Secrets behind the Finnish miracle: the rise of Nokia

Abstract

By the laws of natural advantage, Finland should be a natural resource producer. In fact, Nokia, now known as a leading manufacturer in cell phones, started out as a wood pulp company. A combination of historical and geographic conditions helped to set the stage for the transformation of this once isolated economy. However, policy interventions were essential. These interventions evolved over time. Even more important was taking advantage of the windows of opportunity afforded by the deregulation of telecommunications markets in the largest economies. The openness to adjustment and learning through mistakes speaks to a strong national determination. The coordination of state-private sector efforts towards national goals is unmistakeable and deliberate in the case of Nokia.