Lapland Startup Incubator and Ecosystem JTF project
Startups typically refer to young, highly growth-oriented companies with a mission to develop and introduce new, innovative products or services to the market. Startups have the potential to become significant drivers of innovation, job creation, and economic growth.
In recent years, Finland has witnessed the emergence of notable startup companies, and the country has attracted substantial investment for startups. However, there has been limited startup activity in Lapland. The need to support growth-oriented and internationally focused companies has been emphasized in various regional development policies.
Startup companies strive for substantial growth. This necessitates the availability of support services, expertise, and funding in the area where they originate. The current project aims to address this need by establishing a multidisciplinary startup incubator in Rovaniemi and Kemi-Tornio, as well as by initiating the development of a regional startup ecosystem. The project targets HEi's, vocational schools, municipalities and their development companies as well as SME's. Indirect target groups are individuals and teams from Lapland who are planning innovative and growth-oriented business ventures, but have yet to establish a company. The aim is to reach especially students of the project partner educational institutions.
Startup incubators are designed to provide support to aspiring entrepreneurs in areas such as refining their business models, evaluating idea feasibility, securing funding, and fostering entrepreneurial skills. The startup incubator to be established in Rovaniemi and Kemi-Tornio, with activities online also, will cater to individuals and teams planning startup activities. The incubator will have a multidisciplinary approach, with a focus on green transition and digitalization.
A startup ecosystem is a regional collaborative network that facilitates the creation and development of startups. At its core are entrepreneurs and innovators interested in entrepreneurship, as well as established startup companies. The ecosystem also encompasses other companies, universities, educational and research institutions, business support and development services, financiers, investors, and regional decision-makers. A vibrant startup ecosystem thrives on mutual cooperation, openness, trust, knowledge sharing, and viewing failure as an opportunity for starting again. Within such an ecosystem, expertise, support, mentoring, and funding are readily available to foster the growth of startups.
The startup ecosystem to be launched in the Rovaniemi and Kemi-Tornio region will be collaboratively designed with stakeholders to ensure that the collaboration and networking of individuals from diverse backgrounds and industries create added value for both aspiring entrepreneurs and existing companies in the area.
Startup entrepreneurship in Lapland faces challenges due to the region's geographical vastness, numerous small businesses, and relatively small population. The startup culture in the region is nascent, and private capital funding is limited. Recognizing these challenges and opportunities, the project begins with a thorough analysis of needs and the operating environment, along with benchmarking startup activities in comparable regions. Based on these findings, a preliminary concept for the incubator and ecosystem operations is developed. The concept serves as the foundation for joint development with target groups and stakeholders, resulting in the establishment of the incubator and ecosystem. Ecosystem collaboration and incubator operations will be refined through piloting with stakeholders. Efforts will also be made to raise awareness of the incubator and ecosystem through the project.
One of the objectives of the project is also to attract private capital and investors to the region, fostering an environment where startups can access the necessary funding for their growth. Additionally, a pre-seed fund will be initiated to support students aspiring to become startup entrepreneurs.
Building a startup culture and ecosystem is a long-term endeavour. The project's goal is to establish a solid foundation for the development of Lapland's startup culture. Therefore, the project emphasizes the sustainability of the startup ecosystem and incubator operations, aiming for them to continue operations without relying on external funding.
As a result of the project, the conditions for startup entrepreneurship in Lapland will improve. In the long run, the project supports the renewal and vitality of business activities in Lapland, leveraging the region's strengths and unique characteristics. The project enhances Lapland's appeal and retention of skilled workers by creating an environment conducive to entrepreneurship and fostering a robust startup ecosystem. It also helps attract individuals, companies, and investors interested in entrepreneurship to the region. The project strengthens Lapland's culture of innovation and entrepreneurship, harnessing the growth opportunities offered by the northern environment, arctic business, and the ongoing twin transition.
Project duration
1.2.2024–28.02.2026
Project partners
Lapland University of Applied Sciences (Project leader), University of Lapland, Lapland Education Centre REDU, City of Rovaniemi and Kemin Digipolis Oy
Budget and funding
The total budget of the project is €747 585. The project is funded by the Just Transition Fund (JTF) / the Regional Council of Lapland. Granted EU and state funding is €598 068.
The University of Lapland's share of the total budget is €190 373, granted EU and state funding €152 298 and self-financing €38 075.