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The aim of UPM’s business development and R&D programmes is to create new products and businesses by developing technology, and to provide support for its business areas to ensure the competitiveness of its current products. Over the past years, UPM has invested in the research and development of the new value-added uses of forest biomass, such as biofuels, biochemicals, biocomposites and fibril cellulose. UPM spends approximately EUR 45 million per year on R&D projects.
 
UPM's around 300 R&D professionals work in five research centers. The company has its own research centre in Lappeenranta, Finland. The UPM Biorefinery Development Centre is also situated there. The WISA R&D Centre for plywood and composites is located in Lahti, while labelstock R&D takes place in Tampere, Finland. UPM's recycled fibre research is in Augsburg, Germany. UPM Asia R&D Centre in China is responsible for local fibre raw material research.
 
In addition to these, UPM has continuous co-operation with several research institutions and universities worldwide. UPM is a partner with a 15 per cent share in Forestcluster Ltd, established to network top-level research and innovation in the Finnish forest cluster.

UPM will strengthen its research on eucalyptus fibre and build a competence centre at the Fray Bentos pulp mill in Uruguay. The new centre including expansion of the existing laboratory facilities will be operational during the first half of 2012.