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Venture Capital Industry in Finland - Country Report for the Venture Fun Project

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Author Info
Terttu Luukkonen
Abstract

ABSTRACT : This report is a descriptive account of the major features of the Venture Capital (VC) Industry in Finland. It has been prepared as a background report for a project entitled Venture Fun, carried out in an EU Network of Excellence PRIME and funded from the Sixth Framework Programme. The report provides a brief overview of the evolution and present structures of the VC industry in Finland, and draws attention to factors that affect the development of VC industry, among others, to the nature of policies pursued in this field. One of its observations is the fact that the primary rationale for policies has been closing the early phase funding gap for start-ups, the promotion of SMEs, regional development or other socio-economic objectives, rather than the promotion of VC industry. As a result, policy measures have tended to be permanent, not temporary, since the objectives are difficult to achieve in a fixed time period. Furthermore, the policies pursued have made a separation of the monetary and non-monetary value-adding functions of VC, and only recently have acknowledged the value of the latter for the growth of high-tech start-ups.

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Paper provided by The Research Institute of the Finnish Economy in its series Discussion Papers with number 1003.

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Length: 48 pages
Date of creation: 01 Mar 2006
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Handle: RePEc:rif:dpaper:1003

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Related research
Keywords: venture capital; start-ups; venture capital -directed policy; innovation policy;

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Find related papers by JEL classification:
O16 - Economic Development, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment
O38 - Economic Development, Technological Change, and Growth - - Technological Change - - - Government Policy

This paper has been announced in the following NEP Reports:

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Stefan Napel & Mika Widgrén, 2006. "The European Commission – Appointment, Preferences and Institutional Relations," Discussion Papers 6, Aboa Centre for Economics. [Downloadable!]
    Other versions:
  2. Sergey Sutyrin & Vladimir Sherov, 2005. "Russian Regions and Their Foreign Trade," Discussion Papers 995, The Research Institute of the Finnish Economy. [Downloadable!]
  3. Pekka Sulamaa & Mika Widgrén, 2005. "Asian Regionalism versus Global Free Trade: A Simulation Study on Economic Effects," Discussion Papers 985, The Research Institute of the Finnish Economy. [Downloadable!]
  4. Ari Hyytinen & Mika Pajarinen, 2005. "Why Are All New Entrepreneurs Better Than Average? Evidence from Subjective Failure Rate Expectations," Discussion Papers 987, The Research Institute of the Finnish Economy. [Downloadable!]
  5. Lemola, Tarmo, 2002. "Convergence of national science and technology policies: the case of Finland," Research Policy, Elsevier, vol. 31(8-9), pages 1481-1490, December. [Downloadable!] (restricted)
  6. Ari Hyytinen & Mika Pajarinen, 2005. "Yrittäjäksi ryhtyminen ja yrittäjyysasenteet Suomessa: Havaintoja kyselytutkimuksesta," Discussion Papers 990, The Research Institute of the Finnish Economy. [Downloadable!]
  7. Christopher Palmberg & Pekka Ylä-Anttila, 2006. "The Specificities of Finnish Industrial Policy - Challenges and Initiatives at the Turn of the Century," Discussion Papers 973, The Research Institute of the Finnish Economy. [Downloadable!]
  8. Jyrki Ali-Yrkkö, 2005. "Impact of Public R&D Financing on Employment," Economics Working Papers 039, European Network of Economic Policy Research Institutes. [Downloadable!]
  9. Mika Maliranta & Pekka Ilmakunnas, 2005. "Decomposing productivity and wage effects of intra-establishment labor restructuring," Discussion Papers 993, The Research Institute of the Finnish Economy. [Downloadable!]
    Other versions:
  10. Arto Seppä, 2006. "Open Source in Finnish Software Companies," Discussion Papers 1002, The Research Institute of the Finnish Economy. [Downloadable!]
  11. Mika Widgrén, 2005. "Revealed Comparative Advantage in the Internal Market," Discussion Papers 989, The Research Institute of the Finnish Economy. [Downloadable!]
  12. Elias Oikarinen, 2005. "The Diffusion of Housing Price Movements from Centre to Surrounding Areas," Discussion Papers 979, The Research Institute of the Finnish Economy. [Downloadable!]
  13. Juha Alho & Niku Määttänen, 2006. "Aggregate Mortality Risk and the Insurance Value of Annuities," Discussion Papers 1005, The Research Institute of the Finnish Economy. [Downloadable!]
  14. Elias Oikarinen, 2005. "Is Housing Overvalued in the Helsinki Metropolitan Area?," Discussion Papers 992, The Research Institute of the Finnish Economy. [Downloadable!]
  15. Ville Kaitila & Maarit Lindström & Ewa Balcerowicz, 2005. "Puolan liiketoimintaympäristö ja suomalaisten yritysten kokemukset," Discussion Papers 994, The Research Institute of the Finnish Economy. [Downloadable!]
  16. Raine Hermans & Martti Kulvik, 2005. "Initiatives on a Sustainable Development Strategy for Finnish Biotechnology," Discussion Papers 988, The Research Institute of the Finnish Economy. [Downloadable!]
  17. Jyrki Ali-Yrkkö & Raine Hermans, 2002. "Nokia in the Finnish Innovation System," Discussion Papers 811, The Research Institute of the Finnish Economy. [Downloadable!]
  18. Ari Hyytinen & Mika Pajarinen, 2001. "Financial Systems and Venture Capital in Nordic Countries: A comparative Study," Discussion Papers 774, The Research Institute of the Finnish Economy. [Downloadable!]
  19. Christopher Palmberg & Mika Pajarinen, 2005. "Alliance Capitalism and the Internationalisation of Finnish Firms," Discussion Papers 991, The Research Institute of the Finnish Economy. [Downloadable!]
  20. Jyrki Ali-Yrkkö & Anthony de Carvalho & Paavo Suni, 2005. "Intia maailmantaloudessa," Discussion Papers 977, The Research Institute of the Finnish Economy. [Downloadable!]
  21. Raine Hermans & Terttu Luukkonen, 2002. "Findings of the ETLA Survey on Finnish Biotechnology Firms," Discussion Papers 819, The Research Institute of the Finnish Economy. [Downloadable!]
  22. Terttu Luukkonen, 2004. "Patentointi biotekniikka-alalla," Discussion Papers 938, The Research Institute of the Finnish Economy. [Downloadable!]
  23. Jyrki Ali-Yrkkö, 2005. "Impact of Public R&D Financing on Employment," Discussion Papers 980, The Research Institute of the Finnish Economy. [Downloadable!]
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Full references

Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Olli Martikainen & Jussi Autere & Markku Nurmela, 2006. "Performance Improvement in Public Organizations, How to Leverage ICT Investments," Discussion Papers 1022, The Research Institute of the Finnish Economy. [Downloadable!]
  2. Kari Alho, 2006. "Climate Policies and Economic Growth," Discussion Papers 1024, The Research Institute of the Finnish Economy. [Downloadable!]
  3. Terttu Luukkonen & Mari Maunula, 2006. "`Coaching´ Small Biotech Companies into Success: The Value-adding Function of VC," Discussion Papers 1032, The Research Institute of the Finnish Economy. [Downloadable!]
  4. Morris Teubal & Terttu Luukkonen, 2006. "Venture Capital Industries and Policies: Some Cross-Country Comparisons," Discussion Papers 1006, The Research Institute of the Finnish Economy. [Downloadable!]
  5. Kari O. E. Alho, 2006. "Labour Market Institutions and the Effectiveness of Tax and Benefit Policies in Enchancing Employment: A General Equilibrium Analysis," Discussion Papers 1008, The Research Institute of the Finnish Economy. [Downloadable!]
  6. Jyrki Ali-Yrkkö, 2006. "Technology Sourcing Through Acquisitions – Do High Quality Patents Attract Acquires?," Discussion Papers 1025, The Research Institute of the Finnish Economy. [Downloadable!]
  7. Mari Maunula, 2006. "The Perceived Value-added of Venture Capital Investors. Evidence from Finnish Biotechnology Industry," Discussion Papers 1030, The Research Institute of the Finnish Economy. [Downloadable!]
  8. Jyrki Ali-Yrkkö & Mika Maliranta, 2006. "Impact of R&D on Productivity - Firm-level Evidence from Finland," Discussion Papers 1031, The Research Institute of the Finnish Economy. [Downloadable!]
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