International R&D cooperation provided an accelerator for textile fibre innovation
There is a growing global demand for ways to make the textile industry more sustainable. Finland has solutions but lacks a large enough international textile industry to test, pilot and scale up the solutions developed. So, we need to look to strategic partner countries – such as Türkiye.
“Finland's solutions for a green transition in the textile industry are based on the circular and bioeconomy and digitalization. It is typical that new innovations originate from outside the industry”, explains Ecosystem Lead Marika Ollaranta from Business Finland. She led the Decarbonizing industries export campaign funded by the EU’s Recovery and Resilience Facility (RRF), which helped Finnish companies to reach new markets.
Making the most of partnerships
The companies participating in the Decarbonizing industries campaign chose Türkiye as one of the target countries because it produces significant brands for the European market (including H&M, Nike, Puma, Boss) and it is located in Europe.
We were able to provide good direct contacts with local companies, and we conducted advocacy work with both textile brands and production facilities.
“We were able to provide good direct contacts with local companies, and we have also conducted advocacy work with both textile brands and production facilities”, says Ollaranta. According to Ollaranta, Turkish partners enthusiastically embraced Finnish innovations.
As a follow-up to the export campaign, Business Finland organized a funding call for research and development projects to deepen the collaboration.
The call for proposals sought to fund joint Finnish-Turkish research and development projects in the sustainable textiles and the automotive industry. A total of six joint projects involving Finnish and Turkish partners were funded. Business Finland is funding the Finnish partners and the Turkish funding agency TÜBITAK the Turkish partners.
Speeding up scaling of technology solutions
The Finnish company Nordic Bioproducts Group was successful in obtaining funding for two of its research and development projects from this call. The goal is to explore the possibility of utilizing non-wood-based waste from agricultural by-products for use in the textile industry as regenerated fiber.
The positive funding decisions were influenced by the fact that the company has an innovative novel solution based on a strong research background and the company showed the courage to negotiate with textile companies much larger than itself.
The positive funding decisions were influenced by the fact that the company has an innovative novel solution based on a strong research background, which has progressed through the R&D and piloting phases to a first commercial production facility in Lappeenranta. The company also showed the courage and readiness to negotiate credibly with textile companies much larger than itself for conquering the European sustainable textile market.
“Our company's vision is to become the world's leading producer of bio-based material innovations and technology solutions. By combining our exceptional cellulose product development expertise with the world's leading textile companies, we accelerate the launch of new textile fiber innovations into the market”, says CEO and founder Olli Kähkönen of Nordic Bioproducts Group regarding the company’s goals.
Additional funding and partnership cooperation accelerate technological development and scaling. Also, through the project, our company will be able to incorporate a new raw material into our product portfolio.
“Additional funding and partnership cooperation accelerate technological development and scaling. Also, through the project, our company will be able to incorporate a new raw material into our product portfolio. From our joint project partners, Kipas is Türkiye's and Europe's largest manufacturer of yarns and textiles. The other project partner, Kara Holding, manufactures Lyocell fibers for use in the textile and hygiene industries in Türkiye”, Kähkönen explains.
He also encourages other small businesses to look beyond Finland's borders:
“We encourage other companies to boldly seek funding for innovations and to pursue international partnership projects, because small companies’ resources are always limited. Additionally, combining the expertise of different companies enhances the development and faster market launch of new innovations.”
Learn about Internationalization funding
Photos: Nordic Bioproducts Group