-1/2718 – Updated – measures in Finland

Business Finland

Business Finland

Country Finland , applies nationwide
Time period Open ended, started on 01 January 2018
Context COVID-19, Digital Transformation, Restructuring Support Instruments
Type Other initiatives or policies
Category Reorientation of business activities
– Change of production/Innovation
Author Amanda Kinnunen (Oxford Research) and Eurofound
Measure added 23 June 2022 (updated 08 November 2022)

Background information

Business Finland Venture Capital Ltd (Business Finland) is a state-owned venture capital fund investment company that provides innovation funding and promotes trade, travel and investments.

Business Finland has 16 offices in Finland and 40 global offices. Business Finland was established in 2018 as a result of a merger of two organisations: Finpro, a state-owned organisation that focused on internationalisation, investments and tourism and Tekes, a state-owned innovation-funding organisation.

Business Finland provides a wide range of services for Finnish companies. The main services consist of internationalisation and innovation - funding, advisory services connected to internationalisation and services for the creation and development of ecosystems. Business Finland also participate in and operate programmes, such as the Government's Talent Boost programme.

The Ministry of Economic Affairs and Employment governs the activities of Business Finland through the Finnish Funding Agency for Innovation.

Content of measure

Some of the funding opportunities are open even for research organisations, municipalities and cities.

A significant part of the services are provided through programmes that Business Finland has established in areas with significant potential for growth. According to Business Finland's website, the purpose of the programme activities is to 'prompt businesses to benefit from market transitions and to increase understanding of themes affecting the future of business'. In the programmes, Business Finland provides companies with advice on networking, finding new markets and customers, help with joint offerings and connections with international investors.

Three examples of the programmes are:

  1. Digital Trust Finland (2019-2023): A programme that provides innovation funding, help with internationalisation and support for strengthening ecosystems for Finnish companies operating in critical communications and cybersecurity. Companies using cybersecurity solutions can apply for funding. Smart Finance actors (e.g. banks, insurance companies, payment technology companies or financial management companies) and companies that are also part of the MyData network that focuses on personal data sharing issues can be part of the programme. The budget is €100 million.

  2. Smart Energy Finland (2018-2022): A programme that helps Finnish companies, research organisations, municipalities and cities to benefit from the business opportunities that arise from the changes in the transport sector. The programme seeks also to attract international actors of the transport sector to Finland. The budget is approximately €50 million.

Updates

The following updates to this measure have been made after it came into effect.

21 December 2021

Business Finland is the administering authority for the national Energy Aid [Energiatuki]. Energy aid can be granted for investment and pilot projects by companies and communities to promote the development of new and innovative solutions for the long-term low-carbon transformation of the energy system.

Use of measure

According to Business Finland's impact report (2021), Business Finland awarded funding for €707 million in 2021. Most of this funding (€561 million) was awarded for companies, the rest for research (€146 million). In 2020, due to the COVID 19-pandemic, the awarded funding was over €1,734 million of which €1,612 for companies and €123 million for research.

In 2018, Business Finland granted a total of 458 energy aid projects approximately €23 million and in 2019 684 Energy aid projects with a total of around €30 million.

Target groups

Workers Businesses Citizens
Employees in standard employment
Applies to all businesses Does not apply to citizens

Actors and funding

Actors Funding
National government
National funds

Social partners

Social partners' role in designing the measure and form of involvement:

Trade unions Employers' organisations
Role Unknown Unknown
Form Not applicable Not applicable

Social partners' role in the implementation, monitoring and assessment phase:

  • Unknown
  • Main level of involvement: Unknown

Involvement

Unknown

Views and reactions

Unknown

Sources

  • 01 January 2018: Business Finland - About Us (www.businessfinland.fi)
  • 01 January 2018: Ministry of Economic Affairs and Labour (2020) Business Finland Venture Capital Ltd is an investor in early stage capital investment funds (tem.fi)
  • 01 January 2018: Confederation of Finnish Industries (2018) Team Finland ja Business Finland - EK:n yrityskyselyn tulokset (ek.fi)
  • 01 January 2018: Mydata (mydata.org)
  • 28 February 2019: Business Finland (2018) Annual report (Tilinpäätös) (www.businessfinland.fi)
  • 01 May 2019: Business Finland (2019) Innovaatioista kilpailukykyä ja kestävää kasvua - Business Finlandin tulokset ja vaikutukset (www.businessfinland.fi)
  • 26 March 2020: TEM (2020) Government increases business financing due to COVID-19 and provides EUR 1 billion in direct subsidies (tem.fi)
  • 01 June 2020: TEM (2020) Legislative proposal regarding support for business costs to Parliament this week (tem.fi)
  • 20 December 2021: Business Finland (2022) Energiatuki (www.businessfinland.fi)
  • 21 December 2021: Business Finland (2021), Energia investointitukien ensimmäinen haku (www.businessfinland.fi)

Citation

Eurofound (2022), Business Finland, measure FI-2018-1/2718 (measures in Finland), EU PolicyWatch, Dublin, https://static.eurofound.europa.eu/covid19db/cases/FI-2018-1_2718.html

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