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When Small States Make Big LeapsInstitutional Innovation and High-Tech Competition in Western Europe$
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Darius Ornston

Print publication date: 2012

Print ISBN-13: 9780801450921

Published to Cornell Scholarship Online: August 2016

DOI: 10.7591/cornell/9780801450921.001.0001

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The Paradox of High-Tech Corporatism

The Paradox of High-Tech Corporatism

Chapter:
(p.7) 1 The Paradox of High-Tech Corporatism
Source:
When Small States Make Big Leaps
Author(s):

Darius Ornston

Publisher:
Cornell University Press
DOI:10.7591/cornell/9780801450921.003.0002

Many western European economies traditionally relied on institutionalized cooperation among state actors and encompassing producer associations (industry and labor) to manage economic adjustment. This “neo-corporatist” approach to governance differs from the decentralized competition among individual firms and employees that prevails in liberal market economies such as the United States, Britain, and Australia, and the hierarchical command-and-control structure that characterizes statist economies such as France. Neo-corporatist economies are instead characterized by voluntary cooperation rather than hierarchical state control, as policymakers actively consult and share responsibility with societal actors. This chapter examines how neo-corporate countries such as Ireland, Finland, and Denmark were able to compete in high-tech markets, where they should be most disadvantaged. Ireland redefined itself as Europe's leading computer exporter, Finland emerged to dominate mobile telephony, and Denmark has quietly entered a diverse array of industries from biotechnology to software.

Keywords:   neo-corporatism, Ireland, Finland, Denmark, neo-corporate economies, high-tech industries

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