From Path-Dependency to Knowledge-Based Economy - Analysing the Finnish ICT Miracle -


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Table of contents

Secondly, due to poorly designed financial deregulation, to thirdly, mistakes in reactions taken against the depression itself. The Finnish forest industry with its minimal productivity would simply be unable to manage to reduce high unemployment figures significantly enough, and macro-level economic policies targeted at the devaluation of currency would no longer be an option. Finland had to find a new growth path, continuing with its old one simply was no longer an option. Acknowledging this, Finland began to place greater emphasis on its long-term microeconomic polices in contrast to short-term macroeconomic ones that were no longer deemed to be sufficient.

After all, it is understood that the competitive edge of an economy rests at the micro level: in national firms and financial institutions, innovation and policy organizations, and educational institutions. Politik - Sonstige Themen. BWL - Wirtschaftspolitik. VWL - Geldtheorie, Geldpolitik. Politik - Internationale Politik - Thema: Globalisierung, pol.

Politik - Internationale Politik - Region: Osteuropa. Politik - Internationale Politik - Region: Westeuropa. Registrieren oder einloggen. Optional: Anmelde-Code. Verbinden mit Facebook.

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Fordern Sie ein neues Passwort per Email an. Arbeiten hochladen. Im eBook lesen. In den Warenkorb. Table of contents 1. Introduction 2. From boom to bust: depression and the emergence of a new path 3. Significance of clusters 5. Conclusion 8.

Rethinking Regional Innovation and Change

Bibliography 9. From boom to bust: depression and the emergence of a new path By the s, Finland enjoyed one of the highest living standards in the world. Nepal's Economic Landscape: Recommendations for a sustainable E Submit Search. Successfully reported this slideshow. We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime. Strategic ambiguity in Finnish policy on ICT in education. Upcoming SlideShare.

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Tryggvi Thayer , Programme Mgr Follow. Full Name Comment goes here. Are you sure you want to Yes No. Abebaw Geta at Student good. Be the first to like this. No Downloads. For this I use an influential and representative study by Oliner and Sichel Walking through its procedures and architecture allows us to see the machinery of scientific knowledge production in operation, and to understand the theoretical and practical assumptions that produce the outcomes. This reconstruction of a scientific knowledge creation machine is followed by a discussion that evaluates the robustness of the reported empirical results both from conceptual and empirical points of view.

In particular, I will show that the main results of neoclassical growth accounting studies critically depend on the way ICT price indices are handled in these studies. In a sense, we try to see whether the neoclassical productivity research machine works and whether it produces what we think it should produce.

The answer is to some extent negative, as productivity researchers know. This opens a question whether the problematic issues require just minor improvements in theory and practice, or whether they indicate a need for more profound revision of theory and research on ICT productivity impacts.

I will explore this question by focusing on the famous Solow productivity paradox, reviewing known explanations for it. Based on the earlier sections, I will then draw up a list of open and potentially important research challenges. The overall result of this discussion is that there are conceptual and empirical problems in the current approaches to productivity research. Some of these appear to be quite fundamental, pointing to a need for alternative approaches for understanding ICT and productivity.

The paper ends by summarizing the main results and by making concluding remarks. If productivity increases, other things equal, aggregate economic welfare increases. As Paul Krugman once put it, productivity is not everything, but it is almost everything. Productivity measurement has also become important for monetary and fiscal policy. Productivity trends are used to forecast potential economic growth and, for example, tax revenues. If labor income grows faster than labor productivity, the expected result is inflation.

Productivity measurement, therefore, is used in the difficult act of balancing unemployment and inflation. By analyzing productivity developments in different firms, industries, and across regions and countries, we can try to find productivity bottlenecks and locate opportunities for improvement. International comparisons of productivity trends, in turn, have often been used as sources of policy recommendations. Recently, for example, productivity researchers have argued that the institutional flexibility in the European countries should be increased if they want to catch up with the U.

In the Knowledge Society an important question is how information and communication technologies ICTs impact growth and productivity.

Knowledge Based Economy

The more recent discussions on the "new economy" centered on the question whether information and communication technologies have irreversibly changed the productivity growth rate of the economy. If that were the case, accelerated investments in ICT could lead to increase in economic growth and productivity. This could imply a new balance between inflation and labor income growth.

For example, Jorgenson and Stiroh argued in their influential article "Raising the speed limit" that ICT had, indeed, altered the speed of productivity growth. On the other hand, Jorgenson and others also emphasized that the ICT productivity story has been closely connected to the advances in information technology, and in particular semiconductors [ 5 ]. If technical advances in these areas slow down, productivity growth will slow down, and perhaps turn negative.

In particular, Jorgenson [ 6 ] argued that the rapid productivity increase in the U. If we want to understand the future of productivity, we therefore need to understand the drivers of innovation in ICT production [ 8 ]. A closer study on the developments in semiconductor, computing and communication technologies shows, however, that developments have also to large extent been driven by innovative users of these technologies.

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From Path-Dependency to Knowledge-Based Economy - Analysing the Finnish ICT Miracle -

The productivity potential associated with ICT is not created only by technical advances, per se. Instead, productivity opportunities become articulated and realized when technologies are taken into use. This means that economically important innovations are not simply technical advances. They are always social innovations. To understand the productivity potential of ICT, we therefore also have to understand social learning processes that underlie the adoption of new technologies.

In the Knowledge Society, economists are now starting to ask how learning, competencies, social and economic networks, and, for example, social capital, trust and reputation should fit the picture. Although the picture is not yet clear, it is becoming important to ask what we currently know about the productivity impacts of ICT. Macroeconomic studies on the effects of information and communication technologies have received considerable attention during the recent decade. This observation has become known as the productivity paradox.

Despite a general belief on ongoing information technology revolution, since the early s productivity growth appeared to be slowing down in the U.

From Path-Dependency to Knowledge-Based Economy - Analysing the Finnish ICT Miracle - From Path-Dependency to Knowledge-Based Economy - Analysing the Finnish ICT Miracle -
From Path-Dependency to Knowledge-Based Economy - Analysing the Finnish ICT Miracle - From Path-Dependency to Knowledge-Based Economy - Analysing the Finnish ICT Miracle -
From Path-Dependency to Knowledge-Based Economy - Analysing the Finnish ICT Miracle - From Path-Dependency to Knowledge-Based Economy - Analysing the Finnish ICT Miracle -
From Path-Dependency to Knowledge-Based Economy - Analysing the Finnish ICT Miracle - From Path-Dependency to Knowledge-Based Economy - Analysing the Finnish ICT Miracle -
From Path-Dependency to Knowledge-Based Economy - Analysing the Finnish ICT Miracle - From Path-Dependency to Knowledge-Based Economy - Analysing the Finnish ICT Miracle -
From Path-Dependency to Knowledge-Based Economy - Analysing the Finnish ICT Miracle - From Path-Dependency to Knowledge-Based Economy - Analysing the Finnish ICT Miracle -

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