Joint study on spin-off companies: rapid growth in jobs and investment

The analysis finds that over 60 spin-off companies have emerged from VTT, collectively raising more than €1.2 billion in funding – the majority from the private sector. Their combined number of employees has grown from fewer than ten to nearly 900.

In recent years, Finland has seen many startup companies rooted in scientific research. Innovations developed by these companies, such as quantum chip manufacturing, district heating powered by small modular reactors, and food protein produced from carbon dioxide and bacterial biomass using electricity, have the potential to revolutionize entire industries. What these breakthroughs have in common is decades of investment in research at universities and research organizations like VTT.

The study concretely illustrates how new growth companies emerge gradually from research: public funding initially supports the development of technological breakthroughs from research ideas, which then evolve into commercially valuable solutions and lead to the founding of spin-off companies. These companies seek private funding and build scalable business models. The goal is to grow international, high-value-added businesses.

Based on financial statements, VTT-originated companies have significantly invested in intangible assets. Between 2013 and 2023, intangible assets increased from €8 million to €123 million.

“The numbers might sound small, but what’s essential is the rate of change. For a long time, Finland has struggled with companies investing mostly in tangible assets– basically, machines and buildings. Currently, new technology-based companies are increasingly investing in intangible capital, which likely has greater growth potential,” says Youssef Zad, Chief Economist of the Finnish Startup Community.

“VTT plays a unique role in Finland’s innovation ecosystem. Even after spinning off from VTT, these companies continue to invest in research and development. Innovations enable the emergence of new industries and high-value-added products,” adds Mio Silvennoinen, Senior Specialist at VTT.

Laura Juvonen, VTT’s Senior Vice President, emphasizes that the newly released analysis is a concrete example of the power of collaboration: “Together with the Startup Community, we can better support the birth and growth of science-based companies.”

VTT and the Finnish Startup Community launch cooperation

VTT has joined the Finnish Startup Community as a partner, with the aim of creating and advancing networks and growth opportunities for research-based startup companies, as well as generating new knowledge on the role of startups in Finland’s economy.

“We are very happy about this new collaboration and look forward to developing even more impactful cooperation between research and business,” says Riikka Pakarinen, CEO of the Finnish Startup Community.

VTT LaunchPad: A tailored incubator for high-quality spin-off companies

VTT supports its research teams in developing VC-fundable, internationally scalable startups based on VTT’s intellectual property through its LaunchPad incubator. The goal is to generate impact through ambition and international funding.

More information about the incubator

Read the full report: VTT spinoffs report - From research to scale