[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 one side of the campus. From selecting components to programming controllers, students were responsible for the entire process. Jann Praks, Associate Professor of Electronics and Nanoengineering, whom we met here, introduced a startup.

"Metaktik, which creates ultra-lightweight antennas for applications in the aerospace and defense industries, succeeded in securing a $1 million investment just three days after its establishment last month." With their thin-film-based antenna technology, Aalto University students were able to quickly capture the attention of investors.

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 concerned about national decline. When its "national champion" company Nokia sold its mobile phone business to Microsoft in 2014, one pillar of the Finnish economy was shaken. However, the vacuum left by Nokia has since been filled by startups, which have emerged as a new growth engine. This small country with a population of approximately 5.5 million—about one-tenth that of South Korea—now has 20 unicorns (unlisted startups valued at more than 1 trillion won). Compared to South Korea, which has 27 unicorns, the per capita figure is about 10 times higher.

According to the Finnish Technology Industries Association and the startup community on April 29, Finland's annual startup export volume reached 10 billion euros (about 17.258 trillion won) last year. This milestone was achieved five years ahead of schedule. By 2030, exports are expected to surpass 20 billion euros (about 34.516 trillion won), a scale that exceeds Nokia's peak revenue.

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 as a proportion of gross domestic product (GDP). From 2018 to 2022, the average ratio of VC investment to GDP was 0.168%, outpacing the UK and Sweden and maintaining a top-tier level of investment stability. In 2024 alone, Finland attracted 1.5 billion euros in VC investments.

Collaboration between academia and industry is a key reason why Finland has become a paradise for startups. Aalto University, created in 2010 from the merger of the Helsinki University of Technology, the Helsinki School of Economics, and the University of Art and Design Helsinki, has become a cradle for startups. The university has supported experiments and practical research that can be directly linked 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 institute is equipped with state-of-the-art testing facilities, including cleanrooms and dedicated electronics laboratories, and operates its own satellite ground station. Two scientific satellites currently in orbit also support students' hands-on research.

Associate Professor Praks said, "Our team is currently developing small CubeSats and is researching the very low Earth orbit (VLEO) as a new project. Another group is studying space plasma and space science."

Among the promising startups spun off from Aalto University is ICEYE, the world's largest provider of ultra-small synthetic aperture radar (SAR) satellites. Established in 2014, ICEYE delivers observable data in image form 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 traditional satellites, while also being ten times more affordable. Their resolution has improved from 25 cm to the current 6 cm, and the time required to download images has been reduced from several days to less than ten minutes. Since successfully launching its first satellite in 2018, ICEYE has sent a total of 70 satellites into orbit. In the past year alone, it has entered a phase of launching approximately 25 satellites annually. High-definition imaging is possible regardless of weather conditions, and ICEYE recently succeeded in capturing images even after the Hormuz Strait was blocked.

A visit to ICEYE's headquarters in Espoo revealed satellite assembly underway in every part of the production process. Damon Olloman, ICEYE's Sales Director, said, "When I joined six years ago, we had about 100 employees. Now, the number exceeds 1,000."

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

Finland actively invests even in early-stage startups. Startups that received support from the Finnish Technology Industries Association at the idea stage include Blufors, a leading company in quantum hardware, and IQM, a quantum technology company preparing to go public in the United States. These companies are financially supported through donated funds, and the association does not take equity stakes in the startups.

Antti Aarnio, Managing Director of the Finnish Technology Industries Association, stated, "We like to invest in ideas that are still in their early stages and not yet ready for outside investment. We believe that world-class innovation often gets started much earlier than people typically think."

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