Otto Toivanen is a professor of Economics at Aalto University School of Business. He served as the first academic director of the Helsinki Graduate School of Economics (Helsinki GSE) from 2018 to 2025.
Toivanen holds a PhD in economics from the University of Warwick.
His research focuses particularly on innovation policy, inventors and the effects of invention at the individual level, the regulation of companies and markets (e.g., R&D subsidies), and competition in its various forms, particularly cartels and collusion between companies.
Otto Toivanen first joined the Helsinki School of Economics in 1997. He moved to Finland from England and worked as a postdoctoral researcher in economics, senior assistant professor, fixed-term professor, and professor of technology management and policy. He left his professorship to head the Helsinki Center of Economic Research (HECER) at the University of Helsinki in 2004.
‘In 2004, all economists from the School of Economics, Hanken and the University of Helsinki moved to Economicum on Arkadiankatu, where everyone except Aalto economics faculty still have their offices. Aalto still has space there and we visit there often,’ says Otto Toivanen.
‘In 2010, I left to become a professor at KU Leuven University in Belgium, until my current colleagues persuaded me to return to Finland in 2015. After a couple of years as a visiting professor, I was appointed professor in 2017.’
Otto Toivanen was the first MIT postdoctoral fellow of the Yrjö Jahnsson Foundation in 1998–99. It was a significant year for him. ‘Even before that, I thought I knew what research was all about, but that year really opened my eyes in a whole new way.’
‘The best part of my job are the moments of discovery – when you find an interesting problem and perhaps even a way to solve it. That's why we do this work! Fortunately, these moments of research have come at a steady pace along the way.’
Another personally important milestone for Otto Toivanen was the establishment of Helsinki GSE (Helsinki Graduate School of Economics) in 2018. ‘At that point, we were able to start implementing the plans that we had already made in the early 2000s.’
Toivanen says that Helsinki GSE has had a good start. ‘The original goals have largely been achieved, although of course the work is never finished. When GSE was founded, there were about 20 economics professors in these three schools. Now there are nearly 40 of us. At the beginning of the millennium, almost all economists working in Finland were Finnish, but now there are more than a dozen different nationalities. Student numbers have grown rapidly – the bachelor intake is nearly 200 students, the master’s intake around 150 students, and around 20 doctoral students start with us every year – and we have achieved many things that are good for society.’
The Helsinki GSE Situation Room, established during the covid pandemic, has continued its operations as the VATT Data Room. During the pandemic, the Situation Room produced information and analysis for ministries and other public bodies to support economic policy decision-making. ‘There was a good understanding that analysis based on good data helps in public sector decision-making. Since then, a municipal data room has also been established, and an education data room is being set up.’
Since August 1, 2025, Professor Marko Terviö has served as the academic director of Helsinki GSE. ‘I have always believed that it is good to have turnover in leadership positions. I had been in the position for over seven years, and since this was the first time we were changing directors, we had to create a process for it and find a new director. Fortunately, Marko has now taken the position into his expert hands.’
Otto Toivanen is also pleased with how well the online course How Does the Economy Work? (MOOC) has been received. This free online course on the basics of economics, which is open to everyone, was launched in 2021 and is aimed specifically at secondary school students. The online course can be taken as an elective course in some high schools, and in some high schools, teachers use parts of the course in their lessons. A new MOOC course on the basics of economics is currently being developed, targeting universities of applied sciences.
‘I am on sabbatical for the academic year that is now beginning, and I will have more time for research now that my administrative duties are behind me. Artificial intelligence is becoming increasingly prevalent in teaching, which keeps me busy in many ways. We also have plans to develop our popular English-language bachelor's program in economics.’ During his sabbatical, Otto Toivanen intends to continue his research on the pharmaceutical and healthcare markets, inventors, and cartels.
Finally, Otto encourages young people to think about what kind of work they want to do. ‘Work takes up a significant part of our waking hours, so I encourage everyone to find work that interests them. If you are interested in a career as a researcher, you need to be passionate about research. I also enjoy working at our Department of Economics, where we have a supportive and pleasant atmosphere. I hope everyone else can enjoy a similar working atmosphere.
– The title of Aalto Distinguished Professor is granted to a professor whose merits are exceptionally significant. –
Text: Terhi Ollikainen
Economics is much more than just euros and the maximisation of profit. The Helsinki Graduate School of Economics provides the expertise needed for everything from public procurement bidding to parental leave arrangements.
