Demand for R&D funding reaches record levels
Applications for research, development and innovation (R&D) funding from Business Finland have reached a record-breaking level of over EUR 800 million since the beginning of 2026. The total is almost as high as for the whole of 2025. Demand is expected to remain strong, and preparations are therefore being made to postpone some positive funding decisions to early next year.
“It is encouraging to see how Finnish companies recognise the importance of continuous development for their competitiveness. In our strategy, we have called for a step change in companies’ level of ambition—and this has clearly materialised. Our funding is targeted at the most ambitious projects that leverage private investment. Around 60% of companies’ funding applications have resulted in a positive funding decision during the early part of the year,” says Executive Director Timo Metsä-Tokila.
Micro-enterprises form the largest customer group in terms of number. In terms of euros, micro, small and medium-sized enterprises accounted for 45% of R&D funding this year, with the remainder allocated to midcap companies and large enterprises. The distribution of funding across company size categories corresponds to that of the previous year.
High demand delays some positive funding decisions
“In allocating the remaining R&D funding, we will prioritise SMEs in terms of timing. Unfortunately, for some eligible projects submitted by companies and research organisations, a positive funding decision can only be confirmed at the beginning of January 2027. In these cases, we will prepare the decision as far as possible in advance and inform the customer of the delay.”
Irrespective of the timing of the decision, consistent funding criteria derived from Business Finland’s strategic objectives are applied in the selection of projects to be funded.
Now is the right time to plan ambitious projects for next year
According to the General Government Fiscal Plan adopted by the Finnish Government, the amount of R&D funding to be awarded by Business Finland in 2027 will increase to nearly EUR 1 billion.
“Our authorisation to grant funding next year will be exceptionally high, ensuring funding opportunities for projects carried over from this year. Now is exactly the right time to plan new ambitious projects to be launched next year,” Metsä-Tokila advises.