Research and development (R&D) investment by startups originating from VTT Technical Research Centre of Finland continued to grow strongly in 2024. In 2024, these companies invested approximately €63 million in R&D activities. The majority of their employees work in research and development roles, while around one quarter hold doctoral degrees. A new analysis by VTT and the Finnish Startup Community provides a more detailed picture of the companies’ operations than last year’s report.
VTT spinouts – companies founded on research and technological innovations developed at VTT – form a vital part of Finland’s innovation ecosystem. Many operate in the deep tech sector, where new technologies are developed through long-term research in fields such as quantum technology, energy and biotechnology.
According to the latest data from 2024, VTT spinouts employed more than 870 people. Most of these employees work in research and development positions, highlighting the companies’ active role in innovation and the creation of new technologies.
Research focus reflected in investment levels
The strong emphasis on research is also evident in the companies’ investment activity. In 2024, VTT spinouts invested approximately €63 million in research and development, continuing the robust growth seen in recent years.
In 2024, the R&D investments made by VTT spinouts accounted for around one per cent of Finland’s total R&D expenditure and increased by 29 per cent compared with the previous year.
“Research-based startups are rapidly becoming one of the cornerstones of the Finnish economy. Their current levels of R&D investment and increasingly highly educated workforce demonstrate this exceptionally well,” says Amir Hassan, economist at the Finnish Startup Community.
The companies’ growing ability to attract funding from capital markets enables them to invest in research, product development and the recruitment of highly skilled experts. Funds raised in early financing rounds are primarily directed towards research and development activities as well as talent acquisition.
“Deep tech companies are not built in a quarter – they are built over years. Long-term financing is essential if research is to be transformed into scalable business,” says Mio Silvennoinen, business analyst at VTT.
This analysis complements the report published in 2025 by providing a more detailed understanding of how these companies operate. In particular, it highlights the central role of research and development activities and highly skilled personnel more clearly than before.
The joint analysis by VTT and the Finnish Startup Community is based on company financial data, funding data and register-based data from Statistics Finland.
Download the report.