Tekes could spend its funding more efficiently, says economics body

Tekes, the Finnish innovation agency, might not be spending its funding as efficiently as it could, according to a policy brief by the Finnish Government Institute for Economic Research (VATT).

The report, published by VATT researcher Elias Einiö, states that research funding can have a significant impact if it is appropriately allocated. However, the way Tekes administrates its funding leaves room for improvement, Einiö says.

Current government instructions advise Tekes to fund commercially promising firms in order secure the government’s target on how much revenue is gained on each euro spent, according to the report. But firms would undertake these lucrative and innovative projects even without extra funding as these projects are the most profitable, the report states.