NOKIA - A Big Company in a Small Country

Jyrki Ali-Yrkkö, Laura Paija, Catherine Reilly and Pekka Ylä-Anttila

No 162 in ETLA B from The Research Institute of the Finnish Economy

Abstract: Nokia has undergone a major metamorphosis. Emerging as a conglomerate with a number of different business lines, Nokia has been transformed into a pure telecommunications company. At the same time, the company has also internationalised by investing abroad. Despite the heavy internationalisation program, Finland still is an important place for Nokia. A large share of the company’s production and research and development (R&D) is conducted in Finland. Thus, in this study, we analyse how Nokia has affected the Finnish economy. We study the impacts on exports, R&D and GDP. We conclude that Nokia has had a considerable effect on the Finnish economy. Although Nokia is the major player within the Finnish ICT (Information and Communication Technology) cluster, it does not comprise the whole cluster. Numerous new ICT companies have been established during the past few years and other previously established companies have also grown drastically.

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