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The index compiled by the innovation foundation measures how well Europe's cities support digital entrepreneurship in early stage startups and scaleups.

Scoring highly on nearly every dimension of the index, Helsinki is ranked 4th best city for digital businesses, right after London, Stockholm and Amsterdam. Nesta mentions that especially Aalto University and VTT Technical Research Centre of Finland have a major influence on the area. “Aalto University and the VTT – two large, multidisciplinary research institutions – both play important roles in connecting the deep technical base with design and business skills.”

Other factors include the presence of electronics giant Nokia, which exerted significant influence for many years and helped in establishing a strong ICT and software talent pool in the region. Furthermore, there is a strong state support for innovation in Finland.

The index notes that Helsinki-based companies excel on a regular basis in listings of the most innovative startups in the world. There are around 90 game development companies in Helsinki area and it is home to some of the world’s leading gaming companies such as Supercell and Rovio. Other significant startup sectors include, for example, software and digital services, health tech, as well as environmental and energy technologies and services.

Today, Helsinki region is a home for over 500 tech startups and numerous incubators and accelerator programs.

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