From Path-Dependency to Knowledge-Based Economy - Analysing the Finnish ICT Miracle -

Essai , 2005 , 26 Pages , Note: 1,7

Politique - Sujet: Globalisation, l'économie politique

The fact that Finland is far away from the centres of European economic activities, for example the so-called blue banana, the Sunbelt and the Industrial axe, its relative economic success, especially in the field of information and communication technologies (ICT) makes it so interesting to analyse what is so characteristic for the “Finish-ICT Miracle”, as Paija (2001) has called it. During the last decade, Finland has become one of the world’s most successful technology-intensive countries, finding itself in the front rank of the world’s digital economies. In a decade, Finland went from being one of the least information and communication technologies specialized countries to become the single most specialized one. “Currently the Finnish ICT sector, with Nokia as its locomotive, consists of some 6 thousand firms and accounts for approximately 10 percent of Finland’s GDP” (Rouvinen & Antilla 2003, p.87) and therefore have put Finland on the map of global economies. Determining for this “raise” of Finland is the development of a new growth path in this small Nordic country. Finland has managed to transform itself from a resource-based into a knowledge-based economy in a rather short period of time, especially without any major cutbacks in his highly developed welfare state system. The essential point of analysis in my essay deals with the question, how Finland managed to become one of the most successful ICT-countries in the world. How was it possible for this small Nordic country to go through a structural change from forestry to ICT? Nowadays, “about 6000 firms (mostly small and medium-sized) and 200 electronics manufacturing services companies make up the so called ‘ICT cluster’. Some 350 of them are first-tier suppliers to Nokia, and represent the ‘Nokia network’” (Daveri & Silva 2002, p.9).

So I will start my analysis by defining structural change to create a basic which is necessary to understand the whole process. With the use of statistical data I will then try to explain Finland’s way from forestry to ICT. A central aspect of the recent Finnish ICT-cluster is the importance of the mobile telecommunication industry with its driving engine, Nokia. This is analysed in part three. And finally of course, my essay ends up with a conclusion, summing up all the relevant information which is necessary to explain how Finland has turned into a knowledge-based economy.

Inhaltsverzeichnis (Table of Contents)

• Introduction
• Defining “structural change”
• The structural development in Finland
• Historical backdrop
• The crisis of the 1990s and the way out
• The development and importance of the ICT-cluster
• From raw materials to mobile communications
• The dominance/importance of the mobile sector
• The central importance of NOKIA
• Conclusion
• Literature
• Introduction

Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)

This essay aims to analyze the transformation of Finland from a resource-based economy to a knowledge-based economy, specifically focusing on the development of the information and communication technology (ICT) sector. This analysis seeks to understand how Finland, a peripheral region in Europe, managed to achieve this structural change and become a leading ICT country.

• The concept of "structural change" and its application to Finland's economic development.
• The historical backdrop and key factors influencing Finland's transition from a forestry-based to a knowledge-based economy.
• The role of the ICT-cluster and the mobile telecommunication industry in Finland's economic growth.
• The significance of Nokia as a driving force within the ICT sector and its impact on Finland's global economic position.
• The importance of inter-firm relationships and knowledge spillovers in fostering innovation and technological advancements.

Zusammenfassung der Kapitel (Chapter Summaries)

• Introduction: This chapter defines the concept of "structural change" as a process of shifting economic activity from one sector to another. It discusses the general phenomenon of structural change across Europe and the need for national economies to adapt to globalization and innovation-driven competition.
• Introduction: This chapter continues to delve into the significance of structural change in Finland's economic development, highlighting the country's transformation from a resource-based economy to a knowledge-based economy. It introduces the concept of path-dependency and its impact on Finland's ability to navigate this structural change.

Schlüsselwörter (Keywords)

This essay primarily focuses on the concepts of structural change, path-dependency, and the development of a knowledge-based economy in the context of Finland's economic transformation. It examines the role of the ICT sector, specifically the mobile telecommunication industry, and the central importance of Nokia in driving Finland's success. Additionally, it explores the impact of inter-firm relationships and knowledge spillovers on innovation and technological advancement.

• Université: University of Münster
• Cours: European Economic Policy Course
• Note: 1,7
• Auteur: Patrick Lubjuhn (Auteur)
• Année de publication: 2005
• Pages: 26
• N° de catalogue: V56912
• ISBN (ebook): 9783638514774
• ISBN (Livre): 9783640667529
• Langue: anglais
• mots-clé: From, Path-Dependency, Knowledge-Based, Economy, Analysing, Finnish, Miracle, European, Economic, Policy, Course