In the Co-Innovation joint project, a university hospital, research institutes and companies work together to develop new knowledge and innovations that make it possible to build significant new business for the participating companies. The participants in the joint project have a common goal and need to carry out projects in collaboration, as well as a credible plan to achieve a common goal. The university hospitals create new knowledge and expertise together with the consortium to develop their processes, implement their own operations more efficiently and effectively, and develop the competitive advantage of the Finnish companies’ business in the long term.

What kind of consortium is needed for a Co-Innovation joint project?

• The minimum composition is 1 research organization, 1 university hospital and 3 corporate R&D projects, of which at least 2 are funded by Business Finland. One corporate project can be funded by the company itself. (In an international joint program, a consortium of 2 domestic companies is sufficient if foreign partners include companies.)​
  However, the minimum consortium is usually not sufficient to obtain funding in a competitive situation or to implement the goals of the joint project.​
• All parties to the joint project must have a clear role and added value in the consortium. ​
• The best partners are research organizations and companies that have the capabilities (expertise, technologies, etc.) needed to achieve the jointly defined goals and that themselves have a need and motivation for research and development work. ​
• More than one university hospital can also be involved in a joint project.​
• Business Finland generally only funds R&D projects of companies that aim to export. It is also worth paying attention to that partner companies have sufficient resources for research and development work and the cooperation within that framework.

Different possible roles of the university hospital in the Co-Innovation joint project

• A coordinator of a joint project, who builds a consortium of companies and research institutes around their project idea, and leads the joint project and the preparation and implementation of its joint plan; a university hospital usually also has its own research and development project.
• A participant in a joint project who has its own research and development sub-project for the development of its own statutory activities or economic activities.
• A subcontractor of services to a research institute or company.
• An in-kind partner which provides, for example, clinical expertise and testing environment to the joint project without charge

University hospitals are only funded in Co-Innovation joint projects, which also involve research organizations and companies with their own projects. The joint project must meet Business Finland's Co-Innovation funding criteria.

What kind of project can I get funding for?

• The university hospital's goal is to significantly improve its operations or make them more efficient through research and development, e.g. diagnostics of diseases, treatment and treatment methods, prevention, processes, data utilization, digital services, innovation activities, utilization of new technologies, management and organization.​
  Performance indicators, related e.g. to improved treatment outcomes or reduced treatment costs.
• The funding enables research and development activities from high-level research that meets scientific standards to development, testing and piloting. The work aims at results that can be utilized in the university hospital's own operations.
• Dissemination of the results more widely in Finnish healthcare increases the impact of the project.​
• The funding can be used for the salary costs of the university hospital’s own project staff for the purchase of services from research organizations or companies required for the project, for travel expenses, and for equipment and material costs. 

I​​s it possible to get funding to prepare for the commercialization of research and development work?

• ​​It is possible to include some preparation of commercialization paths in the project when potential income will be allocated to financing the public services of the university hospital, and the free utilization of the results in the public services is not jeopardized.
• The preparation of commercialization for the benefit of companies must be done outside the project, for example
• companies can pay compensation for it.
• The wellbeing services county can apply for research and development funding intended for companies to also develop their economic activities when the goal is export business. The funding can also be used to prepare a small-scale commercialization of the project results. In this case, the funding terms and conditions for companies’ research and development activities apply to wellbeing services counties, with Business Finland's funding being 40% grant or 50% loan.

Before applying for funding, discuss the planned project and the application with your wellbeing services county.

Business Finland experts - ecosystem managers and funding advisers - provide sparring assistance in preparing Co-Innovation joint projects. When the development idea and the parties of the joint project begin to take shape, it is worth contacting Business Finland. Be prepared to present the consortium and the joint project plan to the Business Finland contact person before submitting the funding application. Business Finland also comments on the R&D project plans before submitting the application. It is useful for participants in a Co-Innovation joint project to appoint a coordinator among themselves to lead the preparation and cooperation for the project.

Contact our expert: Outi Tuovila firstname.lastname (at) businessfinland.fi

Research organizations can receive Co-Creation funding from Business Finland for the preparation of Co-Innovation joint projects, but this research funding is not available for university hospitals. However, in Co-Creation preparatory projects, it is possible to collaborate between research organizations and university hospitals, and if necessary, the university can also purchase a service from the university hospital.

Learn about the financing terms and conditions for university hospitals' own operational development funding

(in Finnish)

Julkisten toimijoiden kehittämishankkeiden rahoitusehdot 

Learn about the evaluation criteria for Co-Innovation joint projects 

We will assess your Co-Innovation joint project as a whole and take into account other applications competing for funding. Important assessment criteria include:

• The impact of the Co-Innovation joint project's results on the companies' competitive advantage in international markets and the targeted export growth in relation to the necessary investments.
• Implementation of the joint project:
  • Are the parties to the joint project the right ones to achieve the results?
    How close and concrete is the cooperation in the joint project?
  • Is the division of work reasonable in terms of the desired results?
  • How will the project affect the development of the business of SMEs and midcap companies?
• The novelty value and competitive advantage of the solution, the impact on the renewal of business life, market potential, societal impact and the international cooperation of the project.

In university hospital projects, we assess how the new knowledge and expertise generated in the project and the development of processes affect the more efficient and effective implementation of the university hospital's tasks and the development of the Finnish companies’ competitive advantage in the long term.

In corporate projects, we assess how the project promotes the achievement of the company's growth goals and the creation of an international competitive advantage and exports. The company must have sufficient resources and self-financing to implement the project.

In research organization projects, we assess how public research creates a basis for new innovations and expertise and how the project results can be utilized for the needs of the business life. Product development work for companies cannot be carried out in a public research project. The results of the research project serve as the basis for the companies' own development projects.

Make sure there are no obstacles to obtaining funding

We cannot grant funding if, in addition to university hospitals, there are no companies and research organizations as applicants in the joint project.

Funding for the Co-Innovation joint project can be applied for continuously.

Completing and submitting a funding application

Applications for funding are made in Business Finland's online service. The coordinator uses the Co-Innovation main application form and all participants applying for funding use the Co-Innovation participant application form. Also read the instructions for completing applications.

1. The coordinator makes a main application, to which a joint project plan is attached
2. The participants in the joint project make their own applications and project plans
3. The coordinator sends all the applications to Business Finland

The project plan is a key annex to the application.

The Co-Innovation project must have a joint project plan, which can be up to 20 pages long. Read more detailed instructions on how to apply for Co-innovation funding.

In addition, companies and university hospitals must have their own detailed project plans. Here you can find a project plan template and instructions for filling it out.

Acceptable cost types in research and development projects include:

• salaries
• indirect personnel costs 50%
• overhead costs 20%
• travel costs
• material and supplies costs
• equipment purchases
• equipment depreciation
• equipment rentals
• purchased services

University hospitals receive funding in Co-Innovation joint projects, which also include research organizations and companies. The goal of the university hospital in the co-innovation project is to significantly enhance or improve its operations through research and development, for example, in disease diagnostics and treatment, prevention, processes, data utilization, digital services, innovation activities, new technology adoption, management, and organization. The involved companies aim to develop their expertise and products/services, while research organizations conduct high-level public research. Each participant (university, hospital, company) has its own sub-project and objectives, but the consortium also shares common goals and a joint project plan, with significant collaboration in research and development.

The utilization of jointly created results should be agreed upon in a mutual co-operation agreement, considering each participant’s contributions. A university hospital can implement innovations developed in its own project, while companies can commercialize solutions, such as technologies researched and developed in their R&D projects in collaboration with the university hospital, in accordance with agreed-upon terms for joint results. Any economic exploitation of public research or university hospital R&D project results outside of such agreements must be compensated at market value unless the results are openly available for all.

Funding for university hospitals in joint projects is intended for the development of the public entities' own operations (so-called JUKE funding). Research funding is only available to research organizations conducting independent public research and widely disseminating it to companies and society. University hospitals are not considered research organizations in Business Finland's customer classification.

The new Co-Innovation funding allows university hospitals to engage in broader research and development activities, from high-level scientific research to development, testing, and piloting. However, the objective of the university hospital’s sub-project is not independent research but improving the efficiency and quality of university hospital operations while working together with the consortium to reach the joint goals. Disseminating results more broadly within Finnish healthcare increases project impact and is encouraged.

A joint project involving a university hospital must have at least:

• 1 research organization, 1 university hospital, and 3 company R&D projects, at least 2 of them receiving Business Finland funding. One company project can be self-financed but must be part of the joint project.
• If participating in an international co-program, 2 domestic companies suffice if foreign partners include companies.
• Note: The minimum consortium is often not competitive enough to receive funding (not enough to demonstrate sufficient resources for achieving co-innovation project objective)

In a joint Co-Innovation project involving a university hospital, at least one research organization must also be involved. The funding format follows Business Finland’s established Co-Innovation model, and the joint project must meet its requirements.

A Co-Innovation joint project must include at least one research organization in addition to university hospitals and companies. A university hospital is not considered a research organization, but it can research how various solutions improve its operations, such as shortening surgery queues, and what process and other changes are needed.

Alternatively, the pilot can be part of a company’s R&D project, with costs covered if the company is still developing its product or validating a near-commercial solution in a real-world setting. Business Finland can share R&D risk through loan for such near-market product pilots.

A third option is for companies to provide their product for research use free of charge within a joint project, gaining research-based insights into its functionality in a university hospital environment. However, this must be part of open public research, not research exclusively for the company.

Business Finland’s level of funding for the Co-Innovation research project is 80 % for university hospitals and research organisations. For companies, funding includes 40-50% grants or 50% loans, depending on company size and the project.

Project sizes vary. Typically:

• A joint project has a total budget in the millions of euros.
• Individual R&D and research projects range in the hundreds of thousands to even more.

The public sector’s (research organizations + university hospitals) share of total project costs must be ≤ 60%, while at least 40% must come from company R&D projects.

A service provider can charge full costs to the university hospital, company, or research organization purchasing the service as part of its R&D project. The buyer can receive Business Finland funding at the same percentage (40-80%) as its overall project.

No. The funding is exclusively for university hospital efficiency improvements and collaboration with companies and research organizations. Wellbeing services counties cannot use it for R&D in other hospitals or social services.

The Finnish government decided in its 2024 budget session that Business Finland’s R&D funding can support university hospital R&D in joint projects, provided the work enhances hospital efficiency and benefits industry. Typically, public sector R&D is funded through budget allocations and sectoral ministries.

All partners must have a clear role and added value in the consortium. Ideal participants include research organizations and companies with the capabilities (expertise, technology, etc.) needed to achieve project goals and improve university hospital operations.

Business Finland primarily funds companies targeting export markets. Partners should have sufficient R&D and collaboration resources, which is why early-stage startups rarely participate, whereas SMEs and large companies are common. The joint project significantly promotes the international competitiveness of the companies involved and the renewal of the large companies involved in the consortium. In practice, best business partners already have some expertise in export or international business.

The funding supports university hospitals’ own operational development. The eligible expenses include:

• Salaries of hospital staff conducting the R&D.
• Purchased services from research organizations or companies.
• Travel costs
• Material costs arising from equipment and materials needed for the implementation of the project.

As a rule, the research projects to be funded are required to be closely engaged in international co-operation, it is not mandatory for the projects of university hospitals

The funding aims to improve university hospital operations, but some commercialization pathway planning can be included.

• ​​It is possible to include some preparation of commercialization paths in the project when potential income will be allocated to financing the public services of the university hospital, and the free utilization of the results in the public services is not jeopardized.
• The preparation of commercialization for the benefit of companies must be done outside the project, for example companies can pay compensation for it.
• The wellbeing services county can apply for research and development funding intended for companies to also develop their economic activities when the goal is export business. The funding can also be used to prepare a small-scale commercialization of the project results. In this case, the funding terms and conditions for companies’ research and development activities apply to wellbeing services counties, with Business Finland's funding being 40% grant or 50% loan.
• University hospitals cannot apply for R2B (Research to Business) funding, which is only available to research organizations (e.g., universities).

Funding is applied for through Business Finland's online services. Each participant in the joint project submits their own application, which includes a joint project code obtained from the project's coordinator. Once the applications are ready or the set deadline for their completion has passed, the coordinator sends the complete set of applications to Business Finland for processing.

An important attachment to the application is a plan that concretely describes the project's objectives, implementation, anticipated results, implementation team, and resourcing. In joint projects, a common project plan for the whole consortium must also be made, which is carried out by the research organization or another coordinator of the joint project. It outlines the research, the roles of the different parties, the implementation of the joint project, and related collaboration, networking, and broader utilization of research results. University hospitals are also encouraged to disseminate good practices developed in their own projects more widely within Finnish healthcare. 

Please check “Apply for Funding” from this page: Funding for university hospitals - Business Finland

The university hospital can have various roles in joint projects. It can be the coordinator of the joint project, building a consortium around its project idea that includes companies and research organizations, and leading the joint project and the creation and implementation of its common plan.

The coordinator of the joint project can also be a research organization or a company, and in this case, the university hospital may be a participant with its own research and development subproject for the development of its own statutory activities or economic activities.

It is also possible for the university hospital to participate in a joint project without its own project funding from Business Finland, for example, by providing subcontracting services to a research organization or a company, or by offering its clinical expertise and testing environment to the joint project without charge.

Business Finland's experts, including ecosystem managers and financing experts, provide sparring assistance for the preparation of joint projects. Once the development idea and parties of the joint project start to take shape, it is advisable to contact Business Finland, which will assign a sparring team to the project.

Research organizations can receive Co-Creation funding from Business Finland to prepare for joint projects, but this type of research funding is not available for university hospitals. However, cooperation between research organizations and university hospitals is possible within Co-Creation preparatory projects, and if needed, a university can also purchase services from a university hospital.

Generally, processing a Co-Creation preparation project application does not take long. A decision can be received in less than a month if the application and the project plan are well-prepared, and they do not require much modification during the processing phase. It is also advisable to request comments from Business Finland experts on the Co-Creation plan before submitting the application for official processing. Processing applications for Co-Innovation joint projects takes much longer, lasting several months. The processing time is particularly influenced by how much additional information is needed for the applications and project plans. The more complete the applications and plans are, the faster the processing will be.

Business Finland’s Health 360 program brings together and cross-pollinates representatives from companies, university hospitals, and research organizations. This year, among other things, the program will organize two workshops to support the preparation of Co-Innovation joint projects. The first workshop was on Tuesday, February 4, 2025, and more information can be found on the program's page at https://www.businessfinland.fi/suomalaisille-asiakkaille/palvelut/ohjelmat/health-360-ohjelma.