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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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From Price-Fixing Cartels to Research Consortia

From Price-Fixing Cartels to Research Consortia

Rapid Restructuring in Finland

(p.55) 3 From Price-Fixing Cartels to Research Consortia
When Small States Make Big Leaps

Darius Ornston

Cornell University Press

In the 1970s, Finland was one of Europe's least innovative countries, but by the end of the 1990s, it was a high-tech leader. This chapter demonstrates how Finland leapfrogged radiotelephone producers such as Denmark to assume leadership in mobile communications. Furthermore, while Finland continues to trail Ireland in the share of high-tech manufactured exports, the historically low- and medium-tech economy now leads in more knowledge-intensive and higher value-added activity, including high-tech patents, research, and high-tech services employment. Rapid restructuring was predicated on new, creative corporatist bargains, most notably in industrial and innovation policy, in which policymakers could convert a tradition of private-public and interfirm cooperation into radically different objectives.

Keywords:   Finland, Finnish economy, innovation, mobile communications, high-tech industry, corporatist bargains, economic policy, industrial policy

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