The foundations of our finances

The University of Lapland is a financially independent public institution. Our funding is based on three main categories: core funding granted by the state, complementary funding applied for from external funding sources and investment returns.

The Ministry of Education and Culture allocates the core funding of the state to Finnish universities with an imputed funding model. Among other things, the model covers the effectiveness of education and research of universities, as well as development measures in, for example, national missions and structural development as agreed on in performance agreements.

True to its name, complementary funding complements the core funding, and it is mainly formed of project funding. Our university conducts research and increases it regional, national and international impact through these projects. With the returns from our investments, we create financial stability for our operations and make strategic initiatives.

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Finances in 2025

The finances of the University of Lapland were strengthened with the financial statements for 2025.

Key highlights of the 2025 economy:

• The operating result (difference between operating revenue and expenses) was €1.0 million. and the profit for the financial year was €4.2 million.
• Although government funding decreased, turnover increased by 3.1% compared to the previous year. Turnover totalled €68.8 million.
• Operating income and Complementary funding grew better than estimated.
• Personnel expenses totalled €47.7 million, which is 70.3% of all operating expenses.
• The increase in all operating expenses compared to the previous year was 4.1%, which can be considered reasonable, taking into account e.g. wage increases and increased project activities. Operating expenses in 2025 totalled € 67.8 million.
• The investment market levelled off after strong fluctuations in April 2025. The value of the University’s investments in the financial statements was €47.9 million.
  

Economic indicators

Complementary funding

Our university conducts research and development projects that receive funding from multiple sources. In 2025 the most significant funding sources were the Research Council of Finland (26%), the Structural Funds (25%), other foreign sources (23%) and ministries (19%). Our goal is to increase the share of international research funding in the full volume of research funding.

Investments

We received the initial capital for investing through the state capitalisation in 2010 in connection with the changes in the Universities Act. We also allocate surpluses of previous financial periods and fund-raising returns to investments. From 2025 onwards, the investments and their allocation are guided by the shared investment strategy of the University of Lapland and the Lapland University of Applied Sciences Ltd. In 2025, the investment assets of our core investment activities were worth €47.9 million. The goals of the investments of the University of Lapland are to offer a stable and predictable stream of revenue for funding the university operations, as well as to preserve and increase the real value of the capital in the long-term. Our real revenue goal is 3–6 % in the long-term.