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


  • Luukkonen, Terttu


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.

Suggested Citation

  • Luukkonen, Terttu, 2006. "Venture Capital Industry in Finland - Country Report for the Venture Fun Project," Discussion Papers 1003, The Research Institute of the Finnish Economy.
  • Handle: RePEc:rif:dpaper:1003

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    References listed on IDEAS

    1. Luukkonen, Terttu, 2005. "Variability in organisational forms of biotechnology firms," Research Policy, Elsevier, vol. 34(4), pages 555-570, May.
    2. Palmberg, Christopher & Ylä-Anttila, Pekka, 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.
    3. Ali-Yrkkö, Jyrki & Hermans, Raine, 2002. "Nokia in the Finnish Innovation System," Discussion Papers 811, The Research Institute of the Finnish Economy.
    4. Hermans, Raine & Luukkonen, Terttu, 2002. "Findings of the ETLA Survey on Finnish Biotechnology Firms," Discussion Papers 819, The Research Institute of the Finnish Economy.
    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.
    6. Hyytinen, Ari & Pajarinen, Mika, 2001. "Financial Systems and Venture Capital in Nordic Countries: A comparative Study," Discussion Papers 774, The Research Institute of the Finnish Economy.
    7. John Armour & Douglas Cumming, 2004. "The Legal Road To Replicating Silicon Valley," Working Papers wp281, Centre for Business Research, University of Cambridge.
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    Cited by:

    1. Maunula, Mari, 2006. "The Perceived Value-added of Venture Capital Investors. Evidence from Finnish Biotechnology Industry," Discussion Papers 1030, The Research Institute of the Finnish Economy.
    2. Petrus Kautto, 2009. "Nokia as an Environmental Policy Actor: Evolution of Collaborative Corporate Political Activity in a Multinational Company," Journal of Common Market Studies, Wiley Blackwell, vol. 47, pages 103-125, January.
    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.

    More about this item


    venture capital; start-ups; venture capital -directed policy; innovation policy;

    JEL classification:

    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance
    • O38 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Government Policy

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