---
title: "The Prerequisites for Increasing the R&D Activity of Companies in Finland"
authors:
  - name: "Ali-Yrkkö, Jyrki"
    url: "https://www.etla.fi/henkilot/ali-yrkko-jyrki/"
    sameAs:
      - "https://orcid.org/0009-0005-2977-6878"
  - name: "Halme, Kimmo"
  - name: "Deschryvere, Matthias"
  - name: "Lehenkari, Janne"
  - name: "Piirainen, Kalle"
  - name: "Suominen, Arho"
date_published: "2021-09-09"
series: "ETLA Muistio - ETLA Brief"
series_number: "98"
issn:
  - "2323-2463"
jel_codes:
  - "D22"
  - "D25"
  - "E22"
  - "F23"
  - "H25"
  - "O3"
  - "O32"
  - "O38"
language: "fi"
publisher: "ETLA Economic Research"
pdf_url: "https://www.etla.fi/wp-content/uploads/ETLA-Muistio-Brief-98.pdf"
identifier: "https://www.etla.fi/julkaisut/id/ETLA-Muistio---ETLA-Brief-98"
abstract_translations:
  en: "This study focuses on factors affecting companies’ research and development (R&D), Finland as a location for R&D activities, and R&D intensity (R&D/GDP). According to our results, R&D investments are increasing in Finland but the R&D intensity will not reach 4 % target by 2030. Our results showed that Sweden, Estonia (and to some extent other Baltic countries), and Germany are Finland’s main competitors regarding the location of R&D investments. The key factors affecting R&D location are the availability of R&D personnel, and the geographical proximity to the companies’ other units and customers. We recommend comprehensive and long-term innovation policy which considers policy actions – not only affecting the increase of R&D and its impacts – but also the increase of capabilities. It should be noted, however, that rather than the ultimate target, R&D is a means to reach other goals."
---

# The Prerequisites for Increasing the R&D Activity of Companies in Finland

**Published:** 2021-09-09  
**Categories:** Promemoria, Publikationer  
**URL:** https://www.etla.fi/sv/publikationer/milla-edellytyksilla-yritysten-tutkimus-ja-kehittamispanostukset-kasvavat-suomessa/

#### Abstract

This study focuses on factors affecting companies’ research and development (R&D), Finland as a location for R&D activities, and R&D intensity (R&D/GDP). According to our results, R&D investments are increasing in Finland but the R&D intensity will not reach 4 % target by 2030. Our results showed that Sweden, Estonia (and to some extent other Baltic countries), and Germany are Finland’s main competitors regarding the location of R&D investments. The key factors affecting R&D location are the availability of R&D personnel, and the geographical proximity to the companies’ other units and customers. We recommend comprehensive and long-term innovation policy which considers policy actions – not only affecting the increase of R&D and its impacts – but also the increase of capabilities. It should be noted, however, that rather than the ultimate target, R&D is a means to reach other goals.

---

## Additional Information

**Kirjoittajat:** Ali-Yrkkö, Jyrki - Halme, Kimmo - Deschryvere, Matthias - Lehenkari, Janne - Piirainen, Kalle - Suominen, Arho

**Publication Research:** No

**Kansikuva:** https://www.etla.fi/wp-content/uploads/etla-muistio-brief-98-kansi.jpg

**Lataa Pdf:** https://www.etla.fi/wp-content/uploads/ETLA-Muistio-Brief-98.pdf

**Key Words:** R&D, Research, Development, Target, Location, Factors, Private, Company, Firm, Competition

**Jel:** D22, D25, E22, F23, H25, O3, O32, O38

**Paivays:** 09.09.2021

**Sivuja:** 7

**Kieli:** fi

**Sarja:** ETLA Muistio - ETLA Brief

**Sarja Nro:** 98

**Issn:** 2323-2463

**Saatavuus:** 2

65352

## Bibliographic metadata (JSON-LD)

```json
{
    "@context": "https://schema.org",
    "@type": "ScholarlyArticle",
    "@id": "https://www.etla.fi/julkaisut/id/ETLA-Muistio---ETLA-Brief-98",
    "headline": "The Prerequisites for Increasing the R&D Activity of Companies in Finland",
    "inLanguage": "fi",
    "publisher": {
        "@type": "Organization",
        "name": "ETLA Economic Research",
        "url": "https://www.etla.fi",
        "logo": {
            "@type": "ImageObject",
            "url": "https://www.etla.fi/wp-content/uploads/logo-etla_logo.svg"
        }
    },
    "datePublished": "2021-09-09T00:00:00+00:00",
    "author": [
        {
            "@type": "Person",
            "name": "Ali-Yrkkö, Jyrki",
            "url": "https://www.etla.fi/henkilot/ali-yrkko-jyrki/",
            "sameAs": [
                "https://orcid.org/0009-0005-2977-6878"
            ]
        },
        {
            "@type": "Person",
            "name": "Halme, Kimmo"
        },
        {
            "@type": "Person",
            "name": "Deschryvere, Matthias"
        },
        {
            "@type": "Person",
            "name": "Lehenkari, Janne"
        },
        {
            "@type": "Person",
            "name": "Piirainen, Kalle"
        },
        {
            "@type": "Person",
            "name": "Suominen, Arho"
        }
    ],
    "abstract": "",
    "keywords": [
        {
            "@type": "DefinedTerm",
            "name": "R&D",
            "@language": "en"
        },
        {
            "@type": "DefinedTerm",
            "name": "Research",
            "@language": "en"
        },
        {
            "@type": "DefinedTerm",
            "name": "Development",
            "@language": "en"
        },
        {
            "@type": "DefinedTerm",
            "name": "Target",
            "@language": "en"
        },
        {
            "@type": "DefinedTerm",
            "name": "Location",
            "@language": "en"
        },
        {
            "@type": "DefinedTerm",
            "name": "Factors",
            "@language": "en"
        },
        {
            "@type": "DefinedTerm",
            "name": "Private",
            "@language": "en"
        },
        {
            "@type": "DefinedTerm",
            "name": "Company",
            "@language": "en"
        },
        {
            "@type": "DefinedTerm",
            "name": "Firm",
            "@language": "en"
        },
        {
            "@type": "DefinedTerm",
            "name": "Competition",
            "@language": "en"
        }
    ],
    "isPartOf": {
        "@type": "PublicationIssue",
        "issueNumber": "98",
        "isPartOf": {
            "@type": "Periodical",
            "name": "ETLA Muistio - ETLA Brief",
            "issn": "2323-2463"
        }
    },
    "mainEntityOfPage": "https://www.etla.fi/sv/publikationer/milla-edellytyksilla-yritysten-tutkimus-ja-kehittamispanostukset-kasvavat-suomessa/",
    "url": "https://www.etla.fi/sv/publikationer/milla-edellytyksilla-yritysten-tutkimus-ja-kehittamispanostukset-kasvavat-suomessa/",
    "hasPart": {
        "@type": "CreativeWork",
        "inLanguage": "en",
        "text": "This study focuses on factors affecting companies’ research and development (R&D), Finland as a location for R&D activities, and R&D intensity (R&D/GDP). According to our results, R&D investments are increasing in Finland but the R&D intensity will not reach 4 % target by 2030. Our results showed that Sweden, Estonia (and to some extent other Baltic countries), and Germany are Finland’s main competitors regarding the location of R&D investments. The key factors affecting R&D location are the availability of R&D personnel, and the geographical proximity to the companies’ other units and customers. We recommend comprehensive and long-term innovation policy which considers policy actions – not only affecting the increase of R&D and its impacts – but also the increase of capabilities. It should be noted, however, that rather than the ultimate target, R&D is a means to reach other goals.",
        "keywords": [
            {
                "@type": "DefinedTerm",
                "name": "R&D",
                "@language": "en"
            },
            {
                "@type": "DefinedTerm",
                "name": "Research",
                "@language": "en"
            },
            {
                "@type": "DefinedTerm",
                "name": "Development",
                "@language": "en"
            },
            {
                "@type": "DefinedTerm",
                "name": "Target",
                "@language": "en"
            },
            {
                "@type": "DefinedTerm",
                "name": "Location",
                "@language": "en"
            },
            {
                "@type": "DefinedTerm",
                "name": "Factors",
                "@language": "en"
            },
            {
                "@type": "DefinedTerm",
                "name": "Private",
                "@language": "en"
            },
            {
                "@type": "DefinedTerm",
                "name": "Company",
                "@language": "en"
            },
            {
                "@type": "DefinedTerm",
                "name": "Firm",
                "@language": "en"
            },
            {
                "@type": "DefinedTerm",
                "name": "Competition",
                "@language": "en"
            }
        ]
    },
    "associatedMedia": {
        "@type": "MediaObject",
        "@id": "https://www.etla.fi/wp-content/uploads/ETLA-Muistio-Brief-98.pdf",
        "encodingFormat": "application/pdf",
        "contentUrl": "https://www.etla.fi/wp-content/uploads/ETLA-Muistio-Brief-98.pdf"
    },
    "sameAs": [
        "https://www.etla.fi/julkaisut/milla-edellytyksilla-yritysten-tutkimus-ja-kehittamispanostukset-kasvavat-suomessa/",
        "https://www.etla.fi/en/publications/milla-edellytyksilla-yritysten-tutkimus-ja-kehittamispanostukset-kasvavat-suomessa/",
        "https://www.etla.fi/sv/publikationer/milla-edellytyksilla-yritysten-tutkimus-ja-kehittamispanostukset-kasvavat-suomessa/"
    ]
}
```