Study finds most Finnish defence spending flows abroad, limiting domestic job growth
A Teollisuusliitto analysis shows that only about a quarter of defence procurement money stays in Finland, with the majority exiting the country and having modest effects on local employment.
Teollisuusliitto released a study on defence spending, employment and procurement, authored by its expert Matti Roitto. Using public records, academic literature and a survey of union leaders, the report found that only about a quarter of the money allocated to defence acquisitions remains in Finland, with the rest flowing to foreign partners via licences and technology transfers. Although the sector’s turnover and profitability have improved, the increase in stable jobs has been modest, with most new positions tied to specific projects rather than lasting employment.
The analysis noted that Patria, the core Finnish defence contractor, often outsources series production abroad while retaining design and integration work domestically. Comparisons with other European nations were mentioned, but the study emphasized that Finland’s current industrial policy limits the broader economic impact of rising defence budgets.
