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Technological systems and competent procurers--the transformation of Nokia and the Finnish telecom industry revisited?

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  • Palmberg, Christopher

Abstract

The contribution of Nokia to the recent rapid growth of the Finnish telecom industry is significant. A conventional explanation of Nokia's success, and the growth of the telecom industry, relies on aggregate studies in the Porterian framework that misses the dynamics of the underlying interactions between technologies, institutions, and organizations. The key proposition advanced in this article is that the role of the public telecom operator (PTO), as a competent technology procurer, has played a hitherto neglected, key role in this success and growth prior to the mid-1980s, after which Nokia achieved its international breakthrough. This proposition is advanced through the application of the Schumpeterian-Dahménian tradition of technological systems and 'competence blocs' to case studies in the development of Nokia's switching platform technology and equipment for the NMT-standard, the crucial competence areas underlying Nokia's success.

Suggested Citation

  • Palmberg, Christopher, 0. "Technological systems and competent procurers--the transformation of Nokia and the Finnish telecom industry revisited?," Telecommunications Policy, Elsevier, vol. 26(3-4), pages 129-148, April.
    • Handle: RePEc:eee:telpol:v:26:y::i:3-4:p:129-148
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    Cited by:

    1. Viktor Slavtchev & Simon Wiederhold, 2016. "Does the Technological Content of Government Demand Matter for Private R&D? Evidence from US States," American Economic Journal: Macroeconomics, American Economic Association, vol. 8(2), pages 45-84, April.
    2. Ville Valovirta, 2015. "Building capability for public procurement of innovation," Chapters, in: Charles Edquist & Nicholas S Vonortas & Jon M Zabala-Iturriagagoitia & Jakob Edler (ed.), Public Procurement for Innovation, chapter 3, pages 65-86, Edward Elgar Publishing.
    3. Palmberg, Christopher & Martikainen, Olli, 2003. "Overcoming a Technological Discontinuity - The Case of the Finnish Telecom Industry and the GSM," Discussion Papers 855, The Research Institute of the Finnish Economy.
    4. Simon Wiederhold, 2012. "The Role of Public Procurement in Innovation: Theory and Empirical Evidence," ifo Beiträge zur Wirtschaftsforschung, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, number 43.
    5. Jackie Krafft, 2003. "Vertical structure of the industry and competition: an analysis of the info-communications industry," Post-Print hal-00203652, HAL.

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