Finnish companies respond to the recession by increasing R&D

Demand for Tekes R& D funding grew by more than 40 per cent in the early part of the year compared with the corresponding period a year earlier. The large increase indicates companies’ desire to modernise as a way of overcoming the recession.

Companies applied for 391 million euros in R&D funding from Tekes in January−June, which is 43 per cent more than in early 2008. Demand grew most in the service, food, energy, environmental, metal and construction sectors.

“The large increase in funding applied for shows that companies are eager to modernise during the economic downturn, which is excellent,” says Veli-Pekka Saarnivaara, Director General of Tekes.

In January-June 2009, Tekes made funding decisions totalling 360 million euros, of which 217 million euros were targeted at business R&D and innovation and 143 million euros at research projects in universities and research institutions. Tekes committed 65 per cent of its funding authorisations for this year by the decisions. A total of 63 per cent of the funding granted for enterprise projects was targeted at SMEs. The proportion has clearly increased on the previous year.

Projects completed during the first part of the year resulted in approximately 700 new or replacement products, services or production processes. The projects generated about 400 patent applications. In the longer term, the impacts of R&D and innovation activity are reflected in enterprise growth and internationalisation, new business operations and an upswing in prosperity and the national economy. Many of the projects also have positive climate and the environmental impacts.

For more information please contact

Ari Grönroos, Executive Director, R&D funding
tel. +358 50 5577 770
ari.gronroos(at)tekes.fi