Christopher Palmberg

Diversification in response to ICT convergence – indigenous capabilities versus R&D alliances of the Finnish telecom industry

Purpose – While the ICT industry as a whole is undergoing a potentially disruptive phase of development due to the convergence between information and telecom technologies and the rapid diffusion of internet‐related applications. Against this background the purpose of the paper is to analyse recent patterns of internal/indigenous and external diversification of prominent Finnish telecom firms using data on patents and strategic R&D alliances.Design/methodology/approach – The methodology comprises of statistical analyses of patterns of patenting of Finnish telecom firms to capture the internal/indigenous nature of diversification, compared with patterns of external diversification based on a new database of alliances of Finnish firms.Findings – The results indicate that the Finnish telecom industry has diversified its technological base in recent years. The industry appears internally/indigenously weak in internet‐related “new” telecom technologies and related applications. However, telecom firms have also...

Living up to the Expectations Set by ICT? The Case of Biotechnology Commercialisation in Finland

Abstract This paper examines the dynamics and bottlenecks in the commercialisation of biotechnology in Finland by using the Information and Communications Technology (ICT) industry as a benchmark. The paper considers both ICT and biotechnology within the dynamic life-cycle model of technological revolutions by Perez. For an empirical comparison, it applies the concept of a ‘competence bloc’ as an interpretive and focusing device. A competence bloc may be defined as a set of actors, functional competences, and institutions that are necessary for large-scale commercialisation and industrialisation of new emerging technologies. In spite of the many differences between the ICT and biotechnology industries, the comparison serves as a heuristic device for pinpointing important features in the framework conditions of commercialisation in biotechnology. The paper shows that a major bottleneck in the development of the biotechnology industry in Finland is the scarcity of industrialists to transform innovations into large-scale production.

The GSM standard and Nokia as an incubating entrant

Summary The Finnish telecom industry is largely based on the unprecedented success of Nokia. The GSM standard is interesting in this context. It is at present the most widely diffused telecom standard in the world, and largely accounts for the international breakthrough and market leadership of Nokia. Moreover, the GSM was discontinuous to the incumbent equipment suppliers compared to previous standards. This paper identifies the nature and consequences of these discontinuities, and analyses the conditions and processes that contributed to Nokia’s ability to successfully enter the market ahead of incumbents in the industry. We suggest that Nokia was an ‘incubating entrant’ by possessing latent competencies in discontinuous GSM-related technologies, even though it was a new entrant in the field of cellular systems. We also suggest that this largely explains Nokia’s subsequent success, and question some underlying assumptions of the literature on technology competition and industrial dynamics.