Legislation and funding are the main tools by which the EU implements its objectives. The European Commission’s proposal for the next Multiannual Financial Framework strongly supports the Union’s strategic objectives, emphasising competitiveness, defence and security, as well as technological sovereignty. In terms of research, development and innovation, the proposal is well aligned with Finland’s goals and, if implemented, offers Finnish stakeholders good opportunities to benefit from European cooperation and funding.
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- Investments will focus on reinforcing RDI activities and technological sovereignty, supported by proposals to increase the Horizon Europe budget and facilitate collaborative projects.
- The EU aims to address the “valley of death” in technology development by fostering collaborations between private and public sectors, exemplified by new initiatives like EU Tech Frontrunners.
- VTT plays a crucial role in fostering partnerships within EU RDI networks and significantly contributes to Finnish success in Horizon Europe funding, being the most active Finnish participant in EU defence initiatives.
This summary is written by AI and checked by a human.
The upcoming EU’s Multiannual Financial Framework (MFF) for 2028–2034, currently under discussion, is based on the proposal published by the European Commission in July. Decisions are now being made on where the EU will invest in the coming years and how shared objectives will be financed.
This time, the EU’s top priorities are clear: competitiveness, security and defence. The Union’s added value is strengthened by directing EU funding more intensively towards European public goods that benefit the entire Union, such as internal and external security, as well as research and development. The Commission’s proposal provides a strong basis for advancing these goals.
Emphasising technological sovereignty and research and innovation supports the EU’s common objectives. The proposal’s modernized structure reinforces the link between industrial policy and RDI activities, particularly through the new European Competitiveness Fund and the Horizon Europe programme. The pillar structure of Horizon Europe will largely remain as it is, but the strong emphasis on competitiveness and technological sovereignty will enhance the impact of RDI investments.
The thematic priorities of the proposal correspond to Finland’s national objectives.
The proposal to nearly double the Horizon Europe budget is extremely welcome news. However, in the challenging negotiations ahead, it is important to safeguard the strong position and funding of research and innovation. It is also vital to ensure that a greater share of RDI funding than proposed by the Commission is allocated to projects that develop and bring technology closer to market in collaboration with businesses, public sector actors and technology infrastructures. This approach helps overcome the so-called “valley of death” – the high-risk and high-investment stage in which technology or new solutions are tested and scaled towards commercial exploitation. This stage has been identified as one of the EU’s weaknesses.
The Commission’s proposal also introduces new mechanisms to promote the exploitation of results from collaborative projects between private and public actors, for example, in the form of business-led consortia, so-called EU Tech Frontrunners.
The thematic priorities of the proposal correspond to Finland’s national objectives and support, among others, the development of defence, space, biotechnology, as well as the dual-use technologies. In addition to the above-mentioned themes, it is important to secure sufficient resources for the development of clean transition solutions.
Although several details – such as linkages and connections between the Competitiveness Fund and Horizon Europe, as well as streamlining of administrative processes – are still open, the overall picture appears very promising. At this stage, it is essential that Finnish stakeholders participate actively in discussions and influence the negotiations to ensure that the core content of this modern proposal is preserved in the final agreement.
VTT is an active participant in EU RDI networks and Horizon Europe (2021-2027), the EU's largest RDI program.
• VTT has 4,100 partner organizations in the programme's projects, of which 1,950 are companies.
• Partnership with VTT helps Finnish companies leverage EU programmes. 26% of Horizon Europe funding to Finnish companies is obtained in projects with VTT. Finnish companies are in 66% of the Horizon Europe projects coordinated by VTT.
• VTT accounts for 15% of all Horizon Europe funding received by Finland, which is the highest share in Finland.
• VTT ranked 17th among the 22,300 recipients of EU research funding.
• VTT spin offs have attracted 7% of Finnish SMEs Horizon Europe funding
VTT is the most active Finnish participant in the European Defense Fund (EDF), which aims to increase the competitiveness, efficiency, and innovation capacity of the European defense industry and research community.
