When the High Road Becomes the Low Road: The Limits of High‐Technology Competition inFinland

Abstract

Globalization has generated increasing interest in technology‐intensive industries as a way to sustain national economic competitiveness. High‐technology growth is often conceptualized as a “high road” to prosperity, more amenable to private–public, industry–labor, and interfirm cooperation than tax, regulatory, or cost competitive strategies. While specialization in technology‐intensive industries does deliver several benefits, this article uses Finland's successful transformation into a high‐technology economy to highlight the significant economic and political risks associated with this strategy. Economically, movement into electronics exposed Finland to cost competition and disruptive technological innovations. Politically, high‐technology competition weakened the solidaristic ties that characterized postwar capitalism and the coordinating capacities that underpinned economic growth. In short, high‐technology growth exacerbated the problems it was supposed to solve. The article concludes by generalizing the argument to several non‐Nordic states.

The Role of Institutions and Capital in Intersectoral Collaboration: Infection and Immunity Research and Development Collaboration in Vancouver

“…Collaboration—particularly between sectors—is seen as essential for creating vibrant systems that encourage innovation (Cooke, Uranga, & Etxebarria, ; Edquist, ; Etzkowitz & Leydesdorff, ; Malerba, ). While intersectoral collaboration is perceived as a key component in innovation, it is also relatively rare in Vancouver (Lander, ) while its rates have been declining in other regions such as Finland (Ornston, ). It remains rare despite numerous policy initiatives focused on encouraging intersectoral collaboration.…”

Science, technology and innovation systems of small economies under pressure – sketching three possible future pathways of the Finnish system

“…Smallness may also mean vulnerability if the number of prominent firms involved in foreign trade is limited (Ornston, 2014;Roolaht, 2012). On the other hand, policy making requires, except adapting to external conditions, also balancing of various interests and active construction of new opportunities (cf.…”

Untitled

“…Otro concepto utilizado para explicar los distintos tipos de competencia es la distinción entre lo que se ha denominado un camino "alto" (o "noble") y un "camino bajo" (o "menos noble") de competencia entre empresas (Schmitz, 1995, p. 541;Loveman & Sengenberger, 1991, p. 27;Ornston, 2014). El "camino noble" se refiere a procesos de competencia que se dan a través de mejoras en la calidad, innovación de productos, disminución en tiempo de respuesta y demás dimensiones que no involucran lo que sería la competencia "menos noble" que, en cambio, implica la disminución de precios, flexibilización laboral, empleo barato y la utilización de materiales de menor calidad (Schmitz, 1995, p. 541).…”