Finnish economist Mika Maliranta optimistic about young startups driving future growth

Prominent Finnish economist Mika Maliranta believes that the country’s young companies are poised to drive future economic growth. As the head of the Labour Institute for Economic Research and a professor of economics at the University of Jyväskylä, Maliranta expresses an exceptionally optimistic view of Finland’s economic outlook over the next decade, projecting strong growth. He has compiled his research-based insights into a book published recently.

Maliranta notes that many promising startups have emerged since the decline of Nokia and the closure of paper mills during the early 2010s. Some of these startups have matured into medium-sized enterprises, and if growth continues, they could become significant players in the future. Notably, a list of promising growth companies has been compiled with input from major venture capitalists in Finland, including Risto Murto of Varma, Timo Ahopelto of Life Ventures, and Ilkka Kivimäki of Maki.vc.

While Maliranta emphasizes the potential of these young companies, he highlights that Finland’s economy cannot rely solely on them for rejuvenation; growth must also occur within established companies. He believes the influx of innovative startups will contribute additional growth to the economy.

Despite Maliranta’s optimism, some experts urge caution. Vesa Vihriälä from the University of Helsinki points out that while new creative companies have great potential, Finland faces challenges, such as a lack of funding that can hinder their growth. There is also a concern that promising startups may be sold to foreign owners too early, potentially preventing them from benefiting the Finnish economy.

Maliranta remains hopeful, suggesting that Finland could mirror Sweden’s past economic transformation if current growth patterns continue.