Transcript The Success Story

Start
The Success
Story
The Agenda
• The Origins
• The Beginnings
– The Factors and Conditions
– The Demand Conditions
– The Related and Supporting Industries
– The Strategy, Structure, and Rivalry
• The Future
Finland
The Origins
Finland from the Ashes
• Reeling from siding with Nazi
German in WWII
• Forced dependence on
Soviet Russia
– Trade for Barter
– Eastward Balance of Trade
• Economy buoyed almost
solely on forestry and low tech
industry
The Beginnings
Strategic
Structure
Factors &
Conditions
Finland
Related &
Support
Industries
The Diamond
Model
Demand
Conditions
Human
Infrastructure
•Education--- Finnish government
expands the capacity of higher
education
• High Public spending on education
relative to GDP
• Increasing the intake of students in
University and Polytechnics
• Expanding the education in
information and communication field
Investment
Structure
Capital--- Venture capitalists
emerged during the 1990s
• Successful business plans at
the turn of the 21st century
attracted increasing amounts of
venture capital
• In 2001, 30% of all venture
capital in Finland was directed
toward telecommunications
Strategic
Structure
Factors &
Conditions
Finland
Related &
Support
Industries
The Diamond
Model
Demand
Conditions
Finnish Market Attributes
• Low Population Density
• Long Distance among each city
• Long and Severe Winter
• One of the first adopter of Bell’s telephone
system
• Strong demand for convenience communication
tools
• Nokia Implication - New group in it's parent
company allowed them to concentrate on the
production of radio transmission equipment
Strategic
Structure
Factors &
Conditions
Finland
Related &
Support
Industries
The Diamond
Model
Demand
Conditions
The Telecomm
Parent
• PTT (Pelleron
Taloudellinen
Tutkimuslaitos)
– National Telecomm Operator
– Fostering the development of
the Finnish Telecomm Industry
The Growth Tank
• Incubators
– Growth areas for
development, invested with
an entrepreneurial culture
Center of Excellent Program
• Establishment of
Educational Institutions
• Promotion of R&D
• Creation of Ancillary
Industries
• Regional motivation for
expertise creation