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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 Crisis of Low-Tech Production in Denmark, Finland, and Ireland

The Crisis of Low-Tech Production in Denmark, Finland, and Ireland

(p.28) 2 The Crisis of Low-Tech Production in Denmark, Finland, and Ireland
When Small States Make Big Leaps

Darius Ornston

Cornell University Press

This chapter provides a foundation for the rest of the book by demonstrating how conservative corporatism (and liberalism in Ireland) inhibited high-tech competition. It also identifies the nineteenth-century legacies that support and constrain contemporary institutional innovation. In Finland, stakeholders adapted a tradition of private-public and interfirm cooperation to increase expenditure on R&D. Denmark pursued a different creative corporatist strategy, leveraging industry-labor cooperation to invest in skill formation. Ireland, which lacked a strong tradition of private-public, interfirm, or industry-labor cooperation relied heavily on “competitive” market-based reforms, including fiscal retrenchment and tax concessions. Before chronicling twenty-first-century innovation, however, the institutions that shaped twentieth-century economic adjustment and their nineteenth-century origins must be characterized.

Keywords:   Denmark, Finland, Ireland, conservative corporatism, liberalism, high-tech competition, interfirm cooperation

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