Finland’s economy needs a new direction – together we can build a stronger future

Finland’s economy has remained stagnant for nearly two decades. The effects are evident in everyday life, the business environment, and throughout society. I began my professional career after graduating in 2007, and I have yet to experience a true period of economic growth. I have observed these developments both from statistics and in practice. The current signals are somewhat worrying:

1. According to Statistics Finland’s May 2025 report, the number of companies filing for bankruptcy continues to rise, reaching levels not seen since 1996.
2. Unemployment remains on the rise, with a record number of highly educated professionals out of work.
3. Structural challenges in the Finnish economy, coupled with Europe’s limited ability to respond to global competition and the rise of artificial intelligence, have made the situation increasingly complex.
   

In a recent discussion, LinkedIn co-founder and venture capitalist Reid Hoffman urged Europe to stop acting like the referee in the global AI race and start playing the game. Comparing AI development to a World Cup match between the US and China, he noted that referees don’t win and aren’t popular. To shape the future of AI, Europe must actively participate in innovation, not just regulate from the sidelines.

What can we do?

Despite the challenges, we at Hub Panostamo believe there are real opportunities for change. We are actively working to support Finnish expertise, entrepreneurship, and innovation:

1. We must remove barriers to entrepreneurship. Becoming an entrepreneur should be an attractive, viable, and respected career path. It is also essential not to stigmatize failure. Not every venture will succeed, but every experience is an opportunity to learn and grow. Fortunately, younger generations already see entrepreneurship as a positive and appealing option.
2. We must create better conditions for early-stage startups and growing scaleups. Bold, innovative products and services can renew the economy, open up new markets, and generate high-value jobs. Instead of searching for the next Nokia, perhaps we should be aiming to create ten new small-scale Nokias.
3. We can learn from peer countries. Ireland, for example, offers valuable insights into taxation and innovation support. Finland’s competitiveness can be strengthened by becoming more attractive to international investment and talent. Raising research and development investments to four per cent of GDP by 2030 is an ambitious but necessary goal.
4. We must strengthen the commercialisation of research and support the entrepreneurship society’s (ES) activities within universities and research institutions. By better connecting research, business, and funding, we can transform scientific knowledge into real-world impact through improved technology transfer, researcher entrepreneurship, and collaboration.

Hub Panostamo is building a better tomorrow

At Hub Panostamo, we don’t just observe change, we enable it. Through our Kipinä program, we provide early-stage startups with the tools, support, and community they need to develop and grow their business.

Kipinä helps founders strengthen their ideas, refine their business models, and take concrete steps toward sustainable growth. With mentoring, peer support, and access to networks, startups gain a solid foundation for the future.

We believe progress comes from expertise, bold thinking, and collaboration. The challenges are real, but so are the opportunities. Now is the time to act, so sign up for the Kipinä program, which kicks off in January 2026! The Hub Panostamo Kipinä program is co-funded by the European Union.

About the author

Juhamatti Huusko, PhD, is a program leader for the Hub Panostamo Kipinä program, a board member at Hub Panostamo, and an entrepreneur at Navigatio Oy. With almost 20 years of experience in startups, SMEs, large companies, and academia, he specialises in strategy, customer insights, productisation, and sales.