Finland has strongest tech breakthrough odds in space, gaming and biotech, McKinsey finds — but funding gap threatens the window
A McKinsey Global Institute report from earlier this year identifies three global growth industries where Finnish companies have the best chance of building a world-leading company, but warns that insufficient growth capital could see the opportunity shift abroad before Finland can capitalise on it.
Text by Martti Asikainen, 13.7.2026 | Photo by Adobe Stock Photos
Finland’s strongest prospects for producing a globally dominant technology company lie in space, video games and non-medical biotechnology, according to a report from the McKinsey Global Institute, published on 30 April.
The analysis identifies 18 technology-intensive industries worldwide whose combined revenues could reach between €25 trillion and €42 trillion by 2040, according to the report.
Market capitalisation in these industries has grown roughly four times faster than in other sectors since 2022, the report found, with US and Chinese companies currently controlling 90% of that value. Europe’s share, McKinsey said, is a third of what the size of its economy would suggest.
Three arenas, one moment
The report singles out three fields where Finland has particular strengths. In space technology, Finland has more than 100 fast-growing dual-use companies, those serving both civilian and military markets, with satellite imaging firm ICEYE cited as already occupying a leading global position.
In video games, roughly 270 active studios build on an ecosystem established by Supercell, Rovio and Remedy, with newer studio Metacore named as an example of the next generation.
In non-medical biotechnology, the report points to research strength at VTT, Finland’s state-owned research institute, and at Finnish universities, with Solar Foods, Onego Bio and Nanoform named as companies already commercialising the science.
McKinsey also identified further opportunities in modular construction, future air mobility, robotics, nuclear fission and cybersecurity, alongside longer-horizon prospects in quantum technology and sustainable fuels, which the report suggests could become significant by the 2040s.
A recurring pattern
Finland has a track record of this kind of breakthrough, the report argues. Kone led in machinery during the 1980s, Nokia in mobile phones during the 2000s, and Supercell in mobile gaming during the 2010s, each pulling the wider economy forward. Since the digitalisation wave that produced Supercell, the report suggests, Finland has been searching for its next such company.
“Finland has the potential to be among the global leaders in several technology-intensive industries,” said Tapio Melgin, a partner at McKinsey. “Succeeding in even one would be a major win for our national economy. It requires getting the funding, product development, internationalization, and speed to market right.”
The report’s central warning concerns speed. It identifies nine “omniscalers” — large global companies spending heavily across multiple of the 18 industries — which generated more than €610 billion in operating cash flow in 2025 and invested over €700 billion in research, development and capital expenditure in the same year.
The seven largest technology companies alone invested roughly €660 billion in 2025, more than 90% above 2022 levels, according to the report. In more mature industries such as artificial intelligence and cloud computing, McKinsey found that competitive positions have typically settled within three to five years of an inflection point — a timeline the report suggests still favours Finland in space and biotechnology, where the underlying technologies remain comparatively early-stage.
The same old funding bottleneck
Finland performs well in research and early-stage development, the report found, but lacks the growth capital needed to scale companies to global size — a gap it describes as consistent with a wider European shortfall in later-stage funding.
“The critical question is whether the next ICEYE or Oura receives sufficient funding early enough, and with a strong enough domestic base, or whether ownership and headquarters shift abroad before it has a chance to scale,” Melgin said.
That question has already had a partial answer. In June, ICEYE closed a funding round worth more than €1 billion — the largest private startup raise in Finnish history — valuing the company at over €10 billion. The primary round, worth €450 million, was led by General Atlantic, a US growth equity firm, with a secondary share placement making up the remainder.
The investor base, however, was not solely American. Alongside General Atlantic, the round included Qatar Investment Authority and US fund TCV, but also Finnish state investors Solidium and Tesi, pension funds Varma and Ilmarinen, existing backer Lifeline Ventures, and Nokia as a new strategic investor.
ICEYE reported revenue of more than €250 million and EBITDA above €100 million in 2025, alongside a contracted backlog exceeding €1.5 billion, according to the same report.
The question about ownership
The ICEYE’s round illustrates the dynamic McKinsey’s report describes, though not in the starkest terms. US capital led the raise. It also helped set a valuation no Finnish investor group could plausibly have underwritten alone.
Finnish state and pension capital remained substantially represented, however. That marks a contrast with Oura, where both the ownership base and the legal domicile have shifted fully to the United States. Whether ICEYE eventually follows a similar path to full American ownership or redomiciliation remains an open question. The funding round does not resolve it either way.
The ICEYE’s competitive edge lies in its Finnish and European roots. As the European Union seeks to reduce its technological dependence on the United States, European technology companies such as ICEYE are well positioned to benefit from it. This shift strengthens the strategic importance of European-developed technologies and creates new opportunities for companies that can provide trusted, sovereign solutions in critical sectors.
The report, titled The Race Takes Off in the Next Big Arenas of Competition, runs to 127 pages and updates a 2024 McKinsey Global Institute study. It is based on data from 3,770 companies across 69 industries, according to McKinsey.
