Increased R&D funding to help renewal of society – Prime Minister Orpo submits announcement on multiannual plan to Parliament

The multiannual plan for the use of central government research and development funding allocates funds to expanding partnerships between private and public R&D parties and to accelerating private R&D investment. Other key objectives and funding allocations include strengthening R&D competence and researcher careers, supporting research and technology infrastructures, and promoting European and international partnerships.

Minister Petteri Orpo submitted to Parliament an announcement on the plan for the use of central government research and development funding, which the Government had approved in June.

“R&D funding must be targeted to achieve the desired positive impacts on competence, productivity and competitiveness,” says Prime Minister Orpo.

The Government has already made some of the planned allocations in its draft budget for 2025. Decisions were made in the government budget session to allocate additional funding, which totalled EUR 52 million on top of what was agreed in the government spending limits discussion. The decisions place particular emphasis on strengthening the funding of basic research, on improving research, product development and productivity in the social welfare, health and wellbeing sectors, on providing funding for research on sustainable development and forestry, on promoting R&D in the creative sectors, and on creating new research infrastructures.

Public funding expected to boost private sector investment in R&D 

For Finland to meet the spending objectives for research and development, the growth in business R&D investment would need to be at least twice as much in monetary terms in relation to the growth in public investment. R&D funding must promote extensively the renewal of industries, business life, the public sector and the third sector, and their ability to respond to national, even global, challenges.

The Government is committed to the principles for the development of the RDI system outlined by the Parliamentary Working Group on Research, Development and Innovation. These principles are predictability and long-term vision, leverage, comprehensiveness, scientific freedom and high quality research and education, impact, competition, cooperation, internationalisation, recognition of global challenges, and technology and industry neutrality. The Government will respect these principles when allocating R&D funding.

Creating a globally attractive RDI system for Finland

Finland seeks comprehensive and balanced development and reshaping of the RDI system. National funding must contribute to fostering international contacts in their various forms, and help attract global investment and expertise to Finland. 

“Finland is known around the world as a leading country in knowledge and education. I am confident that our businesses and public research organisations can increase their potential to succeed not only in Finland but also in international competition,” says Prime Minister Orpo.

The parliamentary groups are committed to raising research and development expenditure to four per cent of gross domestic product by 2030 and to increasing central government R&D funding. On this basis, Parliament enacted the Act on the Central Government Funding of Research and Development for 2024–2030, which determines the level of central government annual R&D expenditure. Under this R&D Funding Act, the Government will approve, once a parliamentary term, a plan for the use of R&D funding. The multiannual plan presents the current state of the research, development and innovation system, the objectives of the system and the main policies for the use of R&D funding. 

The Government will monitor the development of public and private R&D expenditure. Decisions on the actual allocation of funding will be made as part of the normal budgetary process. The annual increase in R&D funding will be around EUR 280 million. R&D funding is widely thought to be the best way to boost productivity growth, which is the most important source of long-term economic growth.

The plan was drawn up by working groups led by the Ministry of Education and Culture and the Ministry of Economic Affairs and Employment under the auspices of the Research and Innovation Council. The process involved extensive consultation with stakeholders.

Inquiries:
Henrik Vuornos, Special Adviser to the Prime Minister, Prime Minister’s Office, tel. +358 50 408 4422, and Johanna Moisio, Secretary-General, Research and Innovation Council, tel. +358 295 160 625