Finland possesses strong expertise in digital technologies classified by the EU as critical. A new publication by The Finnish Innovation Fund Sitra, Technology Industries of Finland, and VTT Technical Research Centre of Finland recommends, among other things, incorporating Finland’s lead company model into the EU innovation funding and increasing research and development spending in Finland’s defence budget.
Security and industrial competitiveness increasingly depend on strategic technologies and the ability to develop and apply them. The shifting global landscape and the twin transition toward digital and green solutions have intensified the need to build capabilities particularly in digital technologies such as artificial intelligence, semiconductors, and quantum computing.
Critical technologies defined by the EU
- Advanced semiconductors
- Artificial intelligence
- Quantum technologies
- Biotechnologies
- Advanced connectivity & digital technologies
- Advanced sensing
- Space & propulsion
- Energy technologies
- Robotics & autonomous systems
- Advanced materials & manufacturing
In their joint publication Critical Digital Tech from Finland: Driving Growth and Security in Europe, Sitra, Technology Industries of Finland, and VTT argue that to reach these goals, the EU must allocate a larger share of its budget to the development and deployment of critical technologies. In parallel, the structures supporting innovation and the ability to attract top talent need to be strengthened consistently both in Finland and in the EU.
– The EU provides funding, opens markets, and shapes regulations for critical technologies, creating opportunities for companies and research institutions in Finland as well. It is essential that EU actions prioritise excellence rather than levelling regional disparities. In innovation funding, the EU could learn from Finland’s successful lead company model, which ensures corporate commitment to the innovation process, says Joonas Mikkilä, Senior Advisor at Technology Industries of Finland.
Policy redommendations for the EU
- Company-led approach to EU RDI funding
- Excellence-driven EU budget for critical digital technologies
- European Critical Tech Fund
- Europe as the primary destination for global tech talent
- Future-fit EU tech regulation
- Innovative procurement of critical digital technologies
- EU leadership in standardisation for critical digital technologies
- Europe’s global influence through secure digital infrastructure
Finland is home to deep expertise and a strong base of research and business activity in many of the EU’s critical technology areas. The policy brief highlights AI, high-performance computing, semiconductors, quantum technologies, telecommunications, space technologies, and cybersecurity.
– Finland has carved out a pivotal role on Europe’s technology map, showing how smaller nations can lead by example. We demonstrate how the convergence of technologies can accelerate development across sectors. One example is the integration of CSC’s LUMI supercomputer and VTT’s quantum computer. We must create and seize more of these opportunities for cross-disciplinary and cross-sectoral collaboration, says Jenny Hasu, Manager of Digital Technologies at VTT.
Policy recommendations for Finland
- Expansion of the Lead Company Model for development and convergence of critical digital technologies
- Finnish framework for attracting and retaining global tech talent
- Increased investments in Finland’s critical digital tech ecosystem
- Alliance-based funding model for critical technology data ecosystems
- AI-native software development for critical digital technologies
- Enhanced RDI focus in the Finnish defence budget
Finland’s success in critical technologies depends on close and long-term cooperation between the state, industry, and research institutions. Global competition and an uncertain operating environment underscore the need for strategic alignment and agile, well-informed decision-making. The publication proposes measures to strengthen policymakers’ understanding of technology, as well as to raise international awareness of Finland’s critical tech capabilities.
– To seize the opportunities, we need even more determined public–private cooperation in the technology field. With this collaboration grounded in strong structures, we can better anticipate the impacts of technological developments, allocate resources strategically, and establish thought leadership on the global stage, says Laura Halenius, Senior Advisor at Sitra.
The joint publication offers recommendations for both the EU and Finland to leverage critical technologies in strengthening growth and security. Sitra, Technology Industries of Finland, and VTT are committed to fostering new collaboration initiatives with stakeholders.
Critical digital tech: Overview (pdf)
