Helsinki's unique business ecosystems
The public and private sectors in Finland are working together to create unique systems of cooperative businesses. These clusters in specific industries allow a great deal of synergy and productivity that would not be possible working alone.
It is not enough to simply have a good business idea. A good idea is simply that: an idea. To turn the idea into fruition is another matter entirely. One needs to have the labour force, the suppliers, the distribution network, the venture capital, a network in the industry and even encouragement from officials.
Each company has unique needs. One may need venture capital. Another may need business know-how. Yet another may require a dependable network of suppliers. To meet this demand Finland has encouraged the development of business ecosystems. Industries, sectors, clusters and microclusters of companies are arranged in networks to help companies meet their needs.
The source of business success has moved from tangible products to also technology and knowledge. This has helped the creation of a number of business clusters in Helsinki. The information technology, life sciences, logistics and environmental industries are some of the best developed.
The information technology cluster is one of Finland's greatest successes. There are over 600 software companies in Helsinki alone. For the future, great hopes are being placed in the environmental industry. A number of domestic and foreign companies are focusing on biofuels. To meet the demands for environmentally cleaner fuels a number of firms are basing themselves in Finland. This is expected to grow dramatically in the future.
The telecommunications ecosystem
One of the great success stories in Finland is the telecommunication industry. This industry coalesced around Nokia. Forty years ago Nokia was just beginning to experiment in the electronics industry and now is the world's most successful manufacturer of mobile phones. It did not succeed on its own, however. The entire industry grew and prospered with it.
The telecommunication ecosystem developed around Nokia in three forms. One was the traditional cooperation between Nokia and suppliers. These subcontractors mushroomed up to provide parts or components, or even whole processes to Nokia. The second form involves cooperation in the creation of new markets for wireless technology. The third was the use of products and technology in the marketplace.
Partnerships and cooperation with Nokia include the integration of internet and digital television, the Symbian operating system, Bluetooth, other wireless systems, secure payment solutions and a variety of standardisations for technology in the industry.
"Nokia took a new approach in building alliances and partnerships.", wrote Martti Häikiö in Nokia - The Inside Story. "The aim in its core business, mobile phones and networks, was to rationalize and increase efficiency. Its resources were focussed on areas and operations that would add most value. Already a world leader, Nokia aimed to continue being a pioneer and to make the markets."
Today this industry continues to thrive. In an area in which technology changes so quickly and growth is so rapid, close cooperation in the industry is a necessity. Many companies find a specific niche to fill in the telecommunications sector. Alone this niche would not be able to survive, but taken as part of a coherent whole this area may be an invaluable piece of the industry.