In the early 1990s Finland fell into a deep economic depression. Turku had already lost its big shipbuilding company in 1989. During the same decade, though, Finland voted to join the European Union, and in Turku old textile factories were turned into buildings for technology and biotech companies.
The crash
- Turku was hit first. Turku’s shipyard crisis came before the general depression. Wärtsilä Marine went bankrupt in October 1989 (stop 45), and the restarted yard was sold to the Norwegian company Kværner in 1990 Well documented.
- The depression. In the depression of 1991–1993 Finland’s total output fell by 13%. Many companies went bankrupt Well documented.
- Why it happened. In the 1980s it had become easy to borrow money, and prices of homes and shares rose fast. Then the Soviet Union, which had bought 15–20% of Finland’s exports and imports, collapsed, and that trade disappeared almost overnight Well documented.
- Banks and money. Many banks got into trouble, and in 1991 the state promised to guarantee their debts. Finland devalued its currency, the markka, in November 1991 and again in 1992 Well documented.
Out of work
- Almost one in five. Unemployment in Finland rose from about 3.5% to 18.9%. From 1992 to 1997 it stayed above 12% Well documented.
- Turku’s own numbers. We did not find unemployment figures for Turku itself, so the numbers here are for the whole of Finland Well documented.
- Still growing. Even so, Turku kept growing. It had 159,180 inhabitants in 1990, 164,744 in 1995 and 172,561 in 2000 Well documented.
Into the EU
- The vote. On 16 October 1994 Finland held an advisory referendum on joining the European Union. 56.89% voted yes, and turnout was 70.79% Well documented.
- Turku’s region. Southwest Finland voted almost exactly like the country as a whole, 56.62% yes, but more people voted there: turnout was 75.25% Well documented.
- South and north. The yes vote was strongest in the south, around Helsinki. Most voters in the north and in farming areas said no Well documented.
- Members. Finland joined the EU on 1 January 1995. Åland held its own referendum and joined at the same time (stop 45) Well documented.
A science city
- DataCity. In 1988 building work started on DataCity in Kupittaa, an “IT building” for technology companies. This was the start of Turku Science Park Well documented.
- From knitwear to electronics. In 1989 the old Silo knitwear factory next door, founded in 1928, was turned into high-tech offices called ElectroCity Well documented.
- BioCity. At the end of 1993 BioCity opened, built as an extension of an old spinning mill. The universities’ joint biotechnology centre, today Turku Bioscience, was founded around 1989 Likely.
- A station of its own. Kupittaa railway station was built in 1995. Today the science park has about 210,000 m² of space in eleven buildings, and the city is its largest owner Well documented.
How do we know?
Finland’s economy in the 1990s is well studied, and the EU vote results are official. Our sources give Finland-wide figures, not figures for Turku alone. The dates of the science park buildings come from the history page of the company that owns them. The founding year of the biotechnology centre is worked out from its 30th anniversary in 2019, so we mark it as likely.