Finland holds the keys to becoming the European Union’s foremost leader in developing and applying critical digital technologies, according to a recent joint report by Sitra, Technology Industries of Finland, and VTT.
Martti Asikainen, 27.5.2025
Finland could emerge as the European Union’s technological powerhouse, according to a report released by three prominent Finnish organisations that warns of Europe’s widening technology gap with China and the United States.
The joint publication by Finnish Innovation Fund Sitra, Technology Industries of Finland, and VTT Technical Research Centre of Finland argues that Finland possesses a unique combination of expertise, innovation infrastructure, and political stability that positions it to lead Europe’s technological resurgence across seven critical domains.
The report paints a concerning picture of European technological competitiveness, documenting how significantly the continent has fallen behind its global rivals. This technological deficit, the authors argue, demands a fundamental reorientation of EU budget priorities towards developing and implementing critical technologies, alongside strengthening innovation ecosystems and talent attraction mechanisms.
“It’s crucial that the EU’s actions emphasise excellence rather than merely balancing regional disparities,” said Joonas Mikkilä, Senior Advisor at Technology Industries of Finland. “Finland’s successful ‘leading company’ model could serve as a blueprint for innovation funding, as it binds companies closely to the innovation process.”
As part of the EU’s economic security strategy, Finland has been identified as having exceptional expertise in seven critical technology areas: artificial intelligence, high-performance computing, semiconductors, quantum technologies, telecommunications, space technologies, and cybersecurity.
The report proposes concrete measures to capitalise on these strengths, chief among them the establishment of a Prime Minister-led roundtable where political leaders, businesses, and research organisations would jointly define Finland’s technological trajectory.
Beyond high-level coordination, the recommendations include expanding the leading company model to encompass critical technologies and introducing an alliance funding model for data ecosystems to support crucial data sharing and utilisation.
The report also calls for enhanced collaboration between defence and business sectors, improved access to capital funding for growth companies, and more aggressive pursuit of foreign investment. Additional proposals include a technology training programme for decision-makers, a National Forum on Critical Technologies, and a flagship international event to raise Finland’s global profile.
“Finland’s innovative cooperation models, competencies, and cutting-edge research can be disseminated across Europe,” said Laura Halenius, Senior Advisor at Sitra. “We have the opportunity to anticipate the impacts of technological developments, allocate resources strategically, and act as a thought leader internationally.”
The central thesis from the three organisations emphasises that technological competence combined with agile decision-making could determine not only Finland’s economic and security future, but that of the entire continent.
The report positions Finland not merely as a small Nordic nation, but as a potential technology influencer whose contributions could reshape Europe’s digital trajectory. However, the authors caution that realising this vision will require sustained boldness, collaboration, and investment.
With research excellence, corporate expertise, and political stability as its foundation, Finland faces a pivotal moment to transform from technology follower to continental leader in the global digital race.
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