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  • January 2002 (Revised March 2011)
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Finland and Nokia: Creating the World's Most Competitive Economy

By: Michael E. Porter and Orjan Solvell
  • Format:Print
  • | Language:English
  • | Pages:23
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Abstract

Finland, with a special language and culture, has developed as a country in between the west (the Nordic region and Europe) and the east (especially its neighbor Russia). In the 1980s, a process started of moving out of an investment-driven economy into an innovation-driven one. With the collapse of the Soviet Union around 1990, Finland reached a crisis. This case covers policy changes made in the 1990s and how, by 2002, the country had managed to become one of the most competitive in the world. A large part of the success could be attributed to the dynamic telecommunications cluster--especially Nokia, accounting for some 70% to 80% of the cluster exports and the world leader in mobile phones. Nokia also reached a crisis around 1990.

Keywords

Development Economics; Economic Growth; Growth and Development Strategy; Industry Clusters; Business and Government Relations; Competitive Strategy; Telecommunications Industry; Finland

Citation

Porter, Michael E., and Orjan Solvell. "Finland and Nokia: Creating the World's Most Competitive Economy." Harvard Business School Case 702-427, January 2002. (Revised March 2011.)
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About The Author

Michael E. Porter

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