Economic policy from an evolutionary perspective: the case of Finland

In the last decade, the Finnish economy has shown an unprecedented recovery, after being hit by a deep crisis in the early 1990s. The paper views and interprets this successful transformation process based on ICT from an evolutionary perspective. Although the rapid pace of the restructuring of the Finnish economy suggests a break with the past, this remarkable recovery was firmly rooted in its economic history. In addition, Finnish public policy played its role in turning Finland into a knowledge economy. Although a master plan for the Finnish economy was lacking, many policies worked out quite well together over an extended period. Building on education, research and technology policy initiatives taken in the 1970s and 1980s, the deep economic crisis in the early 1990s paved the way for new policy directions, with a focus on network-facilitating innovation policies.evolutionary economics, economic geography, innovation policy, Finnish economy, Finnish policy, ICT cluster

New venture internationalisation and the cluster life cycle: insights from Ireland’s indigenous software industry

The internationalization of new and small firms has been a long-standing concern of researchers in international business (Coviello and McAuley, 1999; Ruzzier et al., 2006). This topic has been re-invigorated over the last decade by the burgeoning literature on so-called ‘born globals’ (BG) or ‘international new ventures’ (INV) – businesses that confound the expectations of traditional theory by being active internationally at, or soon after, inception (Aspelund et al., 2007; Bell, 1995; Rialp et al., 2005). Until quite recently, this literature had not really considered how the home regional environment of a new venture might influence its internationalization behaviour. However, a handful of recent studies have shown that being founded in a geographic industry ‘cluster’ can positively influence the likelihood of a new venture internationalizing (e.g., Fernhaber et al., 2008; Libaers and Meyer, 2011). This chapter seeks to build on these recent contributions by further probing the relationship between clusters and new venture internationalization. Specifically, taking inspiration from recent work in the thematic research stream on clusters (which spans the fields of economic geography, regional studies and industrial dynamics), the chapter explores how the emergence and internationalization of new ventures might be affected by the ‘cluster life cycle’ context within which they are founded. This issue is examined through a revelatory longitudinal case study of Ireland’s indigenous software cluster. The study investigates the origins and internationalization behaviour of ‘leading’ Irish software ventures but, in contrast to many existing studies, it seeks to understand these firms within the context of the Irish software cluster’s emergence and evolution through a number of ‘life-cycle’ stages

Cross-border knowledge transfer and innovation in the European neighbourhood: Tourism cooperation at the Finnish-Russian border

Knowledge transfer and innovation cooperation between the EU and its neighbours has remained weakly developed. To promote this cooperation, the EU has set up initiatives for the European neighbourhood. The issue has, however, received very limited scholarly attention in the field of tourism. This research gap is addressed here via interview data collected from participants in tourism related EU-funded projects in the Finnish-Russian cross-border region. These underline the importance of EU-funding in facilitating knowledge transfer and innovation between Finland and Russia. While language issues, and differences in business culture and administrative/legislative systems between the two countries, constitute barriers for practical cross-border cooperation, it is cross-border differences in culture and technological capabilities that drive cross-border knowledge transfer and innovation in the cross-border region. The paper concludes with policy recommendations for promoting future cross-border cooperation in innovation and tourism

Nice Mobile Services do not Fly. Observations of Mobile Services and the Finnish Consumers

When the short message service (SMS), was first initiated in 1992 nobody could foresee its tremendous popularity. Simple in design, easy to adapt and effortless to employ it rapidly became a profitable, matchless, globally used mobile service – referred to as a “killer application”. Ever since the quest for the next mobile service “killer application” has continued. Year after year the mobile service market(s) produce(s) new services and applications that due to complexity or lack of relevance fail to meet the consumers’ expectations. In this paper we will discuss three mobile services that commonly have been described as promising and innovative: mobile games, mobile television and snapshots with mobile phones, in an attempt to understand their potential for becoming successful services. We will study the Finnish mobile services market from two different viewpoints: on the one hand what Finnish experts and professionals on mobile commerce think the consumers want, and on the other hand, what the consumers actually use and will use in the future. In his way we will show some identifiable reasons for the discrepancies between mobile services offered and mobile services actually used. The analysis is based on our 2004-5 consumer surveys of mobile services com

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Empirical Findings on the Mobile Internet and E-Commerce

This paper discusses the evolution of mobile services and associated potential for mobile e-commerce. In particular, the current operator-driven business ecosystems are contrasted to the potential mobile Internet revolution. Critical factors and characteristics of cellular and Internet business ecosystems are identified. Potential for radical changes in mobile services business exists if inducing trends drive the disruptive potential of mobile Internet services. The paper identifies several measures that can be used when projecting to which extent the mobile Internet has emerged. These measures are used in a case example comparing Finnish early-adopter smartphone users between 2005 and 2006. The results indicate that the mobile Internet has not really kicked off in large scale in Finland yet. On the contrary operators have slightly increased their power because handset bundling with mobile subscriptions is now allowed in Finland. The measurement framework can be further utilized both in cross-sectional and longitudinal study settings in evaluating the emergence of the mobile Internet. Accurate studies on mobile e-commerce can also be done. The emergence of the mobile Internet provides a lot of potential for mobile e-commerce to fly

Love and Hate Relationships in a Platform Ecosystem: A case of Finnish Electronic Identity Management

There has been a substantial interest among scholars in digital platforms and their governance. This paper proposes a different perspective on the phenomenon, by providing observations on non-focal firms’ dependencies to external platforms. Using the case study results of Finnish firms’ utilization of a monopolistic BankID authentication platform, we describe the platform ecosystem and its transformation on organizational and technology aspects. We show how legislation can transform the roles and relations between ecosystem participants and lead to the long-time dominant legacy platform weakening. Our study extends existing research on platforms and contributes new knowledge about the enforced adoption of the platform by heterogeneous organizations. These findings have important managerial implications, as they inform how non-focal firms can understand the use of existing and coming digital platforms