Finland aims to increase its research and development expenditure to four per cent of GDP by 2030 to accelerate sustainable growth, strengthen competitiveness and boost productivity.
In line with this target, the Finnish government will raise the central government funding for R&D activities to 1.2 per cent of GDP by the end of the decade, assuming the public sector roughly accounts for one third of R&D investments and the private sector for two thirds.
For context, in 2024 the overall GDP share of R&D expenditure was 3.2 per cent (EUR 8.9 billion). Out of this, the share of the public R&D expenditure (Government and Higher Education sectors) was roughly a third (32%) at 1.0 per cent of GDP / EUR 2,853 billion. Further details can be found here.
4% of GDP target enshrined in law
An R&D funding law, that came into force in 2023, sets the annual level of central government R&D expenditure in a way that raises public sector R&D expenditure to 1.33 per cent of the GDP by 2030 under the projected economic development. Alongside R&D funding law, a law for a more extensive and permanent tax incentive for R&D activities was approved in 2022.
Parallel to legislation, the Finnish government adopted a multiannual plan for R&D funding in 2024. The plan highlights the importance of developing the R&D system in a comprehensive manner. Investing in cooperation between higher education institutions, public research organisations and businesses also plays an important role. The plan will guide the use of R&D funding in the coming years.
Strategic choices guide the development of RDI activities
The national strategic choices for RDI policy and activities aim to boost sustainable growth, promote renewal and strengthen comprehensive security.
The choices serve to define the needs of different administrative branches and actors when it comes to developing and targeting RDI activities. The goal is to strengthen national RDI policy and communicate our priorities even more clearly to international partners. The choices will have a long-term impac
The national strategic choices for RDI policy are:
– data and data-based value creation
– disruptive technologies
– health and wellbeing
– climate, environment and the Arctic dimension, and
– security, resilience and defence
Read more about the strategic choices on the Research and Innovation Council website