Oulu: From Mobile Manufacturer to Deeptech Hub

Oulu, a city in northern Finland, has transformed in recent years from its dependence on Nokia, the once-dominant mobile manufacturer, into a hub for deeptech startups. Following the massive layoffs during the Nokia crisis, which cost thousands of jobs, the city has reinvented itself and now employs more IT specialists than ever before. The transformation began in the early 2010s when the city started investing in education and infrastructure. Universities and polytechnic schools in Oulu have adjusted their programs to meet the demand for skilled professionals in the technology sector. These educational initiatives have contributed to Oulu now having one of the highest densities of IT graduates in Finland.

Another key factor in the change was the establishment of innovation centers and incubators that support startups. These facilities provide not only financial support but also mentoring and access to networks. The city has managed to create an ecosystem that attracts and nurtures young companies. The local government has actively taken measures to facilitate business creation, including tax incentives and the provision of office space at favorable conditions.

This policy has led to Oulu being regarded as one of the best locations for startups in Europe. The diversification of the economy has also made Oulu less vulnerable to economic fluctuations. While dependence on a single company like Nokia in the past led to massive job losses, the current variety of companies provides a more stable economic foundation. Currently, over 1,500 IT companies are based in the region. The city has also established itself as a center for research and development.

Cooperations between universities and industry have led to innovative projects in areas such as artificial intelligence, the Internet of Things, and 5G technology. These developments attract not only local talent but also international professionals. Oulu has also positioned itself as a pioneer in the development of sustainable technologies. Initiatives to promote green energy and environmentally friendly solutions are part of the city’s strategy. The city plans to reduce its CO2 emissions by 50% by 2030.

The successes of Oulu could serve as a model for other regions facing similar challenges due to the decline of traditional industries. German automotive locations could learn from Oulu's experiences, particularly regarding the promotion of innovation and the creation of a supportive environment for startups. The city has demonstrated that a proactive approach to education and business promotion is crucial for economic success. Oulu's positive development is also evidenced by the increasing number of investments in the region.

In 2025, over 100 million euros were invested in local startups, underscoring the city’s attractiveness to investors. These investments are an indicator of confidence in the future development of the region. Oulu's success story exemplifies how a city can break free from a one-sided economic structure and transform into a dynamic center for technology and innovation. The city has established itself as a place where new ideas and technologies can thrive, making it an important player in the European tech scene.