Finland - Country Commercial Guide
Digital Economy
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Overview

Finland has developed a National Strategic Roadmap aimed at advancing digitalization, aligned with the European Union’s Digital Decade Program, which is scheduled for completion by 2030. The roadmap outlines key objectives encompassing competencies, digital infrastructure, business development, and public services. It provides an assessment of the current state of digitalization in Finland and establishes goals and strategies to support the EU’s overarching digitalization targets. Notably, Finland has either achieved or is nearing the fulfillment of numerous Digital Decade objectives ahead of the 2030 deadline. The country has set more comprehensive and ambitious goals compared to its EU counterparts concerning the evolution of digitalization, the data economy, public service delivery and cybersecurity.

The strategic priorities include the adoption of cloud computing, advancements in artificial intelligence, and the utilization of data analytics and big data. Additionally, Finland is focused on developing quantum computing capabilities, fostering innovations in connectivity—such as the rollout of 6G technology—and increasing research, development, and innovation (RDI) expenditures. The enhancement of semiconductor production and quantum computing technologies is of paramount importance within this strategic framework.

Details on Finland’s progress toward achieving its digital economy objectives can be found in the EC’s country report on the Finland 2024 Digital Decade Country Report.

Most laws are set at the EU level. The Digital Economy Chapter of our Country Commercial Guide for the European Union provides a more comprehensive overview.

Market Challenges

Regulatory Environment

  • Data privacy: More information under the Finnish Office of the Data Protection Ombudsman
  • AI regulation: Finland applies the EU’s new AI Act, which came into force on August 1, 2024 
  • Cross border data flows: As a member of the EU Finland follows the EU regulations. In the Cross-Border Data Policy Index Finland is at Level 2, Restrictive: Decreasing Cross-Border Digital Openness Impedes the Potential of Cross-Border Data to Support Economic and Other Policy Objective Cross-Border Data Policy Index
  • Cybersecurity: Finland follows the EU’s Cyber Resilience Act (CRA) and Cyber Security Act, 
  • Online harms regulation: Finland follows the EU’s Digital Services Act as of February 17, 2024 and it supervised mainly by the Finnish Transport and Communications Agency Traficom. It has obligations for internet platforms and other digital services to reduce illegal content and increase transparency. 

Standards Development 

Finland applies EU directives and standards. The Finnish Standards Association, SFS is the central standardization organization that controls and coordinates national standardization work in Finland. The EU has a Rolling Plan, which is updated annually and attempts to list, in a non-prioritized manner, all known areas where ICT standardization could support EU policy and regulatory objectives.

More information is available on overarching EU digital issues on CSEU Country Commercial Guide as the EU enacted numerous pieces of legislation governing the digital economy.

Subnational Market Regulation 

In Finland, supplementary national regulation related to the EU’s Digital Markets Act has been issued. The Finnish Competition and Consumer Authority entered an amendment of the ACT on May 15, 2024.

Public Sector Procurement

Finnish public procurement operates under national procurement legislation that is aligned with European Community directives on public procurement. Since 2020, Finland’s National Public Procurement Strategy has emphasized ecological responsibility across all levels of government procurement activities. This strategy defines specific indicators and includes an actionable plan with concrete measures to enhance sustainability. The national procurement legislation outlines competitive tendering rules for central government contracting. These regulations are designed to ensure transparent competition, promote equal and non-discriminatory treatment of bidders, and facilitate the efficient use of public funds.

Digital Trade Barriers

Data localization: There are no general data localization requirements in Finland with respect to personal data, i.e. requirements that the personal data of data subjects would need to remain or be stored in Finland or a specific territory or region. However, Finland follows general data protection laws under the General Data Protection Regulation (EU). The Data Protection Act has applied since Jan. 1, 2019.  (Law in Finland - DLA Piper Global Data Protection Laws of the World, Key Data Privacy and Cybersecurity Laws | Finland | Global Data Privacy and Cybersecurity Handbook | Baker McKenzie Resource Hub.

Technology Barriers

There are no technology barriers in Finland but Finland needs to keep pace with gigabit networks deployment across its territory and in the area of e-government, where there is a need to improve on e-health and to ensure that access to other digital public services remains at the highest possible level.

Barriers to Internet Services

The availability of fixed network connection technologies in Finland is slightly lower than the average of EU countries (82.7 % compared with EU’s 97.7 %). The availability of mobile network technologies is as good or better than the average in EU countries (98.3 % compared with EU’s 89.3 %). In particular, 3.4-3.8 GHz 5G availability is clearly better than the average of EU countries. Digital Decade 2024: Broadband Coverage in Europe 2023 | Shaping Europe’s digital future

Third Country Bias/Influence

There is no third country influence in Finland. Finland strictly follows EU regulations. 

Digital Trade Opportunities

Communications and Networking Technologies

Finland is a great launchpad to take 5G – and 6G – solutions global. Enabled by the strong network infrastructure and an innovative prospective partner pool, Finland has numerous 5G testbeds available for commercial use ranging from fully isolated 5G infrastructures to actual real-life test ranges.  Finland is currently one of the few markets where all the 5G bands; low, mid, and high frequency; are available for use. This means Finland has the same millimeter wave (mmWave) capabilities as the United States, but 5G solutions also have access to the other spectrums currently unavailable in the United States, which allows full exploration of the possibilities of 5G-enabled products. Even 6G solutions can already be prototyped in Finland. In June 2023, Finland and the United States signed a Joint Statement on Cooperation in Advanced Wireless Communications confirming their common ambition to cooperate in key areas of 6G research and development and to increase interaction between Finnish and U.S. actors. Other opportunities for U.S. companies 5G Test Network Finland, 6G Flagship Project Hexa-X-II.

Artificial Intelligence

Finland offers a wealth of opportunities in the use of AI and serves as an excellent platform for pilot projects due to its limited and single market, net neutrality, abundant technology resources, and legislative support. Finland has unique data repositories, which makes it an attractive operating environment for companies and researchers (source: CCG 2023).  

Other

Quantum Computing

Finnish quantum and hybrid computing infrastructure offers an attractive basis for quantum computing research and development in Finland. Finland is among the European countries investing the most in quantum. In 2022, the United States and Finland signed a Joint Statement on Cooperation in Quantum Information Science and Technology in which the two parties intend to cooperate and promote QIST in its different forms. On the state level, Finland has signed agreements with Colorado and Texas to promote the advancement of quantum technology.

NATO’s Defense Innovation Accelerator for North Atlantic (DIANA) recently approved Finland establishing an accelerator for start-ups and small and medium-sized enterprises focused on next-generation communications and quantum technologies. In addition, two test centers will be established: one in Oulu on 6G networks and another one in Otaniemi, Espoo, specializing in quantum technologies. Finland is home to the most powerful supercomputer in Europe, LUMI, which serves as a critical enabler for practical applications of quantum computing. Finland in the Race for Quantum Advantage - Sitra

Sub-Sea Cables

There is already a subsea cable that links Finland with Germany through an Equinix data center. Finnish company Cinia has plans for the world’s first trans-Arctic subsea cable system. The Far North Fiber project is on track to link the Nordic countries with Japan by 2027. The new cable will follow a direct route through the Arctic Circle, bypassing North America. (Source: What’s Driving the Digital Economy in the Nordic Countries? - Interconnections - The Equinix Blog)

Specific Industry Sub-Sectors

Financial Technologies

With high mobile banking usage, new deposit methods, payment services, digital wallets, and loans, financial technology solutions are increasingly in demand.

Cybersecurity

Finland is revising its Cybersecurity Strategy from 2019. The new strategy will be in force latest on October 18, 2024. There is a demand for: Zero Trust, securing services for digital identity use, security hybrid work, applying NIS2 directive, cloud services (SaaS, IaaS, PaaS), use of AI, and detecting phishing attacks.

Internet of Things (IoT) and Smart Cities

Finland has had a strong focus on Smart Cities for years. The new National Climate Act outlines stringent emission targets with the aim of Finland being carbon neutral in 2035. There is a high demand for innovations in smart infrastructure, renewable energy sources, efficient waste management, green spaces, and digital governance systems.

Digital Economy-Related Trade Events