STRAIND Research Project Strengthens Finland’s Regional Industrial Policy – Responds to Challenges in a Volatile Operational Environment

Today, Finland’s economic growth and competitiveness are influenced by a range of factors increasing uncertainty, such as an unstable economic and security environment, rapid technological development, and challenges brought by climate change. As a small and open economy, Finland requires new tools to navigate and succeed in this environment.

Funded by Business Finland, the project STRAIND – Bridging Strategic Spatial Policies and Returning Industrial Policies for Innovation and Growth explores the return of industrial policy through the lens of strategic spatial policy studies. The collaboration between the University of Vaasa and the University of Turku draws on their strong expertise in regional innovation policy and strategic foresight.

Regions Play a Key Role in the New Industrial Policy

Finland’s national competitiveness is built on regional ecosystems that combine export-promoting capabilities with research and development activities. Renewable energy is a central part of the new industrial policy, and its successful implementation requires regional commitment. It is also important to recognize regional strengths and consider which initiatives are more effective when pursued collaboratively. The project examines international, national, and regional approaches to identify best practices and challenges.

– The return of industrial policy stems from a changing geopolitical and economic environment, which calls for new regional solutions and a broader set of tools for innovation and growth policy. This is what we aim to develop in the STRAIND project, says STRAIND-researcher, Assistant Professor Antti Mäenpää.

Place-Based Industrial Policy Addresses Diverse Regional Needs

The STRAIND project develops models that support local strengths and assets and respond to transnational changes in the operational environment. The focus is on regions’ place-based innovation potential and foresight, which are key to building sustainable and resilient industry.

– Reforming industrial policy requires a comprehensive understanding of place-based innovation and resilience, and the spatiality of threats and opportunities. STRAIND addresses this by examining innovation and industrial policy from the perspective of strategic regional development, says project PI, Associate Professor Helka Kalliomäki.

Research Strengthens the Strategic Foundation of Industrial Policy

The project utilizes internationally recognized foresight methods and adapts them to support Finnish policy work. The Finland Futures Research Centre at the University of Turku contributes leading expertise in regional foresight through Research Director Jari Kaivo-oja and Adjunct Professor Yrjö Myllylä. The multidisciplinary and cross-disciplinary research also brings together international expertise to develop strategic industrial policy and strengthen the necessary capabilities in Finland. The novelty of the project lies in clarifying the regional connection of next-generation industrial policy, which is pursued through, for instance, systems mapping of the operational environment.

– Together with international and national project partners, we are developing new research-based solutions. The selected methods enhance understanding of the complex operational environment and promote the planning and implementation of impactful industrial policy, says Project Manager, Project Researcher Johanna Kalliokoski.

The project began in October 2025 and will continue until September 2027.