The pharmaceutical sector in Finland is economically significant relative to its size. It employs less than one percent of the business sector workforce but generates nearly ten percent of its operating profits. Between 2008 and 2019, the sector’s real value added increased by approximately 60 percent, while value added in the business sector as a whole declined. In 2024, the sector’s real value added remained at approximately the same level as in 2019. Labor productivity is more than twice the business sector average.
The pharmaceutical sector is also highly knowledge-intensive. More than one-third of its employees hold a master’s degree or equivalent, and nearly two-thirds work in specialist or managerial positions. In recent years, the sector’s exports have increased substantially, driven particularly by exports of alkaloid-based pharmaceuticals. Over the long term, Finland has kept pace with the growth of global pharmaceutical value chains, although its relative share has declined slightly in recent years.
Despite this positive development, the sector also faces challenges. Labor productivity has declined in recent years because value added has not increased at the same pace as labor input. Additionally, a strong concentration of exports in a single product group increases the sector’s vulnerability. Pharmaceutical R&D investment in Finland remains below the levels observed in Sweden and Denmark.
