Espoo is the most deep tech-oriented, international, and competitive startup city in Finland, according to a new study on early-stage Finnish startups.
A new study on early-stage Finnish startups reveals that Espoo's startup scene is the national leader in research and science-based technologies (i.e. deep tech), has the most internationally diverse founders, and is the most growth-oriented. Espoo's deep tech focus, combined with the startups' strong ambition to grow, the use of English as the primary working language, and a high number of founders coming from outside of Finland, contributes to the competitiveness of Espoo's startup ecosystem.
Finland's deep tech epicentre
According to the study, the startups in Espoo share a strong focus on deep tech, particularly in areas such as quantum technology, microelectronics, and semiconductors, when compared to many other cities in Finland.
The startups in Espoo are working in various industries, including quantum technology, microelectronics, semiconductors, space tech, cybersecurity, dual-use defence tech, and more. The study notes that Espoo's deep tech focus stems from, for example, the following factors:
- A high share of founders have strong technical and business backgrounds.
- New startups with IP, prototypes and research teams spin out of R2B projects and deep tech research from the Aalto University.
- Espoo's startup community offers Finland's best selection of startup support programs, such as Kiuas, A Grid, ESA BIC, etc., that have a significant role in helping new teams form and validate ideas.
Espoo startups go global
Espoo's startups are more outward-facing and growth-oriented than those in other Finnish startup ecosystems, the study reveals — Sweden, Germany, the UK, Ireland, and the USA featuring as the top target markets.
72% of Espoo's early-stage startups are pursuing rapid international growth, with more than a quarter going global from the outset.
The study states that among the reasons for the startups' faster growth are Espoo's deep tech focus and the fact that many startups are born through startup programs or university research. In Espoo, early-stage startups also receive better initial support and validation, possess higher technological and competitive advantages, and gain better access to funding and networks within the ecosystem.
International atmosphere attracts talent
English is the prevailing working language used by the Espoo startups, the study shows, with 71% of companies operating in English. Additionally, a significant proportion of startup founders have an international background.
The study concludes that the international atmosphere in Espoo's startup scene contributes to several success factors. For example, the widespread use of English attracts international talent and supports the global mindset. Meanwhile, internationally mobile startups are relocating to Espoo (one-third of the startups have been founded in other Finnish cities). Overall, the influx of new talent, ideas, and international networks strengthens the city's startup ecosystem and long-term competitiveness.
