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Economic policy from an evolutionary perspective: the case of Finland

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  • Ron A. Boschma
  • Markku Sotarauta

Abstract

In the last decade, the Finnish economy has shown an unprecedented recovery, after being hit by a deep crisis in the early 1990s. The paper views and interprets this successful transformation process based on ICT from an evolutionary perspective. Although the rapid pace of the restructuring of the Finnish economy suggests a break with the past, this remarkable recovery was firmly rooted in its economic history. In addition, Finnish public policy played its role in turning Finland into a knowledge economy. Although a master plan for the Finnish economy was lacking, many policies worked out quite well together over an extended period. Building on education, research and technology policy initiatives taken in the 1970s and 1980s, the deep economic crisis in the early 1990s paved the way for new policy directions, with a focus on network-facilitating innovation policies.

Suggested Citation

  • Ron A. Boschma & Markku Sotarauta, 2005. "Economic policy from an evolutionary perspective: the case of Finland," Papers in Evolutionary Economic Geography (PEEG) 0509, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Aug 2005.
  • Handle: RePEc:egu:wpaper:0509
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    File URL: http://econ.geo.uu.nl/peeg/peeg0509.pdf
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    References listed on IDEAS

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    1. Ron A. Boschma & Jan G. Lambooy, 1999. "Evolutionary economics and economic geography," Journal of Evolutionary Economics, Springer, vol. 9(4), pages 411-429.
    2. Lemola, Tarmo, 2002. "Convergence of national science and technology policies: the case of Finland," Research Policy, Elsevier, vol. 31(8-9), pages 1481-1490, December.
    3. Sotarauta, Markku & Srinivas, Smita, 2006. "Co-evolutionary policy processes: Understanding innovative economies and future resilience," MPRA Paper 52689, University Library of Munich, Germany.
    4. Jan G. Lambooy & Ron A. Boschma, 2001. "Evolutionary economics and regional policy," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 35(1), pages 113-131.
    5. Hernesniemi, Hannu & Lammi, Markku & Ylä-Anttila, Pekka & Rouvinen, Petri (ed.), . "Advantage Finland. - The Future of Finnish Industries," ETLA B, The Research Institute of the Finnish Economy, number 113, June.
    6. Ali-Yrkkö, Jyrki & Hermans, Raine, 2002. "Nokia in the Finnish Innovation System," Discussion Papers 811, The Research Institute of the Finnish Economy.
    7. François Moreau, 2004. "The role of the state in evolutionary economics," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 28(6), pages 847-874, November.
    8. Hyytinen, Ari & Pajarinen, Mika (ed.), . "Financial Systems and Firm Performance. Theoretical and Empirical Perspectives," ETLA B, The Research Institute of the Finnish Economy, number 200, June.
    9. Ojainmaa, Kaisa, . "International Competitive Advantage of the Finnish Chemical Forest Industry," ETLA C, The Research Institute of the Finnish Economy, number 66.
    10. Manfred M. Fischer & Javier Revilla Diez & Folke Snickars, 2001. "Metropolitan Innovation Systems," Advances in Spatial Science, Springer, number 978-3-662-04630-2, February.
    11. Ali-Yrkkö, Jyrki & Paija, Laura & Reilly, Catherine & Ylä-Anttila, Pekka, . "NOKIA - A Big Company in a Small Country," ETLA B, The Research Institute of the Finnish Economy, number 162, June.
    12. Ron Boschma, 2004. "Competitiveness of Regions from an Evolutionary Perspective," Regional Studies, Taylor & Francis Journals, vol. 38(9), pages 1001-1014.
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    Cited by:

    1. Bernd Ebersberger, 2011. "Public funding for innovation and the exit of firms," Journal of Evolutionary Economics, Springer, vol. 21(3), pages 519-543, August.
    2. Alexander Ebner & Fabian Bocek, 2015. "Best Practices as to How to Support Investment in Intangible Assets. WWWforEurope Working Paper No. 101," WIFO Studies, WIFO, number 58258.
    3. Tommi Inkinen & Inka Kaakinen, 2016. "Economic Geography of Knowledge-Intensive Technology Clusters: Lessons from the Helsinki Metropolitan Area," Journal of Urban Technology, Taylor & Francis Journals, vol. 23(1), pages 95-114, January.
    4. Markku Sotarauta, 2012. "Policy Learning and the ‘Cluster-Flavoured Innovation Policy’ in Finland," Environment and Planning C, , vol. 30(5), pages 780-795, October.
    5. Matthias Kiese, 2010. "Policy Transfer and Institutional Learning: An Evolutionary Perspective on Regional Cluster Policies in Germany," Chapters, in: Dirk Fornahl & Sebastian Henn & Max-Peter Menzel (ed.), Emerging Clusters, chapter 13, Edward Elgar Publishing.
    6. Saarivirta, Toni & Consoli, Davide, 2007. "Where Did They Go? A Study on Newly Established Universities and Graduate Mobility in Finland," MPRA Paper 11377, University Library of Munich, Germany.
    7. Jorge Niosi, 2010. "Building National and Regional Innovation Systems," Books, Edward Elgar Publishing, number 14006.
    8. Mark Dodgson & Jonathan Staggs, 2012. "Government policy, university strategy and the academic entrepreneur: the case of Queensland's Smart State Institutes," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 36(3), pages 567-585.
    9. Dirk Fornahl & Sebastian Henn & Max-Peter Menzel (ed.), 2010. "Emerging Clusters," Books, Edward Elgar Publishing, number 13533.

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    Keywords

    evolutionary economics; economic geography; innovation policy; Finnish economy; Finnish policy; ICT cluster;
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