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Nordic small countries in the global high-tech value chains: the case of telecommunications systems production in Estonia

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  • Marek Tiits
  • Tarmo Kalvet

Abstract

In this paper we focus on the electronics industry, and more specifically on the production of telecommunications systems, which is characterised both by very rapid growth of the global trade and very high ratio of R&D investments in the sales revenues (Moncada-Paternoo-Castello et al 2010). More specifically, we analyse the distinctly different development paths of the three major telecommunications systems producers in the Nordic countries: Ericsson, Elcoteq and Skype. Ericsson was established in 1876, and has been a well-known brand name for decades. By contrast, Elcoteq grew from a small company into a global multinational corporation in less than a decade only in the 1990s. As a global company, Skype is still less than ten years old, but it facilitates today more international calls than any other telecommunications operator on the planet.

Suggested Citation

  • Marek Tiits & Tarmo Kalvet, 2012. "Nordic small countries in the global high-tech value chains: the case of telecommunications systems production in Estonia," The Other Canon Foundation and Tallinn University of Technology Working Papers in Technology Governance and Economic Dynamics 38, TUT Ragnar Nurkse School of Innovation and Governance.
  • Handle: RePEc:tth:wpaper:38
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    1. repec:rnp:ecopol:ep1763 is not listed on IDEAS
    2. repec:taf:ceasxx:v:65:y:2013:i:3:p:426-449 is not listed on IDEAS
    3. Marek Tiits & Tarmo Kalvet & Imre Mürk, 2015. "Smart Specialisation in Cohesion Economies," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 6(2), pages 296-319, June.

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