[Exploring Finland's Innovation Ecosystem] ① Surpassing Nokia's Golden Era... A Startup Paradise

A Small Country with a Population of 5.5 Million
Home to 20 Unicorn Startups
Roughly Ten Times More per Capita Than Korea

Aalto University in Espoo, located about 20 minutes by car from Helsinki, Finland. On the 22nd (local time), students were assembling satellites by hand on a corner of the campus. From selecting parts to programming controllers, students handled every part of the process themselves. Jann Praks, Associate Professor of Electronics and Nanoengineering, whom we met here, introduced a startup.

"Metaktik, which develops ultra-lightweight antennas applicable to the aerospace and defense industries, succeeded in attracting 1 million dollars in investment just three days after its establishment last month." Aalto University students captivated investors with just one antenna technology based on thin-film structure.

Jann Praks, Associate Professor of Electronics and Nanoengineering, explained the current status of the Space Research Institute at Aalto University in Espoo, Finland on the 22nd. Photo by Lee Hyunju

Finland was once a country worried about economic decline. When 'national company' Nokia sold its mobile phone business to Microsoft in 2014, one pillar of the economy was shaken. However, startups have filled the void left by Nokia and have become a new growth engine. This small country, with a population of about 5.5 million—about one-tenth that of Korea—has as many as 20 unicorns (unlisted startups valued at over 1 trillion won). Compared to Korea, which has 27, this is roughly 10 times higher per capita.

According to the Finnish Technology Industries Association and the startup community on the 29th, the annual export volume of startups reached 10 billion euros (approximately 17.258 trillion won) last year. This figure achieved the target five years ahead of schedule. By 2030, it is expected to exceed 20 billion euros (about 34.516 trillion won), surpassing Nokia’s peak sales.

A graduate student studying at Aalto University in Espoo, Finland is explaining the facilities and equipment of the space research institute. Photo by Lee Hyunju

Finland is also cited as the European country with the highest venture capital (VC) investment relative to gross domestic product (GDP). From 2018 to 2022, the average VC investment as a percentage of GDP was 0.168%, maintaining top-tier investment stability ahead of countries such as the United Kingdom and Sweden. In 2024 alone, Finland attracted 1.5 billion euros in VC investment.

Industry-academia collaboration is a key reason why Finland has become a startup haven. Aalto University, created in 2010 through the merger of Helsinki University of Technology, Helsinki School of Economics, and University of Art and Design Helsinki, has become a cradle for startups. Aalto University has supported experiments and practical research that can be directly connected to industry. In particular, the Space Research Institute operated by Aalto University has gained global recognition by providing an environment for the development and testing of small satellites. The Space Research Institute is equipped with state-of-the-art test facilities, clean rooms, dedicated electronics laboratories, and even its own satellite ground station. Two operating science satellites also directly assist students’ research.

Associate Professor Praks commented, "Currently, our team is building small CubeSats and researching very low Earth orbit (VLEO) as a new project," adding, "Another group is studying space plasma and space science."

One of the promising startups spun out of Aalto University is ICEYE, the world’s largest company specializing in microsynthetic aperture radar (SAR). Founded in 2014, ICEYE provides data in the form of images using SAR technology. Co-founders Rafal Modrzewski and Pekka Laurila successfully launched the company while participating in a satellite development project at the university.

ICEYE’s satellites are lighter and smaller than conventional satellites, yet cost one-tenth as much. The resolution has improved from 25 centimeters to the current 6 centimeters, and the time required to download images has been reduced to less than ten minutes from several days previously. Since successfully launching its first satellite in 2018, ICEYE has launched 70 satellites to date. In the past year alone, they entered a phase of launching approximately 25 satellites annually. The satellites can capture high-resolution images regardless of weather, and recently succeeded in capturing images even after the Strait of Hormuz was blockaded.

Upon visiting ICEYE’s headquarters in Espoo, satellite manufacturing was underway at every stage of the assembly process. Damon Olloman, ICEYE’s Sales Director, said, "When I joined six years ago, there were about 100 employees, but now there are over 1,000."

ICEYE has sold satellites to several countries, including Germany, Sweden, the Netherlands, Portugal, and Japan. Last year, its sales exceeded 250 million euros, and it aims to surpass 1 billion euros by 2027.

Finland also actively invests in startups at the early technology stage. Startups supported by the Finnish Technology Industries Association from the idea stage include Blufors, which has grown into a leading company in quantum hardware, and IQM, a quantum-related company preparing to list in the United States. These companies are supported through donated funds, so no equity stake is taken in the startups.

Antti Aaranio, Executive Director of the Finnish Technology Industries Association, said, "We like to invest in ideas that are still in the early stages and not yet ready to receive investment," adding, "We believe that world-class innovation begins much earlier than most people think."

This content was produced with the assistance of AI translation services.