In 2021, all parties represented in the Parliament of Finland committed to the target of raising research and development expenditure to four per cent of GDP by 2030.
Finland aims to increase its research and development expenditure to four per cent of GDP by 2030. This will require increasing the public research and development expenditure to 1.33 per cent of GDP, assuming the public sector accounts for one third of R&D investments and the private sector for two thirds.
For context, in 2020 the overall GDP share of R&D expenditure in Finland was 2.9 per cent (6.9 billion euros). Out of this, the share of the public R&D expenditure (Government and Higher Education sectors) was one third at 0.9 per cent of GDP / 2,289 billion euros.
In the spring of 2021, a parliamentary working group was set up by the government to advance Finland’s RDI objectives. The working group, that completed its work in December 2021, proposes a new legislative act to increase the funding. The act would set the annual level of central government R&D expenditure in a way that would raise public sector R&D expenditure to 1.33 per cent of the GDP by 2030 under the projected economic development. Law drafting is expected to take place during 2022, and the legislation to come into force in 2023.
Alongside the act, the working group proposed drawing up a statutory plan for research and development funding extending beyond the spending limits period. The plan would specify the policy guidelines for and content of long-term research and development activities and establish basic principles for the allocation of R&D funding. The plan is prepared in a parliamentary process, further strengthening the commitment to long-term research and development funding and policy.
Parliamentary Working Group on Research, Development, and Innovation (Prime Minister’s Office)
Statistics: Research and Development (Statistics Finland)
Finland’s National Roadmap RDI (Ministry for Education and Culture)